Strategic Project Management Planning

SPM1: Strategic project management planning sheet
SPM1.0 AC 1.01
Discuss how projects support the strategic objectives of an organisation
SPM1 planning sheet Page 1 of 11

Introduction:
Projects are conducted to develop new services, products or outcomes that help the
strategic direction of an organisation.
P1) What is meant by strategic objectives of an organisation? The objective
defines as the organization has to achieve its success to create the strategy. The
term strategic objectives are generally forced by externally and classified into eight
different types of categories such as (1) Market standing relates to the preferred
share of the present as well as new markets, (2) Innovation that relates to develop
new category products or services as well as skills etc., (3) Human resources are in
relation to the selection as well as development of the workers in an organization,
(4) Financial resources that are a kind of source of the capital and also their uses, (5)
Physical resources correspond to the equipment and their utilization, (6) Productivity
that is in relation to the proportionality between the resources and output, (7) Social
responsibility means to share the awareness as well as responsiveness to the
stakeholders, (8) Profit requirements that means the achievement related to the
financial as well as strategically growth from production.
P2) How can projects support the strategic objectives of an organisation?
The project always has to follow the primary goal of the organization. The primary
goal should be its strategic objective of the organization. If the organization wants to
develop a new type of product then the target of the product should focus only on
productivity of the organization. The project becomes a good efficient project while it
only focuses on a single goal and by using this technique it is easier to achieve the
target of the project. The initial focus of any project should be its scope then it
focuses on the planning phase of the project. To execute the project successfully,
the overall strategy is divided into smaller parts so that the execution way becomes
SPM1 planning sheet Page 2 of 11

SPM1.1 AC 1.02
Evaluate internal and external environmental factors that influence the
selection of a project that supports strategic objectives
SPM1 planning sheet Page 3 of 11

Introduction:
Selection of project is important in order to ensure the organisation conducts the
most profitable and beneficial project.
P1) What internal factors influence the selection of a project The SWOT
analysis is a typical framework that is used for the evaluation of the organization’s
strategic growth. SWOT analysis is the composition of some internal as well as
external factors. Every organization should use this analysis for the guidance
purpose. The four factors of this analysis are strengths, weaknesses, opportunities
and also threats. Strength is in relation to the characteristics of the project that
provides the advantages among the other factors. Weaknesses are such kind of
factors that is the sign of disadvantage for the organization. Opportunities are also
positive factors that related to the chances that the organization gets. Threats are
one of the negative signs of the analysis that can occur such problems in any
organization.
P2) What external factors influence the selection of a project The PEST
analysis is one kind of strategic industrial tool that is used for the evaluation,
arrangements as well as tracking the macro economic factors which reflects on the
business. This analysis determines opportunities as well as threats because if
Political, Economic, Social, Technological forces. Political factors are related in that
cases when the government interfere in the economical field. Economical factors are
related to the economical growth as well as exchange rates and interest rate etc.
Social factors are related to cultural aspects as well as rate of population growth etc.
The technological factors are related to technological aspects such as R&D activity
as well as rate of technological changing etc.
P3) How should project plans be amended when consideringSPM1 planning sheet Page 4 of 11