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THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH CMA DECEMBER, 2017 EXAMINATION
OPERATIONAL LEVEL
SUBJECT: E1. ENTERPRISE OPERATIONS
Time: Three hours Full Marks: 100
All questions are to be attempted.
Show computations, where necessary.
Answer must be brief, relevant, neat and clean.
Start answering each question from a fresh sheet.
Q. No. 1
(a) How does corporate communication & branding play crucial role to enhance visibility of the organization in the competitive business environment?
(b) What are the consequences of a cyber attack in an organization? How can an organization improve its cyber security?
(c) “Economic Order Quantity (EOQ) is an effective tool for managers to determine optimal amount of inventory to hold on hand as well as to calculate when to order more merchandise”. Discuss.
(d) How does Enterprise Resource Planning (ERP) based solution combine all of a globally diverse organization’s production, sales, marketing, customer support information and reporting for decision making?
(e) Elucidate how operations management might contribute towards achieving an organization’s sustainability targets.
(f) Explain the relationship between 'Business Ethics' and 'Corporate Social Responsibility'.
(g) What is a SWOT analysis and how does it lead to an understanding of realistic market opportunities?
(h) Describe the sources of information required for strategic decision making and the characteristics of an information system used to provide strategic information.
[Marks: (8 X 5) = 40]
Q. No. 2
SYSTEK is a manufacturing company in Bangladesh where Mr. Shrestho has been working from the genesis of his career and is currently working as Head of Production. He is very much respected for his vast expertise, sincerity, direct speaking and the results he achieves in the company though he can be obstinate and solo-minded at times.
Due to recent dynamic changes in the competitive business environment, significant transformation is going on in the SYSTEK and as such, many senior managers have gradually been replaced by younger managers with different innovative ideas and new proactive approaches. In line with the transformation process, a new Managing Director (MD) & CEO was appointed six months ago but Mr. Shrestho’s first dealing with him did not go sound.
From vast experience in the company, Mr. Shrestho requested that some of the production equipments need to be upgraded. But, unfortunately his request was declined until a full written proposal including an investment appraisal analysis was produced. No equipment has been upgraded as there was no written proposal since this time.
When SYSTEK’s Head of Sales retired last month, he was replaced by a new Marketing Manager.
The motto of the recruitment for SYSTEK is to facilitate transformation process going on in the company and drive more customer focus approach. Mr. Shrestho is aggravated to find that the Managing Director & CEO has approved the purchase of a Customer Relationship Management (CRM) system straightaway. At the same time, Managing Director & CEO has expressed his desire to purchase ERP based solution for SYSTEK in the near future. Mr. Shrestho told his colleagues that the CRM system will be 'a waste of money that could be spent elsewhere'.
Now, the new Marketing Manager is, for the first time, developing a wide-ranging marketing sketch and he has invited a number of senior colleagues across the organization to help contribute to the sketch including Mr. Shrestho. Subsequently, Mr. Shrestho declined the invitation telling the Marketing Manager that he would do well to ‘ponder on the crucial job of selling rather than wasting time drawing up worthless plans'.
Page 2 of 2 CMA DECEMBER, 2017 EXAMINATION
OPERATIONAL LEVEL
SUBJECT: E1. ENTERPRISE OPERATIONS Q. No. 2(cont’d……..)
Required:
(a) How will ‘innovative ideas and new proactive approaches’ play role for SYSTEK in the changing environment?
(b) Explain importance of ‘investment appraisal analysis’ as directed by Managing Director & CEO.
(c) Illustrate the significance of ‘new marketing and more customer focus approach’ on the business of SYSTEK.
(d) Analyze possible cost & benefits associated with a Customer Relationship Management (CRM) system.
[Marks: (10+7+5+8) = 30]
Q. No. 3
Dragon X is one of the largest retailers in clothing business having visible brand among the customers mainly for quality products at affordable prices. Due to recent change in the business environment, new competitors came in the market with quality products within comfortable price range of the customers and as such; Dragon X has lost its market share to them significantly.
Recently, one of the business analysts has commented that Dragon X needs to reestablish connection with its conventional customers to get his position again in the market. Directors of Dragon X's are obviously concerned with the current situation and recently, have appointed a new Chief Executive Officer & Managing Director with a vision of renovating Dragon X's approach and thoughts in business operations and systems to face the challenges.
In recent times, the Chief Executive Officer & Managing Director met with Dragon X's senior management team and explained that the merchant has 'taken its brand for granted' and that the Dragon X brand needs serious consideration if the company's fortunes are to be rejuvenated.
Accordingly, Dragon X requires development of new customized products as per requirements of customers due to change of fashion and interest. He has also promised a re-launch of the brand and a fundamental review of the company based upon sound marketing philosophy.
At the same time, Chief Executive Officer & Managing Director also thought to use digital marketing approaches to revive the visibility of the brand among customers especially targeted to young generation. Moreover, he will also investigate inventory management system and supply chain in the company to detect any possible losses over there. He is also decisive of the stance and capacities of some of Dragon X's workforce and has promised to 'get the people issues right'. At the same time, he has expected to transform human resource into human capital with bringing some significant changes in performance appraisal and rewards systems in the company positively.
Required:
(a) Explicate the justification of giving importance of branding for Dragon X from the viewpoint of the new Chief Executive Officer & Managing Director.
(b) Analyze the possible ways of digital marketing approaches to revive the visibility of the brand among customers?
(c) Explain the Human Resource activities that could be strengthened in order to get the better of the apparent difficulties relating to the stance and capacities of some of Dragon X's workforce.
(d) Explain different sourcing strategies Dragon X can implement to provide better quality products & services to the customers.
[Marks: (8+7+8+7) = 30]
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