CIMAPRA19-E03-1 Exam - Topic 5 Question 72 Discussion

Actual exam question for CIMA's CIMAPRA19-E03-1 exam

Question #: 72
Topic #: 5

LLL is an international oil and gas exploration company. It is considering investing S300 million in developing new oil fields in Country D. For this it will need to obtain a license from the government of Country D.

These new oil fields will bring much wealth to Country D because a large proportion of the revenue from the production of oil will be paid to the government as part of the licensing agreement.

However, oil production in Country D will have some undesirable social effects, such as the threat of pollution, congestion to the roads and pressure on local amenities such as housing, electricity and clean water.

Which of the following approaches to stakeholder management should LLL NOT undertake in order to enter Country D?

AIssue free shares in a Joint Venture to develop oil fields to government ministers from Country D.

BCommit to improving the local amenities and roads as a part of the application for a license in Country D.

CDevelop and circulate a promotional video showing the benefits enjoyed by other countries in which LLL operates.

DUndertake stakeholder mapping to identify the interests of the most powerful players in the decision to grant a license to LLL.

Show Suggested Answer

Suggested Answer: A, C

by Salena at Aug 09, 2023, 11:50 AM

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Veta

5 months ago

Stakeholder mapping is crucial, but free shares? That's risky!

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Filiberto

5 months ago

A promotional video? Really? That won't change the local impact.

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Sylvie

5 months ago

Agree, they should focus on local improvements instead.

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Brendan

5 months ago

Sounds like a bad idea, pollution will be a huge issue.

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Annita

6 months ago

LLL needs that license to operate in Country D.

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Antonette

6 months ago

Developing a promotional video sounds like a way to sway public opinion, but I’m not sure if it’s effective in this context, so maybe C is the one to avoid.

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Chantell

6 months ago

I think we had a practice question about stakeholder mapping, and it really helps to understand who the key players are, so D might not be the answer.

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Serina

6 months ago

I'm not entirely sure, but I feel like improving local amenities is a good way to gain support, so B seems like a safe option to pursue.

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Jettie

6 months ago

I remember we discussed how offering free shares could be seen as unethical or even bribery, so I think A might be the right answer.

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Tamesha

6 months ago

Hmm, I'm not totally sure about this. I'll need to review the material on ransomware tactics to make sure I understand the right approaches.

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Altha

6 months ago

I'm not so sure about the details, but I remember we had questions about what goes into a project charter. The WBS might come later, though.

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Antione

6 months ago

Hmm, I'm not too familiar with the specifics of ROADM node architecture. I'll have to review my notes to see if I can recall the number of degrees an omnidirectional add/drop unit can access.

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Carissa

7 months ago

Hmm, I'm a bit confused about the different code blocks. I'll need to carefully read through each one and understand the logic before deciding which one to use.

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Sommer

11 months ago

I hear they're also considering offering a year's supply of free donuts to the local residents. That's sure to win over the hearts and minds of the community!

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Lettie

11 months ago

C) Develop and circulate a promotional video showing the benefits enjoyed by other countries in which LLL operates.

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Glenn

11 months ago

B) Commit to improving the local amenities and roads as a part of the application for a license in Country D.

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Quentin

11 months ago

A) Issue free shares in a Joint Venture to develop oil fields to government ministers from Country D.

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Bernadine

12 months ago

Stakeholder mapping is crucial to understand the power dynamics and interests involved. Option D is a must-do, not something to avoid.

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Harris

12 months ago

Promotional videos are great, but they don't actually address the real concerns of the local stakeholders. Option C is not enough on its own.

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Marjory

10 months ago

D) Undertake stakeholder mapping to identify the interests of the most powerful players in the decision to grant a license to LLL.

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Phung

10 months ago

C) Develop and circulate a promotional video showing the benefits enjoyed by other countries in which LLL operates.

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Fatima

10 months ago

B) Commit to improving the local amenities and roads as a part of the application for a license in Country D.

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Staci

10 months ago

A) Issue free shares in a Joint Venture to develop oil fields to government ministers from Country D.

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Timothy

10 months ago

I agree, a promotional video alone won't address the real concerns of the local stakeholders.

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Lavelle

10 months ago

C) Develop and circulate a promotional video showing the benefits enjoyed by other countries in which LLL operates.

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Cheryll

10 months ago

B) Commit to improving the local amenities and roads as a part of the application for a license in Country D.

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Argelia

11 months ago

A) Issue free shares in a Joint Venture to develop oil fields to government ministers from Country D.

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Charlie

12 months ago

Option A is a clear conflict of interest and should not be considered. Bribing government officials is unethical and illegal.

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Aleisha

12 months ago

I think option B is the best approach. Committing to improving local amenities and infrastructure shows that LLL is taking the social impact seriously and trying to mitigate it.

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