(b) Explain how the process of developing scenarios might help John better understand the macro-environmentalfactors influencing Airtite’s future strategy. (8 marks)
题目
(b) Explain how the process of developing scenarios might help John better understand the macro-environmental
factors influencing Airtite’s future strategy. (8 marks)
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更多“(b) Explain how the process of developing scenarios might help John better understand the macro-environmentalfactors influencing Airtite’s future strategy. (8 marks)”相关问题
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第1题：
(c) Explain how Perfect Shopper might re-structure its downstream supply chain to address the problems
identified in the scenario. (10 marks)
正确答案：
(c) A number of opportunities appear to exist in the downstream supply chain.
As already mentioned above, Perfect Shopper can revisit its contract distribution arrangements. At present, distribution to
neighbourhood shops is in the hands of locally appointed contract distributors. As already suggested, it may be possible to
contract one integrated logistics company to carry out both inbound and outbound logistics, so gaining economies of scale
and opportunities for branding.
One of the problems identified in the independent report was the inflexibility of the ordering and delivering system. The
ordering system appears to be built around a fixed standard delivery made every two weeks, agreed in advance for a three
month period. Variations can be made to this standard order, but only increases – not decreases. Presumably, this
arrangement is required to allow Perfect Shopper to forecast demand over a three month period and to place bulk orders to
reflect these commitments. However, this may cause at least two problems. The first is that participating shops place a
relatively low standard order and rely on variations to fulfil demand. This causes problems for Perfect Shopper. Secondly, any
unpredictable fall in demand during the three month period leads to the shop having storage problems and unsold stock. This
potentially creates problems for the shop owner, who may also begin to question the value of the franchise. Hence Perfect
Shopper might wish to consider a much more flexible system where orders can be made to match demand and deliveries
can be made as required. This would also remove the requirement for a three monthly meeting between the franchisee andthe sales representative from Perfect Shopper. Investments in IT systems will be required to support this, with participating
shops placing orders over the Internet to reflect their requirements. This move towards a more flexible purchasing arrangement
may also make the outsourcing of warehousing and distribution even more appealing.
Perfect Shopper may also wish to investigate whether they can also provide value added services to customers, which not
only simplify the ordering system but also allow the shop managers to better understand their customers and fulfil their
requirements. The supply chain may legitimately include the customer’s customers, particularly for franchisers. This is already
acknowledged because Perfect Shopper produces tailored marketing material aimed at the end-consumer. Point of Sales (PoS)
devices feeding information back to Perfect Shopper would allow sales information to be analysed and fed back to the
shopkeeper as well as allowing automatic replenishment based on purchasing trends. However, this may be culturally difficult
for independent neighbourhood shopkeepers to accept. Furthermore, it would potentially include information outside the
products offered by Perfect Shopper and the implications of this would have to be considered. However, a whole shop sales
analysis might be a useful service to offer existing and potential franchisees.
Customers are increasingly willing to order products over the Internet. It seems unlikely that individual shopkeepers would be
able to establish and maintain their own Internet-based service. It would be useful for Perfect Shopper to explore the potential
of establishing a central website with customers placing orders from local shops. Again there are issues about scope, because
Perfect Shopper does not offer a whole-shop service. However, Michael de Kare-Silver has identified groceries as a product
area that has good potential for Internet purchase. In his electronic shopping potential test any product scoring over 20 hasgood potential. Groceries scored 27. -
第2题：
3 Airtite was set up in 2000 as a low cost airline operating from a number of regional airports in Europe. Using these
less popular airports was a much cheaper alternative to the major city airports and supported Airtite’s low cost service,
modelled on existing low cost competitors. These providers had effectively transformed air travel in Europe and, in so
doing, contributed to an unparalleled expansion in airline travel by both business and leisure passengers. Airtite used
one type of aircraft, tightly controlled staffing levels and costs, relied entirely on online bookings and achieved high
levels of capacity utilisation and punctuality. Its route network had grown each year and included new routes to some
of the 15 countries that had joined the EU in 2004. Airtite’s founder and Chief Executive, John Sykes, was an
aggressive businessman ever willing to challenge governments and competitors wherever they impeded his airline and
looking to generate positive publicity whenever possible.
John is now looking to develop a strategy which will secure Airtite’s growth and development over the next 10 years.
He can see a number of environmental trends emerging which could significantly affect the success or otherwise of
any developed strategy. 2006 had seen fuel costs continue to rise reflecting the continuing uncertainty over global
fuel supplies. Fuel costs currently account for 25% of Airtite’s operating costs. Conversely, the improving efficiency of
aircraft engines and the next generation of larger aircraft are increasing the operating efficiency of newer aircraft and
reducing harmful emissions. Concern with fuel also extends to pollution effects on global warming and climate
change. Co-ordinated global action on aircraft emissions cannot be ruled out, either in the form. of higher taxes on
pollution or limits on the growth in air travel. On the positive side European governments are anxious to continue to
support increased competition in air travel and to encourage low cost operators competing against the over-staffed
and loss-making national flag carriers.
