kasneb newsline...kasneb newsline, issue no. 1, january - march 2015 5environmental analysis (iii)...

KASNEB NEWSLINE, Issue No. 1, January - March 2015 1

KASNEB The Professional Journal of KASNEB Issue No. 1 January - March 2015

KASNEB NEWSLINEEDUCATIVE INFORMATIVE ENTERTAINING

TOPICS FEATURED

ENVIRONMENTAL ANALYSIS IN STRATEGIC

MANAGEMENTCROSS LISTING

DEBTORS TRAITS EXTERNALITIES

CRITICAL SUCCESS FACTORS IN FILE

CONVERSION

EXTRAORDINARY BOSSES

REVISED SYLLABUSES

ENVIRONMENTAL ANALYSIS


KASNEB

Editor HonorarisPius M. Nduatih

Editorial TeamStaff members of KASNEB

Circulation OfficeKASNEB Towers

Hospital Road, Upper HillP.O. Box 41362 - 00100

Nairobi - KenyaTel: 254(020) 4923000

Cellphone: 0722-201214/0734-600624Fax: 254(020) 2712915

E-mail: [email protected]: www.kasneb.or.ke

KASNEB Newsline is the professional students journal of KASNEB.

The views expressed in this journal are those of the respective authors and do not necessarily reflect

those of KASNEB.

The Editor welcomes contributions from readers especially students and trainers in accountancy, finance,

management, administration, ICT and cognate subjects.

The Editor reserves the right to edit articles for the purposes of clarity and brevity.

Trainers and students are free to photocopy materials contained in this journal for purposes of learning without seeking prior consent from

KASNEB.

Reproduction is allowed without charge as long as prior consent is sought and the source

acknowledged.

Correspondence should be addressed to:

The EditorKASNEB Newsline

Marketing and Corporate Affairs UnitP.O. Box 41362 - 00100, Nairobi

E-mail: [email protected]

CONTRIBUTORS TO THIS ISSUE

James MajiwaWasilwa MiriongiGabriel NjugunaPeter Murimi Maina Ernest Madara Jeff Haden

13 Cross listing

3 Environmental analysis in strategic management

25 Externalities

45 Extraordinary bosses

50 KASNEB updates

48 Pictorial

53 Syllabuses Review KASNEB is ISO 9001:2008 certified

CONTENTS KASNEB NewslineIssue No. 1, January - March 2015

19 Debtors traits

35 Critical success factors in file conversion


From the CEO’s desk

Editor HonorarisPius M. Nduatih

Organisations today operate in a dynamic and complex environment which requires

continuous scanning to identify emerging opportunities and potential pitfalls.

Competition in industry has gone a notch higher, as epitomised by the push and shove

witnessed among organisations today as each seeks to elbow out the competitors and

solidify its market share. In order to survive, an organisation must endeavour to understand its

environment, seize any opportunities and sniff out any threats.

One of the hallmarks of a strategic leader is the ability to navigate through the labyrinth of

environmental factors and steer the organisation to prosperity. In order to achieve this, a

leader should understand the various types of business environments, the different models

that can be applied to analyse the environment and the optimal response to each situation.

This knowledge forms a critical component of the competence requirements of a leader today.

The above background sets the stage for the lead article in this edition of the KASNEB Newsline.

The article explores the role of environmental analysis in the context of strategic management.

The writer notes that environmental scanning is critical in not only identifying potential

opportunities and threats, but also in providing information for strategic planning. The writer

goes further to examine various models that can be used to undertake an environmental

analysis. These models include the SWOT, PESTEL, Porter’s five forces and the 5Cs analyses.

The second article sheds light on the process and benefits of cross-listing of companies.

Cross-listing applies where a company’s shares are listed in various stock exchanges located

in different countries. One of the angles explored by the writer in discussing the benefits is

based on corporate governance and the competitive edge that a company considered to

be practising good governance can derive. In discussing this perspective, the writer argues

that, due to the high standards required for listing in any stock exchange, and particularly on

governance issues, a cross-listed company is considered to be better governed and hence its

ability to meet the set standards in more than one stock exchange. This perception is likely to

drive in clients particularly those with a higher benchmark for governance issues.

In addition to featuring other articles on topical issues such as debtors management and

file conversions in ICT, we have included important updates to stakeholders on the major

syllabuses review, including the revised structure of examinations, transition arrangements and changes to policies, rules and regulations. The revised syllabuses will take effect from

1 July 2015 and be examined for the first time from the November 2015 sitting. These

updates form part of the initiatives to ensure a smooth roll over from the current

to the revised syllabuses.

Welcome and enjoy your reading.


Pete

r Mur

imi M

aina

, CS g

radu

ate,

Busin

ess E

xecu

tive,

Roya

l Med

ia Se

rvice

s An environmental analysis

or scan examines the

changes and forces that

affect business either directly or

indirectly through customers,

suppliers, competitors and other

stakeholders. It focuses on internal

and external environments in order

to understand the organisation’s

capabilities, customers and

business environment. It basically

involves identifying and studying

environmental factors that will

impact on the organisation so as

to develop effective responses

which will secure or improve the

organisation’s position in the future.

THE PURPOSE OF ENVIRONMENTAL ANALYSIS

Environmental scanning has many

advantages for the company which

successfully executes a constant

scanning strategy. Some of the

benefits of environmental scanning

include:

1. Providing information for strategic planning

Environmental scanning provides

information, such as the strengths

or weaknesses of competitors

and consumer behaviour and

enables companies to discern

which resources are valuable to

the market and also provides

information which can be used as

the basis of marketing strategies

to leverage these resources and

apply them most appropriately.

This can strengthen a company’s

own competitive position and

weaken that of the competition.

Environmental scanning also

provides information about the

environment which can guide

strategic direction. Porter notes

that a successful strategy should

result in “a favourable position

in an industry” -- a “competitive

advantage”. Sustainable competitive

advantage is achieved by generating

or possessing resources that are

inimitable, valued by the customer

and can be used effectively.

Macro- environment

Micro- environment

Internal- environment

Employees Cash flow

Capital assets Materials Structure

Stakeholders COMPETITORS

Suppliers Intermediaries

Consumers

Political Environmental

Social Technological

in strategic management

Environmental analysis



2. Detecting new opportunities

A key purpose of environmental

scanning is to detect new

opportunities and forecast

demand. This is necessary in

increasing company’s portfolio.

3. Executive stimulation and development

Executive level strategic planning

should be based on data rather

than whim. This is important

as it not only projects a more

professional image but also keeps

the executive decision makers in

tune with the market. Further, it

provides education and stimulation

for decision makers, who are usually

appointed to these positions due to

their capacity to turn thought into

action and ultimately profit.

4. Monitoring market trends and fashions

Strategic success or failure depends

on “ever-quicker reactions to

market trends, requirements and

aspirations”. However, it could be

argued that to “react” suggests

that companies should act after

the event, by which time, it may be

too late. Environmental scanning

increases sensitivity to customers

changing needs and companies

should be proactive in monitoring,

predicting and responding to

market trends. Even if the company

is not able to be first to market with

a new product or service, simply

being aware of what is happening

in the competitive environment

enables them to plan ahead and

build competitive strategies.

5. Monitoring the dynamic business environment

Due to the dynamic nature of the

modern business environment,

the importance of regular and

continual scanning cannot be

overemphasized. This is because

even small changes in the

environment such as legislative,

cultural or technological changes,

if not anticipated and acted upon,

can be the difference between

becoming the market leader and

insolvency.

6. Identifying opportunities and threats

Scanning enables an organisation

gain a competitive advantage

and improve short and long term

planning through SWOT, PESTEL

and other forms of environmental

analysis.

TYPES OF BUSINESS ENVIRONMENT

Basically, there are three distinct

business environments which are:

1. Internal environment

This is environment which is

within the organisation and the

organisation has control over it. Its

components are mission and vision

of the organisation, employees,

managerial and leadership

philosophies, organisational

culture, organisational structure

and policies of the organisation.

2. External environment

This includes the factors outside

a business that influence its

decisions. It is also called macro

environment. Its components are

well captured by the acronym

PESTEL which includes political,

economical, social, technological,

environmental/ecological and legal

environments.

3. Operating environment

This is environment which affects

the operations of an organisation

and basically constitute of

customers, creditors, competitors,

marketing intermediaries like

middle men and other publics of a

firm.

MODELS OF ENVIRONMENTAL ANALYSIS

Several models are used to

understand the surrounding

situation. These models include:

(i) SWOT analysis

(ii) PESTEL analysis Identify your weaknesses and resolve them



(iii) Porters five forces analysis

(iv) 5Cs’ analysis

These are further explained below.

(a) SWOT analysis

SWOT stands for strengths,

weaknesses, opportunities and

threats. To understand SWOT

analysis, the four terms should

clearly be distinguished.

Strengths refer to positive internal

conditions in the environment

like competent staff, superior

technology, strong customer and

capital base. A media house may

for instance count on its strength as

having the largest viewership and

listenership in a given region.

Weaknesses are negative internal

conditions in the environment e.g.

poor technology, low customer

base and poor image.

Opportunities are positive external

conditions in the environment. This

is when PESTEL factors are in favour

of a firm like favourable legislations,

new markets are developing for the

firm and increased demand of a

firm’s products.

Threats are negative external

conditions in the environment like

stiff competition, unfavourable

legislations, poor economic and

political environments among

other factors.

The SWOT Matrix

Strengths Weaknesses

Opportunities S-O strategies W-O strategies

Threats S-T strategies W-T strategies

Quadrant I (S-O strategies) This

is where strengths match with

opportunities. A firm can explore

the available opportunities in the

environment by use of appropriate

strategies supported by its

strengths.

Quadrant II (W-O strategies)

A firm has an advantage of

opportunities but a disadvantage

of weaknesses. An example is a

country rich in oil but does not

have the technology to exploit it.

In such a scenario, the country can

use its opportunities to overcome

its weaknesses. It can for instance

look for a firm with appropriate

technology to exploit the oil and

then share profits therefrom on a

predetermined ratio.

Quadrant III (S-T strategies)

In this scenario, threats like

competition affect strengths of

a firm. A company which may

be enjoying monopoly may for

instance have entrants of new

competitors which may affect

its sales turnover. The firm in

this case must identify ways to

use its strengths to reduce its

vulnerability to external threats

like coming up with strategies to

manage competition. An example

is a company enjoying economies

of scale and strong capital base.

It will use funds at its disposal to

aggressively advertise and surpass

competition.

Opportunities

• What trends can you take advantage of now?• How can you leverage your strengths?• Are there any opportunities immediately

open to you?

Weaknesses

• What are your weak areas?• In what areas do you have fewer resources?• Do others avoid asking you for help on

certain things?

Threats

• What is your competition doing?• Do any of your weaknesses pose an

immediate threat?• Is there anything that you must address

right now?

SWOTANALYSIS

Strengths

• What do you do well?• What do other people ask you for help on?• What is unique about you?

Build; enhance Resolve; reduce

Strategic analysis

InternalExternal

Strengths Exploit; expand

Resolve; reduce

Build; enhance

Avoid; thwart

Weaknesses Opportunities Threats



Quadrant IV (W-T strategies)

The firm at this point must formulate

a strategy that will enable it prevent

the firm’s weaknesses from making

it highly susceptible to external

threats.

(b) PESTEL analysis

PESTEL includes political,

economical, social, technological,

environmental/ecological and legal

environments. Each component is

examined in PESTEL analysis.

Political environment: Examines

political stability, trade restrictions,

tariffs and sanctions. Investor

confidence is highly dependent

on perceived political stability of

a country. Post election conflicts

for instance keep investors away

affecting a country’s economy.

Trade sanctions would also mean

a country’s level of exporting its

produce is limited.

Economic environment: It

examines inflation rates, interest

rates, exchange rates, income levels

and distribution, taxation policies,

credit policies, economic stability

or crisis including global economy

and economic growth.

Social environment: These

consist of the value system, socio-

demographic characteristics and

other basic characteristics of

people comprising the society.

Such characteristics include

attitudes, desires and expectations,

level of education, beliefs, religion,

traditions, habits and customs of

people in a society. The population

structure, for example, would

influence decisions on what

products to produce by a business

concern. Demographic patterns

would also dictate the availability

of workforce for a business entity.

If a firm ignores society’s social

concern, the society will impose

legal restrictions. Many African

societies and religions are for

instance not receptive to family

planning and condoms use.

Technological environment: This

refers to inventions and techniques

in areas of processes, machines,

tools and information technology

including automation. Technology

is key to an organisation’s

transformation processes affecting

processing speed as well as quality

of the final output.

include labour laws of a country,

taxation laws, constitution of the

country and precedent cases on

business.

(c) Porter’s five forces analysis

Michael Porter (A Harvard Business

School researcher) developed

the five forces model to examine

an industry’s attractiveness. An

industry may have the right size

and growth but not attractive from

a profitability point of view. The

company must therefore examine

several major structural factors that

affect long term attractiveness. The

five forces are:

• Rivalry posed by competitors/

threat of new entrants

• Entry barriers

• Threats of substitute products

• Bargaining power of the buyer

• Bargaining power of the

supplier

The five forces model is useful in

understanding the industry context

in which a firm operates. They are

discussed here below:

(i) Rivalry posed by competitors/threat of new entrants

A market with strong rivalry is

less attractive. Firms are always

in competition for market share.

The market share may in this case

be customer base, profits or sales

a given market can provide. The

intensity of rivalry is influenced

by certain industry characteristics

which include the following:

Factors which increase rivalry among firms in the same industry

A large number of firms in similar

operations increases rivalry in an

Ecological environment:

This refers to the protection

of the ecosystem. This is

currently becoming more

critical as environmental

awareness increases

globally. It covers functions

of garbage collection and

management, sewerage

and drainage systems

and protection of wildlife

which includes trees and

animals in the forests.

Legal environment: This

refers to various legislations

that affect business. They

Pestel analysis

Political

Legal

Environmental

Technological

Social

Economical



industry. Firms in overcoming this

challenge always seek to diversify

their product portfolio to meet

varied needs of the customers.

Limited market growth and

size causes firms to fight for

the available market share.

Firms overcome this challenge by

venturing into new markets. In this

era of globalization, many firms

are venturing into international

markets. A case in point is Kenya

where many banks and media

houses have expanded their

operations to other Eastern Africa

countries like Rwanda, South

Sudan, Uganda, Tanzania and

Burundi.

High fixed and storage costs

intensify rivalry since firms seek

to make returns on the expenses

incurred in addition to profits. To

overcome this challenge, firms

always seek to lower expenses

incurred by cutting on unnecessary

costs.

Low switching costs increase

rivalry among firms. Switching

costs are also called switching

barriers and refer to any impediment

to a customer’s changing from one

product to the other.

Strategies firms adopt in response to Rivalry

Igor Ansoff presented a matrix

that focused on a firm’s strategy

for growth. Rivalry presents a

challenge to firms growth and thus

adopting the matrix can offer a

breakthrough to organisations.

Ansoff matrix

Existing product

New product

Existing market

Market penetration

Product development

New market

Market development

Diversification

The four growth strategies can be

solutions to rivalry among firms.

They are discussed here below:

Market penetration: An

organisation seeks to have more

consumption of its existing

products in its existing markets

through aggressive adverting

and marketing. It is the least risky

strategy among the four strategies.

The aim is to increase the market

share of the existing products.

Market development: This

involves taking existing products

to new markets. This has been the

trend in Eastern Africa where many

organisations have been extending

their operations beyond their

countries of operations to the wider

region.

Product development: This

involves developing new products

for the existing market. Mobile

telephone companies have for

instance established money

transfer services within their

existing markets as a new product.

Diversification: This involves

development of new products to

new markets. It is the most risky

strategy and its quadrant is referred

as “suicide cell”. It is an option when

good returns are expected.

Among the four strategies, market

penetration is least risky but

once the market is saturated,

other strategies must be sought.

A market development strategy

is appropriate if the firm’s core

competences are related more

to the specific product than to its

experience with a specific market

Barriers to entry:• Economies of scale• Proprietary product differences• Brand identity• Switching costs• Capital requirements• Access to distribution• Absolute cost advantage• Government policy• Expected retaliation

Determinants of supplier power:• Differentiation of inputs• Switching costs of suppliers and firms in the industry• Presence of substitute inputs• Supplier concentration• Importance of volume to supplier• Cost relative to total purchases in the industry• Impact of inputs on cost of differentiation• Threat of forward integration relative to threat of

backward integration by firms in the industry

Rivalry determinants• Industry growth• Fixed (or storage) costs/value added• intermittent overcapacity• Product differences• Brand identity• Switching costs• Concentration and balance• Informational complexity• Diversity of competitors• Corporate stakes• Exit barriers

Bargaining leverage:• Buyer concentration

versus firm concentration

• Buyer volume• Buyer switching

costs relative to firm switching costs

• Buyer information• Ability to backward

integrate• Substitute products• Pull-through

Price sensitivity:• Price/total purchases• Product differences• Brand identity impact on

quality/performance• Buyer profits• Decision makers’ incentives

Determinants of substitution threats:• Relative price performance of

substitutes• Switching costs• Buyer propensity to substitute

Determinants of buyer power

Bargaining power of buyers

Bargaining power of suppliers

Threat of new entrants

Threat of substitutes

Suppliers

New entrants

Buyers

Substitutes

Industry competitors

Intensity of rivalry

Products

Mar

ket

Exist

ing

Existing

Product Development

MarketPenetration

MarketDevelopment

DiversificationNew

New



segment. A product development

strategy may be appropriate if a

firm’s strengths are related to its

specific customers rather than

to the specific product itself. In

this situation, it can leverage its

strengths by developing a new

product targeted to its existing

customers.

