1. Two projects have identical NPV values
One has a probability of technical success of 60% and a probability of commercial success of 80%.
The second project has a probability of technical success of 80% and a probability of commercial success of 60%
Which project is better or are they the same? Explain your answer.
2. You are trying to do a SWOT analysis of a competitor.
Give two examples of a company's strength that can be seen by outsiders.
Give two examples of a company's weakness that can be seen by outsiders.
b. In doing a SWOT analysis of a company, a self-confident management is usually strength. However, an arrogant management team is usually a weakness. Yet you may view my self-confidence as arrogance. How can you tell the difference?
See attachment on SWOT Analysis
3. How could a SWOT analysis help decide what functions of the company to outsource, either for all products or just one project?
4. If one of the weaknesses of the company is lack of the right expertise in a certain technical area, what options would the company have to correct this in a short time and over a longer ( ~1 year or more) time frame?
1. In a situation of this nature it would appear that both projects are the same or equal, largely due to the fact that the NPV value of each of these projects is identical, meaning that the ratio of incoming cash flow and outgoing cash flow value is at the same level. Another reason that the projects are the same in respect to value is the fact that one of the projects has a 20% advantage in the probability of technical success, and one of the projects has a 20% advantage in the probability of commercial success. Due to the fact that technical success and commercial success are very important indicators and prerequisites for the overall success of a given project, these differentials in technical and commercial success will serve to enhance the equality of these two projects as well.
2. Two examples of ...