AnswersStrategie Professional - Essentials, SBL Strategic Business Leader (SBL) ‘Specimen Exam 2 Answers |In the Strategic Professional Examinations, it not always possible fo publish suggested answers which comprehensively cover a the valié points which candidates might make. Credit wll be given to candidates for pots not included in the suggested answers, ‘Dut Which, nevertheless, are relevant fo the requirements. In adalon, fn the integrated case study examination candidates may ‘e-introduce points made in other questions or parts of questions as Jong as these are made inthe specific context of the requirements (of the question being answered. The suggested answers presented below inevitably give much more detail than would be expected from most candidates under ‘examination conditions and include mast of the obvious points evidenced from both the pre-seen information and the adaltional Information provided inthe case study exam information. These answers are therefore intended to provide a structure of the approach ‘required ftom candidates and cover the range and depth of Knowledge relating to each task which might be demonstrated by the most well prepared and able candiaates. They are also intended to support revision and tution for ruture examinations. Report to board of Yexmarine Introduction ‘This eport evaluates the two proposed investment projects — a new range of sling dinghies versus anew range of luxury yachts. ‘There fs $10m available to invest in ether project, but not enoush funds to complete both. This report evaluates the two projects ‘and makes a recommendation, Sailing dinghies Financial benets ‘The project has a positive net present value of $5-5m, indicating it should create value for Yexmarine it seems that revenue would ‘soon be earned rom the saling dinghies and the payback porod of under four years appears accoptable, given the five-year time horizon fo Improvements in Yexmarina’s nancial performance set by the chief executive. The investment would leave surplus funds cof $6m for investment elsewere. ‘sa cheaper and simpler craft, the market fr saling dinghies Is kely tobe wider, and the demand may not vary as much as for cursing yachts due to economic conditions, so the investment may represent effective diversication. Fashion changes are unlikely toaffect the demand for sling dinghies and they have the potential to become a steady long-term cash cow for Yexmatine. ‘As Yematne is lrget than the other companies which currently manufacture sailing dinghies in Neoland, should be abe to take ‘advantage of economies of scale, particulary after the move tothe new premises. Financial drawbacks ‘The gross and operating pront margins of 35% and 12% are lower than Yexmarine’s current margins and the chiet executive's targets, Having a price of $4,000, whichis tower than the sector average of $5,000, may initaly help Yexmarine esialish set in {his segment ofthe market, bu often sailing dinghies wil be Bought as a one-off purchase, so having low prices to encourage repeat jurchases is not efectve. Having the lowest price might aso be a problom ifthe dinghies are saen as lower qualty. The target market appears to be familes who ae leaning to sll with thelr children, and who ate likely therefore not fo wish to compromise on a perceved lack of safety features which they may associate with 2 lower price option Non Ananclal benefits By entering this market, Yermarine would be diferentiating itself ftom its main competitors. It would be adopting 2 clear cost leadership sttategy in the new matket, going some way to address the concern that its lasing matket share inthe culsing yacht market. The standard design of sailing dinghies fs simpler than cruising yachts, so this may allow fora leatning curve effect and ultimately more efficent production. ‘A customer purchase of a dinghy could be the start of a relationship which wil result in subsequent business for Yexmarine, including repair and maintenance work and perhaps, in some instances, eventual trading up fo a more expensive cruising yacht. Non-financial drawbacks Yexmatine faces a significant amount of focal competition jn this market, Although other manufacturers are smaller, they are long-established. A the design of sailing dinghies Is simpler than cruising yachts, it may be affcult fr Yexmarine to difrentat its lnghies fiom its competitors “The move may also lead to confusion as to what Yexmatine's overall strategic postion is. Yexmatine being associated witha cheaper, simpler product will potentially cause confusion as to where It stands in the cmusing yacht market. Lunxury yachts Financial benefits ‘This investment also has a postive net present value of $7. Both the grass and operating poft margins on