E1 Enterprise Operations

Transcription

1 Pillar E E1 Enterprise Operations Instructions to candidates Specimen Examination Paper You are allowed three hours to answer this question paper. You are allowed 20 minutes reading time before the examination begins during which you should read the question paper and, if you wish, highlight and/or make notes on the question paper. However, you will not be allowed, under any circumstances, to open the answer book and start writing or use your calculator during the reading time. You are strongly advised to carefully read ALL the question requirements before attempting the question concerned (that is all parts and/or subquestions). The requirements for questions 3 and 4 are contained in a dotted box. ALL answers must be written in the answer book. Answers or notes written on the question paper will not be submitted for marking. Answer the ONE compulsory question in Section A. This has ten subquestions on pages 2 to 4. Answer the SIX compulsory sub-questions in Section B on page 5. Answer the TWO compulsory questions in Section C on pages 6 to 8. The list of verbs as published in the syllabus is given for reference on page 9. Write your candidate number, the paper number and examination subject title in the spaces provided on the front of the answer book. Also write your contact ID and name in the space provided in the right hand margin and seal to close. Tick the appropriate boxes on the front of the answer book to indicate the questions you have answered. E1 Enterprise Operations TURN OVER The Chartered Institute of Management Accountants 2009

2 SECTION A 20 MARKS [the indicative time for answering this section is 36 minutes] ANSWER ALL TEN SUB-QUESTIONS Instructions for answering Section A The answers to the ten sub-questions in Section A should ALL be written in your answer book. Your answers should be clearly numbered with the sub-question number and ruled off so the markers know which sub-question you are answering. For multiple choice questions you need only write the sub-question number and the answer option you have chosen. You do not need to start a new page for each sub-question. Each of the sub-questions numbered from 1.1 to 1.10 inclusive, given below, has only ONE correct answer. Each is worth two marks. Question One 1.1 A deliberate addition of new, stimulating requirements to a person s job normally carried out by someone more senior is called A job enrichment. B job enlargement. C responsibility creep. D multi-skilling. 1.2 Employers wishing to attract and retain talented employees by bringing together pay and non pay elements and emphasising a positive organisational culture are said to operate a A benefit scoping strategy. B total reward package. C talent strategy package. D a consolidated remuneration package. 1.3 Which of the following does NOT represent a spoke in Cousins strategic supply wheel? A Performance measures B Organisational structure C Organisational culture D Cost/benefit analysis Enterprise Operations 2 Specimen Exam Paper

3 1.4 Customers direct participation in the delivery process is a feature of A cellular production. B the value chain. C the service industry. D lean product manufacture. 1.5 An operations management programme involving a series of long term continuous development practices is referred to as A queuing theory. B a sustainability program. C optimised production technologies improvement. D stakeholder engagement strategy. 1.6 The acronym/phrase/term BRIC is normally associated with A a Japanese quality development technique. B a stock control method. C supplier development through buying, relating, investing and collaborating. D the emerging combined economies of Brazil, Russia, India and China. 1.7 Organisations engaged in off-shoring A have some operations carried out in a different country. B diversify their operations. C brand themselves as global. D maximise competitive advantage by being based in a particular country. 1.8 Which of an organisation s competences should NOT be outsourced? A Allied competences B Core competences C Complementary competences D Residual competences Section A continues over the page TURN OVER Specimen Exam Paper 3 Enterprise Operations

4 1.9 A formal definition of a level of service to be provided is usually found in A documented quality assurance arrangements. B a marketing plan. C a corporate strategy. D a service level agreement A country s earnings from investment abroad is included in its A Gross Domestic Product. B Gross National Product. C Relative Trade Balance Index. D Quality of Life Index. Reminder All answers to Section A must be written in your answer book. Answers or notes to Section A written on the question paper will not be submitted for marking. End of Section A Section B starts on the opposite page Enterprise Operations 4 Specimen Exam Paper

5 SECTION B 30 MARKS [the indicative time for answering this section is 54 minutes] ANSWER ALL SIX SUB-QUESTIONS IN THIS SECTION - 5 MARKS EACH. Question Two (a) Explain the benefits a collaborative process of Human Resource planning might bring to an organisation. (b) Explain what types of costs are associated with internal failure costs and the significance of these for an organisation with a reputation for quality. (c) Describe the features and benefits of SERVQUAL to organisations where it might be relevant. (d) Identify the key issues for a manufacturing organisation considering adopting Six Sigma philosophy. (e) Explain why a business with shareholders might take into account the interests of a wider group of stakeholders when considering a policy decision. (f) Identify the nature and effects of risks for an organisation considering doing business in a country that has a government and political system that it is unfamiliar with. (Total for Section B = 30 marks) End of Section B Section C starts on the next page TURN OVER Specimen Exam Paper 5 Enterprise Operations

