Enterprise Operations Operational level

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Enterprise OperationsOperational level

• CIMA Paper E1

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Aim of Paper

• This paper addresses several functional areas of
  business, as well as introducing candidates to
  the economic, social and political context of
  international business.
• This paper will prepare candidates for Paper E2,
  Enterprise Management, and Paper E3, Enterprise
  Strategy.
• This paper is a discursive paper.

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Syllabus

• The Global Business Environment 20
• Information Systems 20
• Operations Management 20
• Marketing 20
• Managing Human Capital 20

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Exam Format

• Section A 20 marks
• Variety of objective test questions each worth 2
  to 4 marks
• Section B 30 marks
• Six compulsory short answer questions, each worth
  5 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 the questions relate.

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1
Session
Introduction to the Global Business Environment
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Overview Session One

• Introduction to the global business environment
• Free trade and protectionism
• Emerging markets and multinational companies
• Outsourcing and offshoring
• Country and political risk
• Cross-cultural management
• International economic developments

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Free trade and protectionism

• Liberalisation is a broad term that usually
  refers to fewer government regulations in the
  economy. As a result, free trade will be
  encouraged.
• Advantages of free trade
• Countries can specialise in goods they produce
  most efficiently
• Surpluses and deficits removed
• Competition improves efficiency
• Economies of scale
• Closer political links

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Free trade and protectionism cont.

• Economic nationalism refers to a set of policies
  that favour the home nation, e.g. the restriction
  of free trade or of foreign investment. As a
  result, international trade will be discouraged.
• Advantages of protectionism (restriction of free
  trade)
• Protection of infant industries
• Prevents dumping
• Prevents establishment of a foreign based
  monopoly
• Reduces the influence of trade on consumer tastes
• Prevents the import of harmful goods
• Self-sufficiency

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Free trade and protectionism cont.
Embargoes
Subsides
Quotas
Barriers to free trade
Administrative regulations
Government action
Tariffs