CIMA Exam CIMAPRO19-P03-1 Topic 2 Question 71 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam

Question #: 71
Topic #: 2

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?

ASales staff will be happier in their jobs.

BSales staff will tender for riskier contracts.

CSales staff will encroach on other sales staff territories to get more work.

DSales staff will look for new jobs.

ESales staff will feel more settled and secure in their jobs.

Show Suggested Answer

Suggested Answer: B, E, F

by Owen at Jul 02, 2024, 06:36 AM

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Blondell

3 days ago

Ha, I can just imagine the sales staff trying to outdo each other and getting into some serious turf wars. It's gonna be like the Wild West out there! And forget about feeling 'happier' or 'more settled' (A, E) - these poor people are gonna be stressed to the max.

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Daniel

5 days ago

Ugh, the senior management at M plc sound like they're living in la-la land. Impossible sales targets and no allowance for the recession? That's a recipe for disaster. I bet the sales staff will be doing whatever they can to encroach on each other's territories (C) just to hit those numbers.

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Corinne

5 days ago

Definitely, I can see sales staff feeling unsettled and insecure in their jobs.

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Layla

9 days ago

Oh man, this one's tricky. The new Sales Director's policy is definitely going to have some serious consequences. I can see the sales staff feeling super stressed and looking for new jobs (D) if they can't meet those crazy sales targets. Riskier contracts (B) might be tempting, but that's a recipe for disaster.

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Selene

10 days ago

I agree, the pressure to meet unrealistic targets may lead to sales staff looking for new jobs.

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Corinne

11 days ago

I think the new Sales Director's policy is too harsh.

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