QUESTION: 13

DRAG DROP (Drag and Drop is not supported)
H sells machinery and also associated services, such as advice and repairs. H's industry is going through considerable transformation.
Classify each of the examples of information available to H's management as strategic, operational or of having little value.

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Answer(s): A

Explanation:

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QUESTION: 14

H Ltd is a company providing postal and courier services to small businesses. Customers pay a monthly or annual subscription fee to use the service, plus a very small fee for each item delivered. A year ago, H employed a new sales team. Their remuneration is dependent on the number of new customers they sign up. Sales increased dramatically in the first six months, but now difficulties are emerging such as new customers dropping their subscription once the initial period has expired; subscriber direct debits being returned unpaid; subscribers going out of business and other similar issues.
Which of the following would be appropriate to help resolve these problems?

Alter the pricing structure in order to increase the price for sending each item but decrease the subscription element of the fee.
Ensure that a credit check is carried out before a subscriber is accepted.
Reduce the rate of commission payable to any sales person who fails to sign up at least an agreed minimum number of customers each month.
Alter the commission arrangements so that commission is payable only when the subscriber signs up for a second year.
Preparing a monthly report for sales persons detailing the performance of each new customer they have signed up over the previous year.

Answer(s): B,D,E

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QUESTION: 15

M plc is an IT company that bids for large contracts to sell computer systems and also to service existing systems. M plc's senior management has always set budgets which are hard to achieve and have made no allowances for the recession. The economy has improved and M plc's senior managers have made the budget even more optimistic. The budgeted sales target has been increased by 40%. In the past, sales staff have not tried to achieve the budget sales because it was generally believed that the targets were impossible to reach.
M plc has recently appointed a new Sales Director who has decided that sales staff will be dismissed if they fail to meet sales targets for three successive months. He is also looking for higher sales margins than were achieved before.
What are the likely consequences of the new Sales Director's policy?

Sales staff will be happier in their jobs.
Sales staff will tender for riskier contracts.
Sales staff will encroach on other sales staff territories to get more work.
Sales staff will look for new jobs.
Sales staff will feel more settled and secure in their jobs.

Answer(s): B,C,D

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QUESTION: 16

A large, publicly funded university is considering introducing a new information system in order to enhance its ability to store and retrieve academic records for past and current students, including the registration and deregistration of students.

In conducting an evaluation of the system, which THREE features would the management of the college be most likely to consider as essential prerequisites to implementation?

The system has the capacity to deal with all existing records and all new records to be created in the foreseeable future.
The system is capable of being run in parallel with the current system so as to have the opportunity to examine and overcome any unforeseen difficulties that might arise.
The system has been demonstrated to operate with a degree of accuracy at least as good as the existing system and as good as that used by similar universities.
The system can link seamlessly with the system used by the university for processing financial transactions and producing financial statements.
All information on the system can be accessed easily from outside the university through the internet.

Answer(s): A,C,D

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QUESTION: 13

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QUESTION: 14

QUESTION: 15

QUESTION: 16