Introduction to the Syllabus and E3 Exam

Enterprise Strategy/AW/00

Arj Wignaraja

CIMA Definition: ◦ A course of action including the specification of

resources required to achieve a specific objective. CIMA: Management Accounting: Official Terminology 2005 edition, p54

Johnson & Scholes:◦ “Direction and scope of an organization over the long

term which achieves advantages through its configuration of resources within changing environments to meet the needs of markets and to fulfill stakeholders expectations.” Johnson and Scholes, 1997 p10

What Is Strategy?

1. Where are we now?

2. Where do we want to be?

3. How are we going to get there?

Traditional Strategic Planning Is Really About Answering THREE Key Questions

These Questions Are Relevant to You, Today

1. Where are you now?

2. Where do you want to be?

3. How are you going to get there?

Exam Skills and Learning Outcomes

5 - Evaluation

4 - Analysis

3 - Application

2 - Comprehension

1 - Knowledge you simple have to know

you got to understand

you have to be able to do it

What you already know: E1, E2

Exam Skills and Learning Outcomes

5 - Evaluation

4 - Analysis

3 - Application

2 - Comprehension

1 - Knowledge

you have to be able to identify problems and

look at complex practical solutions

Also, you should take a proposed solution, apply it, then discuss issues arising from the application.

Skills you need to develop: E3

Exam Skills and Learning Outcomes

5 - Evaluation

4 - Analysis

3 - Application

2 - Comprehension

1 - Knowledge

you have to be able to identify possible solutions,

discuss their strengths/weaknesses,

then recommend and justify what you believe to be the most appropriate.

Skills you need to develop: E3

LIST OF VERBS USED IN THE QUESTION REQUIREMENTS

A list of the learning objectives and verbs that appear in the syllabus and in the question requirements for each question in this paper. It is important that you answer the question according to the definition of the verb.

LEARNING OBJECTIVE VERBS USED DEFINITION

1 KNOWLEDGE

What you are expected to know. List Make a list of State Express, fully or clearly, the details of/facts of Define Give the exact meaning of

2 COMPREHENSION

What you are expected to understand. Describe Communicate the key features Distinguish Highlight the differences between Explain Make clear or intelligible/State the meaning or

Purpose of Identify Recognise, establish or select after

Consideration Illustrate Use an example to describe or explain

Something

3 APPLICATION

How you are expected to apply your knowledge. Apply Calculate

Put to practical use Ascertain or reckon mathematically

Demonstrate Prove with certainty or to exhibit by practical means

Prepare Make or get ready for use Reconcile Make or prove consistent/compatible Solve Find an answer to Tabulate Arrange in a table

4 ANALYSIS

How you are expected to analyse the detail of what you have learned.

Analyse Categorise

Examine in detail the structure of Place into a defined class or division

Compare and contrast Show the similarities and/or differences between

Construct Build up or compile Discuss Examine in detail by argument Interpret Translate into intelligible or familiar terms Prioritise Place in order of priority or sequence for action Produce Create or bring into existence

5 EVALUATION

How you are expected to use your learning to evaluate, make decisions or recommendations.

Advise Evaluate Recommend

Counsel, inform or notify Appraise or assess the value of Propose a course of action

Exam Tip: Review David Harris article

Verbs Will Guide What Skill Levels Are Tested at the Exam

Count the marks assigned to each verb in past papers:

How Can We Be Sure What Skill Levels Will Be Tested in E3?

March 2010 March 2011

1. Knowledge

2. Comprehension 13% 5%

3. Application 7%

4. Analysis 23% 17%

5. Evaluation 64% 71%

100% 100%

You will not get to 50+ marks by nailing levels 1–4. Evaluation skills are critical to passing the exam!!!

Note: Percentages for each section exclude marks for Q4.

(a) (i) Explain alternative approaches that can be used by Boards of Directors, in general, to manage conflicting objectives between their stakeholders.

