MOCK EXAMINATION

Certified Finance and Accounting Professional Stage

28 May 2021
3 hours – 100 marks
Additional reading time – 15 min

BUSINESS MANAGEMENT AND STRATAGY

Instructions to Examinees

(i) Answer all Nine questions.

(ii) Answer in black pen only.
(iii) Stop writing after 3 hours 15 minutes
(iv) Be honest with yourself

Question. 01

Mr. Ahmed is finance and administration (F&A) director of Greenfield waters (Pvt) limited (GWL). The
company is primarily engaged in manufacturing and supplying water filters to the domestic market
alongwith installation and after sales services. The numbers employed by GWL are:

Management and associated administrative and support staff 45

Manufacturing facility 220
Marketing, sales and distribution 75
Installation and after-sales service engineers 65

Trade unions are recognised only in the manufacturing facility – with one for skilled workers, and
another for unskilled workers.

Since few years, GWL has been struggling to break even. Company is considering a model to import
water filters from China and resultantly discontinue its own manufacturing and activities will be
continued with fewer number of employees. There will be a need to restructure marketing retraining
programs for service engineers is being planned to equip them to deal with the new product range.

GWL’s managing director has not told any other employees of the decision of company and is very
anxious that the prospective changes are managed so as to minimize loss of morale and keep existing
staff motivated. As F&A also has responsibility for personnel matters, Ahmed has been asked to provide
advice on three issues:

1. letting people know about the changes

2. the redundancies arising from the closure of the manufacturing plant and
3. the plans for restructuring and retraining

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