DDD has just issued a profit forecast in connection with a proposed take-over of a business. The take-over is strongly opposed by the target company. DDD’s Management Accountant played a large part in helping DDD’s Finance Director prepare the profit forecast. However, the Management Accountant believes that the profit forecast is overly optimistic and is based on some false assumptions. As a result the Management Accountant thinks the profit forecast is misleading. Select THREE of the actions below which are consistent with CIMA’s Code of Ethics.
- A . The Management Accountant should follow established internal procedures.
- B . The Management Accountant should obtain advice from his professional body/bodies.
- C . The Management Accountant should resign from his job.
- D . The Management Accountant should maintain a discreet silence.
- E . The Management Accountant should anonymously inform the media of his concerns.
- F . The Management Accountant should publicly accuse the Finance Director of issuing a misleading profit forecast.
BBB is a publisher. As a consequence of BBB using the Internet to outsource its typesetting and studio activities it has been able to move its few remaining staff into much smaller and less expensive office accommodation.
Which activity in Porter’s Value Chain has benefitted from BBB’s use of information systems?
- A . Infrastructure
- B . HR management
- C . Sales and marketing
- D . Outbound logistics
LLL is a travel company which has experienced rapid organic growth. It has three divisions and each division is led by a Divisional Director. Each Divisional Director is responsible for their own divisions’ investment in Information Technology (IT). However, as LLL has grown, so has its information requirements.
Recently, LLL appointed an IT Manager. She discovered that within LLL’s divisions, there are very different standards for IT, resulting in different hardware and software used in the three divisions. Also, the divisions do not use common software packages which causes difficulties in transferring information within LLL. LLL does not have a central IT department.
Which of the following activities would be the primary focus of an Information Systems (IS) Strategy for LLL?
- A . Identification of the information needs of LLL’s customers and key stakeholders.
- B . Identification of management responsibilities and processes within LLL.
- C . Identification of what information is needed by LLL to enable it to achieve its overall business strategy.
- D . Identification of the hardware and software required to manage all of the information within LLL.
YYY is a profit-seeking provider of television channels. It broadcasts to some 55 countries using satellite and cable technologies. It also commissions and produces about 30% of the programs it broadcasts, to give it a unique competitive advantage against other broadcasters.
Web 2.0 provides new opportunities for YYY and it has developed a strong social media component to its programming schedules to increase audience engagement.
Keeping YYY’s divisions working together is crucial to its success as a business.
Which of the following methods of divisional Performance Measurement would you recommend to YYY?
- A . Kaplan and Norton’s Balanced Scorecard
- B . Lynch and Cross’s Performance Pyramid
- C . Stern Stewart’s Economic Value Added (EVA)
- D . Rappaport’s Shareholder Value Analysis (SVA)
Company LL is a well established, reputable company which specialises in providing insurance call centre services to the insurance industry. It has recently won a large contract to provide its services to a multi-national insurer. LL’s staff are highly trained in insurance matters and many have worked for LL for many years.
LL undertakes long-term resource planning activities and has identified that during the winter months, when there will be more customers ringing up to make insurance claims, it will potentially need to employ more staff. The Board has decided that rather than recruit its own staff, it will use an employment agency to supply manpower resources as required. The people supplied will be employed on a temporary basis by LL and they will work alongside the other call centre staff. However, they will work at a lower pay rate and will only be paid for the actual hours they work.
This change will lead to a shift in the working environment, the routine and the composition of the group.
Which THREE statements apply in respect of this proposed change?
- A . The proposed change will affect the group dynamics, which can be seen as being similar to a ‘force field’ situation.
- B . In times of change, LL can give sensitivity training to this group of workers who can then be used as a source of support during the change process.
- C . A Facilitator, as the leader of change, will allow the group to talk about their issues and concerns with this change in a formal and structured manner.
- D . As the change process LL is proposing is an internal matter involving a group of its staff, there is no need to undertake a stakeholder analysis.
- E . LL will need to identify the Adversaries in the group, because if they are influential they may persuade other group members to resist the change.
DRAG DROP
DDD is a company which publishes paper-based books. In the last 10 years DDD has seen a steady decline in its sales. Last month, one of its major customers, a large chain of high street bookshops announced that it would be closing as a result in declining sales in the paper-based book market. The Board of DDD has therefore announced that in order to survive, it must re-focus the business upon the developement of electronic books, which will require a significant investment in new technology and staff training. However, some staff will be made redundant as part of this process. The Board of DDD has stated that it will reward staff who actively embrace the change process.
Which of the activities below would occur within the ‘Unfreeze’, ‘Change’ or ‘Refreeze’ stage of Lewin’s three-stage model?
Which THREE statements about scenario planning are correct?
- A . It tells management what will happen so they are able to plan for it.
- B . It tells management what needs to be done to make theOrganizationsuccessful in the future.
- C . It encourages creative thinking by the participants.
- D . It alerts management to the possibility of fundamental change in the environment.
- E . It encourages management to communicate their personal knowledge of trends.
LLL is considering entering Country B to sell its zero emissions car.
LLL has invested heavily in fuel cell technology for its car. It does not rely on any polluting fuels for its energy. This means that LLL’s car is the only true zero emissions car.