lunury yachts of 62% ‘and 28% are higher than the cutent targets. The yachts are aimed at vey rien customers, who may be less afectod by an economic recession and may not economise on ibxury products. High fetus trom this product could generate Sup funds for investment esenner.Financial drawbacks ‘The net present value calculation ts likely to be an expected value based on Tgures which are very uncertain, because Yexmarine oes not currently nave a presence in this market. The figures may hide considerable variations, Including the possibilty that ‘Yexmaine wil alt succeed in this market. Given te high sling price, the forecast gures wil be sigicantyafected by quite 2 small number of sales, indcating the need for senstiy analysis. ‘The diference between the gross and operating oft margins of 34% i rather larger than for Yexmarine overall (25% current and forecast, indicating elatvely high fed costs which would be incurred whatavor th sal lve ‘As Yeumarine wil aso be seling to foregn customers, t wil face foreign exchange risk if ils in thelr curencies, ‘The planned investment utilises all the avalable surplus funds of $10m fom the sale ofthe two Hameldon sites. This means that Yexmarine's future would be very dependent on the success of this investment over the next few years and raises the question of ‘additional nance requitements if expenditure turns out to be higher than expected. Casts would not start being recouped until revere was teceved in thee years’ time. No payback target has been set, but a payback period of six years apgeas tobe lengty in ight ofthe chief executve's targets relating to improving performance within te next ve years. Non-financial benefits Producing luxury yachts would mean Yexrarine was clearly diterentiated fom its main local cruising yacht competors, Success In ‘his market would give Yexmarine an international presence and may also make the company more appealing 10 ivestors Fitsouaht a listing, Produetion of bespoke yachts could make beter use ot tne erasmanssip skis wnich Yexmarine's employees have, Once ‘Yexmarne has started constructing uaury yachts, some of the features could perhaps be incorporated into the culsng yachts, Non-financtal drawbacks ‘Yexmatine faces established foreign competion in this marke, including larger manufacturers. The number of customers in the market is likely tobe limited. Breaking ino this market wil not only involve considerable expenditure but also time resource from ‘management, with no oerainty of success, ts dificult to see how Yesmarine cau differentiate itself sufcenty from established Compettors. The benef from the mave othe new premises, the ablity to produce standardlsed products more efficent, would ‘not be relevant for aury yachts constructed individual Recommendations YYexmarine should not enter the luxury yacht market, The prospect of success against established manufacturers is insufficiently high and the commitment of current nancial and non-financial resources too gyeat and quite uncertain, Possibly the board might reconsider the investment if Yesrnarine achieves a listing and additonal nance becomes available Yexmarine should consider entering the salling dinghies’ market, as Its size may glue Mt economies of scalo and It would be compatible with the planned changes in moving to new production facies. However, dvesiyng into saling dinghies would not help Yexmarine adaress tne issues it currently faces in the crusing yactt mark. @ ‘Tranart Consultants Anystreet Lympoot 8 September 20%3, Dear Tony Establishment of strategy committee at Yexmarine Thank you for giving me the opportunity to comment on your proposal. | agree that there isa case for establishing a strategy ‘commitee, given te important srategic decisions which Yexmarine may need to take over the next few years I tiancial performance isto be improved and the proposed transformation of Yexmarine’s business takes pace. There wil aso be a need {or eappvalsal of governance sttuctues it Yexmarine seeks a isting. ‘Governance regulations will require the setting up of other board commits, for example, the aut committe, and you will reed to consider how the strategy committe ts within the overall committe structure, Benefits of strategy committee Strategic planning ‘The tems of reference you propose include strategic planning, Decision-making willbe enhanced if investment projects are ‘viewed in the light of plans to achieve longterm strategic objectives. Long lead tes and the lage capital expenditure requled ‘make It mportant for decisions on investments to it within the strategic planning framework. Review of environment The terms of reference emphasise he importance of the committee actwely seeking to be aware of environmental factors an