CAFF11 Pre-Exam

Preparation
12th October 2021
Robert Carpino
Lecturer – Dept of
Accounting & Management

1
 Content: Overview
▪ Topic 1 – The business environment

▪ Topic 2 - Globalisation and the Global Business Environment

▪ Topic 3 - Strategy, structure and organising

▪ Topic 4 - Governance, risk and controls

▪ This unit is designed to place the accounting function of an organisation, and the work of
accounting professionals, into a wider organisational context.

▪ We will introduce strategy as the overarching logic of an organisation and discuss how
strategies are put into action.

Deakin University CRICOS Provider Code: 00113B

 Topic 1 – The business environment
▪ 1.1 Introduction
▪ 1.2 What is strategy?
▪ 1.3 Analysing the external environment
▪ 1.4 Analysing the industry environment

Deakin University CRICOS Provider Code: 00113B

 Section 1.1 Introduction
• The external environment influences our business
Operations. As business leaders we need differences
between thinking Strategically versus Operationally.

• Is it about being DIFFERENT to your Competitor?

• Think of: Mercedes Benz versus Toyota (1)

• Alternatively: Burger King versus McDonald (2)

• What about: Westpac Bank versus National

Australia Bank (3)

Deakin University CRICOS Provider Code: 00113B

 Section 1.2 – What is
Strategy?

• Strategy can be thought of quite

simply.

• It is the setting of the long-term

direction of an organization.

• This involves a series of goals, plans

and actions that aim to ensure the
organization responds to the changes
around it, to compete effectively, and to
grow and prosper.

Deakin University CRICOS Provider Code: 00113B

 Section 1.3 Analyzing the
External Environment

Deakin University CRICOS Provider Code: 00113B

 Section 1.4 Analyze the Industry
Environment

Deakin University CRICOS Provider Code: 00113B

 Topic 2 – Globalization and the Global Business Environment

▪ 2.2 Globalisation, internationalisation and the changing nature of global commerce

▪ 2.3 International trade and the broader political and economic landscape
▪ 2.4 International Business
▪ 2.5 Trade, finance and the global business environment

Deakin University CRICOS Provider Code: 00113B

 Section 2.2 –
Globalization and the
changing nature of
commerce

Deakin University CRICOS Provider Code: 00113B

 Section 2.3 International Trade – political &
economic landscape

Deakin University CRICOS Provider Code: 00113B

 Topic 2.4 – International Business

Deakin University CRICOS Provider Code: 00113B

 Topic 3 – Strategy, structure and organising

▪ 3.2 Generic business level strategies

▪ 3.3 Formulating strategies
▪ 3.4 Organisational structure
▪ 3.5 Organisational behaviour: Individual differences
▪ 3.6 Organisational behaviour: Team dynamics
▪ 3.7 Organisational behaviour: Organisational culture

Deakin University CRICOS Provider Code: 00113B

Section 3.2 – Generic Business Level Strategies
Section 3.3 – Formulating Strategy & Section 3.4 Organizational Structure

Deakin University CRICOS Provider Code: 00113B

 Organizational Behaviour: Section 3.5 Individual differences
Section 3.6 Team Dynamics Section 3.7 Culture
Organisational behaviour:
Team dynamics
In teams, we are interacting with each
other, responding, and reacting to each
other.

We will behave differently than we do when

alone. For example, you may have the
personality of an extrovert.

But in a team, you may be the least

qualified person – so you may behave in a
more introverted manner.

Or you may be the sole male in a team of

women.

This would influence your behaviour too.

Deakin University CRICOS Provider Code: 00113B

 Topic 4 – Governance, risk and controls

▪ 4.2 Governance and strategy

▪ 4.3 Stakeholders and governance frameworks
▪ 4.4 Risk management frameworks
▪ 4.5 Disclosure and transparency in reporting
▪ 4.6 Data collection, storage and protection

Deakin University CRICOS Provider Code: 00113B

 Section 4.2 Governance & Strategy Section 4.3 Stakeholders and
governance frameworks Section 4.4 Risk Management Framework

According to the Australian Institute of Company Directors

‘corporate governance is a broad-ranging term which, amongst other
things, encompasses the
▪ Rules
▪ Relationships
▪ Policies
▪ Systems
▪ Processes
whereby authority within organisations is exercised and maintained’.

Deakin University CRICOS Provider Code: 00113B

 Section 4.5 Disclosure & Transparency in Reporting &
Section 4.6 Data Collection, Storage & Protection
CORPORATE REPORTING JOURNEY

Many organisations produce a

combination of financial, sustainability
and integrated reports.

The choice about how to report will

likely rest on the objectives the
organisation has, its target audiences
and the stakeholders’ expectations.

Regardless, a strong ‘business case’ for

extending an organisation’s reporting
efforts (particularly where voluntary)
has started to form.

▪ Financial reports
▪ Sustainability Reports
▪ Integrated reports

Deakin University CRICOS Provider Code: 00113B

 Content: Sample 10-mark question
▪ Question 1 – You have been trading successfully for many years running your traditional Alexander’s Menswear store in
the local Sydney Rd shopping strip in the heart of Coburg – suburb that is North of Melbourne. Using Porter’s Five Forces
analysis, what factors have caused this business to considerably lose financial ground and it’s previous dominance in the
market place.

