PMP · Question #59
A regulatory branch of an environmental government agency has recently placed a ban on the manufacturing of a specified thickness of plastic packaging products. This ban will take effect in 12 months.
The correct answer is D. Inform management of the new law as an opportunity to expand market share and share the. Recognizing a new regulation as an opportunity, the project manager should immediately inform management and propose strategies to leverage the market shift.
Question
A regulatory branch of an environmental government agency has recently placed a ban on the manufacturing of a specified thickness of plastic packaging products. This ban will take effect in 12 months. The project manager for a startup firm working in alternative packaging has been monitoring the progress of this law for a while and, as part of the risk management, has identified new products that can support a growing customer base. What should the project manager do next?
Options
- ABegin a marketing campaign to sell alternative packaging after the 12-month period ends
- BOrganize a meeting with all stakeholders and review the stakeholder engagement plan
- CContinue production processes and plan to discuss changes at the next annual target review
- DInform management of the new law as an opportunity to expand market share and share the
How the community answered
(37 responses)- A8% (3)
- B16% (6)
- C3% (1)
- D73% (27)
Why each option
Recognizing a new regulation as an opportunity, the project manager should immediately inform management and propose strategies to leverage the market shift.
Waiting until the ban takes effect to begin marketing is a delayed, reactive approach that misses the opportunity for early market penetration and strategic positioning.
While stakeholder engagement is important, "reviewing the stakeholder engagement plan" is a general process and not the direct, immediate action needed to seize a time-sensitive market opportunity stemming from a regulatory change.
Continuing current production processes without immediate adaptation to a looming ban and waiting for an annual review ignores a critical and time-sensitive market shift, risking missed opportunities or future compliance issues.
The project manager has identified a significant external factor (the ban) that creates a market opportunity for the firm's alternative packaging products. The next crucial step is to communicate this strategic insight to management, presenting it as an opportunity to expand market share and outlining the identified products to capitalize on the upcoming regulatory change. This proactive communication enables strategic decision-making and resource allocation.
Concept tested: Risk/Opportunity management and strategic communication
Source: https://www.pmi.org/learning/library/risk-management-strategies-project-success-10657
Topics
Community Discussion
3D is correct because the PM already identified this regulatory change during risk monitoring, so the next move is escalating the opportunity to management. This is a positive risk, an opportunity, and the PMs job is to communicate upside potential so leadership can decide on strategic direction. A jumps the gun since you need approval before launching campaigns, and B is premature when the real value here is a business decision about market expansion.
I first leaned toward B because engaging stakeholders around a regulatory change sounded reasonable, but the stem says the PM has already been monitoring this and identified the new products. That means the real next step is bringing the opportunity upstream to management so they can act on it, which points straight to D.
Agreed, D is correct here. The PM already identified this risk and did the analysis, so the next step is communicating the opportunity to management so they can act on it. A is premature because you need the go decision first, and B skips the step of getting leadership alignment before updating how you engage stakeholders. Saw this one on my exam last month and the key was recognizing that a monitored risk turning into a real opportunity needs to be escalated, not just logged.