CIMAPRO19-P03-1 Exam - 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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Francis

4 months ago

Who thinks they'll actually meet those crazy targets?

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Adelina

4 months ago

They might go after riskier contracts, but that's a gamble!

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Dean

4 months ago

I doubt the sales staff will be happier with these targets.

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Kent

4 months ago

Totally agree, they'll be looking for new jobs for sure.

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Bulah

4 months ago

Sounds like a recipe for high turnover.

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Arlene

5 months ago

I can't see how anyone would feel secure with such high stakes; option A seems really unlikely to me.

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Brandon

5 months ago

This situation reminds me of a practice question where competition among sales staff led to conflicts. So, option C seems plausible too.

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Ramonita

5 months ago

I’m not sure, but I think if the pressure is too high, some might take risks with contracts, like option B suggests.

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Lenna

5 months ago

I remember discussing how unrealistic targets can demotivate staff, so I think option D could be likely.

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Amber

5 months ago

I feel pretty confident about this one. The new policy is clearly going to create a lot of stress and insecurity for the sales staff. They're probably going to start looking for other job opportunities rather than trying to hit those unrealistic targets.

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Stephanie

5 months ago

Okay, I've got a strategy for this. The key is to focus on the policy changes and how they might impact the sales team's behavior. Things like taking on riskier contracts or trying to poach each other's clients seem like the most likely outcomes.

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Alease

5 months ago

Hmm, I think the most likely consequence is that the sales staff will start looking for new jobs. The pressure to hit those high targets or risk getting fired doesn't sound like a great work environment.

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Hermila

5 months ago

This seems like a tricky situation. The new sales director's policy of dismissing staff who don't meet targets for 3 months could really put a lot of pressure on the sales team.

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Dorethea

5 months ago

I'm not sure how to approach this one. The increased sales targets and threat of dismissal could lead to some risky behavior from the sales staff, like encroaching on each other's territories.

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Felix

5 months ago

Okay, let me think this through. The question says the document is related to the Account, but the user needs to access it from the Contract. So I'm thinking option C, a custom detail page link on the Account, might be the way to go. That would let the user easily navigate to the document from the Contract.

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Barrett

6 months ago

I'm leaning towards option C, but it could also be about reducing the use of forecasts. Both seem relevant.

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Carmen

6 months ago

If I recall correctly, we had a similar question in practice where we analyzed different conditions based on credit scores and income. It definitely required a more detailed breakdown.

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Dannie

11 months ago

This is just a train wreck waiting to happen. The new Sales Director sounds like a real hardliner, and the sales staff are probably going to start jumping ship (D) as soon as they can. Although, maybe they could try bribery or blackmail to meet those targets? Just kidding, that's probably not the best approach.

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Bulah

9 months ago

Sales staff will look for new jobs.

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Renato

10 months ago

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

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Christiane

10 months ago

Sales staff will be happier in their jobs.

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Silvana

10 months ago

Sales staff will look for new jobs.

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Blondell

11 months 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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Rashad

10 months ago

Sales staff will look for new jobs.

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Krystal

10 months ago

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

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Daniel

11 months 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

11 months ago

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

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Layla

11 months 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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