The signals for future passenger demand are also confused. Much of the increased demand for low cost air travel to
date has come from increased leisure travel by families and retired people. However families are predicted to become
smaller and the population increasingly aged. In addition there are concerns over the ability of countries to support
the increasing number of one-parent families with limited incomes and an ageing population dependent on state
pensions. There is a distinct possibility of the retirement age being increased and governments demanding a higher
level of personal contribution towards an individual’s retirement pension. Such a change will have a significant impact
on an individual’s disposable income and with people working longer reduce the numbers able to enjoy leisure travel.
Finally, air travel will continue to reflect global economic activity and associated economic booms and slumps together
with global political instability in the shape of wars, terrorism and natural disasters.
John is uncertain as to how to take account of these conflicting trends in the development of Airtite’s 10-year strategy
and has asked for your advice.
Required:
(a) Using models where appropriate, provide John with an environmental analysis of the conditions affecting the
low cost air travel industry. (12 marks)
正确答案：
(a) Environmental Analysis
Clearly, both the macro-environment and the industry environment facing Airtite are becoming more challenging and scanning
the environment and understanding the relative significance of the challenges is a key step in developing a future strategy to
deal with it. Many models and tools and techniques are available to assess the size of the competitive threats facing Airtite.
One of the earlier scanning models looks to measure whether the environment an organisation faces is becoming more
complex and more dynamic. Evidence from the scenario suggests both are occurring and this means it is becoming
increasingly difficult to predict the future nature of competition from what has happened in the past. Airtite’s future is linked
to an increasingly global environment and many conflicting and contradictory factors require the company to develop a
process through which these factors are considered on a regular and systematic basis.
Johnson and Scholes suggest there are five steps in terms of environmental analysis:
Step 1 Audit of environmental influences
Step 2 Assessment of the nature of the environment
Step 3 Identification of the key environmental forces
Step 4 Identification of competitive position
Step 5 Identification of the principal opportunities and threats
Systematic consideration of each of these steps leads to an understanding of the strategic position of the firm.
A PESTEL analysis is part of the process of environmental appraisal and it is important for John to recognise those parts of
its environment it can influence. All too often firms can regard themselves as ‘victims’ of the chosen environment, failing to
recognise that through their strategic decisions they can profoundly change the competitive environment for their current or
potential competitors. A good PESTEL analysis inevitably links into an informed SWOT analysis. In both instances it is
necessary to isolate the key forces causing environmental change – simply creating a long list of factors may simply convince
you of your inability to change the situation.
Once having decided which are the critical factors, it is then necessary to decide on the likelihood of a particular
environmental change occurring and the significance of its impact on the firm. Matching the competitive capability of the firm
against the attractiveness of the business sector Airtite is operating in will provide an understanding of the firm’s competitive
position and the options open to it. Many other models and tools and techniques are available, including Porter’s five forces,product life cycle analysis and scenario building to generate alternative strategic responses. -
第3题：
Matthew Black is well aware that the achievement of the growth targets for the 2005 to 2007 period will depend on
successful implementation of the strategy, affecting all parts of the company’s activities.
(c) Explain the key issues affecting implementation and the changes necessary to achieve Universal’s ambitious
growth strategy. (15 marks)
正确答案：
(c) Matthew has set ambitious growth goals for the 2005–7 period in his quest to become ‘unquestioned leader’ in their region
and to roll out the model nationally. Clearly there are choices to be made in terms of implementing the strategy and much of
the success of the strategy will depend on the extent to which appropriate resources, structure and systems are in place to
facilitate growth. Many alternative models consider how strategy is implemented, but one of the most popular is the McKinsey
7S model in which the 7S’s are strategy, structure, systems (the so called ‘hard’ or tangible variables) and staff, style, skills
and shared values (the ‘soft’ or less tangible variables). The 7S model has a number of key assumptions built into it. Normally
we tend to think of strategy being the first variable in the strategic management process, with all other variables dependent
on the chosen strategy. However, Peters and Waterman argue that the assertion, for instance, that a firm’s structure follows
from its strategy ignores the fact that a particular structure may equally influence the strategy chosen. If we have a simple
functional structure, this may severely limit the ability of the firm to move or diversify into other areas of business. Equally
important is to understand the linkages between the variables, just as with the value chain, recognising if you change one of
the variables you then have to see the consequences for each of the other variables.
Our earlier analysis will have provided us with an understanding of the strategy being pursued by Universal. It is now looking
to offer its service to other parts of the country and become a national provider. In strategy terms, this is a process of growth
by way of market development, with the same service in different regions or markets. Universal’s experience is dominated by
operating in one region and the consequences of moving into new regions should not be underestimated. There are interesting
examples of companies having conspicuous success in their home territory but finding competition and customer relationships
very different outside their home market, even in the same country.
