E1 Enterprise Operations

Transcription

1 DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO Enterprise Pillar Operational Level E1 Enterprise Operations 27 February 2012 Monday Morning Session Instructions to candidates 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 highlighted 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. ALL QUESTIONS ARE COMPULSORY. Section A comprises 10 sub-questions and is on pages 2 to 4. Section B comprises 6 sub-questions and is on page 5. Section C comprises 2 questions and is on pages 6 and 7. The list of verbs as published in the syllabus is given for reference on page 11. 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 2012

2 SECTION A 20 MARKS [You are advised to spend no longer than 36 minutes on this question] 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 Which ONE of the following is NOT a feature normally associated with a Non- Governmental Organisation (NGO)? A B C D Government funded Independent Non-profit making Explicit social mission 1.2 Gross National Product (GNP) represents A another term for Gross Domestic Product (GDP). B Gross Domestic Product (GDP) adjusted for foreign earnings. C the total intellectual and social capital of a country. D aggregated 'bottom-line' performance of a country's top 100 companies. 1.3 Cattell's 16PF test is normally associated with which ONE of the following? A IS feasibility studies B The process of market segmentation C Auditing existing supply arrangements D Employee selection Enterprise Operations 2 March 2012

3 1.4 Supplier relationships in a supply network are categorised in which ONE of the following ways? A B C D Single, multiple, delegated and parallel Primary, secondary and post-purchase Phased, pilot and integrated One-to-one, several to one, 180 degrees and 360 degrees 1.5 Results and enablers are features of which ONE of the following? A Servqual B Total Quality Management (TQM) C The European Foundation for Quality Management (EFQM) excellence model D Competitive benchmarking 1.6 The desirable features of a candidate for a job are best contained in which ONE of the following? A B C D A person specification A job description A job advertisement A verbal briefing at the interview 1.7 Enlargement, enrichment and rotation are terms associated with which ONE of the following? A B C D Adjustments to an individual's job content and role Improvements brought about by competitive benchmarking Market and product development strategies Customer approval ratings 1.8 Which ONE of the following is NOT associated with Maslow's Hierarchy of Needs? A Self-actualisation B Affiliation C Hygiene D Safety Section A continues on the next page TURN OVER March Enterprise Operations

4 1.9 Which ONE of the following is NOT a cost of quality? A Internal failure B Appraisal C Prevention D Transaction 1.10 Which ONE of the following is associated with recruitment rather than selection? A Assessment centres B Interviews C Advertising copy D Psychometric testing (Total for Section A = 20 marks) 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 March 2012

5 SECTION B 30 MARKS [You are advised to spend no longer than 9 minutes on each sub-question in this section] ANSWER ALL SIX SUB-QUESTIONS IN THIS SECTION - 5 MARKS EACH Question Two (a) Describe briefly, FIVE main opportunities for an organisation operating in a modern global business environment. (b) Explain the relationship between 'Business Ethics' and 'Corporate Social Responsibility'. (c) Identify, with examples, groups that may represent a significant political risk for an organisation that is considering engaging in Foreign Direct Investment. (d) Describe the 5-S practice for improving both the physical and thinking environment of an organisation. (e) Describe briefly, FIVE ways in which an organisation might respond to variations in demand for its products. (f) Explain how operations management might contribute towards achieving an organisation's sustainability targets. (Total for Section B = 30 marks) End of Section B Section C starts on the next page TURN OVER March Enterprise Operations

6 SECTION C 50 MARKS [You are advised to spend no longer than 45 minutes on each question in this section] ANSWER BOTH QUESTIONS IN THIS SECTION 25 MARKS EACH Question Three CXC is a long established company supplying a variety of general, wholesale and personal insurances. CXC s headquarters occupies a large traditional building in the country s capital city where the activities of the company are monitored and company policies and procedures formulated. CXC has a traditional organisational structure of a General Manager and six Regional Managers, who are responsible for all the activities in their region. There are also Assistant Managers, Supervisors, and Team Leaders but it is the Sales Associates who deal directly with the customers. Although the Sales Associates receive referrals from CXC s headquarters, most business is generated by them working independently and using their own initiative, (for instance by getting further business from existing customers and developing links with local private medical companies, automobile traders, and travel companies, etc.). The Sales Associates are paid a flat-rate monthly salary but the General Manager is looking into the idea of implementing a bonus scheme to increase sales. CXC s most popular line is annual life insurance policies but a growing part of its business is mortgage protection and other mortgage linked insurances. The company does not feel that online trading is the way forward but, following a successful pilot scheme, a direct selling service by telephone was introduced for a number of its key products. First feedback is that whilst customers felt that the service was initially excellent in dealing with their enquiries, after the purchase had been made there was a generally poor service. Two years ago the company enjoyed 12% of the home market for all insurances but this has since declined to 10%. The company is now facing a new challenge in that it has lost a lucrative business with a pension fund. By way of compensation, it has some very profitable business in neighbouring countries A, B and C. The General Manager knows that CXC faces some difficult challenges and that strategic weaknesses and threats must be addressed. As a result, a working party has been formed from CXC s Regional and Assistant Managers to examine CXC s current situation in order to develop a new strategic marketing plan. It is also tasked with giving some guidance to the General Manager before any bonus scheme for Sales Associates is implemented. Required: (a) Discuss the strategic weaknesses and threats in marketing that CXC currently faces. (10 marks) (b) (c) Describe how the working party should go about developing a new strategic marketing plan. (10 marks) Explain the factors that CXC should take account of when devising a bonus scheme for its Sales Associates. (Total for Question Three = 25 marks) Section C continues on the opposite page Enterprise Operations 6 March 2012

7 Question Four CQ4 began as a single grocery store operating in a provincial town. It has since grown into a regional group of stores through a policy of buying and then developing previously less successful grocery and general stores. CQ4 s success has been down to buying small stores in strategically important geographical areas and then refitting the stores and introducing a greater range of products. CQ4 has a policy of re-employing staff of acquired stores and (up until now) continuing to operate existing systems and equipment in the stores. Currently staff spend several hours after the close of trading every day cashing up, checking inventory and placing orders for the next day s trading. Store managers report weekly to head office, both generally and on the performance of certain product lines. CQ4 s Managing Director now wishes to consolidate the group by introducing greater centralisation of control and decision-making and standardisation of equipment and procedures. As part of this initiative he has decided to introduce an electronic point-of-sale (EPoS) system on checkouts. This will involve using touchscreen terminals to speed up transactions in stores and transmit valuable data to head office in real time. The Managing Director has been warned that there may be some resistance to these changes as staff in some stores are set in their ways and fearful of new technology, whilst others may be suspicious of the motives behind the initiative. Required: (a) (b) (c) Discuss the ways in which CQ4's operations might be transformed through the implementation of the EPoS system. (10 marks) Discuss the ways by which the Managing Director might overcome potential staff resistance to the introduction of the EPoS system. (10 marks) Describe the human resource management issues associated with the Managing Director's new policy. (Total for Question Four = 25 marks) (Total marks for Section C = 50 marks) End of Question Paper March Enterprise Operations

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11 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 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 March Enterprise Operations

12 Enterprise Pillar Operational Level Paper E1 Enterprise Operations March 2012 Monday Morning Session Enterprise Operations 12 March 2012