particularly what competitors are doing, Consideration of these Tactrs Is very Important in determining the sulabiity and feasibly of strategic options. If competors are already estabished oF planning a large investment in a particular market, Yerrarine may not succeed in at market or wil need fo spend too much to make an impact) Consideration of strategie options Establishing a stateay committe should ensure that suficent time is given to considering strategic options. Board meetings have to considera range of issues, and this may limit the time avallable fra full discussion of stateay. Problems wit strategy committee Contusion of responsibities, ‘Governance best practice stats that certain decisions must be reserved forthe main board, including decisions about malor investments, This f to ensure proper board accourtabilty. The proposal thatthe stategy committae shauld be responsible {or choosing stratep options to be recommended for board approval may lead to confsion between the responsibiities of ‘the commitee and the boar. it could alsa mean the board being required to act as a tubber-stamp for decisions mae in ‘this committee, which would limit the input of directors who are not members of the strategy committe. It would be more in line with governance best practice forthe committee to evaluate statage options and to then present them tothe board for ‘consideration and decision-making. Role of non-executive directors Governance requirements also recommend the need for strategic proposals to be scrutinised and challenged. This is, in paticulay, the responsibilty of non-executive dectors, However, the proposed membership ofthe commitee doesnot include ‘any non-executive directors. Non-executive directors can bring wider perspectives, based on ther own experience, to strategic ‘decision taking ana can also help ensure decisions are taken In the ign of what fs acceptable to key stakeholders, Frequency of meetings The frequency of mectings Is nat defined. But the committe’ terms of reference include environmental monitoring, which needs to be continuous. Therefore, meetings will need to be regular. A minimum numberof meetings each year, to ensure ‘that requar consideration is given to envitonmental issues, should be specified, with one-of meetings being hed there is 2 Pariculatysignficant opportunity or threat arising from the environment which needs tobe considered Financial aspects There is no specific mertion in the tetms of reference to the committee considering the fancial aspects of strategies. The finance director has not been include as a member ofthe committee. This may mean that financial aspects are given insufficient consideration, so you should consider whether the finance giector should be a committee member. The terms ‘of reference also should specy the need for the commitee to consider Thancial aspeets. This should be supported by ‘spectiation ofthe financial information which the commitee needs to consider. Links between corporate and operational strategy The terms of reference also fail to mention the links between corporate stategy and operational strategy. There may potentially be confusion about now much autonomy functional directors have in decision-making in the ight ofthe overall strategie ‘ramework determined by the strategy committe. Human resources In addition, the teims of reference do not have anything about the committee considering intemal resources and capabilities. ‘whist members ofthe commitee can provide assessment of the areas wiere they have operational responsibilities, the ‘@clusion of the human resources director from the committee means there is a danger thet personnel issues may nct be Considered. These may be particuatly important in the ight ofthe changes wiich employees will experience when they move to the new faciy in Lympoo. | nope you fing these comments constructive, Please do not hesitate to get in Touch if you wish to discuss these points turther Yours sincerely Consultant Briefing notes fr board of Yexmarine on the Impact on the change process Impact on the change process The organisational change process can be viewed using a standard model of change. The stages are geting employees prepared for changes In behaviour, processes and operations (unteezing) the move tO new premises itself change) and the ‘apie setting down into the new situation (reteezin). Emplayee dssatistaction could have consequences foreach stage o is process Unreezing Employees beliefs that thelr opinions wil be ignored will hinder any process of consultation during this stage. Employees may be reluctant to offer opinions Hf they feel na notice willbe taken af them, or if they fear that expressing opinions which are tunpopular with management could