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Questions # 71:

ZZZ is a retailing Organization that is suffering falling market share and falling profits.

 

ZZZ has a new Chief Executive Officer (CEO) who is urgently setting up a strategic performance evaluation system. This will involve identifying Critical Success Factors (CSFs) and then monitoring Key Performance Indicators (KPIs).

 

Advise the CEO which of the following statements is suitable for the role that a Chartered Global Management Accountant should undertake.

Options:

A.

Identify CSFs, develop KPIs, and report on ZZZ's performance against them.

B.

Help strategic management to clarify CSFs then develop KPIs, and report on ZZZ's performance against them.

C.

Develop KPIs from a range of external data and report on ZZZ's performance against them.

D.

Act as a change leader in developing the strategic performance evaluation system.

Expert Solution
Questions # 72:

Kaplan and Norton developed a model called the Balanced Scorecard to assist in the formation and achievement of strategic policy.  Within this model are four perspectives. Which of the following statements is NOT applicable to a Balanced Scorecard perspective?

Options:

A.

To succeed financially, how should we appear to our shareholders?

B.

To achieve our vision, how should we appear to our customers?

C.

To achieve our vision, how will we sustain our ability to change and improve?

D.

To achieve our vision, how should we appear to our stakeholders?

Expert Solution
Questions # 73:

VWX is a successful airline with a proven record in successfully exploiting the resources it obtains. Which of the following might create an additional Core Competence for VWX?

Options:

A.

Unique rights to operate from the most popular airport serving a capital city.

B.

Sufficient aircraft to operate a good timetable.

C.

A market with more passengers than the existing airlines can satisfy.

D.

The airline operations that operate below the level of middle management.

Expert Solution
Questions # 74:

Which of the following structures would you recommend for the Board of Directors of a UK public company in order to fulfill its legal responsibilities?

Options:

A.

The Board of Directors should have a minimum of six directors with the Board's tasks divided amongst them. The Board should also have a Chairman or Chairwoman who may serve as the Chief Executive if time permits.

B.

The Board should have no more than six members with clearly defined executive and non-executive responsibilities. To make the role more efficient Chairman or Chairwoman of the Board should also be the Chief Executive.

C.

There should be no restriction placed on the minimum or maximum number of Directors. The Directors' roles should be shared but the Chairman or Chairwoman should not act also as the Chief Executive.

D.

The Chairman or Chairwoman should not have an executive role within the company. There should be at least two directors to carry out the Board's roles.

Expert Solution
Questions # 75:

EFG is a private hospital. It specialises in state-of-the-art laser surgery, an area which has developed rapidly in the last 10 years. Most of the staff of EFG are used to change, as developments in technology, new surgical techniques and customer demands have changed rapidly during this time. However, in the last three years the economic recession has had a significant impact upon EFG, with the numbers of private customers reducing and its profits falling sharply.

 

The Board of Directors has recently announced that it is to restructure the Organization and rationalise some of the services it offers. A small number of staff will be made redundant and those remaining will have to take on extra responsibilities with no extra pay. Also, the current generous overtime payments are to be drastically cut. Many staff have expressed concern at the impact that these changes will have on them.

 

The Board of Directors has clearly communicated the economic reasons for change to the staff through several meetings and are operating an open door policy, whereby staff can discuss the changes with their line managers at any time. 

 

Which of the following, according to Kotter and Schlesinger,  is the MOST likely reason for resistance among EFG's staff?

Options:

A.

Parochial self interest

B.

Misunderstanding

C.

Low tolerance to change

D.

Different assessments of the situation

Expert Solution
Questions # 76:

'Change-adept' Organizations are those that manage change successfully. Moss-Kanter identified skills required by Organizational leaders which are necessary to lead 'change-adept' Organizations.

 

Your Organization is undergoing significant change and the appointment of a new CEO is imminent. You have been asked to recommend the key skills for assessing the shortlist of CEO candidates against. 

 

Which of the following statements are suitable for use as the selection criteria for the new CEO, consistent with the ideas expressed by Moss-Kanter?

 

Select ALL that apply.

Options:

A.

Able to communicate a compelling aspiration.

B.

Able to take heroic action.

C.

Able to challenge the prevailing Organizational wisdom.

D.

Able to break up coalitions.

E.

Able to tune into the environment.

Expert Solution
Questions # 77:

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?

Options:

A.

The excellent reputation of CCC

B.

Growing demand for its services

C.

Merging with PPP.

D.

Highly experienced staff

E.

Donations from the public

Expert Solution
Questions # 78:

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.)

Options:

A.

As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.

B.

Where there is a difference between CIMA's Code of Ethics and the company's Code of Business Conduct, the company's Code of Business Conduct takes priority.

C.

Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.

D.

Both CIMA's Code of Ethics and the company's Code of Business Conduct include References to Confidentiality. Disclosure on public interest grounds is therefore prohibited.

E.

A company's Code of Business Conduct can be rules based.

Expert Solution
Questions # 79:

BCA is a long established international airline. Which of the following represent Threats to BCA's business? (Choose all that apply.)

Options:

A.

A sudden increase in international terrorism.

B.

A substantial rise in the price of oil.

C.

A higher level of private car ownership.

D.

Greater popularity of long-haul holidays.

E.

A shortage of trained pilots in BCA.

Expert Solution
Questions # 80:

DDD is a company which publishes paper-based books. In the last 10 years DDD has seen a steady decline in its sales. Last month, one of its major customers, a large chain of high street bookshops announced that it would be closing as a result in declining sales in the paper-based book market. The Board of DDD has therefore announced that in order to survive, it must re-focus the business upon the developement of electronic books, which will require a significant investment in new technology and staff training. However, some staff will be made redundant as part of this process. The Board of DDD has stated that it will reward staff who actively embrace the change process.

Which of the activities below would occur within the 'Unfreeze', 'Change' or 'Refreeze' stage of Lewin's three-stage model?

Question # 80

Options:

Expert Solution
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