A Porter states that competitive advantage can be gained by following one of three generic strategies.
Place the appropriate generic strategy against each of the statements below.
UUU is a long established international airline. Which of the following represent Threats to UUU's business?
Select ALL that apply.
Which of the following statements are consistent with an effective strategic approach to supply chain management within a manufacturing Organization?
Select ALL that apply.
Using Earl's 'Three levels of IT strategy' framework, which one of the following activities would occur as part of an Information Systems (IS) strategy?
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 processes to inform other patients to offer them the space
• patients are admitted on days when there are no spaces available on the special equipment 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?
VW is a Non-Governmental Organisation (NGO) based in Country A, a mature economy. VWs mission is to provide food, agricultural tools and seeds, and low cost housing to the villagers in Country G: a deprived country that is suffenng from the effects of civil war.
VW cannot change its mission nor adopt any strategies that would be incompatible with that mission.
WV depends on funding from the Government of Country A, donations from private organisations, and donations from the general public However, these donations have fallen considerably in recent years due to the environmental factors listed below.
Which THREE of the environmental factors should VW develop strategies to address?
Communication is a critical element of the Organizational change process. Communicating the change vision is a component of Kotter's eight steps to transforming Organizations.
Which of the following statements support Kotter's component 'Communicate the change vision'?
Select ALL that apply.
A company runs a distribution warehouse. Its information systems constantly monitors inventory levels, with automatic re-order processing occuring with suppliers when inventory items reach a specified level. It operates a robotics system which automatically picks inventory from its location in the warehouse and delivers it to the pick-up area. The company also has a large database of customer information which it uses to analyse buying behavior and sales trends so that it can provide customers with relevant and targeted marketing information.
Which THREE of the following activities of the Value Chain have been affected by the use of IT/ IS?
Directors have a duty to shareholders and other stakeholders and are required to promote the success of the company.
Which THREE of the following are valid roles and responsibilities of directors? (Choose three.)
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?
As a CIMA qualified management accountant working within a manufacturing company, you are subject to both CIMA's Code of Ethics and your company's Code of Business Conduct.
Which TWO of the following statements are TRUE? (Choose two.)
CCC is a small business which manufactures and sells bicycles. Its most popular product is the standard road bike, brand named the 'Easy Rider'. CCC offers customers a limited degree of choice in terms of product specification for the Easy Rider bicycle. CCC manufactures and sells 1,000 Easy Rider bicycles each year. The average retail price of an Easy Rider bicycle is $500.
As a result of the recent rise in popularity of cycling in its home country, last year CCC launched a new bicycle, brand named the 'Pro Rider'. This bicycle is aimed at the more serious cyclists who take part in competitions and road races. CCC offers Pro Rider customers a wide choice of specifications and accessories and uses the highest quality of materials in its manufacturing process. A Pro Rider bicycle retails for an average price of $6,000. In its first year, CCC sold 150 Pro Rider bicycles.
CCC's business is generated mainly from word of mouth recommendations, repeat business and from customer visits to its small chain of shops. It aims to increase its market share for both brands within the next 5 years. Competition is high, with a number of large national bicycle manufacturers in the market.
Which TWO of the following are critical success factors (CSF's) for CCC?
Which of the following is NOT a use of the Value Chain?
F is an entrepreneur who runs a chain of health food shops in Country M. There are no other similar health food shops operating in Country M and the chain has rapidly grown over the last three years. F wishes to continue to grow his chain of shops but is aware that he lacks the funds to enable him to grow at the pace which the market is demanding. He is also concerned that continued rapid growth will result in him losing control over the strong brand reputation and identity that he has built up for the chain of shops.
Which of the following would be the most feasible strategy for F to adopt to continue to grow his business?
Which THREE of the following statements are correct in relation to the use of the Performance Pyramid?
Corporate political activity can be seen as a proactive attempt by a company to influence government decision-making. In particular, lobbying represents a direct but often private attempt by businesses to influence a government's decision-making.
Which of the following is NOT a legitimate and private form of lobbying?
BBB is a global manufacturer of organic fertilizers, used by farmers all over the world to improve resistance to disease and to increase crop yield. BBB uses data from past crop yield results, international weather prediction data and predictive models relating to population growth and movement statistics to identify and predict the fertilizers it will need to produce for its customers many years in advance.
Which of the following best describes the activities outlined above?
RRR is a large insurance company specialising in home and property insurance. It uses a highly sophisticated information system which it uses to process its insurance claims efficiently and effectively. It also holds a vast database of customer information and records. RRR's staff are very highly trained and considered to be the leading specialists in the industry.
Which category of intellectual capital is NOT present in the description of RRR above?
Company MM is wanting to build an out of town shopping complex. This will be located near a busy road which is surrounded by housing estates. MM has yet to obtain planning permission. It recognizes that unless it takes action, the local residents will object to MM's plans. As the Publicity Manager you have been asked to take over responsibility for Stakeholder Management.
Which of the following Stakeholder Management statements is NOT correct?
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?
In order to implement a knowledge management strategy, an Organization must acquire suitable hardware and software so that knowledge can be stored and communicated. Which of the following would be appropriate systems to use in a knowledge management strategy?
