E2 Enterprise Management Post Exam Guide March 2011 General Comments The overall performance for this session

n of Enterprise Management was the best achieved by candidates since the new syllabus commenced in 2010. There were fewer really excellent papers than in November 2010, with only one candidate achieving over 80%. However, several other candidates scored in excess of 70% which is a very good performance indeed on a question paper of seven compulsory questions. For the candidates who, unfortunately, did not manage to pass this examination, question two on the role of functional strategy and question six (a) on conflict handling strategies appeared to cause most difficulty. In both cases, candidates appeared to lack knowledge of the relevant theoretical concepts and so struggled in their attempt to answer the question. The only solution to this kind of problem is to ensure careful preparation of the whole syllabus. There is no hiding place in an examination paper in which all questions are compulsory. Other general reasons for poor performance included poor time allocation, though this was less prevalent than in previous papers, and misinterpretation of question requirements.

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E2 Enterprise Management Post Exam Guide March 2011 SECTION A 50 MARKS ANSWER ALL FIVE QUESTIONS

Question 1 Discuss the points you would include in the presentation on the benefits of having a clear mission for PV Company. (10 marks) Rationale The question tests candidates' understanding and importance of the concept of mission. It examines learning outcome A2(a) discuss concepts in established and emergent thinking in strategic management'. Suggested Approach Answers could start with an explanation of what is meant by the term mission. This could then provide the base to develop the specific benefits for PV Company of having a clear mission. Good answers will make links to issues identified in the scenario. Marking Guide Explanation of mission, for example: Overriding purpose/raison d'tre Scope and boundaries Benefits of mission, for example: Help provide direction in strategic planning Help in setting objectives Help clarify purpose for different stakeholders Communicate intentions of PV Company Common source of direction Help in establishing clarity of values Other Maximum marks awarded Marks

1 1

Up to 2 Up to 2 Up to 2 1 Up to 2 1 1 10

Examiner's Comments There were few really good answers to this question. Common errors Many candidates confused the broad nature of mission statements with the more specific nature of objectives. Rather than confining discussion to the justifiable claim that a mission statement is useful because objectives can be derived from such statements, some candidates went on to argue that the mission/objectives should be specific, time bound and measurable. There was a similar tendency for candidates to claim too much for mission statements when they came to discuss the relationship between mission statements, values, culture and strategic planning.

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E2 Enterprise Management Post Exam Guide March 2011

Question 2 Discuss the ways in which the strategies of the functional areas of an organisation should support the other levels of strategy. (10 marks) Rationale The question assesses the candidates' understanding of the relationship between the different levels of strategy. It examines learning outcome A2(c) 'explain the relationship between different levels of strategy in organisations'. Suggested Approach The answer could start by explaining the different levels at which strategies are formed in an organisation. It should then develop to explain the nature of functional strategies in more detail in order to then discuss the links between functional strategies and strategies at SBU and corporate level. Weak answers just describe the different levels of strategy. Good answers make clear the relationships explicitly in terms of how functional level strategies support the organisation's corporate strategy. Marking Guide Explanation of the hierarchy of strategic decisions Diagram to show relationship Nature of functional strategies Level at which higher level strategies are implemented Building blocks for achievement of SBU/Corporate strategies Need to support rather than conflict with higher level strategies Top down/bottom up communications Level at which all members of an organisation are engaged Other Maximum marks awarded Marks Up to 3 1 Up to 2 1 1 1 1 1 1 10

Examiner's comments This question seemed to cause most difficulty for candidates. Common errors Many candidates appeared not to have an understanding of the 'other layers of strategy' referred to in the question and a significant number of candidates confused operational strategy and functional strategy even suggesting they operated at different levels. As a result, they were unable to offer a coherent answer to the question.

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E2 Enterprise Management Post Exam Guide March 2011

Question 3

(a) Describe the key characteristics of a role culture, explaining why this type of culture is no longer
appropriate for S Company. (6 marks)

(b) Recommend, with reasons, the type of culture to which S Company now needs to change.
(4 marks) Rationale The question tests candidates' comprehension of different types of culture and their ability to make recommendations of a particular cultural type appropriate for the scenario organisation. It examines learning outcome C1(b) demonstrate the importance of organisational culture'. Suggested Approach In part (a) the answer should discuss why a role culture is no longer appropriate for S Company, drawing on the key characteristics of role culture. Part (b) should develop to recommend the type of culture that the company needs to move to, providing reasons. This will involve identifying the main characteristics of the recommended type of culture. Good answers will use the information from the scenario to explain why a role culture is no longer appropriate, rather than simply describing the characteristics of culture. Marking Guide Part (a) (maximum 6 marks) Explanation of the characteristics of role culture that make it no longer appropriate for S Company, for example: Strict division of labour Formalised rules and procedures Bureaucratic decision making Rigid controls Hierarchy of authority Tightly defined job structure People do not work across boundaries needed for NPD Other relevant characteristic Part (b) (maximum 4 marks) Recommendation of appropriate culture for S Company (e.g. task culture) Reasons justifying recommendation of appropriate culture, for example: Promotes team work Focus on completing task/project Breaks down rigid hierarchies Skills and expertise most important People not hindered by job descriptions Fosters creativity and responsiveness needed in design and NPD Other relevant reason Maximum marks awarded Marks

