Question Tag: Threats

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PM – Nov 2018 – L2 – Q6a – Risk Management

Analyze threats due to patent expiration and recommend strategies to maintain profitability for DDD Ltd.

DDD Limited is a relatively small, specialist manufacturer of chemicals used in the pharmaceutical industry. It does not manufacture pharmaceutical products itself but modifies raw materials sourced from large chemical companies using patented processes before selling them to pharmaceutical companies. Several patents are due to expire in the next three years.

The following are some key points regarding the company:

  • DDD’s customers are large pharmaceutical companies under pressure from governments to reduce drug prices.
  • DDD has experienced high profit margins due to the protection provided by its patents.
  • The expiration of these patents poses a threat to DDD’s business, with customers pressuring for lower prices.

Required:
a. Advise the Board of Directors on the possible threats related to the expiration of patents.
(7 Marks)

b. Appraise suitable courses of action DDD might take to maintain its profits in light of the threats identified in part (a).
(8 Marks)

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SCS – May 2020 – L3 – Q1 – Strategy, Stakeholders and Mission

Perform a SWOT analysis of Customer Focused Ltd, highlighting key strengths, weaknesses, opportunities, and threats.

Customer Focused Ltd has updated its management accounts (Exhibit 1) to produce a
forecast for the year 2020 and these have indicated some significant problems. The business
owners are unsure what to do next.
Required:
You are acting as an advisor to the company and they ask you to:

Prepare a SWOT analysis of Customer Focused Ltd. You should list the strengths, weaknesses, opportunities, and threats in the SWOT analysis of Customer Focused Ltd. You should then select from your list the key strengths, weaknesses, opportunities, and threats and explain why they are important.

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SCS – Nov 2021 – L3 – Q2 – Environment Analysis

Analyze and present factors negatively impacting the strategic position of COM from both external and internal perspectives.

The board members discussed the future of the BRIGHT strategy of the company in the context that the strategic position of the company continues to evolve at a rather unpredictable rate. The board is interested in gaining a thorough insight into the factors that will pose material downside and upside risk to the strategic position of the company. The chairman of the board would like to discuss the draft memorandum of the company’s strategic position with the CEO prior to the next plenary board meeting.

Required:
Prepare a draft presentation explaining to the Board Chairman the current factors that are negatively impacting the strategic position of the company from the general external environment and internal perspectives.

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MI – Nov 2023 – L1 – SB – Q4b – Information Systems

Discuss threats of information systems

List THREE threats to computerised information systems.

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MI – May 2023 – L1 – SB – Q5d – Information Systems

This question asks for an explanation of the differences between threat, vulnerability, and risk in information security.

Explain the differences amongst threatvulnerability, and risk.

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AA – May 2017 – L2 – Q1b – Professional and Ethical Considerations

Identification of major threats to compliance with professional ethics.

The IFAC International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants sets out the five fundamental principles of professional ethics and provides a conceptual framework for applying those principles. Professional Accountants must apply this conceptual framework to identify threats to compliance with the principles, evaluate their significance, and apply appropriate safeguards to eliminate or reduce them so that compliance is not compromised.

Required: Identify FIVE major threats identified in the code of ethics, giving examples of each

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BMIS – July 2023 – Q5b – Competitive forces and markets

Explain five factors that can pose a threat to the successful operations of a business.

A Threat which is an element of SWOT can be described as a factor or situation in a firm’s external environment that can be an obstacle to the efficient operations of the organisation. Required: In reference to the statement above, explain FIVE (5) factors which can pose a threat to the successful operations of a business organisation.

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PM – Nov 2018 – L2 – Q6a – Risk Management

Analyze threats due to patent expiration and recommend strategies to maintain profitability for DDD Ltd.

DDD Limited is a relatively small, specialist manufacturer of chemicals used in the pharmaceutical industry. It does not manufacture pharmaceutical products itself but modifies raw materials sourced from large chemical companies using patented processes before selling them to pharmaceutical companies. Several patents are due to expire in the next three years.

The following are some key points regarding the company:

  • DDD’s customers are large pharmaceutical companies under pressure from governments to reduce drug prices.
  • DDD has experienced high profit margins due to the protection provided by its patents.
  • The expiration of these patents poses a threat to DDD’s business, with customers pressuring for lower prices.

Required:
a. Advise the Board of Directors on the possible threats related to the expiration of patents.
(7 Marks)

b. Appraise suitable courses of action DDD might take to maintain its profits in light of the threats identified in part (a).
(8 Marks)

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SCS – May 2020 – L3 – Q1 – Strategy, Stakeholders and Mission

Perform a SWOT analysis of Customer Focused Ltd, highlighting key strengths, weaknesses, opportunities, and threats.

Customer Focused Ltd has updated its management accounts (Exhibit 1) to produce a
forecast for the year 2020 and these have indicated some significant problems. The business
owners are unsure what to do next.
Required:
You are acting as an advisor to the company and they ask you to:

Prepare a SWOT analysis of Customer Focused Ltd. You should list the strengths, weaknesses, opportunities, and threats in the SWOT analysis of Customer Focused Ltd. You should then select from your list the key strengths, weaknesses, opportunities, and threats and explain why they are important.

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SCS – Nov 2021 – L3 – Q2 – Environment Analysis

Analyze and present factors negatively impacting the strategic position of COM from both external and internal perspectives.

The board members discussed the future of the BRIGHT strategy of the company in the context that the strategic position of the company continues to evolve at a rather unpredictable rate. The board is interested in gaining a thorough insight into the factors that will pose material downside and upside risk to the strategic position of the company. The chairman of the board would like to discuss the draft memorandum of the company’s strategic position with the CEO prior to the next plenary board meeting.

Required:
Prepare a draft presentation explaining to the Board Chairman the current factors that are negatively impacting the strategic position of the company from the general external environment and internal perspectives.

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MI – Nov 2023 – L1 – SB – Q4b – Information Systems

Discuss threats of information systems

List THREE threats to computerised information systems.

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MI – May 2023 – L1 – SB – Q5d – Information Systems

This question asks for an explanation of the differences between threat, vulnerability, and risk in information security.

Explain the differences amongst threatvulnerability, and risk.

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AA – May 2017 – L2 – Q1b – Professional and Ethical Considerations

Identification of major threats to compliance with professional ethics.

The IFAC International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants sets out the five fundamental principles of professional ethics and provides a conceptual framework for applying those principles. Professional Accountants must apply this conceptual framework to identify threats to compliance with the principles, evaluate their significance, and apply appropriate safeguards to eliminate or reduce them so that compliance is not compromised.

Required: Identify FIVE major threats identified in the code of ethics, giving examples of each

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BMIS – July 2023 – Q5b – Competitive forces and markets

Explain five factors that can pose a threat to the successful operations of a business.

A Threat which is an element of SWOT can be described as a factor or situation in a firm’s external environment that can be an obstacle to the efficient operations of the organisation. Required: In reference to the statement above, explain FIVE (5) factors which can pose a threat to the successful operations of a business organisation.

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