QUESTION: 93

Which of the following best describes the purpose of Michael Porter's Five Forces model?

To examine the macro environment to identify any triggers for change.
To examine the internal environment to identify the strengths and weaknessness of the business which can be used to gain competitive advantage.
To indentify the profit potential from the industry to determine whether to enter or remain in the industry.
To analyse the stakeholders of the business and their power and interest in order to manage them effectively.

Answer(s): C

P is an experienced engineer and project manager that has just been appointed to manage a complex multi-million pound engineering project. It is the start-up stage of the project and nothing at all has been done so far except for the design work. No other team members have been appointed.

P decides to start by firstly decomposing the full scope of the project into a hierarchy of work packages.

Secondly P intends to create a structure showing the reporting relationships and communications channels for the entire project team.

Thirdly, P plans to embark on a systematic process of identifying all the individual elements that comprise the total cost of the project in order to calculate a bottom-up budget.

Select the structures that P will adopt in the correct order.

Work Breakdown Structure / Organisation Breakdown Structure / Cost Breakdown Structure
Organisation Breakdown Structure / Work Breakdown Structure / Cost Breakdown Structure
Organisation Breakdown Structure / Cost Breakdown Structure / Work Breakdown Structure
Work Breakdown Structure / Cost Breakdown Structure / Responsibility Assignment Matrix

Answer(s): A

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