Research conducted in Country B for LLL has revealed the following:
• Country B’s Government is concerned that all forms of pollution have risen to dangerous levels.
• Despite being worried about pollution the Government of Country B has not yet adopted taxation policies to encourage the use of low pollution cars.
• Drivers choosing a car continue to rank the speed and appearance of a car very much high er than its impact on environmental pollution.
• About 2% of motorists own an electric or hybrid powered car.
• A high rate of sales tax levied on the price of new cars in Country B encourages motorists to continue to drive older, more polluting, cars.
LLL recognises that it needs to plan its strategy for Country B over the long-term.
Which THREE of the following strategies would you advise LLL to use to build its long-term sales in Country B?
- A . Meet relevant members of the government of Country B to present the value of including emissions from electricity generating stations in their calculation of vehicle pollution to help
reduce pollution. - B . Sponsor environmental groups in Country B to launch a campaign to take older cars off the road by calling on government to reduce the sales tax on new cars according to its emissions.
- C . Try to win the affection of motorists by donating funds to campaigns that resist attempts by the government to impose taxes on cars, according to the pollution they generate.
- D . Approach government lawyers in Country B and offer to engage them as paid consultants in exchange for their help in drafting taxation legislation that favours zero emission cars.
- E . Provide schools and colleges with pre-prepared lesson resources that teach the science behind fuel cell technology and why it leads to zero emissions.
You are a Management Accountant working for anOrganizationthat includes commitments to ‘sustainability’ in its mission statement.
Which THREE of the following are contributions that a Management Accountant can make to the achievement of this part of the Organization’s mission statement?
- A . Integrated reporting of the triple bottom line of Profits, People and Planet.
- B . Measures ofOrganization’s use of non-renewable resources and environmental emissions.
- C . Project evaluations that include the externalities as well as the cash costs.
- D . Ensuring theOrganizationadopts the lowest cost technologies and suppliers.
- E . Providing financial information with all non-recurring expenditures and incomes removed.
As a qualified Management Accountant you have been asked by a non-financial manager to explain the CEO’s recent comments, featured in the CEO’s regular update to investors and analysts.
The CEO’s update suggested the company, an established property development business, was about to pursue an exciting strategy. The strategy is to focus on conglomerate diversification, to be achieved through a number of pre-identified acquisitions, with the aim of significantly increasing shareholder value.
Which of the following statements is consistent with the concept of conglomerate diversification?
- A . A strategy involving business expansion within a company’s present industry. For this company, an example would be the acquisition of another property development business.
- B . A structure involving a collection of unrelated businesses. For this company, acquisitions may include a variety of companies such as financial services and food retailing, all sharing operational relationships such as finance, sales and marketing.
- C . A portfolio of unrelated businesses such as financial services, food retailing and property development, all sharing identity and risk, including group logo, corporate uniforms and risk management systems.
- D . A portfolio of businesses involved in unrelated activities such as financial services, food retailing and property development, sharing nothing but a parent company.
DRAG DROP
Mendelow developed a matrix in which he characterised stakeholders by reference to their degree of power and level of interest.
Place the correct category against each of the classes of stakeholders.
RRR is a state-funded hospital serving a major city. It is under political pressure to reduce the waiting times of patients requiring surgical operations who need to stay at the hospital for several nights. The doctors blame a lack of bed spaces and are calling for more investment in extra beds.
You have been conducting some research into the problem and have discovered the following problems affecting the utilisation of the existing beds at RRR:
• many patients stay extra nights due to lack of communication with the health professionals needed to monitor the patients at home
• beds are left empty each day when patients miss their admission date but there are no proc esses to inform other patients to offer them the space
• patients are admitted on days when there are no spaces available on the special equipmen t needed to treat their particular condition
Which THREE linkages between Primary Activities in the Value Chain of RRR need to be improved to provide extra bed spaces at RRR?
- A . Between outbound logistics and service.
- B . Between inbound logistics and marketing and sales.
- C . Between inbound logistics and operations.
- D . Between inbound logistics and outbound logistics.
- E . Between inbound logistics and technology development.
Which TWO of the following statements are NOT characteristics of a robust ‘coaching climate’?
- A . Personal growth, team development and Organizational learning are integrated.
- B . Coaching is seen primarily as an opportunity to be proactive rather than reactive.
- C . People are able to engage in destructive confrontation.
- D . Time for reflection takes place only out of office hours.
- E . People are recognised and rewarded for sharing knowledge.
T is a management consultant. He was recently contracted by company XYZ to act as an external Change Agent in aprogramof change being undertaken. T’s first task was to assist XYZ in clearly defining the outcomes of the changeprogramand ensure that these were achievable. T also set up a number of change teams and led several workshops and team building exercises. Many of XYZ’s staff were resistant to the changeprogram.
Therefore, T had to ensure that he created an appropriate vision for the change and was able to resolve any conflict which occurred during the changeprogram.
Which THREE of the following are the key skills of a Change Agent demonstrated by T?
- A . Goal Setting
- B . Negotiation skills
- C . Independence
- D . Role Setting
- E . Managing up
Which of the following statements would encourage anOrganizationto use Scenario Planning?
