ISEB Certificate in Organisational Context

Transcription

1 ISEB Certificate in Organisational Context Sample Paper A 1 Hour Examination You are allowed fifteen (15) minutes reading time before the examination starts. You are not allowed to write anything during that reading time. This is an open-book examination. This means that you can refer to written material in addition to the examination paper itself. Attempt ALL questions. There are 50 marks in total for this paper. The pass mark is 25 marks (50%). Start the answer to each question on a fresh sheet of paper and write your name in the top right hand corner of each page submitted. Use blue or black ink for you answers, including diagrams. Copying of this paper is expressly forbidden without the direct approval of ISEB. NOTE: There is a sample examination paper, with marking guidelines, for each of the ISEB BSD certificate modules. Each sample paper has been written to help candidates prepare for the module examination by providing an example of the general approach adopted by these examinations. The ISEB BSD Examination Providers are accredited to set the examinations for the certificate modules and part of the accreditation process requires Providers to demonstrate their ability to set rigorous examination papers. The sample examination papers are not intended for use by Examination Providers as a basis for setting their own examination papers and should not be viewed as a template for these examinations. Page 1 of 6

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3 SCENARIO HARD-AS-NAILS Hard-as-Nails is currently a sole-trader business, supplying nails and screws to DIY outlets in North Wales. The General Manager (GM) started the company five years ago, dealing directly from a van. He built up the customer/outlet base and identified a good sole supplier. He also deals with all of the customers, taking their orders and making sure that they are happy with the service. The responsibility for purchasing bulk items and the pricing of goods to outlets rests with him. The GM likes things to go on as they always have done but realises there must be change if he wants to see the company become the main supplier of nails and screws to North Wales and possibly branch out towards Newtown in Mid-Wales. He believes in steady growth and is cautious about over-extending himself. He would like to see his turnover rise by 15% over the next year. However, in order to make this happen, he is aware that he needs more funds to invest in the business. For example, so that he can employ an additional sales person and promote the company more actively. The Company Secretary (CS) handles all company administration. She invoices customers, deals with the bank, pays any bills and keeps the company accounts. She is very efficient and always invoices customers promptly and pays bills on receipt. She is also the line manager for an administrative assistant who handles the receipt and despatch of post and maintains the office filing system. CS is the only employee who has access to a PC, which she uses for basic word-processing and accounting spreadsheets. She would like greater use of modern technology products throughout the company, particularly (in her case) for invoice control over both suppliers and customers. She is not happy about the GM being the only person to deal with their sole supplier and feels the company needs to investigate the availability of other sources. She is very ambitious and would like to invest in Hard-as-Nails. In fact, she has approached the General Manager to see if he would be interested in converting the company into a partnership. The Warehouse Manager (WM) is responsible for everything that goes on in the warehouse. She manages the receipt and storage of bulk items, the pre-packing operation and the delivery of customer orders. She is also the company Health and Safety officer. She would like greater responsibility in the area of stock control and feels the GM is now unfamiliar with the needs of customers and the levels (and cost) of warehoused stock. She feels the company should find different ways of marketing their products so turnover is increased and levels of dormant stock reduced. The WM is the line manager of the five other company employees: Delivery Driver who delivers filled orders to existing customers, receives new orders from them and brings them back to the warehouse (at the end of the delivery round) for the WM to record and prioritise. Packers (3) who do the day-to-day work in the warehouse. Repacking bulk items into pre-packed specified quantities, preparing customer orders for delivery and keeping the warehouse tidy. They would like to see new ideas and equipment brought in to help with the assembling and movement of bulk supplies and filled customer orders. They have also started raising issues with the WM about their pay and conditions of service. Page 3 of 6

4 Cleaner who spends 3 hours each weekday evening cleaning the office and warehouse. She is quite happy with the way things are and does not ask for or expect anything more than the basic tools to do her job. The company is based in Llandudno, central for most of their customers. Currently it has one supplier (based in the Midlands) and about 75 outlets located along the North Wales coast. Outlets are visited at least once a month usually when Delivery Driver delivers their order. Warehouse and office staff generally work a five-day week (Monday to Friday, 8 to 5.30) with occasional overtime if needed. Page 4 of 6

5 Candidates must attempt all FOUR questions. 1 Functional Areas 1.1 List four business functions carried out within Hard-as-Nails and identify who (which job title) carries out that function. [8 marks] 1.2 Suggest two additional functions that could be carried out by Hard-as-Nails and explain how they would improve organisational effectiveness. [Total 14 marks] 2 Organisation Structure 2.1 Construct on Organisation Chart showing the current structure of Hard as Nails. Identify all jobs, their title, and line management responsibility. [Total 6 marks] 3 Types of organisation The Company Secretary has approached the General Manager about a partnership but the GM is not very keen on the idea. 3.1 Suggest two reasons why the GM might not want to do this. 3.2 Suggest another legal form the organisation might convert to in order for the CS to become a co-owner of the business. Explain why the GM might prefer this to a partnership arrangement. [Total 12 marks] Page 5 of 6

6 4 Management Accounting The purchasing manager of a chain of do-it-yourself stores has approached the GM with a requirement for bulk supplies of nails, screws and other Hard-as-Nails products. The GM is concerned because the policy of this chain is to pay suppliers on 90-day terms which may have an impact on cash flow. 4.1 You are required to produce a cash flow forecast for the period from March to September. This should be based upon the following information. The arrangement with the d-i-y chain is to begin at the start of March and end in June. At this point Hard-as-Nails will have 2000 in the main bank account. The payments to the supplier are currently 5000 per month but, as stocks will need to increase in order to supply the chain, this will be 8000 from March to June (inclusive). Sales income will be 6000 each month until payments from the d-i-y chain begin in June when the monthly sales revenue will increase to At the moment Hard-as-Nails have budgeted 5000 for a special promotion in May in order to boost their sales. [14 marks] 4.2 Suggest two actions that Hard-as-Nails could take in order to improve their cash flow. [4 marks] [Total 18 marks] -End of Paper- Page 6 of 6