Question 1

Christopher Tan, the Chief Executive Officer of fee-only advisory firm Providend, was told that “Singaporeans would not pay a fee for advice when he started the firm in 2001” (Cua, 2018a).

Today, the firm manages about S$283 million and is known for its “ethical practices and strict adherence to a fee-only model” (Cua, 2018a). In 2014, Providend teamed up with NTUC Enterprise Co-operative to set up MoneyOwl. MoneyOwl absorbed its insurance portal DIY Insurance (Cua, 2018b). MoneyOwl aims to be financially sustainable in the long run despite
being a social enterprise, and profit maximization is not the main aim of the company.

DIYInsurance was set up by Mr. Tan to offer “conflict-free advice” on insurance products (Cua, 2018b). Instead of remunerating the insurance advisors in the form of commissions, the commissions are given back to the customers in the form of a rebate. That means the advisors are salaried staff.

This reduces conflict of interest between promoting the product that generates the most committed to the advisors vs promoting the product that is in the best interests of the customers.

(a) Illustrate the term Ethics using your own words. Provide an example of an ethical decision by a financial institution.

(b) Is Providend a socially responsible company? How does the remuneration policy at MoneyOwl and Providend fit in with the socio-economic view of being socially responsible?

(c) Discuss, with relevant examples, two (2) individual characteristics that lead to the ethical behavior of Provident’s advisors in this case.

(d) Do desktop research on whistleblowing. Describe the whistleblowing policy of an organization that you are familiar with. Comment on the importance of the whistleblowing policy with regard to corporate governance of the organization.

Question 2

Joachim and his wife decided that they would save money by not purchasing a car when they got married and settled down at their new home. Both of them have enjoyed the journey from their new home to their offices because their home and offices are both conveniently located near to the MRT stations.

They thought that their money could be saved for the arrival of their new-born baby and have been looking forward to welcoming their new-born in a few months. However, they both recently encountered numerous train breakdowns, and experienced overcrowding of the train network. Thus, they start thinking about the possible inconvenience of not having a car when they have a baby. They know the cost of car ownership will increase their family expenses, but at the same time, they need to weigh that against the convenience of having their own rides.

(a) With the recent drop in the COE prices, Joachim feels that it is the correct time to purchase a car. However, he cannot decide which car to buy. Apply the decision-making process learned from this course to help him make his decision. (You need to conduct research and make relevant assumptions if necessary).

(b) Analyze the six (6) components of the external environment of the automobile industry in Singapore and in Southeast Asia. Explain, with relevant examples, how the change in the external environment of the automobile industry in Singapore and in Southeast Asia affect the buyers’ decision to purchase a car.

Question 3

Following the massive delays in the train services that were disrupted by floods on two weekends in 2017, it is clear that the priority of SMRT would be to improve the infrastructure of the train network. However, the CEO pointed out that “there are deep-seated cultural issues” within the company that have also contributed to the significant disruptions (Today, 2017). A probe later discovered that maintenance records had been falsified for the anti-flooding system for one year. Maintenance was not carried out on various systems of SMRT in the one year.

There was also a lack of supervisory oversight from the senior management team over the one year. As a result of the inquiry, eight staff had their employment contract terminated while the rest either resigned or were demoted (Tan, 2017).

You need to do research to address the following questions.

(a) Define organizational culture, in your own words. Provide a relevant example from the case.

(b) Outline the current group organizational structure of SMRT. Are there any issues with the group organizational structure of SMRT? Apply knowledge of organizational structure and propose an organizational structure that could be adopted by SMRT to improve its train performance.

(c) Interpret how culture affects the four (4) functions of management of SMRT. Provide relevant examples.

(d) Describe, with relevant examples from SMRT, the three (3) levels of essential management skills. Relate how these skills can help SMRT’s employees at different management levels improve the company’s performance.