The correct answer is to update the business case and present the revised benefits to the steering committee for a go/no-go decision. This is required because a competitor product release that reduces expected benefits fundamentally alters the project’s justification; the business case must be reassessed to reflect the new market reality and ensure continued strategic alignment. On the PMP exam, this scenario tests your understanding of benefits realization management and the project manager’s responsibility to escalate significant changes in expected value to governance. A common trap is to continue execution without re-evaluating the business case, or to unilaterally adjust the project scope. Remember the memory tip: “When benefits shrink, the case must rethink”—always update the business case before seeking a go/no-go decision from the steering committee.
PMP Practice Question: Business Environment: strategy and project benefits
This PMP practice question tests your understanding of business environment: strategy and project benefits. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A project manager is leading a project that is aligned with the organization's strategic goal to increase market share. However, during execution, a competitor releases a similar product, reducing the expected benefits. What should the project manager do?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Update the business case and present the revised benefits to the steering committee for a go/no-go decision.
Option C is correct because the project manager must reassess the business case when external market changes (like a competitor's product launch) reduce expected benefits. Updating the business case with revised benefits and presenting it to the steering committee ensures an informed go/no-go decision based on current strategic alignment and value, as per PMBOK Guide's business case management and benefits realization processes.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Immediately stop the project to avoid further losses.
Why it's wrong here
A decision should be based on updated analysis, not panic.
✗
Continue the project as planned because the strategic goal has not changed.
Why it's wrong here
The reduced benefits may no longer justify the investment.
✓
Update the business case and present the revised benefits to the steering committee for a go/no-go decision.
Why this is correct
Keeping stakeholders informed of changes in business value supports informed decision-making.
Related concept
Read the scenario before looking for a memorised answer.
✗
Add more features to differentiate the product from the competitor's.
Why it's wrong here
Changes must go through formal change control and be evaluated for impact.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may assume the strategic goal is fixed and ignore the need to reassess benefits when external factors change, leading them to choose Option B (continue as planned) instead of updating the business case for a governance decision.
Detailed technical explanation
How to think about this question
The business case is a living document that should be updated when assumptions change, such as competitor actions affecting market share projections. The steering committee (or governance board) uses the updated business case to perform a cost-benefit analysis and decide whether to continue, pause, or terminate the project. This aligns with the PMBOK Guide's 'Business Documents' and 'Benefits Management Plan' processes, ensuring the project remains viable against the organization's strategic objectives.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the PMP exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this PMP question in full detail.
Business Environment: strategy and project benefits — This question tests Business Environment: strategy and project benefits — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Update the business case and present the revised benefits to the steering committee for a go/no-go decision. — Option C is correct because the project manager must reassess the business case when external market changes (like a competitor's product launch) reduce expected benefits. Updating the business case with revised benefits and presenting it to the steering committee ensures an informed go/no-go decision based on current strategic alignment and value, as per PMBOK Guide's business case management and benefits realization processes.
What should I do if I get this PMP question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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