The town of Brighttown in Euraria has a mayor (elected every five years by the people in t

The town of Brighttown in Euraria has a mayor (elected every five years by the people in the town) who is responsible for, amongst other things, the transport policy of the town.

A year ago, the mayor (acting as project sponsor) instigated a ‘traffic lite’ project to reduce traffic congestion at traffic lights in the town. Rather than relying on fixed timings, he suggested that a system should be implemented which made the traffic lights sensitive to traffic flow. So, if a queue built up, then the lights would automatically change to green (go). The mayor suggested that this would have a number of benefits. Firstly, it would reduce harmful emissions at the areas near traffic lights and, secondly, it would improve the journey times for all vehicles, leading to drivers ‘being less stressed’. He also cited evidence from cities overseas where predictable journey times had been attractive to flexible companies who could set themselves up anywhere in the country. He felt that the new system would attract such companies to the town.

The Eurarian government has a transport regulation agency called OfRoad. Part of OfRoad’s responsibilities is to monitor transport investments and it was originally critical of the Brighttown ‘traffic lite’ project because the project’s benefits were intangible and lacked credibility. The business case did not include a quantitative cost/benefit analysis. OfRoad has itself published a benefits management process which classifies benefits in the following way.

Financial: A financial benefit can be confidently allocated in advance of the project. Thus if the investment will save $90,000 per year in staff costs then this is a financial benefit.

Quantifiable: A quantifiable benefit is a benefit where there is sufficient credible evidence to suggest, in advance, how much benefit will result from the project. This benefit may be financial or non-financial. For example, energy savings from a new building might be credibly predicted in advance. However, the exact amount of savings cannot be accurately forecast.

Measurable benefit: A measurable benefit is a benefit which can only be confidently assessed post-implementation, and so cannot be reliably predicted in advance. Increase in sales from a particular initiative is an example of a measurable benefit. Measurable benefits may either be financial or non-financial.

Observable benefit: An observable benefit is a benefit which a specific individual or group will decide, using agreed criteria, has been realised or not. Such benefits are usually non-financial. Improved staff morale might be an example of an observable benefit.

One month ago, the mayoral elections saw the election of a new mayor with a completely distinct transport policy with different objectives. She wishes to address traffic congestion by attracting commuters away from their cars and onto public transport. Part of her policy is a traffic light system which gives priority to buses. The town council owns the buses which operate in the town and they have invested heavily in buses which are comfortable and have significantly lower emissions than the conventional cars used by most people in the town. The new mayor wishes to improve the frequency, punctuality and convenience of these buses, so that they tempt people away from using their cars. This will require more buses and more bus crews, a requirement which the mayor presents as ‘being good for the unemployment rate in this town’. It will also help the bus service meet the punctuality service level which it published three years ago, but has never yet met. ‘A reduction in cars and an increase in buses will help us meet our target’, the mayor claims.

The mayor has also suggested a number of initiatives to discourage people from taking their cars into the town. She intends to sell two car parks for housing land (raising $325,000) and this will reduce car park capacity from 1,000 to 800 car spaces per day. She also intends to raise the daily parking fee from $3 to $4. Car park occupancy currently stands at 95% (it is difficult to achieve 100% for technical reasons) and the same occupancy rate is expected when the car park capacity is reduced.

The new mayor believes that her policy signals the fact that Brighttown is serious about its green credentials. ‘This’, she says, ‘will attract green consumers to come and live in our town and green companies to set up here. These companies and consumers will bring great benefit to our community.’ To emphasise this, she has set up a Go Green team to encourage green initiatives in the town.

The ‘traffic lite’ project to tackle congestion proposed by the former mayor is still in the development stage. The new mayor believes that this project can be modified to deliver her vision and still be ready on the date promised by her predecessor.


(a) A ‘terms of reference’ (project initiation document, project charter) was developed for the ‘traffic lite’ project to reduce traffic congestion.

