proj 587 Essay
This is a two part assignment.
First, develop project selection criteria and a high level process for applying the criteria and managing the portfolio. The criteria should be consistent with the business environment for the industry, consistent with your company's overall mission/strategies, and consistent with the mission and strategies of your strategic business unit. You are proposing a process, not individual projects.
The deliverable for Part 1 is a written proposal for the project selection criteria and a high level description of a proposed portfolio management process. You may also be expected to make an informal presentation of the report in class.
The proposal should be in the form of a …show more content…
The Alaskan cruise ship industry is booming. For some reason, people like to look at icebergs. Unfortunately, our company is servicing no cruise ships in Alaska. Project Rocky is to expand into the Alaskan market. This project will require the acquisition of property in Alaska, renovation of that property, and staffing of the facility. This project is seen as a major money maker for the company and has a NPV of $19 million dollars over five years. Its costs would be $13 million dollars to initially set up the project and $400,000 a year to operate the facility. This initial cost can be spread evenly over each of four quarters of the entire year. These initial costs should be recovered within the first two or three years of operation. Most of the work of this project would be outsourced and management of the project would likely be difficult.
The Mediterranean cruise ship industry is booming. Unfortunately, our company is servicing no cruise ships in the entire European area. Project Europa is to expand into the Mediterranean market. This project will require the acquisition of property in Italy, renovation of that property, and staffing of the facility. The current governmental overspending and austerity issues may impact this project. However, this project is seen as a major