海南省考生想知道ACCA的科目F1怎么备考？

正确答案：

(a) The product life cycle model suggests that a product passes through six stages: introduction, development, growth, shakeout,
maturity and decline. The first Rock Bottom phase appears to coincide with the introduction, development and growth periods
of the products offered by the company. These highly specified, high quality products were new to the country and were
quickly adopted by a certain consumer segment (see below). The life cycle concept also applies to services, and the innovative
way in which Rock Bottom sold and marketed the products distinguished the company from potential competitors. Not only
were these competitors still selling inferior and older products but their retail methods looked outdated compared with Rock Bottom’s bright, specialist shops. Rock Bottom’s entry into the market-place also exploited two important changes in the
external environment. The first was the technological advance of the Japanese consumer electronics industry. The second
was the growing economic power of young people, who wished to spend their increasing disposable income on products that
allowed them to enjoy popular music. Early entrants into an industry gain experience of that industry sooner than others. This
may not only be translated into cost advantages but also into customer loyalty that helps them through subsequent stages of
the product’s life cycle. Rock Bottom enjoyed the advantages of a first mover in this industry.
Hein’s leadership style. appears to have been consistent with contemporary society and more than acceptable to his young
target market. As an entrepreneur, his charismatic leadership was concerned with building a vision for the organisation and
then energising people to achieve it. The latter he achieved through appointing branch managers who reflected, to some
degree, his own style. and approach. His willingness to delegate considerable responsibility to these leaders, and to reward
them well, was also relatively innovative. The shops were also staffed by young people who understood the capabilities of the
products they were selling. It was an early recognition that intangible resources of skills and knowledge were important to the
organisation.
In summary, in the first phase Rock Bottom’s organisation and Hein’s leadership style. appear to have been aligned with
contemporary society, the customer base, employees and Rock Bottom’s position in the product/service life cycle.
The second phase of the Rock Bottom story appears to reflect the shakeout and maturity phases of the product life cycle. The
entry of competitors into the market is a feature of the growth stage. However, it is in the shakeout stage that the market
becomes saturated with competitors. The Rock Bottom product and service approach is easily imitated. Hein initially reacted
to these new challenges by a growing maturity, recognising that outrageous behaviour might deter the banks from lending to
him. However, the need to raise money to fund expansion and a latent need to realise (and enjoy) his investment led to the
company being floated on the country’s stock exchange. This, eventually, created two problems.
The first was the need for the company to provide acceptable returns to shareholders. This would have been a new challenge
for Hein. He would have to not only maintain dividends to external shareholders, but he would also have to monitor and
improve the publicly quoted share price. In an attempt to establish an organisation that could deliver such value, changes
were made in the organisational structure and style. Most of the phase 1 entrepreneur-style. managers left. This may have
been inevitable anyway as Rock Bottom would have had problems continuing with such high individual reward packages in
a maturing market. However, the new public limited organisation also demanded managers who were more transactional
leaders, focusing on designing systems and controlling performance. This style. of management was alien to Rick’s approach.
The second problem was the need for the organisation to become more transparent. The publishing of Hein’s financial details
was embarrassing, particularly as his income fuelled a life-style. that was becoming less acceptable to society. What had once
appeared innovative and amusing now looked like an indulgence. The challenge now was for Hein to change his leadership
style. to suit the new situation. However, he ultimately failed to do this. Like many leaders who have risen to their position
through entrepreneurial ability and a dominant spirit, the concept of serving stakeholders rather than ordering them around
proved too difficult to grasp. The sensible thing would have been to leave Rock Bottom and start afresh. However, like many
entrepreneurs he was emotionally attached to the company and so he persuaded a group of private equity financiers to help
him buy it back. Combining the roles of Chairman and Chief Executive Officer (CEO) is also controversial and likely to attract
criticism concerning corporate governance.

