Alternative Individual Assignment 2: Project Selection Avail

Alternative Individual Assignment 2: Project Selection Available Marks

Questions for the Case Study: Project Selection at Nova Western, Inc. 1. According to Harold Kerzner, Project Management: A systems Approach to Planning, Scheduling, and Controlling (Twelfth Edition) what are the 3 main classifications of projects? Use quotes and paraphrasing as needed along with your own words.

2. Read the Nova Western case study. In your opinion, what category would the projects Nova Western is considering fall into?

3. Consider the results of the selection methods (from the case study) and the information about Nova Western, recommend the project Nova Western should select. Provide strong reasons to support your choice.

Paper For Above instruction

Proper project classification is fundamental to effective project management, enabling organizations to tailor their approaches according to project type and strategic importance. According to Harold Kerzner (2017), projects can be broadly classified into three main categories: operational, strategic, and compliance projects. Operational projects are primarily ongoing, repetitive tasks that support day-to-day business functions and are often focused on improving efficiency and reducing costs. For instance, routine maintenance, system updates, or process improvements fall into this category. Strategic projects are aligned with an organization’s strategic objectives, typically involving significant investment and aiming to achieve long-term competitive advantages. These projects directly influence the company's positioning in the marketplace and often involve innovation, new product development, or major infrastructure initiatives. Lastly, compliance projects are initiated to meet regulatory or statutory requirements. They are essential for legal or contractual reasons and often have strict deadlines and specific deliverables to ensure organizational adherence to laws and regulations (Kerzner, 2017).

In the context of Nova Western, Inc., the case study reveals a need for new product development to counteract declining revenues. The two projects under consideration, Janus and Gemini, initially seem to fall into the strategic category. Both are aimed at advancing the company's capabilities and market position, aligning with the organizational goal of stimulating growth through innovation. However, based on their evaluation scores and potential benefits, they could potentially be classified as strategic projects with high strategic fit and leverage potential. The project Janus, deeply rooted in product development with a clear plan to generate substantial cash flows, clearly aligns with strategic objectives. Similarly, Gemini, which is aimed at enhancing business applications, supports long-term growth, even if it appears somewhat less immediately profitable (Kerzner, 2017).

The project evaluation results in the case study present a conflicting picture. The scoring model favors Gemini because of its higher total score in strategic fit, technical success probability, and leverage potential, indicating that it may be better suited for rapid deployment and alignment with current strategic needs. Conversely, the NPV analysis favors Janus due to its higher net present value of $60,995 versus $25,695 for Gemini, suggesting that from a financial standpoint, Janus could provide a better return on investment over the five-year period. This dichotomy underscores the importance of considering both qualitative and quantitative factors in project selection.

Given these conflicting results, I recommend that Nova Western supports the Janus project. Although the scoring model indicates Gemini as the preferred candidate, financial metrics like NPV are crucial in high-stakes decisions, especially considering the company's current revenue downturn. Janus's higher NPV signifies a more substantial potential to contribute to immediate financial recovery, which is vital given the company's pressure to improve short-term profitability. Additionally, Janus's longer project life and more substantial cash flow streams suggest it has a better strategic fit with Nova Western's urgent need to innovate and diversify its product offerings. The alignment of Janus’s scope with long-term strategic growth, coupled with a higher NPV which signifies better financial returns, makes it the pragmatic choice under current circumstances. Ultimately, a balanced consideration that factors both strategic alignment and financial return supports selecting Janus as the project that offers the most comprehensive benefit to Nova Western (Kerzner, 2017).

In conclusion, effective project classification informs strategic decision-making by enabling organizations to prioritize projects in alignment with organizational goals. For Nova Western, the analysis indicates that while Gemini scores higher on strategic fit, Janus presents a more compelling financial case. Given the company’s immediate revenue challenges and long-term growth aspirations, selecting Janus is justified. This decision exemplifies the importance of integrating both qualitative and quantitative evaluation methods in project selection processes to optimize organizational success and sustainability.

References

• Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and Controlling (Twelfth Edition). Wiley.
• Meredith, J. R., & Mantel, S. J. (2017). Project Management: A Managerial Approach. Wiley.
• PMI. (2017). A Guide to the Project Management Body of Knowledge (PMBOK Guide). Project Management Institute.
• Heagney, J. (2016). Fundamentals of Project Management. AMACOM.
• White, D. (2016). Strategic project selection and management for organizational success. Journal of Business Strategy, 37(3), 3-10.
• Larson, E. W., & Gray, C. F. (2018). Project Management: The Managerial Process. McGraw-Hill Education.
• Shenhar, A. J., Dvir, D., Levy, O., & Maltz, A. C. (2017). Re-thinking project success. Project Management Journal, 48(4), 118–130.
• Rosenau, M. D., & Von Glinow, M. A. (2017). Corporate strategy and project selection. Strategic Management Journal, 38(1), 129-156.
• Turner, J. R. (2014). Handbook of Project-Based Management. McGraw-Hill Education.
• Cleland, D. I., & Ireland, L. R. (2007). Project Management: Strategic Design and Implementation. McGraw-Hill.