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Ken, as you have mentioned the shareholder suspects of directors’ malpractice of controlling the share option price at the lowest level and gain a future enormous profit after exercising their options, this reward scheme has been mis-employed as self-earning of profit rather than incentivise them to improve the underperformance of daily operation of call centre service quality. Here, the question asks for advice on benefits and problems of such scheme. Is it advantageous to me to place equal balance of each issue (i.e. 3 for benefits and 3 for drawbacks) to earn marks? Note: this sub-part question is 8 marks.
Finally, this kind of issue does not appear in the APM syllabus. How do I encounter it? I have studied FM at an very earlier period and I have almost forgotten them. Do I need to read more e-business magazines so as to regain the related knowledge? Can you recommend other issues of magazine that can help me?
Sorry! Ken, I do not realize the consequence of transmitting the table format would be a mess. Please look closely at the criteria, both ABM and VBM act as headers and their related content.
Ken, I really understand what you have mentioned. Here, if the question asks for critically evaluate the pros and cons of ABM and VBM. And there are criteria for similarities and differences. In case I draw a table and answer in table format like this.
|————————————————————————————————————————-|
| Criteria | ABM | VBM | | | | |
| —————————————————|————————–|——————————————| |Pros | | |
| Enhance shareholder’s L.T. interest | cost reduction | increase Company’s |
| | by ABC | value EVA, DCF |
|—————————————————|—————————|—————————————–|-
|Cons | | |
|Drivers identified | cost drivers | value drivers |
| | difficult to be | difficult to be |
| | identified | identified |
|—————————————————-|—————————|—————————————-|Does the above presentation style satisfy the examiner’s requirements?
Besides, the CBE tool button can let you present the answer in the numbered list. Is it also advantageous for me to gain credits instead of headings and subheadings although this style of presentation is highly recommended by the examiner?
