• 1. Define the Strategic Management Process.
• 2. Describe how project management is integrated into the strategic management process. 
• 3. How does organizational culture influence the selection of a project management structure? 
• 4. You work for a company which expects to earn at least 15% on its investments. Two similar projects are being considered, Project A and Project B.  Below is the cash flow information for each project. Financial analysts predict that the inflation rate will be at a stable 2% over the next 7 years. Which of the two projects would chose to fund if the decision is based only on financial information? Why? 

 Project A Year	Inflow, $	Outflow, $	Project B	Inflow, $	Outflow, $
0	0	235,000	0	0	310,000
1	0	200,000	1	60,000	110,000
2	160,000	0	2	160,000	0
3	230,000	40,000	3	260,000	60,000
4	225,000	0	4	260,000	260,000
5	215,000	60,000	5	210,000	60,000
6	207,000	0	6	190,000	0
7	110,000	40,000	7	130,000	100,000

 

Project A Year	Inflow, $	Outflow, $	Net flow	Project B	Inflow, $	Outflow, $	Net Flow
0	0	235,000	-235000	0	0	310,000	-310000
1	0	200,000	-200000	1	60,000	110,000	- 50000
2	160,000	0	+160000	2	160,000	0	+160000
3	230,000	40,000	+190000	3	260,000	60,000	+200000
4	225,000	0	+225000	4	260,000	260,000	0
5	215,000	60,000	+155000	5	210,000	60,000	+150000
6	207,000	0	+207000	6	190,000	0	+190000
7	110,000	40,000	 +70000	7	130,000	100,000	+30000
Total	Â	Â	Â	Total	Â	Â	Â

Note:

In order to take the rate of inflation into account, it is necessary to add the rate of inflation to the rate of return.

A five year project has a projected net cash flow of $10,000, $15,000, $50,000, $30,000, and $25,000 in the next five years. It will cost $75,000 to implement the project. If the required rate of return is 15%, conduct a discounted cash flow calculation to determine the NPV. A company has set up a weighted scoring matrix for evaluation of potential projects. Projects being considered are listed below. Using the scoring matrix below, which project would you rate the highest and the lowest? (10 Points)

Criteria	Environmental Benefits	Supports Business Strategy	Urgency	Public Image	Competition	Fill Market gap	Weighted Total
Weight	1.0	4.0	2.0	3.0	2.0	3.0	Â
Project A	3	4	2	1	2	2	Â
Project B	3	5	2	0	5	1	Â
Project C	9	8	2	9	1	2	Â
Project D	1	3	5	10	6	1	Â
Project E	3	5	10	1	8	0