CIMA Chartered Management Accounting Qualification 2010

Student Support Guide Paper E1 Enterprise Operations

Introduction

This guide outlines matters to be considered by those wishing to sit the examination for Paper E1
Enterprise Operations of the CIMA 2010 qualification. The first part compares the syllabus of Paper
E1 to that of the equivalent Paper P4 in the 2005 qualification and looks at issues relating to
transition from the 2005 to the 2010 qualification.

It should be noted that in the new 2010 syllabus learning outcomes are shown as overarching lead
outcomes, with several component outcomes resulting from that lead. The syllabus comparison
displays the learning outcomes from the previous syllabus with the component learning outcomes
from the new syllabus.

The remainder of this guide looks at issues that are likely to be relevant to all students planning to
sit this examination and ends with a series of ‘frequently asked questions’.

Overview of syllabus changes

Paper E1 has a greater emphasis on the context in which business operates than the previous
equivalent paper P4. It has a new section on the global business environment covering the
economic, social and political aspects of international business, which carries a 20% weighting. To
enable the inclusion of this new section, the topic of ‘change management’ has been moved to the
Strategic level and the weighting of ‘managing human capital’ has been reduced by 10%.

There has also been a reduction in the skill level for many of the learning outcomes with a greater
focus on comprehension and application (levels 2/3)and less on analysis/ evaluation (levels 4/5).
This should create a more gradual foundation for the understanding of business functions,
operations and relationships at both a macro and micro economic basis.

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Syllabus comparison

Old syllabus Paper P4 New syllabus Paper E1 Comments

No equivalent section in paper E1 – A. The Global Business
P4 Environment – 20%
1 (a) explain the emergence of
major economies in Asia and
Latin America;
• This section is new ......
but some elements will
have been touched upon
in the Change
Management (B) section
of P4.

1 (b) explain the emergence and

importance of outsourcing and
offshoring;

1 (c) explain the impact of

international macroeconomic
developments (e.g. long-term
shifts in trade balances), on the
organisation’s competitive
environment.

2 (a) explain the principles and

purpose of corporate social
responsibility and the principles of
good corporate governance in an
international context;

2 (b) analyse relationships among

business, society and government
in national and regional contexts;

2 (c) apply tools of country and

political risk analysis;

2 (d) discuss the nature of

regulation and its impact on the
firm.

P4 A - Information Systems - E1 – B. Information Systems - • The syllabus weighting

20%
(i) explain the features and
operations of commonly used
information technology
hardware and software;
(ii) explain how commonly used
technologies are used in the
work place;
(iii) identify opportunities for the
use of information technology
(IT) in organisations, particularly
in the implementation and
20%
1 (a) identify the value of
information and information
systems organisations;
1 (b) discuss the reasons for
organisations’ increased
dependence on information
systems;
1 (c) discuss the transformation of
organisations through technology
2 (a) discuss ways for overcoming
2
remains at the same at
20%.
• This section of the
syllabus has been
updated, with fewer
learning outcomes .The
new learning outcomes
emphasise the need to
discuss the context in
which IS operates within
a business. Previously
for example, P4 (iii) and
(vi) outcomes were
 Old syllabus Paper P4
running of the information
system (IS);
(iv) evaluate, from a managerial
perspective, new hardware and
software and assess how new
systems could benefit the
organisation;
(v) recommend strategies to
minimise the disruption caused
by introducing IS technologies;
(vi) explain how to supervise
major IS projects and ensure
their smooth implementation;
(vii) evaluate how IS fits into
broader management
operations.
P4 B - Change Management -
10%
(i) explain the process of
organisational development;
(ii) discuss how and why
resistance to change develops
within organisations;
(iii) evaluate various means of
introducing change;
(iv) evaluate change processes
within the organisation.
P4 C - Operations
Management - 20%
(i) evaluate the management
of operations;
(ii) analyse problems
associated with quality in
organisations;
(iii) evaluate contemporary
thinking in quality management;
(iv) explain the linkages
between functional areas as an
important aspect of quality
New syllabus Paper E1
problems in information system
implementation;
2 (b) discuss ways of organising
and managing information system
activities in the context of the
wider organisation.
E1 – C. Operations
Management - 20%
1 (a) explain the shift from price-
based to relational procurement
and operations;
1 (b) explain the relationship of
operations and supply
management to the
competitiveness of the firm;
1 (c) explain the particular issues
surrounding operations
management in services;
3
Comments
related to specific IS
operations.
• This section is now
examined in Paper E3 –
B at the Strategic Level
(Note: see comments
above in E1 – A.)
• The syllabus weighting
remains the same at
20%.
• The skill levels of many
aspects of operations
management have been
reduced to that of level 2
comprehension. There is
no longer the
requirement for any level
4 or 5 analysis and
evaluation.
 Old syllabus Paper P4
management;
(v) apply tools and concepts of
quality management
appropriately in an organisation;
(vi) construct a plan for the
implementation of a quality
programme;
(vii)recommend ways to
negotiate and manage
relationships with suppliers;
(viii) evaluate a supply network.
(ix) explain the concept of
quality and how the quality of
products and services can be
assessed, measured and
improved.
P4 D - Marketing - 20%
(i) explain the marketing
concept;
(ii) evaluate the marketing
processes of an organisation;
(iii) apply tools within each area
of the marketing mix;
(iv) describe the business
contexts within which marketing
principles can be applied
(consumer marketing, business-
to-business marketing, services
marketing, direct marketing,
interactive marketing);
(v) evaluate the role of
technology in modern
marketing;
(vi) produce a strategic
marketing plan for the
organisation.
New syllabus Paper E1 Comments
1 (d) explain the importance of
sustainability in operations • However, the scope of
management. the syllabus coverage
has been widened to
2 (a) apply contemporary thinking specifically include:
in quality management; o Sustainability;
o Process design.
2 (b) explain process design;
2 (c) apply tools and concepts of
lean management;
2 (d) illustrate a plan for the
implementation of a quality
programme;
2 (e) describe ways to manage
relationships with suppliers.
E1 – D. Marketing - 20% • The syllabus weighting
remains at 20%.
1 (a) explain the marketing
concept, and the alternatives to it; • The skill levels of many
aspects of marketing
1 (b) describe the marketing have been reduced to
environment of a range of that of comprehension.
organisations; There is no longer the
requirement for any level
1 (c) explain marketing in a not- 4 or 5 analysis and
for-profit context; evaluation.
1 (d) explain the social context of • However, the scope of
marketing behaviour; the syllabus coverage
has been widened to
1 (e) describe theories of specifically include:
consumer behaviour. o The marketing
environment;
2 (a) explain the relationships o Marketing in not-for-
between market research, market profit organisations;
segmentation, targeting and o The social context of
positioning; marketing;
o Theories of
2 (b) apply tools within each area consumer behaviour;
of the marketing mix; o Brands
o The relationships
2 (c) describe the business between
contexts within which marketing segmentation,
principles can be applied; targeting and
positioning.
2 (d) describe the market
planning process;
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 Old syllabus Paper P4 New syllabus Paper E1 Comments

