ExpertHard1 markMultiple Choice
Task 3: Evaluate and address external business environment changesBusiness EnvironmentExternal EnvironmentTask 3
PMP · Question 34 · Task 3: Evaluate and address external business environment changes
During a project to develop a diesel engine, new environmental regulations are announced that will ban diesel engines in the target market by the time the project is scheduled to finish.<br/><br/>What should the project manager recommend?
During a project to develop a diesel engine, new environmental regulations are announced that will ban diesel engines in the target market by the time the project is scheduled to finish.<br/><br/>What should the project manager recommend?
Answer options:
A.
Continue the project as planned since the budget is already approved.
B.
Rush the project to finish before the ban takes effect.
C.
Recommend terminating the project or pivoting to alternative technology (e.g., electric/hybrid).
D.
File for an exemption from the regulation.
How to approach this question
If the External Environment makes the product illegal/unsellable, the project must Stop or Pivot.
Full Answer
C.Recommend terminating the project or pivoting to alternative technology (e.g., electric/hybrid).✓ Correct
C
The PM must align the project with the external environment. If the environment becomes hostile (ban), the project must change course (Pivot) or stop (Terminate). Continuing (A) is waste.
Common mistakes
Sunk cost fallacy (A).
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