In summary, in the second phase of Hein’s leadership he failed to change his approach to reflect changing social values, a
maturing product/service market-place and the need to serve new and important stakeholders in the organisation. He clearly
saw the public limited company as a ‘shackle’ on his ambition and its obligations an infringement of his personal privacy.
It can be argued that Hein took Rock Bottom back into private ownership just as the product life cycle moved into its decline
stage. The product life cycle is a timely reminder that any product or service has a finite life. Forty years earlier, as a young
man, Hein was in touch with the technological and social changes that created a demand for his product and service.
However, he had now lost touch with the forces shaping the external environment. Products have now moved on. Music is
increasingly delivered through downloaded files that are then played through computers (for home use) or MP3s (for portable
use). Even where consumers use traditional electronic equipment, the reliability of this equipment means that it is seldom
replaced. The delivery method, through specialised shops, which once seemed so innovative is now widely imitated and
increasingly, due to the Internet, less cost-effective. Consumers of these products are knowledgeable buyers and are only
willing to purchase, after careful cost and delivery comparisons, through the Internet. Hence, Hein is in a situation where he
faces more competition to supply products which are used and replaced less frequently, using a sales channel that is
increasingly uncompetitive. Consequently, Hein’s attempt to re-vitalise the shops by using the approach he adopted in phase
1 of the company was always doomed to failure. This failure was also guaranteed by the continued presence of the managers
appointed in phase 2 of the company. These were managers used to tight controls and targets set by centralised management.
To suddenly be let loose was not what they wanted and Hein appears to have reacted to their inability to act entrepreneurially
with anger and abuse. Hein’s final acts of reinvention concerned the return to a hedonistic, conspicuous life style. that he had
enjoyed in the early days of the company. He probably felt that this was possible now that he did not have the reporting
requirements of the public limited company. However, he had failed to recognise significant changes in society. He celebrated
the freeing of ‘Rock Bottom from its shackles’ by throwing a large celebration party. Celebrities were flown in from all over the
world to attend. It seems inevitable that the cost and carbon footprint of such an event would now attract criticism.
Finally, in summary, Hein’s approach and leadership style. in phase 3 became increasingly out of step with society’s
expectations, customers’ requirements and employees’ expectations. However, unlike phase 2, Hein was now free of the
responsibilities and controls of professional management in a public limited company. This led him to conspicuous activities
that further devalued the brand, meaning that its demise was inevitable.

(b) At the end of the first phase Hein still had managers who were entrepreneurial in their outlook. It might have been attractive
for them to become franchisees, particularly as this might be a way of protecting their income through the more challenging
stages of the product and service life cycle that lay ahead. However, by the time Hein came to look at franchising again (phase
3), the managers were unlikely to be of the type that would take up the challenge of running a franchise. These were
managers used to meeting targets within the context of centrally determined policies and budgets within a public limited
company. Hein would have to make these employees redundant (at significant cost) and with no certainty that he could find
franchisees to replace them.
At the end of phase 1, Rock Bottom was a strong brand, associated with youth and innovation. First movers often retain
customer loyalty even when their products and approach have been imitated by new aggressive entrants to the market. A
strong brand is essential for a successful franchise as it is a significant part of what the franchisee is buying. However, by the
time Hein came to look at franchising again in phase 3, the brand was devalued by his behaviour and incongruent with
customer expectations and sales channels. For example, it had no Internet sales channel. If Hein had developed Rock Bottom
as a franchise it would have given him the opportunity to focus on building the brand, rather than financing the expansion
of the business through the issue of shares.
At the end of phase 1, Rock Bottom was still a financially successful company. If it had been franchised at this point, then
Hein could have realised some of his investment (through franchise fees) and used some of this to reward himself, and the
rest of the money could have been used to consolidate the brand. Much of the future financial risk would have been passed
to the franchisees. There would have been no need to take Rock Bottom public and so suffer the scrutiny associated with a
public limited company. However, by the time Hein came to look at franchising again in phase 3, most of the shops were
trading at a loss. He saw franchising as a way of disposing of the company in what he hoped was a sufficiently well-structured
way. In effect, it was to minimise losses. It seems highly unlikely that franchisees would have been attracted by investing in
something that was actually making a loss. Even if they were, it is unlikely that the franchise fees (and hence the money
immediately realised) would be very high.

正确答案：
(ii) Stakeholder claims
Four external stakeholders in the case and their claims are as follows.
The client, i.e. the government of the East Asian country. This stakeholder wants the project completed to budget and
on time. It may also be concerned to minimise negative publicity in respect of the construction of the dam and the
possible negative environmental consequences.
Stop-the-dam, the vocal and well organised pressure group. This stakeholder wants the project stopped completely,
seemingly and slightly paradoxically, for environmental and social footprint reasons.
First Nation, the indigenous people group currently resident on the land behind the dam that would be flooded after its
construction. This stakeholder also wants the project stopped so they can continue to live on and farm the land.
The banks (identified as a single group). These seem happy to lend to the project and will want it to proceed so they
make a return on their loans commensurate with the risk of the loan. They do not want to be publicly identified as being
associated with the Giant Dam Project.
Shareholders. The shareholders have the right to have their investment in the company managed in such a way as to
maximise the value of their shareholding. The shareholders seek projects providing positive NPVs within the normal
constraints of sound risk management.
Tutorial note: only four stakeholders need to be identified. Marks will be given for up to four relevant stakeholders
only.

