Question: Should all CEOs be transformational leaders? Would

> During the year to 31 December 2017, Tinderlake Ltd attempted to stimulate sales and increase its profits by reducing selling prices, holding larger inventories and giving customers longer credit. All of the company's purchases and sales are on credit te

> IFRS1 First-time Adoption of International Financial Reporting Standards lays down the procedure which must be followed when an entity prepares its first financial statements that comply with IFRS Standards and IAS Standards. (a) State the objective of I

> IFRS16 Leases replaces IAS17 Leases for accounting periods beginning on or after 1 January 2019. The main aim of the new standard is to improve lessee accounting so that a lessee's financial statements provide a more faithful representation of the lessee

> There are two international standards which deal with goodwill. IAS38 does not allow internally generated goodwill to be recognised as an asset. Goodwill acquired in a business combination is dealt with by IFRS3. (a) Define the term "goodwill" and explai

> The main role of the International Accounting Standards Board (IASB) is to devise and publish International Financial Reporting Standards (IFRS Standards) and revised versions of International Accounting Standards (IAS Standards). IAS Standards were orig

> Assuming that today's date is 1 January 2018, calculate the present value of each of the following: (a) £50,000 to be received on 1 January 2021 (b) £100,000 to be received on 1 January 2023 (c) £10,000 to be received on I January each year from 2019 to

> The International Accounting Standards Board (IASB) develops international standards by means of a "due process". The main stages of this process are listed in the Preface to International Financial Reporting Standards. The Preface also states the object

> The main activity of J&T Ltd is to buy old vehicles, which are sold after converting them into a saleable condition. At 28 February 2018, the end of the company’s financial year, J&T Ltd had the following vehicles that were at v

> Triangle, a public listed company, is in the process of preparing its draft financial statements for the year to 31 March 2018. On 1 April 2017, Triangle sold maturing inventory that had a carrying value of £3m (at cost) to Factorall, a finance house, fo

> (a) Sparkling Pictures plc is a company which specialises in video production. The company is preparing its financial statements for the financial year ended 30 April 2018. During the financial year ended 30 April 2017 Sparkling Pictures plc was responsi

> On 1 December 2014, Gebouw plc entered into a finance lease requiring the company to make payments of £785,000 each on 1 December 2014, 2015, 2016, 2017 and 2018. The fair value of the leased asset on 1 December 2014 was £2,997,000 and it was expected to

> Stenberg plc is preparing its financial statements for the year ended 30 November 2018. On 1 May 2018, the company purchased a factory for the manufacture of optical disks, paying £24,000,000. The factory will be depreciated over its estimated life of 10

> The following information relates to three companies that use the revaluation model in relation to intangible assets and prepare annual financial statements to 31 December: (a) Company W acquired an intangible asset for £250,000 on 31 December 2016. This

> (a) Define the term "investment property". Explain why it is not generally appropriate to charge depreciation in relation to such a property. (b) Give three examples of properties (land or buildings) that should be classified as investment properties. (c

> Chilwell Ltd prepares financial statements to 31 October each year. The company's trial balance at 31 October 2017 is as follows: The following information is also available: 1. Land is non-depreciable and is to be revalued at £280,000 on

> On 1 January 2016, G plc issued £2 million of 7% convertible loan stock. The holders of this stock may choose to convert the stock to ordinary shares on 1 January 2020, 2021 or 2022. The number of ordinary shares into which the stock will be converted is

> The following are the statements of financial position of two companies at 31 October 2018, the end of their most recent financial years: The following additional information is available: 1) On 1 November 2016 Multa plc purchased 90,000,000 ordinary s

> The statement of financial position of Aadvaark Trading Ltd at 30 November 2018 (with comparatives for 2017) is as follows: / / The following information is also available: (i) Freehold property which was valued at £500,000 on 30 November 2017 was reva

> Floothair plc is a large international airline company with three operating segments: – International airline business – Domestic airline business – Non-airline business. The company reports segment i

> If most long-term forecasts are usually incorrect, why bother doing them?

> What can a corporation do to ensure that information about strategic environmental factors gets the attention of strategy makers?

> Why is environmental uncertainty an important concept in strategic management?

> Using Carroll’s list of four responsibilities, should a company be concerned about discretionary responsibilities? Why or why not?

> How does the resource-based view of the firm provide a superior means of evaluating a company’s competitive advantage?

> How appropriate is the theory of laissez-faire in today’s world?

> Is there a conflict between agency theory and the concept of organizational stakeholders?

> Why are strategic decisions different from other kinds of decisions?

> What is a learning organization? Is this approach to strategic management better than the more traditional top-down approach in which strategic planning is primarily done by top management?

> How does strategic management typically evolve in a company?

> Explain how our understanding of the three generic strategic approaches available to companies can be used to direct the efforts of all employees at those companies.

> Why has strategic management become so important in business?

> What are the pros and cons of management’s using the experience curve to determine strategy?

> In what ways can a corporation’s structure and culture be internal strengths or weaknesses?

> How can value-chain analysis help identify a company’s strengths and weaknesses?

> What is the relevance of the resource-based view of the firm to strategic management in a global environment?

> The effects of climate change on companies can be grouped into six categories of risk. Use any two of these to explain the impact upon the resort hotel industry.