1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 10

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E2 Enterprise Management Post Exam Guide March 2011

Examiner's Comments This question was generally well answered. Some answers were very good indeed. Common errors There was a tendency amongst some candidates to repeat bits of the scenario as part of their answer and for others to repeat points made in part (a) again in part (b), thus taking up examination time and yet gaining no additional marks.

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E2 Enterprise Management Post Exam Guide March 2011

Question 4

(a) Construct a network diagram showing the critical path for the introduction of the new production plant
for the bakery and the overall duration of the project. (4 marks)

(b) Identify the earliest time the recruitment campaign can start.
(2 marks)

(c) Identify the activities where there is float/slack time in the project, and calculate how much float/slack
time there is. (4 marks) Rationale The question tests candidates' ability to construct a network diagram and calculate various times associated with critical path analysis. It examines learning outcome B1(e) 'apply key tools and techniques including the evaluation of proposals'. Suggested Approach For part (a) the answer should include drawing a network diagram and clearly labelling the critical path and overall duration of the project. For part (b) the answer should identify the earliest time the recruitment campaign can start. For part (c) the answer should identify the activities where there is float/slack time and provide information on how much float/slack time there is.

Marking Guide (a)(maximum 4 marks) Network diagram drawn using correct conventions Identification of critical path - BFGH Identification of overall duration - 40 weeks (b)(maximum 2 marks) Identification of earliest time the recruitment campaign can start - week 24 (c)(maximum 4 marks) Activity C - 2 weeks float/slack Activity D - 2 weeks float/slack Activity A - 3 weeks float/slack Activity E - 3 weeks float/slack Maximum marks awarded

Marks

2 1 1

1 1 1 1 10

Examiner's Comments There was a marked difference between candidates who had prepared well for this question and those who had missed the necessary preparation. A large proportion of well prepared candidates gained full marks for their answer while the less well prepared scored only a handful of marks or even zero marks. Common errors Some candidates omitted to calculate float/slack, others claimed the earliest start time for recruitment was week 34 rather than week 24 as required and some made minor mistakes in their completion of the network diagram.

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E2 Enterprise Management Post Exam Guide March 2011

Question 5 Describe ONE strategic management model/framework and explain how it could be used to help DPW to understand the external environment of F Country. (10 marks) Rationale The question tests candidates' understanding of the information required to assess the external environment. It examines learning outcome A1(a) 'discuss the nature of competitive environments'. Suggested Approach Answers could develop by describing the PEST framework, explaining how it could be used to assess the external environmental factors in F Country. Good answers will develop to provide specific examples of PEST factors specific to the context of the scenario. Weaker answers will simply describe the PEST framework. Marking Guide Describes PEST framework PEST applied: Examples of political/legal environment information Examples of economic environment information Examples of social/cultural factors Examples of technical factors Answers could develop using Porter's Diamond. (If Porter's Five Forces used - maximum 4 marks as this does not examine wider external environment as required.) Maximum marks awarded 10 Marks Up to 2

Up to 2 Up to 2 Up to 3 Up to 2

Examiner's Comments This question was generally well answered, especially by those candidates who chose to use the PEST framework for their answer. Those applying Porter's Diamond model also tended to score well. Common errors Candidates choosing Porter's Five Forces model did less well because this model only covers the more immediate competitive environment and neglects the influence of the broader macro environmental factors.

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E2 Enterprise Management Post Exam Guide March 2011 SECTION B - 50 MARKS ANSWER BOTH QUESTIONS

Question 6(a) Discuss the different conflict handling strategies that could be used in managing the conflict in ZEZ Company. (13 marks) Rationale This question tests candidates appreciation of the different conflict handling strategies that could be used. It examines learning outcome C1(d) 'discuss the alternative approaches to the management of conflict'. Suggested Approach One approach would be to use Thomas's conflict handling framework. The answer should start by providing a brief explanation of the framework, then work through the different conflict handling strategies. Weak answers will simply describe the different types of conflict handling strategies. Good answers will make reference to the scenario information to illustrate the appropriateness of the different strategies for the managing of the conflict situation facing ZEZ Company. Marking Guide Explanation of conflict handling framework Avoidance Accommodation Compromise Competition Collaboration Maximum marks awarded Marks Up to 3 Up to 2 Up to 2 Up to 3 Up to 2 Up to 3 13

Examiner's Comments Candidates familiar with Thomas's typology were able to answer this question very well. Common errors A significant number of candidates appeared to have no knowledge of conflict handling strategies and therefore scored very few marks for this question.