Select ALL that apply.
- A . Uncertainty in the industry is high, relative to management’s ability to predict or adjust to change.
- B . Competitor’s are increasingly using Scenario Planning as part of their strategy formulation process.
- C . TheOrganizationhas not previously experienced any major surprises or expensive strategic mistakes.
- D . TheOrganizationhas achieved all of its objectives and operates within a stable external environment.
- E . TheOrganizationoften experiences ‘group-think’, leading to a narrow view of the future.
A leading supermarket chain is undertaking environmental scanning as it is concerned that it is becoming uncompetitive and profits have started to fall. The Board is concerned that when the next Annual General Meeting is held, it will need to have a viable strategy to present to its shareholders, in order to prevent shareholders’ protests.
In the past the company has been reluctant to offer an Internet shopping
service. However, it now believes that by offering this service and also introducing customer relationship marketing (CRM) this will produce a strategy that will help it to improve its competitiveness.
Which of the following statements apply to CRM? Select ALL that apply.
- A . CRM utilises marketing resources to retain, rather than simply attract new customers.
- B . The company must be prepared to take customers’ needs into account and be able to meet these needs.
- C . In mature markets, existing customers provide the most likely source of future earnings.
- D . CRM is about marketing to customers to obtain their loyalty, so customer research is not needed.
- E . The CRM process needs to include increasing the range of products that will be offered to customers.
HHH is about to undergo a period of significant change. HHH intends to draw upon the model suggested by Beer and Nohria, concerning ‘Theory E’ and ‘Theory O’. In which circumstances should HHH use ‘Theory O’ strategies? Select ALL that apply.
- A . Change which will involve cultural adjustments.
- B . Change where there is a desire to involve employees in the process.
- C . Change which involves feedback and reflection.
- D . Change where shareholder value is the main consideration.
- E . Change which will involve downsizing and restructuring.
- F . Change which will involve key stakeholders.
AAA manufactures and sells a range of travel suitcases. One model, the ‘Executive’ has seen sales growth of around 3% for the last two years, following strong growth since its introduction eight years ago. This slow down in the ‘Executive’ sales growth is largely due to AAA’s competitors offering products in direct competition with the ‘Executive’. AAA has therefore had to reduce its price to match those of its major competitors. AAA has also recently upgraded the features of the ‘Executive’ model to include a variety of different colours and materials. It has also launched a marketing campaign to promote the benefits of the ‘Executive’ model against its competitors products.
Which stage of the product life cycle has the ‘Executive’ model of suitcases reached?
- A . Introduction
- B . Growth
- C . Maturity
- D . Decline
TTT is a partnership that designs a specialist type of construction project for clients. It does not build the construction projects itself. TTT has eight partners who are skilled architects. Each partner works independently on their own projects. The partners rarely meet except to agree how to share out TTT’s very significant profits.
The partners are disappointed that TTT is not growing as fast as it has in the past. Each partner is fully employed on their own projects and none has the time to recruit new architects to TTT. They are frustrated at the lack of leadership in TTT, although none of the partners are willing to take on a more senior role.
Which THREE of the following does TTT need to address?
- A . Manpower
- B . Management
- C . Make-up
- D . Money
- E . Materials
JJJ is a private company belonging to a famous former athlete. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit centre and the manager of each centre is paid bonuses based on its financial performance.
Three years ago it introduced multidimensional performance measures into its management control systems. These measure capacity utilisation, financial performance, competitiveness, innovation, and the flexibility of its centres to cope with changing demands.
The managers of its centres have been leaving at a very high rate over the last two years. They have claimed that the measures are too open to interpretation and when they think they are improving the centre’s performance they are told they are doing the wrong thing. They also complain that the managers in the centres near big cities find it much easier to reach their targets than the managers of other centres.
Using Fitzgerald and Moon’s Building Block model, where does the problem lie?
- A . Standards and Rewards
- B . Dimensions and Rewards
- C . Dimensions and Standards
- D . Standards, Dimensions and Rewards
Which THREE of the following statements are correct in relation to the use of the Performance Pyramid?
- A . One of the aspects of the pyramid is Stakeholders.
- B . It derives from the idea that anOrganizationoperates at different levels.
- C . The productivity aspect refers to the management of output at the business operating systems level of theOrganization.
- D . It highlights the links running between the company’s corporate vision and its functional objectives.
- E . The pyramid includes a specific cost aspect which considers the cost figures in the management accounts.
BCD is an independent training provider in Country P. It provides training to a wide range of corporate customers in business related subjects. All of its tutors must possess a nationally accredited training qualification before they are allowed to teach. Also, all of its courses follow nationally accreditedprograms and are externally monitored. This is considered to be a critical aspect of its business reputation.
BCD has one major competitor, JKL, within Country P. JKL offers similar courses to BCD but its tutors do not have to have an accredited training qualification. In addition its courses do not follow the national accreditedprograms and the content and style of courses varies significantly between JKL centres.