A1 – With reference to Section 1.4

▪ 1. Low barriers to Entry – whereby shop fronts selling menswear does not require any special skills or expertise. Nearby
stores or larger shopping complexes can provide alternatives that is well within any existing regulations. Relatively easy
and cheap to set up.
▪ 2. Suppliers and Buyers have stronger positions – as customers can gain a better “shopping experience” in a large
shopping centre than “street shopping” with the many alternatives being accessible under the one roof. Suppliers are
always looking to mass produce and hence prefer to supply bigger stores that have greater ordering capabilities.
▪ 3. Strong threats from substitute products – many alternatives are now available that do not demand the expensive
prices charged by the traditional menswear store. Hence, shops like Kmart, Target and Big W provide cheaper
alternatives that customers feel are better value for money.
▪ 4. Intense rivalry among competitors – in search of increasing market share, many rivals such David Jones, Myers and
boutique menswear stores in larger shopping centres are all fighting for a fairly stagnant market that is less traditional in
formal wear than years on by.

Deakin University CRICOS Provider Code: 00113B

 Content: Sample 10-mark question
▪ Question 2 – In a recent project, you were placed into a group of five to complete a project plan to initiate change
required to a dysfunctional customer ordering process that has been identified in the your business. However, you have
encountered some degree of “social loafing” amongst team members.
What is meant by this expression & describe 3 ways to combat social loafing

A2 – With reference to Section 3.6

▪ Social Loafing – refers to the tendency of group members to exert less individual effort on an additive task as the size of
the group increases – resulting in “disproportionately relying or sponging off others” to complete the task. Can be
caused by low motivation, disinterest or dominant team members that makes others lazy in their attitude and
willingness to participate and contribute.
Ways to combat social loafing can include:
▪ 1. Create smaller project teams – gives team members fewer places to hide and hence a level of reliance is placed on
each team member’s contribution to the task at hand.
▪ 2. Agree to team norms– important that all team members agree on what is acceptable behaviour and that maximum
effort is made in the participation process to achieve the ultimate business objective.
▪ 3. Rotate team leadership – this keeps everybody in the team responsible to ensure they are not only prepared to
follow others, but then alternatively lead by example and manage the process as well.

Deakin University CRICOS Provider Code: 00113B

 Content: Sample 20-mark question
▪ Question 1 – You have been employed by Gippsland University to specifically address the bad publicity that has
emanated over the leak of confidential student enrolments. Hence, you are to run a project to ensure data protection
and across the University. What advice will you seek?

A1 – In brief with reference to Section 4.6

▪ The University to seek legal advice on its obligations ………understanding impact on stakeholders affected
▪ Seek technical advice ……….. On a variety areas including security, training etc
▪ Seek business advice ………… on investment requirements to resolve this situation
▪ Seek HR advice …….. Rules around employees, training and consequence of breaches etc
▪ Seek crisis management ……… given sensitivity of the data and impact on reputation going forward……

Being a specific application question it is important to state the 5 TYPES of advice to be sought, BUT do NOT provide just a
generic response, but rather state the issues surrounding the specific case and the industry it operates within and the
associated impact on the variety of Stakeholders.

Deakin University CRICOS Provider Code: 00113B

 Content: Sample 20-mark question
▪ Question 2 – Over the last few decades, Australia has been very successful in attracting Foreign Direct Investment as
well as its local companies establishing a similar footprint into neighbouring South-East Asian countries.
Identify and explain 4 advantages and 4 disadvantages associated with Foreign Direct Investment as well as the
underlying world problem that has been exploited by such activity.

A2 – In brief with reference to Section 2.5

Advantages include:
▪ Increased Productivity ……. Explain away…….
▪ Developing human capital …….. Increased employment opportunities & diversity
▪ Stimulate economic development ………….. Increases in GDP etc etc
▪ Tax incentives ……… havens of more favourable charges
Disadvantages include:
▪ Risks associated with political changes and unrest …..provide examples
▪ Modern day colonisation……. Not always accepted or agreed with
▪ Potential for increased costs ……. Due to logistics or compliance or fraudulent practices etc
▪ Exchange rate risks …………especially when dealing with countries that not on an equitable basis economically

AND…….Underlying World problem is the reference to MODERN SLAVERY – refer to the Video and
Modern Slavery Act 2018 and the Financial Review Article Nov 2020 on Wesfarmers practices
Deakin University CRICOS Provider Code: 00113B
 Exam: Structure
▪ Weighting
• 100% of final grade

▪ Time
• 10h commencement window (9am – 7pm, Melbourne time)
• 3h time limit (inc. download, reading, writing, upload)

▪ Format
• Short answer, applied questions

Deakin University CRICOS Provider Code: 00113B

 Exam: Access
Confirmation emails will be sent to all students registered for exam
from 22 September, including instructions how to access the “CAFE”
exam site

The Try-it-out exam is a highly-recommended short “mock” exam that tests

your system to see if it is suitable for the supervised online exam.

If you have registered for more than one exam in the same exam period,
you are only required to test the Try-it-out exam once.

Proctorio requires access to a working webcam and your computer microphone for supervision. You must use Google
Chrome as your web browser and install the Proctorio extension for Chrome, before taking the test.

IMPORTANT – Before commencing your Try-it-out exam, you must install the Proctorio extension, otherwise you will be
blocked by a password request. Click on the Secure Exam Proctor link to install Proctorio extension.

Deakin University CRICOS Provider Code: 00113B

 Exam: Support
▪ Resources to review:
▪ Online topic materials
▪ Discussion Forums
▪ Pre-Exam Support Workshop

Deakin University CRICOS Provider Code: 00113B

 Questions?

Deakin University CRICOS Provider Code: 00113B

 Good luck!

Deakin University CRICOS Provider Code: 00113B