hasan dosani past papers

Question 1

political environment is unfavorable

Answer 1

it lowers business confidence
difficulty in planning long term objectives
challenge in achieving ur objectives

Question 2

economic recession, at first we were profiting now revenue falling

Answer 2

unfavorable as revenue is falling, will be difficult to achieve strategic objective of being a profitable company

Question 3

increased unemployment

Answer 3

unfavorable, as ppl will have less disposable income

Question 5

Change management

Answer 5

Unfreeze : discuss with staff,explain benefits, take their feedback, obtain employee consent
Move: plan, make teams, allocate tasks, train staff
Freeze: once change is implemented, make sure staff comply, monitor, reward. Dismiss those who are rebeling

Question 6

Financial appraisal assessment

Answer 6

NPV, is the proposal financially feasible , shareholders wealth.

Payback, total investment/ yearly inflows

Assess Reasonableness of costs and investment, what is the breakup and assumptionused

Discount factor, shud be higher if risky

Sensitivity analysis
A sensitivity analysis should be done to identify the sensitive assumptions which can significantly affect the NPV.