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E1 Enterprise Operations
21 May 2013 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 subquestions). 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
E1 Enterprise Operations
SECTION A 20 MARKS
[You are advised to spend no longer than 36 minutes on this question]
Question One
1.1 A B C D The phrase 'uncertainty avoidance' refers to which ONE of the following? A dimension of national culture Country risk Political risk Disaster recovery planning (2 marks)
1.2 A B C D
Corrective systems maintenance refers to which ONE of the following? A process undertaken prior to systems implementation A remedy of defects after systems implementation A process of upgrading both hardware and software A means of ensuring that machines and equipment do not hold up production (2 marks)
1.3 A B C D
Transaction costs are associated with which ONE of the following? Materials procurement Flexible working arrangements Outsourcing Lobbying (2 marks)
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1.4 A B C D
The aim of total productive maintenance is which ONE of the following? Inclusivity and empowerment Motivation and teamwork Engagement and commitment Prevention and continuity (2 marks)
1.5 A B C D
The term BRIC refers to which ONE of the following? Certain national economies Bringing about real continuous improvement A ranking index used in aptitude testing A system for business resource and information capture (2 marks)
1.6 A B C D
Foreign earnings are included in which ONE of the following? Gross Domestic Product Gross National Product Government fiscal policy Consumption tax (2 marks)
1.7 A B C D
Lobbying by a business is an example of which ONE of the following? Focus group research Country and political risk analysis Corporate social responsibility Political activity (2 marks)
1.8 A B C D
Which ONE of the following does NOT represent a control in a computer network? A firewall Data encryption Passwords A cookie (2 marks)
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Enterprise Operations
1.9 A B C D
Which ONE of the following does NOT represent a spoke in Cousins' supply wheel? Cost benefit analysis Portfolio of relationships Performance measures A firm's infrastructure (2 marks)
1.10 SERVQUAL is a technique for the service sector to do which ONE of the following? A B C D Eliminate waste and unnecessary effort Map work and document flows Measure quality of life for employees Measure the scale of quality in service provision (2 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
May 2013
SECTION B 30 MARKS
[You are advised to spend no longer than 9 minutes on each sub-question in this section]
(a)
Explain the disadvantages of a firm developing relationships with suppliers based on price alone. (5 marks)
(b)
(c)
Explain how a just-in-time (JIT) approach might contribute to the competitiveness of a firm. (5 marks)
(d)
(e)
Illustrate FOUR different types of test that might be used by an organisation when installing a new information system. (5 marks)
(f)
There are risks associated with investing in another country, yet many companies continue to do so. Explain why this might be so. (5 marks)
TURN OVER
May 2013
Enterprise Operations
SECTION C 50 MARKS
[You are advised to spend no longer than 45 minutes on each question in this section]
Question Three
CR7 has ten operating units and currently employs 250 people but has not replaced any employees that have left over the past six months. Until recently, CR7 was part of M013, a much larger group of diverse companies. CR7 is now independent following a management buy-out. In a statement about the future of the new company, the buy-out team explains that CR7 will operate profitably in the future but will need to adopt flexible employment practices and make more use of casual labour and contractors in order to become a more flexible firm. One consequence of the buy-out is that CR7 no longer receives the specialist support of M013 functions such as payroll, finance, human resources (HR) and information systems (IS) services, etc. These central M013 services were recognised as being of a good quality but were relatively expensive. The buy-out team has so far: Devolved responsibility for some central services such as cleaning services and grounds maintenance to CR7's units to organise for themselves; Engaged outside providers for both its payroll and finance requirements; Established in-house HR and IS central service departments.
One of the first tasks for the HR department is to develop a new pay structure for CR7's workforce.
Required: (a)
Discuss the advantages for CR7 of organising and managing its IS activities centrally. (10 marks) Explain the main issues CR7's new HR department should take into account when developing a pay structure. (10 marks) Explain how flexible employment practices might contribute to the future success of CR7. (5 marks) (Total for Question Three = 25 marks)
(b)
(c)
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Question Four
H345 is a large high street clothing retailer that was, until recently, associated with quality clothing at affordable prices. Over the past two years new competitors in the market have rapidly gained market share, mainly at H345's expense. One marketing analyst has commented that H345 needs to reconnect with its traditional customers before it can win them back. H345's owners are naturally worried by this situation and have appointed a new Chief Executive with a brief to 'transform H345's approach and thinking'. In his first meeting with H345's senior management team the new Chief Executive explained that the retailer has 'taken its brand for granted' and that the H345 brand needs serious consideration if the company's fortunes are to be revived. He has promised a re-launch of the brand and a fundamental review of the company based upon sound marketing principles. Privately, he is also critical of the attitude and abilities of some of H345's workforce and has promised to 'get the people issues right'.
Required: (a)
Explain the reasons for the new Chief Executive attaching such importance to H345's brand. (10 marks) Explain FIVE important aspects of H345's marketing operations, apart from branding issues, that might be most worthwhile for the Chief Executive to review. (10 marks) Describe the Human Resource activities that could be strengthened in order to overcome the apparent difficulties relating to the attitude and abilities of some of H345's workforce. (5 marks) (Total for Question Four = 25 marks)
(b)
(c)
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VERBS USED
List State Define
DEFINITION
Make a list of Express, fully or clearly, the details/facts of Give the exact meaning of
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
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 4 - ANALYSIS How you are expected to analyse the detail of what you have learned.
Analyse Categorise Compare and contrast Construct Discuss Interpret Prioritise Produce
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 5 - EVALUATION How you are expected to use your learning to evaluate, make decisions or recommendations.
Counsel, inform or notify Appraise or assess the value of Propose a course of action
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Enterprise Operations
Enterprise Pillar
E1 Enterprise Operations
May 2013
Enterprise Operations
12
May 2013