Market penetration is the least risky

followed by market development,

then product development

whereas diversification is the most

risky.

(ii) Entry barriers

This refers to barriers and

challenges which prevent new

players who want to operate in the

market from entry. An industry with

entry barriers is less attractive and

thus will discourage new entrants.

Existing firms may deliberately

create entry barriers to reduce

entry of new firms so that they can

be able to maintain a steady level of

profits. It is expected that when an

industry profits increase, additional

firms will enter in the market to take

advantage of the opportunities.

This however does not usually

happen because of certain barriers

including the existing firms

establishing these walls to ensure

profits are not driven down by firms

at the entry point. Some of these

barriers that prevent entry of new

firms include:

Government regulations

New firms may face the hurdle

of compliance matters with the

government regulations and

requirements including registration

processes which are lengthy,

technical and cumbersome.

Governments in other industries

grant monopolies limiting entry of

new firms.

Brand loyalty

This refers to the loyalty customers

may have on the existing brands

denying market to new brands at

the entry stage.

Economies of scale

Existing players may enjoy

economies of scale thus are able

to have enough funds to sponsor

powerful adverts denying market

penetration to players at the entry

level.

Lack of capital base

Firms at the entry level usually do

not have enough capital to enable

them match up with existing firms

in terms of human resource, quality

and diversification. Existing players

have enough funds thus are able

to produce highly differentiated

products.

High switching costs to the

customer

Switching costs refer to the value

and benefits a customer would

lose by deciding to use another

product to meet the same needs

he used to meet with a previous

product. A good example is mobile

telephone industry. A customer

may find it difficult to move to

another service provider at the

entry level even when the prices of

such a firm are low. This is because

the inconveniences of changing

the telephone number and missing

out on other services like money

transfer make the switching

costs high. This is why entry and

penetration of new players in the

telephone industry has always

been difficult.

Patents and proprietary rights

A patent is a set of exclusive rights

granted by a government to an

inventor for a certain amount

of time. It is a legal document

defining ownership of a particular

area of new technology and gives

inventors the right “to exclude

others from making, using, offering

for sale, or selling their invention”.

Thus a patent effectively acts as a

barrier to entry.

(iii) Threat of substitutes

An industry is less attractive if

actual or potential substitutes

exist. Substitute products refer to

different products having ability

of satisfying customer’s needs

similarly. They can therefore be

MarketPenetration

Strategy

Growth

Low risk

Gain market share

Sell more of current product to existing

market



used to replace one another.

With substitute goods, demand

increases when the price of a similar

good increases. In other words, an

increase in the price of product

A will cause its users to decide to

switch to product B as a substitute

due to its lower price and similar

benefits. Substitute products are

bound together, in that customers

can trade one good for another if

they see fit. Substitutes therefore

place a limit on prices and on

profits. The company has to monitor

price trends closely. If technology

advances or competition increases

in these substitute industries, prices

and profits in the segment are likely

to fall. The best defense is to watch

out for competing products, their

quality, prices and dealer capacities

in the marketplace.

(iv) Bargaining power of the buyer

This refers to the ability of the

consumer to bargain for either

low price or high quality of the

product. Certain factors determine

the bargaining power of the buyer

which include:

Monopsony: This is a market in

which there are many sellers and

one buyer. In such a market, a buyer

is a chooser among many suppliers

and thus has more bargaining

power.

Low switching costs: This is when

a customer can easily move to

another product which will equally

meet his needs (substitute). When

a customer can decide to use a

substitute without difficulties, he

has a higher bargaining power

over the supplier who is currently

supplying him with products.

Backward integration threats:

Backward integration refers to

the situation where a company

takes over the functions of the

supplier. It is one of the forms

of the vertical integration. The

other form is forward integration

where a company takes over the

distribution functions. Backward

integration threats increase the

bargaining power of the buyer

since the supplier will have fears of

losing business.

Buyer purchases a significant

proportion of the product: A

consumer who purchases a large

unit from a supplier will have a

higher bargaining power for lower

prices and higher quality than the

one who buys in small units.

Price sensitive customers:

Customers are price sensitive

when they highly react to any price

change, for example, abandoning

a product because the competitor

has begun to charge a lower price

for the same. Customers are highly

price sensitive when products are

less differentiated and thus they

attach similar value to a product as

to that of a competitor.

Bargaining power of the supplier

This is the power of the supplier

to increase the price of a

product.

Certain factors which increase

this power include the supplier’s

products having no or few

substitutes, high switching costs

and especially when products of

the supplier are unique and highly

differentiated. A threat of forward

integration is another aspect which

increases the power.

(d) 5CS’ ANALYSIS

The 5Cs of situation analysis are

customer, competitor, company,

Mobile wallets challenging

payment gatewaysTelcos’

e-money challenging

banks

Messaging Apps challenging Telcos’

SMS-service providersThreat of

substitute products or

Services

e-book readers challenging retail

book stores

Factors that increase customer’s bargaining power

Customers more concentrated than sellers

Switching costs are low

Customer well informed about the product

High portion of sellers sale is made up of their purchases

Their own product is affected

Products have little differentiation

High threat of backward integration


collaborators and climate/context.

It enables businesses to gain

more information on the internal,

macro-environmental and micro-

environmental factors within the

environment. It is a very complete

analysis of the internal and external

aspects of the business. The internal

aspects are the company and the

collaborators while the external

aspects are the customers, the

competitors, and the climate.

Company

It involves evaluation of the

company’s objectives, strategies

and capabilities. An evaluation

of the strengths, weaknesses,

opportunities and threats of the

company is done at this level. The

analysis is done in an endeavour

to fully understand the company.

Other aspects analyzed are product

line, image of the company in the

market, technology and experience,

culture and goals.

Collaborators

They include distributors,

suppliers and alliances a company

may decide to take with other

organisations. Distributors make it

easy to find products of a company

in little shops, malls, supermarkets

and restaurants. A company is

always working in order to have

effective working relationships with

suppliers to ensure a continuity in

supply of raw materials.

Alliances are necessary because a

lot of times, a company is involved

in sponsorship of events.

Customers

This involves examining market

size and growth, market segments,

benefits that the consumer is

seeking whether tangible or

intangible, consumer information

sources, buying processes and

behaviors of the consumer that

is whether it is impulse or careful

comparison, frequency of purchase,

quantity purchased at a time

and trends of the consumer, that is how

consumer needs and preferences change

over time.

This enables the company to design

discounts and promotional programmes to

stimulate the customers purchase all year

long, in order to make the customers buy.

It also enables the company to position the

product in a way that will be convenient to

the customer.

A company is also able to design

information campaigns and implement

them through web sites, social networks,

events, and in the media to ensure it

maximally reaches the customers.

Competitors

Successful business requires that a

company has to satisfy consumers better

than the competitor. They must adapt to

the strategies that are being used by the

competitors who are serving the same

target markets. Competitors’ analysis is

essential so that a company can benchmark

with other companies in the same industry.

When a company analyses its competitors,

it is able to borrow the best practices from

the competitors. The analysis involves both

internal and external factors. These factors

include corporate objectives, size and power

of the organisation, resources available

and procedures used by the organisation,

product diversification, market size and

geographical coverage, number of market

segments served, distribution channels,

branding and market penetration. It

also involves analysis of advertising

strategies of the competitors. Information

on competitors and their intelligence is

sourced from different sources including

commercial databases like newspapers and

business magazines, trade publications,

websites and promotional materials like

handbills and brochures, customers of the

competitors, tradeshows and exhibitions

and competitors’ employees.


There are two ways to establish competitive

advantage; do things better than others or do them

differently - Karl Albrecht

Factors that increase supplier’s power

Raise prices without affecting demand

Can reduce quantity supplied

Can coorperate formally or informally

Few substitutes are available

Their ‘product’ is critical to end product

Can impose switching costs on cutomers

Have potential to integrate downstream

Climate/Context

This is basically PESTEL analysis. It

examines the macro environment

thus focusing on political, economic,

social, technological, ecological

and legal environments. Political

and regulatory environments focus

on governmental policies and

regulations that affect the market

whereas the economic environment

examines the business cycle,

inflation rates, interest rates, and

other macroeconomic issues. Social

and cultural environment examines

society’s trends and fashions.

Technological environment on

the other hand analyses new

knowledge that makes possible

new ways of satisfying needs and

the impact of technology on the

demand for existing products.

Conclusion

To sum up, it is important to learn about the internal and external factors that

can affect the project or strategy during planning. By working through each of

the above models of environmental analysis, it is possible to identify internal

and external advantages and disadvantages which could benefit or hinder

the outcome of a planned project thus making a difference to the success or

failure of a project. By knowing this information, it can be possible to plan a

successful project that is ready to work around certain problems effectively

and to avoid failure. It is a good idea and excellent practice to work through

the situation analysis with a team in the early stages of a project or strategy

planning. Brainstorming is a great way of introducing all the relevant internal

and external factors for each section of the analysis.

If yo don’t have a competitive advantage,

don’t compete. Jack Welch


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Introduction

As the trading landscape

becomes increasingly

international, exchanges

are cross listing each other’s

securities in a cooperative bid

to boost liquidity and increase

trading volume. The hope is that

these arrangements tap into a

latent demand suppressed by the

complexity of trading on a foreign

exchange.

Cross listing of shares is when a

firm lists its equity shares on one

or more foreign stock exchange in

addition to its domestic exchange.

Generally, such a company’s primary

listing is on a stock exchange in

its country of incorporation, and

its secondary listing(s) is on an

exchange in another country.

Cross-listing is especially common

for companies that started out in a

small market but grew into a larger

market.

The main purposes for cross-

listing are more oriented towards

corporate governance matters

(accounting standards, investor’s

rights protection, better media/

analyst coverage, visibility to clients

and suppliers), but also towards

the access to easier and more

competitive financing conditions.

While cross-listing has some major

advantages, it also has its share

of disadvantages. Ultimately, the

decision to cross-list will depend

on whether the pros outweigh the

cons.

Cross Listing Pros and cons


CROSS LISTING

This article discusses some of

the main pros and cons that any

company wishing to cross-list will

have to address.

Motivations to cross-listing

A number of arguments have been

advanced for cross listing. These

include:

(i) Cross-listing enables listed firms to trade shares in foreign markets

This is the most obvious of

motivations to cross-list. Cross-

listing refers to the listing of a

company’s ordinary shares on a

different exchange other than

its original stock exchange. For

example, a company might list

its equity shares on a foreign

stock exchange in addition to its

domestic exchange. For a company

to be permitted to cross-list, it must

meet the same requirements as

other listed companies. These are

basic requirements for share count,

filing requirements for financial

reporting, accounting principles

and firm revenues.

(ii) Increased market liquidity

Cross-listing enables companies

to trade its shares not only in

numerous time zones and multiple

currencies but also in deeper and

more liquid markets. This increases

the issuing company’s liquidity and

gives it more ability to raise capital.

Foreign companies that cross-list

in the United States of America, for

example, do so through American

depository receipts. This term

applies to foreign companies that

seek to list their stocks on United

States-based exchanges.

By virtue of being listed on different

exchanges, a firms’s stocks are

automatically exposed to more

investors. If a such a firm wishes to

raise additional equity capital, they

have a wider market of potential

investors.

(iii) Market segmentation

investor markets into segments

which are easy to access.

(iv) Lower cost of capital

The traditional argument for why

firms seek a cross-listing is that they

expect to benefit from a lower cost

of capital that arises because their

shares become more accessible

and available to foreign investors

whose access would otherwise be

restricted because of international

investment barriers.

(v) Disclosure

Cross-listing on a foreign market

can reduce the cost of capital

through an improvement of the

firm’s information environment.

Firms can use a cross-listing on

markets with stringent disclosure

requirements to signal their quality

to outside investors and to provide

improved information to potential

customers and suppliers (for

example, by adopting US GAAP).

Also, cross-listings tend to be

associated with increased media

attention, greater analyst coverage,

better analysts’ forecast accuracy,

and higher quality of accounting

information.

Stringent disclosure requirements

invariably forces firms to adhere

Market segmentation

is the practice of

dividing a large market

into clear segments

with similar needs.

Cross-listing enables

firms to divide foreign

to high standards of corporate governance. The

effects of this realignment is ultimately improved

performance which consequently leads to

desirability of the company shares and therefore

demand.

Better investor protection

Increase in accounting governance standards

Better media/ analyst coverage

Reduce transactional costs

Render access to capital markets

Corporate governance

Reduce the risk

Reduce volatility

Lower cost of capital

Increase companies valuation

Increase prestige

Increase liquidity and volumes

Increase visibility(clients and Supplies)

Diversify shareholding

More clients and investorsForeign cross-listing


Cross listing definitely enhances

a company’s visibility and image.

Cross-listed companies feature

a lot more in media reports on

stock performances and are

more likely to be etched in the

minds of customers. This helps in

entrenching the brand name. With

an enhanced image and visibility

comes increased sales. Cross-listing

therefore boosts the advertising

and marketing campaign.

(vi) Investor protection

Cross-listing on exchanges that

are subject to higher standards

of compliance acts as a bonding

mechanism used by firms that

are incorporated in a jurisdiction

with poor investor protection

and enforcement systems. These

companies commit themselves

willingly to higher standards of

corporate governance. Investors

will therefore feel safe to invest in

these companies because their

investments are protected. In this

way, firms attract investors who

would otherwise be reluctant to

invest. Because of bonding, cross

listing will, for instance, reduce

the extent to which controlling

shareholders can engage in

expropriation over minority

shareholders.

(vii) Risk diversification

Given that changes in economic

and market conditions in a country

affect stock prices, the impact

of such changes will not be felt

in equal measure in a different

country or political jurisdiction.

Thus companies cross-list to

diversify risk. Adverse trends in

a given jurisdiction are offset by

positive trends in another market.

Therefore, cross-listed companies

are insulated from the impacts of

fluctuations of market conditions.

The case is even stronger for

companies that have subsidiaries

in different jurisdictions and have

merged and operate in different

countries where their stocks are

listed.

(viii) Increase in value

Different stock exchanges have

different characteristics and

efficiency levels. This has been

observed to have an effect on

stock valuations. In fact, there is a

vast amount of literature on the

impact of cross-listings on the

value of the cross-listed firms. For

instance, most studies find that a

cross-listing on a U.S. stock market

by a non-U.S. firm is associated

with a significantly positive stock

price reaction in the home market.

This finding suggests that the stock

market expects the cross-listing to

have a positive impact on a firm’s

value. This certainly increases the

demand.

In the US, studies have shown that,

such a firm will enjoy value addition

of up to 16.5% in the domicile

country upon cross-listing.

(ix) Increased publicity

Finally, cross listing would also

benefit a company as a result of

increased publicity. This is a key

benefit as such company would

incur lower costs in attempts of

winning consumer confidence

in the prevailing competitive

markets. For instance, consumers

will willingly purchase products of

cross listed company, but will also

want to invest in such a company

through share acquisition.

(x) Other motivations

Cross-listing may also be driven

by product and labour market

considerations (for example, to

increase visibility with customers by

broadening product identification),

to facilitate foreign acquisitions,

and to improve labour relations in

foreign countries by introducing

share and option plans for foreign

employees.

Impediments to cross-listing

In spite of the many compelling

reasons to cross-list, there exists

another side to the coin. This

explains why most firms avoid cross

listing or seek deregistration after

being cross-listed.

(i) High costs

The main impediment to a foreign

cross-listing results from its cost.

We may point out two types of cost:

direct and indirect. Direct costs

correspond to expenses incurred

for the listing process (mainly listing

charges and fees for advisors),

whereas indirect costs include

commitments for the company to

abide by the local laws.

Nowadays, most of costs regarding

a foreign cross-listing stem from

the obligation to comply with

different international accounting

standards such as GAAP and IFRS.

For instance, in the USA, the costs

of keeping an ADR compliant

with the Securities and Exchange

Commission (SEC) regulations have

become increasingly annoying

and demotivating, even for the

biggest European companies.

This non-negligible element

may thus become a “financial

border” between small and large

CROSS LISTING

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been advanced by critics of cross-

listing.

(iii) Overexposure to rivals

Critics of cross-listing argue

that, the increased need for the

investor’s protection requires

excessive disclosures which may

indirectly harm the company.

