3 The Chemical Services Group plc (CSG), which operates a divisionalised structure, provides services to industrial anddomestic customers in Swingland, a country whose economic climate is subject to significant variations. There havebeen a number of recent changes at board level within CSG and therefore the managing director called a meeting ofthe board of directors at which each of four recently appointed directors put forward their view as to what their primaryfocus should be. These were as follows:The research and development director stated that ‘my primary focus is upon ensuring that we continue to developthe products and services that satisfy the requirements of our existing and potential customers’.The finance director stated that ‘my primary focus is upon keeping our investors satisfied’.The human resources director stated that ‘my primary focus is upon ensuring that we take all the steps necessary toestablish and maintain our reputation as a responsible employer’.The corporate affairs director stated that ‘my primary focus is upon the need to ensure that we are recognised as asocially responsible organisation’.Required:(a) Discuss the criteria that should be considered in deciding upon suitable performance measures in respect ofthe primary focus of each of the FOUR directors of CSG providing THREE appropriate quantitative measuresfor each primary focus.Note: your answer may include financial or non-financial quantitative measures. (12 marks)

3 The Chemical Services Group plc (CSG), which operates a divisionalised structure, provides services to industrial and

domestic customers in Swingland, a country whose economic climate is subject to significant variations. There have

been a number of recent changes at board level within CSG and therefore the managing director called a meeting of

the board of directors at which each of four recently appointed directors put forward their view as to what their primary

focus should be. These were as follows:

The research and development director stated that ‘my primary focus is upon ensuring that we continue to develop

the products and services that satisfy the requirements of our existing and potential customers’.

The finance director stated that ‘my primary focus is upon keeping our investors satisfied’.

The human resources director stated that ‘my primary focus is upon ensuring that we take all the steps necessary to

establish and maintain our reputation as a responsible employer’.

The corporate affairs director stated that ‘my primary focus is upon the need to ensure that we are recognised as a

socially responsible organisation’.

Required:

(a) Discuss the criteria that should be considered in deciding upon suitable performance measures in respect of

the primary focus of each of the FOUR directors of CSG providing THREE appropriate quantitative measures

for each primary focus.

Note: your answer may include financial or non-financial quantitative measures. (12 marks)


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