1. You are the manager of a small resort in Central Queensland.The owners want to change the focus of the resort from a familydestination to an eco-tourism resort. The following projects havebeen identified for the resort. Classify each one as compliance,strategic or operational and give your reason for eachclassification.                                                                       

• Test and revise cyclone response plan
• Introduce wireless Internet service in café and loungeareas
• Redecorate and update the cabins
• Change all the resort brochures to reflect the eco-tourismimage

2. You are the project manager of a bathroom renovation project.You are managing a team of tradespeople. The work has commenced,but the customer has just heard about a new method for coveringdrains when tiling the floor that is much more aestheticallypleasing than just having an old fashioned metal drain. Thecustomer asks if you can do this instead. How wouldyourespond tothis request? Explain why you responded in this way.                   (2marks)

3. Using an example, explain what is meant by a “sunk cost” andexplain why it is difficult for people to ignore sunk costs. Shouldthey ignore sunk costs?Explain.                                                                                       

4. You have added the resource requirements to your projectschedule and have decided that you should try resource levelling.
   1. What is resource levelling and how do you perform resourcelevelling?
   2. Why would you want to perform resource levelling (what are thecircumstances)?
   3. What is the impact of resource levelling and what are the risksassociated with it?