Matthew has already recognised the need to create a new structure to handle the growth strategy. This is ‘growth by
geographic expansion’ and while it may be the most simple growth strategy to control and co-ordinate, the creation of regional
centres managing the sales and installations in the region will add an additional level of administration and complexity.
This structural change will have significant implications for the systems employed by the company. Development of a national
operation will necessitate new methods of communication and reporting. Customer service levels depend on the management
information systems available. There is an opportunity for the new regions to benchmark themselves against the home region.
Efficient systems lie at the heart of Universal’s ability to offer a higher value added service to the customer. Standardised
processes have allowed a ‘no surprises’ policy to be successfully implemented. The extent to which the same business models
can be simply repeated in region after region will have to be tested. There is little mention of IT systems, but the pace of
expansion should be closely linked to the system’s ability to cope with increased demands.
Staff – reference has been made earlier to Universal being a people business, able to deliver a better quality of service to the
customer. The heavy reliance on self-employed staff means that a very active recruitment and training process will have to
be in place as Universal moves into different regions. New layers and levels of management will have implications for the
recruitment and development of both managers and staff reporting to them. The degrees of autonomy given to each of the
regions will materially affect the way they operate. Reward systems clearly link both staff and systems dimensions and there
is need to ensure that the right number and calibre of staff are recruited to expand the market coverage. Does Universal have
a staffing model that is easily ‘rolled’ out into other regions?
Equally important are any changes to the skill set needed by staff to operate nationally. Matthew feels that the model is
relatively lowly skilled with staff controlled through standardised systems. However, change is inevitable and the recruitment
and retention of staff in a labour intensive service will be key to success.
Universal is very much a family business dominated by the two founding brothers. Even with expansion being entirely within
their local region the rate of growth to a ￡6 million turnover business predicted to treble in size over the next three years, will
necessitate changes in the style. of management. Time management issues amongst the owner-managers have already begun
to emerge and a move from involvement with day-to-day management to a more strategic role is needed. Certainly growth to
date has been more emergent than planned, but vision and planning will be equally necessary as the firm operates nationally.
There are tensions for Matthew in making sure that his change in role and responsibilities does not result in him becoming
remote from his management and staff. Communication of the core values of the company will become even more necessary
and communication is key to managing the growth process.
The 7S’s is not the only model that will be useful in understanding the problems of implementing the growth strategy.
Greiner’s growth model has merit in drawing attention to the stages a growing business following an organic growth strategy
can expect to go through. Johnson and Scholes now refer to strategic implementation as ‘strategy in action’ made up of three
key activities, structuring an organisation to support successful performance. Universal’s move from a regional to a national
company will call for different structures and relationships. Enabling links the particular strengths and competences, built
round separate resource areas, to be combined to support the strategy – which in turn recognises and builds on identified
strengths. Finally, growth strategies will involve change and the management of the change process. They argue that change
will involve the need to change day-to-day routines and cultural aspects of the firm, together with overcoming resistance to
change.
All too often, a company grows at a rate which exceeds the capacity to implement the necessary change. This can expose
the firm to high levels of risk. Growth pressures can stimulate positive change and innovation, but in companies such as
Universal where considerable stress is placed on performance, targets and quality may be a casualty. Equally concerning is
if the rate of growth exceeds the capacity to invest in more people and technology. Growing the people and the systems isalmost a prerequisite to growing the business. -
第4题：
(b) Compare and contrast Gray, Owen and Adams’s ‘pristine capitalist’ position with the ‘social contractarian’
position. Explain how these positions would affect responses to stakeholder concerns in the new stadium
project. (8 marks)
正确答案：
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第5题：
(c) Explain how absolutist (dogmatic) and relativist (pragmatic) ethical assumptions would affect the outcome
of Anne’s decision. (6 marks)
正确答案：
(c) Absolutism and relativism
Absolutism and relativism represent two extreme positions of ethical assumptions.
Definitions
An absolutist assumption is one that believes that there are ‘eternal’ rules that should guide all ethical and moral decision
making in all situations. Accordingly, in any given situation, there is likely to be one right course of action regardless of the
outcome. An absolutist believes that this should be chosen regardless of the consequences or the cost. A dogmatic approach
to morality is an example of an absolutist approach to ethics. A dogmatic assumption is one that is accepted without
discussion or debate.
Relativist assumptions are ‘situational’ in nature. Rather than arguing that there is a single right choice, a relativist will tend
to adopt a pragmatic approach and decide, in the light of the situation being considered, which is the best outcome. This will
involve a decision on what outcome is the most favourable and that is a matter of personal judgment.
Outcomes
If Anne were to adopt absolutist/dogmatic assumptions, she would be likely to decide that she would need to pursue what
she perceives is the right course of action regardless of cost to herself or the relationship with the client or her manager. Given
that she unearthed a suspect and unaccounted-for payment, and that she received an inadequate explanation from the client,
she would probably recommend extension to the audit beyond the weekend.
