Revision

Question 1

What is the definition of professionalism

Answer 1

The conduct aims or qualities that characterise or Mark a profession of professional person

Question 2

What are the attributes to professionalism

Answer 2

Competence
Integrity
Reliability
Flexibility
Respect for others
Self control

Question 3

What are the two types of fraud

Answer 3

Fraudulent financial reporting (overstating profit)

Misappropriation of assets (theft of cash)

Question 4

What are the preconditions for fraud

Answer 4

Incentive
Opportunity
Attitude/dishonesty

Question 5

What are the three elements for an antioxidant fraud strategy ?

Answer 5

Prevention
Detection
Response

Question 6

What are the two types of external environment

Answer 6

Country environment (otherwise known as macro environment, general environment)

Industry environment (otherwise known as micro environment, industry/market place environment and competitive environment)

Question 7

What models to use for country and industry environment

Answer 7

Country environment- PESTEL

Industry environment - PORTERS FIVE FORCES

Question 8

What does PESTEL stand for ?

Answer 8

Political
Economy
Social
Technological
Ecological
Legal

Question 9

What are the 5 factors for porters 5 forces ?

Answer 9

Power of customer
Power of supplier
Threat of new entrants
Threat of competition
Threat of substituting product

Question 10

Factors to consider for power of customer (porter 5 forces)

Answer 10

Factors to decide if High or low
-Size of customer (e.g. large global customer)
- A brand or uniqueness in our products
- Customer willing to pay a premium

Words to look out for
- supplier
- vendor
- manufacturer

Question 11

Things to consider for power of Supplier (porter 5 forces)

Answer 11

Factors to decide whether High or Low ?
- Size of supplier (e.g large global supplier)
- Are we willing to pay any premium

Words to look out for ?
- Supplier
- Vendor
- Manufacturer

Question 12

What is threat to new entry (ports 5 forces)

Answer 12

What are the barriers to entry are they high or low
- parents
- government approvals
- government licences
- franchises

Question 13

What is strategic position analysis ?

Answer 13

Anytime a questions mentions “strategic position analysis” we have to talk about;

Macro/country environment

Micro/industry environment

Internal factors
1. Human resource (experience, management competencies, expertise)
2. Financial resource ( profitability, financial position, gearing)
3. IT/Brand (goodwill, online, website)

Question 14

What does SFA framework stand for

Answer 14

Suitability

Feasibility

Acceptability

Question 15

When do we use the SFA framework model ?

Answer 15

We use it when we plan to acquire another company (either same country or abroad)

Question 16

What are the areas with suitability (SFA)

Answer 16

Suitability refers to EXTERNAL factors

Home Country
Target country
Target company

Question 17

What are the areas within feasibility (SFA)

Answer 17

Feasibility focuses on INTERNAL factors

Human resource & expertise
1. Do we have acquisition experience from the past ?
2. Do we have experience of managing similar business
3. Do we have experience of working in an overseas country

Financial resource
1. Do we have funds to acquire another company
2. Look at gearing ratios

Technology & Brand

Question 18

What are the areas within acceptability

Answer 18

Focuses of FINANCIALS of target company

Will shareholders accept proposed strategy
1. NPV etc

If target company is based in another country then we have to Consider any cultural differences

Review financial projections/analysis

Question 19

Is SWOT analysis internal or external ?

Answer 19

Strengths and weaknesses are internal

Opportunities and threats are external

Question 20

What is TOWS Matrix

Answer 20

It’s like SWOT but combines the 4. Eg

SO - use your strengths to avail opportunities

WO - Remove your weakness to avail opportunities

ST - use your strength to avoid/counter threats

WT - remove your weaknesses and avoid threats

Question 21

How to know when to use TOWS Matrix ?

Answer 21

Use the TOWS matrix when

1. A SWOT analysis will be given or
2. You will be required to do a SWOT analysis first

Question 22

What is corporate parenting and portfolio

Answer 22

This refers to how well the subsidiaries are performing for the parent

Points to consider when evaluating a subsidiary are:
1. Industry status (growth, maturity, decline)
2. Market share % (increasing, maintained, declined)
3. Profit margin % (increasing maintained, declined)
4. BCG assessment (star, cashcow, dog, question mark)
5. Strengths / weakness / primary reason for acquisition

Question 23

What is the Ansoff growth model

Answer 23

Every company wants to grow. The below are ways for a company to grow

Market development

Diversification

Penetration

Product development

Question 24

What is mendelows stakeholder matrix

Answer 24

Organisations can divide their stakeholders into 4 groups

Keep satisfied
1. Govenerment
2. Major customers

Key players
1. Shareholders
2. Board of directors

Min effort
1. Minority shareholders

Keep informed
1. Employees
2. Community /society
3. Smaller customer

Question 25

What is the cultural web model

Answer 25

This looks at why a secure organisation has the culture that they have. Cultures are made up of

Power structures
- leadership of organisation

Organisational Structure
- structure of board (eds vs neds)
- structure of overall organisation (fall or flat)

Control systems
- is organisation cost or quality focused ?
- what is reward system for employees / management

Ritual & Routines
- office timing, officeware, working hours etc

Symbols
- show off status symbol ?
- expensive cars, huge offices, club memberships

Stories
- history of organisation

Question 26

What is the context of change model

Answer 26

When a ceo brings change into a company you have to plan the change

Steps for change management are;

Scope (size of change)
If it’s a small change (realignment) or a big change (transformation)

Reason
Justification for bringing change

Timing
When the change will be implemented

Capacity/resources
Does organisation have required resources (human/financial resources, technology etc)

Capability
Has organisation implemented such change in past (prior experience)

Power
Does the person implementing the change have sufficient power

Readiness
Are the employees ready, have they had training

Resistance
People will still resist and you need to manage this, talk to them or fire them etc

Question 27

What are the four options when dealing with risk ? (T.A.R.A model)

Answer 27

Acceptance - accept the risk (normally adopted for minor risk)

Reduction - reduce the impact

Avoidance - try to eliminate

Transference - transfer risk to 3rd party

Question 28

What are the advantages of e-business

Answer 28

No geographical limitations
More revenue
Lower costs
Customer convenience
Improved marketing

Question 29

What are disadvantages of e business

Answer 29

Not all customers use internet
One time set up costs
1. Hardware
2. License
3. Website development
4. Increasing IT staff
5. Inter gestión with current system

Security risk
1. Hacking
2. Viruses
3. Cyber / fraud
4. Data privacy

Question 30

What are tools for e marketing

Answer 30

Seo
Websites
Emails
Social media
Online discounts
Blogs/forums/influences
News letters

Question 31

What are advantages of e marketing

Answer 31

Global reach
Lower costs
24 hour marketing
Personalised marketing

Question 32

What are the 3 v’s of big data

Answer 32

Volume
Variety
Velocity

Question 33

Advantages of big data

Answer 33

Deeper insight into data
Better marketing and pricing strategy
Improved customer services and relationships
Personalised ads
New sources of revenue

Question 34

Disadvantages of big data

Answer 34

Data security risk
Data storage
Costly
Legal issues / regulation

Question 35

Advantages of CRM

Answer 35

Better interaction
Marketing and relationship building
Sales management
After sales services
Analysis