A project manager is assigned to a yearlong project. Before the design phase starts, a competitor announces they will release a similar product in 8 months with fewer features. Which two actions should the project manager take next? (Choose two.)

The competitor's announcement introduces a significant external risk to the project's viability and market position. Discussing this with the project sponsor is crucial because they have the authority and strategic perspective to make informed decisions about the project's future direction, funding, or even cancellation. Evaluating the impact of incremental deliverables is also essential. This situation might necessitate a shift in strategy to deliver value sooner, even if it means fewer features initially, to compete effectively. This evaluation helps determine if an incremental approach is feasible and beneficial. Changing the project management plan to adopt an incremental approach immediately is premature without evaluating its impact and discussing it with the sponsor. Updating project artifacts is a consequence of decisions made, not an initial action. Reducing scope items of the final product is a potential solution, but it should stem from the evaluation and discussion, not be an immediate, isolated action.