Question 1: Describe the three strategy levels in detail. Answer: Strategies can be formulated on three different levels.

Johnson and Scholes define strategy as Strategy is the direction and scope of an organization over the long term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations. While strategy may be about competing and surviving as a firm, one can argue that products, not corporations compete, and products are developed by business units. The role of the corporation then is to manage its business units and products so that each is competitive and so that each contributes to corporate purposes. In other words, strategy is about: Market; scope are which markets should the business compete in and what kind of activities are involved in such markets. Advantage is how the business can perform better in such markets. Resources are the skills, assets, finance, relationships, technical competence, facilities required to enable the business to compete. Environment is the external, environmental factors that affect the business ability to compete. Stakeholders expectations are the values and expectations of those who have power in and around the business.

Strategy at Different Levels of a Business: Strategies exist at several levels in any organization - ranging from the overall business (or group of businesses) through to individuals working in it Strategy Levels: Strategy exists at three hierarchical levels in an organization ranging from the overall business (or group of businesses) through to individuals working in it. Corporate Strategy: It is concerned with the overall purpose and scope of the business to meet stakeholder expectations. This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a "mission statement". It consists of the kinds of initiatives the company uses to establish business positions in different industries, the approaches corporate executives pursue to boost the combined performance of the set of businesses the company has diversified into, and the means of capturing cross-business synergies and turning them into competitive advantage. Senior corporate executives normally have lead responsibility for devising corporate strategy and for choosing among whatever recommended actions bubble up from the organization below. Business Unit Strategy: This strategy is concerned more with how a business competes successfully in a particular market. It concerns strategic decisions about choice of products, meeting needs of customers,

gaining advantage over competitors, exploiting or creating new opportunities etc. Business strategy concerns the actions and the approaches crafted to produce successful performance in one specific line of business. The key focus here is crafting responses to changing market circumstances and initiating actions to strengthen market position, build competitive advantage, and develop strong competitive capabilities. Orchestrating the development of business-level strategy is the responsibility of the manager in charge of the business. Operational Strategy: It is concerned with how each part of the business is organised to deliver the corporate and business-unit level strategic direction. Operational strategy therefore focuses on issues of resources, processes, people etc. Operating strategies concerns the relatively narrow strategic initiatives and approaches for managing key operating units(plants, distribution centres, geographic units) and for specific operating activities with strategic significance (advertising campaigns, the management of specific brands, supply chain-related activities, and Website sales and operations).Operating strategies add further detail and completeness to functional-area strategies and to the overall business strategy. Lead responsibility for operating strategies is usually delegated to frontline managers, subject to review and approval by higher-ranking managers.

Question 2: a) Describe the various roles undertaken by a Project Manager. b) List and explain in brief the qualities of a Project Manager. Answer: a) Various roles undertaken by a Project Manager: The role of the Project Manager is to plan, execute and finalize projects according to strict deadlines and within budget. This includes acquiring and coordinating the efforts of team members and third-party contractors or consultants in order to deliver projects according to plan. The role & responsibilities of a Project Manager is little complex and needs to be explained elaborately in clear terms for each project. Below are few important roles & responsibilities of a Project Manager: The Project Manager is the person responsible for managing the project.

The Project Manager is the person responsible for accomplishing the project objectives within the constraints of the project. He is responsible for the outcome (success or failure) of the project. The Project Manager is involved with the planning, controlling and monitoring, and also managing and directing the assigned project resources to best meet project objectives. The Project Manager Controls and monitors triple constraintsproject scope, time and cost (quality also)in managing competing project requirements.

 The Project Manager examines the organizational culture and determines whether project management is recognized as a valid role with accountability and authority for managing the project. The Project Manager collects metrics data (such as baseline, actual values for costs, schedule, work in progress, and work completed) & reports on project progress and other project specific information to stakeholders. risk. The Project Manager is responsible for identifying, monitoring, and responding to

