Cimapro19 CS3 1 Eng

CIMA
CIMAPRO19-CS3-1-ENG
Strategic Case Study Exam
QUESTION & ANSWERS
https://www.pdfdumps.in/CIMAPRO19-CS3-1-ENG-exam-questions.html
QUESTION 1
Daily Gazette
Celebrities flock to release tax returns
Comedian Madd Wilkins is the latest celebrity to post his tax returns online. The comedian earned
M$1,600,000 from his sell-out tour and from the sale of DVDs. He paid tax of M$608,000 on that
income.
The comedian quipped, "there’s nothing funny about paying tax, but then there’s nothing very funny
about my
act either so it’s only fair that I should pay the full whack".
Public concern about the tax benefits enjoyed by wealthy celebrities using artificial schemes such as
investing
in forestry to minimise their tax bills has led to closing tax loopholes topping the political agenda.
Many
wealthy individuals have volunteered their tax files in order to reassure the public that they are not
benefitting
from such schemes.
Correct Answer: Complete your answer and submit.
QUESTION 2
Four weeks have passed since your encounter with the Chairman. The directors of both companies
were
informed of the proposal to merge two weeks ago and the public was informed two days ago.
You have received the following email from Marcus Svenson, Finance Director:
From: Marcus Svenson, Finance Director
To: Senior Finance Manager
Subject: Merger negotiations
Hi,
Please see the attached table and also a comment that I downloaded from a Wodd shareholder’s blog,
showing
the market capitalisations for Wodd and Darrell both before and after the merger announcement.
If I am reading this correctly, it would appear that we are suffering at the hands of Darrell because the
market
believes that it is getting more of the benefit from the merger. This is before the terms of the merger
have even
been announced.
I need you to do two things:
Please draft a formal response to Market Blogger’s post. We will insert this into his blog as a formal
response
from Wodd’s Board and we will also email it to all shareholders.
Please draft an outline strategy for negotiating with Darrell’s Board. Clearly, I want Wodd’s
shareholders to
get the best possible deal out of this merger.
Marcus
Reference Material:
QUESTION 3
William Seaton, the Director of Finance stopped you in the corridor a week after the Head Geologist’s
announcement that reserves had been overstated:
“We informed the stock exchange that our reserves had been downgraded and our share price has
taken a solid
hit. We need to work towards making sure that this is never repeated.
The Board is actively considering some changes that we hope will improve our forecasting system. I
am not
convinced that the suggestions will work. Frankly, if we could predict the future with certainty then I
would
have us stop looking for oil and start selling forecasts.
I would like you to work through the proposals that have been put forward and to recommend on their
adoption, with changes if you think it necessary. The issues that we are most seriously considering
are:
A suggestion that Big Data could be used to monitor oil prices. Do you think this would be a sensible
way to
proceed?
A suggestion that we should update our reserves information on the company website in real time. Do
you
think that would be an effective communication strategy?
Finally, we have considered a number of issues surrounding the motivation and inspiration of our
geologists.
Two quite distinct schemes have been proposed. Firstly, some Board members believe that our
geologists
should be rewarded in relation to the accuracy of their forecasts. Bonuses will be paid on the basis of
correct
initial evaluation of wells. The bonus will increase if a well that was initially identified as commercially
viable
goes into production and will decrease if a well that was classified as viable is reclassified as
unproductive.
Secondly, other members of the Board believe that there should be a greater degree of accountability
on the
part of geologists. The incorrect classification of a well’s potential could be treated as a disciplinary
matter.
Please provide a detailed analysis of EACH of those suggestions.”
QUESTION 4
You have received the following email from Marcus Svenson, Finance Director:
From: Marcus Svenson, Finance Director
To: Senior Finance Manager
Subject: Investment opportunity
Hi,
The Board is considering an investment opportunity to buy a forest in Bravador, a country in South
America.
This will be a major expansion and will also enable us to diversify into new lines. For example, the
forest
contains lots of hardwood varieties that we could sell to companies in the double glazing industry or
to
furniture manufacturers. I downloaded the attached extract from an online encyclopaedia for your
information.
The forest that we are planning to buy has not been used for commercial purposes until now. The land
belonged to the Government for many years and it has been left to grow naturally. The Government is
now
keen to sell the land and has agreed that it may be used for commercial forestry purposes.
This investment will enable us to increase our output of softwoods by up to 20% per year, in addition
to
enabling us to enter the hardwood market.
I need two things from you. I need you to recommend a suitable approach to managing our
relationship with
the Bravadorian Government. I also need you to identify and explain the political risks that will remain
even if
we succeed in creating a sound relationship with the Government.
Marcus
Reference Material:

Cimapro19 CS3 1 Eng

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Cimapro19 CS3 1 Eng

Uploaded by

Copyright:

Available Formats

CIMA

Correct Answer: Complete your answer and submit.

Correct Answer: Complete your answer and submit.

Correct Answer: Complete your answer and submit.

You might also like