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MANAGING PROJECTS

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Projects represent nonroutine business activities that often have long-term strategic ramifications for a firm. In this chapter, we examined how projects differ from routine business activities and discussed the major phases of projects. We noted how environmental changes have resulted in increased attention being paid to projects and project management over the past decade. In the second half of the chapter, we introduced some basic tools that businesses can use when planning for and controlling projects. Both Gantt charts and network diagrams give managers a visual picture of how a project is going. Network diagrams have the added advantage of showing the precedence between activities, as well as the critical path(s). We wrapped up the chapter by showing how these concepts are embedded in inexpensive yet powerful software packages such as Microsoft Project. If you want to learn more about project management, we encourage you to take a look at the Web site for the Proj...
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Business Goals and Behaviour

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We have looked at a range of business goals. Some of these can be classified as aims and other objectives.
The ‘traditional’ (classical) assumption of profit maximization is one example of a financial objective or goal but increasingly other goals are becoming just as important.
Brand recognition or a well-developed set of policies to minimize the environmental impact of a business’ operations, for example, could be seen as being routes to generate increased sales and thus contribute to higher profits. The aim could still be profit maximization, the objective to help achieve this through promoting brand recognition or environmental responsibility.
Others might argue that brand recognition or social and environmental awareness is a long-term aim in itself.
Rather than be overly concerned with such distinctions, it is important to recognize that business goals are varied and dependent in part on the type of business and the type of business organization.
All these goals are interrelated and can be seen as being parts of a jigsaw. Ultimately, businesses in the private sector need to generate profits – they will have to close down if the business activities are unsustainable.
Of concern to the business economist, therefore, are the ways in which the stakeholder demands on business can be reconciled.
It is safe to say that it is unlikely that all stakeholder demands can be met so business owners have to balance these competing demands and find a way of carrying out business which maximizes overall benefits at minimum cost.
It is important to recognize that there will always be some cost involved in carrying out business and so regardless of the environmental, social and ethical claims of a firm, there will be some areas of operation where criticism can be levelled at the business’ activities. How these criticisms are managed is often a crucial part of the role of CEOs and managers.

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