The Project Manager is responsible to the project stakeholders for delivering a projects objectives within scope, schedule, cost, and quality. The reporting structure of a Project Manager will change depending on organizational structure. He may reports to a Functional Manager or to a Program Manager. In a bit exaggerating terms, Project Manager is the God of his project and he is the one who decides the success of the project. b) Qualities of a Project Manager: You do not lead by hitting people over the head thats assault, not leadership. How apt these words by Dwight D Eisenhower are, leadership is not about bullying people, it is about getting people to respect you with your leadership skills and qualities. People should want to be lead by the project manager. So what are the leadership qualities that a project manager should have? Should he be skilled or compassionate? Or maybe he needs to be a good communicator or a visionary? There is not right answer and there is no wrong answer. Even as I make this statement, here is a list of some leadership qualities for a project manager. Vision: Every project manager should have a vision, a vision of what he wants the project to be like, a vision of how to get things done and a vision of the near future of the project. And he needs to be able to convey this vision to his team members. Only when there is vision is there going to be real involvement on the part of the project manager and thus involvement on part of the team members. This is when the team members and project manager start feeling like a part of the organization and not just the project. Communication skill: Most would say communication is the most important skill of a project manager and some would beg to differ. But communication is an integral part of the leadership qualities. Without communication the project manager cannot lead. Communication not only allows for great leadership but also for openness and relativity. Persuasion and negotiation are all a part of communication and the project managers qualities. Honesty: Call it honesty, integrity or loyalty, the project manager needs to have it all. The actions of the project manager set an example for the rest of the team members. The project manager is

ultimately responsible for setting standards, ethically and otherwise for the rest of the team. The project manager needs to practice before preaching and to lead by example. Passion: A project manager without passion is one that is simple put, lacking dedication. The project manager has to be passionate about the project; he should have enthusiasm and the right attitude. Only then will people follow him and respect his decisions, because they need to feel he is doing it for the project. There needs to be commitment and optimism involved. Compassion: Do not mistake empathy or compassion for sympathy. These two words are independent of each other. Empathy means to understand. A good project manager needs to understand or empathize with the fact that there is a life outside the work place and that people are not machines without emotions. Skill and knowledge: There needs to be some skill and knowledge that the project manager needs to have. To put it simply, the project manager should know what he is doing and should be able to guide the rest of the team. Delegation: The project manager should be able to handle delegation with ease. He should be able to recognize skills and expertise of his team members and assign or delegate tasks according to those. Also this shows that the project manager trusts the team in doing tasks. Trust inspires confidence. Composed: We do not live in a perfect world. There are times when things do not go as expected in such a case the project needs to maintain his cool and be composed irrespective of the amount pressure he is under. This shows good leadership and strength in character. Team building: The project manager should also be a team builder. He should be able to hold and pull the team together to work under different conditions. The team starts as a group of strangers and needs to be made into a core group of people. Problem solver: An efficient project manager should be capable of solving any and all problems, either with the team or the project itself.

Question 3: a) Describe the major types of stakeholders in a project.

b) Describe the major type of Organizational structure in Detail. Answer: a) Major types of stakeholders in a project: According to PMIs guide to PMBoK, project stakeholders are individuals and organizations actively involved in the project, or whose interests may be positively or negatively affected as a result of project execution or project completion. According to Stanford Research Institute5 stakeholders are those groups without whose support the organization would cease to exist. The major stakeholders of a project are: Project Manager Customer Performing Organization Project Team Members Sponsor Society

Below figure depicts a diagrammatic representation of the major stakeholders of a project.

Project Manager: Project manager is the interface between the customer and other internal stakeholders. The project manager holds the responsibility for the successful implementation of the project and is an important stakeholder. Customer: Customers are the internal or external group of individuals who directly affect the project. The aim of the project is to create a product, service or facility based on customer requirements and to deliver it to the customer. Hence, the project team must consider all requirements of the customer while creating the deliverable. The customer can be any one of the following: Internal customer:

