CIMA E2 - independent subject foundations cheat sheet

A business model connects customer value, delivery, resources, costs and revenue; its assumptions require evidence.

Porter's generic strategies require a clear basis for competitive advantage.

Expected value weights outcomes by probability but ignores risk attitude.

Suitability, acceptability and feasibility structure strategy evaluation.

Implementation fails when culture, structure and resources are misaligned.

Turnover uses average employees; absenteeism uses possible working days.

Job description = duties; person specification = candidate attributes.

Herzberg separates hygiene factors from motivators; pay alone is hygiene.

Leadership style should be matched to task, workforce skill and time pressure.

Redundancy and dismissal have different legal and motivational implications.

Capacity utilisation = actual output ÷ maximum output × 100.

Break-even = fixed costs ÷ contribution per unit; margin of safety = current sales − break-even.

JIT cuts holding costs but raises supply-chain vulnerability.

TQM is preventive and company-wide; quality control is inspection-based.

Critical path is the longest route through the network and sets project duration.

Decompose actual scope and trace requirements to acceptance evidence.

Critical-path and float calculations require stated network assumptions.

CPI=EV/AC and SPI=EV/PV under the supplied earned-value model.

Choose forecast assumptions and authorization paths explicitly.

Quality = meeting requirements; grade = feature category. Low grade is acceptable, low quality is not.

Managing quality is process-focused; controlling quality inspects deliverables.

Pareto chart prioritises the vital few causes.

Control limits differ from specifications; use the stated chart and run-rule procedure to investigate signals.

External failure can be costly, but compare actual consequences rather than assume one universal ordering.

RACI: exactly one accountable owner per activity.

Tuckman: forming, storming, norming, performing, adjourning.

Herzberg: pay and conditions are hygiene factors; achievement and recognition motivate.

Separate value proposition, operating capability and revenue mechanism.

Evaluate network effects and subscriptions through actual costs, retention and cash.

Use change models as lenses rather than deterministic laws.

Review realized benefits after a project delivers its output.