QUESTION 1 Cost-Benefit Analysis [52 MARKS]

1.1 The owners of Global Green Books Publishing have asked you to assist them with their project. They want to use the project management life cycle to conduct their project, but it seems that they want to start their project by estimating its costs.

You understand the project management life cycle and have decided that, for them to complete this project successfully, they need to understand the life cycle too.

Briefly discuss the project management life cycle stages by identifying each stage from the case study. (15)

1.2 The owners of Global Green Books Publishing understand the importance of the project management life cycle, and so they have set up a project scope. They have asked you to assist them with a cost-benefit analysis to analyse the financial viability of their project.

First, they require you to calculate the total production cost and the total profit of each unit sold. Then, discuss how team dynamics such as conflict management can affect the viability of the project in the case study.

Use the information provided to calculate the following:

  • The total cost for each task completed;
  • The total cost of internal labour;
  • The total cost of other expenses;
  • The total cost of production;
  • The total profit of if a 30% profit margin is applied. Use the following equation: Total cost of production x 30% = Profit per unit sold

Use the spreadsheet provided to complete this task.

Internal Labour Costs
Task Staff Rate per hour (including

overhead rate of 1.5)

Estimated hours

per task

Receive order Customer service


R18.00 1.00
Check order Customer service


R18.00 1.00
Verify order Customer service


R18.00 1.00
Plan work Supervisor R45.00 1.00
Assign work Supervisor R45.00 1.00
Estimation Supervisor R45.00 2.00
Reserve equipment Supervisor R45.00 1.00
Acquire permissions Publisher’s liaison R37.50 1.00
Desktop publishing DTP specialist R42.00 15.00
Content conversion DTP specialist R42.00 20.00
Produce e-book DTP specialist R42.00 25.00
Quality checks Quality technician R30.00 4.00
Track production Supervisor R45.00 3.00
Other Costs
Description Cost
Material costs of permissions R1,000.00
Equipment costs R1,000.00
Subcontractor labour R500.00
Computer support R500.00
Network infrastructure R1,000.00

1.3: After calculating the estimated costs and profits, complete the cost-benefit analysis tool and identify the various tangible and intangible costs and benefits of this project.

Costs or


Tangible Intangible

QUESTION 2 Project Risk Management and Project Implementation                 [26 MARKS]

 2.1: Samantha has taken a proactive approach to managing risk of the new projects at Global Green Books Publishing. Based on the case study provided, identify possible risks Samantha could face when embarking on this project. Then, discuss the areas of impact these risks could influence and how these areas are affected. (9)

2.2: Project risk can affect how the project is implemented. Briefly discuss the project implementation steps and discuss how project risk can influence the implementation of a project.

QUESTION 3                                                                                                                       [22 MARKS]

3.1: Global Green Books Publishing wants to develop its supervisors to be more effective leaders. Samantha has been appointed as the project manager and she has taken steps to develop some of the team members to become more effective leaders.

Discuss the characteristics project managers need to be successful. Then, identify the leadership qualities Samantha is exhibiting. (14)

3.2: Briefly discuss the ethical dilemmas Samantha might encounter when embarking on a project. (8)

Answers to Above Questions on Global Green Book Publishing

Answer 1.1:  A project has to go through different project management life cycle stages in order to achieve its successful completion. The important project management life cycle stages are initiation, planning, execution, monitoring/controlling and closing. The given project at Global Green books publishing also has to go through these important project management life cycle stages in order to ensure success. The application of each stage of project management life cycle to the above case study of Green Books Publishing is performed as follows:…..


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