DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO. Performance Strategy 1 November 2014 P3 – Performance Strategy Performance Pillar P3 – Performance Strategy 19 November 2014 – Wednesday Morning Session Instructions to candidates You are allowed three hours to answer this question paper. You are allowed 20 minutes reading time before the examination begins during which you should read the question paper and, if you wish, highlight and/or make notes on the question paper. However, you will not be allowed, under any circumstances, to open the answer book and start writing or use your calculator during this reading time. You are strongly advised to carefully read ALL the question requirements before attempting the question concerned (that is all parts and/or sub- questions). ALL answers must be written in the answer book. Answers written on the question paper will not be submitted for marking. You should show all workings as marks are available for the method you use. The pre-seen case study material is included in this question paper on pages 2 to 6. The unseen case study material, specific to this examination, is provided on pages 8 to 9. Answer the compulsory question in Section A on page 11. This page is detachable for ease of reference Answer TWO of the three questions in Section B on pages 14 to 19. Maths tables and formulae are provided on pages 21 to 24. The list of verbs as published in the syllabus is given for reference on page 27. Write your candidate number, the paper number and examination subject title in the spaces provided on the front of the answer book. Also write your contact ID and name in the space provided in the right hand margin and seal to close. Tick the appropriate boxes on the front of the answer book to indicate which questions you have answered. TURN OVER
Transcript
DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO.
You are allowed three hours to answer this question paper.
You are allowed 20 minutes reading time before the examination begins during which you should read the question paper and, if you wish, highlight and/or make notes on the question paper. However, you will not be allowed, under any circumstances, to open the answer book and start writing or use your calculator during this reading time.
You are strongly advised to carefully read ALL the question requirements before attempting the question concerned (that is all parts and/or sub-questions).
ALL answers must be written in the answer book. Answers written on the question paper will not be submitted for marking.
You should show all workings as marks are available for the method you use.
The pre-seen case study material is included in this question paper on pages 2 to 6. The unseen case study material, specific to this examination, is provided on pages 8 to 9.
Answer the compulsory question in Section A on page 11. This page is detachable for ease of reference
Answer TWO of the three questions in Section B on pages 14 to 19.
Maths tables and formulae are provided on pages 21 to 24.
The list of verbs as published in the syllabus is given for reference on page 27.
Write your candidate number, the paper number and examination subject title in the spaces provided on the front of the answer book. Also write your contact ID and name in the space provided in the right hand margin and seal to close.
Tick the appropriate boxes on the front of the answer book to indicate which questions you have answered.
TURN OVER
November 2014 2 Performance Strategy
Pre-seen case study Introduction Y was formed in 1900. It manufactures and sells top quality confectionery. For many years, Y has been recognised as a successful company and has become a household name particularly throughout Europe. Its fame is built on the very high quality confectionery products it sells through its own high street stores (some of which it owns and some which it leases). Y has just over 3,500 employees. All of Y’s products are manufactured in its factory in the European country in which it is based (which is in the eurozone). The products are distributed through a multi-channel network comprising of Y’s own stores and ‘online’ business, franchises and retail partners. In addition, Y has now started to supply confectionery to large retail stores and supermarkets on a contract basis. These stores sell Y’s products and also ‘own brand label’ confectionery that Y manufactures for them. Y’s product range includes a wide variety of milk, white, plain and diabetic chocolate products. Previously Y’s main sales had been chocolate products but now the company has expanded into producing other forms of confectionery which do not contain chocolate in any form, for example cakes and other sweets (candies). Y’s customers continue to have strong regard for the quality of its products. Although Y exports its products throughout the world, its largest market is within Europe. Y’s customers vary from individuals to corporate clients which purchase Y’s products to present to their own clients as corporate gifts. Although individual customers buy from Y’s stores, franchises or online, corporate clients purchase goods directly from Y on a contract basis. Business structure Y has a simple business structure. It has a head office (which includes its corporate treasury function) and two divisions: Direct Customer Sales (DCS), and Manufacturing and Commercial (MC). The activities of each division are as follows: DCS DCS has the following sales outlets:
• Y’s own stores • Franchises • Online sales
MC MC undertakes all purchasing of ingredients and manufacturing of Y’s products. It then supplies these products internally to:
• DCS for its sales through its own outlets externally to:
• Corporate clients • External retail stores and supermarkets which sell Y’s products under Y’s own label and
also under the stores’ own labels. Both divisions are investment centres but have limited capital investment authority, for expenditure up to EUR 10,000 per item. Major capital investments, above EUR 10,000 per item, have to be authorised by head office. DCS does not allow any of its outlets to make any capital investment at all without its prior approval. Each of DCS’s sales outlets is regarded as a profit centre, including online sales which is a single profit centre in its own right. Brand development is carried out by both of the divisions. Any brand development costs, such as promotion, above EUR 10,000 must be approved at head office.