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E2 Enterprise Management Post Exam Guide March 2011

Question 6(b) Explain the different stages of negotiation that should take place to ensure the negotiation process between senior management and the trade union representatives is effective. (12 marks) Rationale The question tests candidates' appreciation of how to undertake effective negotiation. It examines learning outcome C2(b) 'discuss the roles of negotiation and communication in the management process, both within an organisation and with external bodies'. Suggested Approach The answer should start by providing a brief explanation of negotiation. It could develop to comment on the specific factors on how negotiation should be approached to be effective. The different stages involved in negotiation should then be discussed. Weak answers will describe the stages of negotiation with no reference to the specifics in the scenario, nor what is needed to ensure negotiation is effective. Good answers will explain the range of tactics associated with effective negotiation along with the stages that effective negotiation should go through, making links to the scenario context. Marking Guide Explanation of negotiation Understanding each others' objectives Listening Anticipate reactions Determine what willing to settle on Use of persuasion Test understanding Planning phase/preparation Opening phase Bargaining phase Closing phase Other Maximum marks awarded Marks Up to 2 1 1 1 1 1 1 Up to 2 Up to 2 Up to 2 Up to 2 1 12

Examiner's Comments This was a generally well answered question with most candidates showing evidence of good preparation. Common errors Several candidates could have improved their performance by elaborating on the respective phases of negotiation.

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E2 Enterprise Management Post Exam Guide March 2011

Question 7(a) Discuss the potential problems that the hotel project could face without good project planning. (10 marks) Rationale This question tests candidates' understanding of the problems that could be encountered in a project without good project planning. It examines learning outcome 'B1(d) 'identify the characteristics of each phase in the project process'. Suggested Approach The suggested approach would be to work through the various problems that could be encountered in the hotel project without good project planning. Good answers will make reference to the project described in the scenario to illustrate the problems. Marking Guide Potential problems associated with not having clear objective, budget, time, e.g.: Unlikely an estimation of base budget can be constructed Unlikely a project schedule can be constructed Unrealistic time scales Activities not sequenced logically No realistic assessment of resource requirements Problems associated with not undertaking feasibility and risk assessment e.g.: No opportunity to assess risks No analysis of potential problems - for instance: impact on local environment community objections Vulnerable to changing client specification No defined roles and responsibilities No control systems established Health and safety issues not considered No contingency plans Maximum marks awarded Marks

1 1 1 1 1

1 1 1 1 1 1 1 1 1 10

Examiner's Comments This question was generally well answered. Common errors There was a tendency for some candidates to concentrate on the process of planning rather than the 'potential problems the hotel project could face', with the consequent loss of a few marks.

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E2 Enterprise Management Post Exam Guide March 2011

Question 7(b) Explain the contribution that different project management tools and techniques could make to help P in planning the hotel project. (15 marks) Rationale The question requires candidates to evidence their understanding of the contribution of different project management tools and techniques that can be used in planning a project. It tests learning outcome B1(e) 'apply key tools and techniques, including the evaluation of proposals'. Suggested Approach The answer should develop to identify the different project management tools and techniques and explain how they could help P in the planning of the hotel project. Good answers will explain the contribution of the different project management tools and techniques rather than just describing them. Marking Guide (Maximum 4 marks per tool/technique) Work breakdown structure Contribution - analysis of work required Activities broken down in work packages Each package defined deliverables Identifies people responsible for each activity/work package Can be used to develop task list Gantt Chart Contribution - visual way of showing sequence of activities Helps in planning Shows time taken for each activity Shows resources needed for each activity Can be used to communicate responsibilities Resource Histogram Shows resource requirements Helps in scheduling/rescheduling Network Analysis Diagram showing sequences and dependencies Arranges work packages into logical sequence Estimates time to complete each work package Calculates critical path Determines minimum possible time for project completion Identifies slack/float PERT Used to account for uncertainty in project lifecycle Estimates optimistic time if conditions ideal Estimates likely duration if conditions normal Estimates pessimistic duration if things go wrong Helps calculate contingency time allowance Marks will be awarded for other relevant tools and techniques (max 4 per tool/technique) e.g. project management software. Maximum marks awarded 15 Marks

1 1 1 1 1

1 1 1 1 1

1 1

1 1 1 1 1 1

1 1 1 1 1

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E2 Enterprise Management Post Exam Guide March 2011

Examiner's Comments This question was generally well answered. Common errors There was a tendency for some candidates to confuse 'tools and techniques' with 'methodologies' and so lose marks by concentrating on the latter at the expense of the former.

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