Cima E1 Test Questions

1. DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO E1 – EnterpriseOperations Enterprise Pillar Operational Level E1 – Enterprise Operations 22 May 2012 – Tuesday 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 sub- questions). 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. 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 A transition economy is one that is 1.1 about to be controlled by a different political regime. A still introducing the benefits of e-commerce. B C moving from a planned to a mixed or free market economy. D retrenching due to adverse economic circumstances. (2 marks) 1.2 Corporate governance is best described as A a code for organisational direction, administration and control. B stakeholder guidelines. C a system of penalties for unethical behaviour. D the relationship between an organisation and the government. (2 marks) Which ONE of the following is a program that impairs data and software? 1.3 A A virus B Corrective maintenance C Electronic Data Interchange (EDI) D Cyber bullying (2 marks) Enterprise Operations 2 May 2012

3. Background and circumstances, special attributes and disposition are all factors often identified in which ONE of the following? 1.4 A Service level agreements B Key performance indicators C Person specifications D Job descriptions (2 marks) 1.5 IS client-vendor relationship is a feature of which ONE of the following? A An outsourced IS function B Enterprise-wide systems C Social networking D Virtual team working (2 marks) 1.6 If an employee who is opposing the introduction of a new system is given a key role in its implementation, this is an example of which ONE of the following? A Co-optation B Career planning C Succession planning D Networking (2 marks) 1.7 Contrived, volume and realistic are examples ofwhich ONE of the following? System testing methods A Supply relationship categories B Ways of classifying inventory C Ways of estimating market potential D (2 marks) 1.8 A psychological contract refers to which ONE of the following? Intangible costs arising from outsourcing A The mutual expectations of an employer and employee B The responsibilities of citizens to their nation C The use of contracted experts in psychometric staff testing D (2 marks) Section A continues on the next page TURN OVER May 2012 3 Enterprise Operations

4. According to Douglas McGregor, managers believe Theory X people 1.9 naturally dislike work and avoid responsibility. A B naturally enjoy work and seek the challenge of responsibility. C are a younger generation which is comfortable with new technology. D are an older generation unlikely to engage in e-commerce. (2 marks) 1.10 Which ONE of the following is most likely to lead to an organisation accessing a larger market for its goods or services? A Electronic Data Interchange (EDI) B Teleworking C e-trading Penetration marketing D (2 marks) (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 May 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) Explain FIVE ways in which businesses might try to influence government policy in a way that might benefit them. (5 marks) (b) Product manufacturing operations can be explained as a three stage transformation model of inputs, processes and outputs. Distinguish how a service differs from a product using this model as a framework. (5 marks) (c) Explain the main features of organisations that do NOT adopt a market or marketing orientation. (5 marks) (d) Describe FIVE factors that can influence an individual when deciding whether or not to purchase a product. (5 marks) (e) Explain the relationshipbetween Frederick Herzberg's dual (two) factor motivation theory and job enrichment. (5 marks) (f) Describe the marketing processes that are necessary before an organisation can properly target the most lucrative part of a market. (5 marks) (Total for Section B = 30 marks) End of Section B Section C starts on the next page TURN OVER May 2012 5 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 WV8 is a large not for profit (NFP) public sector organisation responsible for organising the operation of publicly financed schools within its region. WV8 receives its income solely from government grants but, because of funding cuts, is under pressure to maintain existing services whilst operating more cost effectively. Recently, a government spokesperson publicly criticised public sector organisations claiming that they are expensive, lack skills found in the private sector, such as marketing and business acumen, and have a lack of understanding of the customers they are meant to serve. In order to meet these challenges, WV8's Chief Executive has created a policy review team comprising experts from all areas of WV8's operations. Phase 1 of the review involves looking at central support services which includes Corporate Information Systems (CIS) services. In the past there have been difficulties in recruiting specialist staff in Information Systems (the Head of CIS services claims that this is because of WV8's relatively unattractive rates of pay). In addition, service users have complained that CIS is expensive and unresponsive to their needs. Various options are currently being discussed, for example a complete decentralisation of the CIS function to its main users and continuing centralised provision through a total outsourced service to a single specialist supplier. Phase 2 of the review will involve investigating ways in which WV8 can become more business- like and the ways in which it might adopt marketing principles. Required: (a) Discuss the potential advantages for WV8 of decentralising the CIS function. (10 marks) (b) Discuss the issues associated with a total outsourcing of CIS for WV8. (10 marks) (c) Describe the lessons WV8 could learn from marketing principles and practices. (5 marks) (Total for Question Three = 25 marks) Section C continues on the opposite page Enterprise Operations 6 May 2012

7. Question Four 2JN is a large manufacturing organisation which is structured with a number of supervisors each responsible for their own work production unit. Supervisors report to a team of senior managers who in turn are accountable to a Managing Director (MD). Operations are supported by 2JN's own finance, sales, distribution and human resource units. Within the past two years, 2JN has implemented a series of initiatives aimed at reducing product defects and customer complaints. The initiatives have included the appointment of a few quality control inspectors to support supervisors. Despite these efforts, 2JN has lost some of its major customers to its competitors and its profits are declining. After discussions with customers and suppliers, the MD has discovered that other companies within the same industry have successfully adopted a Total Quality Management (TQM) approach. At a recent senior management meeting he announced that a TQM programme would be introduced within 2JN as a matter of priority. To support this, a Quality Committee will be established to oversee the programme's introduction and operation. He has tasked the human resource unit to establish Quality Circles to meet on a regular basis and arrange training in TQM for all staff. The MD concluded by saying that TQM was vital to 2JN and that high quality 'will both put costs down and revenue up'. Required: (a) Explain the requirements for achieving a Total Quality Management (TQM) approach within 2JN. (10 marks) (b) Identify the important issues and work groups that need to be considered when organising the TQM training in 2JN. (10 marks) (c) Discuss the claim that high quality 'will both put costs down and revenue up'. (5 marks) (Total for Question Four = 25 marks) (Total marks for Section C = 50 marks) End of Question Paper May 2012 7 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 State Define Make a list of Express, fully or clearly, the details/facts of Give the exact meaning of Describe Distinguish Explain Communicate the key features Highlight the differences between Make clear or intelligible/State the meaning or purpose of Recognise, establish or select after consideration Use an example to describe or explain something Level 2 - COMPREHENSION What you are expected to understand. Identify Illustrate Apply Calculate Demonstrate 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 Level 3 - APPLICATION How you are expected to apply your knowledge. Prepare Reconcile Solve Tabulate Analyse Categorise Compare and contrast 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 Level 4 - ANALYSIS How you are expected to analyse the detail of what you have learned. Construct Discuss Interpret Prioritise Produce Advise Evaluate Recommend Counsel, inform or notify Appraise or assess the value of Propose a course of action Level 5 - EVALUATION How you are expected to use your learning to evaluate, make decisions or recommendations. May 2012 11 Enterprise Operations

12. Enterprise Pillar Operational Level Paper E1 – Enterprise Operations May 2012 Tuesday Morning Session Enterprise Operations 12 May 2012