2-2 Journal: Organizational Strategy and Project Selection Southern New Hampshire University QSO 640 Project Management 21TW3

2-2 Journal: Organizational Strategy and Project Selection Southern New Hampshire University QSO 640 Project Management 21TW3

2-2 Journal: Organizational Strategy and Project Selection Southern New Hampshire University QSO 640 Project Management 21TW3

Introduction Businesses and organizations worldwide use organizational strategies to make sure they stay on top of their specific competitors. They focus on projects that will help them gain profit and become competitive against other companies as well as adapting to environmental changes. When they go through with specific projects, they must keep these factors in mind to achieve success in their objectives and goals. Profitability When it comes to achieving profitability, the project must be in align with the company’s strategies. Understanding financial factors like return on investment, internal rate of return and the net present value can help make the decision whether a project is a good fit for the company. The return on investment is simply “the ratio of money gained (or lost) relative to the amount of money invested” (MindEdge, 2014). This will give the company a good idea if they will make back the money they initially invested and help make a decision if they want to pursue the project or not. The net present value is measuring what value the company has now and comparing it to the future cash flow. Lastly, the internal rate of return is where “the present value of net cash flows equals the net investment in the current period” (MindEdge, 2014). The