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CIMAPRA19-P03-1 Exam - Topic 2 Question 71 Discussion

M plc is an IT company thatbids for large contracts to sell computer systems and also to serviceexisting systems. M plc's senior management hasalwayssetbudgets which are hard to achieve andhavemade no allowances for the recession.The economy has improved andM plc's senior managershave made the budget even more optimistic. The budgetedsalestargethas been increased by 40%.In the past,sales staffhave not tried to achievethe budgetsales because itwas generallybelieved that the targets wereimpossible to reach.M plc has recently appointed a new Sales Directorwhohas decided that sales staff will bedismissedif they fail to meet sales targets for three successive months. He is also looking forhighersalesmargins than wereachievedbefore.What are the likely consequences ofthe new Sales Director'spolicy?
B) Sales staff will tender for riskier contracts. and C) Sales staff will encroach on other sales staff territories to get more work. and D) Sales staff will look for new jobs.
A) Sales staff will be happier in their jobs.
E) Sales staff will feel more settled and secure in their jobs.

CIMAPRA19-P03-1 Exam - Topic 2 Question 71 Discussion

Actual exam question for CIMA's CIMAPRA19-P03-1 exam
Question #: 71
Topic #: 2
[All CIMAPRA19-P03-1 Questions]

M plc is an IT company thatbids for large contracts to sell computer systems and also to serviceexisting systems. M plc's senior management hasalwayssetbudgets which are hard to achieve andhavemade no allowances for the recession.

The economy has improved andM plc's senior managershave made the budget even more optimistic. The budgetedsalestargethas been increased by 40%.

In the past,sales staffhave not tried to achievethe budgetsales because itwas generallybelieved that the targets wereimpossible to reach.

M plc has recently appointed a new Sales Directorwhohas decided that sales staff will bedismissedif they fail to meet sales targets for three successive months. He is also looking forhighersalesmargins than wereachievedbefore.

What are the likely consequences ofthe new Sales Director'spolicy?

Show Suggested Answer Hide Answer
Suggested Answer: B, C, D

by Mattie at Jul 08, 2025, 01:38 PM

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Lindsey
7 months ago
They might go for riskier contracts, but that could backfire.
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Michell
7 months ago
Totally agree, people will start looking for new jobs.
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Linette
8 months ago
No way they'll feel secure with those expectations!
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Theola
8 months ago
I doubt the sales staff will be happier with those targets.
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Veronika
8 months ago
Sounds like a recipe for high turnover.
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Crista
8 months ago
I feel like the sales staff might just feel more stressed and look for new jobs instead of feeling secure. Option D seems to fit.
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Noelia
8 months ago
I remember discussing how unrealistic targets can lead to risky behavior. Maybe option B is a possibility?
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Delsie
9 months ago
This reminds me of a practice question where increased pressure led to staff leaving. I think option D could be likely.
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Merissa
9 months ago
I'm not sure if the sales staff will be happier with the new policy, especially since the targets are already so high.
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Laquita
9 months ago
This is a tough one. The new policy sounds like it could really backfire. I'd expect the sales staff to get demoralized and start looking for other jobs. Definitely not the result the company is hoping for.
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Isidra
9 months ago
Okay, let's see. The new policy is clearly going to put a lot of pressure on the sales staff. I'm guessing they'll start taking more risks and competing with each other to meet those ambitious targets. Probably not a good outcome for the company.
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Jerlene
9 months ago
Hmm, the scenario seems a bit tricky. I'll need to consider how the sales staff might react to the threat of dismissal and the push for higher margins. Gotta think this through.
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Dorthy
9 months ago
This question seems straightforward, but I'll need to carefully analyze the information provided to determine the most likely consequences of the new Sales Director's policy.
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Monte
11 months ago
Ha, E? Yeah, right. Like anyone would feel 'settled and secure' in a job where they could get canned for not hitting unrealistic goals. That's just wishful thinking on the company's part.
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Glory
12 months ago
C, for sure. If I was a sales person there, I'd definitely be trying to poach from my coworkers. Survival of the fittest, am I right? *laughs* But seriously, that's just a recipe for a toxic work environment.
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Christene
12 months ago
I believe sales staff will be more stressed and anxious about their jobs.
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Precious
12 months ago
Some sales staff might start looking for new jobs if they can't meet the targets.
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Micaela
12 months ago
B seems like the most logical choice. With their backs against the wall, the sales staff will probably take on riskier contracts just to keep their jobs. Gotta do what you gotta do, I guess.
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Harris
11 months ago
D) Sales staff will look for new jobs.
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Claudia
11 months ago
B) Sales staff will tender for riskier contracts.
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Lynette
11 months ago
A) Sales staff will be happier in their jobs.
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Hershel
12 months ago
I agree. Sales staff might feel pressured to meet unrealistic targets.
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Maddie
1 year ago
Hmm, D sounds about right. Who wants to work in a place where their job is on the line for not meeting impossible targets? Might as well start updating the old resume.
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Barrett
11 months ago
D) Sales staff will look for new jobs.
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Dawne
11 months ago
A) Sales staff will be happier in their jobs.
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India
1 year ago
I think the new Sales Director's policy is too harsh.
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