CPA/SMA/MOCK EXAM/62

Rosie Adam is the chief executive officer (CEO) of Lush Cosmetics, a company which manufactures and sells its own brand of environmentally friendly toiletries and cosmetics. The company is the market leader in its niche market, and is one of the top ten brands in the total cosmetics market in Eland, where it is based.

Rosie Adam has always been perceived by her staff as a visionary manager. However, she sometimes lets her enthusiasm for certain ideas become an obsession. She often fails to think through all the implications of her ideas and will pursue them to fruition regardless of cost. Her managers are aware of this, but are also aware that it is her vision and drive which has helped the company reach the position it is in today.

Rosie Adam has called a meeting of managers from the information technology, production, accounting, marketing and procurement departments. The company's business analyst has also been asked to attend the meeting. At the meeting she announced, 'I have an idea...', at which her managers thought about their busy schedules and inwardly groaned.

'We'll bring together people from all over Eland, get them to compete in a fun, but challenging, muddy obstacle race and turn it into a huge marketing event. We are going to host a mud run,' she continued. 'We'll give away gift bags containing samples of our latest beneficial 'mud' skincare range and invite finishers of the race to experience an introductory treatment using our 'sore muscle' products.'

She emphasised that this would be a very significant marketing project and she asked Mary, the marketing manager, to be the project manager, with the other attendees at the meeting forming the project team. Amongst her list of requirements for the event were:

- An attention grabbing venue

- Large display screens at the start and finish points and around the venue

- Digital timers for competitors

- Celebrity guests

- After-race entertainment

- Media coverage

'I've come up with a great name for it: we'll call it the 'Mud Lush' project. I'll leave it in Mary's capable hands, but I want regular updates.' At which point, she left the room to attend another important meeting.

After her departure, the departmental managers discussed Rachel's idea. Mary felt, and the others agreed, that despite Rosie's enthusiasm, the event should still be fully justified from a business perspective and that it should be managed correctly in order to ensure its success. The Production Manager, John stated that he was worried about negative repercussions if anyone should get injured and Mary stated that all the risks should be fully documented.

The business analyst agreed, and stated that this, and other project documentation, would be key to the success of

the project and that much of this documentation should be produced during the early stages of the project.

Required:

Rosie Adam had stated that the Mud Lush project 'has all the characteristics of a project'.

a. Explain the features which make this a project and distinguish it from routine work at Lush.

( 05 marks )

b. Discuss, within the context of the Mud Lush project, why each of the following documents is needed to help ensure the eventual success of the project:

(i) Business case; ( 05 marks )

(ii) Risk analysis. ( 05 marks )