*** P3 June 2016 Exam was.. Instant Poll and comments ***

It was ok – Time pressured but overall a fair paper.

Decision Trees came up for 14 marks which threw me a bit.

Also popping up was Porter’s Diamond and Ansoff’s Matrix.

I went for Option Y as it had the greater probability of a positive return on investment and had a lower intial capital outlay. Not sure if i’m right though!

Just ensure you read the entire syllabus so no surprises.

does anyone remember the cost of option y?

I had the same workings as you, but i got net profit 1.8 for x and 1.82 for y ( the one with the lower intital investment). so i think i went to select y

I messed up, I included the initial outlay of 6m/4m in each in each outcome, which I guess isn’t correct.

The high high outcome was the joint probably. I interpret this as if you get one high ie 0.2*6 you are guarenteed to get a high next go ie 1*6 so xP(x) is 7.2. However I then took off the initial 6 so my answer was 1.2 for high high, which is wrong.

I dunno, past papers seem to suggest most of the points are for the discussion rather than the tree itself, I’m trying not to worry about it because I wrote quite a lot so maybe ill pick up marks there

LH/ LL (0.8((0.5*3)+((0.5*(2*3)+0.5*(0.5*3)))=+4.2

Are we supposed to use 80%x50% first and then 0.5 or is the above working correct?

Q1(a) im not sure what im writing, hopefully i could scrap some marks from it

(b) decision tree, looks ok, some calculation, and some discussion about the weakness of trees, like the option X and option Y risk is different ..Due to the high demand cash flow and low demand cash flow, option Y has more steady cash flow

(c) very long and lengthy question

original receivables is 49 days and payables 24 days , adjusting it both to 30 days will realised about 589k from receivable , 134k from payables, add retained earning 775000 and will only gives you around 1.5m cash, which is still far away even cheapest option Y, since gearing ratio only 32%, pumping 1.7m cash into the company will become 60% gearing ratio, looks ok since 55% is the standard rate

stock issue is not an option because shareholder against it , they want retain control

however, even when loans of 1.7m has taken , only 3.2m raised , still 800k left, so the only last option is to persuade the current shareholder to buy more shares, in order to raise fund and retain their power

Q2(a) Wonderful question for those who is pro in IT, simply suggest solution for the weakness

(b) corporate governance! first CG question appeared in P3, the issue would be since the SRO website is relying on sponsored link and advertisement for revenue (keeping the website alive) , but it doesn’t actually gives feedback to those company who advertised it , or sponsored link, since the scenario says the online shopping has grown number of unethical seller …it only evaluate FEATURED company..not from the avertisement or sponsor link

another ethic concern will be moving to foreign land, this may lead to worse condition , unethical trading is even worse as corruption is bad, unauthorised payment could be paid

Q4(a)

Portal diamond

Factor condition
skilled labour, easy access to building materials

demand condition

strong presence of market for Engin

Supply related industry

Theres problem finding environment experts

Rivalry

This is the STRENGTH of Engin as intence competition shape Engin into strong competitor , before they are ready for global market

Thats all my 2 cents thoughts

How should we answer question 1(a) Forgot about the question but something related to the Quadrant B C D? & Ques 4(b): Strategic, Operation and Organizational Problem?

Hi there. How did you draw up the decision Tree?

Again not proud od myself, not even going through correct answers, for example I concluded that in Q1 b option Y is worthwhile, so probably not a good choice… don’t want to bring myself down. All I can say it was all in syllabus, so I can only blame myself. In 5 weeks I will be one stressed lady…

Agnescu, dont worry, somebody tryied exam in fourth time, like me?