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As Director of New Projects, You Have Just Learned That

question 156

Essay

As director of new projects, you have just learned that cash flow problems have forced your organization to cut back product-development activities. This means that two of the eight projects currently being developed must be terminated, along with the employees working on those projects (about 25 per cent of employees in your unit). You have a good knowledge of these projects as well as the performance and seniority of employees who work in your unit. While some projects clearly have a high chance of success, the long-term potential of a couple of them is unknown. Identify the best level of employee involvement in this situation and describe three factors (contingencies) that support this level of involvement.


Definitions:

Anti-idling Legislation

Laws or regulations aimed at reducing vehicle idle time to cut down on pollution and fuel consumption.

Tractor-Semi Trailer

A truck configuration where a towing engine (tractor) is connected to one or more trailers.

Overall Length

The total length of a vehicle or component from its furthest point at the front to its furthest point at the back.

Internal Rate Of Return

The required rate of return that achieves a net present value of zero across all cash flows from a given project.

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