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

Actual exam question for CIMA's CIMAPRA19-P03-1 exam
Question #: 61
Topic #: 4
[All CIMAPRA19-P03-1 Questions]

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

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Suggested Answer: B, D, E

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

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Ilene
2 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
2 months ago
C) UIO's shop managers have an incentive to develop attractive sales promotions for their shops
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Marti
2 months ago
A) UIO's shop managers have an incentive to offer excellent customer service
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Veta
2 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
1 months ago
E) UIO's shop managers may have very little sense of loyalty to the company
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Carmelina
1 months ago
C) UIO's shop managers have an incentive to develop attractive sales promotions for their shops
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Georgeanna
2 months ago
A) UIO's shop managers have an incentive to offer excellent customer service
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Kayleigh
3 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
1 months 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 months ago
B) UIO's shop managers are encouraged to take risks that may harm UIO
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Avery
2 months 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
2 months ago
D) UIO's shop managers are encouraged to sell phones at a loss
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Stanford
2 months 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
2 months ago
E) UIO's shop managers may have very little sense of loyalty to the company
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Ellsworth
2 months ago
C) UIO's shop managers have an incentive to develop attractive sales promotions for their shops
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Sharmaine
2 months ago
A) UIO's shop managers have an incentive to offer excellent customer service
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Lettie
3 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
3 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
3 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
2 months ago
Definitely! And attractive sales promotions can also help drive sales and meet monthly targets.
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Isabella
2 months ago
Yes, that makes sense. Happy customers are more likely to come back and buy more.
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Oneida
2 months ago
C) UIO's shop managers have an incentive to develop attractive sales promotions for their shops
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Ryann
2 months ago
A) LHO's shop managers have an incentive to offer excellent customer service
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Margery
3 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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Ty
3 months ago
E) UIO's shop managers may have very little sense of loyalty to the company
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Edmond
3 months ago
C) UIO's shop managers have an incentive to develop attractive sales promotions for their shops
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Charlena
3 months ago
A) UIO's shop managers have an incentive to offer excellent customer service
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Leota
3 months ago
I think statement A is true because offering excellent customer service can lead to more sales.
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