*** ACCA Paper APM December 2019 Exam was.. Instant Poll and comments ***

What topics came in this sitting?
I’m sitting in march and I’m so nervous.

Q1 (i). Performance & Performance Measurements Evaluation based on ROI, RI and the case

Q1(ii) BGC Matrix as a Performance Management tool in general and case specifically

Q1(iii) Management Information System generally but may link to case were applicable

Q2 Calculation and Evaluation of appropriate Performance Measures (The Case)

Q3 Predicting Corporate failure using the Agenti A Score and the problems with such a toll in predicting corporate failure in respect to the case

Performance measurement Evaluation

BCG, ROI and RI, benchmark, BPR, corporate failure

“Evaluate the method of benchmarking?” What did people do? Evaluate choice of company etc or evaluate the numbers? Questions seemed to want the first but appendix had additional information that seemed to support the latter

I thought that was a bit of a trick question there as the question was to advise on the appropriateness and sufficiency of the measures in terms of the industry (not the company).

I debated what to write for a while as it listed the company objectives and CSF’s but then later it went on to say what was valued in the industry at the moment – Ie. customer satisfaction, employee knowledge etc. so I focused on these points. To be fair these items overlapped quite a bit though.

Wasn’t part A to evaluate the benchmarked position and suggest additional measures? Part b I focused on benefits and disadvantages of the benchmarked method chosen and how it wasn’t inline with objectives and CSFs of the organisation..

paper was definitely manageable but think paper should be 4 hours same as SBL.

1a- I calculated and commented on the ROI as well as the RI. In both cases, I calculated it without taking the head office costs, taking the brand building and R&D cost as well as the restructuring cost. Then I also calculated and analysed the both ratios by not taking the head office costs and restructuring costs and considering the R&D and Brand building costs. Gave a short note as to why restructuring costs was not considered as the company’s senior management would give approval for shifting the business place to a prestigious place and divisional managers aren’t quite responsible for that cost. Wrote the disadvantages of ROI too. Some advantages of ROI and RI too.
1b- BCG analysis was pretty straightforward..gave two financial KPI for cash cow, star and problem child.
1C- Idk how far I’m correct but I wrote the qualities of good information, good MIS report, what information/data is required by functional managers of different levels.

2a- Wrote a short note on benchmark, compared monlich or whatever company that was with the competitor sheil. Also, analysed those ratios and wrote what monlich company should focus on to achieve the ratios like sheil. Gave some 3-4 extra ratios that could be calculated in the benchmark process.
2b- Wrote specifically the advantages and disadvantages of Benchmarking against a competitor. Idk if we should write something extra than this or no.
2c- Wrote a short summary of BPR. Wrote about how to change the process of material handling/order processing to Just in time. Wrote about how to keep close relationships with 1-2 suppliers only. All of that.

3a- Described Argentine’s A score model and compared it with the given scenario sletille company or whatever that company name was. Defects, mistakes….all of that!
3b- I didn’t do, because no time.

I am just hoping to pass please! This is my last paper and I studied too much for it.

@yando said:
I assessed the method which Selite** (whatever the name) used against the Benchmarking Process.. My conclusion was that the process was fine except that the KPIs identified did not respond to the CSFs except for one..

I thought that was a bit of a trick question there as the question was to advise on the appropriateness and sufficiency of the measures in terms of the industry (not the company).

I debated what to write for a while as it listed the company objectives and CSF’s but then later it went on to say what was valued in the industry at the moment – Ie. customer satisfaction, employee knowledge etc. so I focused on these points. To be fair these items overlapped quite a bit though.

Could someone clearly list which of the costs in Q1 (i) are treated as non-controllable?
I treated as non-controllable the Head office, R&D and building marketing brand.
What about the restructuring costs of one of the divisions (moving to new office)? Who takes the decision/responsibility for it? Probably I missed something when reading the question.

Its my 11 attempt and last hopefully if I pass or not pass.

You are welcome to comment if any of my point you agree to.

Q1 a, Provided pros and cons of ROI and RI, also calculated and ROI was above the industry average always and third division had quite high ROI, I added back the headoffice cost to profit before tax, and also the R&D and Brand cost as it was invested by devisions but for company long term profit and not divisional profit, for RI I was not sure what to comment as industry average was not given,

Q1 B, I was confused what else to say as the divisions were already identified as star, cash cow and problem child? what KPI’s you guys provided?

Qa C, don’t remember what I wrote to be honest.

Q2 a, calculated measures and mentioned some are good as key for industry and their should be more KPIs for other key areas like advertising.

Q2 b, I mentioned that the right information is available and competitor is in same industry and country, however data may not be reliable as companies not share right data sometime, also the other company was quite big so should compare with company at same level.

Q2 c, few points re BPR and mentioned to used system for automation and avoid errors delay, optician should able to order directly and should have few suppliers.

Q3 a, defined A score and then defect, mistakes and system,the company was at risk.

Q3 b, couldn’t come up with many points, hardly wrote few points, like no use of financial data, it is old method and may not suitable for social media kind of industry and it is just assumption based on company behavior, what else you guys wrote?

Q1 a) was 18 marks I think. Think it went 18, 16, 12 and 4 professional

How did you calculate EVA without WACC?
Because looking at question requirements I thought EVA but there was no mention for Ve and Vd… Or equity debt ratio… And then saw TOI and RI while reading the case scenario…