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NEW QUESTION 40
LMN sells fashion clothing at competitive prices through its own retail stores. The clothes are manufactured for LMN by contractors in other countries.
In the past 4 years LMN has progressively lost market share to rival shops and online stores. This has been the consequence of poor designs, poor quality, and poor customer service.
In the past 3 years LMN tried to respond to this declining market share in several ways:
* Used e-sourcing to increase the number of suppliers LMN uses in order to obtain a larger choice of designs.
* Used e-procurement to buy in greater quantities to reduce cost per item.
* Warned each supplier that LMN will use a different supplier unless prices are reduced and better designs provided.
* Closed its own design studio to save costs, relying instead on its suppliers for designs.
* Reallocated budgets away from funding for customer research towards increased advertising.
* Avoided costs of product returns by making it difficult for customers to return items for a refund.
* Cancelled investment in a Customer Relationship Management system (CRM) to use the funds to finance its rising inventories.
You have been asked to suggest ways to improve the supply chain of LMN. This requires you to make a presentation to the Board of LMN.
Which THREE of the following techniques would improve the supply chain of LMN?
- A. Customer relationships not transactions
- B. Make not outsource
- C. Pull not push
- D. Partnership not antagonism
- E. Websites not shops
Answer: A,C,D
NEW QUESTION 41
McKinsey saw culture as seven interconnected elements and described these in the '7S' model. Which of the following is NOT a 'hard' factor within the '7S' model?
- A. The way in which the Organization plans to gain a competitive advantage.
- B. The daily activities and procedures followed by staff.
- C. The way the Organization is structured and who reports to who.
- D. The core values of the Organization.
Answer: D
NEW QUESTION 42
A Service Level Agreement (SLA) defines exactly what services a service provider will provide and the required level or standard for those services.
Which of the following statements regarding Service Level Agreements is NOT correct?
- A. Service Level Agreements should include the expected response time to technical queries.
- B. Service Level Agreements should include the procedures for cancelling the contract.
- C. Service Level Agreements should include the targets and benchmarks to be used and the consequences for failing to meet them.
- D. Service Level Agreements should include a guarantee to provide 100% availability for complaint resolution.
Answer: A
NEW QUESTION 43
TUV had an employee turnover rate of 25% among new recruits and was becoming short of skilled workers.
The Board of TUV realized there was something dramatically wrong and called in consultants to assess the problem. The consultants recommended transformational change in that TUV should redesign the entire production system, change the placement of all equipment and the flow of work, redefine every job and give all workers new assignments.
Which type of change did the consultants recommend for TUV?
- A. Reconstruction
- B. Adaptation
- C. Revolution
- D. Evolution
Answer: C
NEW QUESTION 44
SSS University wishes to introduce a new Car Park Management Strategy (CPMS). The aim of this strategy is to reduce the use of private cars and to encourage sustainable transport, such as cycling and public transport, by staff and students SSS has decided to reduce the number of car parking spaces and introduce parking charges.
The Management Accountant has decided to use the Balanced Scorecard to help prepare a performance management system to assess the performance of the new CPMS Which of the following is an example of the Innovation and Learning perspective of a Balanced Scorecard for SSS?
- A. Reduction in complaints from customers
- B. Number of days of training for car park attendants
- C. Speed of processing the payment for parking charges
- D. Easy access to car parking spaces
Answer: B
NEW QUESTION 45
ODD is a business which sells entertainment products and now wants to move to a position where il uses e-business as a fundamental part of its business strategy Which of the following benefits would result from DDD's use of e-business?
Select ALL that apply
- A. An increased use of tacit knowledge
- B. Increased online revenues.
- C. Cost reductions because of lower overheads and cheaper procurement
- D. Better control of information through monitoring website activity
- E. A reduction in labour turnover and higher morale.