Performance Strategy 3 November 2014
The decline of high street sales has led Y to reduce the number of its stores and expand other sales outlets. This has resulted in some staff being re-trained and re-deployed. Y currently has just over 300 of its own stores and fewer than 200 franchises. It also has developed its own website. This has been very popular and has enabled its international business to grow. In addition, as internet shopping has become more popular, Y has been able to develop its online sales business and has introduced ‘click and collect’ services using its stores and franchise businesses as the collection points. Mission, Aim and Objectives Y’s mission statement, agreed by the Board of Directors last year is: “To delight customers by providing luxurious products which strengthen the brand.” Y’s overall aim is to increase shareholder value by improving profit margins through increased sales and reduced costs. Despite the difficult economic conditions in Europe, the chocolate market has continued to grow in the last five years. Y’s customers engage particularly with chocolate products in response to austere economic conditions seeing them as an affordable alternative to higher priced gifts. Y is now placing greater emphasis on trying to ‘de-seasonalise’ its sales by not being reliant on the seasonal peak sales periods. Y is encouraging customers to buy its products throughout the year through all of its sales channels. This demands a strong focus on developing brand awareness. Y intends to achieve the continued development and growth of its business by meeting two strategic objectives which are to:
1. Engage with the widest range of customers through the development of Y’s markets and products through a wide variety of sales channels. The focus of this is on the delivery of products the customer demands, where they are required and when they are wanted.
2. Enhance the customer experience through strong and effective customer relationship management. The focus of this is on clear and consistent branding and marketing to encourage customer retention and loyalty all the year round.
Y’s Board and Divisional Management The Board comprises a non-executive Chairman, a newly appointed Chief Executive, the Managing Directors of the two divisions, the Finance Director and three non-executive directors. The company applies good corporate governance principles and practice and the Board has a committee structure which includes an Audit Committee. The divisional structures reflect their different activities. The Managing Director of each division has a team comprising three divisional directors covering the functions of Finance, Human Resources and Information Technology. In addition, the DCS division has three divisional directors, one each responsible for Y’s stores, franchises and online sales. In addition to the divisional directors for Finance, Human Resources and IT, the MC division has three divisional directors, one responsible for procurement, one for manufacturing and one for commercial clients, retail stores and supermarkets. The structure for Y’s Board and its divisions is presented at Appendix 1. Financial overview Extracts from the statement of profit or loss for the year ended 31 December 2013 and statement of financial position as at 31 December 2013 are shown in Appendix 2. They show that in the last financial year, Y achieved an operating profit margin of 12% and profit after tax of 7.7%. Despite its best efforts in heavily re-investing in the business, Y’s bottom-line profit has stagnated. The Board is concerned that the expected actual profit for the year ended 31 December 2014, when compared with the forecast, is not looking as promising as was first thought. The Board is also mindful that some of Y’s borrowings are due for re-payment in 2015.
November 2014 4 Performance Strategy
In response to these concerns, the Board of Directors has determined the following financial objectives for Y:
• That it should operate on a sound financial basis in order to increase profit and shareholder value
• That it should pay a regular and consistent dividend each year. Environmental and Corporate Social Responsibility Y aims to carry out its business with as little damage to the environment as possible and to operate in a fair manner with regard to all its stakeholders. It is keen to ensure that each of its suppliers adheres to high ethical and environmental standards with regard to sources of materials and treatment of employees. Y imports cocoa from Africa and Indonesia. Y has initiated schemes to encourage sustainable farming of cocoa and farmers are being trained in effective agricultural methods. The introduction of an industry approved certification programme has enabled farmers to achieve higher levels of income from increased production and to access additional training directed at improving their production yields. All raw materials sourced from Africa and Indonesia are priced in US Dollars (USD). All of Y’s products contain only the ingredients listed on the packaging. The packaging also shows nutritional content and gives advice on recommended volumes of consumption. Y tries to ensure that the packaging used for its products is recyclable and kept as minimal as possible to balance concerns over material usage with commercial marketing requirements. Environmentally friendly lighting has been introduced in Y’s factory which has reduced consumption of electricity and emission of carbon dioxide. Y has introduced annual independent health and safety audits in its factory and retail outlets. All factory staff have undertaken food safety and health and safety in the workplace training at the required industry standard level. Workplace benefits, such as life and medical insurance, staff discounts and membership of local gymnasia, as well as competitive salaries and wages are offered to all of Y’s employees. Strategic developments In order to achieve its overall mission, aim and objectives, Y intends to expand its online channel to increase its sales to corporate clients and external retail stores and supermarkets. These sales yield a higher margin than that achieved through sales in Y’s own high street stores. The Board also intends to further rationalise the number of its high street stores.
