PFMP · Question #713
Assume as the portfolio manager you have conducted a stakeholder analysis, gap analysis, and a readiness analysis as your cereal company is now entering the ice cream market. A team was formed and…
The correct answer is B. Change the prioritization model. After strategic analyses and a board-approved decision to enter a new market, the portfolio prioritization model must be updated to reflect the new strategic direction.
Question
Assume as the portfolio manager you have conducted a stakeholder analysis, gap analysis, and a readiness analysis as your cereal company is now entering the ice cream market. A team was formed and located off site to determine whether this market was one in which your company could compete, and its recommendation to do so was accepted by the Portfolio Review Board. Now you need to:
Options
- AAcquire resources to support the new line of ice cream products
- BChange the prioritization model
- CDevelop a communications strategy for use internally and also externally
- DSet completely new performance metrics for all products
How the community answered
(13 responses)- A8% (1)
- B85% (11)
- D8% (1)
Why each option
After strategic analyses and a board-approved decision to enter a new market, the portfolio prioritization model must be updated to reflect the new strategic direction.
Acquiring resources is a tactical step that comes after the portfolio structure and prioritization have been updated to accommodate the new market.
When a company enters a new market like ice cream, the strategic context of the portfolio changes significantly, requiring the prioritization model to be revised so that new components can be evaluated and ranked in alignment with the updated strategy. Changing the prioritization model ensures that all portfolio decisions - including resource allocation and sequencing - reflect the organization's new competitive direction.
Developing a communications strategy is important but is not the immediate next step following board approval of a new market entry.
Setting entirely new performance metrics for all products is too broad; only the prioritization model needs updating at this stage to incorporate the new strategic direction.
Concept tested: Portfolio prioritization model update after strategic change
Source: https://www.pmi.org/pmbok-guide-standards/foundational/standard-for-portfolio-management
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