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

24 hours 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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Malcom

5 days 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

7 days 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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Tracie

16 days 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

20 days ago

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

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Colton

21 days ago

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

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Gail

23 days 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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Germaine

9 days ago

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

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Rosendo

14 days ago

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

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