If Ann were to adopt relativist or pragmatic assumptions, she would have a potentially much more complicated decision to
make. She would have to decide whether it was more important, ethically, to yield to the pressure from Zachary in the
interests of her short-term career interests or ‘hold out’ to protect the interests of the shareholders. Anne could recommend
sign off and trust the FD’s explanation but she is more likely to seek further evidence or assurance from the company before
she does so. -
第6题：
(c) Identify TWO QUALITATIVE benefits that might arise as a consequence of the investment in a new IT system
and explain how you would attempt to assess them. (4 marks)
正确答案：
(c) One of the main qualitative benefits that may arise from an investment in a new IT system by Moffat Ltd is the improved level
of service to its customers in the form. of reduced waiting times which may arise as a consequence of better scheduling of
appointments, inventory management etc. This could be assessed via the introduction of a questionnaire requiring customers
to rate the service that they have received from their recent visit to a location within Moffat Ltd according to specific criteria
such as adherence to appointment times, time taken to service the vehicle, cleanliness of the vehicle, attitude of staff etc.
Alternatively a follow-up telephone call from a centralised customer services department may be made by Moffat Ltd
personnel in order to gather such information.
Another qualitative benefit of the proposed investment may arise in the form. of competitive advantage. Improvements in
customer specific information and service levels may give Moffat Ltd a competitive advantage. Likewise, improved inventory
management may enable costs to be reduced thereby enabling a ‘win-win’ relationship to be enjoyed with its customers. -
第7题：
(ii) Explain THREE strategies that might be adopted in order to improve the future prospects of Diverse
Holdings Plc. (6 marks)
正确答案：
(ii) The forecast situation of Diverse Holdings Plc is not without its problems. KAL and OPL require the immediate attention
of management. The position of KAL is precarious to say the least. There is a choice of strategies for it:
(i) Outsource the manufacture of appliances
(ii) Set up a manufacturing operation overseas
(ii) Withdraw from the market.
Each alternative must be assessed. Whatever decision is taken it is unlikely to affect the other four subsidiaries.
PSL is also independent of the other subsidiaries. A strategic decision to widen its range of products and outlets must
surely help. Hence management should endeavour to find new markets for its products, which are separate and distinct
from those markets served by its appointed distributors.
21
In order to improve the prospects of OPL management need to adopt appropriate strategies since at the present time the
company appears to be in a high growth market but is unable to capture a reasonable market share. Perhaps the answer
lies in increased or more effective advertising of the endorsement of the product range by health and safety experts.
Management should endeavour to develop a strategy to integrate further its subsidiaries so that they can benefit from
each other and also derive as much synergy as possible from the acquisition of HTL.
It is of paramount importance that management ensure that sufficient funds are channelled into growing OFL and HTL,
which are both showing a rising trend in profitability. The group has depleted cash reserves which must to some extent
be attributable to the purchase of HTL. It is possible that the divestment of KAL would provide some much needed
funding. -
第8题：
(c) Explain how the use of activity-based techniques may benefit Taliesin Ltd. (5 marks)
正确答案：
(c) The usefulness of activity-based techniques is accentuated in situations where overheads comprise a significant proportion of
product costs. Manufacturing overheads comprise 30·9% of turnover during the year ended 31 May 2005. Traditional
methods of allocating overheads to products might result in product cost information which is misleading and detrimental to
managerial decision-making. Calculations of product costs are more prone to error in situations where higher levels of
overhead exist. The consequences can prove disastrous as, for example, in the under-pricing or over-pricing of products.
Since Taliesin Ltd is going to confine its activities to its home country it must be prepared to face increased competition and
this increases the need for greater visibility and more accurate product cost information.
At present, Taliesin Ltd offers a range of products which is increasing in number and this may lead to the need for a more
detailed costing system. Traditional absorption systems might well be inadequate as the number of product variants increases.
One would expect that each new product developed is more complex than its predecessors. The company would probably
start with simple Vanilla, then a few basic flavours but as Taliesin Ltd has expanded one would expect it to take longer to
originate and test new products until they are ready to be introduced. It will probably take longer to mix the ingredients for a
run of each product.
These two, development and mixing ingredients, are examples of activities which arise when new products are considered.
If traditional absorption costing and budgeting are used based on machine-time in production then the effect of these activities
would be ignored.
In order to gain a full appreciation of the impact of new product introduction activity-based techniques should be used to
guide Taliesin Ltd into the easiest way to maintain its policy of growth. It may be a better decision to expand abroad or into
new markets at home with the existing products than pursue growth by introducing new products to a dwindling number of
customers.
We are not told of the composition of the customer base of Taliesin Ltd. However, one thing we do know is that the scope of
activity-based techniques extends beyond products and services. For example, the application of activity-based costing can
provide vital information that enables management to undertake customer profitability analysis, thereby further improving
management decision-making and operating performance.
