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CAPM Practice: Demonstrate an understanding of the various project life cycles and processes

Question 38 of 95 in Demonstrate an understanding of the various project life cycles and processes

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Halima Calloway is reviewing how projects serve as vehicles for organizational change at Kilowatt Power. Match each project outcome on the left with the type of change it enables on the right. Items: 1. Implementing a new enterprise resource planning system 2. Launching a new product line in a different market 3. Restructuring the organization into cross-functional teams 4. Adopting cloud-based collaboration tools across the company Which option correctly matches each item to its description?
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Correct answer: 1. Implementing a new enterprise resource planning system → Process change - transforming how work is performed 2. Launching a new product line in a different market → Strategic change - entering new business areas 3. Restructuring the organization into cross-functional teams → Structural change - modifying organizational design 4. Adopting cloud-based collaboration tools across the company → Technological change - adopting new systems and tools

Explanation

Projects are vehicles for change in organizations. An ERP system transforms business processes; launching a new product line represents strategic expansion; restructuring changes organizational design; and adopting new collaboration tools represents technological advancement. Each project type enables a specific category of organizational change.

**Why not A:** This option incorrectly classifies ERP implementation as structural change and organizational restructuring as process change. Implementing an ERP system transforms how business processes are performed (process change), while restructuring into cross-functional teams modifies organizational design (structural change). These two classifications are swapped.

**Why not B:** This option incorrectly classifies ERP implementation as strategic change and launching a new product line as structural change. Entering a new market is a strategic move, not a structural one, and implementing an ERP system transforms business processes, not the organization's strategic direction. Multiple pairings are wrong.

**Why not C:** This option incorrectly classifies ERP implementation as technological change, when an ERP primarily transforms business processes rather than just adopting technology. While ERP is technology, its organizational impact is process transformation. It also incorrectly classifies cloud tool adoption as process change rather than technological change.

Key Concept

This question covers Demonstrate an understanding of the various project life cycles and processes under Demonstrate an understanding of the various project life cycles and processes (Project Management Fundamentals and Core Concepts).

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