Cima E2 Knowledge Gaps

Question 1

Which of following could act as a barrier to entry?

1. Patents and licences
2. Many suppliers
3. Economies of scale
4. Differentiated products
5. Government policy
6. Low initial investment

Answer 1

All but no2 And 6 these make it easier

Differentiated products can be a barrier to entry. Where established firms have good brand image and customer loyalty, the costs of overcoming this can be prohibitive.

Question 2

According to herzberg motivation theory, which of the following should be in place to avoid dissatisfaction?

1. Teamworking
2. Career enhancement
3. Pleasant physical and working conditions
4. Appropriate salary and status for job
5. increasing levels of responsibility

Answer 2

1,3,5 these are hygiene factors (avoid dissatisfaction)

Other 2 are motivational factors

Question 3

What are 9 belbin team roles?

Answer 3

1. Co-ordinator - mature and confident. Ensures team focuses on objectives. Delegates well.
2. Shaper -Challenging and dynamic. Provides the drive to keep the team moving. Promotes activity
3. Plant - thoughtful and creative. Generates original ideas
4. Monitor Evaluator - logical and analytical. Evaluates options in an impartial manner
5. Resource investigator- enthusiastic and inquisitive. Finds ideas from outside the organisation to bring to the team.
6. Implementer- practical and reliable. Deals with planning and scheduling. Drives efficiency.
7. Teamworker - cooperative and diplomatic. Concerned with relationships within the team. Diffuses conflict.
8. Completer finisher - anxious and conscientious. Scrutinises the work of team for errors. Quality control
9. Specialist - single minded and dedicated. Brings in depth specialist knowledge to solve technical problems.

This doesn’t mean a team can’t be effective with less than nine people. Members can adopt more than one role. However an absence of one of the functions can lead to a reduction in team effectiveness.

Question 4

What are extrinsic and intrinsic rewards?

Answer 4

Extrinsic- separate to the job itself and dependant on the decisions of others. Ie pay, working conditions,benefits.

Intrinsic- arise from performance of the job itself. Includes feeling of satisfaction of doing job well, being allowed to make higher level decisions or being interested in your job

Question 5

What are the 10 schools of thought identified in Strategy safari?

Split them into the 2 categories.

Answer 5

2 main categories are:
prescriptive schools- explain how strategy should be formulated.
Descriptive schools- how strategy actually are formed.

Prescriptive schools:

Design school (conception) - strategy development seen as a rational process which seeks to establish a fit between internal capabilities and external possibilities

Planning school (formal) - strategy is developed by specialists using rigorous strategy planning methodologies.

Positioning school - strategy is a combination of offensive and defensive moves based on the premise industry structure drives strategy position which drive organisational structure.

Design/planning schools closely linked to rational model.main tool in design school is swot. Positioning schools uses tools such as Boston consulting group, porters generic strategies & porters value chains.

Descriptive schools:
Environmental school (reactive)-strategy develops as a responsive to environment it operates in.

Cognitive school (mental) - strategy development is an act of understanding how the mind works and processing information is the key to understanding strategy development.

Entrepreneurial School (visionary)- strategy developed is dependent on the vision of one entrepreneurial individual

Power school (negotiation) strategy results from power struggles within the organisation and in the marketplace

Cultural school (collective) strategy development is a process of social interaction that takes place within the context of beliefs and shared values of members of the organisation.

Learning school (emergent) strategy emerges as a result of trial and error and learnings within the organisation

Configuration school (transformation) strategy is a conscious act of transforming and organisation from one state to another.

Question 6

As parts of 5 forces analysis, which of the following would cause rivalry among existing competitors to be higher?

1. Rapid growth in the market
2. High fixed costs
3. relative quality and costs of similar products
4. There are high barriers to entry

Answer 6

2

Competitors will need to sell a lot to cover fixed costs so will fight aggressively to maximise sales.

Rapid growth in market would actually make competition less intense as existing businesses would struggle to keep up with demand and not need to acquire competitors customers to grow

Relative quality and costs of similar products drives the threat of substitutes.

