CIMA Chartered Management Accounting Qualification 2010 Student Support Guide Paper E2 Enterprise Management

Introduction This guide outlines matters to be considered by those wishing to sit the examination for Paper E2 Enterprise Management of the CIMA 2010 qualification. The first part compares the syllabus of Paper E2 to that of the equivalent Paper P5 in the 2005 qualification and looks at issues relating to transition from the 2005 to the 2010 qualification. It should be noted that in the new 2010 syllabus learning outcomes are shown as overarching lead outcomes, with several component outcomes resulting from that lead. The syllabus comparison displays the learning outcomes from the previous syllabus with the component learning outcomes from the new syllabus. The remainder of the guide looks at issues that are likely to be relevant to all students planning to sit this examination and ends with a series of frequently asked questions.

Overview of syllabus changes At first sight there seems to be little change in Paper E2 from the old Paper P5. All three sections are retained with the same study weighting. However, there is new material in sections A and C with some deletions to accommodate the new topics. In particular it is worth noting the addition of material on competitive environments previously seen at strategic level. The biggest change is in the individual skill levels required in specific learning outcomes. Some require a higher level of 4 or 5 while others have been reduced to 2/3. On balance though, the general skill levels in Paper E2 are similar to the old Paper P5.

Syllabus comparison Old syllabus Paper P5 P5 A - The Basis of Strategic Management - 30% New syllabus Paper E2 E2 A. Strategic Management and Assessing the Competitive Environment 30% 1 (a) discuss the nature of competitive environments; 1 (b) distinguish between different types of competitive environments. 2 (a) discuss concepts in established and emergent thinking in strategic management; 2 (b) compare and contrast approaches to strategy formulation; 2 (c) explain the relationships between different levels of strategy in organisations. Comments The syllabus weighting remains the same at 30%. Several learning outcomes and topics have been removed, including o Organisational structures o The internal strategic analysis tools o Corporate governance. However, there is new material relating to the different levels of strategy particularly regarding competitive environments. This had previously been seen in the old Paper P6 at Strategic level.

(i) explain the process of strategy formulation; (ii) explain different organisational structures; (iii) discuss concepts in contemporary thinking on strategic management; (iv) apply tools for strategic analysis appropriately; (v) explain the purpose and principles of good corporate governance; (vi) evaluate competitive situations and apply this knowledge to the organisation. P5 B - Project Management 40%

E2 B. Project Management 40%

The syllabus weighting remains the same at 40%. Some learning outcomes are now examined at different skill levels (either higher or lower). For example: 1 (e) requires application of key tools and techniques and an evaluation of proposals where the old (vi) asked for the ability to distinguish the key tools and techniques; 1 (h) requires the ability to compare and contrast project control systems while the old (xii) asked for a recommendation of appropriate control systems;

(i) identify a project and its attributes; (ii) apply suitable structures and frameworks to projects to identify common management issues; (iii) produce a basic outline of the process of project management; (iv) identify the characteristics of each phase in the project process; (v) demonstrate the role of key stakeholders in the project;

1 (a) identify a project, a programme and their attributes; 1 (b) apply suitable structures and frameworks to projects to identify common project management issues; 1 (c) construct an outline of the process of project management; 1 (d) identify the characteristics of each phase in the project process; 1 (e) apply key tools and techniques, including the evaluation of proposals;
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Old syllabus Paper P5 (vi) distinguish the key tools and techniques that would need to be applied in the project process, including the evaluation of proposals; (vii) identify methodologies and systems used by professional project managers; (viii) Identify the strategy and scope for a project; (ix) identify stakeholder groups and recommend basic strategies for the management of their perceptions and expectations; (x) Produce a basic project plan, recognising the effects of uncertainty and recommending strategies for dealing with this uncertainty, in the context of a simple project; (xi) identify structural and leadership issues that will be faced in managing a project team; (xii) recommend appropriate project control systems; (xiii) evaluate through selected review and audit, the learning outcomes from a project; (xiv) apply a process of continuous improvement to projects. P5 C - Management of Relationships - 30%

New syllabus Paper E2 1 (f) produce a basic project plan incorporating strategies for dealing with uncertainty, in the context of a simple project; 1 (g) identify structural and leadership issues that will be faced in managing a project team; 1 (h) compare and contrast project control systems; 1 (i) discuss the value of postcompletion audit; 1 (j) apply a process of continuous improvement to projects. 2 (a) produce a strategy for a project; 2 (b) recommend strategies for the management of stakeholder perceptions and expectations; 2 (c) explain the roles of key players in a project organisation.

Comments 2 (a) asks for the production of a strategy for a project while the old (viii) requires identification of the strategy and scope for a project; 1 (i) requires discussion of post-completion audit and the old (xiii) asks for evaluation through selected review and audit, of the learning outcomes from a project.