If IVB becomes a shareholder in DEF and is granted a seat on the Board:

(ii) Discuss why DEF's mission statement might change.

(b) The Board of DEF is considering acquiring WLS.

Advise DEF’s Board if the proposed acquisition of WLS is an appropriate strategic option. Your answer should include:

(i) an evaluation of WLS’s financial performance .

Note: There are 7 marks in this section for your calculations and a further 13 marks are for your commentary on your calculations.

(ii) The information highlighted in the audit report prepared by QEG.

(c) Recommend to the Board of DEF, using an appropriate model (for example, the Boston Consulting Group Portfolio Matrix), future strategies for each of DEF's current and potential business segments.

Learning Outcome Illustration – E3 Section A; March 2011

5 marks

5 marks

20 marks

10 marks

10 marks

50 marksTotal marks for Question One =

A: Competitive Environment (20%)

A1: Evaluate key external factors

affecting an organisation’s

strategy

A2: evaluate the impact of

information systems on an organisation.

B: Change Management (20%)

B1: advise on important elements in the change

process.

B2: evaluate tools and methods for successfully implementing a change

programme.

B3: recommend change management processes in support of strategy

implementation.

C: Strategic Position and Strategic Options

(30%)

C1: evaluate the process of strategy

development.

C2: evaluate tools and techniquesused in strategy

formulation.

D:Implementation of Strategic Plans and

Performance Evaluation (30%)

D1: evaluate the tools and processes of

strategy implementation

The Syllabus

Syllabus Section Subject Description

Learning Outcome

Indicative Syllabus Content

A Discuss the drivers of external demands forcorporate social responsibility

A Non-market strategy and forms ofcorporate political activity

A Contemporary developments in thecommercial use of the internet

A Customer retention and loyalty

B Business ethics in general and the CIMAcode of ethics

C Evaluate the process of strategy formulation

C Evaluate different organisational structures

C Real options

D Theories of control within organisations

What Is New for E3?

Source: Financial Management, Study Notes

√

√

√

√

√

√

√

√

√

The Exam: 3 Hours + 20 Minutes Reading Time

Material included in the syllabus for managerial or operational levels could also be tested in E3.

Section A – 50 Marks: Compulsory

• Pre-seen case material, common to P3, F3 and E3 (6-8 weeks prior to exam)

• Un-seen case material (new info on day of exam)

• Maximum of 4 questions, usually building on each other

Section B – 50 Marks

• Answer any 2 of 3 given questions (25 marks each)

• Short scenarios, to which some or all questions relate

• Usually structured around at least one model

Exam Tip

• How best to use the 20 minutes reading time?

Students don’t UNDERSTAND the question!!! “Briefly explain the importance of a mission

statement, and create a mission statement for XYZ Corporation.”

“Explain alternative approaches that can be used by Boards of Directors, in general, to manage conflicting objectives between their stakeholders.”

So Why the Low Pass Rates?

Understanding

Students don’t ANSWER the question!!! Answer the question that is given Use the information given Apply models and theories in the context of the

case/question Don’t provide additional analyses and

recommendations The clue as to how to structure the answer is

usually found in the question requirements.

So Why the Low Pass Rates?

Answering

Managing Director at Stax, Inc., a global strategy consulting firm

Prior to establishing the Stax Colombo office in 2005, served as a director in Stax’s Chicago office, and Manager in Stax’s Boston office

Prior to joining Stax, was with The Boston Consulting Group (BCG), helping formulate business strategies for Fortune 500 clients

M.B.A. from the Kellogg Graduate School of Management at Northwestern University,

B.A. in Economics, with honors, from Princeton University.

Old boy of Royal College

Contact info:◦ Mobile: 0773128441 Email: arjwigs@gmail.com Skype:

arjskype

Lecturer Bio: Arj Wignaraja

www.facebook.com/enterprisestrategy

What I do for a Living