Detailed information availed in

the public domain is likely to be

utilised by rival companies on the

competitive front to the company’s

disadvantage. Apart from that,

disclosures are expensive to

prepare and consequently, they

consume valuable time which

could be used for more productive

activities.

Conclusion

Generally, cross listing creates a truly global

marketplace with great breadth of product

and geographic reach that benefits all

investors, issuers and shareholders. For

exchanges, any cross-listing that is enticing

to investors creates a new revenue base at

a relatively low cost. As the proliferation

of cross listed securities occurs, it adds

another choice to the investment menu

of how to gain exposure to a market. For

a company, the decision to cross-list or not

rests with the managers. For a decision to

be reached, the managers will need to do

a thorough appraisal of the pros and cons

balancing the needs of all stakeholders.

companies, these last ones being the only

ones that could afford such expenses.

(ii) increased reporting and disclosure requirements

High barriers set by foreign listing

requirements have been cited by most

managers as an impediment to cross listing.

In the USA, for instance, the introduction

of ‘Sarbanes Oxley Act’ imposed strict

rules for companies wishing to cross-list

in the country. Cumbersome SEC rules in

the US have also resulted in companies

deregistering, in most cases, within one

year after cross listing. Increased pressure

on executives due to closer public scrutiny

and additional scrutiny by analysts in

advanced market economies have also

CROSS LISTING


Have you ever realised that it

is not always true whenever

customers tell you that

they are unable to settle their

debts? What they really mean is

that they have other priorities. They

sometimes use the poor cash flow

excuse as a ploy to gain sympathy

from you to avoid payment.

Naturally, there are customers

who are having difficulty and their

cash flow is weak. We should be

realistic in our collection efforts and

acknowledge this fact. But in many

cases, the customer will have other

obligations they have to meet

before settling their invoices. These

may include employees’ salaries,

employees’ benefits, facility

expenses and government taxes.

The challenge for the collector is

to determine which one of the

customers is truly short of money

and which one is using it as an

excuse not to pay immediately.

One of the methods is to inquire

about the condition of the

customer’s debts. This is not a

conversation to be held with the

accountant but rather with the

owner, a partner or a senior manager

of the corporation. The issue should

be approached as “looking for ways

to help the customer resolve their

debt situation so that they can

meet their obligations”.

Often times, the collector is

unaware or forgets that counseling

is a significant element of collection

along with negotiation and

empathy. Therefore, whenever

the customer informs you that

they do not have money, your

response should be something

along the lines of “if there was a

source of money, one that you have

overlooked, and it could take care

of our invoices and perhaps some

of your other obligations, would

you be interested in discussing this

further?”

This is a pretty straightforward

question and one that an owner,

partner, or senior manager will

have to answer with either a “yes”,

“no”, or perhaps a question such

as “what do you mean by that?”

The last choice may indicate the

customer is suspicious but it places

the collector in a position to follow

up with something like “we deal

with this type of unfortunate

situation quite often and we are

pretty good at helping firms such as

yours find the money to meet their

obligations. I wanted to know if you

are interested in discussing ways of

handling this that you may not be

aware of.” Eventually, they should

respond with either a “yes” or a “no.”

and options for debt recovery

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Naturally, there are customers who are having difficulty and their cash flow is weak

Debtors traits


DEBTORS TRAITS

If it is yes, then you know they

are willing to work with you, and

they can still be considered as

customers. If the answer is no, they

have informed you that they are

not willing to work with you and

they have changed their status

from customer to debtor.

Therefore, one of the first things

you should establish in the early

collection stage is whether the

individual or firm that owes you

money is a customer or a debtor.

If you pay close attention, there

are underlying traits that will

distinguish the customer from the

debtor.

Customer traits:

• Accepts your phone calls

or returns them within a

reasonable time

• Responds positively to your

requests for information

• Talks to you about the reasons

they cannot pay

• Keeps the promises they make

• Pays your invoices, perhaps not

in full but they pay something

• Are open to your suggestions.

Debtor traits:

• Do not take or return your

phone calls

• Never provide the information

you request

• Will not give you any

information as to why they are

not paying

• Break their promises

• Issue bouncing cheques

• Curse or scream at you

• Cannot speak or understand

your language unless they

are placing an order or want

something

• Take unauthorised deductions

• Make false accusations to your

superiors as to how you have

handled them

There are times when you have

done your best to collect but still

are unable to motivate the debtor

to pay.

When dealing with a customer

you should always seek assistance

from within your organisation.

This may be a subordinate, a peer,

or a supervisor. It could even be

someone outside the credit and

collection department, anyone in

your organisation who has a good

rapport with the customer and

can motivate them to pay your

invoice. Customers should never

be turned over to or contacted by

anyone outside your organisation

for payment.

If you have identified the

delinquent as a “debtor”, that is

an entirely different situation and

the quicker you transfer the debt

over to a third party, the better the

chance you have of getting paid all

your dues.

When dealing with debtors, there

are several choices available to

you. The following examples of

choice are in the order of the least

to the most expensive and, not

surprisingly, from the least likely

to produce payment to the most

likely.

Debtors may curse or scream at you

Debtors often do not take or return your phone calls


Collection letters

Collection letters are generated

by the organisation. They follow a

time sequence, say at least twice

in the month. The first letter is

usually to clear any problems and

discuss the date and amount of the

next payment before it is due. The

second one should be to come up

with the payment arrangement i.e.

post collection or bank transfer.

Credit reference bureau listing

The main function of a credit

bureau is to maintain records to

assist in obtaining information

regarding the credit status of would

be borrowers. The information

relating to consumer credit would

be, records of court judgments in

the last six years, credit information

on current and unsettled accounts

with member companies,

information given by other traders

regarding bad repayments trends,

records of bankruptcies and

administration orders, cautions or

notices to auctions, satisfaction

of judgment and auction notices.

Listing in reference bureau will

affect the way the debtor conducts

business as they may end up

being denied credit or get it very

expensively.

Collection agencies

Collection agencies offer the best

odds of obtaining the most net

money even after their fees are

deducted. It is always advisable

to hire a collection agency that

specialises in collecting debts in the

industry you are in. Often they have

encountered the debtor before and

know who to speak with and how

to motivate them to pay.

When using a collection agency, it

is wise to investigate their practices,

obtain references along with copies

of their registration certificates.

Remember that if you contract a

collection agency, you are liable for

whatever actions they take against

the debtor.

A reputable collection agency

should be a member of the Institute

of Credit Management (ICM-K).

It is a good idea to verify their

membership if they claim to be a

member of this organisation.

Court process

It needs no emphasizing that legal

action should be taken as a last

resort. One should be able to obtain

judgment without employing

the services of a lawyer or even

attending the court. Heaving action

Possible seizure of debtor’s personal

assets by debt recovery solicitors

Personal visits by collection

agents

Written friendly reminders and recall phone conversations

Official letters before action

What is a debt collector -

strategies and recovery

attempts?

Court actions and legal

proceedings

DEBTORS TRAITS

Court action offers the last hope in debt recovery

can be taken by return of goods when a

fixed date summons is applied for or a

money judgment when a default summon

is applied for.

When a fixed date summon is issued and

served on the defendant, the court fixes

a date for the hearing of the claim. The

defendant may chose to attend court or

not and or dispute the details. In this case,

a sworn affidavit can then be sent to court,

giving the exact details requesting court

to enter judgment in the plaintiff’s favour.

A copy of the sworn affidavit must also

be sent to the debtor advising him that

evidence is submitted to court.

When a default summons is issued for a

money judgment, and no defense or offer

is received from the defendant within 14

days, a written request is then made to the

court for judgment to be entered.

Once judgment has been entered

and payment is not made, action

is made by way of warrant of

execution or by applying to the

court for an attachment of earnings.

This is paid to the court and then

to the trading company on a pre-

arranged method.

Write off the account

Actually, this option can be the

least expensive depending on the

gross margins.

This option is only recommended

when the balance is small and will

cost more to collect compared to

what is recoverable. Some firms

choose to write off balances that

are in dispute especially from key

or major customers. The risk in

doing this is that we may encourage the

behaviour that created the initial write-off.

In a nutshell, whichever option we take, it

should be made within a reasonable time,

usually within the first 45 days after the due

date. The longer we wait to initiate action,

the harder it becomes to collect. Many

organisations have very old debts in their

books and are unaware of what to do with

them. The options presented in this article

are worth trying if organisations are to

recover what they are owed.

LEVELS I & II

2014 GRADUATION CEREMONY

DEBTORS TRAITS

LEVELS I & II

2014 GRADUATION CEREMONY


INTRODUCTION

Since time immemorial, good

human values require every

person to be considerate of

their neighbour as they go about

their daily activities.

Thus before carrying out an activity

of any type – socio-economic or

otherwise – one should ask what

impact, negative or otherwise, this

activity is likely to have on a third

party within the proximity of the

environment and beyond.

This is a topic that should be of

interest to everybody because no

one lives on an island. We all live in

some environmental context and

our activities invariably have an

effect on it, no matter how small.

Thus the topic on externalities.

EXTERNALITIESMEANING, TYPES, CAUSES, CONSEQUENCES AND SOLUTIONS

MEANING OF EXTERNALITY

An externality may be defined as

a consequence of an economic

activity that is experienced

by unrelated third parties. It is

therefore important to appraise

your environment and consider

who or what is in it and what

activities take place in it. Try to

relate these to the activities in the

diagram below.

If you are in business in this

environment, you may not be the

only one. Activities of others that

affect your operations are external

to your internal activities. Just

find out how population growth

in the environment in which your

business operates influences your

business growth. What about

the socio-cultural activities of

the population on your business.

You can go on and on examining

how economic, political, legal

technological and global activities

affect your business operations

and growth. These activities are

in your environment just as you

and your business are in the same

environment. Ask yourself how they

affect you or how your activities

affect theirs and explore any need

to cooperate with the others for

mutual optimal outcomes.

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directing it at

the university

administration,

with whom they

have grievances,

they end up

hurting people who

have nothing at all to

do with their issues. This is

clearly uncalled for and bespeaks of

a people who have no compassion

for their neighbours.

Large aircrafts taking off or landing

emit loud noise which in some

cases causes stress and creates

fear in residents of neighbouring

estates. It means that nobody cared

about location considerations at

the design stage of the airport

or airstrip. The government

could probably have considered

relocating the residents or

reconsidered the location of the

landing zone depending on who

occupied first.

Examples of negative externalities

abound in our environment and we

could go on and on.

POSITIVE EXTERNALITIES

Let us start by asking a few

questions to help us understand

positive externalities.

Does your family benefit from

a carpentry workshop in the

neighbourhood?

Does a maize farmer benefit

from a slaughter house in the

neighbourhood?

Who of the parties benefits from

the other in the neighbourhood –

the maize farmer or the bee farmer,

the dairy farmer or the livestock

farmer? Your answers are as right

as mine.

If we all became aware of how

each person’s activities affect their

neighbours, and acted responsibly,

we all would be a happier lot.

Take another look of a well-

educated and trained population

and neighbourhood from which a

company draws its workforce. This

company will enjoy benefits of high

productivity and low industrial

strife. Such workers are likely

to be good time managers and

diplomatic in case of any industrial

dispute hence a source of industrial

TYPES OF EXTERNALITIES

An externality can be a cost or a

benefit to a third party resulting

in either a negative or positive

outcome.

NEGATIVE EXTERNALITIES

Let us look at a few examples of

negative externalities to deepen

our understanding.

Pollution is one of the most

ubiquitous negative externalities.

Examples include emissions of

toxic gases and effluents from

factories, dumping of garbage in

undesignated places by factories

and homes and so on. These

activities not only create eyesores

but also pose serious health hazards

to residents in the neighbourhood.

A cattle herder who cannot

control his animals and lets them

loose to feed on flowers and

crops of neighbours becomes a

nuisance and a statistic of negative

externalities.

Think of the university and college

students who wreck havoc on

innocent motorists as a way of

ventilating their anger. Instead of

Transport externalities

Barrier effect (communities severed

by roads or rail)

Accident-related damage

Dust particles

NoiseCongestion

Water pollution

Local air pollution

Green house gases

Ecological impact

Visual blight

Building vibration damage

Oil spills

Consumption

Medicine

Health education

Public transport

Hygiene

Attractive environment

Human resource Development

Research and developmentProduction

Production

Pollution

Consumption

Positive externalities

Externalities

Negative externalities

Air

Land

Water

Noise

Smoking

Litter

Noise

Anti-social

behaviour

Congestion

Intensive farming

Development

Crime

Examples of positive and negative externalities

EXTERNALITIES


EXTERNALITIES

peace in the work environment.

What a blessing!

Imagine you were using demand

and supply curves in your

analysis of negative and positive

externalities and started from

a market equilibrium position

when all resource allocations were

optimal, answers to the following

questions would add great values

to your stock of knowledge in the

subject area - I can bet that if you

try them and go wrong, you will not

be penalised.

Assuming unchanged demand

(ceteris paribus) for the product of

the producer, what impact would

a negative externality have on the

producer’s supply curve? The price

he will charge for what he sells?

Diagram 1 helps to illustrate this.

Keen observation would show that

that an externality to a producer

or supplier would force him to

produce and supply less causing

his supply curve to shift inwards to

the left from S2 to S1. As a result

of this, Market Quantity Equilibrium

falls from Q30 to Q20. By extension,

this would cause the Market

Equilibrium Price to rise from P5 to

P10. Guess who would suffer most

between the suppliers and the

consumers of this product because

of the externality.

Now take a case of a positive

externality. Assuming a state

of unchanged demand for the

product, a positive externality

would confer benefits of reduced

production costs on the producer.

As a result of this, guess what would

happen to the producer’s supply

curve, his market equilibrium point,

market equilibrium quantity and

his market equilibrium price. Don’t

forget to ask yourself who between

the consumer and the producer of

this product would benefit most.

Justify your argument for the

position you have taken in this case.

Diagram 2 below shows that the

positive externality which has

caused a reduction in production

costs for a product has induced the

producer to hire more factor inputs

for more production of the good.

Given that demand for the product

remained unchanged, increased

supply of the product from Q30 to

Q45 caused by an outward shift in

supply curve from S2 to S3 would

cause the equilibrium price to

fall from P5 to P2. This will greatly

benefit the consumers as their

welfare would be enhanced.

CAUSES OF EXTERNALITIES

An externality arises when a

person engages in an activity

that influences either adversely

or otherwise the wellbeing of a

bystander. In this case, neither the

source of the externality pays nor

is compensated by the recipient of

the externality nor is recipient of the

A production externality

initiated and received in production

A mixed Externality

Initiated in produc tion but received in consumption

A CONSUMPTION EXTERNALITY

Initiated and received in consumption

A MIXED EXTERNALITYINITIATED IN CONSUMPTION BUT

RECEIVED IN PRODUCTION

As a negative externality

Example

The

discharge of radioactive

waste from a nuclear power station enters the food chain an makes local

meat unsaleable

As positive externality

Example

A firm offers training to its

workforce which increases their

skills; other firms benefit when the workers change

jobs

As a negative personality

Example

A firm sells sweets to children

which causes tooth decay,

toothache and extreme discomfort

As a positive externality

Example

A DIY store landscapes an

adjacent stretch of wasteland

enhancing the attraction of the area for all who

pass by


Example

A minority of rowdy impolite

students in class talk amongst themselves,

thus preventing the majority of well behaved students from

learning


Example

A person gets vaccinated against a

contagious disease and

prevents it from spreading to other people


Example

People drink excessive

amounts of alcohol which impairs their

health and thus their efficiency

at work


Example

A firm’s employlees spend their

lunch breaks at a fitness centre;

their health is improved

which enhances their efficiency

at work

External cost

Externalbenefit

External cost

External benefit

External cost

External benefit

External cost

External benefit

THE VARIOUS KINDS OF EXTERNALITY

1 2 3 4 5 6 7 8

Diagram 1 Diagram 2


externality paid or compensated for

the effect of the externality. When

a market outcome affects parties

other than the buyers and sellers

in the market, side-effects created

are called externalities. Externalities

cause markets to be inefficient and

thus fail to maximise total surplus or

profits to producers. To consumers,

total utilities from the use of a

product affected by an externality

may be less or more than is socially

desirable because the externality

has resulted into production that

is either less or more than socially

desirable.

EFFICIENT FREE MARKET

If there were no market failures,

the Market Price Mechanism would

operate through free forces of

Supply and Demand to facilitate

optimal resource allocation. In such

situations, we would be living in

a Utopian World. In such a world,

each product would have many

buyers and sellers where none

would have domineering influence

in the market. Such a product would

be technically and economically

homogeneous. The buyers of the

product in this market as well as

suppliers of the product would be

all knowledgeable of the market

situation and would not rely on any

influence through advertisements

and other inducements to buy or

produce a good. All participants in

such a market enjoy zero transport

costs as if located at the same point.

