CIMA Exam CIMAPRO19-P03-1 Topic 7 Question 83 Discussion

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

Question #: 83
Topic #: 7

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 Nan at Nov 13, 2024, 07:01 AM

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Allene

2 months ago

A and C are spot on. The shop managers are basically running their own little fiefdoms, so they'll do whatever it takes to keep those targets met. Sounds like a recipe for some shady sales tactics, if you ask me.

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Wilburn

1 months ago

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

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Lisbeth

1 months ago

I agree, it seems like the shop managers have a lot of power in this setup.

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Beckie

2 months ago

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

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Elvis

2 months ago

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

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Malcom

3 months ago

Wow, talk about a high-stakes job! I wouldn't want to be one of those shop managers, constantly looking over their shoulder. Gotta keep those numbers up or it's the unemployment line!

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Dyan

3 months ago

D is definitely false. Selling phones at a loss would be terrible for the company's profitability. I'm not sure about B and E, but they seem plausible given the pressure to hit targets.

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Emiko

2 months ago

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

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Shala

2 months ago

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

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Rolland

2 months ago

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

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Tracie

3 months ago

I disagree with statement B. Taking risks that harm the company would not be encouraged in this performance management system.

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Bernardine

3 months ago

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

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Colton

3 months ago

I think statement A is true because offering excellent customer service can lead to more sales.

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Gail

3 months ago

I think A and C are definitely true. The shop managers have a strong incentive to provide excellent customer service and create attractive sales promotions to boost their monthly contribution and avoid getting fired.

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