High barriers to entry would affect the threat of new entrants.

Question 7

Which 3 of the following are common features of management as identified by Fayol.

1. Contracting
2. Commanding
3. Communicating
4. Coordinating
5. Controlling
6. Coercing

Answer 7

2 4 5

Fayol suggested 5 - The other 2 are planning and organising

Question 8

According to tuckman what a 4 stages of group development?

Answer 8

Forming - initial stage, membersare individuals who are unsure of their roles and responsibilities until defined by manager.

Storming - most teams go through this conflict stage. As tasks get underway, members may test managers authority. Resolution and conflict skills of manager are vital at this stage- needs to be flexible,allowing team members a voice and get involved in decision making.

Norming - operating norm established, team settles. Team procedures are refined, manager will begin to pass control and decision making authority to team members. They will be operating as a cohesive team, with each person recognising/appreciating the roles of other members.

Performing -team is capable of operating to full potential. Progress made towards set objectives. Team feels confident and empowered.

Not all teams will follow the stages and may get stuck in the middle remaining ineffective and inefficient.

Question 9

Organisational change

Incremental transformation =
Incremental realignment =

Big Bang transformation =
Big Bang realignment =

Answer 9

Organisational change

Incremental transformation = evolution
Incremental realignment =adaptation

Big Bang transformation = revolution
Big Bang realignment = reconstruction

Question 10

Which of the following is not an action performed by a change agent?

1. Diagnose solutions
2. Implement change
3. Monitor change
4. Define problem

Answer 10

3

Four actions performed by a change agent are

Define problem
Diagnose solutions
Implement change
Transmit learning process

Question 11

Think ………………. Act. …………….

Answer 11

Think global, act local

Porter states that any organisational structure competing in a global market has to balance 2 dimensions

Global dimension for world wide coordination to achieve economies of scale

Local dimension that enables country managers to respond to local customer needs

Question 12

Belbin - which role is defined as “committed to the task, may be aggressive and challenging, will always promote activity”

1. Shaper
2. Plant
3. Team worker
4. Finisher

Answer 12

1

Plant is thoughtful and thought provoking
Team worker is concerned with relationships in the group
Finisher is progress chaser who ensure deadlines are met

Question 13

According to schein, culture exists a three levels:
Artefacts, values and basic assumptions.

Which relates to values

1. Things that can be seen heard and observed
2. Deeply held beliefs
3. Things that can be identified from stories
4. The way we do things around here

Answer 13

3 - values are the things that can be identified from stories and opinions of those within the organisation. Includes language used, behaviour and hoe people justify what they do

Things that can be heard seen and observed are artefacts and creations
Deeply held belief are known as basic assumptions
They ways we do things around here is handys overall definition of culture

Question 14

Which are true?

1. Authority is the right to exercise power
2. Traditional authority is based on Weber’s classical bureaucracy
3. Responsibility is the capacity to exert influence
4. When delegating,responsibility can never be delegated
5. Responsibility involves the obligation of an individual

Answer 14

1, 4 & 5

Traditional authority is backed on custom and practice - rational legal authority is based on Weber’s classical bureaucracy

Power is the capacity to exert influence

Question 15

According to Henry Mintzberg realised or actual strategy is a combination of which two of the following

1. Intended strategy
2. Unrealised strategy
3. Emergent strategy
4. Incremental strategy
5. Deliberate strategy

Answer 15

3, 5

Question 16

What are the project management institutes 9 process areas?

Answer 16

Time 
Cost
Quality
Human Resources 
Risk

Communications
Procurement
Integration
Scope

Question 17

Barney(1991) indentified 4 criteria for unique resources. What are they?

Answer 17

Valuable -must be able to exploit opportunities or neutralise threats.

Rare - competitors must not have them too

Imperfectly imitable- competitors must not be able to duplicate

Non substitutability- must not be possible for a rival to find a substitute.

Question 18

Group cohesiveness can be affected by a number of factors, such as environmental and dynamic factors. Which of the following would be categorised as a environmental factor?

