The Significance of Project Management in the Business Environment

This report delves into the critical significance of project management within the modern business environment. It examines the essential role of project management in strategic planning, operational efficiency, and supply chain management. The report highlights the importance of forecasting and measurement as complementary components, discussing various forecasting methods such as trend analysis, cost-benefit analysis, and break-even analysis, while also emphasizing the significance of measurement in tracking project progress. Furthermore, it explores project performance objectives, including flexibility, dependability, speed, quality, and price, and how project managers utilize these factors to enhance project execution and delivery. The report underscores the need for adaptability, reliability, and effective communication to achieve project success, offering valuable insights into the practical application of project management principles.

Running head: SIGNIFICANCE OF PROJECT MANAGEMENT
Significance of Project Management in Business environment
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1SIGNIFICANCE OF PROJECT MANAGEMENT
Answer to question 1
Role of project management in modern business environment
In this new era of technology for adding value to products and make an entire business
environment advanced ahead project management plays an essential role. It enables or gives
opportunities to companies to plan strategically and innovating new things to strengthen the
economic backbone of modern business organization (Nicholas & Steyn, 2017). Project
management is referred to as a managerial practice that helps the business owners and the other
business associates to manage the entire business environment successfully by contributing
balanced input and earning sufficient output as well.
In order to keep the business activities within time, budget maintaining the quality as well
project management is essential. If this practice s not successfully maintained throughout the
business organizations to run their functional and operations then business may fail to reach the
objectives and client’s expectations as well (Uhl & Gollenia, 2016). Project management
includes identification of business requirement, setting clear business goals, balancing the
competing demands f the stakeholders etc. The modern business environment will become adrift
if it fails to identify organize the actual management approach and managerial structure that are
required to streamline the business operations. It is also recognized that PM impact the business
functions as well.
Impact of PM in operations
Project management impacts the business operations. In order to govern business
operations PM is very essential. It helps a business to deal with all its operations successfully.

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PM gives clear objectives to the business so that can develop an appropriate business goal,
design realistic operational planning, maximized the usage of resources and manage risks. Apart
from that PM also helps to provide quality outcomes for the business considering quality control
and quality monitoring activities (Aiyer, Panigrahi & Das, 2018). The operational expectations
of the stakeholders can be met and it gives opportunity to the business of achieving a desired
resultant.
Impact of PM in Supply chain management
Role of PM in supply chain is cannot be ignored. It helps to increase the existing supply
chain flexibility of an organization and make the flexibility upto hands on practitioner level.
Supply chain impacts the overall activities of supply chain management by improving business
sourcing, increasing manufacturing, making possible deliveries and also make the service and
product easy available to the clients.
Impact of PM in Strategic business planning
In order to develop strategic business plan PM becomes an important and essential
practice or tool. In order to run any business panning plays important role. This particular fact
exists because without an effective strategic business plan a business neither become competitive
nor earns commercial profit as well. There are different PM tools and techniques. For developing
specific strategy considering some of these tools also essential. PM helps to design project
planning followed by advanced strategies (Sato, 2017). Therefore, businesses become capable to
utilize maximum of resources without any wastages. Avoid issues of over allocation of budget
and over running time or delay as well. It helps to establish a clear link between the business and
the business objectives. It also supports the cross functional business team to work together.

3SIGNIFICANCE OF PROJECT MANAGEMENT
Answer to question 2
Forecasting and measurement are two complimentary components of project
management. In order to earn commercial success and to get competitive advantages in the
marketplace it is very essential to use forecasting and measuring while managing or
implementing any project. Project forecasting is important in project management because it
helps to track the product sales details in business functions and operations. Appropriate
forecasting helps to reduce the amount of unnecessary cost expenditure (La Rosa, 2016). It also
helps to avoid the issues of scheduling and staffs, avoids missing possible opportunities and
successfully manages the overall project cash flow. In other words, forecasting is important in
project management because it helps to develop better financial planning, improved the process
of project resource allocation and project staffing. It enhances the production management
approach and increases the target market.
In order to expand and boost up projects and to pursue other new projects forecasting
plays essential role. Project forecasting is referred to as a process used to conjecture the future of
the project. While developing any project it become responsibility of the project manager to not
to consider the current scenario but also to consider the upcoming situations as well. Forecasting
gives opportunities to the project associates to understand the future of a project that is whether it
is going to be beneficial for a long tern to the consumer or not. Apart from that, forecasting and
measuring helps the project managers to decide whether, the owners need to create the project or
not. Project forecasting is referred to as a statement on how the future can turn based on
assumptions and evidences (Batselier & Vanhoucke, 2017). In case of project management
forecasting involves analysis of data like performance history of any specific project. The
purpose of using project forecasting is to provide the project managers an update on how much