Performance Strategy 5 November 2014
Appendix 1
STRUCTURE CHART FOR Y
Non-Executive Chair Chief Executive Finance Director Managing Director (DCS) Managing Director (MC) 3 Non-executive directors
Managing Director DCS Managing Director MC Divisional Directors of: Divisional Directors of: Finance Finance Human Resources Human Resources Information Technology Information Technology Y’s Stores Procurement Franchises Manufacturing
Y’s Online Sales Corporate clients, external retail stores and supermarkets
Board of Directors
Direct Customer Sales Division
Manufacturing and Commercial Division
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Appendix 2
Y’s statement of profit or loss and statement of financial position Statement of profit or loss for the year ended 31 December 2013 EUR 000 Revenue 248,589 Cost of sales (Gross profit 120,066
128,523)
Operating costs Operating profit 29,827
( 90,239)
Finance income 120 Finance costs Profit before tax 24,939
( 5,008)
Tax ( 5,736)PROFIT FOR THE YEAR
19,203
Statement of financial position as at 31 December 2013 EUR 000 ASSETS Non-current assets Intangible assets: goodwill 2,407 Property, plant and equipment Total non-current assets
158,822
Current assets 161,229
Inventories 44,856 Trade and other receivables 21,348 Cash and cash equivalents Total current assets
12,368
Total assets 78,572
239,801
EQUITY AND LIABILITIES Equity Share capital (EUR 0.5 shares) 31,122 Share premium 12,120 Retained earnings Total equity
42,101
85,343
Non-current liabilities Borrowings 116,484 Provisions for liabilities Total non-current liabilities
2,294
Current liabilities 118,778
Trade and other payables 33,936 Provisions for liabilities Total current liabilities
1,744
Total liabilities 35,680
Total equity and liabilities 154,458
239,801
End of Pre-seen Material
The unseen material begins on page 8
Performance Strategy 7 November 2014
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November 2014 8 Performance Strategy
SECTION A – 50 MARKS [You are advised to spend no longer than 90 minutes on this question.] ANSWER THIS QUESTION. THE QUESTION REQUIREMENTS ARE ON PAGE 11, WHICH IS DETACHABLE FOR EASE OF REFERENCE Question One Unseen case material Peanut allergy Some of Y’s most popular products contain peanuts. This creates a problem for Y because many people are allergic to peanuts and some can suffer life-threatening reactions if they are exposed to the slightest trace of peanuts. The products that contain peanuts are clearly identified on the packaging but there is a danger that there can be ‘cross contamination’ amongst products. This can occur if Y’s equipment has been used to produce a product that contains peanuts and it is then used for other products or if production staff have handled peanuts and have not changed their gloves or overalls before working on another product. Problems can also occur because some of Y’s bought-in ingredients contain peanut oil. Again, small traces of those ingredients can be very dangerous to allergy sufferers. Y requires suppliers to identify which of the ingredients that they supply contain peanut oil. Y’s board has classified the risks associated with peanuts as high impact and high likelihood. Y’s board requires that the risks are kept under constant review. It would be impossible to eliminate peanuts from the production process altogether because too many products contain peanuts or ingredients that include peanut oil. Cocoa futures The purchase of cocoa is one of Y’s biggest expenses. Cocoa prices can be volatile because of factors such as weather conditions affecting crops in the main cocoa producing countries. There are two main regions where cocoa is grown and a lack of rain in either of them can reduce yields and consequently cause the price of cocoa to rise. Y has always bought cocoa at the spot price because Y’s directors have always believed that the disadvantages of hedging exceed the benefits. Cocoa is grown and harvested on small, family-owned farms. The process is very labour intensive and does not lend itself to mechanisation. The farmers themselves are exposed to many of the risks that affect Y and other manufacturers which buy cocoa. If yields are healthy then farmers will harvest more, but that gain is offset by a much lower market price per tonne. In addition, individual farmers are exposed to local threats, such as disease affecting their crop. Y has recently been approached by a charity that supports farmers in developing countries. The charity proposes that Y should enter into an arrangement whereby it would lease a number of cocoa farms in Africa and Indonesia. Y would pay the owners of the farms it leases a regular fixed monthly amount for their labour during the year. In return, the farmers and their employees would harvest the annual crop of cocoa on behalf of Y. There would be no inefficiencies in terms of transportation. If the farms produce their average yields Y would obtain approximately 30% of cocoa it needs from this arrangement. Obviously the yields from these farms are exposed to the same factors as other farms. The accounting team at Y estimates that the charity’s proposal would not result in any cost savings for Y. The charity has stated that it intends to approach Y’s competitors if Y does not pursue this arrangement.