Size of group
Alternatives
Success and failure
Task

Answer 18

Size of group and alternatives are membership factors
Success or failure is seen as a dynamic factor

Environmental factors include nature of the task, the isolation of the group and the climate of management and leadership

Question 19

Are these primary or secondary information sources?

1. Annual reports and statements of competitors or firms in the target market or industry and those of their suppliers.
2. Directories and yearbooks covering particular industries (Who’s Who) and ownership patterns (who owns what)
3. Government publications, such as special reports of select committees on Particular industries, economic forecasts and reports.
4. Market research reviews and reports produced by specialist research firms including mintel, economist intelligence unit etc
5. Newspapers and newsletters such as the business press or industry bulletins
6. Patents registered with the national patents office.
7. Transcript services from newspapers, analysts and online data sources, such as proprietary company information services.

Answer 19

1. Annual reports and statements of competitors or firms in the target market or industry and those of their suppliers. Primary
2. Directories and yearbooks covering particular industries (Who’s Who) and ownership patterns (who owns what) Secondary
3. Government publications, such as special reports of select committees on Particular industries, economic forecasts and reports. Secondary
4. Market research reviews and reports produced by specialist research firms including mintel, economist intelligence unit etc. Secondary
5. Newspapers and newsletters such as the business press or industry bulletins. Primary
6. Patents registered with the national patents office. primary
7. Transcript services from newspapers, analysts and online data sources, such as proprietary company information services. Primary

Question 20

Adair - Name four group roles and four task roles.

Answer 20

Group roles:
Communicating
Discipline
Encouraging
Standard seeking

Task roles:
Initiating
Opinion seeking
Evaluating
Information seeking

Question 21

A number of models can be used to identify strengths weaknesses opportunities and threats, for inclusion in a swot analysis (corporate appraisal)

Which of the statements below identifies the models that could be used to identify strengths or weaknesses?

Resources audit and pestel
Value chain analysis and porters Diamond
Five forces and porters Diamond
Resources audit and BCG matrix
BCG and five forces

Answer 21

Resources audit and BCG matrix

Resources audit, value chain and the BCG matrix all look at internal factors, so they identify strengths and weaknesses . The others are environmental analysis tools.

Question 22

Jeff is responsible for implementing a new organisation structure at Wilkinson’s plc, large doughnut factory. Jeff has found that staff believe they will lose out as a result of the change.

Which of the following is the best way for Jeff to overcome the resistance of the staff?

Negotiation
Coercion
Participation
Education and communication

Answer 22

negotiation

Kotter and Schlesinger stated that there are a number of reasons why people would resist change and they suggested six methods for overcoming that resistance. Where the resistance is due to people believing that they will lose out the best method was negotiation. The other methods suggested were participation,facilitation and support, education and communication, Manipulation and co-optation, and power or coercion.

Question 23

Which of the following will take place at the business level strategy planning?

Which products should be developed
How to segment the market
How many units of production are required
What training do staff require
Decisions to extend overdraft facilities with a lender
Decisions about acquisitions and mergers

Answer 23

Which products should be developed
How to segment the market

At the business level, decisions will be based around how they should compete within that chosen industry.

At the corporate level, The industry in which the business operates on the strategic direction of the organisation will be decided. Decisions including Mergers and acquisition and obtaining finance Are also made here.

Operational level is concerned with how different functions of the business support the corporate and business strategies. HR will determine training requirements for staff and production department will determine the number of units required to meet Demand

Question 24

Which term best describes a strategy which is forced on the organisation by circumstances?

Emergent strategy
Imposed strategy
Incremental strategy
Freewheeling strategy

Answer 24

Imposed strategy

Question 25

What is an autocratic style of management?

Answer 25

An autocratic style suggests that the manager has complete control and imposes all decisions on the group.

Question 26

Which of the following would be justifiable grounds for dismissal? The employee failed to meet their annual targets Conflict in the workplace The role was redundant Gross misconduct The employee has raised a grievance against the manager

Answer 26

The role was redundant Gross misconduct Employee failing to meet targets would not be grounds for dismissal.

