Scenario - Additional Information - During the initiation stage the Project Manager met with the Marketing Director to find out more about the requirements of the promotional calendar and recorded the following notes: There has been a reduction in the order numbers at the MNO Manufacturing due in part to the increased marketing activities of its competitors.
10% of customers have not re-ordered in this financial year and staff morale is poor.
A number of skilled staff have left as a result and replacement staff have not been recruited due to the reduced operation.
If the project is successful, a recruitment campaign will be required to fill the existing staff vacancies and there may be a requirement for additional staff.
Operational costs are likely to increase because skilled staff are expensive and difficult to find.
In financial terms, there were a total of 1,500 orders in the last financial year, each with an average profit of 2k.
The Marketing department believes that sending a promotional calendar to our current and prospective customers would increase orders by at least 10% with a minimum of 10 further orders from the list of prospective customers within 12 months from the date of distribution.
The Marketing Director will be funding the project from the business marketing budget.
She believes that the effect of a good company image portrayed by a successful calendar would last into a second year.
She has forecast the same increase in orders for a second year and predicts that the annual employee satisfaction survey will show a measurable improvement in staff morale.
A number of alternatives were explored, including: -> 20% discount for all repeat customers - not cost-effective and very short term -> A promotional calendar as a free Christmas gift - would target current and prospective customers and the benefits would last into a second year -> A series of television and press advertisements was too expensive -> A direct mail shot to all customers - benefit would be short term -> Creation of an internet website - would not suit all customers The calendar is seen as the favored option, as long as the company's competitors do not increase their marketing activity.
Whilst the Marketing department wants a very high quality, glossy product, the project management team must be aware of the cost this will incur.
Which 2 statements should be recorded under the Expected dis-benefits heading?
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A. B. C. D. E.BD.
Expected dis-benefits refer to potential negative outcomes or consequences that may arise from a project. In the given scenario, two statements that should be recorded under the Expected dis-benefits heading are:
A high quality, glossy product will involve additional costs. This statement refers to the potential negative impact on the project's budget due to the requirement for a high quality, glossy product. The Marketing department wants a high-quality product, but the project management team must be aware of the additional costs this will incur. It is essential to record this as a potential dis-benefit as it may impact the project's financial performance.
The calendar may not result in the expected 10% increase in orders. This statement refers to the potential negative impact on the project's objective of increasing orders by 10% due to the distribution of the promotional calendar. While the Marketing department believes that sending a promotional calendar to current and prospective customers would increase orders by at least 10%, there is no guarantee that this target will be achieved. It is essential to record this as a potential dis-benefit as it may impact the project's success in achieving its objectives.
The other options mentioned in the scenario do not represent expected dis-benefits. Option B refers to a potential negative impact on employee morale, which should be recorded as a risk and managed through appropriate mitigation strategies. Option D refers to the potential impact on other projects within the Marketing department, which should also be recorded as a risk and managed accordingly. Option E is similar to option C and refers to the potential negative impact on the project's objective of generating 10 further orders from prospective customers. It is important to note that while these options may represent potential negative impacts, they should be recorded as risks rather than expected dis-benefits.