There are a number of universities which offer nationally accredited courses within Country P. BCD does not consider these as competitors, as they typically attract students wishing to undertake degree courses. The average university pass rate for nationally
accreditedprograms is currently higher than BCD’s
Which of the following types of benchmarking would be most useful for BCD?
- A . Process
- B . Internal
- C . Competitor
- D . Strategic
DRAG DROP
Select the ethical principle which is most likely to be challenged in each of the following situations.
MMM is a multi-national company that manufactures and sells consumer durables. MMM has recently experienced severe trading losses and its Marketing Director has decided to revise the Marketing Strategy paying due regard to MMM’s key external drivers.
Which THREE of the following are key external drivers for MMM?
- A . A change in consumer age profiles in a country where MMM sells 5% of its output.
- B . A modification to MMM’s production processes designed to save fuel.
- C . A change in MMM’s domestic advertising agency.
- D . A growth in Protectionist trade policies in Africa and Asia.
- E . An upward trend in commodity prices.
- F . A decline in the value of the Euro and the U.S. dollar.
CCC is a charity which has an excellent reputation within its home country. CCC employs over 300 highly experienced staff and also has 200 skilled volunteers. Its funding mainly comes from donations from the public but its public profile is low compared to larger, more publicised charities.
Due to the recent recession, public donations to CCC have fallen in the last five years, but demand for its services continues to grow.
The government of the country in which CCC operates is encouraging greater collaboration between charities and there have been several recent successful mergers within the charity sector. CCC has recently been approached by a high profile and well funded charity, PPP, with a proposal to merge. PPP offers complementary services to those offered by CCC.
Which TWO of the following factors would most likely be considered as an ‘opportunity’ for CCC?
- A . The excellent reputation of CCC
- B . Growing demand for its services
- C . Merging with PPP.
- D . Highly experienced staff
- E . Donations from the public
CIMA has described the two roles of enterprise governance as ‘preventing failure’ and ‘ensuring success’. CIMA sees ‘preventing failure’ as being related to having proper risk management and corporate governance procedures in place. CIMA sees ‘ensuring success’ as being concerned with the practise of strategic management.
Which THREE of the following responsibilities of senior management are essential to ‘ensuring success’ for theOrganization?
- A . Providing leadership and direction to theOrganization.
- B . Maintaining awareness and responsiveness to abrupt change in theOrganization’s environment.
- C . Demonstrating competence in the execution of new initiatives.
- D . Avoiding the dominance of the executive team by particular personalities.
- E . Ensuring conformance with the codes of corporate governance.
Lynch developed the performance pyramid to define the links between objectives and performance measures .
Which THREE of the following statements apply to the performance pyramid?
- A . The performance pyramid is designed to ensure that all activities support theOrganization’s vision.
- B . The left-hand side of the pyramid contains measures which have an external focus.
- C . The lowest level of the pyramid contains the day-to-day operational measures.
- D . The business operating systems level includes the market-related Critical Success Factors.
- E . The business unit level includes measures which relate to internal systems needed to meet customers’ needs.
- F . The right-hand side of the pyramid contains measures which are predominantly non-financial.
AB is a global car manufacturer. Management has agreed to spend $20 million on researching a new type of engine that uses liquid hydrogen to power the car. It believes it is important for AB to take a first step in developing this radical and uncertain new technology.
The $20 million will finance the research only and theprogramwill last two years. Providing the research is successful, after two years it would cost a further $40 million to develop a car to sell. This development would take a further three years. Management is concerned that the international car market may not be willing to buy hydrogen powered cars for at least six years from now.
Which of the following options would NOT be available to AB after two years?
- A . To invest a further $40 million in developing a car for sale.
- B . To ignore the research findings and not commercialise any innovations.
- C . To delay investment in building a hydrogen car until the market demand becomes clearer.
- D . To seek to recover the $20 million it has spent because the research has yielded no commercial benefit.
Which of the following did Johnson, Scholes and Whittington identify as success criteria for the evaluation of strategic options? Select ALL that apply.
- A . Suitability
- B . Affordability
- C . Feasibility
- D . Acceptability
- E . Durability
In Johnson, Scholes and Whittington’s model of rational strategy which of the following stages appear? Select ALL that apply.
- A . Analysis
- B . Choice
- C . Feasibility
- D . Implementation
- E . Sustainability
Which THREE of the following are classified as business operating systems measures within the Performance Pyramid?
- A . Flexibility
- B . Customer satisfaction
- C . Quality
- D . Productivity
- E . Cycle time
Which of the following is NOT included in the Information Systems Strategy (ISS) of Earl’s three levels of information strategy?
- A . Division / SBU / Function based
- B . Business-focused
- C . Management-focused
- D . Demand-orientation
Organizations have a variety of stakeholders, each with differing interests and requirements. This can lead to stakeholder conflict. This can be further complicated when individuals are members of more than one stakeholder group and when members of one group do not share the same principal interest.
Company FF has decided that it needs to undertake a stakeholder analysis in order to manage its stakeholders more effectively.
Which of the following statements are valid when undertaking stakeholder analysis? Select ALL that apply.
- A . Establishes stakeholder interests and claims on theOrganization.
- B . The analysis enables priorities to be set tominimizepower clashes.
