Organizations typically undertake projects because of the following:
- Response to competition: The organization wants to create a product that will compete with the competition, intends to have a share in one of the competitions market, or is afraid that the competition will come up with a hot product before it (the organization) does.
- Response to customers: The organization is undertaking a project because of a customer's request. The request can be formal and direct, for example, the client is paying money for the company to develop a product for him, or (in case of an indirect request) the customer is a user of one of the company's products and is suggesting some changes (both scenarios are very relevant to service related companies, the latter example is relevant to the automotive industry).
- Expansion: The organization wants to expand into new territories in order to expand its business and enter new markets.
- Direct profit: The organization sees a direct profit from undertaking the project. Direct profit is the reason of why most (if not all) construction projects are undetaken.