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第9题：
(c) Explain the term ‘target costing’ and how it may be applied by GWCC. Briefly discuss any potential
limitations in its application. (8 marks)
正确答案：
(c) Target costing should be viewed as an integral part of a strategic profit management system. The initial consideration in target
costing is the determination of an estimate of the selling price for a new product which will enable a firm to capture its required
share of the market. In this particular example, Superstores plc, which on the face of it looks a powerful commercial
organisation, wishes to apply a 35% mark-up on the purchase price of each cake from GWCC. Since Superstores plc has
already decided on a launch price of ￡20·25 then it follows that the maximum selling price that can be charged by GWCC
is (100/135) x ￡20·25 which is ￡15·00.
This is clearly a situation which lends itself to the application of target costing/pricing techniques as in essence GWCC can
see the extent to which they fall short of the required level of return with regard to a contract with Superstores plc which ends
after twelve months. Thus it is necessary to reduce the total costs by ￡556,029 to this figure in order to achieve the desired
level of profit, having regard to the rate of return required on new capital investment. The deduction of required profit from
the proposed selling price will produce a target price that must be met in order to ensure that the desired rate of return is
obtained. Thus the main theme that underpins target costing can be seen to be ‘what should a product cost in order to achieve
the desired level of return’.
Target costing will necessitate comparison of current estimated cost levels against the target level which must be achieved if
the desired levels of profitability, and hence return on investment, are to be achieved. Thus where a gap exists between the
current estimated cost levels and the target cost, it is essential that this gap be closed.
The Directors of GWCC plc should be aware of the fact that it is far easier to ‘design out’ cost during the pre-production phase
than to ‘control out’ cost during the production phase. Thus cost reduction at this stage of a product’s life cycle is of critical
significance to business success.
A number of techniques may be employed in order to help in the achievement and maintenance of the desired level of target
cost. Attention should be focussed upon the identification of value added and non-value added activities with the aim of the
elimination of the latter. The product should be developed in an atmosphere of ‘continuous improvement’. In this regard, total
quality techniques such as the use of Quality circles may be used in attempting to find ways of achieving reductions in product
cost.
Value engineering techniques can be used to evaluate necessary product features such as the quality of materials used. It is
essential that a collaborative approach is taken by the management of GWCC and that all interested parties such as suppliers
and customers are closely involved in order to engineer product enhancements at reduced cost.
The degree of success that will be achieved by GWCC via the application of target costing principles will be very much
dependent on the extent of ‘flexibility’ in variable costs. Also the accuracy of information gathered by GWCC will assume
critical importance because the use of inaccurate information will produce calculated ‘cost gaps’ which are meaningless and
render the application of target costing principles of little value. -
第10题：
(c) Explain how the introduction of an ERPS could impact on the role of management accountants. (5 marks)
正确答案：
(c) The introduction of ERPS has the potential to have a significant impact on the work of management accountants. The use of
ERPS causes a substantial reduction in the gathering and processing of routine information by management accountants.
Instead of relying on management accountants to provide them with information, managers are able to access the system to
obtain the information they require directly via a suitable electronic access medium.
ERPS integrate separate business functions in one system for the entire organisation and therefore co-ordination is usually
undertaken centrally by information management specialists who have a dual responsibility for the implementation and
operation of the system.
ERPS perform. routine tasks that not so long ago were seen as an essential part of the daily routines of management
accountants, for example perpetual inventory valuation. Therefore if the value of the role of management accountants is not
to be diminished then it is of necessity that management accountants should seek to expand their roles within their
organisations.
The management accountant will also control and audit the ERPS data input and analysis. Hence the implementation of ERPS
provides the management accountant with an opportunity to change the emphasis of their role from information gathering
and processing to that of the role of advisers and internal consultants to their organisations. This new role will require
management accountants to be involved in interpreting the information generated from the ERPS and to provide business
support for all levels of management within an organisation. -
第11题：
(ii) Explain how the inclusion of rental income in Coral’s UK income tax computation could affect the
income tax due on her dividend income. (2 marks)
You are not required to prepare calculations for part (b) of this question.
Note: you should assume that the tax rates and allowances for the tax year 2006/07 and for the financial year to
31 March 2007 will continue to apply for the foreseeable future.
正确答案：
(ii) The effect of taxable rental income on the tax due on Coral’s dividend income
Remitting rental income to the UK may cause some of Coral’s dividend income currently falling within the basic rate
band to fall within the higher rate band. The effect of this would be to increase the tax on the gross dividend income
from 0% (10% less the 10% tax credit) to 221/2% (321/2% less 10%).
Tutorial note
It would be equally acceptable to state that the effective rate of tax on the dividend income would increase from 0%
to 25%. -
第12题：
（）can help organizations to better understand the information contained within the data and will also tify the data that is most important to the business and future business decisions.A.DatA.processing system
B.Big DatA.analytics
C.ClouD.computing
D.Database management答案：A解析：本题考查计算机专业英语知识（）可以帮助组织更好地了解数据中包含的信息，还可以帮助识别对业务和末来业务决策最重要的数据A 数据处理系统B 大数据分析C 云计算D 数据库管理 -
第13题：
(b) Good Sports Limited has successfully followed a niche strategy to date.
