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CSME – May 2021 – L2 – Q1 – Strategic Implementation

Assessing Davidson Ltd's key resources, strategic choices, and restructuring to address international opportunities.

Davidson Ltd is an automobile company based in Aba, Nigeria. It has been in
existence for nearly eighty years. The company originally began by supplying
components for small vehicles and was producing equipment during the Second
World War. However, in the nineties, it underwent rapid transformation under
the founder‟s son, Tony. Tony has diversified the company into supplying tricycle
components and spare parts to the Nigerian market. The company now employs
some 500 staff around the country and is well known for the quality of its
workmanship. The company operates under three divisions. One division is
concerned with the manufacture of tricycle components, a second division with
spare parts and the third division undertakes specific one–off work in automobile
and automobile design. The tricycle component division is by far the biggest and
accounts for seventy per cent of the total turnover. The smaller specialist
automobile design division is by far the most profitable in terms of return on
capital employed and it relies a great deal on a senior engineer, Emmanuel, who
has been with the company for more than twenty years.
Recently, the company was invited to send sample components to a Japanese car
manufacturer who is keen to commence operations in Nigeria. These components
are needed within eight months. However, Mr. Tony is concerned that his
company may not be able to meet the strict standard imposed by the Japanese
manufacturer. The deal, if it is sealed, would establish Davidson Ltd as an
important auto component supplier in South East Asia, thus, opening up the
potential for exports. Tony realises that the export potential is great and that any
initiative towards exports would get full backing from the government. While,
this is happening, the spare parts division is also showing signs of growth.
Recent reforms in part of North Africa has made companies in that region to be
very keen to modernise and innovate their old manufacturing processes and
Davidson had received business enquiries from the region.
Tony faces a dilemma. He knows that the opportunities that have presented
themselves would give the company a global presence. At the same time, he
knows that the company is solely under his management as chief executive.
Tony holds eighty percent of the shares. The other two directors hold ten percent
each. Although the other divisions have managing directors, they rely on him for
decision making. The current managing directors are family members. One is a brother in-law and the other a cousin. Their knowledge of the industry and its
workings is generally poor. He made these appointments to please his father so
that he could be left to run the company as he deems fit. Tony knows that to
satisfy the Japanese auto manufacturer, he needs to reorganise the automobile
design division and consider issues of Total Quality Management (TQM). This will
take time and requires that he delegates responsibilities to other divisions.
However, he feels uncomfortable doing this.
The company is at crossroads. The three divisions are doing well, but could do
even better, if their old, bureaucratic and hierarchical systems are reviewed.
Indeed, some of the younger managers and engineers would prefer a more open,
flexible management structure. Some of them have studied both engineering and
management in Holland and the United States, and are keen to see key
innovations in place. While Tony knows that these opportunities highlighted
above should not be missed, he has to ensure that they are handled successfully
so that the future is secured for Davidson Ltd. This requires that he takes some
tough decisions in restructuring the company within a few months.

Required:

Write a report to the Chief Executive of Davidson Ltd addressing the following issues:

a.
i. The key resources and implementation issues facing Davidson Ltd in the scenario above. (15 Marks)
ii. How the key resources will affect strategic choices. (7 Marks)
iii. How implementation issues will affect strategic choices. (8 Marks)

b. How should Tony restructure the company? (10 Marks)

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MA – Mar 2024 – L2 – Q3b – Performance analysis

This question explains the principles of Total Quality Management (TQM) that improve operational processes in an organization.

Total Quality Management (TQM) is a management framework based on the belief that an organisation can build long-term success by having all its members—from low-level workers to its highest-ranking executives—focus on improving quality and delivering customer satisfaction.

Required:
Explain THREE (3) principles of TQM that improve operational processes in organizations.

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MA – Dec 2023 – L2 – Q2c – Decision making techniques

This question explains why standard costing may not be appropriate in a Just-In-Time (JIT) and Total Quality Management (TQM) environment.

Explain why a standard costing system may not be considered appropriate for the following modern manufacturing environments listed below:
i) Just-In-Time (JIT).
ii) Total Quality Management (TQM).

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MA – July 2023 – L2 – Q2b – Other aspects of performance measurement

This question requires an explanation of three key features of Total Quality Management (TQM).

Total Quality Management (TQM) ensures that all components of an industry work together to improve the quality of its services and products.