- C . Considers how to prevent stakeholder trouble before it starts.
- D . Determines the degree of power that each group holds.
- E . The analysis only focuses on quantitative matters.
BBB operates a national mobile phone (cell phone) network in one country. It is considering investing in upgrading its network to 4th Generation (4G) by providing an improved bandwidth that will enable its customers faster access to the Internet.
The investment will cost $29 million which BBB’s institutional investors have agreed to provide by subscribing to a rights issue. This is because management has informed institutional investors that a rival is already offering 4G and that this is taking customers away from BBB because BBB’s network is now regarded as too slow. BBB’s remaining customers have shown a willingness to pay extra for 4G and overall the investment will have a positive net present value.
Which of the following statements are correct? Select ALL that apply.
- A . BBB will gain a first mover advantage.
- B . It provides a market development opportunity for BBB.
- C . There is stakeholder approval for the investment.
- D . It is essential given the strategic threats to BBB.
- E . There are sufficient investment funds available.
The concept of Triple Bottom Line (TBL) reporting expands traditional accountancy reporting systems to consider social and environmental performance, rather than simply financial performance.
Which THREE of the following does the TBL concept suggest should be measured in order to encourage greater business social responsibility?
- A . Productivity
- B . Profit
- C . People
- D . Planet
- E . Privacy
An insurer, JJJ, uses its Internet capabilities to promote and sell car and home insurance products. Although JJJ is supported by an ‘in-house’ call centre located in its home country, it has decided to outsource this activity to an overseas call centre.
There are a number of benefits to the company by undertaking this strategy, including that it can charge more competitive premiums to its customers and also increase its profits. However this change will mean that 75 call centre staff in the home country will be made redundant.
You have been appointed as the Change Leader and have been asked to prepare a report that includes details on how this change can be communicated.
Which THREE of the following statements are valid regarding JJJ’s proposed changes and the related staff communications?
- A . When undertaking change, communication is of great importance.
- B . The Change Leader should keep staff informed but should only communicate
information when all the detail has been finalised. - C . It is important that the Change Leader selects a communication channel which is appropriate to the message being delivered and its target audience.
- D . Momentum for change can be created by putting simple but highly visible improvements in place.
- E . A disadvantage of adaptive change is that it increases the level of resistance that a company can encounter when trying to implement change.
Coaching and Mentoring essentially involves a conversation where learning takes place through asking the right questions rather than providing answers. Consequently, Coaching and Mentoring can lead to both personal and professional transformation.
There have been many attempts to distinguish between Coaching and Mentoring, but it is widely acknowledged that the same skills and models are often used in both.
You have been asked to prepare a short briefing note on the Coaching and Mentoring of the Executive Management Team within your company .
Which of the following statements highlight the similarities between Coaching and Mentoring? Select ALL that apply.
- A . Both require the ability to generate trust, support and commitment.
- B . Both extend the learning curve.
- C . Both provide support without removing responsibility.
- D . Both do not requireOrganizational know-how or awareness.
- E . Both encourage the individual to stay within their comfort zone.
- F . Both can function as a career guide to review career goals.
You are the youngest member of the senior management team and have recently been invited to become a member of the company’s Board.
You have been sent an outline agenda ahead of your Board induction meeting with the Company Secretary. The first item on the agenda is the role of the Board.
Which of the following statements is NOT the role of the Board?
- A . Establish the company’s vision, mission and values.
- B . Relinquish responsibility for implementation of strategy to management.
- C . Confirm the adequacy and alignment to strategy of internal control and risk management systems.
- D . Establish strategy with regard to the risk appetite of theOrganization.
Which of the following is NOT one of the main principles contained within the UK Corporate Governance Code?
- A . Remuneration
- B . Leadership
- C . Disclosure
- D . Accountability
Which of the following is an example of a value adding activity within the outbound logistics aspect of anOrganization’s value chain?
- A . Refunds offered to customers if they are dissatisfied with a purchase.
- B . Promotions and discounts offered to loyal customers.
- C . Delivery of customers’ purchases directly to their homes.
- D . Regular training provided to staff in customer care.
BBB is a manufacturer of convenience meals .
Which of the following could be Weaknesses for BBB? Select ALL that apply.
- A . Government health warnings about food ingredients.
- B . A shortage of production capacity.
- C . Outdated materials requirement planning processes.
- D . A reduction in BBB’s Marketing budget.
- E . A rise in consumer demand for fresh food.
Company PP is a large UK retail company.
In the past it has focused primarily on using financial performance measures. However,
PP then realised that this was leading to short-term decision-making on investment in easily valued assets and under investment in assets such as employee skills and customer satisfaction, where short-term returns are more difficult to measure.
It has therefore adopted the Balanced Scorecard approach. PP is now considering enhancing it’s approach by using Kaplan and Norton’s Strategic Mapping model, as this will enable it to establish its priorities and manage stakeholder expectations.
Which of the following statements would be regarded as improvements by using Strategic Mapping.
Select ALL that apply.
- A . It will help to identify and prioritise how external processes would support PP’s strategies.
- B . It will help PP establish the overriding objective of theOrganization.
