Paper E1 – Enterprise Operations

Post Exam Guide

May 2010 Exam

General Comments
This was the first paper under the new syllabus. The paper comprised an altered mark weighting of
questions compared to its predecessor with the introduction of two compulsory 25 mark questions.
Overall, candidates scored heavily on Section A (Question 1) multiple choice questions, moderately
on Section B (six 5 mark sub-questions) and poorly on Section C (Questions 3 and 4 each worth 25
marks) .
SECTION A – 20 MARKS
ANSWER ALL TEN SUB-QUESTIONS
Each question is worth 2 marks

Question 1.1

Electronic Executive Information Systems (EIS) and Expert Systems (ES) are examples of
A customer relationship management software.
B database management systems.
C computer networking.
D decision based software.
(2 marks)
The answer is D

Question 1.2

Technology which encourages user contributions and interactivity is known as

A Web 2.0
B business 2 consumer (B2C).
C e-commerce.
D teleworking.
(2 marks)
The answer is A

Question 1.3

Dispersed and virtual teams are normally a result of

A an economic downturn.
B developments in technology and information systems.
C poor staff morale and motivation within the workforce.
D ineffective human resourcing practices.
(2 marks)
The answer is B

Question 1.4

Integrated solutions in product design and control of machinery are based on

A a shared customer focused outlook.
B a JIT philosophy.
C CAD and CAM technologies.
D decision support systems.
(2 marks)
The answer is C

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Paper E1 – Enterprise Operations
Post Exam Guide
May 2010 Exam

Question 1.5

A main outcome of electronic data interchange (EDI) is

A user independence.
B to save paperwork by using structured electronically transmitted data.
C home working.
D improved internal communication.
(2 marks)
The answer is B

Question 1.6

A manufacturer concerned mainly with production efficiencies and reducing unit costs is known as
A product oriented.
B production oriented.
C operationally strategic.
D a learning organisation.
(2 marks)
The answer is B

Question 1.7

The influence an organisation will normally have over its macro environment will be
A limited or non- existent.
B high.
C extremely high.
D continual.
(2 marks)
The answer is A

Question 1.8

Non-political, not-for-profit, cause-orientated organisations drawn from more than one country are know as
A strategic business units.
B non-governmental organisations (NGOs).
C conglomerates.
D globalised networks.
(2 marks)
The answer is B

Question 1.9

Merit goods are commodities that

A comply with stringent international quality standards.
B society believes individuals should have for their wellbeing.
C are produced using expensive and highly valued ingredients.
D are earned through belonging to company loyalty schemes.
(2 marks)
The answer is B

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Paper E1 – Enterprise Operations
Post Exam Guide
May 2010 Exam

Question 1.10

The cognitive paradigm theory explains consumer behaviour through

A product branding.
B rational problem solving and decision making.
C past experience and levels of satisfaction.
D inertia or a lack of time.
(2 marks)
The answer is B

Rationale

Question One sub-questions 1.1 to 1.10 test candidates’ knowledge of a wide variety of topics within the
syllabus through the use of objective test questions (OTQs) in a conventional “multiple choice” format.

Suggested Approach/Marking Guide Marks

Sub-questions 1.1 to1.10. These sub-questions have been constructed on the basis that
there is only one correct answer. Marking is therefore on the basis of 2 marks for a correct 0 or 2
answer and 0 marks for an incorrect answer.

Examiner’s Comments
Most candidates scored well on this question.

SECTION B – 30 MARKS
ANSWER ALL SIX SUB- QUESTIONS.

Question Two

(a) An organisation has decided to outsource its IS function. Explain the main issues it needs to
address.
(5 marks)
(b) Describe the ways in which IS and IT might help an organisation's human resource function perform
its role effectively.
(5 marks)
(c) Explain how a manufacturer's promotional activity might vary depending upon the sort of distribution
channel that operates.
(5 marks)
(d) Construct a basic marketing mix for an online company selling branded sportswear.
(5 marks)
(e) Describe the range of internal possibilities that exist for an organisation wishing to fill a job
vacancy.
(5 marks)
(f) Discuss what an organisation could do to motivate its workforce without offering financial incentives.
(5 marks)
(Total for Section B = 30 marks)

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Paper E1 – Enterprise Operations
Post Exam Guide
May 2010 Exam

Rationale

Question two represents 30% of the paper and tests topics from across the syllabus. Learning outcomes
B 2 (b), D 2 (b), E 2 (a) and E 2 (b) were tested. Responses for each sub-question are expected in a form
that might include a few headings, sentences and bullet points over a page or so per sub-question.
Questions are direct and are not complicated by detailed scenarios. As such, accuracy, brevity and clarity
are called for and hopefully candidates should not spend a disproportionately long time on each sub-
question.

