【文章內(nèi)容簡介】 se of anizational resources ? Put strategic plan into practice ? READINGS…... Nov., 2023 Wanjun Jiang, Guanghua School of Management, Peking University II. Project Selection Nov., 2023 Wanjun Jiang, Guanghua School of Management, Peking University Project Selection ? Project selection is the process of evaluating individual project or groups of projects, and then choosing to implement some set of them so that the objectives of the parent be achieved. ? “Determining the right projects to pursue with the right people” Nov., 2023 Wanjun Jiang, Guanghua School of Management, Peking University Main points ? Types of project selection models ? Limitation, strengths, and weaknesses of project selection models Nov., 2023 Wanjun Jiang, Guanghua School of Management, Peking University 1 Criteria for project selection models ? Realism ? Capability ? Flexibility ? Ease to use ? Cost ? Easy to puterization Nov., 2023 Wanjun Jiang, Guanghua School of Management, Peking University 2 The nature of project selecting models ? Model do not make the decisions, people do ? All models,however sophisticated, are only partial representations of the reality they are meant to reflect. ? Meet the firm’s objectives: ? financial goals/nonfinancial goals Nov., 2023 Wanjun Jiang, Guanghua School of Management, Peking University ? A list of factors that contribute .’s objectives(goals)(MM: ): ? Production factors,18 ? Marketing factors,10 ? Financial factors,9 ? Personnel factors,10 ? Administrative and miscellaneous factors,14 Nov., 2023 Wanjun Jiang, Guanghua School of Management, Peking University ? Production factors ? time until ready to install ? length of disruption during installation/ degree of disruption during installation ? time until operating as desiredlearning curve ? efforts on waste and rejects ? energy requirement ? facility and other equipment requirement ? safety of process ? other application of technology ? consistency with current technological knowhow ? change in cost to produce a unit output /change in time to produce a unit output ? change in raw materials/availability of raw materials ? required development time and cost ? impact on current suppliers ? change in quality of output ? change in quality control procedures Nov., 2023 Wanjun Jiang, Guanghua School of Management, Peking University ? Marketing factors ? size of potential market for output ? probable market share of output ? time until market share is acquired ? impact on current product line ? ability to control quality ? consumer acceptance ? impact on consumer safety ? estimated life of output ? shape of life cycle curve ? spinoff project possibilities Nov., 2023 Wanjun Jiang, Guanghua School of Management, Peking University ? Financial factors ? profitability, present value of the investment ? impact on cash flow ? payout period ? cash requirement ? time until breakeven ? size of investment required ? impact on seasonal and cyclical fluctuations ? cost of getting system up to speed ? level of financial risk Nov., 2023 Wanjun Jiang, Guanghua School of Management, Peking University ? Personal factors ? training requirement ? labor skill requirement ? availability of required labor skills ? level of resistance from current workforce ? other worker reactions ? change in size of labor force ? change in sex, age, or racial distribution of labor force ? inter and intragroup munication reqirement ? support labor requirement ? impact on working conditions Nov., 2023 Wanjun Jiang, Guanghua School of Management, Peking University ? Administrative and miscellaneous factors ? meet government safety standards ? meet government environment standards ? impact on information system ? impact on puter usage ? need for consulting help, inside and outside ? reaction of stockholders and security markets ? patent and trade secret protection ? impact on image with customers, suppliers, and petitors ? cost of maintaining skill in new technology ? vulnerability to single supplier ? degree to which we understand new technology ? elegance of new process ? degree to which new process differs from current process ? managerial capacity to direct and control new process Nov., 2023 Wanjun Jiang, Guanghua School of Management, Peking University 3 Type of project selection models ? Nonnumeric models: the sacred cow。 the operating necessity。 the petitive necessity。 the product line extension。 parative benefit model ? Numeric models: Profit/profitabilitysingle goal。 Scoringmultigoals。 Nov., 2023 Wanjun Jiang, Guanghua School of Management, Pekin