Select ALL that apply.
An IT project is currently being undertaken by VVV, a large university. The project is to design and install a secure information system network for all academic staff and administrative staff in the university. The Executive Board of VVV has insisted that the key objective of the project team is to track and monitor how the information system is being used by the academic staff and the administrative staff once it is implemented.
Which of the following would be an appropriate performance measure for the key objective set by VVV's Executive Board?
An organisation which exists in a fast-changing industry with managers who dislike formal planning would be best suited to using which of the following strategy models?
Which of the following of Porter's Five Forces would affect the power of suppliers?
'Big data' refers to datasets whose size is outside the ability of typical database software tools to capture, store, manage and analyze.
Which of the following statements is NOT a valid statement with regard to 'big data'?
Johnson, Scholes and Whittington suggest that Acceptability is an important consideration when evaluating potential alternative investment strategies.
Which of the following statements relate to Acceptability?
Select ALL that apply.
Which TWO of the following are advantages to an organization of using non-financial performance measures, rather than financial performance measures? (Choose two.)
GGG is a manufacturer of four different components produced in four separate facilities. The Production Director has sufficient funds to modernise one of the facilities. GGG's decision rule in these circumstances is that investment is permissible in either a 'Cash Cow' or a 'Star' but not a 'Dog' or a 'Problem Child?'. Which facility should be modernised?
PPP wishes to increase shareholder value using the Seven Value Drivers identified in Shareholder Value Analysis (SVA). Place the correct direction of change next to each driver.
GV is a manufacturer and retailer of high quality suede gloves. GV makes all of its sales in country F, and is extremely profitable. After many successful years trading, GV has accumulated significant cash reserves and would like to grow the business organically.
After some investigation work, GV has discovered an opportunity to sell leather shoes in country P.
Which of the following strategic directions is GV taking if it pursues this opportunity, according to Ansoff's product / market matrix?
Strategy is usually described as having three different levels: namely corporate strategy, business strategy and functional strategy. Which of the following are corporate strategies? Select ALL that apply.
Which of the following categorizations would be correct, according to McFarlan's Strategic Grid, for a system which is critical to sustaining existing business but its future strategic importance is considered to be low?
M is a car manufacturer in Country C. Every day, at 09.00, members of M's staff practice meditation and Tai Chi for 30 minutes, before their normal workday commences.
M's staff are paid during this time and M considers the practice to be a benefit both to staff and the company. Staff operate with high levels of efficiency and absenteeism levels are low.
The auditors of M have recommended that M stop these sessions, stating that they consider them to be a waste of time and a drain on resources.
Which of the following aspects of M's culture would the auditors recommendation impact on?
Z is a medium-sized UK based accounting practice. Z operates a graduate training scheme. The trainees are given an induction and then placed on a three-year training programme designed to help develop professional skills and experience.
The training programme has been in existence for many years. However, there is no clear consensus amongst the partners of Z about what the trainees should be able to do on completion of the programme and therefore what the training programme should emphasize. This lack of clarity is affecting the morale and commitment of the trainees and significant numbers are failing the programme or leaving to join a rival firm.
Z's HR Department recognizes the need for committed and well motivated accountants to meet the increased expectations of clients and the competition from rival firms. The HR Department has identified changes to the training programme that can be implemented gradually through a series of initiatives.
Which TWO of the following statements regarding the change required in Z are correct? (Choose two.)
WXY has been criticised by an activist shareholder for a lack of clarity in its formulation and implementation of strategy.
The activist shareholder states that WXY is confused as to the different levels of strategy and it has pointed to examples of inappropriate levels of management being held responsible for strategies that they do not control
WXY has decided to use the categories, Corporate, Business and Functional to clarify its strategic processes.
Which of the following are Corporate strategies?
Select ALL that apply.
BBB operates a small chain of coffee shops within Country X. a mature economy in northern Europe. BBB was established 20 years ago and currently employs over 150 staff in 25 shops located in major towns and cities throughout Country X. BBB attracts a wide range of customers, who are attracted by its extensive menu of coffee products and food Customers can either consume their purchases within the shop or can take their purchases away.
Which THREE of the following external environmental changes would have the greatest impact on BBB in the next three years?
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?
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 direct external change trigger is:
A grocery store has analysed its recent sales and identified that customers who purchased fresh strawberries also purchased ice cream at the same time in 65% of transactions.
Which of the following best describes the results identified in the analysis carried out by the grocery store?
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 higher 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?
JJJ is a publically quoted advertising agency. JJJ’s competitive advantage is based on the expertise of its staff and its reputation in digital media advertising. JJJ has robust systems to protect its intellectual property. These include patents and copyrights. JJJ has also restricted access for most of its staff to its most sensitive data, such as studies of its customers' profitability.
JJJ's new Managing Director, Z, is concerned that when staff leave JJJ, the company loses whatever tacit knowledge they possess. These losses also impact on JJJ's reported profits. In order to remedy the losses of knowledge and the reduced profits Z wants to introduce a knowledge management strategy.
Which of the following steps support the introduction of a knowledge management strategy? (Choose all that apply.)
