Both methods have their advantages and limitations. The divergence is mainly caused by the fact that the methods used in the case were insufficient to decide on the attractiveness of the projects. Moreover, as described in the chapter concerning the situation of pharmaceutical companies, more specific subcriteria could be used to make the scoring model more accurate.
Finally, Nova Western should develop an enhanced screening model to take into account both methods and some additional criteria.
Table 1 provides the following information about the strengths and weaknesses of both non-financial and financial methods.
Table 1. Strengths and Weaknesses of screening methods Method | Strengths | Weaknesses | Scoring model …show more content…
Furthermore, the case suggests us to use different types of project selection methods such as numeric and non-numeric ones. This will help to consider the proposed projects from different points of view (Pinto, 2010). For example, from the NPV analysis the reader can see that the directors of Nova Western can easily check on the feasibility of the proposed projects. On the other side, the scoring model evaluates the projects through weighting the categories, which are the most important for the organization (An Introduction to Project Selection Techniques, 2010). The best solution to the contradictions appeared in the case would be to add the net present value to the scoring model as one of the selection categories. This means that the results of the discounted cash flow analysis will be weighted and scored together with the other categories. In this case the results of the scoring analysis will be strongly affected, and probably the project Janus will get the higher score (Pinto, 2010).
Project Selection Methods. (2012). Retrieved December 6, 2012 from Tutorialspoint: www.tutorialspoint.com/management_concepts/project_selection_method.html
This is a small academic article, which talks about the theoretical part of the project selection methods.
Pinto, J. K. (2010). Project Management: Achieving Competitive Advantage. Prentice Hall.
Chapter 3 "Project Selection and