Paper P5 Risk & Uncertainty Mark Fielding-Pritchard

Format of Exam  1 compulsory question – broken into several parts, based on strategy of an organisation, mainly discursive. 50 marks  2 from marks each. Based on a more specific area of the syllabus  Structure, structure, structure

Risk & Uncertainty  Require a framework to examine a situation  You may be able to choose  Most important part of the exam

Environmental Analysis  Political  Economic  Social  Technology  Demographic  Legal  Government

PEST Analysis  Political  Economic  Social  Technology

Michael Porter

Impact of Stakeholders Managers Employees Customers Suppliers Government Competitors Shareholder s

Mendelow Stakeholder Mapping

Conflict Resolution PrioritisationNegotiation and ‘satisficing’Sequential attentionSide paymentsExercise of power

Role of Government Legal Consumer rights Environmental protection Restrictive practices Fiscal Taxation Economic Public expenditure Exchange rates Interest rates Political Incentive schemes

Porter Impact of Government Capacity ExpansionDemandDivestment & ExitEmerging IndustriesEntry BarriersCompetition PolicyNew Product Adoption

Dealing With Uncertainty Scenario PlanningComputer SimulationSensitivity AnalysisExpected Values Maximax, maximin, minimax regret

Question 2 P Group  Structure structure structure  Part A  Make a plan- list the external forces  Choose a structure- answer uses Porter but PEST, SWOT are just as good  Part B  Choose 5/6/7 ratios then calculate  1 mark (maybe) for calculation  1 for comment  1 for remedial action

Question 2 P Group  Part C  Identify key factors and list as a plan-stay on track!!  But the question gives you 4 so these are your main drivers!!

Environmental Accounting  resources/professional-exams-study-resources/p5/technical- articles/environmenta-management.html

Environmental Management Accounting  Environmental management accounting (EMA) is an essential business tool for creating internal demand in businesses for cleaner and less wasteful production processes.  EMA changes the reasons why companies engage in pollution prevention activities from one of environmental concern or market access to one of engaging in pollution prevention activities purely because it makes good business sense and delivers immediate financial benefits

Environmental Management Accounting  Environmental prevention costs: the costs of activities undertaken to prevent the production of waste.  Environmental detection costs: costs incurred to ensure that the organisation complies with regulations and voluntary standards.  Environmental internal failure costs: costs incurred from performing activities that have produced contaminants and waste that have not been discharged into the environment.  Environmental external failure costs: costs incurred on activities performed after discharging waste into the environment.

Environmental Management Accounting Costs are applied  Conventional costs  Contingent costs  Relationship costs  Reputational costs

Environmental Management Accounting Techniques  ABC  Input/output analysis  Flow cost accounting  Lifecycle accounting