The Institute of Chartered Accountants of Pakistan

                                   


 

BUSINESS MANAGEMENT

General:

All the questions were well structured and required answers that were simple, straight forward and generally to the point. Still a majority of the students could not comprehend the depth and breadth of the questions, and therefore failed to frame responses with requisite precision and richness. However, overall it was felt that in comparative terms, English expression and grammar was better than previous attempts.

 

Question-wise comments:

 

Q.1

(a)

This part was not answered very well. Students pointed out that the job of strategic management should remain a top-level function as there are strategic decisions involved. Down the level information gathering or cascading was not elaborated upon. Some students did point out that operational level staff should be involved, but were not very clear about how or why this involvement should be initiated and made fruitful.

 

 

 

 

(b)

Again not a very well attempted question by most of the candidates. Candidates were unable to link the concept of stretched goals to keep the organization on toes and to start re-thinking the way they work now. Most of the candidates in their answer emphasized on normal goals giving reasons that stretching too much means inviting uncalled for troubles and losses. Some of the scripts did answer the question in correct spirit.

 
 
 
(c)
A similar kind of approach as mentioned in case of Question 1(b) was demonstrated by the candidates in general stating that organizations should depend on their internal capabilities to take business risks because if they take risks out of their capability zone they might fail. The concept of 'where the organization needs to be' was missed out. However, other students did provide an account of external opportunities which should be used to tie up organization's strengths to compete better in the market.

 

 

 

Q.2

(a)

Here, again students were able to identify that the statement was correct but unsatisfactory explanation was given for the strategic and cultural changes. Very few could give the strategic aspects related to core values such as distinct identity of the company and positioning/image in the minds of consumers etc.

 

   
 

(b)

Students were able to describe the control process and its importance. Many gave a diagramed illustration as well.

     
Q.3 (a) This question was generally well answered. In one way or the others candidates were able to point out different changes which are likely to take place as a result of privatization such as changes in environment, products, technology, organizational structure, style of management etc.
     
  (b) Students directed their answer mostly to psychological change mainly the fear of loss of job. Other changes which will affect individuals such as change in style of working (late hours, travelling etc.), relocation to other type of work and working with new technology etc. were seldom mentioned.
     
  (c) Generally a high scoring question. Most of the students were able to describe the factors to be considered while dealing with resistance to change.
     
Q.4 (a) Definitions of different types of brandings and their examples were asked. Most candidates gave very general answers. The details like consumer behavior/loyalty which generate these strategies were missing. The examples were also generalized and not specific.
     
  (b)

Candidates did this one well. It was a very short but scoring question in which students could gain marks easily just by identifying the basis of market segmentation and 2-3 examples.

     

Q.5

The case study of Neon International was attempted by majority and lengthy detailed answers were given. Candidates either left out the assessment part or gave suggestions for the company instead. Students couldn't differentiate between strategic and operational strategies. It seemed that the students wrote all the marketing strategies and concepts that they had learnt from their text books what was lacking was the applications of those concepts to that particular case. Many students copied "options for Sherry" from the question paper. Most candidates could not support their recommendations with proper reasoning/justification. Analytical ability was generally not seen.

 

 

Q.6

Again a simple and well scored question. Mostly students had clear concept of dumping, anti dumping actions taken by the government and the reasons thereof.

 

 

 Q.7

A simple question which was well attempted by a good number of candidates. Equally good number of students did not mention the type of tests rather gave description of methods how tests are conducted which was not the requirement of the question. As regards, pros and cons of tests many of the students failed to point out the right factors.

 

 

 

 

Q.8

(a)

Students generally gave the right and acceptable reasons why companies export or venture overseas. However, there was a tendency to repeat the same point again in a different way.

 

 

 

 

(b)

This part was also done quite satisfactorily as the answer was straight forward and simple.

 

 

 

Q.9

A simple question and generally well scored. Part (a) was well attempted by most of the candidates. However, many students did not point out repercussions of imbalance in the push and pull and repeated the characteristics of push and pull as marketing strategy of the company.