4SIGNIFICANCE OF PROJECT MANAGEMENT
profit the project can bring in the upcoming future. If in forecasting it is found that the project is
running unfavorable then project managers have the capability to stop the currently running
project. Another forecasting approach is available in terms of trend analysis. Trend analysis is
referred to as a very basic activity which involves historic data patterns and use the pattern
extrapolate the future of business project. Apart from that, cost benefit analysis is another
important forecasting method used while managing projects (Popescu, 2017). This type of
forecasting practice is calculated at the project beginning stage to decide whether the project
should be initiated or not. This is a project planning method involves a list of costs and possible
benefits that may generate from the project in future. Cost benefits analysis measures compares
the investment and the possible outcome that can generate after the successful completion of the
project. It is found that if a business is planning to run multiple numbers of projects then in order
to select the best project to continue with is selected with the help of cost benefit analysis. In
other words, this particular forecasting approach helps the project manager to decide or select the
best project. Break even analysis is another important forecasting method used in project
management. Break even project forecasting tool helps to calculate the project units which may
be sold to cover the project cost as a whole. The breakeven point is a forecasting point which
means that if a project fails to reach the breakeven point then the project will be considered as
not a profitable one. This project forecasting method helps the project manager to decide
whether the new project is commercial viable or not. In order to make enough profit whet
amount of profit can it change is also calculated with the help of this project forecasting method.
Measurement is also a part of project management. For managing projects more
accurately measurement plays essential role. The very basic initiation approach of project
management that is design and implementation of a project charter that is nothing but an initial

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measurement. A project charter measures the project aim, objectives, goals, major milestones,
budget, timeline, possible risks and quality management plan that the project team is going to
undertaken for managing the project after its initiation. Measurement is important to track and
compare a project status with the actual and planned (Meredith, Mantel Jr & Shafer, 2017).. If it
is found that, the planned measurement is far from the actual then either the project is stopped or
re-estimated before further progress. Measuring process helps to measure the project timeline,
resources and quality as well. In PM forecasting and measurement are very essential to use by
project managers.
Answer to question 3
In order to improve the project execution and project delivery the project managers
should use the project performance objectives efficiently. There are some performance
management factors widely used by the project managers to evaluate the vendors of the projects.
These factors are flexibility, dependability, speed, quality and price (Chemetova, Santos &
Ventim-Neves, 2017). Based on these five factors the project managers select their vendors for
successful delivery of projects. In order to improve project execution and project delivery project
manager utilizes these factors.
Flexibility
Flexibility is referred to as a key in project management to execute and deliver a project
in assigned time and budget without delay or over allocation issues. Project managers become
more consistent in organizing resources and workload if flexible project management
environment is given. Project managers can uniformly cater the peaks as well as channel in insist
and stagger the initiation dates of varied projects (Nusari et al., 2018). It helps to make the cash

6SIGNIFICANCE OF PROJECT MANAGEMENT
flow as well as schedule much consistent. It can be said that project management flexibility goes
further than simply adding time budget buffers into accounts for changes.
Instead it helps the project managers to focus on process flexibility to avoid resources and
other unexpected challenges. Flexible project planning helps the project managers to consider the
external events, allows them to verify the consumers very frequently and also helps to uncover
potential project risks and challenges (Kasemsap, 2018). Flexibility allows the project managers
to interact directly with the rest of the project team members before taking any project level
decision. It allows the project managers to adjust the project planning based on project
requirements and client’s feedback. Project managers can effectively monitor and update the
project status in report to let the sponsor know about the current situation of project.
Dependability
In order to execute and deliver any project it is very essential for the project managers to
arrange the project and divide into small segments to reduce the workload or work pressure. It
has been found that each of the project development active and dependent on each other,
Therefore, if one event failed to occur or execute on time then the entire project would fail to
meet the expectation of the consumers (Kivilä, Martinsuo & Vuorinen, 2017). In other words,
dependability is referred to as a quality that every project manager searches for the fellow team
members.
With the help dependability employees can keep focused on more essential activities like
development and growth as it helps to built trust within the workplace environment.
Dependability improves the team trust and ensures that all will work together as a team and
support each other whenever required (Lai, 2019). As the responsibilities get distributed it

7SIGNIFICANCE OF PROJECT MANAGEMENT
become easier to the project manger to handle a project and deliver it on time and budget
avoiding al potential issues and challenges (Kerzner, 2019). A dependable project manager leads
the project team successfully and gives them a clear direction to the project objectives.
Speed
Speed helps the project manager to deliver project on time within estimated budget and
timeline. Speed of a project manager speed up the delivery time and project execution time as
well. In order to avoid additional time, resource and cost requirement challenges the project
manager needs to have speed. It helps to create limits with the space and time. Faster delivery of
a project helps to gain competitive advantages, commercial profit and economic benefits as well.
It improves the rate of productivity and improved the overall performance of the project team
associates (Fleming & Koppelman, 2016). The sales growth percentages increases and the
strategic business goals become aligned to the project objectives. Infact the amount of Return on
Investment also gets improved a lot with this application.
Quality
Quality is the other performance objectives that are used by project manager to improve
the project execution and delivery approach. Quality time, scope and budget are the four most
essential components on which project managers are very much dependent. If the project team
successfully delivers a project with quality then it would be able to get a huge customer base and
competitive advantages as well (Kerzner, 2019). In order to maintain quality of a project, quality
control and quality assurance are two different aspects on which the project manager needs to
focus on.

8SIGNIFICANCE OF PROJECT MANAGEMENT
Cost
It is essential for the project manager to satisfy the customers with cost and timely
delivery of projects. It will help the project manager to contribute on long term profit and long
term sustainable revenue as well. The project cost is measured followed by feasibility analysis
and feasibility study to make sure that all the project development activities are successfully
maintained within the budget.

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