CMA MAY-2023 EXAMINATION

OPERATIONAL LEVEL
SUBJECT: E1. ENTERPRISE OPERATIONS

Time Allocated: Three hours Total Marks: 100

Instructions to Candidates

There are 3 Sections (A, B & C) in this paper. You are required to answer ALL questions.

Answers should be properly structured, relevant and computations need to be shown.

You are strongly advised to carefully read ALL the question requirements before
attempting the question concerned (that is all parts and/or sub-questions).

ALL answers must be written in the answer book. Answers written on the question paper
will not be submitted for marking.

Start answering each question from a fresh sheet. Your answers should be clearly
numbered with the sub-question number then ruled off, so that the markers know which
sub-question you are answering.

Section No of questions in the No of sub-questions Marks allocation

A 01 08 20%

B 01 05 30%

C 02 50%

TURN OVER

Page 1 of 5
SECTION A – 20 MARKS
This section consists of 1 question and 8 sub-questions.
You are advised to spend no longer than 36 minutes on this section. Section will carry 20
marks and one sub-question will carry 2.5 marks each.

QUESTION 1

(a) What are the four different perspectives of the balanced scorecard?
(2½ Marks)
(b) What is Push v Pull marketing?
(2½ Marks)
(c) Define the term "Cyber Security".
(2½ Marks)
(d) What is “Artificial Intelligent (AI)”?
(2½ Marks)
(e) What are the shortcomings of offshoring?
(2½ Marks)
(f) What is the most challenging part of the SWOT analysis?
(2½ Marks)
(g) Define the term “Optimized Production Technique”.
(2½ Marks)
(h) Customer retention is more powerful than customer satisfaction. Explain.
(2½ Marks)

END OF SECTION A

SECTION B Starts on page 3

Page 2 of 5
SECTION B – 30 MARKS
This section consists of 1 question and 5 sub-questions.
You are advised to spend no longer than 9 minutes on each sub-question in this section.
Section will carry 30 marks and one sub-question will carry 6 marks each.

QUESTION 2
(a) Explain the difficulties associated with the management of geographically dispersed
(virtual) teams.
[Marks: 6]
(b) Explain brand extension, multi-branding and family branding as branding strategies.
[Marks: 6]
(c) Why Bangladesh should encourage Foreign Direct Investment (FDI)? Explain.
[Marks: 6]
(d) Justify the importance of sustainability in operations management.
[Marks: 6]
(e) State the role of good corporate governance in economic growth of Bangladesh.
[Marks: 6]

END OF SECTION B

SECTION C Starts on page 4

Page 3 of 5
SECTION C – 50 MARKS
This section consists of 2 questions.
You are advised to spend no longer than 45 minutes on each question in this section.
Section will carry 25 marks and allocation of marks for each sub-question is indicated next to
the sub-question.

QUESTION 3
The company 2TW manufactures and sells products throughout Bangladesh and is
organized into dozens of strategic business units (SBUs). SBU managers, who report to
regional directors, have for many years been paid bonuses on total SBU sales generated.
This has led to a rapid growth in overall turnover but 2TW has experienced declining
profitability over the past few years, and the Chief Executive fears a loss of control over SBU
operations. As a result, six months ago 2TW's Chief Executive used management
consultants to conduct a complete organizational review. The management consultants have
now reported that:
 inadequate quality control systems exist within the company, which has led to
differing operating efficiencies between SBUs;
 there are significant numbers of returned goods which require replacement or
reworking;

current incentives for SBU managers are inappropriate given 2TW's declining
profitability.
In an open letter to all SBU managers, the Chief Executive announced two new initiatives:
 A company-wide introduction of international quality standard ISO 9000 certification
which should deliver significant organizational benefits;

2TW's HR department will redesign the remuneration and reward package for SBU
managers including the existing bonus scheme. Performance related pay for
achievement of individual 'performance targets' will replace existing bonuses.
Suitable performance-based measures of profitability and quality will be designed as
part of this approach and SBU managers will need to agree targets as part of the
normal appraisal processes.
Informal discussions amongst SBU managers confirm that the Chief Executive was right to
take action over declining profitability but some are doubtful that ISO certification will deliver
the benefits the Chief Executive hopes for. Others are eager to see details of the new reward
scheme and whether it has taken account of all relevant factors.
Required:
(i) Describe the potential benefits of quality standard ISO 9000 certification to 2TW.
(ii) Discuss the factors that should be taken into account by the HR department when
redesigning the remuneration and reward package for SBU managers.
(iii)
Discuss what an organization could do to motivate its workforce without offering
financial incentives.
[Marks: (10+10+5) = 25]
QUESTION 4
Zomato, one of the leading Food Service Aggregators (FSAs), was engaged in a conflict with
restaurant partners over its practice of offering high discounts to customers. On August 15,
2019, hundreds of restaurants under the National Restaurant Association (NRA) launched a
logout campaign and delisted themselves from platforms of FSAs such as Zomato,
EazyDiner, Nearbuy, Magicpin, and Dineout, alleging that the aggregators had distorted the
food service sector through aggressive discounting and predatory pricing, which hurt the
core value proposition and bottom line of restaurants.

Page 4 of 5
Zomato, in particular, came under severe criticism as its premium subscription-based dining
out service Zomato Gold (ZG) had 6,500 restaurants partners and a total of 1.1 million
subscribers as of August 2019. As part of the campaign, around 2,500 restaurants logged
out from the ZG service. Zomato’s co-founder and CEO Deepinder Goyal (Goyal) urged
restaurants to stop the logout campaign in the interest of consumers. He admitted that
Zomato had made some mistakes and tweaked the ZG program. However, NRA refused to
accept the modified version of the plan, saying that the corrective measures would not
resolve the key issue of deep discounts. Goyal then said he would stand by the changes
made. He even expanded the ZG service to food delivery. However, time was fast running
out for Goyal as Zomato ran the risk of being overtaken by rivals. He would have to resolve
the issue quickly in the best interests of all the stakeholders.

Required:
(i) What are challenges in operating a platform business, particularly in the food service
sector?
(ii) Analyze the pros and cons of sales promotions such as loyalty programs and
discounting.
(iii) Discuss the reasons for the conflict between Zomato and its restaurant partners.
[Marks: (5 +10+10) = 25]

* End of Question Paper *

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