Performance Strategy 9 November 2014
Cash takings and internal audit New procedures for the handling of cash in Y’s stores were implemented in April 2014. The directors were keen to ensure that the processes were running correctly and in October 2014 asked Y’s internal audit department to conduct a thorough investigation of the cash handling procedures in the company’s stores. The internal audit department sent teams to eight stores. The initial feedback from the audit teams is that store managers view the new procedures as time-consuming and impractical. In three of the stores that were visited the store staff had been instructed by the store managers to revert to the old system. There has been no suggestion of any theft or fraud in any of those stores. The store managers dislike the new system because store staff are required to count cash more frequently during the store opening hours, which means that there are fewer staff available to serve customers during busy periods.
The requirement for Question One is on page 11
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Performance Strategy 11 November 2014
Required:
(a) (i) Recommend, with reasons, FOUR precautions that Y should take to reduce the risk associated with peanut contamination.
(12 marks) (ii) Evaluate the drawbacks and benefits associated with the four precautions
suggested in your answer to (a)(i). (6 marks)
(Total for part (a) = 18 marks)
(b) (i) Discuss the difficulties that would be faced when evaluating the financial
benefits of hedging the cost of cocoa. (11 marks)
(ii) Evaluate the risks to Y associated with the charity’s proposal concerning leasing cocoa farms and paying their owners a fixed sum to grow and harvest the crop.
(13 marks) (Total for part (b) = 24 marks)
(c) Advise Y’s directors of the most appropriate response to the internal audit
department’s findings in relation to the adoption of the new cash handling procedures.
(8 marks)
(Total for Question One = 50 marks)
(Total for Section A = 50 marks)
End of Section A
Section B begins on page 14
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November 2014 14 Performance Strategy
SECTION B – 50 MARKS [You are advised to spend no longer than 45 minutes on each question in this section.] ANSWER TWO OF THE THREE QUESTIONS
Question Two U is a data processing company that provides IT services for a number of clients that sell basic utilities such as gas and electricity. These clients often have very large numbers of customers. Such clients find that a specialist such as U can offer an efficient means of providing basic accounting services such as billing customers and tracking receipts. Outsourcing the processing and management of data to U permits the clients to focus on their core business activities. U’s clients access their data using secure terminals in their own offices. They can access individual customer accounts, gather data for reports and generally use the data in exactly the same way as if they had their own IT departments. U maintains a remote recovery site that is located ten miles from the main IT centre. Electronic links automatically back up the main IT centre’s files up to the recovery site in real time. The recovery site is designed to take over all processing activities in the event of a major disruption at the main IT centre. U signs a detailed service level agreement (SLA) with each of its clients. The purpose of this letter is to clarify and document the commitments that U is making with respect to the maintenance and storage of data. The head of U’s internal audit department has reported the following findings for consideration by U’s board, following recent audit investigations: • An inspection of the software licences held by U indicated that there was a problem with the
licence for the industry-standard package used to maintain client records. U is licensed to use this package at its primary site only. U should not run this package at its remote recovery site without purchasing an additional licence. It would be expensive to buy an additional licence in advance. It would take at least a week to negotiate terms with the software supplier if the need arises.
U’s board has noted this, but the directors have decided that they will not take any action. In the event of needing to activate the remote site they will simply run an unlicensed copy of the software while the purchase of an additional licence is under negotiation.
