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NEW QUESTION # 83
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: A,E
Explanation:
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)
NEW QUESTION # 84
Maxi Ltd is a medium-sized manufacturing organisation in the automotive industry that creates engines for cars. It has traditionally worked well with its suppliers, with strong relationships and regular meetings. There are currently around 15 suppliers who provide parts to Maxi Ltd.
Due to changing customer demands, Maxi Ltd will, from next month, modify the manufacturing of some of its products. Product X is being made more environmentally friendly, with output of CO2 being reduced by 32%. The product will take longer to produce, but there will be no additional cost to customers for this.
Maxi ltd are considering outsourcing the manufacturing of Product Y as it is not a product which is routinely ordered by customers. This will allow Maxi Ltd to focus on other products which generate higher revenues for the company. The concern within the Board of Directors is that if demand increases for this product, an outsourced company may not be able to cope with higher numbers of orders.
Product Z is an extremely popular item and oftentimes Maxi Ltd does not have the capacity to fulfil all orders. Consideration has been given to increasing the size of the factory, but this has been discarded as risky as demand is not guaranteed. The product has been available on the marketplace for a short amount of time and sales are continuing to increase, but the company believes this will soon plateau. To deal with current demand, the marketing team is working on campaigns to invite customers to make orders for this product at certain times of the year when product X is not being created in the factory.
This means resources can be reallocated to the creation of product Z.
Which of the following is thetrade-offin the modification of product X?
Answer: B
Explanation:
The modification ofproduct Xis aimed at making itmore environmentally friendlybut results ina longer production time. This means that thetrade-offisspeed-production takes longer. (LO 1.2)
NEW QUESTION # 85
Zelda is the Head Consultant at Pirate Architects Ltd, which provides services to clients in the construction industry. She has a team of 20 consultants and is considering how many projects each team member should handle. In terms of capacity loading, which factors should Zelda consider when assigning projects? Select ALL that apply.
Answer: A,B,D,E
Explanation:
Capacity loadingdetermines how much work each employee can handle. Key factors includeexperience, efficiency, time availability, and effectiveness. Salary isnotrelevant to determining workload capacity- though managers might mistakenly believe higher-paid employees should take on more. (See p.181)
NEW QUESTION # 86
Which of the following are disadvantages of thesmall-capacity strategyin capacity planning? SelectALLthat apply.
Answer: A,C
Explanation:
Thesmall-capacity strategymeans a company deliberately produces below optimal capacity. This provides agility and flexibilityto respond to market changes and allows forcustomer personalisation. However,the disadvantagesinclude:
* Higher production costs(lack of economies of scale)
* Weaker ability to compete on price(since larger-capacity businesses have lowerproduction costs) Options C and Dare disadvantages oflarge-capacity strategy, not small-capacity. (See LO 1.3)
NEW QUESTION # 87
Dan is an Operations Manager at a retail organisation. He is keen to understand more about the types of customers his organisation serves and has therefore devised new KPIs (key performance Indicators) with a customer-centric focus. He is particularly keen to understand which customersegments are providing the organisation with the highest ROI (return on investment). Which customer-centric performance measure should Dan look to introduce?
Answer: B
Explanation:
#Customer Lifetime Value (CLV)measures the total amount a customer is expected to spend over their lifetime with a company, helping identify themost profitable customer segments.
#Other KPIs are not suitable for Dan's needs:
* Churn Rate: Measurescustomer lossover time.
* Net Promoter Score: Measurescustomer satisfaction and loyalty.
* Customer Retention Rate: Focuses onhow many customers stay with the companybut does not indicate ROI.
For more insights onCLV, visit:#Customer Lifetime Value - WallStreetMojo (See LO 2.2, p.97)
NEW QUESTION # 88
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