Free Access CIMA.CIMAPRA19-E02-1.v2022-04-08.q70 Practice Test (Page 15)

Question 66

A large multinational organisation, with financial processing centres in several countries in which it operates, has chosen to consolidate these activities on one site or, in other words, into a Shared Service Centre (SSC).
Which THREE of the following are drawbacks of an SSC?

A.The accountants can feel isolated within the business and may develop their own ways of working which may not constitute best practice. Without a larger team around them, they may not be able to develop the acquired skills and knowledge.

B.It distances the accountants from everyday decision-making in that he/she will be unlikely to have day to day contact with the business area which the SSC supports. The outcome may be that the accountant is unable to provide up-to-date information for decision-making.

C.Loss of business knowledge as the finance function within the SSC may not have a detailed knowledge of each part of the business.

D.Business relationships are weaker. The SSC may not be able to build strong relationships with the business area, which may result in a deterioration of performance in the business area.

E.Lack of knowledge may occur because there is less sharing of knowledge which can be achieved within a larger more diverse team. Best practice may not be employed and practices within some business areas may become outdated.

Question 67

LT Company intends to achieve its competitive advantage through strategic stretch. Which of the following indicates what LT Company would need to do?

A.Create new opportunities by exploiting the company's internal capabilities.

B.Change the company's strategy to fit with its environment.

C.Focus on reducing all costs throughout the company's value chain.

D.Differentiate the company's products to achieve supernormal profits.

Question 68

Japanese team working based on the Japanese production model, and widely copied around the world, possesses which THREE of the following characteristics?

A.Established to solve non-conventional problems.

B.Assignment of tasks to work units rather than individual workers.

C.Normally temporary and depend on the demands of new projects.

D.Composed of multiskiiled workers.

E.Supervisors' roles seen as models for workers and act as a buffer between labour and management.

Question 69

Negotiation is an important skill for managers and their relationships with subordinates, stakeholders and suppliers. The negotiation process can be divided into four disctinct stages.
Place the following stages in the correct order:

Question 70

Which of the following statements relate to the 'hard Ss' in Mckinsy's model?
Select ALL that apply.

A.An organisation's employees and how they are developed, trained and motivated.

B.The long-term direction of an organisation

C.The values and beliefs of an organisation, including those expressed in the mission statement.

D.An organisation's particular capabilities and competencies.

E.The everyday procedures that an organisation has in place to govern its activity.

F.The operating approach of an organisation's management.

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Question 66

Question 67

Question 68

Question 69

Question 70

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