- C . It will help PP to identify and clarify customer-orientated strategies that support the overall business strategy.
- D . It will help inform which strategies, in each of the Balanced Scorecard perspectives, support improved performance.
- E . It will help PP to evaluate the operational and financial performance of the business.
Which of the following correctly defines Information Systems (IS) strategy?
- A . Identifying the information needs of theOrganizationand aligning development to them.
- B . The roles and structure of information specialists in theOrganizationand their relationship with users.
- C . Decisions on the hardware, software and communications solutions used in theOrganization.
- D . The planning, organising, investment and control of information applications in theOrganization.
DRAG DROP
Company XX and Company YY are the only two providers of electricity to Country M. The demand for electricity is price inelastic which means that buyers regard it as essential and therefore demand for electricity does not change significantly if the average price of electricty changes. However customers will switch between suppliers within a year to get cheaper electricity. Using Game Theory place the long-run revenue impact on each firm of each of the following pricing decisions.
PPP is a state owned national railway operator. It has many divisions, each focusing on specific areas of the country.
PPP’s mission statement is ‘to provide a safe, punctual and reliable public transport service at lowest cost to its passengers and the government’.
Which THREE of the following divisional performance measures should PPP adopt?
- A . Return on investment (ROI)
- B . Level of carbon emissions
- C . Percentage of trains arriving within 2 minutes of scheduled time
- D . Cost per passenger mile
- E . Number of accidents or near misses each month
MM is a business which sells entertainment products. MM now wants to move to a position where it uses e-business as a fundamental part of its business strategy.
Which of the following benefits would result from MM’s use of e-business?Select ALL that apply.
- A . Cost reductions because of lower overheads and cheaper procurement.
- B . Increased online revenues.
- C . Better control information through monitoring website activity.
- D . An increased use of tacit knowledge.
- E . A reduction in labour turnover and higher morale.
- F . Better control of information.
Which of the following is NOT a fundamental principle specified in CIMA’s Code of Ethics?
- A . Integrity
- B . Objectivity
- C . Confidentiality
- D . Sustainability
Kanter identified seven ‘power skills’ that change agents need to overcome apathy or resistance to change .
Which of the following are power skills? Select ALL that apply.
- A . Ability to work independently.
- B . Ability to collaborate effectively.
- C . Ability to develop relationships based on trust.
- D . Ability to keep within a budget.
- E . Ability to work ethically and sustainably.
- F . Ability to keep projects to a strict time-line.
CORRECT TEXT
DnD4_0071-R2-A.YYY wishes its managers to implement a changeprogram. YYY proposes to draw upon two change models associated with Kurt Lewin to assist in this process.
Place against each of the statements below the appropriate Lewin change model or whether neither model applies.
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<label height="40" width="500" x="0" y="160" z_order="30"> <border left_width="0" right_width="0" top_width="0"/> <text>
<p style="white-space:pre-wrap; ">
<font face="Arial" size="11">Managers should appoint an external consultant as a change
agent.</font>
</p>
</text>
</label>
<label height="40" width="500" x="0" y="200" z_order="40"> <border left_width="0" right_width="0" top_width="0"/> <text>
<p style="white-space:pre-wrap; ">
<font face="Arial" size="11">Managers should consider factors which inhibit
change.</font>
</p>
</text>
</label>
<label height="40" width="500" x="0" y="240" z_order="50"> <border left_width="0" right_width="0" top_width="0"/> <text>
<p style="white-space:pre-wrap; ">
<font face="Arial" size="11">Managers should create the initial motivation to
change.</font>
</p>
</text>
</label>
<label height="40" width="500" x="0" y="280" z_order="60"> <border left_width="0" right_width="0" top_width="0"/> <text>
<p style="white-space:pre-wrap; ">
<font face="Arial" size="11">Managers should ensure employees do not revert to previous
behaviours.</font>
</p>
</text>
</label>
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<target bgcolor="#CCCCFF" height="40" ident="DnD4_0071-R3" sequence="30" width="200" x="510" y="160" z_order="3030"> <border top_width="0"/>
</target>
<target bgcolor="#CCCCFF" height="40" ident="DnD4_0071-R4" sequence="40" width="200" x="510" y="200" z_order="3040"> <border top_width="0"/>
</target>
<target bgcolor="#CCCCFF" height="40" ident="DnD4_0071-R5" sequence="50" width="200" x="510" y="240" z_order="3050"> <border top_width="0"/>
</target>
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<border top_width="0"/>
</target>
<token height="40" ident="A" sequence="70" width="200" x="55" y="5" z_order="4010"> <border bottom_width="0" left_width="0" right_width="0" top_width="0"/> <text>
<p align="center" style="white-space:pre-wrap; "> <font face="Arial" size="11"> <b>Lewin’s Ice Cube Model</b>
</font>
</p>
</text>
</token>
<token height="40" ident="B" sequence="80" width="200" x="255" y="5" z_order="4020"> <border bottom_width="0" left_width="0" right_width="0" top_width="0"/> <text>
<p align="center" style="white-space:pre-wrap; "> <font face="Arial" size="11"> <b>Lewin’s Force Field model</b>
</font>
</p>
</text>
</token>
<token height="40" ident="C" sequence="90" width="200" x="455" y="5" z_order="4030"> <border bottom_width="0" left_width="0" right_width="0" top_width="0"/> <text>
<p align="center" style="white-space:pre-wrap; "> <font face="Arial" size="11"> <b>Neither model</b>
</font>
</p>
</text>
</token>
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<border/>
</label>
</dragdrop>
FFF manufactures and sells three consumer products. The Marketing Manager has enough funds to commission an advertising campaign for only ONE of the three products.
