*** ACCA P3 December 2017 Exam was.. Instant Poll and comments ***

@streetgold said:
Oh boy, I think u got little mess up with BCG matrix, it will never refer to gross profit margin, gross profit is used to comment on the co figure……

Can you please elaborate your point? Gross margin or gorss profit, what’s the difference?

@streetgold said:
It a mistake bro, just wanna tell u BCG matrix would never refer to gross profit margin, but u can use it to comment on the co performance.

Ok fine, BCG matrix questions normally have four lines

Sector TO
Company in Q TO
GP
NP

In this paper, there were three lines
Market TO
Company TO
Net Profit or Gross Profit (Can anyone confirm)?

I’m saying it was GP, streetgold is saying it was NP. Anyone else can please weigh in?

@streetgold said:
Since when I mention anything related to net profit

Ok let me put simply, what was the other financial figure given in BCG question other than Turnover of the comany?

@mumbaikar said:
You had to calculate all ratios like gpm but then for bcg only market share for each year and the industry growth is relevant

Ok fine. Understood your point.

So if I say, Company X’s GPM is just 4.4% which means the company is most likely not generating any net profit for the shareholders and industry in which it operates is in decline stage which may lead to further erosion of GPM and losses hence parent company should dispose of it? Regardless of BCG or Ashridge, common sense says get rid of it, isn’t it? Am I missing something here?

@tayyabom said:
Ok fine. Understood your point.

So if I say, Company X’s GPM is just 4.4% which means the company is most likely not generating any net profit for the shareholders and industry in which it operates is in decline stage which may lead to further erosion of GPM and losses hence parent company should dispose of it? Regardless of BCG or Ashridge, common sense says get rid of it, isn’t it? Am I missing something here?

Actually i guess there are several answers and yes if u justify ur answer well the marker cant cut you off?

@streetgold said:
What u write for u answer for farm for BCG and ashridge?

Dog and Alien.

was the farm value trap?

@acca6578 said:
Just wondering how could the Farming company a cash cow? I know it’s has the highest Market Share, but both the market size as well as the gross profit margin is declining significantly over the years, how can the company be a cash cow when the market size as well as the gross profit margin is dropping so much over the years?? it should be a dog rather than a cash cow

I strongly agree with you. The farming company is ‘dog’ since its turnover growth has declined considerably as well as its gross profit and gross profit margin.

The decline is in line with the declining market sector turnover
Such operations should be divest as soonest as possible.

am i wrong?

For Q2 answer, Swiftfarm is Cash cow and Allien; CCB is Star and Value traps; Pait is Star and Heartland.

I explain synergy manager, portfolio manager and parental developer. I said Swiftfarm is example of portfolio manager, Pait is parental developer.

For Q3, publication is important and complex so Recruit expert reporters, the second is high important but simple, so automate by bespoke system, payroll is not important and simple so COTS.

Disadvantage of outsourcing:
– hard to reverse
– unexpected cost
– quality
– legal staff layoff
– success depends on others

Anyone agrees?

Yes fully agree with you on all points

Except that they asked about which parenting style should NCBT (The whole Group) adopt, never mind I wouldn’t worry too much about detailing the style for each SBU, as you have everything the same as me and I am very confident in my answers

Anyone agrees with me? or u can share with me if m wrong, m quite nervous if I will pass the exam. I don’t do quite well on Q1.

I had the same issue in September, only managed to answer 2 questions, didn’t have etime left for the 3rd. I scored 46%, so in December was my retake, I feel I managed the time better now.

England,
For Q2, 1 is have own staff take care of customers, 2 should be bespoke system, 3 should be COTS. I think u should read the clue carefully.

For Q1,
Operation, Strength: patented process, produce durable box,
Marketing and sales, Strength: strong brand, advertising on green product
Human resources, Strength: I could not find.
Infrastructure, strength: located near road and water source.
Procurement, Strength: buy quality raw material for producing boxes.

Mainly of my weakness are related to variance analysis, but unfortunately, I didn’t break them up into RM price and usage variance… I think I don’t get mark for my weakness.

Budgeting:
– take responsibility for each department
– no blame since can talk with each other when do budget.
– improve staff morale.

This is all I have for Q1. Any comments or agree?