Suggested Approach/Marking Guide

Requirement (a) Marks

• Identify a number of factors (possibly in time sequence)
• Explain each factor in turn.

Communication with the current workforce (rationale, timescale, redeployment, negotiation)

Invite tenders (tender documentation, briefing interested contractors, formal planning,
bidding and legal documents) Max
Choice of contractual partner (evaluation and selection processes and criteria, background 1 mark
review of potential contactors) each
Establish working relationships and organisation (mutual roles and expectations, contact
through relationships at various levels)
Briefing for chosen contractor (business process, organisational culture, contacts)
Process of handover (phasing, future of current IS staff, training of new staff)
Establish and monitor cost (budget established & controlled, account for additional costs)
Managing contract compliance and adherence to predetermined standards (performance
criteria and review mechanisms)
Ensure satisfaction of user requirements (Systems to evaluate and monitor user
satisfaction and system for remedial action)
Other relevant substantive point(s)

Total marks awarded Max 5

Requirement (b)
• Identify key aspects of an organisation's HR function
• Identify relevant IS and IT applications and software
• Link aspect to IS and IT and describe contribution that could be made

HR planning: spreadsheets, databases, web based enquiry, modelling

Reward/ Payroll operations: cashless pay, packages to calculate and capture information Max
Recruitment: electronic advertising copy, online recruitment 1 mark
Employer branding: e.g. attractive web site each
Selection processes: automated in tray exercises, simulation, profiling questionnaires
HR policies/ legal compliance: intranet, emails, videoconferencing, teleconferencing
Workforce management: HR management information systems
Dissemination of good practice: Knowledge Management Systems (KMS)
Repository for organisational policies: intranet (reference point & induction materials)
Delivery of training content and material: online access, DVDs
Conflict resolution/ disciplinary process: Complaint procedures on line (maximum 1)
Other relevant substantive point(s)

Total marks awarded Max 5

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Paper E1 – Enterprise Operations
Post Exam Guide
May 2010 Exam

Requirement (c)
• Identify types of distribution channel
• Identify marketing promotional possibilities
• Explain each possibility within the context of the distribution channel

Channel Identification of sort of distribution channels (zero level, one level, two level) Max 1
Promotion Identification of promotional possibilities (direct marketing, “Push” marketing,
“Pull” marketing) Max 1
Explanation of promotional possibilities Max 2
Link between channel and promotional approach (Zero-Direct; One and two level
distribution channels push or pull) Max 2
Other relevant substantive point(s) Max 1

Total marks awarded Max 5

Requirement (d)
• Explain the mix concept and its four dimensions
• Against each dimension apply to the given scenario to produce a likely marketing mix

Product: e.g. pictures, product descriptions on web site, strong brand name important,
1/2
selection of appropriate and up to date product range Max 1
Place: e.g. reliant on effective website, coverage global, transportation contracted out, marks
appropriate choice of sufficient stock levels and warehouse facilities each
Promotion: e. g. attractive, user friendly website and high visibility/optimisation of the site
through web search engines, possible pop-ups and links from general sports and leisure
sites
Price: e.g. higher than unbranded products but lower than high street shops, discounts for
customer repeat purchases or bulk purchases, payment by debit or credit card

Total marks awarded Max 5

Requirement (e)
• List internal possibilities
• Describe each in turn

Advertising by notice boards, email, intranet, organisational newsletters.

Internal promotion or moving sideways into the vacant role?
Advertising on website or posters outside buildings. Max 1
Appointing without advertising. Corporate career development, redeployment or mark
recommendations of organisational managers? each
Locally maintained (CV) register of those who have submitted a CV, taken a career break
or maternity leave, etc.
Previously unsuccessful candidates
Workforce recommendations
Other relevant substantive point(s)

Total marks awarded Max 5

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Paper E1 – Enterprise Operations
Post Exam Guide
May 2010 Exam

Requirement (f)
• Identify a range of appropriate non-financial motivators
• Discuss each in turn with reference to workforce motivation and theoretical concepts
where relevant