The Marketing Manager’s criterion for allocating funds for an advertising campaign is that the product should be a "Star" according to the BCG matrix.
Which product should receive the investment?
- A . Product A
- B . Product B
- C . Product C
- D . None of the three products meet the criterion.
VWX manufactures and sells a wide range of products. All these products utilise lenses and digital imaging technologies. VWX is considering how to manage its product portfolio.
Management is concerned about two product ranges in particular: cameras and home projectors.
VWX’s cameras are Single Lens Reflex (SLR) cameras featuring interchangeable lenses and provide detailed, high quality images of objects both at very close range and at considerable distances. VWX has the largest share of the camera market but the market sales are falling as people increasingly use their mobile phone handsets to take and share photographs.
VWX has a small share of the home projector market. As a consequence the range is loss making. The home projectors are used to show photographs or films on large wall-sized formats. There is a growing trend for customers to buy home projectors to connect
to mobile phones, tablets and games consoles to project the content into a larger image and in order to share it.
Which THREE of the following product management strategies should VWX adopt?
- A . Cancel or postpone further investment spending on developing new SLR cameras.
- B . Use marketing expenditure to try to make the camera brand to appeal to professional photographers.
- C . Invest in promotional campaigns to encourage people to view and share content using a VWX home projector.
- D . Invest in promotional campaigns intended to convince the general public of the superiority of SLR camera pictures over the images from mobile phone handsets.
- E . Cut promotional expenditure on home projectors to seek to restore the profitability of the range.
TTT is a software design company which has grown successfully over the last 8 years. It has been highly innovative and often collaborates with a number of external partners to produce high quality, innovative software for a wide range of customers.
TTT’s owner, K, has been a driving force behind its success. He spends a great deal of time analysing what is happening in the marketplace and trying to predict what customers need from TTT, through a network of industry contacts. He has a strong vision for TTT and communicates this, with conviction, to his staff in regular face to face meetings. He recognises and rewards his staff when new developments are undertaken and completed successfully and believes that if staff feel appreciated, then they will be more motivated to succeed.
Which THREE of the following skills for a leader in a change adeptOrganizationdoes K demonstrate?
- A . Tuning into the environment
- B . Building coalitions
- C . Communicating a compelling aspiration
- D . Learning to persevere
- E . Making everyone a hero
‘Big data’ refers to datasets whose size is beyond the ability of typical database software tools to capture, store, manage and analyse.
Which of the following statements is NOT a valid statement regarding ‘big data’?
- A . As technology advances over time, the size of datasets that qualify as ‘big data’ will also increase.
- B . The definition of ‘big data’ can vary by sector, depending on the software tools and dataset sizes common to a particular industry.
- C . Sufficient analytical and managerial talent is available to exploit the opportunities associated with ‘big data’.
- D . ‘Big data’ will require the right infrastructure, incentives and safeguards to address public concerns.
Company RR operates in the finance sector. It is experiencing increasing delays in approving loan applications, due to customers not promptly returning their signed copy of the application forms back to RR.
RR is now wanting to introduce e-signatures which allow customers to sign the document on their computer and return it back to RR through the Internet. This change will help to simplify the process and ensure that customers obtain their loans quicker.
To achieve this change, RR has established a project and has appointed you as the Project Leader to lead the change.
Select the THREE valid statements in respect of leading change.
- A . Managing change is a process of facilitating internal and external conflict resolution.
- B . A Change Agent is an individual or group that helps to bring strategic change to anOrganization.
- C . Transactional leaders focus on systems and controls and tend to seek improvement rather than change.
- D . A change leader using the Change Approach will focus on procedures, control measures and monitoring performance.
- E . An Affiliative leadership style is one where the change leader consistently asks the team for more.
GGG is currently undertaking a process of intuitive forecasting. A team of ten people has been selected from all levels of management and from a range of functional departments, to take part in the process. An initial single question of ‘How do we improve future customer satisfaction levels for GGG?’ has been posed and all members of the team have been asked to present a suggestion. No one is allowed to criticise another person’s ideas. This process should give GGG a forum for the expression and discussion of a wide range of ideas.
Which of the following intuitive forecasting techniques is GGG undertaking?
- A . The Delphi technique
- B . A think tank
- C . Brainstorming
- D . Visioning
Company GGG wants to gain competitive advantage and has decided to use data mining.
Which of the following would NOT result from data mining?
- A . Classification
- B . Description
- C . Forecasting
- D . Sequences
Which of the following distinguishes a learning curve effect from a learningOrganization?
- A . Learning curve effects depend on repetition of the same behaviour.
