A project manager is leading a predictive ERP implementation project for a retail organization. The project is structured with a detailed WBS, approved baseline, and stage-gate governance. During the design phase, the organization acquires a competitor with 40 retail locations, increasing the company size by 35%. The integration team requests that the ERP project expand scope to include the acquired locations, which would require additional modules, data migration from legacy systems, and extended training. The business case ROI was calculated based on the original organization size. Executive leadership wants to know whether to expand this project's scope or manage the acquisition locations through a separate integration project. What is the most important factor the project manager should analyze in formulating a recommendation?

Question

Accepted Answer

The correct answer is B. When determining whether to expand project scope or create a separate project following an acquisition, the critical analysis factor is understanding the interdependencies between the ERP deployment and the broader acquisition integration program (legal entity consolidation, process harmonization, organizational design, customer data integration, etc.). These dependencies determine optimal sequencing—for example, if organizational structure must be finalized before ERP design, or if certain legacy systems must remain operational during transition periods, separate projects with defined interfaces may be necessary regardless of cost efficiency. Option C addresses important economic factors but is not the most critical determinant—dependency analysis must come first because it constrains the viable options. Poor sequencing due to unmanaged dependencies can destroy value regardless of cost efficiency. Option A focuses too narrowly on resource capacity rather than systemic integration factors. Option D examines governance mechanics rather than the substantive business and technical factors that should drive the decision. The hard difficulty involves recognizing that integration dependencies are the primary constraint that determines project structure options.

PMP Practice Question: Business Environment — Predictive, Hard

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