They are individuals within the parent organisation. For example, the IT department is assigned to provide a software package for the accounts department. The accounts department is the internal customer. Intermediate customer: They are external to the company but not the final user of the product e.g. distributors and wholesalers. External customer: They are individuals or organisations that pay for and use the final product. Performing Organization: The performing organization is the enterprise whose employees are most directly involved in performing the work of the project. Therefore, the project contributes towards achieving the corporate goals of the performing organization. In addition, there are several other stakeholders like project owner, fund providers, suppliers or contractors, government agencies and media outlets and the society. Stakeholder roles and responsibilities may overlap. For example, when an engineering firm finances a plant it is in the designing or construction field, the role of the engineering firm changes from performing organization to sponsor for the projects undertaken by the designing or construction company. The naming or grouping of stakeholders is primarily an aid to identify individuals or organizations who view themselves as stakeholders. Project Team Members: Team members working in their individual areas of expertise play a crucial role in the success of the project. They work directly with or under the project manager depending on the organization structure adopted for the project. The project manager, therefore, uses team building skills to ensure that the team members work as a team. Sponsor: The sponsor is an individual or a group within or external to the parent organization who arranges the financial resources in cash or in kind for the project. The sponsor may be a senior executive of an organization or a junior manager with formal authority who is responsible for the project thus, acting as a link between the project and the performing organization. Major type of Organizational structure in Detail: Organizational structure has a significant impact on the functioning of a project manager. To enable successful completion of a project, it is important that the resources required for project implementation flow freely from the organization to the project. There are three types of organizational structures: 1) Functional organization: It is a hierarchical structure. It defines a clear Superior-Subordinate relationship, i.e., the line of control is clear. Each department carries out work in its area of specialization and employees in each department work with its respective expertise within the

b)

department's line of control. In a manufacturing organization, the different departments are production, finance, marketing, quality control, engineering, administration, personnel ands so on. If a new product is to be developed, the engineering department handles only the design development phase of the product. If answers to questions concerning manufacturing, marketing or quality control are found, the query is passed on to the respective department through formal communication channels. 2) Project-based organizations: These are designed to provide near total authority to the project manager. The project manager directs work and sets priorities to employees assigned to the project manager for the project. Functional departments exist in this organization, but the groups working in these departments report directly to the project manager in the execution of various projects. 3) Matrix-based organizations: It is the combination of the features of functional and project-based organizational structures. In this type of organizational structure, project managers and functional managers have equal authority, which implies that the functional staff member reports to both project manager and their functional manager. This constitutes a dual reporting system for each functional staff member.

Question 4: List and describe in brief the various qualities of the project management process. Answer: Overview of Project Management Processes: PMBoK organizes Project management processes into five groups, defined as the Project Management Process Groups, each group comprising one or more processes. Project management of a single project essentially comprises a number of interlinked processes. The underlying concept for the interaction among the processes is the Plan-Do-Check-Act (PDCA) cycle is referred in the American Society for Quality (ASQ) handbook. Traditionally, project management includes a number of elements: four to five process groups, and a control system. Regardless of the methodology or terminology used, the same basic project management processes will be used. Major process groups generally include: Initiation Planning or development Production or execution Monitoring and controlling Closing

Initiation:

The initiation processes determine the nature and scope of the project.[21] If this stage is not performed well, it is unlikely that the project will be successful in meeting the business needs. The key project controls needed here are an understanding of the business environment and making sure that all necessary controls are incorporated into the project. Any deficiencies should be reported and a recommendation should be made to fix them. Planning and design: After the initiation stage, the project is planned to an appropriate level of detail. The main purpose is to plan time, cost and resources adequately to estimate the work needed and to effectively manage risk during project execution. As with the Initiation process group, a failure to adequately plan greatly reduces the project's chances of successfully accomplishing its goals. Executing: Executing consists of the processes used to complete the work defined in the project management plan to accomplish the project's requirements. Execution process involves coordinating people and resources, as well as integrating and performing the activities of the project in accordance with the project management plan. The deliverables are produced as outputs from the processes performed as defined in the project management plan. Monitoring and controlling: Monitoring and controlling consists of those processes performed to observe project execution so that potential problems can be identified in a timely manner and corrective action can be taken, when necessary, to control the execution of the project. The key benefit is that project performance is observed and measured regularly to identify variances from the project management plan. Closing: Closing includes the formal acceptance of the project and the ending thereof. Administrative activities include the archiving of the files and documenting lessons learned.

