KAPLAN PUBLISHING
　　FINAL ASSESSMENT QUESTIONS
　　SECTION B
　　ANSWER ALL PARTS OF THIS QUESTION
 
　　QUESTION 2
 
　　Required:
　　(a)
　　Contrast the thinking of F.W.Taylor and Edward Deming. (5 marks)
　　(b)
　　Describe the benefits to an organisation of quality standard ISO 9000 certification.
　　(5 marks)
　　(c)
　　Explain what is meant by penetration pricing and premium pricing and distinguish the
　　two types of pricing. (5 marks)
　　(d)
　　Some employee dismissals (termination of employment) may be wrongful. Identify
　　the likely reasons why a dismissal may be considered ‘fair’. (5 marks)
　　(e)
　　Explain what is meant by Plan-do-check-act (PDCA) and Quality Circles and identify the
　　similarities between the two. (5 marks)
　　(f)
　　Explain the types of system maintenance that are likely to be performed by an
　　organisation. (5 marks)
　　(Total: 30 marks)
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　　CIMA E1: ENTERPRISE OPERATIONS
　　SECTION C
　　ANSWER BOTH QUESTIONS
 
　　QUESTION 3
 
　　Sullivan Adams Smith (SAS) is a network of estate agent shops, employing 1,200 staff in 23
　　branches across the South-East of the country of Disily. For the past 10 years it has been a
　　lucrative business. The buoyant housing market resulted in an increase in profits year on
　　year. Estate agents enjoyed massive commissions and company directors were rewarded
　　with huge bonuses. This immense success was due to a market driven by excess demand
　　and cheap borrowing. The houses were simply selling themselves.
 
　　However, the ‘credit crunch’ has arrived and burst the bubble. Lenders have set more
　　stringent controls with regards to the buyers that they are willing to offer mortgages to and
　　the amount they are willing to lend to these buyers. Meanwhile, lower consumer
　　confidence regarding the general economy is leading to a more cautious approach to the
　　housing market. Latest figures released for SAS, confirm a trend with only 8,444 houses
　　being sold in July compared with 14,502 for the same month the year before. The drop
　　means that the company can no longer continue to employ the current number of staff. The
　　Chief Executive, Douglas Adams, has concluded that “there is simply not the work for them
　　to do” and “that staff costs need to be controlled during these challenging times”. A target
　　has been set to reduce staff costs by approximately one quarter within the next three
　　months. The Chief Executive is keen that the cost cutting exercise will result in minimal
　　disruption to the business and upset of staff.
 
　　Douglas is proud of the business, having helped to build it from scratch. He is determined to
　　take positive action in order to ride out the storm. He is currently working with the Strategy
　　and Marketing Department in order to comprehensively review the company’s
　　effectiveness. Employees had grown accustomed to easy sales but are now being forced to
　　work harder. They are a determined group and the past year has seen a lot of aggressive
　　selling to potential customers. However, the Strategy and Marketing Department have
　　concluded that this has resulted in them losing touch with their customers and that SAS
　　needs to get closer to its customers.
 
　　Required:
　　(a)
　　Recommend, with reasons, the options available to the company to reduce staff costs.
　　(10 marks)
　　(b)
　　Discuss the current approach that SAS has to selling properties. How can the company
　　develop itself into one that is driven by customer needs? (10 marks)
　　(c)
　　Explain how SAS could make use of the marketing mix to ensure continued success.
　　(10 marks)
　　(Total: 30 marks)
　　KAPLAN PUBLISHING
　　FINAL ASSESSMENT QUESTIONS
 
　　QUESTION 4
　　X graduated from university last summer having studied advanced computing. Whilst at
　　university he was encouraged to maintain an electronic portfolio of experience using a
　　sophisticated university computer system. The system allows students to:
　　1.Record skills, events and achievements throughout their academic study;
　　2.Share documents and work collaboratively with other students;
　　3.Build a collection of items related to an individual student’s studies, personal
　　development, events of personal significance, etc.;
　　4.Develop an electronic curriculum vitae (eCV) with embedded web links to supporting
　　documents, etc.
　　One of the aims of the electronic portfolio is to allow students to showcase their abilities
　　and experiences to prospective employers when they seek full time employment for the first
　　time.
 
　　X believes that a similar system would also have great potential for senior managers and
　　executives. Since leaving university, he has developed and patented software called eCV.
　　The main use of the software is to provide a virtual CV document that can show video
　　messages, graphs, charts and work samples through embedded links. In addition, eCV can
　　provide:
　　1.An e-business card that can be attached to the bottom of an email message;
　　2.A social network for invited business contacts, so creating a private community where
　　membership is by invitation only (a “walled garden”);
　　3.A record and evidence of continuing professional development (CPD) achievements.
　　The conditions under which content, either wholly or partly, would be shared with
　　others is for the individual user of eCV to decide.
 
　　X is having discussions with a large executive recruitment agency which is very interested in
　　the software, despite a huge cost investment. The agency has, in the past, experimented
　　with erecruitment, blogging and virtual careers fairs. One of its strategic aims is to use the
　　newest technology for effective recruitment and networking. The majority of its competitors
　　have yet to recognise this potential. The agency believes that eCV could be a way of
　　presenting candidate information to its member firms. It is attracted in particular to the
　　“walled garden” within eCV where senior executives who are looking for a new job can
　　engage with a prospective new employer, knowing that privacy is guaranteed.
　　Required:
　　(a)
　　Explain the contribution the eCV or “curriculum vitae” can make as part of an
　　organisation’s recruitment and selection processes. (10 marks)
　　(b)
　　Explain the advantages the eCV would offer to the executive recruitment agency.
　　(5 marks)
　　(c)
　　Explain the potential disadvantages of the eCV for the executive recruitment agency.
　　(5 marks)
　　(Total: 20 marks)
　　KAPLAN PUBLISHING
　　CIMA E1: ENTERPRISE OPERATIONS
　　KAPLAN PUBLISHING