Project Initiation Method - RFP Selection Process

RFP Selection Process

Question

A company has updated the method it uses to initiate projects.

The company requires RFPs from three vendors, and low and high bids must be rejected to determine the selected vendor.

Which of the following terms describe this requirement?

Answers

Explanations

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A. B. C. D.

A.

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The term that best describes the company's updated method for initiating projects is "Business process change" (Option C).

Business process change refers to the modification or transformation of an organization's processes, procedures, or systems in order to enhance performance, productivity, and profitability. In this case, the company has changed the process it uses to initiate projects, specifically by requiring RFPs from three vendors and rejecting low and high bids to determine the selected vendor. This change aims to improve the company's decision-making process and ensure that it selects the best vendor for its projects.

Outsourcing (Option A) is a business practice in which an organization hires another company or individual to perform services or produce goods that were previously performed in-house. While the updated method for initiating projects may involve outsourcing, this term does not fully capture the scope of the change.

Business acquisition (Option B) refers to the process of acquiring another business or company. This term is not relevant to the situation described in the question.

Internal reorganization (Option D) involves changes made to the internal structure or organization of a company. While the updated method for initiating projects may require changes to the company's internal processes or systems, the term "internal reorganization" does not fully describe the specific change that has been made.

Therefore, the most appropriate term to describe the change that the company has made in its project initiation process is "Business process change."