Assess the extent to which an appropriate e-business strategy could help support such a niche strategy.
(8 marks)
正确答案：
(b) Good Sports has pursued a conscious niche or focus differentiation strategy, seeking to serve a local market in a way that
isolates it from the competition of the large national sports good retailers competing on the basis of supplying famous brands
at highly competitive prices. Does it make strategic sense for Good Sports to make the heavy investment necessary to supply
goods online? Will this enhance its ability to supply their chosen market?
In terms of price, e-business is bringing much greater price transparency – the problem for companies like Good Sports is
that customers may use their expertise to research into a particular type and brand of sports equipment and then simply
search the Internet for the cheapest supply. Porter in an article examining the impact of the Internet argues that rather than
making strategy obsolete it has in fact made it more important. The Internet has tended to weaken industry profitability and
made it more difficult to hold onto operational advantages. Choosing which customers you serve and how are even more
critical decisions.
However the personal advice and performance side of the business could be linked to new ways of promoting the product
and communicating with the customer. The development of customer communities referred to above could be a real way of
increasing customer loyalty. The partners are anxious to avoid head-on competition with the national retailers. One way of
increasing the size and strength of the niche they occupy is to use the Internet as a means of targeting their particular
customers and providing insights into the use and performance of certain types of equipment by local clubs and users. There
is considerable scope for innovation that enhances the service offered to their customers. As always there is a need to balance
the costs and benefits of time spent. The Internet can provide a relatively cost effective way of providing greater service to
their customers. There is little in the scenario to suggest they have reached saturation point in their chosen niche market.
Overall there is a need for Good Sports to decide what and where its market is and how this can be improved by the use ofe-business. -
第14题：
(b) What advantages and disadvantages might result from outsourcing Global Imaging’s HR function?
(8 marks)
正确答案：
(b) It is important to note that there is nothing in the nature of the activities carried out by HR staff and departments that prevents
outsourcing being looked at as a serious option. Indeed, amongst larger companies the outsourcing of some parts of the HR
function is already well under way, with one source estimating that HR outsourcing is growing by 27% each year. Paul,
therefore, needs to look at the HR activities identified above and assess the advantages and disadvantages of outsourcing a
particular HR activity. Outsourcing certain parts of the recruitment process has long been accepted, with professional
recruitment agencies and ‘head-hunters’ being heavily involved in the advertising and short listing of candidates for senior
management positions. Some HR specialists argue that outsourcing much of the routine personnel work, including
maintaining employees’ records, frees the HR specialist to make a real contribution to the strategic planning process. One
study argues that ‘HR should become a partner with senior and line managers in strategy execution’.
If Paul is able to outsource the routine HR activities this will free him to contribute to the development of the growth strategy
and the critical people needs that strategy will require. In many ways the HR specialist is in a unique position to assess current
skills and capabilities of existing staff and the extent to which these can be ‘leveraged’ to achieve the desired strategy. In
Hamel and Prahalad’s terms this strategy is likely to ‘stretch’ the people resources of the company and require the recruitment
of additional staff with the relevant capabilities. Paul needs to show how long it will take to develop the necessary staff
resources as this will significantly influence the time needed to achieve the growth strategy.
Outsourcing passes on to the provider the heavy investment needed if the company sets up its own internal HR services with
much of this investment now going into web-based systems. The benefits are reduced costs and improved service quality.
The downside is a perceived loss of control and a reduced ability to differentiate the HR function from that of competitors.
Issues of employee confidentiality are also relevant in the decision to outsource.
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第15题：
(b) How might the marketing mix vary between the three channels Helen is considering using? (8 marks)
正确答案：
(b) The analysis of each of the market entry strategies has begun the process of identifying how the marketing mix of product,
price, place and promotion will vary significantly between the three outlets.
Product – here the nature of the product in terms of recipes and product range can be varied reasonably easily to meet the
demands of the outlet.
Price – again this will vary in significance between the three outlets with the greatest pressure coming from the supermarkets
and catering wholesalers. Margins may come under pressure with the supermarkets looking for a contribution to sales
promotions.
Promotion – here the issue of brand development is a crucial factor. Using her own brand, Helen can develop the product
range and extend the outlets she sells through.
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第16题：
(b) Using the TARA framework, construct four possible strategies for managing the risk presented by Product 2.
Your answer should describe each strategy and explain how each might be applied in the case.
(10 marks)
正确答案：
(b) Risk management strategies and Chen Products
Risk transference strategy
This would involve the company accepting a portion of the risk and seeking to transfer a part to a third party. Although an
unlikely possibility given the state of existing claims, insurance against future claims would serve to limit Chen’s potential
losses and place a limit on its losses. Outsourcing manufacture may be a way of transferring risk if the ourtsourcee can be
persuaded to accept some of the product liability.