2 (e) explain the role of branding

and brand equity.

P4 E - Managing Human E - Managing Human Capital - • The syllabus weighting

Capital - 30%
(i) explain the role of the human
resource management function
and its relationship to other
parts of the organisation;
(ii) produce and explain a
human resource plan and
supporting practices;
(iii) evaluate the recruitment,
selection, induction, appraisal,
training and career planning
activities of an organisation;
(iv) evaluate the role of
incentives in staff development
as well as individual and
organisational performance;
(v) identify features of a human
resource plan that vary
depending on organisation type
and employment model;
(vi) explain the importance of
ethical behaviour in business
generally and for the Chartered
Management Accountant in
particular.
20% has been reduced by
10%
1 (a) explain how HR theories and
activities can contribute to the
success of the organisation; • The skill levels of many
aspects of human
1 (b) explain the importance of resource capital have
ethical behaviour in business been reduced to that of
generally and for the line comprehension or
manager and their activities. application. However,
there are still some
2 (a) explain the HR activities outcomes requiring level
associated with developing the 4 analysis.
ability of employees;
2 (b) discuss the HR activities
associated with the motivation of
employees;
2 (c) describe the HR activities
associated with improving the
opportunities for employees to
contribute to the firm;
2 (d) discuss the importance of
the line manager in the
implementation of HR practices;
2 (e) prepare an HR plan
appropriate to a team.

Assessment methodology

There will be a written examination paper of three hours, plus 20 minutes of pre-examination
question paper reading time. The examination paper will have the following sections:

Section A – 20 marks
A variety of compulsory objective test questions, each worth between two and four marks.
Mini scenarios may be given, to which a group of questions relate.

Section B – 30 marks
Six compulsory short answer questions, each worth five marks. A short scenario may be
given, to which some or all questions relate.

Section C – 50 marks
One or two compulsory questions. Short scenarios may be given, to which questions relate.
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The Enterprise Operations examination will primarily test the skills of knowledge, comprehension
and application, covering verbs from levels 1-3 of the CIMA verb hierarchy. You will be expected to
use all of your knowledge and skills gained from your study of the Enterprise Operations syllabus
to explain and apply the various concepts about which you have learned. The scenarios used in
this examination are based on real life, though much simplified, and prepare you for the
Management level examinations.

Preparing for the exam

At the Operational Level, textbook learning is generally sufficient. However, in order to develop the
required skill of application, you need to use your knowledge to solve relatively straightforward,
structured problems. This can best be done by practising examination-standard questions.

FAQs

Question Answer

I have passed the CIMA Certificate No.

examinations of the 2005 CIMA
syllabus, and this is my first attempt at
Paper E1. Have I missed anything
that I need to catch up on?

I have failed old Paper P4. Where In three areas.

should I concentrate my efforts before
doing my resit?
1. You need to concentrate on the new learning
outcomes in Sections A, B, C and D of the Paper E1
syllabus.
2. You need to look through the detail of the syllabus
content (see below) concentrating on those topics
which are new (for example, the whole of Section A,
and material relating to the many new learning
outcomes in other sections).
3. The assessment methodology for the operational
level has changed. There are now fewer objective
test questions, and a greater emphasis on application
of your knowledge. You should look at (and attempt)
the specimen examination paper (see below).

Where can I find the detailed syllabus On the CIMA website under ‘the 2010 syllabus’.
for this paper?

Will there be a specimen examination Yes – it will be available on the CIMA website at the end
paper? of October.

What knowledge is assumed prior to It is assumed that you have passed (or been exempted
studying this syllabus? from) all of the Certificate level papers.

End
Ver1 Aug09