Discuss what changes will have to be made to this ‘terms of reference’ (project initiation document, project charter) to reflect the new mayor’s vision of the project. (5 marks)

(b) The new mayor wishes to re-define the business case for the project, using the benefits categorisation suggested by OfRoad. Identify costs and benefits for the revised project, classifying each benefit using the guidance provided by OfRoad. (14 marks)

(c) Stakeholder management is the prime responsibility of the project manager.

Discuss the appropriate management of each of the following three stakeholders identified in the revised (modified) project.

(i) The new mayor;

(ii) OfRoad;

(iii) A private motorist in Brighttown who uses his vehicle to commute to his job in the town. (6 marks)


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  • 发布时间:2019-01-04
TMZ is a music company based in the developed country of Artazia. It was founded in 1963 when it started to sign emerging rock and roll artists to its record label. TMZ offers a contract in which the artists receive royalties based on the sales of their music. As part of this contract, TMZ record the music, distribute it and promote it. Most of the contracts are for a defined number of songs or records. For example, in 1980, TMZ contracted the heavy metal band, Vortex31, to produce ten albums, to be delivered over seven years. Extracted financial data for the period 1965–2000 is given in Table one. During these years TMZ successfully signed bands offering different and emerging types of music (pop, punk, garage, grunge, patio) and also successfully altered the physical media of distribution, from vinyl records to tape cassette and subsequently to compact disc (CD).Table one: Revenue and profit information: TMZ (1965–2000)The company remained profitable in this period, despite musicians taking longer to produce albums and senior management adopting a relaxed and indulgent approach to their creative artists.In 1999, the first file sharing company was formed in Artazia, allowing people to easily share their music files with each other. During the next decade, numerous file sharing and digital downloading companies were launched. As early as 2003, the possible implications of this growth in file sharing and digital downloading were highlighted by a number of employees in TMZ. However, senior management at TMZ were dismissive of this threat, suggesting that the contracts with their artists were ‘watertight’. Table two shows revenue and profit information for 2003–2007.Table two: revenue and profit information: TMZ (2003–2007)Senior management at TMZ believed that this decline in performance was due to them providing the ‘wrong music, promoted to the wrong people at the wrong price’. During this period the company signed new artists, increased advertising and cut prices. However, this did not halt its decline.Losses were also made in 2008 and 2009 and the company was only kept afloat by fresh injections of shareholder capital. During these years, the company took legal action against what they considered illegal downloading and file sharing. It won a number of small cases but its actions angered many music fans, who felt that music labels had been greedy in the past. It also upset some of its artists who now benefited from the opportunity the internet gave them to sell music directly to their fans.In 2009, a new CEO was appointed from outside the music industry. In 2010 he announced a new strategy. TMZ was no longer interested in contracting new artists to the label. Instead it would focus on deriving profit from its established artists and music catalogue. He came to licensing agreements with some large digital downloading operators and stores, allowing them to access or sell the music of established artists. However, he continued litigation against others. He also began to generate revenue from licensing the music for use in computer games, television advertisements and personalised ringtones.In 2011 the company reported a gross profit for the first time since 2005. In 2013 and 2014 it recorded a small net profit. The CEO stated that TMZ was now a ‘slimmer, fitter company. We are a learning organisation, developing the resilience needed to trade successfully in the ever-changing digital music age’. However, he warned that TMZ, like others in the industry, would continue to pursue actions against the illegal downloading of music. ‘There is a generation where many people consider music and all creative content should be free. However, we see signs that this assumption is becoming less widely held. The next generation is questioning it. Like many others, we continue to seek ways of distributing music which is fair to both the consumer and the artist. We are constantly monitoring trends and patterns in consumer behaviour. We will not get caught out like we were ten years ago. We won’t be fooled again!’Required: (a) Analyse the performance of TMZ from 1965 to the present. Include in your analysis reference to the principles and any evidence of strategic drift. (15 marks)(b) The current CEO claims that TMZ is a learning organisation. Discuss the principles of a learning organisation and its implications for TMZ. (5 marks)(c) Knowledge management is closely related to the concept of the learning organisation. Explain knowledge management and its relevance to TMZ. (5 marks)



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