What elements of the marketplace in which Mega-

Tech operates led the firm to believe that project management would improve its operations? MegaTech, Inc. designs and manufactures automotive components. For years, the company enjoyed a stable marketplace, a small but loyal group of customers, and a relatively predictable environment. Though slow, annual sales continued to grow until recently hitting

$300 million. MegaTech products were popular because they required little major updating or yearly redesign.

The stability of its market, coupled with the consistency of its product, allowed MegaTech to forecast annual demand accurately, to rely on production runs with long lead times, and to concentrate on internal efficiency.

However, with the advent of the North American Free Trade Agreement (NAFTA) and other international trade agreements, MegaTech found itself competing with auto parts suppliers headquartered in countries around the world. The company was thrust into an unfamiliar position: it had to become customer-focused and quicker to market with innovative products. Facing these tremendous commercial challenges, top management at MegaTech decided to recreate the company as a project-based organization.