Risk avoidance strategy
An avoidance strategy involves discontinuing the activity that is exposing the company to risk. In the case of Chen this would
involve ceasing production of Product 2. This would be pursued if the impact (hazard) and probability of incurring an
acceptable level of liability were both considered to be unacceptably high and there were no options for transference or
reduction.
Risk reduction strategy
A risk reduction strategy involves seeking to retain a component of the risk (in order to enjoy the return assumed to be
associated with that risk) but to reduce it and thereby limit its ability to create liability. Chen produces four products and it
could reconfigure its production capacity to produce proportionately more of Products 1, 3 and 4 and proportionately less of
Product 2. This would reduce Product 2 in the overall portfolio and therefore Chen’s exposure to its risks. This would need
to be associated with instructions to other departments (e.g. sales and marketing) to similarly reconfigure activities to sell
more of the other products and less of Product 2.
Risk acceptance strategy
A risk acceptance strategy involves taking limited or no action to reduce the exposure to risk and would be taken if the returns
expected from bearing the risk were expected to be greater than the potential liabilities. The case mentions that Product 2 is
highly profitable and it may be that the returns attainable by maintaining and even increasing Product 2’s sales are worth the
liabilities incurred by compensation claims. This is a risk acceptance strategy. -
第17题：
(b) Identify and explain THREE approaches that the directors of Moffat Ltd might apply in assessing the
QUALITATIVE benefits of the proposed investment in a new IT system. (6 marks)
正确答案：
(b) One approach that the directors of Moffat Ltd could adopt would be to ignore the qualitative benefits that may arise on the
basis that there is too much subjectivity involved in their assessment. The problem that this causes is that the investment will
probably look unattractive since all costs will be included in the evaluation whereas significant benefits and savings will have
been ignored. Hence such an approach is lacking in substance and is not recommended.
An alternative approach would involve attempting to attribute values to each of the identified benefits that are qualitative in
nature. Such an approach will necessitate the use of management estimates in order to derive the cash flows to be
incorporated in a cost benefit analysis. The problems inherent in this approach include gaining consensus among interested
parties regarding the footing of the assumptions from which estimated cash flows have been derived. Furthermore, if the
proposed investment does take place then it may well be impossible to prove that the claimed benefits of the new system
have actually been realised.
Perhaps the preferred approach is to acknowledge the existence of qualitative benefits and attempt to assess them in a
reasonable manner acceptable to all parties including the company’s bank. The financial evaluation would then not only
incorporate ‘hard’ facts relating to costs and benefits that are quantitative in nature, but also would include details of
qualitative benefits which management consider exist but have not attempted to assess in financial terms. Such benefits might
include, for example, the average time saved by location managers in analysing information during each operating period.
Alternatively the management of Moffat Ltd could attempt to express qualitative benefits in specific terms linked to a hierarchy
of organisational requirements. For example, qualitative benefits could be categorised as being:
(1) Essential to the business
(2) Very useful attributes
(3) Desirable, but not essential
(4) Possible, if funding is available
(5) Doubtful and difficult to justify. -
第18题：
(b) Explain how the use of SWOT analysis may be of assistance to the management of Diverse Holdings Plc.
(3 marks)
正确答案：
(b) The use of SWOT analysis will focus management attention on current strengths and weaknesses of each subsidiary company
which will be of assistance in the formulating of the business strategy of Diverse Holdings Plc. It will also enable management
to monitor trends and developments in the constantly changing environments of their subsidiaries. Each trend or development
may be classified as an opportunity or a threat that will provide a stimulus for an appropriate management response.
Management can make an assessment of the feasibility of required actions in order that the company may capitalise upon
opportunities whilst considering how best to negate or minimise the effect of any threats.
A SWOT analysis should assist the management of Diverse Holdings Plc as they must identify their strengths, weaknesses,
opportunities and threats. These may be classified as follows:
Strengths which appear to include both OFL and HTL.
Weaknesses which must include PSL and its limited outlets, which generate little growth and could collapse overnight. KAL
is also a weakness due to its declining profitability.
Opportunities where OFT, HTL and OPL are operating in growth markets.
Threats from which KAL is suffering.
If these four categories are identified and analysed then the group should be strengthened. -
第19题：
(b) Explain how the adoption of residual income (RI) using the annuity method of depreciation might prove to
be a superior basis for the management incentive plan operated by NCL plc.
(N.B. No illustrative calculations should be incorporated into your explanation). (4 marks)
正确答案：
(b) The use of residual income as a basis for the management incentive plan operated by NCL plc would have the following
advantages:
Divisional management would be more willing to accept a project with a positive residual income and this would contribute
to the improved performance of NCL plc. Also, the disincentive to accept a project with a positive residual income but a return
on investment regarded by divisional management as not being in their best interests would be removed, because divisional
management would be rewarded.