Encourage social relationships (Hawthorne Studies, relationships between team members

and between workers and their managers)
Structure the organisation positively to emphasise self-directed work teams
Develop positive culture so employees feel valued and motivated to contribute positively. Max 1
Communicate positive messages, (enhance total reward package, pay attention to mark
“hygiene” factors, regular communication) each
Effective job design for interest, variety, challenge and collaborative working (job
characteristics model)
Introduce job variety (through job enlargement, job enrichment, job rotation).
Offer training and skill development
Clear goals consistent, aligned between departments, communication of performance
Provide resources Updating of equipment to enable efficient performance.
Competent management responsive to requests for support, sensitive and fair in issuing
instructions, consistent in decisions made.
Other relevant substantive point(s)

Total marks awarded Max 5

Examiner’s Comments
Alternative valid approaches adopted would receive credit

There was mixed performance when responding to Question 2. Well prepared candidates who applied
their knowledge to the scenario scored heavily.
Common Errors
• 2(b) Some candidates failed to relate IS/IT to the function; others just described virtues e.g. time
saving without reference to application of process involved.
• 2 (e) Some candidates described the advantages of internal recruitment rather than the
possibilities available.

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Paper E1 – Enterprise Operations
Post Exam Guide
May 2010 Exam

SECTION C – 30 MARKS
ANSWER BOTH QUESTIONS

Question Three

(a) Describe the key factors involved in the emergence of the BRIC economies.
(10 marks)
(b) Explain the advantages and the associated problems for the G Banking Group of offshoring its back-
office operations to an emerging country.
(10 marks)
(c) Identify the role that the Group's Human Resources Division can play when dealing with employees
who cannot be redeployed following the offshoring of its back-office operations.
(5 marks)

(Total for Question Three = 25 marks)

Rationale

Question Three requires an application of knowledge and understanding to the scenario of a banking
group offshoring to one of the BRIC economies. Global Business Environment and Managing Human
Capital syllabus areas are tested. Requirement (a) tests learning outcome A 1 (a) 'explain the emergence
of major economies in Asia and Latin America'. Requirement (b) tests learning outcome A 1 (b) 'explain the
emergence and importance of outsourcing and offshoring'. Requirement (c) tests learning outcome E 1 (a)
'explain how HR theories and activities can contribute to the success of the organisation'.

Suggested Approach/Marking Guide Marks

Requirement (a)
• Comment on the BRIC economies
• Indicate that the development of these economies is to some extent unique and why
• Describe briefly the more general factors responsible for their development and growth

Definition: BRIC economies identified why these countries are associated together
Communication: Developments in electronic communication such as the internet, 1 to 2 marks
Transportation: Improvement in transportation such as containerisation jumbo jets,etc. per
Convergence of tastes through the development of foreign travel and the world wide media substantive
The reduction of trade barriers point
The growing readiness of multinational enterprises to take advantage of instant
communication and more rapid and cheaper transportation
Advantage of economies of scale and benefits of comparative advantage
Previously poverty: Until this century they were very poor economies. This makes growth
easier to achieve.
Internal factors encouraging growth
Role of government in adopting policies to assist the development of its own business
infrastructure.
• Incentives: The offering of greater incentives to individuals and businesses to benefit
from their entrepreneurial efforts
• Technology: Adoption of new agricultural techniques has improved productivity and this
in turn has provided a pool of labour available to work in the new manufacturing
industries
• Education: Improvements in education have been fostered
Other relevant substantive point(s)

Total marks awarded Max 10

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Paper E1 – Enterprise Operations
Post Exam Guide
May 2010 Exam

Requirement (b)
• Outline the general idea of offshoring
• Explain the advantages
• Explain the disadvantages

Advantages
Good communication: Heavy investment in IT and the communications infrastructure
Lower its cost of operations
Group can concentrate on the more complex side of its operations and become more
expert and efficient in these activities through division of labour
Speed: Greater staff resource enables faster responses to customers.
Sales to offshore country: Encourages future sales 1 to 2 marks
per
Problems substantive
Misunderstandings and conflict arising from cultural differences between say D managers point
and E employees
Additional taxes. Due to political polices of some emerging economies
Language differences and time differences to be overcome.
Image of the Group suffers in own country. (Real or perceived differences in service levels)
Technical: Technical ability of staff and the local supply chain of essential supporting
materials may be inadequate in some areas.
Legal: Risk of loss of confidentiality. Respect for intellectual property rights?
Other relevant substantive point(s)

Total marks awarded Max 10

Requirement (c)
• Identify and outline the kind of assistance that might be offered to those losing their jobs
in Country D

Assistance with re-training

Severance payments based on years of service
Time off to attend interviews for new posts 1 to 2 marks
Communication: relevant staff union and staff. per
Consult: Consultation process should seek wishes of affected staff substantive
Advice: Careers advice can be given to those wishing to consider a new career path. point
Counselling
Other relevant substantive point(s)

Maximum marks awarded Max 5

Examiner’s Comments
A substantive 25 marks are available. However, there was a lack of content in most cases indicating that
insufficient time had been spent in addressing the issues in the scenarios.
Common Errors
• Not writing enough. Some answers were nothing more than outline notes when the questions had
more substantial requirements.
• 3(a) exposed knowledge gaps in a number of unprepared candidates.
• Some candidates argued a case that employees could be redeployed, when the question makes
clear they cannot.