Of course, only a single uniform unit

price prevails in the whole market

for the product. You can imagine a

market in which not even a trace of

government influence or directive

is heard of. In such a wonderful

market, the producers will freely

enter the market and partake of

the super-normal profits. They

would enjoy the same freedom

to vacate the market if evidences

abound that firms in the market

reap only losses. Of course each

firm would evaluate if it generates

revenue above or at or below its

variable costs in the light of losses

before taking a decision to quit or

continue producing and selling. In

such a market, optimal resource

allocation would be achieved when

producers charge a price equal to

the firm’s Marginal Costs.

MARKET FAILURES AND EXTERNALITIES

From the typical utopian market

alluded to above, we can guess with

much confidence what a failed (or

call it an imperfect) market would

look like. In such a market:

There would be fewer buyers and

fewer sellers, this number going

as low as one on both sides. Here

you will meet a monopsonist who

takes pride for being the sole

buyer of a commodity or factor.

He pays the lowest price below

his marginal costs but justifying

the use of marginalist principles

in setting his price to exploit the

seller of the product or factor. In

his neighbourhood, you will come

across a monopolist bragging to be

the only seller of a product, fleecing

the consumers with impunity.

Yes! In an imperfect product or

factor market you will enter a market

gate and meet heterogeneous or

differentiated products or factors,

the reasons for which traders will

justify charging price differentials

because each seller enjoys some

degree of monopoly.

Once you hear of a monopolist or a

monopsonist or their monopolistic

competitors, you would be sure

of restricted mobilities into or out

of a factor or product market. The

monopolist will even show you why

he would charge different prices

for different buyers for the same

quantities of the same product. This

will be because he can segment his

product market into income blocks.

Of course he will never charge

marginal cost price just as his friend

the monopsonist would not pay

the marginal wage rate for labour

or marginal interest rate for capital

or marginal rent rate for land that

he buys.

In an imperfect market, both

consumer and producer ignorance

abound, made worse by powerful

advertisements whose contents

may not make the buyer any better.

Existence of economies of scale

in the hands of a few by virtue of

natural or acquired or stolen (or

Money

Consumer

Cost imposed on others involuntarily or benefits received free

Consumption external cost or benefit

Production external cost or benefit

Firm

A product

Voluntary Exchange

EXTERNALITIES


EXTERNALITIES

illegally purchased) endowments

renders buyers prone to

exploitation.

Sometimes, it may not be surprising

to find impunity and law of the

jungle operating in a market where

there is a failed administrative,

judicial and police systems. In a

such a situation, aggrieved buyers

or sellers do not get justice.

SOLUTIONS TO EXTERNALITIES

How would externalities arise in

such situations of failed market

systems? Cases of environmental

degradation – on water, in the

air and on land - are a common

sight. Charcoal burners and sand

harvesters continue to benefit at

the expense of the environment

and the community at large.

In the case of a negative externality,

it is only fair that a party that

suffers consequences should be

adequately compensated either

directly or indirectly by the source

of the externality. Similarly, a

party that benefits from a positive

externality should feel obligated to

reciprocate in some way.

The extent of the damage or benefit

of the externality in question should

have a way to be measured. This will

make it possible to determine the

amount of penalty to be paid by the

source of the negative externality

and extent of compensation to the

party that suffers from it.

Similarly, it will make it possible

to determine how much the

beneficiaries from positive

externalities need to cough

out to subsidise the source of

this externality. The bee farmer

definitely benefits from the

Maize farmer and so does the

Maize farmer benefit from the

bee farmer. The two can be good

friends absorbing the effects of the

externalities without requiring any

compensation from each other.

It is very important that every

government should have a clear

and effective public policy on

externalities to promptly deal

with the problems of externalities.

When externalities are significant

and private solutions are possible,

the government should through

relevant Acts of Parliament,

regulations and by-laws prohibit

or regulate activities that cause

harmful externalities. These could

come in the form of command-

and-control policies or market-

based policies applicable to

firms, individual producers and

consumers. Those who fail to

comply should face the full force of

the law.

Because the effects of externalities

generated in an area or a country

or a region may spill over to

the neighbouring countries,

part of solutions to deal with

such externalities must include

inter-governmental or regional

cooperation and policy integration.

Use of fiscal measures - taxes to

deter negative externalities and

subsidies to encourage positive

externalities has been quite

effective. When an anti-pollution

law or regulation has specified a

maximum limit of waste discharge,

any firm exceeding this limit may

be forbidden from continuing

the excess discharge or may be

prosecuted and fined appropriately

or may be instructed to install

pollution abatement equipment

or otherwise stop its activities all

together.

Think of cases where activities of a

firm generate positive externalities

in a community’ such as the

construction of a cattle dip. This

would definitely reduce incidences

of tick borne diseases. More milk

and healthy beef would also follow

as a result. The owner of such a

cattle dip needs to be compensated


by way of charging

some amout to the

users. In both cases,

externalities would

have been internalized.

The Coase Theorem

(Coase1 (1960) states

that if private parties

can bargain without

cost over the allocation

of resources, then

the private market

will always solve

the problem of

externalities on its own

and allocate resources

efficiently. If the victim

of an externality can

negotiate with the

source of externality

on how the effect of

the externality can be

minimised, the better.

What negotiation can

you have with your

neighbour who always

arrives back home

drunk and very noisy in

the dead of the night?

If negotiation fails, an

alternative course of

action can be resorted

to. Either the source of

externality can be sued

in court for being a

public nuisance or the

victim can move out

of the place to a more

convenient area. When

these options fail, the

Law of the Jungle is

unfortunately likely to

be applied whereby

the source of the

harmful externality will

be forcefully ejected

out of the particular

environment.

The effects of a dump site for instance affects many people in different ways. It is an eyesore and a health

hazard, it degrades an estate and it eats up space that could be used in other ways. But a dumpsite is

also a source of reveune for garbage collectors and recyclers. The victims and beneficiaries of the dump

site could co-operate for mutual benefit. Those who view it as a nuisance could pay those who benefit

from it and everybody will be happy in the end. As a result both sides would have internalized the

externality.

Ultimately, an appropriate solution to impacts of an externality should strike a fair balance between

the source and the affected with each party sincerely and willingly obligated towards the welfare of the

other. What a wonderful world it would be!

EXTERNALITIES


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Introduction

Every organisation invests

heavily in information

communication technology

in anticipation that this will in

turn provide value addition and

competitive advantage. In view

of the numerous challenges

that businesses face amidst

deteriorating markets, inability to

respond swiftly to ever-growing

customer demands and rising

costs of doing business, ICT plays a

pivotal role in enabling businesses

to tap into new markets and cut

down on operational costs.

There are many challenges

associated with file conversion

— also known as data migration.

First, the amount of data to be

migrated is increasing as quickly

as storage capacity grows. Second,

file conversion is problematic for

most users. Third, applications

need 24/7 data availability, so that

IT departments have only narrow

downtime for essential system

maintenance and don’t want to

“waste” this time converting data.

Definition

In computing, the term “file

conversion” applies mostly to

changing the format and place

where the data is stored so it can be

readable and accessible in another

system. Any time an organisation

buys, changes or upgrades its

computer system, the need for

data migration arises and hence the

need for file conversion.

Legacy system

This is an old method, technology,

computer system, or application

program which may not have web-

based capabilities whose cost of

replacement is high if not carefully

considered.

CRITICAL SUCCESS FACTORS IN

FILE CONVERSIONFILE CONVERSION

Erne

st M

adar

a, Le

cture

r, IT c

onsu

ltant

, KCA

Univ

ersit

y


FILE CONVERSION

Systems development life cycle

SDLC is a logical sequence of

activities used to identify new

systems needs and to develop new

systems to support those needs.

SDLC is a model for reducing risk

through planning, execution,

control and documentation of key

activities.

Implementation Phase

Depending on whether the

system is a bespoke solution, that

is, a consultant or a programmer

developing a system from scratch

or an off-the-shelf (OTS), that is,

a system that is ready made and

readily available from the outlet

stores, implementation phase

stands out as a critical success

factor. Among the activities that are

carried out include the following:

• Site preparation

• Acquisition of hardware and/

or software

• Installation of hardware,

software and/or network

• User acceptance testing

• End user training

• File/data conversion(data

migration)

• Changeover

Data Purging

This is the deletion of inactive, old

and obsolete data. For example,

you may delete all one-time

customers or those for which there

were no transactions in the last two

years, also delete unused materials.

Data Cleansing

This process corrects data

inconsistencies and ensures the

integrity of the existing data during

the migration process. For example

removing duplicate accounts for

customers, suppliers or accounts

in the chart of accounts, electricity

expenses and lighting expenses.

DataMapping/

Assessment

FinalMigration

TestMigration

MigrationValidation

DataCleansing

PostMigration

Data Newerthan N-1 Days

Not Purged Data Purged

DataDeleted

Data CopiedOlder than

N days

Archive Data


FILE CONVERSION

Any of the above steps either singly

or jointly contribute immensely

to system failure. We are paying

attention to file conversion because

most organisations don’t give

the due attention or seriousness

it deserves. File conversion is

a messy, time-consuming and

difficult undertaking. Some surveys

quote that 84% of file conversion

projects fail. A survey of UK-based

financial services firms found that

72% of organisations deferred

moving applications because file

conversion is ‘too risky.

Factors driving File Conversion

Technology refresh - replacing

a server with a new one - is

the number-one driver of

file conversion, followed by

consolidation and relocation.

The storage hardware and server

replacement involved in technology

refresh, coupled with the expiration

of storage equipment leases, means

that ICT managers have to move

data on a regular basis. In addition,

storage and server capacity are

acquired at a rate typically ranging

from 25 to 50 percent annually to

accommodate data and application

growth. So, every year - or even

more often - a typical organisation

acquires storage technology to

replace file servers on which lease

or maintenance agreements are

expiring, and it acquires additional

capacity to accommodate

anticipated growth. It can be an

exercise that can last a few minutes,

days to months for example

upgrading from a lower version to a

higher version of a similar software

platform, moving from a manual

to computerized environment

or a switch from one software to

another for example from brilliant

to sage pastel.

Reasons why file conversion is bound to fail

• Failing to engage the business

users at the outset.

• Absence of data governance

policies and organisational

structure.

• Poor data quality in a legacy

system.

• Neglecting to validate and

redefine business rules.

• Failure to validate and test the

data-migration process.

• Employees entrusted with

a data-migration project

lack industry best-practices

experience.

• Your team relies too much on

the tools of the job.

• Attempting to go live in one

big upload at the end.

• Budget overruns due to

inadequate scoping or

preparation at the start.

File conversion is usually part of

a larger project deliverable, and

typically the majority of business

attention is focused on the package

selection and configuration rather

than on ensuring that the data

that populates the new system is

fit for the purpose. Choosing the

new system is an exciting, strategic

business activity that usually entails

working with new technologies,

suppliers and opportunities.

IT BUDGETSHORTFALL

DATA GROWTH

2011 2012 2013 2014 2015

EFFECT OF DATAOPTIMIZATION

IT BUDGETS

COST OF STORAGE/GB

Data and schema analysis

Test, test, test

Define formats, rules and workflows

Verify transformations

Transform data

Export/ import data


FILE CONVERSION

Costs associated with file conversion

• Unplanned downtime

• Delaying the purchase of new,

better storage

• Lease overruns

• Overpaying for capacity

• The need for additional

storage hardware

• Exceeding planned staff time

• Exceeding file conversion

budget

• Exceeding scheduled

downtime

• Lack of validation procedures

to ensure data integrity.

The success or failure of file

conversion is dependent on the

activities and management of

issues before file conversion, during

file conversion and the time after

the file conversion

Before file conversion

Many issues arise before any

migration process actually starts.

That doesn’t sound too good. But

the optimistic side is that they can

also be solved before they turn

into any serious consequences.

Thereupon, every file conversion

has to be preceded with responsible

preparation, considering especially

the following issues.

Specialists needed

One of the most important and

common problems with file con-

version is the fact it is disregarded

by company management, whose

representatives don’t pay enough

attention to the importance of file

conversion projects. They consider

it one of many routine tasks which

IT employees should be able to

pass through without any special

help or support. Unfortunately,

this is not the case. File conversion

isn’t just a matter for the IT depart-

ment. It is a process which involves

almost every employee across the

organisation. Therefore it requires

engagement not only from IT, but

also from experts from other de-

partments, data users and others.

What else is needed is to allocate

powerful system resources to file

conversion so it could be completed

quickly and efficiently.

Unreal scoping and budgeting

It is extremely important not to

underestimate the cost of file

conversion - looking for savings

on this stage is suicidal. The same

is to scoping - underestimating

the number or intensity of things

which have to be done makes file

conversion longer than predicted

and, therefore, much more

annoying to data users across the

organisation.

Data inconsistency and lack of management strategies

It definitely isn’t easy to keep

data quality on its highest level.

However, it is required to keep

data as usable as possible.

Unfortunately, it doesn’t happen in

many organisations. In fact, proper

data management strategies and

regular data cleansing are the best

methods for keeping data quality

on the demanded level.

DATA MIGRATION PROCESS

ASSESS PLAN EXTRACT CLEANSE LOAD VERIFY

OLD SYSTEMALL MEDIA /FORMATS DATA MIGRATION

NEW SYSTEMSALL MEDIA/FORMAT


FILE CONVERSION

During file conversion

Wrong migration strategy

What to do next? It is one of these

questions which shouldn’t be asked

when file conversion is started.

People who are involved in data

transfer have to know very well all

steps of file conversion and have to

know what’s next. If the strategy is

incomplete or - even worse - it has

not been prepared at all, chances

that migration will finish with

success are getting lower and lower

in proportion to the complexity

of processes that have to be done

anyway.

Wrong tools

The choice of tools should be a

part of file conversion strategy,

but the fact is that managers from

different organisations don’t pay

real attention to tools designated

to support data transfer. In many

cases, the only tools used for file

conversion are the ones which the

company already owns.

No cooperation among teams

File conversion truly is a complicated

process which - if it has to be done

as quickly as possible - requires

involvement of people from totally

different departments across the

organisation. If these teams do not

cooperate in a required way, the

risk of mistakes and - in some cases

- counteractions is very high.

Inflexibility

A good and detailed plan is truly

the first step every successful

conversion/migration should start

with, but it is not always possible

to keep it alive. The worst one can

do during migration is to keep the

already fixed plan regardless of

changing situation. Sometimes it is

a must to introduce some changes

and improvements when the work

is in progress.

After file conversion

Conversion lateness

One of the worst things that

happens after conversion is

realising that it wasn’t needed.

Or - what also happens, and may

be even more common - it has

been done too late. The situation

in which business operates, is

changing constantly and so do

business processes, systems, and

applications. Thereupon, spending

a few days on migration might

come out as a waste of time after

all.

Lack of proper after-migration validation

The last step of every file conversion

should be validation of its results.

It is important to realise that

validation should not only be done

by the ones directly responsible

for the process. The real users of

transferred data need to confirm

that everything is the way it should

be. They’re the most probable

group to identify the issues which

may seem not worth mentioning,

but turns vital later.

Data MigrationLegacy StorageSystem

Data processing

Post migrationactivites

Migrationvalidation

File extractand load

Test extractand load

Data cleaning

SAP Standard

Read data

Convert data

Direct input processing

IDoc inbound processing

Read data

Converted data

One or several files

BAPI processingvia ALE interface

Batch input processing

Legacy dataon application

sever

Legacy dataon PC

Structure relations

Field mapping

Conversation rules


Two approaches to file conversion

(i) Big bang migrations

In a word, it suggests shutting

all applications and databases

immediately, stopping the

work and putting all force in file

conversion. In fact, it really seems to

be a good option, because only this

way guarantees that the migration

lasts for a short time as possible.

Moreover, it almost eliminates the

risk that something unpredicted

happens during the process. On

the other hand though big bang

migration might be destructive to

the organisation’s work. In cases

where companies depend on real

time data, being cut from such data

might be a real problem. There is,

of course, a way to minimise the

negative influence of big bang

migrations. In most companies

which decide to choose this type of

file conversion strategy, the process

is being initialised after work hours

or on holidays. This way, cutting off

the access to data may cause the

least problems.

Big bang migrations

Advantages Disadvantages

short time of migrationcan be run during weekends and holidays

obligatory organisation systems’ downtime risky

(ii) Trickle migration

Trickle migration is performed

during the normal work of all

involved systems. How is it possible

then? The idea behind trickle file

conversion is not to shut the whole

system at once, but operate only on

chosen areas so that all other areas

could be accessible at the moment

of migration.

Trickle migrations

Advantages Disadvantages

No interruption in employees’ work No system downtime

Long time of migration More complex to organize

File conversion methodology

File conversion, understood as

a process of transferring data

from one system to another,

often a newer one, seems simple.

Nonetheless, it still requires quite a

lot time to prepare as well as some

time to finish with proper migration

validation. That is why complete file

conversion may take noticeably

longer than the time needed to

extract, transform and load data

into new databases.

1. Analysis of business impact

- Every migration means a lot of

inconveniences for company staff.

