SBL*** P3 December 2012 Exam *** Instant Poll and comments***

@athey83

I thought Q4 had two calculations for the decision tree as there were different savings for each option depending on demand.

Option A
(0.4 * $3m * 6yrs) +
(0.4 * $0.5 * 6yrs) +
(0.2 * ($3m * 3 yrs)+($0.5m * 3yrs) - $7m invest

Option B
(0.4 * $4m * 6yrs) +
(0.4 * $0.1 * 6yrs) +
(0.2 * ($4m * 3 yrs)+($0.1m * 3yrs) - $8m invest

From my calculations i think option B was best.

Q1 A - BCG probably is the most appropriate model to be used here since Ashridge model is assumed that the Group Company is taking the parental role rather than being a synergy or portfolio manager, EA group’s role is multiple here, therefore BCG is more suitable.
Other companies are quite clear but Neach glass.
My approach to Neach glass - Its net profit margin increased almost 65% since 2008, but it’s operating in a decline market (increased 2%) with small market share 9% which heavily relies on POTS’ performance, thus adds little value to the group as a whole, EA group probably can source an alternative supplier and divest Neach.
Part B –
Time - SIT has 5 years’ time to turn the business since the contract will be reviewed after five years.
Capability – lack of leadership since the director left, also there’s backlog so lack of technical talent, need to hire both externally
Readiness – the managers seem to be ready but it’s more likely to be temporary, nearly hired director will make radical change. The readiness needs to be questioned.


Q2 is a mini sized WET question in 2010, fairly easy.
Part A was almost same as WET
Part B I also used similar approach in terms of improve customer acquisition, retention and extension using website. (not too sure if this is a right approach)

Q4, disaster,
Part A used 10 minutes trying to figure out how to draw decision tree, run out of the time so only list the implication and limitation, didn’t draw a conclusion at all.
Part B and C were rushed too, only two short points were included under each heading.

I hope I will get 50%

@buttonmoon said:
@athey83

I thought Q4 had two calculations for the decision tree as there were different savings for each option depending on demand.

Option A
(0.4 * $3m * 6yrs) +
(0.4 * $0.5 * 6yrs) +
(0.2 * ($3m * 3 yrs)+($0.5m * 3yrs) - $7m invest

Option B
(0.4 * $4m * 6yrs) +
(0.4 * $0.1 * 6yrs) +
(0.2 * ($4m * 3 yrs)+($0.1m * 3yrs) - $8m invest

From my calculations i think option B was best.

I did the same. Purchase from topaz gave higher returns. But I mentioned that they should be aware of the fact that the company is relatively young. And other risks.

Tough exam....It's my first level 3 exam and I didn't manage my time well.Now I know better.....

Ran out of time. I think the cases are too long to read in 15 minutes!!!

Q1
Used BCG Matrix and determined that POTS Cash cow (harvest, extra cash could go to entity that may need capital), NEACH Dog (but dont sell) important because it supplies major component that POTS need. ENCO STAR( build)

Didn't mention anything about Steeltown Technology.

Mentioned other performance measures to evaluate performance eg balanced scorecard.

(b) Actually mixed up this question and thought they acquired the City Council!! Silly.. Had to start over. Discussed the Time, Scope, etc in the context of Steeltown Technology but barely!
Time - they knew about the acquisition for 2 years, but would still need participation and collaboration in the actual changes that would take place.
Capability - Mentioned that senior managers had left.

Q2
(a)Utilized both SWOT and PESTEL and mentioned Stakeholder Power Interest Matrix. Villagers (High Power High Interest) Major influence by having park limits since they provide the steady revenues through rent. Visitors (High Interest Low Power) Keep Informed via web Government (High Power Low Interest), Volunteers (High Power High Interest) Keep motivated since they are responsible for maintaining the gardens the main attraction. Tried with this one! But know I messed up in a few areas.

Question didn't ask for it but mentioned that based on the SWOT, the Estate should repurpose and sell more of the land to private individuals to get lost revenue from Govt funding. And utilize the mansion for events like weddings, corporate functions etc.