- F. Easier access to loan finance
Answer: A,C,F
NEW QUESTION 46
YC is a government funded hospital specialising in degenerative hearing conditions YC is renowned for it's pioneering work resolving chronic ear problems and has, in the last year, conducted a record number of operations and achieved high levels of success. The excellent reputation of YC has led to high demand and a considerable strain on resources Although last year the average cost per patient fell, and success rates far exceeded targets, overall spend increased significantly. YC hospital is expected to provide value for money (VFM). Which aspect of VFM has YC NOT managed to achieve in the last year?
- A. Effectiveness
- B. Excellence
- C. Efficiency
- D. Economy
Answer: D
NEW QUESTION 47
DDD is a business which sells entertainment products and now wants to move to a position where it uses e-business as a fundamental part of its business strategy.
Which of the following benefits would result from DDD's use of e-business? (Choose all that apply.)
- A. An increased use of tacit knowledge.
- B. Cost reductions because of lower overheads and cheaper procurement.
- C. A reduction in labour turnover and higher morale.
- D. Better control of information through monitoring website activity.
- E. Increased online revenues.
- F. Easier access to loan finance.
Answer: B,E
NEW QUESTION 48
BBB operates a national mobile phone (cell phone) network in one country. It is considering investing in upgrading its network to 4th Generation (4G) by providing an improved bandwidth that will enable its customers faster access to the Internet.
The investment will cost $29 million which BBB's institutional investors have agreed to provide by subscribing to a rights issue. This is because management has informed institutional investors that a rival is already offering 4G and that this is taking customers away from BBB because BBB's network is now regarded as too slow. BBB's remaining customers have shown a willingness to pay extra for 4G and overall the investment will have a positive net present value.
Which of the following statements are correct?
Select ALL that apply.
- A. BBB will gain a first mover advantage.
- B. There are sufficient investment funds available.
- C. It provides a market development opportunity for BBB.
- D. There is stakeholder approval for the investment.
- E. It is essential given the strategic threats to BBB.
Answer: B,D,E
NEW QUESTION 49
In order to organise the value-adding activities to support a chosen strategy. Porter's Generic Strategies are often applied within an organisation's value chain Against each of the activities listed below, select the Generic Strategy which best defines the strategic approach being taken.
Answer:
Explanation:
NEW QUESTION 50
You are responsible for managing a small team of people tasked with implementing a new environmental management reporting system across all Group subsidiaries. Senior management teams within subsidiary businesses are increasingly resisting the introduction of the system. Place your recommended approach for dealing with each of the following comments.
Answer:
Explanation:
NEW QUESTION 51
LLL is a global passenger airline that needs to invest in a new fleet of aircraft to operate on its routes. There are several types of aircraft to choose between. The new aircraft will have an operating life of 25 years with LLL and therefore management is keen to make the correct decision.
There are several uncertainties that make it difficult for LLL to make this investment decision. Aircraft engine technologies are changing and some manufacturers are developing engines that propel aircraft at much higher speeds, whilst others are developing slower engines that minimise emissions. Concern over global warming is leading governments in some countries to impose heavy taxation on airlines that operate aircraft that have high emissions. The demand for air travel is also changing due to changing income levels between emerging and mature economies as well as the increased use of telecommunications to replace face to face meetings.
Which THREE of the following techniques would you recommend to help LLL make this investment decision?
- A. Cross impact analysis
- B. Scenario planning
- C. Porters 5 Forces
- D. Brainstorming
- E. Morphological analysis
Answer: A,B,E
NEW QUESTION 52
T is a management consultant. He was recently contracted by company XYZ to act as an external Change Agent in a program of change being undertaken. T's first task was to assist XYZ in clearly defining the outcomes of the change program and ensure that these were achievable. T also set up a number of change teams and led several workshops and team building exercises. Many of XYZ's staff were resistant to the change program. Therefore, T had to ensure that he created an appropriate vision for the change and was able to resolve any conflict which occurred during the change program.
Which THREE of the following are the key skills of a Change Agent demonstrated by T?
