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Salgo Ltd is an oil refinery organisation that has been in operation for 30 years. It has made increasing profits each year, with the most recent year's takings in excess of 20m. Salgo Ltd uses an Emergent Strategy principle when it comes to resource planning. What are the characteristics of this approach? Select ALL that apply.
Answer : B, E
An emergent strategy is one that has developed over time based on historical patterns of behaviour. It is not planned; it has evolved based on how things have always been done. As a result, there isn't forward planning, and it is not an effective way of creating change. Instead, the organisation must be reactive to market changes. (See p.153)
Joy is a Senior Accountant at Big Fish Ltd. The organisation is a manufacturing company that specialises in sporting and camping goods such as tents, fishing rods, and archery equipment. These items are produced using imported raw materials from a variety of suppliers, many of whom are based in low-cost countries. Joy is assessing the extent to which the organisation may be vulnerable to cost increases and fluctuating currency values. What is Joy completing?
Answer : C
This is a sensitivity analysis---checking how sensitive the organisation is to changes in finance caused by price rises or currency fluctuations. (See p.165)
For which activity would a Gantt chart be used?
Answer : B
A Gantt chart is used for scheduling. It's a visual way of showing what activities are completed and when. (See p.175)
Which of the following are not characteristics of good information?
Answer : C, E
Analysed and interpreted are not characteristics of good information. The key characteristics of good information are accuracy, reliability, timeliness, relevance, and completeness. (See p.178)
Paul is the Operations Manager at a button factory. Buttons are incorporated into many different fashion garments, and as they are currently 'on trend,' there is a high demand for more buttons. Paul is concerned that the factory cannot produce the number of buttons that is being demanded in the marketplace. He has calculated that each team within the factory only has the capacity to create 1,000 buttons per day, and he will decline any requests for buttons that exceed this amount. In terms of Capacity Loading, what is this called?
Answer : B
This is finite loading. There is a finite amount of buttons that can be produced. Finite means there is a limit. This is the opposite of infinite loading, where a team can take on additional tasks/orders without any issues. Maximum loading is similar to finite loading, but the difference is subtle---maximum is the amount of work that is possible in a given time period, but no limits are placed on this. In finite loading, a strict limit is placed. (See p.181)