People need to be prepared to have

lost access to data they usually work

on. Therefore, it is crucial to ensure

that migration won’t interrupt

them too much.

2. Information gathering -

Knowing what impact migration

can have on business users, is

the first step, but gathering the

information about software and

hardware migration aspects isn’t

less important.

3. Mapping, designing - Knowing

where migration tools will take data

from is one side of the question,

while another one is to determine

what place it is going to be stored

at.

4. Plan of migration - Making a

plan, even if seems superfluous in

case of small migrations, is almost

a must. It lets people responsible

for migration keep an eye on the

process and be sure that they don’t

omit any single but very important

detail.

Advance analysis, scoping and data cleaningUser agreements and initial training

Cleaning,mapping, matchingand merging of your dataPre-migration notificationmailing to your alumini

Special Early Life Support by support CentreData enhancement and process development

Preparation

Data migration

Post Go-Live

FILE CONVERSION

Data Assessment

Data Cleansing

Test Extract & Load

Final Extract & Load

Migration Validation

Post Migration Activities


5. Provisioning - The real

provisioning differs according to

the layout of migration chosen a

few steps earlier. In case of one-to-

one migration layout, provisioning

is nothing more than copying

former structure of files, data

volumes, and attributes so that the

new environment could be ready

for receiving the actual streams of

data.

6. Test migration - A test migration

is always required to check in

practice if all the presumptions were

correct and if the tools were chosen

properly. Test migration should

apply to a little but representative

part of data.

7. Migration - In short, it is all what

file conversion is about - moving

data from its original source to a

new destination.

8. Validation - Once all migration

processes finish, it has to be

checked if everything went in

an ordered way. In some cases,

even if the migration seems to be

successfully accomplished, there

may be some errors hidden deeper

so there is a need to identify and

correct them as soon as possible so

that they may not interrupt future

work on the database.

Conclusion

Whatever the reason for the

file conversion, its ultimate aim

should be to improve corporate

performance and deliver

competitive advantage. To succeed,

file conversions must be given

the attention they deserve, rather

than simply being considered

part of a larger underlying project.

Lacking this and without proper

planning, there is a high risk that

the project will go over budget,

exceed the allotted time, or even

fail completely. Most organisations

rely on their end users to validate

whether their file conversion has

been successful or not. Without

validation procedures, problems

Data quality remediation

Prepare data load

Data load trial

GO LIVE

Validate results

Target systemloading

Identification dataand requirement

Asses source data

Scoping

Data Migration Methodology

Project preparation

Buisinessblueprint Realisation Final

preparationGo-Live &support

Facts and Findings Migration Roadmap Quotation

Task Task Task

• Collect data of existing LN Apps• Conduct interview with

application owners• Categorize and generate

inventory of existing LN App

• Complexity Classification.• Recommended target

platforms.• Recommend Migration

Approach.

• Apply norm and estimation process to calculate the estimated effort.

• Cost calculation.

Outcomes Outcomes Outcomes

LN Application Inventory • List of target applications with complexity level and recommended platforms.

• Migration approach.

• Effort Estimation.• Cost Estimation.

MIGRATION ASSESSMENT PROCESS

Application Inventory Data Analysis Estimation

FILE CONVERSION

show up when the business

is running. The result can be

downtime during working

hours that the weekend

data move was intended to

avoid. It is clear that users

face very real issues in ICT

environments where the

need for storage grows

rapidly and downtime is

not an option.


Good bosses have strong organizational skills. Good bosses have solid

decision-making skills. Good bosses get important things done.

Exceptional bosses do all of the above--and more. Sure, they care about

their company and customers, their vendors and suppliers. But most important,

they care to an exceptional degree about the people who work for them.

That’s why extraordinary bosses give every employee:

1. Autonomy and independence

Great organizations are built on the optimizing of processes and procedures.

Still, every task doesn’t deserve a best practice or a micromanaged approach.

(I’m looking at you, manufacturing.)

Engagement and satisfaction are largely

based on autonomy and independence.

I care when it’s “mine.” I care when I’m in

charge and feel empowered to do what’s

right.

Plus, freedom breeds innovation: Even

heavily process-oriented positions have

room for different approaches. (Still looking

at you, manufacturing.)

Whenever possible, give your employees

the autonomy and independence to work

the way they work best. When you do, they

give employeesGood bosses care about getting important things done. Exceptional bosses care about their people.

10 thingsextraordinary bosses

By Je

ff Ha

den


almost always find ways to do their jobs

better than you imagined possible.

2. Clear expectations

While every job should include some

degree of independence, every job also

needs basic expectations for how specific

situations should be handled.

Criticize an employee for offering a discount

to an irate customer today, even though

yesterday that was standard practice, and

you make that employee’s job impossible.

Few things are more stressful than not

knowing what is expected from one day to

the next.

When an exceptional boss changes a

standard or guideline, she communicates

the change beforehand--and when that is

not possible, she takes the time to explain

why she made the decision she made and

what she expects in the future.

3. Meaningful objectives

Almost everyone is competitive; often the

best employees are extremely competitive-

-especially with themselves. Meaningful

targets can create a sense of purpose and

add a little meaning to even the most

repetitive tasks.

Plus, goals are fun. Without a meaningful

goal to shoot for, work is just work.

No one likes work.

them to make suggestions, or

instantly disregard their ideas

without consideration, and they

immediately disengage.

That’s why exceptional bosses make

it incredibly easy for employees to

offer suggestions. They ask leading

questions. They probe gently. They

help employees feel comfortable

proposing new ways to get things

done. When an idea isn’t feasible,

they always take the time to explain

why.

Great bosses know that employees

who make suggestions care about

the company, so they ensure those

employees know their input is

valued and appreciated.

6. A real sense of connection

Employees work for a paycheck

(otherwise they would do volunteer

work), but they want to work for

more than a paycheck: to work with

and for people they respect and

admire--and with and for people

who respect and admire them.

That’s why a kind word, a quick

discussion about family, an informal

conversation to ask if an employee

needs any help--those moments are

much more important than group

meetings or formal evaluations.

4. A true sense of purpose

Everyone likes to feel a part of

something bigger. Everyone loves

to feel that sense of teamwork and

esprit de corps that turn a group of

individuals into a real team.

The best missions involve making

a real impact on the lives of the

customers you serve. Let employees

know what you want to achieve for

your business, for your customers,

and even your community. And

if you can, let them create a few

missions of their own.

Feeling a true purpose starts with

knowing what to care about and,

more important, why to care.

5. Opportunities to provide

significant input

Engaged employees have ideas;

take away opportunities for

LEADERSHIP

LEADERSHIP

A true sense of connection is

personal. That’s why exceptional

bosses show they see and

appreciate the person, not just the

worker.

7. Consistency

Most people don’t mind a boss

who is strict, demanding, and

quick to offer (not always positive)

feedback, as long as he or she treats

every employee fairly.

(Great bosses treat each employee

differently while treating every

employee fairly. There’s a big

difference.)

Exceptional bosses know the key

to showing employees consistency

and fairness is communication: The

more employees understand why a

decision was made, the less likely

they are to assume unfair treatment

or favouritism.

KNEC, KASNEB, ICM , CSKManagement Consulting & Corporate Training

EAST AFRICASCHOOL MANAGEMENT

4th FLOORANSH PLAZA

ofS C H O O L O F E X C E L L E N C E

Offering;

www.easm.ac.ke . [email protected] Tel: 0729 817954 020 222 0973

8. Private criticism

No employee is perfect. Every

employee needs constructive

feedback. Every employee deserves

constructive feedback. Good

bosses give that feedback.

Great bosses always do it in private.

9. Public praise

Every employee--even a relatively

poor performer--does something

well. Every employee deserves

praise and appreciation. It’s easy

to recognize some of your best

employees, because they’re

consistently doing awesome

things. (Maybe consistent

recognition is a reason they’re your

best employees? Something to

think about.)

You might have to work hard

to find reasons to recognize an

employee who simply meets standards,

but that’s OK: A few words of recognition-

-especially public recognition--may be the

nudge an average performer needs to start

becoming a great performer.

10. A chance for a meaningful future

Every job should have the potential to lead

to greater things. Exceptional bosses take

the time to develop employees for the jobs

they someday hope to land, even if the jobs

are with another company.

How can you know what an employee

hopes to do someday? Ask.

Employees will only care about your

business after you first show you care

about them. One of the best ways to do

so is to show that while you certainly have

hopes for your company’s future, you also

have hopes for your employees’ futures.


PICTORIAL

Cancer walk

Corporate Social Responsibility

Cancer campaigh Walk and Prayer Ring at Kenyatta National Hospital grounds on Sunday, 15 February 2015 to mark World Cancer Day.

Healt

h pilla

r Ed

ucat

ion an

d Env

ironm

enta

l pilla

r

One of the two tanks under construction at Kamariru Primary School, Tunyai in Meru County to provide safe drinking water and a condusive learning environment to the pupils of Tunyai Children Centre.

Water tank


MarketingCEO’s forum organised by Guru Professionals, PwaniUnivesity in Kilifi County on Saturday, 21 March 2015.

East Africa Business Forum organised by Accounting Students Association, University of Nairobi, Lower Kabete Campus held on Thursday, 12 March 2015 and Friday, 13 March 2015 in Nairobi County.

Presenting the highlights of the revised syllabuses on Saturday, 14 March 2015 in Radio Jambo in Nairobi County.

Stakeholders forums held on Friday, 30 January 2015 and Friday, 20 February 2015 at the Hilton Hotel, Nairobi to discuss the syllabuses review.


I. HOW TO CREATE A STUDENT ACCOUNT ON THE KASNEB STUDENT PORTAL

All students are required to open a

student account on the KASNEB website.

To open the account, follow the steps

below:

1. Click on the student login link then

choose the student icon or proceed

to click the student icon if you use the

direct link (http://online.kasneb.or.ke )

to the student portal.

2. Click on create account and select

whether you have a Student

Registration Number or not and

proceed to provide names, preferred

email address and a strong password

(which will be used for future access to

self information) and click save.

3. Provide the email address and

password used when creating the

account and click unlock to login in.

4. Select the “Registration Details” tab.

5. Access the “Course Choice” tab.

6. Select the examination from the

dropdown box, click on the “Yes”

checkbox and provide the registration

number without the prefix (e.g.

if your registration number is

NAC/68148, provide 68148 as

the registration number) and

click save.

Benefits

You will be able to:

• Download authority to sit for

examination/timetable

• Result summary.

Once the website upgrade is finalised in

the near future, you will be able to:

• Edit your contact address

• Check payment status

• Book for examinations.

Students are hereby advised to ensure they have active student accounts given that moving forward, timetables, result summaries and other individualised communication will only be channelled through the student accounts.

UPDATES

II. CALLING ON KASNEB STUDENTS WITH DISABILITIES

We are in the process of enhancing disability

mainstreaming at KASNEB. This is in an effort to

improve our service delivery to our students with

disabilities.

In this connection, KASNEB wishes to invite any

student with a disability to forward the following

details to KASNEB:

• Full name and National Identification/

Passport Number.

• KASNEB registration number.

• Current email, telephone number and

postal address.

• Nature of disability.

Whether registered with the National Council

for Persons with Disability and if so, details of

the registration.

Students with disability are encouraged to

register with the Council. Further details on

the Council are available on the Council’s

website www.ncpwd.go.ke


III. KASNEB STUDENT FEE COLLECTION ACCOUNTS WITH BANKS

Students, trainers, parents/guardians/sponsors, employers and other stakeholders are

hereby informed that KASNEB has opened student fee collection accounts with the

following banks:

a) National Bank of Kenya Ltd. (NBK)

Account Number: 01001031572601

b) Equity Bank Ltd.


c) Kenya Post Office Savings Bank (Postbank)


d) Co-operative Bank of Kenya Ltd.


The bank accounts are already operational.

Students are required to complete the appropriate KASNEB forms and relevant fee

deposit slips (except for Postbank which does not use deposit slips). The students will

be issued with one copy of the deposit slip and a computer generated slip for their

records. However, for Postbank only a computer generated receipt will be issued.

Upon payment of the requisite fees to the bank, a cash deposit receipt will be issued

to the payee. The completed KASNEB forms will be left with the bank for onward

transmission to KASNEB together with one copy of the deposit slip.

Students are advised that payment of fees at KASNEB offices will soon be phased

out and therefore they should utilise the available channels through the banks.

Note: Students should ensure that all documents requiring certification, such as copies

of academic and professional certificates and identity card/passport are certified before

being handed over to the bank.

UPDATES

IV. BANNING OF MOBILE PHONES FROM THE EXAMINATIONS ROOM

All students are hereby informed

that mobile phones were banned

from the examinations room

with effect from the November/

December 2014 sitting.

Students are further required to

note that disciplinary action will be

taken against any student found

in possession of a phone in the

examination room, regardless of

whether the phone was in use or

not at the time of its detection.

V. KASNEB CONTACTS

+254 - (020) 4923000

0722201214

0734600624

[email protected]

www.kasneb.or.ke

KASNEBOfficial

KASNEBOfficial

EXAMINATION DATES

EXAMINATIONS NOTICE - NOVEMBER 2015 EXAMINATIONS

Students of KASNEB, parents, sponsors, guardians, training institutions and other stakeholders are hereby notified of the following important dates and information.

1. Examination dates for the November 2015 examinations are as follows:

(a) ATC, ICTT, IST and CMT Levels I and II - Tuesday, 17 November 2015, Wednesday, 18 November 2015 and Thursday, 19 November 2015

(b) Accounting Technicians Diploma (ATD), Diploma in Information Communication Technology (DICT) and Diploma in Credit Management (DCM) Levels I and II only

Tuesday, 17 November 2015 and Wednesday, 18 November 2015 (c) CPA, CS, CICT ,CIFA and CCP Part I - Friday, 20 November 2015, Monday, 23 November 2015 and Tuesday, 24 November 2015

(d) CPA, CS, CICT ,CIFA and CCP Parts II and III - Wednesday, 25 November 2015, Thursday, 26 November 2015 and Friday, 27 November 2015 (e) Foreign Accountancy Qualifications (FAQ) - Wednesday, 25 November 2015 and Thursday, 26 November 2015

(f) Foreign Secretaries Qualifications (FSQ) - Tuesday, 24 November 2015 and Wednesday, 25 November 2015

(g) Kenya Institute of Supplies Management - Associate in Procurement and Supply of Kenya (APS-K) examination - Levels I and II Tuesday, 17 November 2015, Wednesday, 18 November 2015 and Thursday, 19 November 2015

(h) Kenya Institute of Supplies Management - Certified Procurement and Supply Chain Professional of Kenya (CPSP-K) - Part I examination only

Friday, 20 November 2015, Monday, 23 November 2015 and Tuesday, 24 November 2015

2. Closing dates for examinations entries for the November 2015 examinations are as shown below: Normal entry: Friday, 14 August 2015 Late entry: Wednesday, 30 September 2015

3. Examination brochures and forms are obtainable on request, free of charge: (a) In Kenya either in person at the offices of KASNEB or through the post. The examination brochures and forms are also available at any branch of the Kenya

National Library Service (KNLS) countrywide or training institutions. (b) Outside Kenya at the following offices in Eastern and Central Africa:

(i) In Uganda at DMK Associates, Sabina Baiga House, Bombo Road, 2nd floor suite 05 - Kampala, Makerere University Business School (MUBS) - Nakawa, Kampala International University - Kansanga, Busoga University - Iganga, and Bugema University, Kampala Campus - Bombo Road.

(ii) In Rwanda at Kigali Institute of Management - Rimera, University of Rwanda, College of Business and Economics, Gikondo - Kigali, Institut Polytechnique De Byumba, University of Kigali, Kacyiru Campus and Kigali Independent University (ULK).

(iii) In Burundi at the East Africa Centre for Professional Studies (EACPS), Rohero 2, Avenue Mosso next to Solecs Micro Finance, Bujumbura and Kim-PAC, Rohero 2, Avenue Mosso, No.28 - Bujumbura.

(iv) In Cameroon at Maaron Business School, 10 Rue, Joffre, Akwa - Douala and Fomic Business School, Buea, Cameroon. (v) In South Sudan, at the University of Juba.

(c) Forms can also be downloaded from the website; www.kasneb.or.ke

4. Method of payment of fees Attention of students is drawn to the “Guide to the November 2015 examinations” regarding secure methods of paying fees to KASNEB.

(a) In Kenya. Students are advised to pay through any branch of the National Bank of Kenya Ltd. (NBK), Equity Bank, Kenya Post Office Savings Bank (Postbank) or Co-operative Bank of Kenya. Students may also make payment in person at KASNEB offices in cash, by cheques/bankers cheques/drafts drawn in the name of KASNEB or through the post.