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Paper E1 – Enterprise Operations
Post Exam Guide
May 2010 Exam

Question Four

(a) Describe the developments in strategic supply chain management in recent years and explain how
the adoption of the new approaches could assist W Company to improve its competitive performance.
(10 marks)
(b) With reference to BPR and process maps (or charts), explain how process design could contribute to
a more effective and efficient system of operations in W Company.
(10 marks)
(c) Explain briefly how a code of ethics could help W Company to limit future incidents of unethical
behaviour.
(5 marks)
(Total for Question Four = 25 marks)

Rationale

Question four involves a manufacturing company trying to improve its operations. The sub-questions test
candidates' understanding and application of issues associated with Operations Management and
business ethics. Requirement (a) tests learning outcome C 1 (b) 'explain the relationship of operations and
supply management to the competitiveness of the firm'. Requirement (b) tests learning outcome C 2 (b)
'explain process design'. Requirement (c) tests learning outcome E 1 (b) 'explain the importance of ethical
behaviour in business generally and for the line manager and their activities'.

Suggested Approach/Marking Guide Marks

Requirement (a)
• Indicate briefly the move to a more strategic approach in recent years
• Explain developments in Supply Chain Management and how this contributes to the
improved performance for Company W

Cousin’s strategic supply wheel - Explanation

Re-structuring to improve interactions within the organisation and to enhance control
process
Collaborative approach with suppliers to improve cost savings and improve quality in W 1 to 2 marks
Cost/ benefit analysis as means of deciding between competing supply alternatives per
Porter’s value chain analysis to identify the strengths and weaknesses in W’s supply chain substantive
• efficiency and effectiveness of links in the value chain with key rivals point
• Competitive advantage through linkages between the organisation and its value system
components can be achieved by the analysis and subsequent improvement of relations
with its suppliers and with its customers.
Other relevant substantive point(s)

Total marks awarded Max 10

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Paper E1 – Enterprise Operations
Post Exam Guide
May 2010 Exam

Requirement (b)
• Define process design
• Explain process design approaches and techniques
• Explain how each could be used to evaluate the existing processes and to suggest
improved ones for a manufacturing organisation like W

Process design defined

Aid to process analysis : Process maps/charts
Advantages of process maps capture the operations process by illustrating activities that
transform inputs into outputs
Process reorientation involves carrying out jobs and tasks more efficiently, overcoming 1 to 2 marks
BPR definition and explanation Involves the fundamental re-thinking and redesign of per
existing business processes linked to scenario constraints and making better use of substantive
resources. point
BPR as a tool available for the improvement of processes
Features of BPR (Creative use of IT /Ambition/ rule breaking)
Suitability of BPR to W
Other relevant substantive point(s) (maximum 1 per point)

Total marks awarded Max 10

Requirement (c)
• Describe the nature of a Code of Ethics using reference to an example
• Explain briefly how such a code could assist Company W staff to behave in a
professional and ethical manner

Description Code of Ethics described, Unethical behaviour described

Function of code of ethics explained
Need to tailor code to the particular organisation/employees.
Features: 1 to 2 marks
Commitment per
Group pressure discussion of what is acceptable behaviour so as to facilitate compliance substantive
Training to reinforce the necessary behaviour. point made
Publication of code enhances the reputation of the organisation and encourages compliance
Two way responsibilities: An ethics code stresses mutual obligation
Reporting: procedure for reporting suspected breaches and sanctions that will aid
compliance
Other relevant substantive point(s)

Total marks awarded Max 5

Examiner’s Comments
Common Errors
• Not writing enough. Some answers were nothing more than outline notes
• 4(a) Poorly answered, generally exposing a lack of knowledge and understanding
• 4(c) Some candidates outlined the content of a code rather than explaining how it could help.

With regard to Section C a good answer should demonstrate knowledge and understanding through
clear, well developed narrative relevant to the requirements of the sub-question. Purposeful expansion
of points made and good application of the thinking to the context of the scenario.

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