正确答案：
(b) Growth may be measured in a number of ways which are as follows:
Cash flow
This is a very important measure of growth as it ultimately determines the amount of funds available for re-investment by any
business.
Sales revenue
Growth in sales revenues generated is only of real value to investors if it precipitates growth in profits.
Profitability
There are many measures relating to profit which include sales margin, earnings before interest, taxation, depreciation and
amortisation (EBITDA) and earnings per share. More sophisticated measures such as return on capital employed and residual
income consider the size of the investment relative to the level of profits earned. In general terms, measures of profitability
are only meaningful if they are used as a basis for comparisons over time or in conjunction with other measures of
performance. Growth rate in profitability are useful when compared with other companies and also with other industries.
Return on investment
A growing return upon invested capital suggests that capital is being used more and more productively. Indicators of a growing
return would be measured by reference to dividend payment and capital growth.
Market share
Growth in market share is generally seen as positive as it can generate economies of scale.
Number of products/service offerings
Growth is only regarded as useful if products and services are profitable.
Number of employees
Measures of productivity such as value added per employee and profit per employee are often used by shareholders in
assessing growth. Very often an increased headcount is a measure of success in circumstances where more people are
needed in order to deliver a service to a required standard. However it is incumbent on management to ensure that all
employees are utilised in an effective manner.
It is a widely held belief that growth requires profits and that growth produces profits. Profits are essential in order to prevent
a company which has achieved growth from becoming a target for a take-over or in a worse case scenario goes into
liquidation. Hence it is fundamental that a business is profitable throughout its existence. Growth accompanied by growth in
profits is also likely to aid the long-term survival of an organisation. CSG operates in Swingland which experiences fluctuations
in its economic climate and in this respect the exploitation of profitable growth opportunities will help CSG to survive at the
expense of its competitors who do not exploit such opportunities.
Note: Alternative relevant discussion and examples would be accepted.

正确答案：
4 Becker & Co
(a) Joint business arrangement
The business opportunity in respect of Murray Co could be lucrative if the market research is to be believed.
However, IFAC’s Code of Ethics for Professional Accountants states that a mutual business arrangement is likely to give rise
to self-interest and intimidation threats to independence and objectivity. The audit firm must be and be seen to be independent
of the audit client, which clearly cannot be the case if the audit firm and the client are seen to be working together for a
mutual financial gain.
In the scenario, two options are available. Firstly, Becker & Co could provide the audit client with finance to complete the
development and take the product to market. There is a general prohibition on audit firms providing finance to their audit
clients. This would create a clear financial self-interest threat as the audit firm would be receiving a return on investment from
their client. The Code states that if a firm makes a loan (or guarantees a loan) to a client, the self-interest threat created would
be so significant that no safeguard could reduce the threat to an acceptable level.
The provision of finance using convertible debentures raises a further ethical problem, because if the debentures are ultimately
converted to equity, the audit firm would then hold equity shares in their audit client. This is a severe financial self-interest,
which safeguards are unlikely to be able to reduce to an acceptable level.
The finance should not be advanced to Murray Co while the company remains an audit client of Becker & Co.
The second option is for a joint venture company to be established. This would be perceived as a significant mutual business
interest as Becker & Co and Murray Co would be investing together, sharing control and sharing a return on investment in
the form. of dividends. IFAC’s Code of Ethics states that unless the relationship between the two parties is clearly insignificant,
the financial interest is immaterial, and the audit firm is unable to exercise significant influence, then no safeguards could
reduce the threat to an acceptable level. In this case Becker & Co may not enter into the joint venture arrangement while
Murray Co is still an audit client.
The audit practice may consider that investing in the new electronic product is a commercial strategy that it wishes to pursue,
either through loan finance or using a joint venture arrangement. In this case the firm should resign as auditor with immediate
effect in order to eliminate any ethical problem with the business arrangement. The partners should carefully consider if the
potential return on investment will more than compensate for the lost audit fee from Murray Co.
The partners should also reflect on whether they want to diversify to such an extent – this investment is unlikely to be in an
area where any of the audit partners have much knowledge or expertise. A thorough commercial evaluation and business risk
analysis must be performed on the new product to ensure that it is a sound business decision for the firm to invest.
The audit partners should also consider how much time they would need to spend on this business development, if they
decided to resign as auditors and to go ahead with the investment. Such a new and important project could mean that they
take their focus off the key business i.e. the audit practice. They should consider if it would be better to spend their time trying
to compete effectively with the two new firms of accountants, trying to retain key clients, and to attract new accounting and
audit clients rather than diversify into something completely different.