Required:
Explain THREE (3) features of Total Quality Management.
(5 marks)

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MA – May 2020 – L2 – Q2a – Other Aspects of Performance Measurement

Discuss four management concepts that can be used by a management accountant to achieve customer satisfaction.

a) Given the dynamic environment within which organisations operate, the Management Accountant’s role has evolved to include providing information that would assist the firm to design strategies geared towards achieving competitive advantage through sustained customer satisfaction. These strategies target key success factors which include cost efficiency, quality, time, and innovation because of the value placed on them by customers.

Required:

i) Discuss FOUR (4) management concepts that the Management Accountant can use to achieve customer satisfaction. (8 marks)

ii) State FOUR (4) questions that a good decision maker might pose in order to make an assessment of the value of information. (2 marks)

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BMIS – Nov 2016 – L1 – Q2a – Operations strategy

Identify reasons for employee resistance to the implementation of Total Quality Management (TQM).

Your company has implemented a Total Quality Management approach (TQM), but this has been resisted by most of the employees. State THREE reasons that might have accounted for such resistance. (6 marks)

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BMIS – March 2024 – L1 – Q4b – Operations strategy

Explain Total Quality Management (TQM) and outline four conditions for its successful implementation in organizations facing employee resistance.

Both manufacturing and service organisations are making increasing use of Total Quality Management (TQM) in their attempt to achieve operational efficiency. However, its implementation has been met with some form of resistance from employees who do not seem to fully appreciate the concept.

Required: i) Explain Total Quality Management (TQM). (2 marks) ii) Outline FOUR (4) conditions which must prevail for the successful implementation of the Total Quality Management (TQM) concept. (8 marks)

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BMIS – May 2021 – L1 – Q2a – Operations strategy

Explain the concepts of Total Quality Management, Fixed Position Layout, Product Layout, and Process Layout in plant operations.

Plant layout has been described as the arrangement of machines in such a manner that will facilitate production efficiency. An organization might adopt a particular method or a combination of methods depending on the nature of its operations.

Required:
Explain the following:
i) Total quality management (2 marks)
ii) Fixed position layout (2 marks)
iii) Product layout (2 marks)
iv) Process layout (2 marks)

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CSME – May 2021 – L2 – Q1 – Strategic Implementation

Assessing Davidson Ltd's key resources, strategic choices, and restructuring to address international opportunities.

Davidson Ltd is an automobile company based in Aba, Nigeria. It has been in
existence for nearly eighty years. The company originally began by supplying
components for small vehicles and was producing equipment during the Second
World War. However, in the nineties, it underwent rapid transformation under
the founder‟s son, Tony. Tony has diversified the company into supplying tricycle
components and spare parts to the Nigerian market. The company now employs
some 500 staff around the country and is well known for the quality of its
workmanship. The company operates under three divisions. One division is
concerned with the manufacture of tricycle components, a second division with
spare parts and the third division undertakes specific one–off work in automobile
and automobile design. The tricycle component division is by far the biggest and
accounts for seventy per cent of the total turnover. The smaller specialist
automobile design division is by far the most profitable in terms of return on
capital employed and it relies a great deal on a senior engineer, Emmanuel, who
has been with the company for more than twenty years.
Recently, the company was invited to send sample components to a Japanese car
manufacturer who is keen to commence operations in Nigeria. These components
are needed within eight months. However, Mr. Tony is concerned that his
company may not be able to meet the strict standard imposed by the Japanese
manufacturer. The deal, if it is sealed, would establish Davidson Ltd as an
important auto component supplier in South East Asia, thus, opening up the
potential for exports. Tony realises that the export potential is great and that any
initiative towards exports would get full backing from the government. While,
this is happening, the spare parts division is also showing signs of growth.
Recent reforms in part of North Africa has made companies in that region to be
very keen to modernise and innovate their old manufacturing processes and
Davidson had received business enquiries from the region.
Tony faces a dilemma. He knows that the opportunities that have presented
themselves would give the company a global presence. At the same time, he
knows that the company is solely under his management as chief executive.
Tony holds eighty percent of the shares. The other two directors hold ten percent
each. Although the other divisions have managing directors, they rely on him for
decision making. The current managing directors are family members. One is a brother in-law and the other a cousin. Their knowledge of the industry and its
workings is generally poor. He made these appointments to please his father so
that he could be left to run the company as he deems fit. Tony knows that to
satisfy the Japanese auto manufacturer, he needs to reorganise the automobile
design division and consider issues of Total Quality Management (TQM). This will
take time and requires that he delegates responsibilities to other divisions.
However, he feels uncomfortable doing this.
The company is at crossroads. The three divisions are doing well, but could do
even better, if their old, bureaucratic and hierarchical systems are reviewed.
Indeed, some of the younger managers and engineers would prefer a more open,
flexible management structure. Some of them have studied both engineering and
management in Holland and the United States, and are keen to see key
innovations in place. While Tony knows that these opportunities highlighted
above should not be missed, he has to ensure that they are handled successfully
so that the future is secured for Davidson Ltd. This requires that he takes some
tough decisions in restructuring the company within a few months.

