Task 3: Evaluate and address external business environment changes

A multinational corporation is planning a project to expand into a new country. The project manager performs a PESTLE analysis and identifies that the target country has recently increased tariffs on imported technology hardware.<br/><br/>Which PESTLE factor does this represent?

A project manager is leading a software development project. A competitor unexpectedly releases a new feature that makes the project's core value proposition obsolete.<br/><br/>Which TWO actions should the project manager take FIRST? (Select TWO)

A project manager is working on a construction project. A new government is elected, and they announce a freeze on all new infrastructure permits. The project has not yet received its permit.<br/><br/>What is the impact on the project scope?

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?

A project manager is monitoring the external environment and notes a significant drop in the currency exchange rate relevant to the project's imported materials. <br/><br/>Which project document should be updated FIRST?

An Agile team is building a financial app. A new 'Open Banking' standard is released by the industry regulator. The Product Owner decides to adopt this standard immediately to gain a competitive advantage, even though it wasn't mandatory yet.<br/><br/>How does this external change impact the project scope/backlog?

A project relies on a supply chain that passes through a region experiencing sudden geopolitical instability. <br/><br/>What is the BEST proactive step for the project manager?

A project manager is reviewing the external business environment for a consumer electronics project. <br/><br/>Which TWO factors represent 'Social' external changes? (Select TWO)

A project manager identifies that a new technology has emerged that could automate 30% of the project's scope, reducing cost but requiring a change in the team's skillset. The project is 20% complete.<br/><br/>What is the BEST approach?

What is the acronym for the strategic framework used to analyze external business environment factors: Political, Economic, Social, Technological, Legal, and Environmental?

How frequently should a project manager review the external business environment for impacts on the project scope?

A project manager is leading a project to develop a fossil-fuel based power plant. A global climate summit results in a new international treaty aiming to phase out such plants within 5 years. The project is scheduled to last 4 years.<br/><br/>What is the MOST strategic recommendation the project manager should make to the steering committee?

A project manager observes that the inflation rate has increased significantly, raising the cost of raw materials. The project is a fixed-price contract with a client.<br/><br/>Who bears the risk of this external environmental change?

A project manager is assessing the impact of a new competitor entering the market. The competitor's product is cheaper and faster. <br/><br/>What is the MOST likely impact on the project's backlog?

A startup is developing a travel app. A global pandemic halts all travel. The project manager and sponsor meet to discuss the project's future. <br/><br/>Which decision represents a 'Pivot'?

A key stakeholder is refusing to approve the project charter because they believe the project's objectives do not align with the new corporate strategy released yesterday. What should the project manager do FIRST?