(b) Outside Kenya. Students are advised to pay the applicable fees in dollars at any branch of KCB in their countries to KASNEB KCB collection account number 1123096465, domiciled at Capital Hill Branch, Nairobi. Thereafter, students should submit their documents to KASNEB together with a copy of the bank deposit slip. Students are individually and personally responsible for ensuring that fees are paid to KASNEB. Consequently, students who pay fees through third parties should ensure that such parties are honest and reliable and will therefore remit the fees to KASNEB without delay. Bankers Cheques/Drafts should be drawn payable to KASNEB and Inter-State Money Orders should be payable at City Square Post Office - Nairobi. Examination entry/annual registration renewal forms and remittances which are sent by post should be posted at least one week before the closing date to ensure that they are received in time.

5. All students who sat for the May 2015 examinations should ENTER for the November 2015 examinations immediately upon confirmation of their May 2015 examination results.

6. All continuing students of KASNEB are required to update their annual registration renewal position by 1 July of each year. New students are required to note that the registration renewal fee is due on 1 July following the examinations sitting to which they are first eligible to enter.

7. The late registration closing date for applicants wishing to be registered as students in order to be eligible to enter for the November 2015 examinations is Friday, 14 August 2015.


Introduction

The KASNEB policy on review of examination syllabuses provides for a mid-term review of the syllabuses after two and a half years and a major review after five years. A major review of

the syllabuses usually involves significant changes in structure and content of the syllabuses. On the other hand, the focus of a mid-term review is usually on content and not structure of the examinations.

The last major review of the examination syllabuses was undertaken in the years 2008 and 2009 and the revised syllabuses administered for the first time in the November/December 2009 sitting. A mid-term review of the examination syllabuses was undertaken in the year 2012 and the revised syllabuses administered for the first time in the November/December 2012 sitting.

The current major review of the syllabuses commenced in the year 2013 and involved a number of activities, including the following:

(a) Benchmarking visits were undertaken to various reputable professional examinations bodies in various parts of the globe.

(b) A consultant was engaged to collect and analyse views from a wide range of stakeholders both in the public and private sectors. The consultant was also required to engage with employers and undertake a job analysis to identify any gaps between the syllabuses and the market demands.

(c) A syllabuses review technical task force comprising subject experts and practitioners from various fields in both public and private sectors was constituted to develop the draft syllabuses.

(d) Two major stakeholders workshops were held where comments were received on the draft syllabuses and considered as appropriate.

(e) A forum was held with relevant professional institutes for the validation of the syllabuses.

(f ) The syllabuses were approved by the Board of KASNEB.

The revised syllabuses will take effect from 1 July 2015 and be examined for the first time from the November/December 2015 sitting.

1. Examinations under the revised syllabuses

The following examinations will be administered under the

revised syllabuses:

1.1 Professional Examinations(i) Certified Public Accountants (CPA)(ii) Certified Secretaries (CS)

(iii) Certified Information Communication Technologists (CICT)

(iv) Certified Investment and Financial Analysts (CIFA)(v) Certified Credit Professionals (CCP)

Note:

(a) The Certified Public Secretaries (CPS) examination has

been renamed Certified Secretaries (CS) examination.

(b) The Certified Securities and Investment Analysts (CSIA)

examination has been renamed Certified Investment

and Financial Analysts (CIFA) examination.

1.2 Diploma Examinations

(i) Accounting Technicians Diploma (ATD)(ii) Diploma in Information Communication

Technology (DICT)(iii) Diploma in Credit Management (DCM)

2. Examinations to be phased out

The following technician examinations will be phased out after

the November/December 2015 examination sitting:

(a) Accounting Technicians Certificate (ATC)(b) Information Communication Technology Technicians

(ICTT)(c) Credit Management Technicians (CMT)(d) Investment and Securities Technicians (IST)

3. Review of policies, rules and regulations

The major review of the syllabuses also involved a review of

the policies, rules and regulations in order to ensure effective

implementation of the revised syllabuses and enhance customer

satisfaction. The changes in policies, rules and regulations can be

accessed on the KASNEB website www.kasneb.or.ke.

4. Structure of examinations under the revised syllabuses

The revised structure of the examinations and transition

arrangements are presented below. Advance copies of the

syllabuses featuring the learning outcomes and detailed content

have been dispatched to the training institutions, both accredited

and those in the process of accreditation. The syllabuses booklets

will also be available to all registered students as at 30 June 2015

free of charge.

2015 KASNEB SYLLABUSESSyllabus

May 2015

CPACertified Public Accountant

KASNEB

KASNEBKASNEB Towers

Hospital Road, Upper Hill

P.O. Box 41362 - 00100 Nairobi - Kenya

Tel: 254(020) 4923000

Cellphone: 0722-201214/0734-600624

Fax: 254(020) 2712915


Website: www.kasneb.or.ke

Providing globally competitive professionals

KASNEB is ISO 9001:2008 certified


Syllabus

May 2015

CSCertified Secretary

KASNEB

KASNEB

KASNEB Towers



Tel: 254(020) 4923000

Cellphone: 0722-201214/0734-600624

Fax: 254(020) 2712915






Revised Syllabus

May 2015

CICTCertified Information Communication Technologist

KASNEB

KASNEB

KASNEB Towers



Tel: 254(020) 2712640 / 2712828

Cellphone: 0722-201214/0734-600624

Fax: 254(020) 2712915






Syllabus May 2015

CIFACertified Investment & Financial Analyst

KASNEB

KASNEBKASNEB Towers



Tel: 254(020) 4923000

Cellphone: 0722-201214/0734-600624

Fax: 254(020) 2712915






Revised Syllabus May 2015

CCPCertified Credit Professional

KASNEB

KASNEBKASNEB Towers



Tel: 254(020) 4923000

Cellphone: 0722-201214/0734-600624

Fax: 254(020) 2712915






Syllabus May 2015

ATAccounting Technician

KASNEB

KASNEBKASNEB Towers Hospital Road, Upper Hill


Tel: 254(020) 4923000

Cellphone: 0722-201214/0734-600624

Fax: 254(020) 2712915






KASNEB

KASNEBKASNEB Towers Hospital Road, Upper Hill

P.O. Box 41362 - 00100 Nairobi - KenyaTel: 254(020) 4923000

Cellphone: 0722-201214/0734-600624Fax: 254(020) 2712915E-mail: [email protected]





Governance & Management

Diploma inSyllabus

May 2015

KASNEB

KASNEBKASNEB Towers

Hospital Road, Upper HillP.O. Box 41362 - 00100 Nairobi - Kenya

Tel: 254(020) 4923000Cellphone: 0722-201214/0734-600624

Fax: 254(020) 2712915E-mail: [email protected]





Information Communication Technology

Diploma inSyllabus

May 2015

KASNEB

KASNEBKASNEB Towers



Tel: 254(020) 4923000

Cellphone: 0722-201214/0734-600624

Fax: 254(020) 2712915






Credit ManagementDiploma in

REVISED


REVISED 2015 KASNEB SYLLABUSES

CPAPaper No: Paper

Section 1CA11 Financial Accounting

CA12 Commercial Law

CA13 Entrepreneurship and Communication

Section 2CA21 Economics

CA22 Management Accounting

CA23 Public Finance and Taxation

Section 3CA31 Company Law

CA32 Financial Management

CA33 Financial Reporting

Section 4CA41 Auditing and Assurance

CA42 Management Information Systems

CA43

Quantitative Analysis

Section 5CA51 Strategy,

Governance and Ethics

CA52 Advanced Management Accounting

CA53 Advanced Financial Management

Section 6CA61 Advanced Public Finance

and TaxationCA62 Advanced Auditing and

AssuranceCA63 Advanced Financial

Reporting

CSPaper No: Paper

Section 1CS11 Organisational Behaviour

CS12 Commercial Law

CS13 Business Communication

Section 2CS21 Economics

CS22 Principles of Accounting

CS23 Public Finance and Taxation

Section 3CS31 Company Law

CS32 Financial Management

CS33 Principles and Practice of Management

Section 4CS41 Corporate Secretarial

PracticeCS42 Management

Information SystemsCS43 Law and Procedure of

Meetings

Section 5CS51 Human Resource

ManagementCS52 Financial Markets Law

CS53 Governance and Ethics

Section 6CS61 Strategic Management

CS62 Public Policy and Administration

CS63 Governance and Secretarial Audit

CICTPaper No: Paper

Section 1CT11 Introduction to

ComputingCT12 Computer Applications

- PracticalCT13 Entrepreneurship

and CommunicationSection 2CT21 Operating Systems -

PracticalCT22 Principles of

AccountingCT23 Computer Support

and Maintenance

Section 3CT31 Database Systems

CT32 Systems Analysis and Design

CT33 Structured Programming

Section 4CT41 Object Oriented

ProgrammingCT42 Web design and

e-CommerceCT43 Data Communication

and Computer Networks (Practical)

Section 5CT51 Strategy,


CT52 Software Engineering

CT53 Mobile Application Development

Section 6CT61 Systems Security

CT62 Information Systems Project Management

CT63 Research Methods

ICT ProjectCICT candidates are required to undertake an ICT project after completing the above 18 papers. The project must commence within 12 months after completing the papers.

CIFAPaper No: Paper

Section 1CI11 Financial Accounting

CI12 Financial Mathematics

CI13 Entrepreneurship and Communication

Section 2CI21 Economics

CI22 Financial Institutions and Markets

CI23 Public Finance and Taxation

Section 3CI31 Regulation of Financial

MarketsCI32 Corporate Finance

CI33 Financial Statements Analysis

Section 4CI41 Equity Investments

AnalysisCI42 Portfolio Management

CI43 Quantitative Analysis

Section 5CI51 Strategy,


CI52 Fixed Income Investments Analysis

CI53 Alternative Investments Analysis

Section 6CI61 Advanced Portfolio

ManagementCI62 International Finance

CI63 Derivatives Analysis

CCPPaper No: Paper

Section 1CP11 Credit Management

CP12 Commercial Law

CP13 Entrepreneurship and Communication

Section 2CP21 Economics

CP22 Principles of Accounting

CP23 Public Finance and Taxation

Section 3CP31 Company Law

CP32 Financial Management

CP33 Marketing and Public Relations

Section 4CP41 Law Governing Credit

PracticeCP42 Management

Information SystemsCP43 Quantitative

Analysis

Section 5CP51 Strategy,


CP52 Banking Law and Practice

CP53 Credit Management in the Financial Sector

Section 6CP61 Debt Recovery

CP62 Corporate Lending

CP63 Credit Practice

I. REVISED STRUCTURES OF PROFESSIONAL AND DIPLOMA EXAMINATION SYLLABUSES

(a) Professional Examinations


I. REVISED STRUCTURES OF PROFESSIONAL AND DIPLOMA EXAMINATION SYLLABUSES

REVISED 2015 KASNEB SYLLABUSESAccounting Technicians Diploma (ATD)Paper No: Paper

LEVEL I

AD11 Introduction to Financial Accounting

AD12 Commercial Law

AD13 Entrepreneurship and Communication

AD14 Information Communication Technology

LEVEL II

AD21 Financial Accounting

AD22 Principles of Management

AD23 Business Mathematics and Statistics

AD24 Fundamentals of Finance

LEVEL III

AD31 Principles of Economics

AD32 Fundamentals of Management Accounting

AD33 Principles of Public Finance and Taxation

AD34 Auditing

Diploma in Information Communication Technology (DICT)Paper No: Paper

LEVEL I

TD11 Introduction to Computing

TD12 Computer Mathematics

TD13 Entrepreneurship and Communication

TD14 Computer Applications Practical I

LEVEL II

TD21 Computer Networking

TD22 Internet Skills

TD23 Computer Support and Maintenance

TD24 Programming Concepts

LEVEL III

TD31 Principles of Web Development

TD32 Foundations of Accounting

TD33 Information Systems Project Skills

TD34 Computer Applications Practical II

Diploma in Credit Management (DCM)Paper No: Paper

LEVEL I

CD11 Fundamentals of Credit Management

CD12 Commercial Law

CD13 Entrepreneurship and Communication

CD14 Information Communication Technology

LEVEL II

CD21 Credit Management

CD22 Principles of Management

CD23 Business Mathematics and Statistics

CD24 Law Governing Credit Practice

LEVEL III

CD31 Marketing and Customer Relations

CD32 Foundations of Accounting

CD33 Principles of Public Finance and Taxation

CD34 Practice of Credit Management

NB: Common papers in bold

II. TRANSITION ARRANGEMENTS FOR THE REVISED EXAMINATION SYLLABUSES Transition arrangements are usually made to ensure a smooth roll over

from the old syllabuses to the new syllabuses. The current transition

arrangements address the change over to the revised syllabuses with

effect from 1 July 2015. These arrangements have addressed the

following factors, among others:

• Unexpiredcreditretentionsasat30June2015.

• Exemptionsgranted forpapers insectionsnotsatasat30June

2015.

• Progression forcandidatesofexaminationswhicharedue tobe

phased out.

• Progressionforcandidateswhere levels,partsandsectionshave

changed in terms of composition of papers.

• Progression for registered candidates who have not sat any

examination as at 30 June 2015.

• Registrationofcandidatesforexaminationsafter30June2015.

Specific transition provisions

The transition provisions from the current syllabuses to the revised

syllabuses are as follows.

1. CPA, CPS, CICT, CSIA and CCP students

(a) All students for the above listed examinations will convert

to the revised examination syllabuses commencing 1 July

2015 in the various parts and sections that they will have

progressed to in the current syllabuses.

(b) Exemptions:

(i) Where a student had been granted an exemption in a

particular paper, the exemption will be retained. This

will include papers where the titles may have changed

but the substantive content has remained the same,

such as Management Accounting (previously Cost

Accounting) in CPA Section 2.

(ii) However, where a student had been granted

exemption in a paper which, under the revised

syllabuses, has been moved to a section which the

student will have already completed as at the May

2015 sitting, the exemption fee paid for the paper

concerned will be credited to the student’s account

at KASNEB.

(iii) Exemptions granted for whole sections or parts

under the current syllabuses shall be retained under

the revised syllabuses.

(c) Credit retentions for students who will not have

completed their respective sections after the May 2015

sitting will be retained provided that the paper(s)

with credit retentions have remained in the same

section(s) under the revised syllabuses.

2. ATC, ICTT, IST and CMT students

The four technician examinations namely ATC, ICTT, IST and CMT

will be phased out after the November/December 2015 sitting.

A parallel examination administration system will be adopted for

the technician examinations during the November/December

2015 sitting with a view to phasing out the examinations after the

November/December 2015 sitting.


Under the parallel system, the technician examinations will be

administered together with the diploma examinations namely ATD,

DICT and DCM in the November/December 2015 sitting.

The transition arrangements will work out as follows:

1. Students currently in ATC/ICTT/CMT Level I who sit and pass the

May 2015 sitting

(a) The students will be required to choose either ATC/ICTT/

CMT Level II as applicable, or Level II of the respective

Diploma in the November/December 2015 sitting.

(b) Students who choose the ATC/ICTT/CMT Level II and pass

during the November/December 2015 sitting will graduate

under the respective examination passed. Those who do

not pass will be transferred to Level II of the respective

Diploma with effect from 1 January 2016.

(c) Students who choose the respective Diploma Level II and

pass the November/December 2015 sitting will proceed to

Diploma Level III from 1 January 2016. Those who fail will

repeat the respective Diploma Level II from 1 January 2016.

2. Students currently in ATC/ICTT/CMT Level I who sit but do not pass

the May 2015 sitting

(a) The students will be required to resit the papers not

passed in ATC/ICTT/CMT Level I in the November/

December 2015 sitting.

(b) Students who pass the ATC/ICTT/CMT Level I in the

November/December 2015 sitting will proceed to the

respective Diploma Level II from 1 January 2016. Those

who do not pass will be transferred to Level I of the

respective Diploma with effect from 1 January 2016.

3. Registered students in ATC/ICTT/CMT Level I who have not booked

the May 2015 sitting (mostly new students)

(a) The students will be allowed to book for either ATC/ICTT/

CMT Level I as registered, or the respective Diploma Level I

in the November/December 2015 sitting.

(b) Students who pass the ATC/ICTT/CMT Level I in the

November/December 2015 sitting will proceed to the

respective Diploma Level II. The same will apply to those

who sit and pass the Diploma Level I.

(c) Students who fail the ATC/ICTT/CMT Level I or Diploma

Level I in the November/December 2015 sitting will repeat

the Diploma Level I with effect from 1 January 2016.

4. Students currently in ATC/ICTT/CMT Level II who sit and pass the

May 2015 sitting

The students will graduate.

5. Students currently in ATC/ICTT/CMT Level II who sit but do

not pass the May 2015 sitting

(a) The students will be required to resit the papers not passed in ATC/

ICTT/CMT Level II in the November/December 2015 sitting.

(b) Students who pass the ATC/ICTT/CMT Level II in the November/

December 2015 sitting will graduate. Those who do not pass will

be transferred to Level II of the respective Diploma with effect from

1 January 2016.

6. IST students

(a) Students who pass Level I of the IST examination during the May

2015 sitting will proceed to Level II of the examination and be

eligible to sit for that Level during the November/December 2015

sitting.