6 SECTION C 50 MARKS [Indicative time for answering this section is 90 minutes] ANSWER BOTH QUESTIONS IN THIS SECTION 25 MARKS EACH Question Three CW is an established charity based in the capital city of the developed country of Statesland. It raises funds locally to finance clean water and sustainable agricultural projects in some of the poorest areas of the world. CW relies heavily on the work of unpaid volunteers and prides itself on low operating overheads and directing a large proportion of its income to on the ground projects. CW s sources of income involve donations from the public and the operation of charity shops in the north of the country selling unwanted clothes and household items. Recently however, a downturn in the economy, charity fatigue and competition from other causes has made fund-raising more difficult. It is clear that CW needs to either reduce the level of projects it currently funds or increase income. The Chief Executive of the charity has convinced her Board of Trustees that the charity needs to professionalise its operations, be more outward facing and employ modern marketing practices. Consequently, an independent consultancy firm with expertise in this area has been engaged to advise the charity. Trustees are supportive of the Chief Executive but are worried that certain marketing practices, particularly promotional activities, might be seen as unethical and damage the good reputation of the charity. In the first meeting between a partner of the consultancy firm and the Board of Trustees, a number of areas were covered including a discussion of the application of the marketing mix to the charity, and market research options for CW. A second meeting has been arranged. You work for the consultancy firm and have been asked to produce some briefing notes for the partner to help him with this second meeting. Required: Prepare briefing notes for the partner that addresses the following questions: (a) Explain what aspects of marketing could be helpful to CW. (Do not include matters covered in the first meeting or segmentation and targeting.) (10 marks) (b) (c) Explain the processes and implications of market segmentation and targeting to CW. (10 marks) Identify two types of promotional activity and for each explain the ethical concerns that might arise for CW using them. (Total for question three = 25 marks Section C continues on the opposite page Enterprise Operations 6 Specimen Exam Paper

7 Question Four The S1K group has grown from a single optician s shop in a provincial town into (what it describes as) a lifestyle retail group. S1K s policy is to buy existing shops in fashionable city centre shopping malls which it believes are underperforming. In addition to traditional services offered by opticians, S1K offers eye correction (laser) treatment, designer sunglasses, cosmetic tinted contact lenses and, for certain spectacle frames, a range of complementary jewellery. S1K also plans to sell own-brand augmented products and treatments such as eye creams and drops, make-up, etc. at premium prices from its premises. S1K is due to expand from thirty to thirty five geographically diverse shops in the south of the country within the next year. The Board of S1K recognises the challenges ahead and has recently appointed a new Chief Executive who has a background in both retail operations and information solutions. He has just completed an initial review of systems and technology within S1K. His main findings are highlighted below: The opportunities for the use of information technology (IT) need to be grasped, particularly in the implementation and running of the information system network in support of management operations both in shops and in the main functional areas of S1K s headquarters. Systems are generally weak and the benefits of modern software applications lacking. The accuracy and completeness of information received by headquarters from shops needs to improve and there needs to be better coordination of activities. Through its acquisition policy S1K has inherited a series of shops operating independent systems of varying sophistication and effectiveness. Several different systems are used and some are very inefficient. (For example, the equivalent of over 40% of a full time workers time is spent manually analysing and searching for information in shops.) Internet possibilities are being missed and there is no virtual network. Common computerised stock records will also be required when new products and treatments are sold. Some shops still use manual systems, others use basic stand-alone computers, but none take full advantage of software capabilities and most only use basic software functions. The financial system is the only shared system. The existing financial system is struggling to cope with the rapid growth of the group. Replacement software is due to go ahead within the next six months. Although the software does not fit existing business processes exactly, it has the clear advantage of giving S1K access to an industry best practice system and is identical to that used by all its main competitors. As such, it is a good choice. The least problematic implementation approach is a phased approach, and a programme of events for implementing was drawn up by the previous project manager who has now left S1K. A replacement project manager from within S1K needs to be appointed to oversee the introduction of the project as a matter of priority. The requirement for this question is on the next page Specimen Exam Paper 7 Enterprise Operations

8 Required: (a) (b) (c) Identify the ways in which information technology and information systems might improve S1K s operations. (10 marks) Discuss the Chief Executive s analysis of ways of overcoming potential problems in the implementation of the new financial system. (10 marks) Identify the main individuals and groups S1K s Human Resources Department should target first for training and whether training provision should be made inhouse or not. (Total for Question Four = 25 marks) Total marks for Section C = 50 marks) End of Question Paper Enterprise Operations 8 Specimen Exam Paper

9 LIST OF VERBS USED IN THE QUESTION REQUIREMENTS A list of the learning objectives and verbs that appear in the syllabus and in the question requirements for each question in this paper. It is important that you answer the question according to the definition of the verb. LEARNING OBJECTIVE VERBS USED DEFINITION Level 1 - KNOWLEDGE What you are expected to know. List Make a list of State Express, fully or clearly, the details/facts of Define Give the exact meaning of Level 2 - COMPREHENSION What you are expected to understand. Describe Communicate the key features Distinguish Highlight the differences between Explain Make clear or intelligible/state the meaning or purpose of Identify Recognise, establish or select after consideration Illustrate Use an example to describe or explain something Level 3 - APPLICATION How you are expected to apply your knowledge. Level 4 - ANALYSIS How you are expected to analyse the detail of what you have learned. Level 5 - EVALUATION How you are expected to use your learning to evaluate, make decisions or recommendations. Apply Calculate/compute Demonstrate Prepare Reconcile Solve Tabulate Analyse Categorise Compare and contrast Construct Discuss Interpret Prioritise Produce Advise Evaluate Recommend To put to practical use Ascertain or reckon mathematically To prove with certainty or to exhibit by practical means Make or get ready for use Make or prove consistent/compatible Find an answer to Arrange in a table Examine in detail the structure of Place into a defined class or division Show the similarities and/or differences between Build up or compile Examine in detail by argument Translate into intelligible or familiar terms Place in order of priority or sequence for action Create or bring into existence Counsel, inform or notify Appraise or assess the value of Propose a course of action Specimen Exam Paper 9 Enterprise Operations

10 Enterprise Pillar Operational Level Paper E1 Enterprise Operations Specimen Paper Tuesday Morning Session Enterprise Operations 10 Specimen Exam Paper