PMP Guide — Empowering Project Managers
Business EnvironmentPredictiveMediumECO: Business Environment Task 2: Evaluate and deliver project benefits and value

PMP Practice Question: Business Environment — Predictive, Medium

A manufacturing company is executing a predictive project to expand production capacity. Midway through the project, economic indicators show that the industry is entering a downturn, with projected demand decreasing by 15% over the next two years. The CFO has asked all departments to reduce discretionary spending. The project is currently on schedule and 5% under budget. The project sponsor believes the expansion is still strategically important for long-term competitiveness but asks the project manager to evaluate options for reducing project costs. What should the project manager do FIRST?

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