Question 27

What are Johnstons cultural web seven elements?

Answer 27

``` Symbols Stories and myths Power structures Rituals androutines Organisational structure Control systems Central paradigm ```

Question 28

Cialdini six principles of influence are?

Answer 28

``` Reciprocity Commitment Social proof Liking Authority Scarcity ```

Question 29

According to Lewin, the following are all types of which method? Establishing new patterns of behaviour Creating new incentive schemes Setting up new reporting relationships unfreezing, changing or refreezing

Answer 29

Changing Stage one is unFreezing– changing existing habits behaviours and attitudes Stage two is to change – new behaviour is brought into the business. Stage three is refreezing – method stabilising or setting the change so people do not slip back into old ways. It involves reinforcement of the new behaviour

Question 30

Risk and uncertainty must be considered throughout a project. At the initiation and planning stages there are a number of techniques which can be used. Which technique involves considering alternative actions should uncertain events occur? Buffering Contingency planning PERT Scenario planning

Answer 30

Contingency planning Contingency planning is used that the initiation stage. The others are used at the planning stage. Buffering incorporates risk by adding artificial slack. PERT uses a formula to calculate an expected time for each activity. Scenario planning involves considering one or more sets of circumstances which might occur

Question 31

Which two of the following statements relating to Druckers management by objectives are true. 1. Druckers model suggests that all organisational targets should be set at a top level by senior management. 2. Drucker suggested 8 key objectives including innovation, productivity and competitive advantage. 3. One of Druckers key objectives concerns managerial performance and development. 4. Management by objectives can be defined as a type of control strategy which focuses on controlling the outputs. 5. drucker suggested for key perspectives which Organisations should focus on; financial, customer, internal business process, learning and growth

Answer 31

3 & 4 Are correct 1 Is incorrect. The model suggest that all managers should be involved in setting their own targets And those of their staff 2 is incorrect . Drucker suggested eight key objectives, Competitive advantage is not one of them 5. Is balanced scorecard

Question 32

Which three of the following statements regarding culture are consistent with Scheins cultural analysis? 1. Culture is the way we do things around here 2. Basic assumptions and values could include the way people in the organisation are seen as behaving. 3. artefacts are the aspects of culture that are easy to identify such as physical symbols or dress code 4. Espoused values would include the language used within the organisation and the way people communicate 5. An example of artefacts could be the HR policies which dictate how people should be treated. 6. Espoused values can include the behaviour of people within the organisation and can show what they feel is important

Answer 32

3,4,6 Scheins levels of culture Artefacts - can be seen,heard and observed. Easy to identify Espoused values - can be observed from stories and opinions within the organisation. Could include the organisations stated goals and language used, and the way people communicate. Can also include the behaviour of the people within the organisation and can show what they feel is important. Basic assumptions- these are the deeply held beliefs of the members. Can include the HR policies which dictate how people should be treated. Handy coined the phrase ‘the way we do things round here’

Question 33

Match the following actions to the stage it relates to in Lewins ice cube model. 1. A new management structure was set up 2. Publishing monthly reports for all employees to show the success of the new processes and products. 3. Awarding bonuses to employees whose improvement suggestions are implemented

Answer 33

1. change 2. refreeze 3. refreeze

Question 34

Which of the following statements regarding drawing a network diagram are correct? 1. To calculate the EET, work right to left taking the EET from the previous node and deducting the duration of the activity being considered. 2. If two activities occur in parallel, dummy activity lines can be used to join node together. These lines have a duration of 1. 3. With activities on the critical path, the node at each end of the activity will have EET = to LET 4. When calculating LET and there is a choice, always select the highest 5. Each activity must start and end with a node

Answer 34

3,5 To calculate the LET, work right to left taking the EET from the previous node and deducting the duration of the activity being considered. The EET is calculated by working left to right and adding the duration of the activity to the EET from the previous node. The duration of a dummy activity line is zero When calculating LET and there is a choice, always select the lowest. When calculating EET and there is a choice, always select the highest .