Question 5: Write a short note on the following: a) SWOT Analysis as a Strategic Planning tool. b) Net Present Value (NPV) as a Project selection criterion. Answer: a) SWOT Analysis as a Strategic Planning tool: S.W.O.T. is an abbreviation for Strengths-Weaknesses-Opportunities-Threats. One of the most fundamental tools for strategic market planning is the use of SWOT analysis template to evaluate potential business success. This simple tool, developed at Stanford University in the late 1960's, is an extremely powerful ingredient in the recipe for business success. Used by most Fortune 500 companies in strategic planning, the SWOT matrix involves a frank evaluation of a business' Strengths, Weaknesses, Opportunities and Threats:

STRENGTHS: Attributes of the organization those are HELPFUL to achieving the objective. These are the company's core competencies, and include proprietary technology, skills, resources, market position, patents, and others. WEAKNESSES: Attributes of the organization those are HARMFUL to achieving the objective. Weaknesses are conditions within the company that can lead to poor performance, and can include obsolete equipment, no clear strategy, heavy debt burden, poor product or market image, long product development cycle, weak management, and others. OPPORTUNITIES: External conditions those are HELPFUL to achieving the objective. Opportunities are outside conditions or circumstances that the company could turn to its advantage, and could include a specialty niche skill or technology that suddenly realizes a growth in broad market interest. THREATS: External conditions those are HARMFUL to achieving the objective. Threats are current or future conditions in the outside environment that may harm the company, and might include population shifts, changes in purchasing, serious competitive barriers, changes in governmental or environmental regulations, and others. SWOT analysis provides an efficient way to evaluate the range of factors that influence your operation, and can give you valuable guidance in making decisions about what to do next. It also provides a highly productive way to get your key personnel involved in the management decision-making process. The exercise of going through the SWOT analysis matrix can be a great opportunity to do management team building. If you have a large team, break into 4 teams for each of the quadrants and each team can prepare and report its findings. Make sure to include not only your market planners, but also finance, operations, product development and others. SWOT Analysis is one of the effective analytical tools to evaluate a situation. The situation may be strategic related or capabilities related. SWOT Analysis is often used along with Strategic planning and it forms one of the key critical success factors in a Strategic Planning Process. There are many ways how a SWOT analysis is used. This TQM article aimed to share how SWOT analysis can be used as an essential tool to Strategic Planning Process as I practiced in my workshop conducted over the years. While detail Analysis is performed, it can become a complex process because it entails several data analysis involves external factors such as Political, Economic, Societal and Technological in short called P.E.S.T. Besides, it also examines internal factors such as operational capabilities as compared to the competitors.

b) Net Present Value (NPV) as a Project selection criterion:

In finance, the net present value (NPV) or net present worth (NPW) of a time series of cash flows, both incoming and outgoing, is defined as the sum of the present values (PVs) of the individual cash flows. In the case when all future cash flows are incoming (such as coupons and principal of a bond) and the only outflow of cash is the purchase price, the NPV is simply the PV of future cash flows minus the purchase price (which is its own PV). NPV is a central tool in discounted cash flow (DCF) analysis, and is a standard method for using the time value of money to appraise long-term projects. Used for capital budgeting, and widely throughout economics, finance, and accounting, it measures the excess or shortfall of cash flows, in present value terms, once financing charges are met. The NPV of a sequence of cash flows takes as input the cash flows and a discount rate or discount curve and outputs a price; the converse process in DCF analysis - taking a sequence of cash flows and a price as input and inferring as output a discount rate (the discount rate which would yield the given price as NPV) - is called the yield, and is more widely used in bond trading. Each cash inflow/outflow is discounted back to its present value (PV). Then they are summed. Therefore NPV is the sum of all terms,

Where t - The time of the cash flow i - The discount rate (the rate of return that could be earned on an investment in the financial markets with similar risk.) Rt - the net cash flow (the amount of cash, inflow minus outflow) at time t. For educational purposes, R0 is commonly placed to the left of the sum to emphasize its role as (minus) the investment. The result of this formula if multiplied with the Annual Net cash in-flows and reduced by Initial Cash outlay will be the present value but in case where the cash flows are not equal in amount then the previous formula will be used to determine the present value of each cash flow separately. Any cash flow within 12 months will not be discounted for NPV purpose. Net Present Value (NPV) as Project Selection Criterion: NPV is the present value of the future revenues after deducting future costs. This is a very popular and valid method for selecting a project from the financial viewpoint. Some factors that companies use to enhance NPV are: Government policy. For example, special tax benefits and exemptions for an industry or a location. Economies of scale: In manufacturing, unit cost is substantially reduced by adopting high production volume. For example, petroleum refining, steel production, and mining. Product differentiation: This is achieved by innovative product features, high quality products, customised service and so on.