be held against them. There also saems tobe a risk that more experienced or specialist ‘employees wil leave the compary. This wll mean that thee vil bea ack of motivated employees Who coud lead the process ‘of change and help convince other employees,Change The actual move tothe new premises is lkely to requite employees making a commitment of time greater than thelr normal ‘employment to ensure distuption is kept to a minimum. Employees may be unwilling to make this esta commitment if they ate not rewarded frit Tiss also the time when new processes wil be introduced. f employees ave not tied to learn tem properly or resent them, there isa risk that management could face activ resistance am employees, increasing te leve of disuption which the move will cause, This could result in service to customers being disrupted Retreezing There sa signncant risk that employees wil ever ok outings after the move Nas taken place, This wil require management time to correct ands koly to increase resentment, particularly if employees stil regard Yexmarine's management as coming ‘tom a diferent culture, This could mean decreased operational efciency due to significant employee turnover. AS a result, Yerrarine may find thatthe quay of service given to customers fal. (2) Report to chiet executive Introauetion ‘This report deals with suggestions to mitigate risks made by the operations director Flooding risk The assessment of foding risk a8 non-serious could be justified ifthe risk was sad tbe remote. However, as Yexmarine’s new ste will be in a coastal town where flooding is predicted to cccur, te sk seems potentially serous. Further investigation ‘should be undertaken to determine te overal impact and provabity of Tooding I the rk fs assumed tobe iow probability but high possible impact, transfering the risk to an insurance company would be ‘an appropriate general strategy. However, ifthe risk is considered tobe higher probably, insuring might become very costly ‘or the insurance options open to Yexrnarine may bocome limited Watching for flood warnings would ive advance wamings of ttouble, but there i no mitigating activity to reduce the impact of flocs if they do cecur.Yexmarine wil be dependent on the state of local flood defences, but they may not be enough Further risk mitigating activities ‘Yeumaine should take some food precautions itself to prevent or slow the impact of oding. Yesmarine should also have & contingency plan to rerganise premises or move some assets, or example, lecuical machinery or cumpute's. The plan shoul ‘also include seus to clean is premises up 2s quickly as possible if ey have been flooded. Howere, contingency planning ‘ll not be able to prevent damage to the premises or the yachts themseves i ooding is serious Product obsolescence isk Yermanne needs to be aware of what its main competitors are doing, However, just tying fo catch up with compettors wil take time and i essentially a reactive strategy, [Adding ational features to curtent models may be seen as beng reactive and not making Yexmarine distinct trom its ‘competters, and expenditure on limted changes could produce negative returns. Further risk mitigating activities ‘Yeumarine needs to take steps to be aware of developments intemationlly as well 3s locally, soit ean tecognise innovations which may take it ahead ofits competitors. Yesrarine also needs an overall innovation strategy. This would stat by developing an infrastructure which includes advanced information technology, human resource design capability and production processes flexible enough to be able to cope with ‘continual evolution Product develapment processes can be built onthe back of this infrastructure, Yexmarine also needs anew marketing message and retreshed image, and to make better use of marketing media, Data risk The activites listed will provide some protection provided they are operated thoroughly. All software used must be reguatly Updated and back-ups taken regularly and stored separately using cloud storage. Passwords wl lp restrict accoss, although to enhance security there should be diferent levels of passwords allowing access to dierent infomation, and password Protection procedures including the requirement for regular changes. Physical access barriers will nelp exert contol over on-staff onsite, but cannot protect against los of cata an computers taken fit or when data ls being transferred, Further risk mitigating activities ‘The contol given will also be stengthened by general controls which promote risk awareness or review risks, including taining, identification of unusual ontine activity and appointment ofan information security office Reputation risk relating to products and services The activity of monitoring