CIMAPRA19-P03-1 Exam - Topic 4 Question 61 Discussion

Actual exam question for CIMA's CIMAPRA19-P03-1 exam

Question #: 61
Topic #: 4

UIO sells mobile phones through a cham of 100 shops spread across the country Shop managers have considerable discretion over pncmg and the incentives offered to sales staff Shop managers are evaluated on the monthly contribution from completed sales. Those who exceed targets by more than 10% for three successive months are promoted Those who fail to achieve monthly targets in two successive months lose their jobs

Which of the following statements are true of the performance management of UIO's shop managers?

Select ALL that apply

ALHO's shop managers have an incentive to offer excellent customer service

BUIO's shop managers are encouraged to take risks that may harm UIO

CUIO's shop managers have an incentive to develop attractive sates promotions for their shops

DUIO's shop managers are encouraged to sell phones at a loss

EUIO's shop managers may have very little sense of loyalty to the company

Show Suggested Answer

Suggested Answer: B, D, E

by Lera at Nov 18, 2024, 05:18 PM

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Lonny

3 months ago

Attractive promotions are a must for them to stand out!

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Cherry

3 months ago

They should focus on customer service, but I doubt that's a priority.

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Stephaine

3 months ago

Wait, are they really encouraged to sell at a loss? That seems risky.

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Fannie

4 months ago

Definitely agree, they’ll do whatever it takes to boost sales.

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Judy

4 months ago

Shop managers want to hit those targets for promotions!

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Isabella

4 months ago

I'm a bit confused about D. Selling at a loss seems counterproductive, but I guess if it helps meet targets, it could happen?

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Kristine

4 months ago

C sounds right to me; shop managers would want to create promotions to boost sales and meet their targets.

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Pok

4 months ago

I think we practiced a similar question where we talked about risk-taking in management. B seems likely because of the pressure to meet targets.

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Willard

5 months ago

I remember discussing how incentives can sometimes lead to a focus on short-term sales rather than customer service. So, I'm not sure if A is true.

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Kerrie

5 months ago

This seems like a good opportunity to apply my analytical skills. I'll methodically go through each statement and assess whether it aligns with the information provided about how the shop managers are evaluated and incentivized.

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Josue

5 months ago

I'm a bit confused by this question. There are a lot of moving parts with the shop manager performance management system. I'll need to take my time and really think through each statement to determine if it's true or not.

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Dorthy

5 months ago

Okay, let's see here. The key things I need to focus on are the incentives and evaluation criteria for the shop managers. That should help me identify which statements are true.

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Lavera

5 months ago

Hmm, this is a tricky one. There are a lot of details to consider about the performance management system for the shop managers. I'll need to read through it a few times to make sure I understand all the nuances.

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Luis

5 months ago

This question seems straightforward, I think I can handle it. I'll need to carefully analyze the information provided to determine which statements are true.

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Ilene

1 year ago

This is a classic case of 'Be careful what you wish for.' Clearly, UIO has set up a system that incentivizes the wrong behaviors. I mean, seriously, losing your job for missing targets two months in a row? Talk about pressure cooker! I'm just picturing the managers frantically trying to figure out how to game the system, like something out of a bad sitcom.

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Ernestine

1 year ago

C) UIO's shop managers have an incentive to develop attractive sales promotions for their shops

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Marti

1 year ago

A) UIO's shop managers have an incentive to offer excellent customer service

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Veta

1 year ago

Oh man, this is like a choose-your-own-adventure of ethical dilemmas! Personally, I'd be keeping a close eye on the sales tactics in these shops. I can just picture the managers trying to pull off some crazy 'buy one get one free' deal, even if it means taking a hit on the margins. Gotta hit those targets, am I right?

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Lera

1 year ago

E) UIO's shop managers may have very little sense of loyalty to the company

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Carmelina

1 year ago

C) UIO's shop managers have an incentive to develop attractive sales promotions for their shops

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Georgeanna

1 year ago

A) UIO's shop managers have an incentive to offer excellent customer service

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Kayleigh

1 year ago

This is a real minefield, isn't it? I can see the case for E - if my job was on the line for missing targets two months in a row, I might start feeling a little less loyal to the company. And D is just a disaster waiting to happen. I hope UIO has some strong oversight in place to keep these managers honest.

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Tu

1 year ago

It's important for UIO to have strong oversight to prevent any harmful risks from being taken by the managers.

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Reuben

1 year ago

B) UIO's shop managers are encouraged to take risks that may harm UIO

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Avery

1 year ago

That does sound risky. Selling at a loss just to meet targets could hurt the company in the long run.

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Colton

1 year ago

D) UIO's shop managers are encouraged to sell phones at a loss

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Stanford

1 year ago

I agree, it does seem like a tricky situation. If managers are under that much pressure to meet targets, loyalty might take a back seat.

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Coral

1 year ago

E) UIO's shop managers may have very little sense of loyalty to the company

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Ellsworth

1 year ago

C) UIO's shop managers have an incentive to develop attractive sales promotions for their shops

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Sharmaine

1 year ago

A) UIO's shop managers have an incentive to offer excellent customer service

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Lettie

1 year ago

I disagree with statement B. UIO's shop managers are not encouraged to take risks that may harm the company, as they are evaluated based on monthly sales targets.

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Rebbeca

1 year ago

I agree with Leota. Statement C is also true because developing attractive sales promotions can help increase sales.

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Shawna

1 year ago

Hmm, I'd have to go with A and C here. If the managers are evaluated on monthly contribution, they'll clearly want to drive sales. But offering excellent customer service is also a smart way to keep those numbers up, right? Gotta keep the customers coming back!

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Britt

1 year ago

Definitely! And attractive sales promotions can also help drive sales and meet monthly targets.

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Isabella

1 year ago

Yes, that makes sense. Happy customers are more likely to come back and buy more.

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Oneida

1 year ago

C) UIO's shop managers have an incentive to develop attractive sales promotions for their shops

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Ryann

1 year ago

A) LHO's shop managers have an incentive to offer excellent customer service

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Margery

1 year ago

This looks like a classic case of misaligned incentives. Promoting managers who exceed targets by more than 10% for three months straight could lead to some shady tactics, like option B. But I'd say C is the most likely outcome - crafty sales promotions to boost numbers, even if it's not great for the customer.

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