Which ONE of the following is NOT normally associated with the (rational) staged decision making purchasing process?
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1 General omments Scoring in Section was very good indeed. Section was acceptable whilst Section was similar to previous examinations with the average mark being slightly lower than pass standard. SETION 20 MRKS NSWER LL TEN SU-QUESTIONS Each question is worth 2 marks Question 1.1 Which ONE of the following is NOT normally associated with the (rational) staged decision making purchasing process? Need recognition Loyalty to a brand Information searching Post-purchase evaluation The answer is Question 1.2 Transaction costs are expenses resulting from which ONE of the following? Outsourcing of services Off-shoring of organisational functions Penetration pricing Organisational downsizing The answer is Question 1.3 Subsidies for home industries, quotas and embargoes are mechanisms associated with which ONE of the following? Fiscal policies Free trade Liberalisation Protectionism Question 1.4 The answer is When segmenting a market based on demographic factors, which ONE of the following would NOT be considered? ge Gender Stage in the family life cycle Frequency of purchase The answer is The hartered Institute of Management ccountants 2014 Page 1
2 Question 1. iagrams which present the flow of information and products across supply networks are known as which ONE of the following? Process maps Fishbone 'cause and effect' diagrams Job analysis outlines Statistical control maps Question 1.6 The answer is Queuing theory analysis and flexible manufacturing systems represent methods of which ONE of the following? Process design Managing operational capacity Quality control Quality assurance Question 1.7 The answer is The outsourcing of an Information Technology service by an organisation can lead to which ONE of the following? Increased reliance on the IT department Increased reliance on central departments generally ertain staff having responsibility for monitoring contracts Recruitment of additional programmers Question 1.8 Social networking and blogging are normally associated with which ONE of the following? Web 2.0 tools Management information systems istributed data processing systems n open database Question 1.9 Which ONE of the following is NOT normally associated with Total Quality Management (TQM)? Six sigma -S Kaizen Insourcing The answer is The answer is The answer is The hartered Institute of Management ccountants 2014 Page 2
3 Question 1.10 The term 'guerilla' and 'viral' are often applied to which ONE of the following? ifferent organisational forms Predatory take-over tactics Marketing communications Stakeholder groupings The answer is Question One sub-questions 1.1 to 1.10 test candidates knowledge of a wide variety of topics across sections,, and of the syllabus through the use of objective test questions (OTQs) in a conventional 'multiple choice' format. Suggested pproach/marking Guide Sub-questions 1.1 to1.10. These sub-questions have been constructed on the basis that there is only one correct answer. Marking is therefore on the basis of 2 marks for a correct answer and 0 marks for an incorrect answer. 0 or 2 Examiner s omments Performance overall was very good for the multiple choice section of the paper with the majority of candidates scoring very well. Many candidates obtained full marks for this question. The hartered Institute of Management ccountants 2014 Page 3
4 SETION 30 MRKS NSWER LL SIX SU- QUESTIONS. Question Two (a) escribe FIVE main benefits of free trade. ( marks) This question examines learning outcome 1(c) 'explain the impact of international macroeconomic developments on the organisation's competitive environment'. Identify five main benefits escribe each in turn Overall production efficiencies Specialise in the production of goods and services in which countries have a natural advantage evelop a larger market Lower prices and greater choice for customers Greater political harmony and collaboration Maximum mark awarded Question Two (b) Explain FIVE different ways in which operations management thinking and techniques may benefit a hospital. ( marks) This question examines learning outcome 1(c) 'explain the particular issues surrounding operations management in services'. Identify potential benefits escribe each in turn applying to the context of a hospital Help reduce queuing time Stock control of medicines, etc. Elimination of waste and hence unnecessary costs Floor layouts and work flows evelop relationships with suppliers Managing bed capacity The hartered Institute of Management ccountants 2014 Page 4
5 Question Two (c) escribe FIVE different systems for managing inventory (stock). ( marks) This question examines learning outcome 1(b) 'explain the relationship of operations and supply management to the competitiveness of the firm'. Identify five different systems escribe each in turn ontinuous The Periodic Review System Just-in-Time (JIT) Materials Requirement Planning (MRP) Question Two (d) Explain FIVE reasons for the growth in geographically dispersed (virtual) teams. ( marks) This question examines learning outcome 1(c) 'discuss the transformation of organisations through technology'. Identify discrete reasons Explain each reason in turn Technological advances in systems and telecommunications Potential for cost savings for the organisation dvantages to individual employees vailability of faster cheap travel Opportunities offered by globalisation The hartered Institute of Management ccountants 2014 Page
