Selecting projects by evaluating them one by one as they arise should be avoided. Projects should be managed in an integrated portfolio and they sould all be compared with one another.
The projects can basically be divided up into qualitative, quantitative and mixed criteria
Strategic criteria:
- Company's strategic vision or aim
- Product-market focus: business areas in which we want to be involved
- Reinforcement of essential competencies
- SWOT
- Porter's five-forces model
- Decision tables
- Financial criteria
- Zero-base budgeting: simple and effective
- Other restrictions: analysis of capacity
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