(b) Students who do not pass Level I of the IST examination during the

May 2015 sitting will be expected to resit the papers not passed in

the same level during the November/December 2015 sitting.

(c) Students who pass Level II of the examination either during the

May 2015 sitting or the November/December 2015 sitting will be

allowed to graduate in the respective sitting.

(d) Students who do not pass either Level I or Level II of the IST

examination in the November/December 2015 sitting will be

required to transit to either the ATD or DCM in the respective levels.

Both graduates of the Technician and Diploma examinations will be

eligible to pursue the relevant professional programmes of KASNEB.

3. Other transition provisions

(a) Students who are eligible to convert to the Diploma programmes

(ATD/DICT and DCM) will be allowed to do so and book the

November/December 2015 examinations up to 15 September

2015 by paying the normal examination entry fees.

(b) All credit retentions for ATC, ICTT, IST and CMT will expire after the November/December 2015 sitting.


III. CHANGES IN POLICIES, RULES AND REGULATIONS UNDER THE REVISED EXAMINATION SYLLABUSES

The following changes in policies, rules and regulations have been introduced as part of the major review of examination syllabuses. The changes

are aimed at, among other objectives, ensuring effective implementation of the revised examination syllabuses, enhancing customer service,

enhancing the recognition of KASNEB qualifications regionally and globally and continuously realigning the qualifications with market trends

and demands.

One of the major changes introduced as part of the major review of the syllabuses is the introduction of diploma qualifications to replace the

current technician qualifications which will be phased out commencing from 1 January 2016.


The changes in policies, rules and regulations are summarised in the table below. Unless otherwise specified, the changes take effect from 1 July 2015.

Policy/rule/regulation Current provision New provisionMinimum entry requirements for diploma programmes

Not applicable The minimum entry requirement for the diploma programmes will be KCSE mean grade C- or equivalent.

Deadlines for late registration and examination entry

Late registration deadline: •31DecemberfortheMay/Junesitting.•30JunefortheNovember/Decembersitting.

Late examination entry deadline:• 15 March for the May/June sitting.• 15 September for the November/December

sitting.

The deadline for late registration has been extended to:• 15FebruaryfortheMay/Junesitting.• 15AugustfortheNovember/Decembersitting.

The deadline for late examination entry has been extended to:• 31MarchfortheMay/Junesitting.• 30SeptemberfortheNovember/Decembersitting.

Effective date for payment of annual registration renewal fee

This fee is payable on 1 July following the date of registration

The annual registration renewal fee shall become due on 1 July following the first eligible examination sitting and annually thereafter. For instance, a student who registers by 31 May 2015 will be eligible to enter examinations from the November/December 2015 sitting. The first renewal will therefore be due on 1 July 2016

Exemptions for diploma holders wishing to pursue KASNEB professional programmes

Exemptions are granted to diploma holders from various institutions of higher learning and nation-al examination bodies on paper by paper basis

Exemptions will be granted on paper by paper basis to holders of diplomas from KNEC and KIM. For other diploma programmes, exemptions will be considered subject to evaluation of content of the respective diploma programmes as submitted to KASNEB

Law and taxation papers for foreign candidates based outside Kenya

All foreign candidates based outside Kenya are required to sit for law and taxation papers broadly based on Kenyan law

Localised papers in law and taxation will be set for students in Rwanda, Cameroon and other countries. The change in policy will take effect from 1 July 2016

Code of Conduct and Ethics for students

There are various rules and regulations governing the conduct of students. There is no Code of Conduct and Ethics

A Code of Conduct and Ethics will be introduced for new and continuing students. The Code will be distributed to all students. All students will be required to commit themselves and abide by the Code

Practical experience requirement There is no system in place to enable candidates log in their practical experience acquired in the course of their studies

A practical experience log will be issued to students at the point of registration. The roll out of the log will start with the CPA students. It will thereafter be applicable to other students pursuing other KASNEB professional programmes. The effective date for implementing the practical experience log is 1 July 2016

Past papers Students are allowed to collect their past papers after 24 hours of sitting the paper. Online access is not available

Past papers will be uploaded on the KASNEB website for controlled access by students whose annual registration renewal status is up to date and accredited training institutions

Undertaking of the ICT Project in the CICT examination

The duration within which the project must be started after the student completes CICT Part III papers is not specified

A student is required to restart a project afresh and pay the full fees if he/she does not pass during the final presentation

Students will be required to commence the project within twelve (12) months of complet-ing CICT Part III

Students who commence the project after the one year period will be required to pay late project fee of 50%

Where a student presents a proposal which is accepted by KASNEB, but which is not successfully defended during the first examination sitting, the student may be allowed upon request to improve on the proposal and pay 50% of the applicable fee, provided the project is presented during the next immediate examination sitting. Otherwise the student will be required to pay the full project fee

Students who register but do not book for any examination or continuing students who do not book for any examination within three years of registration

The students’ registration numbers are retained in the system and they continue accumulating annual registration renewal arrears

The registration numbers for the students will be automatically deactivated after the three years. The deactivated registration numbers will be reactivated upon payment of a reactivation fee of Sh. 6,000 and the renewal arrears for the last three years before the registration number was reactivated

KASNEB graduates who wish to register for other KASNEB programmes

The KASNEB graduates wishing to pursue other KASNEB programmes are required to resubmit academic certificates, passport photos and other documents prior to registration

Such graduates wishing to pursue other KASNEB programmes will only be required to complete the registration form, attach a copy of identity card/passport, two recent passport photos and pay the requisite registration fee

Security checks on candidates entering the examinations room

Security checks have not been fully effected Security checks will be conducted as part of preventive and precautionary measures for candidates entering the examinations room



REVISED 2015 KASNEB SYLLABUSESIV. RETENTION OF CREDITS AND EXEMPTIONS FROM THE CURRENT SYLLABUSES TO THE

REVISED SYLLABUSES

1. CERTIFIED PUBLIC ACCOUNTANTS (CPA) EXAMINATIONCURRENT SYLLABUS RETENTION OF

CREDITRETENTION OF EXEMPTION WHERE GRANTED AS INDIVIDUAL PAPER REVISED SYLLABUS

SECTION 1 SECTION 1

CA11: Financial Accounting Retained under CA11 Retained under CA11 CA11: Financial Accounting

CA12: Introduction to Law Retained under CA12 Retained under CA12 CA12: Commercial Law

CA13: Entrepreneurship and Communication Retained under CA13 Retained under CA13 CA13: Entrepreneurship and Communication

SECTION 2 SECTION 2

CA21: Economics Retained under CA21 Retain under CA21 CA21: Economics

CA22: Cost Accounting Retained under CA 22 Retained under CA22 CA22: Management Accounting

CA23: Auditing and Assurance Not retained Retained under CA41 CA23: Public Finance and Taxation

SECTION 3 SECTION 3

CA31: Management Information Systems Not retained Retained under CA42 provided Section 4 not yet passed CA31: Company Law

CA32: Financial Management Retained under CA32 Retained under CA32 CA32: Financial Management

CA33: Financial Reporting Retained under CA33 No exemptions are granted in paper CA33: Financial Reporting

SECTION 4 SECTION 4

CA41: Taxation Not retained No exemptions are granted in paper CA41: .Auditing and Assurance

CA42: Company Law Not retained Retained under CA31 provided Section 3 not yet passed CA42: Management Information Systems

CA43: Quantitative Analysis Retained under CA 43 Retained under CA 43 CA43: Quantitative Analysis

SECTION 5 SECTION 5

CA51: Principles and Practice of Management Not retained Not retained CA51: Strategy, Governance and Ethics

CA52: Management Accounting Retained under CA52 No exemptions are granted in paper CA52: Advanced Management Accounting

CA53: Advanced Financial Management Retained under CA53 No exemptions are granted in paper CA53: Advanced Financial Management

SECTION 6 SECTION 6

CA61: Advanced Taxation Retained under CA61 No exemptions are granted in paper CA61: Advanced Public Finance and Taxation

CA62: Advanced Auditing and Assurance Retained under CA62 No exemptions are granted in paper CA62: Advanced Auditing and Assurance

CA63: Advanced Financial Reporting Retained under CA63 No exemptions are granted in paper CA63: Advanced Financial Reporting

2. CERTIFIED PUBLIC SECRETARIES (CPS) - REBRANDED AS CERTIFIED SECRETARIES (CS) EXAMINATIONCURRENT SYLLABUS (CPS) RETENTION OF CREDIT RETENTION OF EXEMPTION WHERE

GRANTED AS INDIVIDUAL PAPER REVISED SYLLABUS (CS)

SECTION 1 SECTION 1

CS11: Organisational Behaviour Retained under CS11 Retained under CS11 CS11: Organisational Behaviour

CS12: Introduction to Law Retained under CS12 Retained under CS12 CS12: Commercial Law

CS13: Communication and Report Writing Retained under CS13 Retained under CS13 CS13: Business Communication

SECTION 2 SECTION 2

CS21: Economics Retained under CS21 Retain under CS21 CS21: Economics

CS22: Financial Accounting Retained under CS 22 Retained under CS22 CS22: Principles of Accounting

CS23: Taxation Theory and Practice Retained under CS23 Retained under CS23 CS23: Public Finance and Taxation

SECTION 3 SECTION 3

CS31: Management Information Systems Not retained Retained under CS42 provided Section 4 not yet passed CS31: Company Law

CS32: Financial Management Retained under CS32 Retained under CS32 CS32: Financial Management

CS33: Company Secretarial Practice Not retained No exemptions are granted in paper CS33: Principles and Practice of Management


CURRENT SYLLABUS (CPS) RETENTION OF CREDIT RETENTION OF EXEMPTION WHERE GRANTED AS INDIVIDUAL PAPER REVISED SYLLABUS (CS)

SECTION 4 SECTION 4

CS41: Entrepreneurship Not retained Not retained CS41: Corporate Secretarial Practice

CS42: Company Law Not retained Retained under CS31 provided Section 3 not yet passed CS42: Management Information Systems

CS43: Meetings - Law and Procedure Retained under CS 43 No exemptions are granted in paper CS43: Law and Procedure of Meetings

SECTION 5 SECTION 5

CS51: Principles and Practice of Management Not retained Not retained CS51: Human Resource Management

CS52: Advanced Company Secretarial Practice Retained under CS52 No exemptions are granted in paper CS52: Financial Markets Law

CS53: Project Planning and Management Not retained Not retained CS53: Governance and Ethics

SECTION 6 SECTION 6

CS61: Strategic Management Retained under CS61 No exemptions are granted in paper CS61: Strategic Management

CS62: Strategic Human Resources Management Not retained No exemptions are granted in paper CS62: Public Policy and Administration

CS63: Corporate Governance and Ethics Not retained No exemptions are granted in paper CS63: Governance and Secretarial Audit

3. CERTIFIED INFORMATION COMMUNICATION TECHNOLOGISTS (CICT) EXAMINATIONCURRENT SYLLABUS RETENTION OF CREDIT RETENTION OF EXEMPTION WHERE

GRANTED AS INDIVIDUAL PAPER REVISED SYLLABUS

SECTION 1 SECTION 1

CT11: Introduction to Computing Retained under CT11 Retained under CT11 CT11: Introduction to Computing

CT12 (T) Computer Applications - Theory Not retained Not retained CT12: Computer Applications - Practical

CT12 (P): Computer Applications - Practical Retained under CT12 Retained under CT12 CT13: Entrepreneurship and Communication

CT 13: Entrepreneurship and Communication Retained under CT13 Retained under CT13

SECTION 2 SECTION 2

CT21 (T): Operating Systems - Theory Not retained Not retained CT21: Operating Systems - Practical

CT21 (P): Operating Systems - Practical Retained under CT 21 Retained under CT 21 CT22: Principles of Accounting

CT22: Financial Accounting Retained under CT 22 Retained under CT22 CT23: Computer Support and Maintenance

CT23: Computer Support and Maintenance Retained under CT23 Retained under CT23

SECTION 3 SECTION 3

CT31: Database systems Retained under CT 31 Retained under CT 31 CT31: Database systems

CT32: Structured programming Retained under CT33 Retained under CT33 CT32: Systems analysis and Design

CT33: Systems analysis and design Retained under CT32 Retained under CT32 CT33: Structured Programming

SECTION 4 SECTION 4

CT41: Object Oriented Programming Retained under CT41 Retained under CT41 CT41: Object Oriented ProgrammingCT42 (T): Data Communication and Computer Networks - Theory Not retained Not retained CT42: Web design and e-Commerce

CS42 (P): Data Communication and Computer Networks - Practical Retained under CT 43 No exemptions are granted in paper CT43: Data Communication and Computer Networks -

PracticalCT 43: Systems Security, Professional Values

and Ethics Not retained No exemptions are granted in paper

SECTION 5 SECTION 5

CT51: Principles and Practice of Management Not retained Not retained CT51: Strategy, Governance and Ethics

CT52: Software Engineering Retained under CT52 No exemptions are granted in paper CT52: Software Engineering

CT53: Project Planning and Management Not retained Retained under CT62 CT53: Mobile Application Development

SECTION 6 SECTION 6

CT61: Information Systems Management Not retained No exemptions are granted in paper CT61: Systems SecurityCT62: Web design, Internet programming and

e-commerce Not retained No exemptions are granted in paper CT62: Information Systems Project Management

CT63: Research Methods Retained under CT63 No exemptions are granted in paper CT63: Research Methods

Information Systems Project Not applicable Not applicable ICT Project



4. CERTIFIED SECURITIES AND INVESTMENT ANALYSTS (CSIA) - REBRANDED AS CERTIFIED INVESTMENT AND FINANCIAL ANALYSTS (CIFA) EXAMINATION

CURRENT SYLLABUS (CSIA) RETENTION OF CREDIT RETENTION OF EXEMPTION WHERE GRANTED AS INDIVIDUAL PAPER REVISED SYLLABUS (CIFA)

SECTION 1 SECTION 1

CI11: Financial Mathematics Retained under CI12 Retained under CI12 CI11: Financial Accounting

CI12: Financial Institutions and Markets Not retained Retained under CI22 provided Section 2 not yet passed CI12: Financial Mathematics

CI13: Entrepreneurship and Communication Retained under CI13 Retained under CI13 CI13: Entrepreneurship and Communication

SECTION 2 SECTION 2

CI21: Economics Retained under CI21 Retain under CI21 CI21: Economics

CI22: Financial Accounting Not retained Retained under CI11 provided Section 1 not yet passed CI22: Financial Institutions and Markets

CI23: Taxation Theory and Practice Retained under CI23 Retained under CI23 CI23: Public Finance and Taxation

SECTION 3 SECTION 3

CI31: Management Information Systems Not retained Retained under CI42 provided Section 4 not yet passed CI31: Regulation of Financial Markets

CI32: Financial Management Retained under CI32 Retained under CI32 CI32: Corporate Finance

CI33: Financial Statements Analysis Retained under CI33 Retained under CI33 CI33: Financial Statements Analysis

SECTION 4 SECTION 4CI41: Advanced Finance, Investment and

Equity Analysis Retained under CI41 No exemptions are granted in paper CI41: Equity Investments Analysis

CI42: Law and Regulations Governing Financial Markets Not retained No exemptions are granted in paper CI42: Portfolio Management

CI43: Quantitative Analysis Retained under CI43 Retained under CI43 CI43: Quantitative Analysis

SECTION 5 SECTION 5

CI51: Principles and Practice of Management Not retained Not retained CI51: Strategy, Governance and EthicsCI52: Valuation and Analysis of Fixed

IncomeSecurities Retained under CI52 No exemptions are granted in paper CI52: Fixed Income Investments Analysis

CI53: Asset Management Not retained No exemptions are granted in paper CI53: Alternative Investments Analysis

SECTION 6 SECTION 6

CI61: Portfolio Management Retained under CI61 No exemptions are granted in paper CI61: Advanced Portfolio Management

CI62: International Finance Retained under CI62 No exemptions are granted in paper CI62: International Finance

CI63: Valuation and Analysis of Derivatives Retained under CI63 No exemptions are granted in paper CI63: Derivatives Analysis

5. CERTIFIED CREDIT PROFESSIONALS (CCP) EXAMINATIONCURRENT SYLLABUS RETENTION OF CREDIT RETENTION OF EXEMPTION WHERE

GRANTED AS INDIVIDUAL PAPER REVISED SYLLABUS

SECTION 1 SECTION 1

CP11: Credit Management Retained under CP11 Retained under CP11 CP11: Credit Management

CP12: Introduction to Law Retained under CP12 Retained under CP12 CP12: Commercial Law

CP13: Entrepreneurship and Communication Retained under CP13 Retained under CP13 CP13: Entrepreneurship and Communication

SECTION 2 SECTION 2

CP21: Economics Retained under CP21 Retain under CP21 CP21: Economics

CP22: Financial Accounting Retained under CP22 Retained under CP22 CP22: Principles of Accounting

CP23: Taxation Theory and Practice Retained under CP23 Retained under CP23 CP23: Public Finance and Taxation

SECTION 3 SECTION 3

CP31: Management Information Systems Not retained Retained under CP42 provided Section 4 not yet passed CP31: Company Law

CP32: Financial Management Retained under CP32 Retained under CP32 CP32: Financial Management

CP33: Advanced Credit Management Not retained No exemptions are granted in paper CP33: Marketing and Public Relations

SECTION 4 SECTION 4

CP41: Marketing Not retained Retained under CP33 provided Section 3 not yet passed CP41: Law Governing Credit Practice

CP42: Company Law Not retained Retained under CP31 provided Section 3 not yet passed CP42: Management Information Systems

CP43: Quantitative Analysis Retained under CP43 Retained under CP43 CP43: Quantitative Analysis



CURRENT SYLLABUS RETENTION OF CREDIT RETENTION OF EXEMPTION WHERE GRANTED AS INDIVIDUAL PAPER REVISED SYLLABUS

SECTION 5 SECTION 5

CP51: Principles and Practice of Management Not retained Not retained CP51: Strategy, Governance and Ethics

CP52: Public Relations Not retained No exemptions are granted in paper CP52: Banking Law and Practice

CP53: Law Governing Credit Practice Not retained No exemptions are granted in paper CP53: Credit Management in the Financial Sector

SECTION 6 SECTION 6

CP61: Debt recovery Retained under CP61 No exemptions are granted in paper CP61: Debt recovery

CP62: Corporate lending Retained under CP62 No exemptions are granted in paper CP62: Corporate lending

CP63: Practice of Credit Management Retained under CP63 No exemptions are granted in paper CP63: Credit Practice

Enquiries and clarificationsAny enquiries or clarifications on the major syllabuses review may be forwarded to Isaac M. Njuguna (email: [email protected]); Christabel L. Osango (email: [email protected]) or Erasto M. Ng’ang’a (email: [email protected]).


