PMP Business Environment — Strategy and Value Practice Question
A project manager is leading a project to develop a new electric vehicle for a company whose strategic goal is to become the market leader in sustainable transportation. During a review, the project manager discovers that a key supplier will be unable to meet the required battery specifications, which could delay the project by six months. The project manager must decide how to handle this issue while ensuring alignment with the strategic goal. What should the project manager do first?
⚠ Common exam trap
The trap here is assuming that escalating immediately or waiting for the supplier is the best first step, when in fact the project manager should proactively analyze alternatives to ensure strategic alignment.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Conduct a cost-benefit analysis to evaluate alternative suppliers and their impact on the project's strategic benefits.
The project manager should first conduct a cost-benefit analysis to assess alternative suppliers. This approach ensures that the decision is based on data and aligns with the strategic goal of sustainable transportation. By evaluating options, the project manager can determine the best course of action to minimize delays and maximize value. Escalating or waiting passively does not address the root issue or ensure strategic alignment.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Ask the supplier to provide a detailed root cause analysis and wait for their corrective action plan.
Why it's wrong here
While understanding the root cause is useful, waiting for the supplier's corrective action plan may not be sufficient. The project manager must proactively explore alternatives to ensure the project remains aligned with the strategic goal. Depending solely on the supplier could result in further delays and jeopardize the project's benefits. The project manager should take initiative to evaluate options and drive the decision-making process.
- ✓
Conduct a cost-benefit analysis to evaluate alternative suppliers and their impact on the project's strategic benefits.
Why this is correct
Conducting a cost-benefit analysis allows the project manager to compare alternative suppliers based on cost, schedule, and alignment with the strategic goal of sustainable transportation. This analysis provides data to make an informed decision that maximizes value. It also ensures that the project continues to deliver the intended benefits despite the supplier issue. This step is crucial before escalating or making changes, as it directly supports strategic alignment and value delivery.
- ✗
Update the risk register with the supplier issue and continue with the current plan to avoid disruption.
Why it's wrong here
Updating the risk register is important, but continuing with the current plan ignores the potential six-month delay and its impact on the strategic goal. The project manager must actively address the issue rather than just documenting it. Proceeding without mitigation could lead to failure in achieving the strategic objective. The project manager should evaluate alternatives and take corrective action, not simply record the risk and hope for the best.
- ✗
Escalate the issue to the project sponsor and request additional funding to find an alternative supplier.
Why it's wrong here
Escalating immediately without assessing the impact on the strategic goal may be premature. The project manager should first evaluate how the delay affects the benefits and value expected from the project. Requesting additional funding might not be necessary if alternative solutions exist. The project manager should gather more information before involving the sponsor, ensuring that any escalation includes a clear analysis of options and recommendations aligned with the strategic objective.
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Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official PMI exam blueprint
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