Exam 1 - Business in Project Management

What is a stakeholder in project management?

• Someone who owns a stake in the company
• Anyone affected by the project
• Only the project manager
• The financial sponsor

Answer explanation

Stakeholders include anyone who can affect or be affected by the project.

What does ROI stand for in project management?

• Rate of Investment
• Return of Investment
• Revenue on Investment
• Risk of Investment

Answer explanation

ROI measures the profitability of an investment relative to its cost.

What is a key characteristic of a successful start-up?

• Large initial funding
• Innovative business model
• Established market presence
• Numerous employees

Answer explanation

Start-ups often succeed by introducing new and innovative business models.

Why is stakeholder analysis crucial in project management?

• To identify project tasks
• To understand stakeholder interests and influence
• To allocate project budget
• To schedule project activities

Answer explanation

Stakeholder analysis helps manage their expectations and involvement in the project.

Which of the following best describes 'lean organisations'?

• Organisations with minimal hierarchy
• Organisations that focus on continuous improvement and waste reduction
• Organisations that heavily invest in digital technologies
• Organisations with a large workforce

Answer explanation

Lean organisations aim to improve efficiency and reduce waste through continuous improvement.

Which project management methodology focuses on continuous improvement and waste reduction?

• Waterfall
• Agile
• Lean
• Six Sigma

Answer explanation

Lean methodology emphasizes improving efficiency and reducing waste.

What is the Business Model Canvas?

• Is a problem-solving method that involves the spontaneous contribution of creative ideas and solutions.

• Is a tool to help map existing business models, improve them and invent new ones.

• It's a cause and effect diagram to help identifying possible causes of a problem and in sorting ideas into useful categories.

• Is an organizational tool used to explore a topic and generate ideas to push our creative thinking further, leading to greater insight and innovation.

Answer explanation

The Business Model Canvas is a strategic tool that helps visualize, design, and innovate business models, making it easier to map existing models and improve or create new ones.

This is NOT a reason why digital transformation fails

• Lack of clear, shared organisational, goals backed by leadership

• Poor collaboration and communication between teams

• Getting the people involved and engaged with the projects

• Poorly adopted agile mindset

Answer explanation

Getting people involved and engaged is essential for success, not a reason for failure. In contrast, lack of clear goals, poor collaboration, and a poorly adopted agile mindset are common reasons digital transformation initiatives fail.

Which is a characteristic of an agile leadership.

• Uses power through position

• Command and control

• Empowerment and collaboration

• Follows processes and procedures

Answer explanation

Agile leadership emphasizes empowerment and collaboration, fostering a team-oriented environment. This contrasts with traditional approaches that rely on command and control or strict adherence to processes.

What is company culture?

• Is a company dominated by bad practices and policies.
• Is the heart and soul of an organization—its personality and values. It is defined by a shared set of beliefs, attitudes, behaviours, and goals.
• The organizational culture is one where the values and norms are not clearly defined and communicated to the employees.
• It's the hierarchy and bureaucracy of the organisation.

Answer explanation

Company culture is about the shared norms, values, attitudes and practices that form the collective identity of your company.