- A. Role Setting
- B. Goal Setting
- C. Negotiation skills
- D. Independence
- E. Managing up
Answer: A,B,C
NEW QUESTION 53
QQQ is a family run business which manufactures and sells chocolate. QQQ employs 80 staff in its factory and shops. It operates 10 shops within a number of small towns in the northern region of Country P. In the last four years, demand for QQQ's products has decreased, as customers in its local region are increasingly shopping in large supermarkets and out of town facilities, which are more convenient and tend to offer cheaper priced goods. The recent economic recession has hit the region hard and many local people have moved away to find work in other regions of the country. The internet has also impacted upon its business, as many customers are now making purchases of chocolate via the internet.
The Managing Director (MD) of QQQ has recently retired and the Board took the decision to make an external appointment to replace him. The new MD believes that QQQ needs to invest in new technology within its factory. This would reduce staffing levels by 15% and would reduce wastage and costs, allowing QQQ to offer more competitively priced products. He also believes that QQQ must invest in its own website. However QQQ's staff are very unhappy with these proposals. Some of the family members of the Board are concerned that this change will destroy the family tradition and reputation of QQQ that has been built up over many years.
Select the correct descriptor for each of the forces for change below.
Answer:
Explanation:
NEW QUESTION 54
Mayo defined knowledge management as the management of the information, knowledge and experience available to an Organization. Which THREE of the following are steps in the development and implementation of a knowledge management strategy?
- A. Appointing a change agent.
- B. Gaining top management support.
- C. Creating the technological infrastructure.
- D. Populating the databases.
- E. Establishing a knowledge management budget.
Answer: B,C,D
NEW QUESTION 55
Company XX and Company YY are the only two providers of electricity to Country M.
The demand for electricity is price inelastic which means that buyers regard it as essential and therefore demand for electricity does not change significantly if the average price of electricty changes. However customers will switch between suppliers within a year to get cheaper electricity. Using Game Theory place the long-run revenue impact on each firm of each of the following pricing decisions.
Answer:
Explanation:
NEW QUESTION 56
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?
- A. Stakeholder management is made more complicated for an Organization when individuals belong to more than one stakeholder group.
- B. In measuring the satisfaction of stakeholder interests, Organizations should only focus on quantitative matters.
- C. Pressure groups have an interest in matters of public policy, but do not want to control the workings of government.
- D. Organizations will have a variety of stakeholders each with differing attitudes to risk which can cause conflict.
Answer: B
NEW QUESTION 57
To lead change successfully, Kotter and Schlesinger recommends that an Organization should change its strategy according to the situation. Effective change leadership therefore involves determining the optimal speed of change.
Which of the following statements would justify proceeding slowly with a change initiative?
- A. Where resistance will be low and more localised.
- B. Where you have more Organizational power than those who may resist the change.
- C. Where resistance will be intense and extensive.
- D. Where information and commitment from others is unnecessary.
Answer: C
NEW QUESTION 58
The concept of Triple Bottom Line (TBL) reporting expands traditional accountancy reporting systems to consider social and environmental performance, rather than simply financial performance.
Which THREE of the following does the TBL concept suggest should be measured in order to encourage greater business social responsibility?
- A. Profit
- B. Privacy
- C. Productivity
- D. People
- E. Planet
Answer: A,D,E
NEW QUESTION 59
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.
Answer:
Explanation:
NEW QUESTION 60
You work as a Management Accountant for GHJ, a company that includes commitments to 'sustainability' in its mission statement.
Which THREE of the following are contributions that you, as Management Accountant, could make towards the achievement of this part of the company's mission statement? (Choose three.)
- A. Integrated reporting of the triple bottom line of Profits, People and Planet.
- B. Measures of organization's use of non-renewable resources and environmental emissions.
- C. Providing financial information with all non-recurring expenditures and incomes removed.
- D. Ensuring the organization adopts the lowest cost technologies and suppliers.
- E. Project evaluations that include the externalities as well as the cash costs.
Answer: A,B,E
NEW QUESTION 61
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