pubic opinion Is leary justifed. Benchmeking against competitors can be helpful for both products and serves. For products ican establish where Yexmarine may be able to diferentiate set, for services It can estabish where Is loves are better or worse than compettors and suagest tress 6|A quslty management programme is relevant to repair services (customers want ther products repaired property) and als to yacht construction. However, customers, when buying a boat, will assume it conforms to specications and is safe, and that ‘wll not dotermine their buying decision, Further risk mitigating activities There fs no mention of monitoring the opinion of existing customers. This needs to be highlighted as a separate activity, as it ‘may provige early warnings of product problems and also identity treats to maintaining relationships wit customers, Yermanne also needs to take action on factors which will nfuence Buying, deciding the focus it wil give and ways IC wil ‘make existing products appear more anpealing than ts competitors’. Marketing initiatives wil also be needed to reinforce these messages. (0) Briefing note for board of Yexmarine on benefits of e-marketing Building communities E-marketing can enhance Yexmarine's customers’ petception of belonging to a community. Discussion forums on Yeararine’s ‘website, or groups on sacal media, can help answer customers’ questions. They also can encourage custome responsiveness, customer to-cusiomer contact, and customer generated content on issues connected with yachting which intrest tem. Further sub-communities could also be developed. Overs who have recently bought ther fist yacit would be one possibilty. Communities could be a source o dvect commercial advantage —fr example, yacht purchasers being ented to membership ‘of an extranet. Yexmarine can also use the information gleaned ftom te online communities 10 feed into product development ‘and oer process improvements, Individualisation E-marketing can result in marketing being better tageted at individual customers. E-marketing allows for a more systematic ‘collection of information about individuals and thelr preferences than face-to-face contact allows. It provides opportunities for individuals to initate contact by means such as banner ads. Indvidualsed content can be delvered through webpages and ‘mail, with users supplying details which ensure they receive what will be of interest to them. Websites or social media can provide ways for users ta express likes and dishes or ask questions, giving the impression that thelr concems matter and also ‘enabling Yeamarine to understand wat its customers’ requirements ar, Use of socal media It certainly te tat te more use Is made of socal mesa the wider the reach Is tikly to be. Making use of the most ‘curently popular forums ean help cortect the Impression that Yexmarine nas an ol-fashioned approach. Wie social media Use by a younger demographic can mean that Yexmarine’s reach can be extended beyond ifs current, olde, customer base which s Important tor the company’s long-term appeal, Social modia use can algo be a part of an international marketing, strategy, which may become more important for Yexmerine depending on the product investment decisions it makes, Promotion of empioyee expertise Exmarketing can offer a number of avenues to promote staff expertse. Blogs by senlor or specialist staff ofer the chance to ‘splay knowledge. Their bereft can be enhanced by interaction by customers, so that they acess the areas of intrest to ‘ustomers or questions customers have. Video links on websites can fim staff demonstrating their work. Tis can premete Interest from customers, and can also stenathen the relationships with them, as customers see staff whom they have dealt with in action, Marketing major product developments E-marketing provides many ways in which major product developments can be promoted. Some ofthese, such as mashots, wil be linked to the inavdualisation of marketing. E-marketing ofers various methods to create interest. Social media gives the ‘chance to communicate key features, sustaining 2 ‘buzz by releasing deals. Yearine can use a viral marketing campaign by supnlvng a promotional message by email, which &s then forwarded on by other users. The response sites offered by social media allow for adaptability by responding to concerns raised. The website can ofr still images with a wider potential Cerculation than promotional brochures and can offer video tours or demonstrations, highlighting yachts’ particular seling points.Strategic Professional - Essentials, SBL. Strategie Business Leader (SBL) 1 Investment projects For each project 1 mark foreach financial issue identi relevant to project (Up to 2 maximum of 7 maths) 1 