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QUESTION NO: 14
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 Business options heading?
A. Produce a promotional calendar as a free Christmas gift to current and
prospective customers.
B. Use a professional photographer to create the photographs for the calendar.
C. Create the photographs for the calendar internally.
D. Outsource the creation of the calendar to a professional marketing company.
E. Do nothing.
Answer: A, E
QUESTION NO: 6
Which statement best explains the purpose of Tailor to suit the project
environment?
A. Ensure project controls are based on project’s scale, complexity, importance,
capability and risk
B. To use a set of pre-defined templates for the size of project
C. To tailor the use of the principles to suit the project
D. To pick which PRINCE2 processes to apply and which to leave out
Answer: D
QUESTION NO: 5
The Manage by Exception principle sets tolerances for six areas of the project,
Time. Cost and Quality are three of them, what are the other three?
A. Scope, People and Resources, Benefit
B. Scope, Risk, Product
C. Risk, Benefit, Product
D. Scope, Risk, Benefit
Answer: A
QUESTION NO: 9
When considering the business options in the business case, which of these is NOT
an option?
A. Do nothing
B. Do the maximum
C. Do the minimum
D. Do something
Answer: B
QUESTION NO: 12
Which of the following activities is the Executive responsible for?
A. Ensure the desired outcome of the project is specified
B. Responsible for the benefits review plan
C. Assess and update the Business Case at the end of each stage
D. Responsible for the Benefits Review Plan post project
Answer: B
QUESTION NO: 4
Which of the following statements is FALSE regarding the Continued Business
Justification?
A. The justification for the project must remain the same throughout the project
B. The justification for the project should remain valid
C. The justification for the project may change
D. If the project is no longer justified it should be stopped
Answer: B
QUESTION NO: 17
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 Timescale heading?
A. Benefits will be lost if the project is not completed on time.
B. A recruitment campaign to fill the existing staff vacancies will need to take
place in the next 12 months.
C. Additional 10% increase in orders in year two.
D. The prepared calendar pack must be delivered by the first week in December.
E. The print company requires a 2 week notification period of the calendar pack
delivery.
Answer: C, D
QUESTION NO: 8
Which of the following should NOT be included in the business case?
A. Reasons
B. Major Risks
C. Business options
D. Business approach
Answer: D
QUESTION NO: 7
Which of the following statements describes an outcome?
A. Any of the projects specialist products
B. A result of the change derived from using the project’s products
C. A measurable improvement resulting from a change
D. Something perceived as advantages by a stakeholder
Answer: B
QUESTION NO: 13
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 5
• 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 Reasons heading?
A. The Marketing department believes that sending a promotional calendar
to current and prospective customers will increase orders by at least 10%.
B. 10% of customers have not re-ordered in this financial year.
C. 1,500 orders are expected, each with an average profit of £2k.
D. The Marketing department believes that the effect of a good company image,
portrayed by a successful calendar, will last into a second year.
E. MNO Manufacturing is experiencing a fall in orders due in part to the
increased marketing activities of its competitors.
Answer: B, E
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