Required:

Write a report to the Chief Executive of Davidson Ltd addressing the following issues:

a.
i. The key resources and implementation issues facing Davidson Ltd in the scenario above. (15 Marks)
ii. How the key resources will affect strategic choices. (7 Marks)
iii. How implementation issues will affect strategic choices. (8 Marks)

b. How should Tony restructure the company? (10 Marks)

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MA – Mar 2024 – L2 – Q3b – Performance analysis

This question explains the principles of Total Quality Management (TQM) that improve operational processes in an organization.

Total Quality Management (TQM) is a management framework based on the belief that an organisation can build long-term success by having all its members—from low-level workers to its highest-ranking executives—focus on improving quality and delivering customer satisfaction.

Required:
Explain THREE (3) principles of TQM that improve operational processes in organizations.

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MA – Dec 2023 – L2 – Q2c – Decision making techniques

This question explains why standard costing may not be appropriate in a Just-In-Time (JIT) and Total Quality Management (TQM) environment.

Explain why a standard costing system may not be considered appropriate for the following modern manufacturing environments listed below:
i) Just-In-Time (JIT).
ii) Total Quality Management (TQM).

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MA – July 2023 – L2 – Q2b – Other aspects of performance measurement

This question requires an explanation of three key features of Total Quality Management (TQM).

Total Quality Management (TQM) ensures that all components of an industry work together to improve the quality of its services and products.

Required:
Explain THREE (3) features of Total Quality Management.
(5 marks)

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You're reporting an error for "MA – July 2023 – L2 – Q2b – Other aspects of performance measurement"

MA – May 2020 – L2 – Q2a – Other Aspects of Performance Measurement

Discuss four management concepts that can be used by a management accountant to achieve customer satisfaction.

a) Given the dynamic environment within which organisations operate, the Management Accountant’s role has evolved to include providing information that would assist the firm to design strategies geared towards achieving competitive advantage through sustained customer satisfaction. These strategies target key success factors which include cost efficiency, quality, time, and innovation because of the value placed on them by customers.

Required:

i) Discuss FOUR (4) management concepts that the Management Accountant can use to achieve customer satisfaction. (8 marks)

ii) State FOUR (4) questions that a good decision maker might pose in order to make an assessment of the value of information. (2 marks)

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BMIS – Nov 2016 – L1 – Q2a – Operations strategy

Identify reasons for employee resistance to the implementation of Total Quality Management (TQM).

Your company has implemented a Total Quality Management approach (TQM), but this has been resisted by most of the employees. State THREE reasons that might have accounted for such resistance. (6 marks)

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You're reporting an error for "BMIS – Nov 2016 – L1 – Q2a – Operations strategy"

BMIS – March 2024 – L1 – Q4b – Operations strategy

Explain Total Quality Management (TQM) and outline four conditions for its successful implementation in organizations facing employee resistance.

Both manufacturing and service organisations are making increasing use of Total Quality Management (TQM) in their attempt to achieve operational efficiency. However, its implementation has been met with some form of resistance from employees who do not seem to fully appreciate the concept.

Required: i) Explain Total Quality Management (TQM). (2 marks) ii) Outline FOUR (4) conditions which must prevail for the successful implementation of the Total Quality Management (TQM) concept. (8 marks)

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You're reporting an error for "BMIS – March 2024 – L1 – Q4b – Operations strategy"

BMIS – May 2021 – L1 – Q2a – Operations strategy

Explain the concepts of Total Quality Management, Fixed Position Layout, Product Layout, and Process Layout in plant operations.

Plant layout has been described as the arrangement of machines in such a manner that will facilitate production efficiency. An organization might adopt a particular method or a combination of methods depending on the nature of its operations.

Required:
Explain the following:
i) Total quality management (2 marks)
ii) Fixed position layout (2 marks)
iii) Product layout (2 marks)
iv) Process layout (2 marks)

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