mark for each non-financial issue identned relevant to project (Up to.2 maximum of 7 maths) Points can include Sailing dinghies Financial benefit = Positive NPv, therefore financially acceptable = Revenue eared soon and payback shor = Leaves surplus cash for other investments = Bigger market = Demand less vulnerable to economic coattions = Demand less vulnerable to fashion changes ~ Potential ong term steady eamer = Economies of scale — Loner pice than competition may help generate demand Financial drawbacks = Gross and operating profit margins lower than current and target = Low starting pice unlikely to encourage additional dinghy purchases = _ May be seen as lower quality and possibly unsafe Non-financial benefits = Simple to devetoo Diterentatlon rom competors Clear costmatket leader strateay Learning curve ~ Broader customer base ~ Start of relationship with customers Non-financial drawbacks = Significant competition = Dificut to aterentiate design from competitors’ ~ Falls to solve market positioning in culsing yachts market Lunxury yachts Financial benefits = Frsiive NPV, therefore financially accestable ~ Gruss and operating profit margins high than current and target = Appeal torch customers not affected by adverse economic conditions = _ High earing product generating surpluses for other investments Financial drawbacks ~ NPV figure nides consierable uncertainties Sensitivity to few, tree sales High Tce costs Foreign exchange sk = Ublisation of al the surplus and may need additional nance — Revenue nat fr some ime and lengthy payback period Non-financial benefits = Clear aeretiation ftom competitors in Necland = Intemational presence = Star produet atracing investors fisting takes place = Use craftsmanship skils ~ Incorporate some features into ather yachts Non financial drawbacks = Global competition ftom established manufacturers = Limited number of customers — Success uncertain and may involve considerable time resource = Dificut to iferentiate sett = Customisation contrasts with standard modes of cruising yachts Specimen Exam 2 Marking SchemeRecommendation | mark tor clear and reasonable recommendation 1 atk for Justification (Up 0 2 maximum of 2 maths) (Up to 2 maximum of 26 marks in total) Professional skills may be additionally rewarded as inthe following rubric: How well has | Not atall Not so well ‘Quite welt Very well the candidate demonstrates profesional skits as follows: 1 The candidate has The answer i not The answer is reasonably | The answor is vory vawauon skins | COMPO fad to wo balanced between | wel- balanced between | wal. balanced betwen discuss ona of tho the two projects, the two projects, the two projects, Making justiied recommendations which are based on a balanced assessment of| both projec. Report to board projec’ financial or non-fnancta aspects, Denents or arawaacks, The answer contains no evidence ofthe use of professional judgement to evaluate the proposed Investments inthe light of the strategic poston of, and the organisational implications for Yexmarne. The candidate has nat made any recammendations of whether to proceed with eer mvestment. their financial ard nan-tansal aspects, ‘and enents and ‘drawbacks. The answer contains limited evidence off the use of professional Judgement to ‘evaluate the proposed Investments in the ir of te strategie positioning of anc the organisational Implications fo, Yexarine. Although these Isa section on recommendations, what tne recommendations ‘ate 18 not cleat. The candidate has not ‘hen reasons for their their financial ard ‘non-fnancta aspects, {and tenemts and rawbacks The answer contains ‘reasonable evidence of the use of professional Judgement to ‘evaluate the proposed Investments inthe ght of the strategic positioning of and the organisational Implications fo, Yoxrarine. The candiate has supported ther recommendations by reference to ports made In te rest of te answer. The candidate has presented the answer ia their financial and on-inancial aspects, ‘and benents and drawbacks The answer contains strong evidence ofthe Use of profesional Judgement to ‘evaluate the proposed ltwestments in the light ofthe strategic positioning of, and the organisationat limatcations fo, Yexarine. The candidate has made reasontie recommendations whic are cleaiy justiied by Teference to points made fn the rest of the ansmer The candidate has recommendations, ar | @ report format. resented the answer in the reasons given do not 2 report format. relate tothe rest ofthe 0 133 266 4 102 (a) Up to2 matks for each benefit ofthe proposal. These can include: = Discussion of inividua projects within strategic planning framework — _Retive consideration of environment ~ _Retive consideration of competitors Sufficient