CIMA Exam CIMAPRA19-P03-1 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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Ilene

1 months 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

19 days ago

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

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Marti

22 days ago

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

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Veta

1 months 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

3 days ago

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

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Carmelina

9 days ago

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

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Georgeanna

21 days ago

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

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Kayleigh

2 months 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

9 days 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

14 days ago

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

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Avery

17 days 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

18 days ago

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

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Stanford

24 days 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

25 days ago

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

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Ellsworth

28 days ago

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

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Sharmaine

1 months ago

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

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Lettie

2 months 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

2 months ago

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

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Shawna

2 months 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

21 days ago

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

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Isabella

24 days ago

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

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Oneida

1 months ago

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

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Ryann

1 months ago

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

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Margery

2 months 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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