E2 C. Management of Relationships - 30%

The syllabus weighting remains the same at 30%. Some learning outcomes are now examined at different skill levels (either higher or lower). For example 1(a) requires

(i) explain the concepts of power, bureaucracy, authority, responsibility, leadership and delegation;

1 (a) discuss the concepts of power, bureaucracy, authority, responsibility, leadership and delegation;
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Old syllabus Paper P5 (ii) analyse the relationship between managers and their subordinates; (iii) discuss the roles of negotiation and communication in the management process, both within an organisation and with external bodies; (iv) explain how groups form within organisations and how this affects performance; (v) demonstrate personal time management skills; (vi) construct a set of tools for managing individuals, teams and networks, and for managing group conflict; (vii) recommend ways to deal effectively with discipline problems; (viii) explain the process of mentoring junior colleagues; (ix) discuss the importance of national cultures on management style; (x) explain the importance of business ethics and corporate governance to the organisation and its stakeholders; (xi) identify methods of conducting research and gathering data as part of the managerial process.

New syllabus Paper E2 1 (b) demonstrate the importance of organisational culture; 1 (c) identify the nature and causes of conflict; 1 (d) discuss alternative approaches to the management of conflict. 2 (a) analyse the relationship between managers and their subordinates, including legal aspects affecting work and employment; 2 (b) discuss the roles of negotiation and communication in the management process, both within an organisation and with external bodies; 2 (c) discuss the effectiveness of relationships between the finance function and other parts of the organisation and with external stakeholders; 2 (d) Identify tools for managing and controlling individuals, teams and networks, and for managing group conflict; 2 (e) compare and contrast ways to deal effectively with discipline problems; 2 (f) explain the process and importance of mentoring junior colleagues; 2 (g) analyse issues of business ethics and corporate governance.

Comments discussion of the concepts of power, bureaucracy, authority, responsibility, leadership and delegation while the old (i) asks for an explanation of the concepts. 1(b) asks for a demonstration of the importance of organisational culture while the old (ix) requires a discussion of the area. 2(e) needs a compare and contrast approach to dealing effectively with discipline problems while the old (viii) asks for a recommendation on ways to deal effectively with this area. 2(g) demands analysis of issues of business ethics and corporate governance while the old (x) asks for an explanation of the importance of business ethics and corporate governance. This section now contains specific material relating to conflict management and the relationship between the finance function and stakeholders

Knowledge gaps If you have successfully completed Paper P4 on the 2005 syllabus and now have to sit Paper E2 on the 2010 syllabus, the following should be noted: (a) New Paper E1 contains a section on the global environment which students will not have covered on the 2005 syllabus. E2 will assume some knowledge in this area and students are recommended to review this before starting their studies for Paper E2. Assessment methodology There will be a written examination paper of three hours, plus 20 minutes of pre-examination question paper reading time. The examination paper will have the following sections: Section A 50 marks Five compulsory medium answer questions, each worth ten marks. Short scenarios may be given, to which some or all questions relate. Section B 50 marks One or two compulsory questions. Short scenarios may be given, to which questions relate. The Enterprise Management examination will primarily test the skills of comprehension, application and analysis using verbs from levels 2 - 4 of the CIMA verb hierarchy. You will be expected to use all of your knowledge and skills, gained from your study of the Enterprise Management syllabus, to explain and apply the various concepts about which you have learned. The scenarios used in this examination are based on real life, though simplified, and prepare you for the Strategic level examinations. Preparing for the exam At the Management Level, textbook learning is seldom sufficient. In order to develop the required skills of application and analysis, you need to use your knowledge to solve structured and sometimes unstructured problems. This can best be done by practising examination-standard questions. You should also read articles in the business press, to recognise how the tools and techniques from the syllabus are used in real life.

FAQs Question I have passed the lower P4 Managerial level examination of the 2005 CIMA syllabus, and this is my first attempt at Paper E2. Have I missed anything that I need to catch up on? I have failed old Paper P5. Where should I concentrate my efforts before doing my resit? Answer Yes. The new material in Section A of the Paper E1 syllabus, relating to the global environment.

In the following areas: 1. You need to concentrate on the new learning outcomes relating to conflict management and
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Question

Answer the levels of strategy 2. You need to look through the detail of the syllabus content, concentrating on those topics which are new (such as those relating to conflict management). 3. You need to pay particular attention to those learning outcomes which, although similar to previously, are now examinable at a higher skill level (i.e. the verb used in the learning outcome is at a higher level in the verb hierarchy than previously). 4. The assessment methodology for the Management level has changed. There are now no objective test questions, and a greater emphasis on application of your knowledge. You should look at (and attempt) the specimen paper for this examination (see below)

Where can I find the detailed syllabus for this paper? Will there be a specimen examination paper? What knowledge is assumed prior to studying this syllabus?

On the CIMA website under the 2010 syllabus. Yes it will be available on the CIMA website at the end of October. It is assumed that you have passed (or been exempted from) the Operational level Paper E1 (or exceptionally you are sitting E1 at the same time as E2). You should read the support guide for that paper.

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