time to consider stateaies = Opportunity to review now well statesles are working and wnether they neod tobe changed ~ Bolter use of boar time = Can respon quickly to opportuntiesthreats Increasing investor confidence when Yexmarine becomes a listed company (Up 10.2 maximum of 8 marks for benefits) Up to2 mati for ech problem with the proposal. These can inciude: Confusion between stategic commiize’s and board's responsibilities ~ Lack of NED involvement io challenge strategies Membership not diverse — _Nosmention of employes representative - may be heiptul as employees ate concerned about direction of strategy = Nominimum for how frequently committe should meet —needs to meet regulaly, e.g, to assess business environment = No mention of financial aspects of strategies = No mention of inks between highertevel corporate strategy and operational strategies = Nomention of capaniites and human resources = No mention of consideration of customer requirements (Up 10.4 maximum of 10 marks for problems) (Up to 2 maximum of 14 marks in total) Professional skills may be additionally rewarded as inthe following rub: How wetnas | Notatatl Not Wei te we ver welt tre candice semonstates brotesoal skits 2s fons: 2a) The cna es ror | Te carats Pas gen_| The candstes The candies Communcason | Santea te proposes | lmted certeaten ef | casein ofine | cleat one com intteconea ofthe | theropsas inthe | proposals mosty | ropa nk ote Corporate goromance | contro te corporate | Inte ote cxporate | coportegoremance Inclavingtte | reese ermarne | gevemance neo? | governance neds of | ree ef Yxmarine. The benatsc and | The canaaate tas roe | Yexmare an as nt | Yea Te carats | cant has aerafes problem wt, | dheussed stare | Indie poposas | has eid amiss | ems fo re thepropesa.” | specs ote azosas. | wy these neces. | am te propsas. | propos teter The canada has not] Te caret 0350! | ro canatate ras | The cada as ‘dentiied any omissions | Fc y als. presented the answer in | presented the answer in from the proposals. ropes 2 etter format. letter format. 0 133 266 4 uw(©) Up to marks per impact of staff dsstistaction onthe change process. These can ince Loss of senior stat who could lead etiange = Unwitingnes to oer opinions — _Unwitingness to contribute extra when change occurs = Active resistance when new processes introduced Return to old ways after changes introduced Increased staf tumnover affecting operations = Adverse impacts on efficiency and customer service (Up 10 3 maximum of 10 matks in tots Professional skills may be additionally rewarded as inthe following rubric: Quite well Very well Tho candidate has linked evidence of ‘employee alssatisaction to problems withthe organisational change process The candivate has presented the answer in 2 briefing nots format The candidate fas inked ‘evidence of employen dissatisfaction foal the main problems with the cvganisational change process. The candidate nas resented the answer in 2 beefing notes format. How well has | Not at all Not so well the candidate demonstrates profesional skits as follows: 200) The canditato has The candidate has made failed to fink evidence of | a fow links between Analysis SKS | cmpioyeo assatstacton | evidence of employoo Byconsidering | toprablems wih the | cissatistaction and the impact cganisatonal cnange | probiems wit tne ofempoyee | process. ‘organisational enange dissatisfaction process, out the inkage ‘on the change Is not aways clear process Briefing notes 0 133 266 4 23 (@)_ For each risk ~ 1 mark for each relevant point made In relation tothe associated risk mitigating activities ~ 1 mark tor each turer mitigating activity suggested (Up to.a maximum of 5 marks fr each risk discussed) (Up 0 2 maximum of 16 marks in tata Point can include Flooding risk ‘Adequacy of risk mitigating activities = Need to assess probability and level of impact = Insurance would transfor risk ~ Keeping informed ot food warnings ok = Local ood defences may not be enough Further mitigating activites ~ Need fr food precautions ~ its own defences and workplace organsaton to mit impact ~ Need for contingency plan ~ Some physical Gamage inevitable if flooding fs serious Product obsolescence risk Adequacy of risk mitigating activities ~ Need fo be aware of what compettors are doing but not just rescting to them — Adding additional features may be seen as reactive strategy Further mitigating activities ~ Need for awareness of wider developments ~ Need for innovation staegy, including conducting marke esearch and way products are introduced into market ~ THR and production processes need to support innovation ~ Need for new marketing approach Data risk Adequacy of risk mitigating activities ~ Regular updates requires — Regular vackups required ~ Passwords provide protection but nood fr diferent levels and changes = _ Physical barits do not protect information taken offste Further risk mitigating activities Need for general controls which promote awareness and review sks, = Training = dentfcation of unusual activity = Information securty officer Reputation risk relating to products and services ‘Adequacy of risk mitigating activities — Monitoring pubic profile starting point — Benchmarking provides useful indications = Quality management programme will address something which customers buying yachts assume willbe fine Farther risk mitigating activities ~ Need fo monitor existing customer opinion 35 well ~ Need for actions fo dferentiate products fom competitors, sugperted by marketing campaigns 1BProfessional skills may be additionally rewarded as inthe following rubric: How well has the candidate demonstrated professional skits as follows: ‘Not at all Not so well Quite well Very well 3a Scopes skits By questioning the adequacy of risk mitigation activites. Report The canaidate nas fated tocnattenge tne curent ‘isk mtigation acts, The answer fs purely descriptive. No attempt has made to suggest linprovements in risk ‘tigation acts. The canatdate nas made a tented attempt at chalenging the ‘adequacy of Yexmaine’s current risk mitigation ‘activites, There is inited ‘idence of evaluating the effectiveness ofthe ‘operations director's risk _maigation actives, but the opinions given andi the chalenges made are The canaivate nas ‘made a good attempt at changing the ‘current risk mitigation actives. Most ofthe ‘answer attempts to evaluate the operations recto's suagestions of risk mitigation athe. The opinions given and tne challenges made are mostly justified. Most of Tne canatdate nas made an excefent atempt at challenging the current Fisk mitigation ates, The whole answer is an evaluation of the operations director's suggestion for isk initiation activites. Al the opinions given and the challenges made hhave been justifed mostly not justified. the challenges relate to | The chaslonges reflect signifeant concerns. | sfgifeant concerns The candidate has The candidate has presented the answer in_| presented the answer in report format a report format ° 133 266 4 4(©) Upto 2 marks per relevant benefits of e-marketing discussed. These can include, Community = Building on sense of community = Community eatues allow active customer participation = Two-way communication can feed into product development Indviduatsation Systematic collection of information about individuals = Allows customers to intiate contact and talor approach = Gives customers opportunities to ask questions and express opinions Social media = Wider geographical reach Wider generational reach = Use of social media gives impression of being up-to-date Promotion of employee expertise Blogs allowing demonstration of knowledge and adaress customer interests Promoting customer interest by videos showing employees at work = _Ineraction and stenginened relations between employees and customers Promotion of major product launches = Mailshots taloed to interested parties = Promotion of interest on secial mesa = Vial marketing creating interest Website providing wider audience and range of features for promotion of new products (Up to a maximum of 14 matks in tota Professional skills may be additionally rewarded as inthe following rubric: How well has | Not at all Not so well ‘Quite welt Very well the candidate demonstrated professional skils as follows: 31) The answer fsa lst of | The canolate has The candidates answer | The candidate's answer commereiat e-marketing techniques | made some attempt | is focused on tne Is focused on the mast orcas | with no attempt made to | to acuss the benerts | penemts of e-marketing | important benemts of link them to Yexrarine’s. | of e-marketing and to Yexmarine ana tne | e-marketing to Yexrnarine By linking ccompetiwve stuation | actress the Bsues ratsed | candktate nas adsressea | and tne canuiate nas e-marketing and adress the issues | in the board meeting. | the Issues discussed in| fully adoressed the methods to the | oscussed in the board | However some of te | the board meeting. Most | issues discussed in Issues which the | meeting beneits discussed are | ofthe benefits would be | the Board meeting. AN directors nave not realistic or clear in| ralevant to Yeunarine’s | ofthe benefits would raised relation to Yeunarine | compettne postion. The | enhance Yetmarine’s Befng notes {2nd some af he issues | candidate has presented | compettve postion. The ‘alscussed inthe boara | tne answer in a briotng | canaiate has presented ‘meeting nave not been | notes format. the answer ina eietng adresse, ates format. 0 133 266 4 15