Question 35

Critical path analysis and Gantt chart can both be used to plan for time in a project. Match the following statements to wether they relate to critical path or Gantt. Can show both budgeted and actual durations Drawn in real time Can incorporate info relating to resource requirements, which can be used to compile a resource histogram. Indentifies the activities which would increase a projects deadline if they overrun

Answer 35

Can show both budgeted and actual durations - Gantt Drawn in real time - Gantt Can incorporate info relating to resource requirements, which can be used to compile a resource histogram - Gantt Indentifies the activities which would increase a projects deadline if they overrun - Critical path analysis

Question 36

Which two of the following statements regarding project stakeholders are correct? 1. In small projects, the sponsor, owner and customer may be the same person 2. The project steering committee would normally be chaired by the project manager 3. If the project becomes untenable, the responsible for recommending termination would be the project managers 4. The project manager would be appointed by the project owner 5. High profile projects may have a project champion and this role is normally undertaken by a project sponsor

Answer 36

1 & 3 1. In small projects, the sponsor, owner and customer may be the same person 2. The project steering committee would normally be chaired by the project manager - incorrect, this is the project sponsor. 3. If the project becomes untenable, the responsible for recommending termination would be the project managers 4. The project manager would be appointed by the project owner - incorrect, this this the project sponsor. 5. High profile projects may have a project champion and this role is normally undertaken by a project sponsor - incorrect, the project champion is someone with no other formal role in the project .

Question 37

Quantitative or qualitative? How do you identify these types of research

Answer 37

Quantitative - tries to answer the what when and where questions qualitative - tries to answer the why questions

Question 38

What are mainwarings four strategies for managing conflict?

Answer 38

Stimulation and orchestration - actively encourages conflict as a means of generating new ideas Suppression - threatening the conflicting employees with punishment Reduction - involve negotiating a settlement Resolution- involves solving the problem that is the root cause of the conflict.

Question 39

What are the 7 main components of PRINCE2 methodology?

Answer 39

``` Organisation Plans Controls Products Quality Risk management Control of change management ```

Question 40

McKinsey 7s model highlights hard and soft elements which can influence culture. What are the seven ?

Answer 40

Hard - Structure Systems Strategy ``` Soft- Style Shared values Skills Staff ```

Question 41

Match the leadership styles to the style which describes the same behaviour McGregors theory X Lewins lessez-fairy Tannenbaum and Schmidt’s delegates Likerts participative Blake and Luton’s impoverished Tannenbaum and Schmidt’s tells

Answer 41

McGregors theory X = Tannenbaum and Schmidt’s tells (these are autocratic) Lewins laissez-faire = Blake and Morton’s impoverished (these are free rein) Likerts participative (These are democratic)

Question 42

What are the four sources of distinctive capabilities according to Kay?

Answer 42

Competitive architecture Reputation Innovative ability Ownership of strategic assets

Question 43

Mintzberg ten roles which managers fulfil in the course of their job ? (3groups - interpersonal, informational, decisional)

Answer 43

Interpersonal: Figurehead Leader Liaison Informational: Monitor Disseminator Spokesperson ``` Decisional: Entrepreneur Disturbance handler Resource allocator Negotiator ```

Question 44

Kanter 7 power skills ?

Answer 44

Ability to work independently Ability to collaborate effectively Ability to develop relationships based on trust Self confidence, tempered with humility Being respectful of the process of change Ability to work across different business units and functions Willingness to stake personal rewards on results

Question 45

Carson proposed that shared leadership is facilitated by an overall team environment consisting of 3 dimensions - what are they?

Answer 45

Shared purpose - focus on collective goals Social support - extent of team members emotional/psychological support for each other Voice (degree to which team member have input in how the team carries out its purpose)

Question 46

Retrenchment involves? Turnaround involves?

Answer 46

Retrenchment involves doing the same thing as before but drastically reducing costs Turnaround involves reposition the organisation within the market to generate competitive advantage