> Compare and contrast trend extrapolation with the writing of scenarios as forecasting techniques.

> How can a decision maker identify strategic factors in a corporation’s external international environment?

> Is Pepsi Cola a substitute for Coca Cola?

> How would you determine the level of competitive intensity in an industry?

> Reconcile the strategic decision-making process depicted in Fig. 1.5 with the strategic management model depicted in Fig. 1.2. Figure 1.5: Figure 1.2: FIGURE 1-5 3(a) 3(b) Strategic Decision- Making Process Scan and Assess Extemal Environment: An

> Discuss how a development in a corporation’s natural and societal environments can affect the corporation through its task environment.

> Given that people rarely use a company’s code of ethics to guide their decision making, what good are the codes?

> Are people living in a relationship-based governance system likely to be unethical in business dealings?

> Does a company have to act selflessly to be considered socially responsible? For example, when building a new plant, a corporation voluntarily invested in additional equipment that enabled it to reduce its pollution emissions beyond any current laws. Kno

> What is your opinion of Apple having a code of conduct for its suppliers? What would Milton Friedman say? Contrast his view with that of Archie Carroll’s.

> What is the relationship between corporate governance and social responsibility?

> How does STEEP analysis aid in the development of the strategy in a company?

> What would be the impact if the only insider on a corporation’s board were the CEO?

> Should a CEO be allowed to serve on another company’s board of directors? Why or why not?

> What information is needed for the proper formulation of strategy? Why?

> Who should and should not serve on a board of directors? What about environmentalists or union leaders?

> When does a corporation need a board of directors?

> When is the planning mode of strategic decision making superior to the entrepreneurial and adaptive modes?

> How can you learn what date a case took place?

> When is inflation an important issue in conducting case analysis? Why bother?

> When should you gather information outside a case? What should you look for?

> What are common-size financial statements? What is their value to case analysis? How are they calculated?

> How does a company ensure that its code of ethics is integrated into the daily decision-making process of the company and is not just a symbolic trophy or plaque hanging on the wall?

> Why should one begin a case analysis with a financial analysis? When are other approaches appropriate?

> Is the evaluation and control process appropriate for a corporation that emphasizes creativity? Are control and creativity compatible? Explain. (This is an open question.)

> Does every business firm have business strategies?

> What issues affect your faith in a transfer price as a substitute for a market price in measuring a profit center’s performance?

> How does EVA improve our knowledge of performance over ROI, ROE, or EPS?

> What are some examples of behavior controls? Output controls? Input controls?

> Is Figure 12.1 a realistic model of the evaluation and control process? Figure 12.1: FIGURE 12–1 Evaluation and 三 Control Process 2 3 4 Does perfor- 5 No Determine what to Establish Take corrective action. Measure predetermined standards. mance mat

> Why is an understanding of national cultures important in strategic management?

> How can corporate culture be changed?

> What are some ways to implement a retrenchment strategy without creating a lot of resentment and conflict with labor unions?

> When should someone from outside a company be hired to manage the company or one of its business units?

> How has moral relativism led to criminal activities by some employees in companies?

> What skills should a person have for managing a business unit following a differentiation strategy? Why? What should a company do if no one is available internally and the company has a policy of promotion from within?

> What is meant by a hierarchy of strategy?

> How is the cellular/modular structure different from the network structure?

> Is reengineering just another management fad, or does it offer something of lasting value?

> How can a corporation keep from sliding into the decline stage of the organizational life cycle?

> How should an owner–manager prepare a company for its movement from Stage I to Stage II?

> How should a corporation attempt to achieve synergy among functions and business units?

> How does the issue of transfer pricing impact the results of an MNC?

> How can an expat program be improved to the benefit of the organization?

> What are the stages of international development?

> What is the relationship of policies to strategies?

> What are the issues that suggest the need for oversight of a particular company’s management team?

> Describe the triple bottom line.

> When should a corporation or business unit consider outsourcing a function or an activity?

> How does mass customization support a business unit’s competitive strategy?

> Do you believe that penetration pricing or skim pricing will be better at raising a company’s or a business unit’s operating profit in the long run?

> Are functional strategies interdependent, or can they be formulated independently of other functions?

> How is corporate parenting different from portfolio analysis? How is it alike? Is it a useful concept in a global industry?

> Is stability really a strategy or just a term for no strategy?

> What are the tradeoffs between an internal and an external growth strategy? Which approach is best as an international entry strategy?

> How does horizontal growth differ from vertical growth as a corporate strategy? From concentric diversification?

> Why are many strategic alliances temporary?

> How can a company achieve a sustainable competitive advantage when its industry becomes hypercompetitive?

> What are the pros and cons of using the strategic audit as a framework for case analysis?

> What are the roles and responsibilities of an effective and active board of directors?

> What does a business have to consider when trying to follow a cost leadership strategy and a differentiation strategy simultaneously? Can you name a company doing this?

> What industry forces might cause a propitious niche to appear or disappear?

> How might a firm’s management decide whether it should continue to invest in current known technology or in new, but untested, technology? What factors might encourage or discourage such a shift?

> What are the five crucial steps to follow in basic financial analysis?