LearningOrganizations seek to modify behaviour. - B . Learning curve effects apply to the factory. LearningOrganizations are always service industries.
- C . Learning curve effects increase with time. LearningOrganizations cease to learn after a time.
- D . Learning curve effects always reduce costs. LearningOrganizations always increase costs.
Data mining is an important part of an Organization’s knowledge discovery process.
Effective data mining provides insight and can help unlock previously hidden opportunities.
Which of the following are disadvantages of Data Mining?
Select ALL that apply.
- A . Privacy issues
- B . Security issues
- C . Ethical issues
- D . Financial crime issues
- E . Manufacturing issues
NNN is a logistics firm that contracts with online retailers (clients) to deliver parcels containing customers’ purchases, to customers’ home addresses. NNN holds inventory of the most frequently ordered products at its warehouses.
According to industry research, most clients require the contractors to deliver the customers their purchases soon after they place their order. They are not concerned with the environmental impact of the logistics process. They require very competitive delivery prices from their contractors.
Customer research reveals that households dislike being asked to stay at home for an entire day because logistics firms are unwilling to commit themselves to a precise delivery time. This problem has led to a small number of cases of customers arriving at the warehouses of logistics firms demanding to take their purchases away with them. Most households do not consider the environmental policies or performance of the firms they buy from.
The logistics industry is very competitive and NNN wants to protect its existing contracts and to win more. It needs to focus its resources on the ‘things that must go right’ in order for it to succeed.
Which THREE of the following are Critical Success Factors (CSFs) for NNN?
- A . Business processes that deliver to households at the promised time + or – 15 minutes.
- B . A shorter average time between receipt of an instruction from its client and delivery to the customer.
- C . Warehouses in areas of lowest feasible operating cost.
- D . A car park and waiting room for customers at each warehouse.
- E . A comprehensive policy on emissions and Corporate Social Responsibility (CSR).
JKL Plc manufactures and sells a range of consumer electronic products. it is organised into four strategic business units (SBU’s), each responsible for a specific business segment.
Which business segment would benefit most from a Build strategy?
- A . Personal Computer
- B . Tablet
- C . Smartphone
- D . Personal Music Player
QQQ is Country M’s largest supermarket with 40% of the market share. In addition it has opened several stores around the world in the last 10 years. One of the reasons for QQQ’s success is its loyalty card. The loyalty card is used to gather information about the spending patterns of its customers. Around two billion pieces of information each week are captured and stored in an enormous data warehouse that can be accessed by QQQ and other selected large retail partners.
The information can be used to assess the success of new product launches as well as which demographics of customer are making the purchases. The system also allows QQQ to tailor its special offers to particular segments of the market and to predict the buying behaviour of its customers, which assists QQQ in procurement planning.
Which of the following best describes the activities outlined above for QQQ?
- A . Customer relationship management
- B . E-business
- C . Market segmentation
- D . Data mining
Which of the following is NOT a key attribute of a successful stretch target?
- A . Set at a level which is easily achievable.
- B . Set at a level which motivates staff to perform at their highest level.
- C . Staff must understand the reason for the stretch target set.
- D . Encourages ethically responsible behaviour to achieve the stretch target.
Mayo defined knowledge management as the management of the information, knowledge
and experience available to anOrganization .
Which THREE of the following are steps in the development and implementation of a knowledge management strategy?
- A . Gaining top management support.
- B . Creating the technological infrastructure.
- C . Populating the databases.
- D . Appointing a change agent.
- E . Establishing a knowledge management budget.
LMN sells fashion clothing at competitive prices through its own retail stores. The clothes are manufactured for LMN by contractors in other countries.
In the past 4 years LMN has progressively lost market share to rival shops and online stores. This has been the consequence of poor designs, poor quality, and poor customer service.
In the past 3 years LMN tried to respond to this declining market share in several ways:
• Used e-sourcing to increase the number of suppliers LMN uses in order to obtain a larger choice of designs.
• Used e-procurement to buy in greater quantities to reduce cost per item.
• Warned each supplier that LMN will use a different supplier unless prices are reduced and better designs provided.
• Closed its own design studio to save costs, relying instead on its suppliers for designs.
• Reallocated budgets away from funding for customer research towards
increased advertising.
• Avoided costs of product returns by making it difficult for customers to return items for a refund.
• Cancelled investment in a Customer Relationship Management system (CRM) to use the funds to finance its rising inventories.
You have been asked to suggest ways to improve the supply chain of LMN. This requires you to make a presentation to the Board of LMN.
Which THREE of the following techniques would improve the supply chain of LMN?
- A . Pull not push
- B . Partnership not antagonism
- C . Customer relationships not transactions
- D . Websites not shops
- E . Make not outsource
Johnson, Scholes and Whittington developed the SAF framework to explain the factors that should be considered before pursuing a strategic option.
JJJ is a listed company that is considering launching a new product into its market.
Which of the following considerations affects the Acceptability of this new product launch?
- A . The potential impact of the launch of the new product on the profitability of JJJ.
- B . The availability of funds within JJJ for launching the new product.
- C . The amount of production capacity JJJ will require to make the new product.
- D . Whether the product is consistent with the strengths of JJJ.