CIMA E1: ENTERPRISE OPERATIONS
　　Required:
　　(a)
　　Explain how external triggers have impacted on the company. (Your answer should
　　include reference to the company’s products.) (5 marks)
　　(b)
　　Describe the essential elements of the quality-improvement programme, taking into
　　account the information provided in the scenario. (5 marks)
　　(c)
　　Discuss the suitability of all operations/technology management concepts in the
　　scenario (these are CAD/CAM, JIT, OPT, ERP, MRP). (5 marks)
　　(d)
　　Outline an approach to change management that may assist HK Holdings when
　　implementing new technology. (5 marks)
　　(e)
　　Discuss the advantages and disadvantages of outsourcing systems development
　　projects for HK Holdings. (5 marks)
　　(f)
　　Explain the stages that Revor should work through when developing its new products.
　　(5 marks)
　　(Total: 30 marks)
　　KAPLAN PUBLISHING
　　INTERIM ASSESSMENT QUESTIONS
　　SECTION C
　　ANSWER BOTH QUESTIONS
　　QUESTION 3
　　D4D is a politically stable, developing country enjoying a temperate climate and a young,
　　educated population, many of whom are educated to graduate level. Those who have
　　studied at this level have tended to do so abroad since there are limited opportunities to do
　　so in D4D.
　　The economy is mixed, based on agriculture and some light manufacturing but has enjoyed
　　considerable revenue from oil exploration and production which is based offshore in its
　　territorial waters. Some of this revenue is generated by providing services for the oil industry
　　but the majority comes from a tax on every barrel of oil which the foreign oil companies
　　extract.
　　The Government has used the revenue to keep personal and property taxes low and to
　　support the largely uneconomic local industry. It now recognises that, although politically
　　popular, this decision might not have been in the best long term interests of the country.
　　The Finance and Trade Minister of D4D is aware that the oil revenue may only last a further
　　ten years. He wishes to build competitive advantage over the neighbouring countries. The
　　Prime Minister is sceptical and has made the observation that ‘companies have competitive
　　advantages not countries’.
　　The Government is keen to support the work of D4D’s charitable organisations. ‘Doctors
　　with Wings’, a registered charity in D4D, raises funds to send volunteer doctors and nurses
　　to medical emergencies around the world. Those emergencies can arise for any reason,
　　ranging from famine to war or major outbreaks of disease. Funding primarily comes from
　　D4D’s Government agencies and corporate donations, although the charity seeks donations
　　from the public, as well as medicines and other supplies from manufacturers. The majority
　　of volunteers are recruited, often with the support of teaching hospitals, immediately after
　　qualification. These new doctors are often persuaded to donate their time to the charity
　　during presentations made by volunteer doctors who have just returned from a medical
　　emergency.
　　Required:
　　(a)
　　Using any models you consider appropriate, explain the factors which lead to
　　competitive advantage being present in particular countries. (5 marks)
　　(b)
　　Explain the steps that D4D should take to make the country more attractive to
　　appropriate inward investment. (10 marks)
　　(c)
　　Identify the principal stakeholders in Doctors with Wings and explain the nature of the
　　power and interest that they hold in their relationship with the charity. (10 marks)
　　(Total: 25 marks)
　　KAPLAN PUBLISHING
　　CIMA E1: ENTERPRISE OPERATIONS
　　QUESTION 4
　　E5E is a charity concerned with heart disease. It obtains funding from voluntary donations
　　from both private individuals and companies, together with government grants. Much of
　　the work it does, in all departments, could not be achieved without the large number of
　　voluntary workers who give their time to the organisation and who make up approximately
　　80% of the workforce.
　　E5E does not employ any scientific researchers directly, but funds research by making grants
　　to individual medical experts employed within universities and hospitals. In addition to
　　providing policy advice to government departments, the charity’s advisors give health
　　educational talks to employers and other groups.
　　The Board recognises the need to become more professional in the management of the
　　organisation. It feels that this can be best achieved by conducting a benchmarking exercise.
　　At a recent project development meeting, the IT director presented ideas for the design of a
　　new system. Several points were raised at the meeting:
　　?
　　The current information system is weak. The accuracy and completeness of the
　　information needs to improve and there needs to be better co-ordination of activities.
　　Several different systems are used and some are very inefficient.
　　?
　　The IT director has recommended that a new organisation wide information system
　　should be implemented. This should address the problems outlined above. However,
　　there is some concern that the introduction of the new system may make some
　　members of the organisation, particularly the volunteers, unhappy.
　　Required:
　　(a)
　　Identify the advantages and disadvantages of benchmarking for E5E. (10 marks)
　　(b)
　　Explain the stages in conducting a benchmarking exercise in the context of E5E.
　　(10 marks)
　　(c)
　　Explain how those implementing the new information system should deal with the
　　concerns of the staff, particularly the volunteers. (5 marks)
　　(Total: 25 marks)
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