Technology superiority: DRL outperformed its competitors in the drugmanufacturing industry because of their technology based on research and development.

Question 6: Describe in brief the Human resource management process in a project. Answer: Project Human Resource Management: Project Human Resource Management is a subset of Project Management that includes various processes that are essential and are required for making the most effective use of the people involved with the project. Human Resource Management includes various processes that are vital to make the most effective use of the people involved with a project. The main process involved with the HR Management process includes: Acquiring the project team. Developing the project team. Managing the project team.

Acquiring a Project Team: The members who belong to different groups and functions and are allocated to the activities of the same project, form a project team. A team can be divided into sub-teams if required. Generally, the project teams are only used for a defined period of time. However, they are disbanded when the project is complete. Sometimes, due to the nature of the specific formation and disbandment, project teams are usually agile in organisations. Acquiring a project team is the process of acquiring the specific people needed to accomplish all phases of the given project. Ultimately the team members will bring all the specific qualifications and capabilities to the project team. However, the project management team has control over the selection process. Selection of team mates involves certain concerns which need to be evaluated. A number of factors are considered while deciding the team members. These factors include a series of environmental factors (such as work experience, availability, and cost), derivation of clear and concise project organisation charts, and formulation of a thorough staffing management plan. Once the team is properly staffed, the next steps (or outputs) of the process involve staffing out assignments to the team, determining availability of resources, and updating the staffing management plan. Important factors that are considered during the process of acquiring the team are: The project manager should efficiently discuss and induct others who are in a position to supply the required Human Resources in a project.

Failure to obtain the essential Human Resources for the project will affect project agenda, budgets, consumer satisfaction and quality. It declines the probability of success and eventually results in project cancellation.

Developing a Project Team: Developing a project team is a process of enhancing interaction among the team members and also the project manager. The process refers to increasing competencies of individuals and building up team spirit, which finally leads to a quality project. To achieve project success, there should be good communication among the team members. Project managers should administer the development of the project team. The project manager should create the relevant environment for teamwork, provide new goals for the team to compete and achieve. Project managers should encourage feedback from the team. The project manager should provide effective review and good support to the team staff. Open communication between the project manager and team reduces conflicts. The management should also support the project managers. The project stakeholders should provide the required support to the development of the project team. Projects are done in diversified environments. The project team may experience variance in language, industry and culture while at work. The project team should be dedicated to the project and the team members should work together, without losing their individuality. The goals for developing a project team are: To develop technical knowledge about the project, this leads to quality output and meeting delivery schedules with reduced cost. To enhance trust among team members, thus reducing conflicts. To develop cohesiveness in the project. To allow sharing knowledge among team members.

The five stages of team development are: Forming: Forming involves knowing every team member individually. The team members are inclined to work independently. They find out about each other and know whos who. Storming: Storming involves the actual Project Management process. This stage promises action. There is a struggle for project team control, and momentum builds as members have to lead the project team. During this phase, the team members figure out the hierarchy of the team and the informal roles of team members. Norming: Norming is working together, socialising, and providing constructive criticism. The team develops a strong commitment to the teams goal and work to achieve it. Performing:

Performing means smooth movement of project development by a well-organised project team. The team members blend into their roles and focus on completing the project work as a team. Adjourning:

Adjourning implies completion of the project so that the team is ready for a new one. Managing a Project Team: Managing a project team is the process of delegating responsibilities and tasks, monitoring team performance, providing feedback, solving issues, and coordinating changes to enhance overall project performance. Managing the team is one of the most critical aspects of project management. The project manager should encourage building competencies among the team members and reward them accordingly. Key aspects of managing a project team are: Assigning work and observing the commitment level in each team member. Building co-operative working relationship and ensuring effective communication among all members of the project team. Monitoring team spirit. Providing effective performance review and appraisal to inspire the project team.