Cima E2 Exam Question No 24

Question  No 24:

What is Stakeholders and their needs include?

Internal - Directors - Pay, bonus, overall performance, job security - Employees - Pay, bonus, personal performance, job security
Connected - Shareholders - Share price growth, dividend payments (usually have - Customers - Prices, quality, delivery times, assured supply a contract) - Suppliers - Assured custom, high prices - Financiers - Interest payments, ability to payback loans
External - Government - Tax, law, wealth of nation (Other) - Pressure groups - E.g. environment - Local community - Employment, nice place to live - Wider community - Environment

Cima E2 Exam Question No 23

Question No 23:

What are stakeholders?

Stakeholders of an organization are people who are affected in some way by what the organisation does. Organizational objectives should always be considered in relation to the objectives of different stakeholders. This ensures that a wide range of needs are considered in the objective setting process and balanced objectives are produced.

Cima E2 Exam Question No 22

Question No 22:

What is Qualities of effective objectives?

Specific - about a clear focused topic e.g. profit, sales, customer satisfaction, new product development.
Measurable - able to be measured to ensure people can be held accountable for them, and to give people focus. e.g. Turnover from new products launched.
Achievable - To ensure they are motivational to those people tasked with working towards them and to make rewards attached to them meaningful.
Relevant - to the person/division who has been set the objective, and consistent with the organizations mission. E.g. New product launch objectives might be given to the research and development or marketing departments.
Time bound - to provide a deadline to focus and motivate people towards, and ensure accountability at that date

Cima E2 Exam Question No 21

Question No 21:

What is External analysis?

External analysis is undertaken to enable an understanding of how the external environment has or will change so that the opportunities and threats which may arise by these external changes can be assessed and appropriate action taken.

Cima E2 Exam Question No 20

Question No 20:

Stakeholder Mapping (Mendelow's Matrix)?

Mendelow's matrix helps to identify the relationships that should be built with different stakeholders. A stakeholder's position in the matrix depends on two factors:
Power- The power to influence the organisation, and affectits decision making.
Interest - The interest which the stakeholder has in the organisation. The greater the interest in the organisation the greater the level of communication that will be required with them. Many employees have little power, but good communication of plans is important to retain their loyalty and motivation. Each stakeholder is placed in one box depending on each factor and then treated differently depending on where they are:
Minimal effort - e.g. Temporary employee. Give them basic information to meet their needs, but pay little attention to them in decision making and strategy.
Keep informed - e.g. Full time employee. Regularly communicate with them, particularly things they are interested in. This helps retain good relationships and avoids them seeking to increase power (e.g. through staff grouping together in a union).
Keep satisfied e.g. Government. They have high power so to avoid them exercising the power they should be kept satisfied e.g. by paying them on time or meeting whatever needs they have. As they have little interest only information is given to them as is necessary (e.g. profit information to government to help assess tax payable).
Key players (Keep Close) e.g. Major shareholder - Regular communication is
maintained and their goals and objectives included as part of the strategy setting process and business approach.