• U conducts criminal records checks on all staff before they join the company. The internal audit team has studied the paperwork relating to a sample of recent appointments and has discovered that three employees were appointed despite having criminal records. One of those had been convicted of credit card fraud. The human resources department claims that all three appointments were made during a very busy period and that the criminal record checks were overlooked for these three employees because of pressure of other work.
U’s board does not believe that it would be productive to conduct any additional investigation, but greater care will be taken in future. The three staff members will not be dismissed because that would attract unwelcome publicity, but their supervisors will be warned to take care.
Performance Strategy 15 November 2014
Required:
(a) (i) Discuss, from the perspective of both parties, the importance of U insisting that its clients sign a Service Level Agreement.
(10 marks)
(ii) Advise U’s board on why each of the two matters reported by the Head of Internal Audit is likely to put U in breach of commitments made in its SLA.
(8 marks)
(b) Advise U’s board on the ethical principles that are involved in its responses to the matters reported by the Head of Internal Audit.
(7 marks)
(Total for Question Two = 25 marks)
Section B continues on the next page
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November 2014 16 Performance Strategy
Question Three In 2004, Mark started a consultancy business that provides advice to the retail industry. Previously, he had been an experienced store manager with a major retail company. He was highly skilled in the business disciplines needed by retailers and decided to go into business as a consultant. Mark’s consultancy has several clients, including six major retail chains. The consultancy’s areas of expertise comprise: • Merchandising – laying out stores to maximise revenue • Human resources – selecting and training sales staff • Operations – administrative and accounting issues, generally arising from IT and systems Initially Mark worked alone; but now his business employs 36 consultants, half of whom are former retailers and half are graduates. The former retailers were generally store managers before they joined Mark’s consultancy and between them have experience in all of the consultancy’s areas of expertise. The graduates typically have degrees in marketing, HR or IT and have since been trained in the retail issues associated with their specific area of expertise. Mark still actively manages the consultancy. He negotiates contracts with clients, assigns teams of suitable consultants and reviews all draft reports before they are submitted to clients. Mark believes that it is time to delegate the routine management of the consultancy to some of his more experienced employees so that he can develop relationships with clients and win more business. Mark has identified three approaches that might be taken to organising this arrangement: Approach 1 Three departments would be created: merchandising, human resources and operations. Consultants would be assigned to a department in accordance with their expertise and the best qualified consultant in each area would be promoted to Head of Department. Approach 2 Seven departments would be created, one for each major retail chain and one for all other clients. The consultants would be assigned to departments so that each department would have the necessary skills to serve the needs of its client or clients. A suitable consultant in each department would be promoted to Head of Department. Approach 3 The four most experienced consultants would be promoted to the rank of lead consultant. The remaining consultants would remain in a pool of labour to assist as required. Each new consultancy assignment would be given to one of the four lead consultants, who would select the appropriate consultants from the pool. Under Approaches 1 and 2 each department would be a cost centre. Under Approach 3 each lead consultant would be a profit centre. Under all three approaches, all consultants’ time would be charged to projects at a rate of four times their hourly rate of pay.
Performance Strategy 17 November 2014
Required: (a) Evaluate the strengths and weaknesses associated with each of Mark’s three
proposed approaches to the management of his consultancy.
(18 marks)
(b) Advise Mark of the factors that need to be considered before delegating the day to day running of his consultancy business.
