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(c) Discuss TWO limitations of the Boston Consulting Group matrix as a strategic planning tool. (4 marks)
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(ii) Briefly discuss TWO factors which could reduce the rate of return earned by the investment as per the
results in part (a). (4 marks)
(b) Identify and discuss the appropriateness of the cost drivers of any TWO expense values in EACH of levels (i)
to (iii) above and ONE value that relates to level (iv).
In addition, suggest a likely cause of the cost driver for any ONE value in EACH of levels (i) to (iii), and
comment on possible benefits from the identification of the cause of each cost driver. (10 marks)
(c) At a recent meeting of the board of directors, the managing director of Envico Ltd said that he considered it
essential to be able to assess the ‘value for money’ of each seminar. He suggested that the quality of the speakers
and the comfort of the seminar rooms were two assessment criteria that should be used in order to assess the
‘value for money’ of each seminar.
Required:
Discuss SIX separate and distinct assessment criteria (including those suggested by the managing director),
that would enable the management of Envico Ltd to assess the ‘value for money’ of each seminar.
(6 marks)
(1) the determination and quantification of objectives and strategies
(2) the measurement of the results of the strategies implemented and of the achievement of the results through a
number of determinants
(3) the application of business change techniques, in the improvement of those determinants.
Required:
(a) Discuss the meaning and inter-relationship of the terms (shown in bold type) in the above statement. Your
answer should incorporate examples that may be used to illustrate each term in BOTH profit-seeking
organisations and not-for-profit organisations in order to highlight any differences between the two types of
organisation. (14 marks)
2 The Information Technology division (IT) of the RJ Business Consulting Group provides consulting services to its
clients as well as to other divisions within the group. Consultants always work in teams of two on every consulting
day. Each consulting day is charged to external clients at ￡750 which represents cost plus 150% profit mark up. The
total cost per consulting day has been estimated as being 80% variable and 20% fixed.
The director of the Human Resources (HR) division of RJ Business Consulting Group has requested the services of
two teams of consultants from the IT division on five days per week for a period of 48 weeks, and has suggested that
she meets with the director of the IT division in order to negotiate a transfer price. The director of the IT division has
responded by stating that he is aware of the limitations of using negotiated transfer prices and intends to charge the
HR division ￡750 per consulting day.
The IT division always uses ‘state of the art’ video-conferencing equipment on all internal consultations which would
reduce the variable costs by ￡50 per consulting day. Note: this equipment can only be used when providing internal
consultations.
Required:
(a) Calculate and discuss the transfer prices per consulting day at which the IT division should provide
consulting services to the HR division in order to ensure that the profit of the RJ Business Consulting Group
is maximised in each of the following situations:
(i) Every pair of consultants in the IT division is 100% utilised during the required 48-week period in
providing consulting services to external clients, i.e. there is no spare capacity.
(ii) There is one team of consultants who, being free from other commitments, would be available to
undertake the provision of services to the HR division during the required 48-week period. All other
teams of consultants would be 100% utilised in providing consulting services to external clients.
(iii) A major client has offered to pay the IT division ￡264,000 for the services of two teams of consultants
during the required 48-week period.
(12 marks)
The audience watching the films was asked to rate the executive and the visitor in terms of status.A certain set of rules about status began to emerge from the ratings.The visitor showed the least amount of status when he stopped just inside the door to talk across the room to the seated man.He was considered to have more status when he walked halfway up to the desk，and he had the most status when he walked directly up to the desk and stood right in front Of the seated executive.
Another thing that affected the status of the visitor in the eyes of the observers was the time between knocking and entering.For the seated executive，his status was also affected by the time between hearing the knock and answering.The quicker the visitor entered the room，the more status he had.The longer the executive took to answer，the more status he had.
11.The experiment designed by the two researchers aimed at finding out().
A、how business is conducted by an executive and a visitor
B、how to tell the differences between an executive and a visitor
C、how to tell businessmen at a glance
D、how businessmen indicate status
12.Which ofthe statements can best sum up the passage().
A、The executive has a higher status than the visitor.
B、Mitary people wear uniforms but the businessmen do not
C、Astudy revealing a set of rules about the stalus of businessmen.
D、tisa good melthod to use a series of silent fim in research
13.Having entered the room, the closer the visitor approaches the executive,().
A、the less it affected his status
B、the lower his status
C、the more it affected his status
D、the higher his status
14.The longer the seated man was in answering the knock,().
A、the higher his status
B、the less it affected his status
C、the lower his status
D、the more it affected his status
15.Which statementis NOT true().
A、Soldiers wear uniforms with various symbols so that one can tell their status ata glance.
B、In the experiment, one actor played the executive while the other played the seated man
C、Business people wear similar suits.
D、The audience watching the flim rated the executve and the vsitor in tems of status
(c) Explain the term ‘target costing’ and how it may be applied by GWCC. Briefly discuss any potential
limitations in its application. (8 marks)
(c) Critically discuss the statement (in note 12) of the managing director of GBC and suggest how the company
could calculate the value of the service provision to the population of the Western region. (6 marks)
A.by
B.in
C.regard
D.as