6 Question Two (e) Explain FIVE reasons why a firm might attempt to actively manage its relationship with its suppliers. This question examines learning outcome 1(a) 'explain the shift from price-based to relational procurement and operations'. ( marks) Identify five reasons Explain each reason in turn ependency upon particular suppliers Influence ompetitive advantage Quality of supply Establish long-term relationships and continuity of supply substantial Question Two (f) Explain FIVE risks associated with a direct approach to changeover from one system to another. ( marks) This question examines learning outcome 2(a) 'discuss ways for overcoming problems in information system implementation'. riefly explain the approach Identify and then explain five risks involved Risk of errors being undetected Risk to continuity of operations Risk of misuse Risk of lack of user acceptance and inefficiencies Risk of outright rejection Examiner s omments Most candidates scored reasonably well overall. Sub-question (b) was less well answered than the others. Some candidates referred to non-operations management techniques or provided operations management techniques without explaining their application to a hospital. The hartered Institute of Management ccountants 2014 Page 6
7 SETION 0 MRKS NSWER OTH QUESTIONS Question Three (a) (b) (c) Explain what would be involved in introducing a social marketing programme in Oland. (10 marks) Explain the range of different measures Oland's Government could introduce to discourage excessive alcohol consumption (apart from social marketing). (10 marks) escribe the different forms of taxation that are available to Oland's new Government in order to raise the revenue necessary to finance its spending plans. ( marks) (Total for Question Three = 2 marks) Requirement (a) examines learning outcome 1(c) 'explain marketing in a not-for-profit context'. Requirement (b) examines learning outcome 1(b) 'describe the marketing environment of a range of organisations' and 2(b) 'analyse relationships among business, society and government in national and regional contexts. Requirement (c) examines learning outcome 1(c) 'explain the impact of international macroeconomic developments in the organisation's competitive environment'. Suggested pproach/marking Guide Requirement (a) riefly explain the basis of social marketing Identify the main issues associated with introducing such a programme Explain each issue in turn as it relates to Oland Explanation of the concept of social marketing Establish a budget for the programme(s) gree goals Market research to understand behaviour Segmentation and targeting Understand the social marketing 'product(s)' Get the price right Establish a clear focus on the message; sell financial behaviour etermine effective communication media Using social marketing as part of a coordinated approach nticipate competitor action and measure a programme's effectiveness 1 to 2 marks per 10 The hartered Institute of Management ccountants 2014 Page 7
8 Requirement (b) Identify the range of different measures Explain each issue in turn as it relates to Oland Partnerships and joint initiatives Education Voluntary regulation Legislation generally Legislation: taxation Legislation: compulsory regulation of advertising Legislation: other 1 to 2 marks per 10 Requirement (c) Identify the different forms of taxation that are available Explain each in turn irect taxes on earned income irect taxes on unearned income Indirect taxes on general expenditure Indirect taxes on expenditure on demerit goods Protectionism: the imposition of taxation on imported goods 1 to 2 marks per Examiner s omments Some candidates clearly did not understand social marketing. Some candidates instead of social marketing described marketing using social media and scored poorly as a consequence. Generally marks could have been improved by more expansive responses. The hartered Institute of Management ccountants 2014 Page 8
9 Question Four (a) (b) (c) escribe the factors that might be contributing towards the high levels of staff turnover in North Western SU, apart from failures in its recruitment and selection processes. (10 marks) Explain the benefits to North Western SU of using an assessment centre approach to recruitment. (10 marks) escribe the features that should be present in any organisational information system for it to be considered effective by its users. ( marks) (Total for Question Four = 2 marks) Requirement (a) examines learning outcome E2(d) 'discuss the importance of the line manager in the implementation of HR practices'. Requirement (b) examines learning outcome E1(a) 'explain how HR theories and activities can contribute to the success of the organisation', and requirement (c) examines learning outcome 2(b) 'discuss ways of organising and managing information system activities in the context of the wider organisation'. Suggested pproach/marking Guide Requirement (a) Identify factors responsible escribe each in turn Ineffective management Poor promotion and career opportunities Uncompetitive rates of pay Inadequate training Low levels of morale Unsatisfactory job design Lack of general hygiene factors Negative culture Poor appraisal systems Poor induction and mentoring processes 1 to 2 marks per 10 The hartered Institute of Management ccountants 2014 Page 9
10 Requirement (b) Identify the benefits of such an approach Explain each benefit in turn Improve reliability, validity and fairness generally Focus on necessary competencies Help prevent outcomes of a faulty selection process Unique insight into candidates' suitability llows good candidates to 'shine' Improves decision making Improved collaboration ost effective Improve retention enefits to candidates 1 to 2 marks per 10 Requirement (c) Establish possible features Elaborate upon each in turn Relevance ccuracy Timeliness Understandability Neutrality Examiner s omments This question was answered well by those candidates who understood what an assessment centre was. gain higher marks could have been gained by more expansive answers. The hartered Institute of Management ccountants 2014 Page 10
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