(b) Mentioned that web could be used for (1)Informational, Testimonials, Bookings, Gateway for new business.bookings, gateway for reaching international visitors interested in eco/historical tourism, to provide park map to show areas restricted for hiking, cycling and dog walking
Q3 Ran out of time and had only 10mins to mention one advantage and one disadvantage of Franchise. Also mentioned that based on the nature of the competence it probably wouldn't have been a good idea to expand the business via Franchise (after 10 years franchisee might become competitor since they had his formulation) However since the owner didn't want other share holders, and didn't want to be in the day to day administration and preferred to be morei n the "lab" and want to draw down via dividends (franchise fees could replace this) that a franchise could work out to be a good option.

Really shoot in the dark to suggest Vertical and Horizontal alliances. Good idea to go in business with the Emporium and provide training as alternate income generator. Horizontal Alliance, with a similar entity in the "cleaning" business by utilizing same equipment but changing formulation for maybe cleaning mold.
Long shot, but I tried.

Q4 a)

I did the calculations as you said above but i forgot to consider the initial investment, how marks do you think I can pick over there ?

thanks

I used Product Life cycle and BCG for the Q1 Part A. I missed part B of Q1 and did Part C.
Q2 Part A was Pestel and SWOT for me. Part B was about improving the website which was easy.
Q3 was the easiest. I just hope to pass

I think I forgot to tick the numbers of the question I answered in some pages of the answer book not in front of it(cover letter) but in the cover letter I did tick them. If somebody knows please help me as I'm getting very stressed about this.

@ioanna88 said:
I think I forgot to tick the numbers of the question I answered in some pages of the answer book not in front of it(cover letter) but in the cover letter I did tick them. If somebody knows please help me as I'm getting very stressed about this.

H

dont know what happened there - its fine, i did this once and passed the paper!

Hi, I think you should be fine with missing the little boxes, I think i remember asking an examiner previously on this and they said it would be ok and i passed. I dont think its something you would want to get in the habit of though!!

In regards to the exam, I related BCG matrix in question 1 with POTS being a cash cow, Endos as the Star and and Neach Glass being the dog. I calculated that Neach was a dog by calculating their relative market growth which was under 10%. It is over 10% for a company to be deemed high growth.

I also related the copmpanies to the Product life cycle which can be used for companies and they fitted quite well.

At the end of the day I think there was no real right or wrong and if you reasoned your points sufficiently then you should have gained ok marks.

Hope I passed.

I used bcg matrix for q1 and explained well but cash cow I wrote as problem child and made same mistakes in name for other companies. Let's see whether examiner would consider my understanding or mistake :) :)

Consultant saying ok to arrange Usd 500K is feasible through organic growth by cash available, reducing early cash outflow to vendors, timely receivieng from debtors, non distribution of profit including 3rd year. That's it :)

here is the paper

https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/p3/exampapers/p3_2012_dec_q.pdf

I had highlighted my main points using yellow highlight. I heard that the answer papers will be scanned for marking. Quite worry about it will becomes dark and unclear after scanned.

Doesn't specified which model to use in Q1 but merely discuss how it impact to group as question didn't ask to use a model.

@shiaoyen said:
I had highlighted my main points using yellow highlight. I heard that the answer papers will be scanned for marking. Quite worry about it will becomes dark and unclear after scanned.

where did you hear this?

d questions were 2 demanding...in q1. I stated that Bcg is best to apply 2 d scenario...but unknowingly went ahead 2 analyze with ansoff matrix. However...my analysis still were in order...hoping 4 a passcome Feb. Goodluck everyone...merry Xmas.

WOW! Acca considering March and September sessions!

i didnt see this paper top at all, but miracles do work ;), God help me to get my pass mark :D

@ simmox,

kindly corroborate this claim, have you got links or anything to substantiate it?

I have wrote a whole paragraph with regards to adv and dis instead of bulletspoints. I am going to lose marks of this?

i think you'll still get marks for not quoting the BCG in Qs1a?

I can't see how 24 marks will be attributed just to BCG, maybe 12 of 24 would be (so 3 marks for each company) and the other half for evaluating performance, so as long as linked to the case, potentially just lost on professional marks???

@mschembri said:
I have wrote a whole paragraph with regards to adv and dis instead of bulletspoints. I am going to lose marks of this?

We were always told you should only do bullet points if you're running out of time, and should try to do short 4-5 line paragraphs for each point you're making.

For me this was the most time pressured exam ever............ question 1 was very lengthly.

Not to bad of a paper and fair questions..... i just wished i had an extra 15 mins....................... or maybe 15 hours.

Good luck to everyone for february

Merry christmas