KASNEB Newsline is one of the most widely read journals in Kenya. It is produced four times in a year. Over 50,000 copies are printed for each issue.

The Newsline is distributed free of charge within and outside Kenya through secondary schools, Kenya National Library Services branches, training institutions, universities, government ministries, Kenyan Embassies and High Commissions.

NewslineThe Professional Journal of KASNEB Issue No. 4 October - December 2013

KASNEB

KASNEB

Information Systems Security

INTERNAL AUDITITS ROLE IN STRATEGIC PLANNING

KASNEB The Professional Journal of KASNEB Issue No. 1 January - March 2014


TOPICS FEATURED INTERNAL AUDIT

REGIONAL ECONOMIC

INTEGRATION

INVESTOR COMPENSATION ROLE OF DIASPORA CREDIT RATING

KASNEB UPDATES EXAMINATIONS

FEEDBACK

KASNEB The Professional Journal of KASNEB Issue No. 2 April - June 2014


TOPICS FEATURED

ONLINE COLLABORATION

DEFERRED TAXCOMPUTER-

ASSISTED AUDIT TECHNIQUES

METHODOLOGIES IN TEACHING

TRADITIONAL VERSUS ONLINE

LIBRARIES

BALANCE OF PAYMENTS

KASNEB The Professional Journal of KASNEB Issue No. 3 July - September 2014


TOPICS FEATURED

ETHICS IN BUSINESS

BRANDINGENVIRONMENTAL

MANAGEMENT ACCOUNTING

MANAGING CHANGE

EXCHANGE RATE EXPOSURE AND MANAGEMENT

HIRING EMPLOYEES WITH AN ENTREPRENEURIAL

MINDSET

EXAMINATIONS FEEDBACK

KASNEB

The Professional Journal of KASNEB Issue No. 2 April - June 2014

KASNEB NEWSLINE

EDUCATIVE INFORMATIVE

ENTERTAINING

TOPICS FEATURED

ONLINE

COLLABORATIONDEFERRED TAX

COMPUTER-

ASSISTED AUDIT

TECHNIQUES

METHODOLOGIES

IN TEACHING

TRADITIONAL

VERSUS ONLINE

LIBRARIES

BALANCE OF

PAYMENTS

Contact the Marketing and Publications Section through: P.O. Box 41362 - 00100 Nairobi Tel: 254(020) 4923000, Cellphone: 0722-201214/0734-600624 E-mail: [email protected] or [email protected]

It pays to advertise in the

KASNEB NEWSLINE

The Newsline is also available on the KASNEB website.

Grow your business by advertising in the KASNEB Newsline. Call us, book for space and watch your institution or business grow.

1

KASNEB The Professional Journal of KASNEB Issue No. 4 October - December 2014


TOPICS FEATURED

ELECTRONIC RECORDS

MANAGEMENT

ACCOUNT RECEIVABLES

BALANCED SCORECARD

ENTERPRISE RESOURCE

MANAGEMENTCOMMUNICATION UPDATES

PRIZE WINNERS

ELECTRONIC RECORDS MANAGEMENT


1. REGISTRATION FEES

1.1 DIPLOMA EXAMINATIONS - ATD/DICT/DCM

Kenya Shillings

Foreign currency

Sh. US$ £Sterling

Registration fees 5,000 83 50

Annual registration renewal fees 1,500 25 15

Registration reactivation fees 6,000 100 60

Student identity card replacement fees 500 8 5

1.2 PROFESSIONAL EXAMINATIONS - CPS/CS/CICT/CIFA/CCP

Registration fees 5,000 83 50

Annual registration renewal fees 1,500 25 15

Registration reactivation fees 6,000 100 60

Student identity card replacement fees 500 8 5

1.3 HOLDERS OF FOREIGN ACCOUNTANCY QUALIFICATIONS/ SECRETARIES QUALIFICATIONS (FAQs/FSQs)

Enrolment fee 40,000 667 400

Examination fee per paper 20,000 333 200

Continuation fee per annum 15,000 250 150

2. EXAMINATION ENTRY FEES

2.1 DIPLOMA

2.1.1 ATD/DCM

Level I 3,500 58 35

Level II 4,000 67 40

Level III 4,500 75 45

*Single paper Level I 1,000 17 10

Level II 1,200 20 12

Level III 1,400 23 14

2.1.2 DICT

Level I 4,100 68 41

Level II 4,000 67 40

Level III 5,100 85 51

*Single paper Level I: Theory 1000 17 10

Level II: Theory 1,200 20 12

Level III: Theory 1,400 23 14

Level I: Practical 1,600 27 16

Level III: Practical 2,000 33 20

2.2 PROFESSIONAL EXAMINATIONS

2.2.1 CPA/CS/CIFA/CCP

Part I: Section 1 2,700 45 27

Section 2 2,700 45 27

Total for Part I 5,400 90 54

*Single paper 1,350 23 14

Kenya Shillings

Foreign currency

Sh. US$ £Sterling

Part II: Section 3 4,400 73 44

Section 4 4,400 73 44

Total for Part II 8,800 146 88


Part III: Section 5 6,600 110 66

Section 6 6,600 110 66

Total for Part III 13,200 220 132


2.2.2 CICT

Part I: Section 1 3,300 55 33

Section 2 3,300 55 33

Total for Part I 6,600 110 66

*Single paper (Theory) 1,350 23 14

*Single paper (Practical) 1,950 33 20

Part II: Section 3 4,400 73 44

Section 4 5,000 83 50

Total for Part II 9,400 156 94


*Single paper (Practical) 2,800 47 28

Part III: Section 5 6,600 110 66

Section 6 6,600 110 66

Total for Part III 13,200 220 132


ICT Project 7,500 125 75

3. EXEMPTIONS

3.1 DIPLOMA EXAMINATIONS

ATD/DICT/DCM

Level I: Per paper 1,300 22 13

Level II: Per paper 1,500 25 15

Level III: Per paper 1,700 28 17

3.2 PROFESSIONAL EXAMINATIONS

CPA/CS/CICT/CIFA/CCP

Part I per paper 1,800 30 18

Part II per paper 2,700 45 27

Part III per paper 3,800 63 38

4. SALE OF PUBLICATIONS

4.1 SYLLABUSES

Cost per copy 500 8 5

4.2 PAST QUESTION PAPERS

A set for each section or level 150 3 2

It is hereby notified for general information to all students of KASNEB, parents, sponsors, training institutions, members of the public and other interested parties that the following schedule of examination fees and related charges shall be applicable under the revised examination syllabuses:

EXAMINATION FEES AND RELATED CHARGES: EFFECTIVE FROM 1 JULY 2015

The fee structure for the Technician examinations remains the same. The technician examinations will be phased out after the November 2015 examinations

KENYA INSTITUTE OF SUPPLIES MANAGEMENTin partnership with KASNEB

CERTIFIED PROCUREMENT AND SUPPLY PROFESSIONAL OF KENYA (CPSP-K) EXAMINATION ASSOCIATE IN PROCUREMENT AND SUPPLY OF KENYA (APS-K) EXAMINATION

Kenya Institute of Supplies Management, Nation Center, Tower B,

12th Floor, Kimathi Street, P. O. Box 30400 – 00100 NAIROBI.

Tel: +254 733333226, +254721244828, +254 0717 004842 Email: [email protected] Website: www.kism.or.ke

KASNEB Towers, Hospital Road, Upper Hill, P.O. Box 41362 – 00100 Nairobi, Kenya Tel: +254(020) 4923000 Cellphone: 0734 600624/0722 201214 Fax: +254(020) 2712915 Email: [email protected] Website: www.kasneb.or.ke

An updated list of training institutions for the APS-K and CPSP-K is available on KISM website www.kism.or.ke

The CPSP-K and APS-K national examinations are established as the National Examinations for certification of procurement and supply chain management professionals in Kenya under sections 5 and 13 of the Supplies Practitioners Management Act, 2007. The examinations are administered nationally in the periods MAY/JUNE and NOVEMBER/DECEMBER, through a partnership between KASNEB and KISM.

Pioneer classes commence in July 2015, with the first examinations in NOVEMBER/DECEMBER 2015.

OVERALL OBJECTIVES OF THE EXAMINATIONS

The CPSP-K examination syllabus is designed to equip learners with knowledge, practical skills and attitudes that will enable them perform supervisory, management and leadership roles as buyers, Supply Chain managers, supervisors, directors, or consultants for organizations. The APS-K examination syllabus equips learners with knowledge, skills and aptitudes to support procurement and supply chain management functions in large organizations and to provide leadership for similar functions in small organizations.

THE CPSP-K COMPRISES FOUR (4) PARTS WITH THE FOLLOWING EXAMINABLE MODULES:

CERTIFIED PROCUREMENT AND SUPPLY PROFESSIONAL PART I

PL1.01 Organizational EnvironmentPL1.02 Procurement of Goods, Services and WorksPL1.03 Procurement PlanningPL1.04 Supply Chain Management Information SystemsPL1.05 Contract Law and NegotiationPL1.06 Finance for Procurement

CERTIFIED PROCUREMENT AND SUPPLY PROFESSIONAL PART II

PL2.01 Supply Chain Management for SMEsPL2.02 Procurement Costing and BudgetingPL2.03 Procurement of Consultancy ServicesPL2.04 Procurement Audit and Risk ManagementPL2.05 Quantitative TechniquesPL2.06 Category Management

CERTIFIED PROCUREMENT AND SUPPLY PROFESSIONAL PART III

PL3.01 Sustainable ProcurementPL3.02 International ProcurementPL3.03 Logistics and Inventory ManagementPL3.04 Research in ProcurementPL3.05 Operations Management

CERTIFIED PROCUREMENT AND SUPPLY PROFESSIONAL PART IV

PL4.01 Procurement GovernancePL4.02 Strategic Supply Chain ManagementPL4.03 Procurement LeadershipPL4.04 Project ManagementPL4.05 Public Private Partnerships (PPPs)PL4.06 Research Project in Procurement and Supply

CPSP-K ENTRY REQUIREMENTS

A person seeking to be registered as a student for the CPSP examination must show evidence of being a holder of one of the following qualifications:

(a) Pass in APS-K, or(b) Degree from a recognized university, or(c) Kenya Certificate of Secondary Education

(KCSE), mean grade of C+ (plus) with minimum C+(plus) in English and in Mathematics, or

(d) Kenya Advanced Certificate of Education (KACE) with atleast TWO principle passes and credits in Mathematics and English at Kenya Certificate of Education (KCE)

(e) Equivalent qualifications as determined by Kenya Institute of Supplies Management (KISM).

THE APS-K COMPRISES TWO (2) PARTS WITH THE FOLLOWING EXAMINABLE MODULES:

ASSOCIATE IN PROCUREMENT AND SUPPLY LEVEL I

AL1.1 Principles of Procurement and SupplyAL1.2 Supply MarketsAL1.3 Introduction to Business LawAL1.4 Supply Chain ManagementAL1.5 Entrepreneurship and Business Ethics

ASSOCIATE IN PROCUREMENT AND SUPPLY LEVEL II

AL2.1 Stores and DistributionAL2.2 Procurement and Supply RelationshipsAL2.3 Contract AdministrationAL2.4 Quantitative SkillsAL2.5 Communication and Office Management

APS-K ENTRY REQUIREMENTS

A person seeking to be registered as a student for the APS-K examination must show evidence of being a holder of one of the following qualifications:

(a) Kenya Certificate of Secondary Education (KCSE)

examination with an aggregate average of at least grade C plain, or

(b) Equivalent qualifications as determined by Kenya Institute of Supplies Management (KISM)

REGISTRATION OF STUDENTS Students must register (by completing form CPSP/APS/1 and submitting with the necessary attachments) before sitting for any examination. Validity of student registration is one calendar year from January to December. Students must renew registration annually by filling student Examination Entry/Registration Renewal form (CPSP/APS/2) and submitting the form to the designated KISM receiving office in Nairobi or to a designated KASNEB or KISM representative in locations outside Nairobi, in accordance with instructions on the Student Registration form.

EXAMINATION ENTRY

Registered students who wish to take the examinations are required to complete form CPSP/ASP/2 and submit with attachements and eveidence of payment of the examination fee on or before 15th August for the November/December examinations and 15th February for the May/June examinations.

Additional information on CPSP -K and APS-K examinations may be obtained from:

(a) KISM offices(b) KASNEB offices(c) Kenya National Library Services (KNLS) branches

countrywide(d) Training institutions(e) KISM and KASNEB websites www.kism.or.ke and

www.kasneb.or.ke

PIONEER TRAINING INSTITUTIONS

• Achievers School of Professional Studies - Nakuru• College of Human Resource Management - Nairobi• Cornerstone Training Institute - Nairobi• Chuka University Embu Campus - Embu• Dedan Kimathi University - Nairobi• Dima College - Nairobi• KCA University - Nairobi• Kisii College of Accountancy - Kisii• Moi University - Eldoret • Nakuru Training Institute - Nakuru• Star Institute of Professionals - Mombasa• Technical University of Mombasa - Mombasa • Times Training Centre - Mombasa


Across

1 Market force led by consumers7 Overheads Absorption Rate

(abbreviation)8 Liabilities11 Amount paid to acquire an asset12 Part earning of a firm that is paid

to shareholders14 A sheet used to record financial

position of an entity16 Unit ownership in a company17 Authority that collects revenue

on behalf of the government of Kenya

20 When a private company issues shares to the public for the first time

21 Deliberate mistakes in financial records

24 In statistics the middle value of a series of values

1 2 3 4

5 6 7

8 9

10

11 12

13

14 15 16

17 18

19

20 21 22 23

24 25

26 27

28 29

Across Down 1 Market force led by consumers 2 Quantity to be purchased to minimize

total cost 7 Overheads Absorption Rate (abbreviation) 3 Review of records to verify accuracy

8 Liabilities 4 internal constitution of a company 11 Amount paid to acquire an asset 5 Owner's equity in a business 12 Part earning of a firm that is paid to shareholders 6 English economist who advocated for

monetary and fiscal policies 14 A sheet used to record financial position of an

entity 9 Summary of intended expenditure

16 Unit ownership in a company 10 Organization that regulates activities of accountants in Kenya

17 Authority that collects revenue on behalf of the government of Kenya

13 International accounting standards (abbreviation)

25 A portfolio that provides the greatest expected return for a given level of risk

26 An institution that accepts deposits and lends out money

27 To appropriate retained earnings

28 One of the two columns of an account

29 An unsecured debt instrument issued by corporate entities

Down

2 Quantity to be purchased to minimize total cost

3 Review of records to verify accuracy

4 Internal constitution of a company

5 Owner’s equity in a business6 English economist who

advocated for monetary and fiscal policies

9 Summary of intended expenditure

10 Organisation that regulates activities of accountants in Kenya

13 International accounting standards (abbreviation)

15 Accounting method that records incomes when they are earned

18 Act of minimizing tax liability19 What is done to costs of running

an entity 22 Unit measure of utility23 Goods subject to VAT

Crossword puzzle

Answers to this puzzle will be

published in the next issue of

KASNEB Newsline

kasneb newsline...kasneb newsline, issue no. 1, january - march 2015 5environmental analysis (iii)...

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