(7 marks)
(Total for Question Three = 25 marks)
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November 2014 18 Performance Strategy
Question Four F is a manufacturing company, based in a country whose currency is the F$. All of F’s sales are within its home country. F imports raw material from Country G, where the currency is the G$. F’s treasury department manages the currency risks associated with F’s imports and generally buys G$ forward in anticipation of making payments for identified purchases of materials. F’s Chief Financial Officer (CFO) recently received a telephone call from the company’s bank to confirm that an order for a large forward purchase had been completed. The CFO was surprised by the size of the purchase and asked F’s treasurer to comment. F’s treasurer has become an expert on the exchange rate for the G$. She believes that the forward rate offered by the currency markets was unduly generous and so she bought G$6million forward at a rate of G$/F$ 3.00 which means 1 G$ = 3.00 F$. This was in addition to the purchase of the G$500,000 that F requires to meet its commitments to suppliers. F’s treasury department is expressly forbidden to take open positions in foreign currencies. The head of internal audit interviewed the treasurer, who explained that she had entered into this position because she believed that it was an opportunity for F to make a profit from her expertise. It was clear that she had not intended to defraud F in any way because the transaction had been recorded correctly. The Head of Internal Audit reported the facts to F’s directors, who suspended the treasurer on full pay pending a more detailed investigation, including an evaluation of whether F makes a gain or a loss from this position. F’s CFO is uncertain about whether to cancel this position by selling G$ forward. At present, the exchange rate is G$/F$ 3.10 . The forward rate on offer for the maturity date of the open position is G$/F$ 3.20. There are 56 days to go until the open forward purchase matures. The daily volatility of the G$/F$ exchange rate is 1.2%. F has approached an economics professor at a local university. The professor has prepared two scenarios concerning potential movements on the exchange rate: • One possible scenario is that credit agencies will devalue G’s sovereign debt, which would
weaken the currency significantly, perhaps to as little as G$/F$ 2.50. • An alternative scenario is that G’s government could pre-empt the possibility of a
devaluation by announcing significant economic measures that could strengthen the rate to anything up to G$/F$3.40.
Performance Strategy 19 November 2014
Required: (a) (i) Calculate the 56-day 95% value at risk (VaR), in F$, for the position held
by F.
(4 marks) (ii) Calculate the potential gains and losses implied by each of the economic professor’s scenarios.
(2 marks) (iii) Discuss the relevance of the analysis commissioned from the economics professor relative to the VaR calculated in (i) above.
(5 marks) (Total for part (a) = 11 marks)
(b) (i) Advise F’s board on the relevance of the outcome of the unauthorised
position before deciding on the action to take against the treasurer.
(7 marks) (ii) Advise F’s board on the controls that could be introduced to prevent a
recurrence of such unauthorised foreign exchange deals using the company’s money.
(7 marks) (Total for part (b) = 14 marks)
(Total for Question Four = 25 marks)
(Total for Section B = 50 marks)
End of Question Paper
Maths tables and formulae are on pages 21 to 24
November 2014 20 Performance Strategy
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Performance Strategy 21 November 2014
November 2014 22 Performance Strategy
PRESENT VALUE TABLE
Present value of $1, that is ( ) nr −+1 where r = interest rate; n = number of periods until payment or receipt. Periods
Formulae Annuity Present value of an annuity of £1 per annum receivable or payable for n years, commencing in one year, discounted at r% per annum:
PV =
+−
nrr ]1[111
Perpetuity Present value of £1 per annum, payable or receivable in perpetuity, commencing in one year, discounted at r% per annum:
PV = r1
Growing Perpetuity Present value of £1 per annum, receivable or payable, commencing in one year, growing in perpetuity at a constant rate of g% per annum, discounted at r% per annum:
PV = gr −
1
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Performance Strategy 27 November 2014
LIST OF VERBS USED IN THE QUESTION REQUIREMENTS A list of the learning objectives and verbs that appear in the syllabus and in the question requirements for each question in this paper. It is important that you answer the question according to the definition of the verb.
LEARNING OBJECTIVE VERBS USED DEFINITION
Level 1 - KNOWLEDGE
What you are expected to know. List Make a list of State Express, fully or clearly, the details/facts of Define Give the exact meaning of
Level 2 - COMPREHENSION What you are expected to understand. Describe Communicate the key features
Distinguish Highlight the differences between Explain Make clear or intelligible/State the meaning or
purpose of Identify Recognise, establish or select after
consideration Illustrate Use an example to describe or explain
something
Level 3 - APPLICATION How you are expected to apply your knowledge. Apply
Calculate/compute Put to practical use Ascertain or reckon mathematically
Demonstrate Prove with certainty or to exhibit by practical means
Prepare Make or get ready for use Reconcile Make or prove consistent/compatible Solve Find an answer to Tabulate Arrange in a table
Level 4 - ANALYSIS How are you expected to analyse the detail of what you have learned.
Analyse Categorise
Examine in detail the structure of Place into a defined class or division
Compare and contrast Show the similarities and/or differences between
Construct Build up or compile Discuss Examine in detail by argument Interpret
Prioritise Translate into intelligible or familiar terms Place in order of priority or sequence for action
Produce Create or bring into existence
Level 5 - EVALUATION How are you expected to use your learning to evaluate, make decisions or recommendations.
Advise Evaluate Recommend
Counsel, inform or notify Appraise or assess the value of Advise on a course of action