The use of annuity depreciation may improve performance appraisal by removing the effect of straight-line depreciation which
tends to distort project returns especially in the early years of a project’s life when invested capital remains relatively high due
to the constant depreciation charge. The residual income approach using annuity depreciation will only match the NPV if the
annual cashflows of a project are constant. Hence the method when applied to the North or South projects would produce
an NPV which does not exactly match that previously calculated. By way of contrast it is forecast that the East project will
have constant cashflows and in this instance the NPV and residual income based approach when discounted, will produce
the same result. -
第20题：
(b) (i) Explain how the use of Ansoff’s product-market matrix might assist the management of Vision plc to
reduce the profit-gap that is forecast to exist at 30 November 2009. (3 marks)
正确答案：
-
第21题：
(b) Explain how growth may be assessed, and critically discuss the advantages and issues that might arise as a
result of a decision by the directors of CSG to pursue the objective of growth. (8 marks)
正确答案：
(b) Growth may be measured in a number of ways which are as follows:
Cash flow
This is a very important measure of growth as it ultimately determines the amount of funds available for re-investment by any
business.
Sales revenue
Growth in sales revenues generated is only of real value to investors if it precipitates growth in profits.
Profitability
There are many measures relating to profit which include sales margin, earnings before interest, taxation, depreciation and
amortisation (EBITDA) and earnings per share. More sophisticated measures such as return on capital employed and residual
income consider the size of the investment relative to the level of profits earned. In general terms, measures of profitability
are only meaningful if they are used as a basis for comparisons over time or in conjunction with other measures of
performance. Growth rate in profitability are useful when compared with other companies and also with other industries.
Return on investment
A growing return upon invested capital suggests that capital is being used more and more productively. Indicators of a growing
return would be measured by reference to dividend payment and capital growth.
Market share
Growth in market share is generally seen as positive as it can generate economies of scale.
Number of products/service offerings
Growth is only regarded as useful if products and services are profitable.
Number of employees
Measures of productivity such as value added per employee and profit per employee are often used by shareholders in
assessing growth. Very often an increased headcount is a measure of success in circumstances where more people are
needed in order to deliver a service to a required standard. However it is incumbent on management to ensure that all
employees are utilised in an effective manner.
It is a widely held belief that growth requires profits and that growth produces profits. Profits are essential in order to prevent
a company which has achieved growth from becoming a target for a take-over or in a worse case scenario goes into
liquidation. Hence it is fundamental that a business is profitable throughout its existence. Growth accompanied by growth in
profits is also likely to aid the long-term survival of an organisation. CSG operates in Swingland which experiences fluctuations
in its economic climate and in this respect the exploitation of profitable growth opportunities will help CSG to survive at the
expense of its competitors who do not exploit such opportunities.
Note: Alternative relevant discussion and examples would be accepted. -
第22题：
(c) Without changing the advice you have given in (b), or varying the terms of Luke’s will, explain how Mabel
could further reduce her eventual inheritance tax liability and quantify the tax saving that could be made.
(3 marks)
The increase in the retail prices index from April 1984 to April 1998 is 84%.
You should assume that the rates and allowances for the tax year 2005/06 will continue to apply for the
foreseeable future.
正确答案：
(c) Further advice
Mabel should consider delaying one of the gifts until after 1 May 2007 such that it is made more than seven years after the
gift to the discretionary trust. Both PETs would then be covered by the nil rate band resulting in a saving of inheritance tax
of ￡6,720 (from (b)).
Mabel should ensure that she uses her inheritance tax annual exemption of ￡3,000 every year by, say, making gifts of ￡1,500
each year to both Bruce and Padma. The effect of this will be to save inheritance tax of ￡1,200 (￡3,000 x 40%) every year. -
第23题：
(b) Calculate the amount of input tax that will be recovered by Vostok Ltd in respect of the new premises in the
year ending 31 March 2009 and explain, using illustrative calculations, how any additional recoverable input
tax will be calculated in future years. (5 marks)
正确答案：
(b) Recoverable input tax in respect of new premises
Vostok Ltd will recover ￡47,880 (￡446,500 x 7/47 x 72%) in the year ending 31 March 2009.
The capital goods scheme will apply to the purchase of the building because it is to cost more than ￡250,000. Under the
scheme, the total amount of input tax recovered reflects the use of the building over the period of ownership, up to a maximum
of ten years, rather than merely the year of purchase.
Further input tax will be recovered in future years as the percentage of exempt supplies falls. (If the percentage of exempt
supplies were to rise, Vostok Ltd would have to repay input tax to HMRC.)
The additional recoverable input tax will be computed by reference to the percentage of taxable supplies in each year including
the year of sale. For example, if the percentage of taxable supplies in a particular subsequent year were to be 80%, the
additional recoverable input tax would be computed as follows.
￡446,500 x 7/47 x 1/10 x (80% – 72%) = ￡532.
Further input tax will be recovered in the year of sale as if Vostok Ltd’s supplies in the remaining years of the ten-year period
are fully vatable. For example, if the building is sold in year seven, the additional recoverable amount for the remaining three
years will be calculated as follows.
￡446,500 x 7/47 x 1/10 x (100% – 72%) x 3 = ￡5,586.