Page 18 - SCS May 2018 - Day 2 Tasks

CIMA MAY 2018 – STRATEGIC CASE STUDY

Reference Material - forwarded email from Chet Nolan, Chief Executive

Email

To: Martine Andels
From: Chet Nolan, Chief Executive
Subject: Future expansion

Martine

As you know we have had a fairly good year this year but we cannot afford to be complacent and I
am constantly looking for expansion opportunities. I am currently considering the possibility of
extending our geographical coverage into Russia.

In 2012, the Russian Federation announced an ambitious target of providing 90% of households
with "ultrafast" connection speeds of at least 100 megabits per second by 2018 and, whilst the
process has slowed recently, I believe that it is well underway. Hence I think the time is right to at
least consider this move, despite the current frosty relations between Russia and the Western
world.

It will of course require considerable investment in new content and I am concerned that we get
this decision right. There are clearly many other things to consider in making such a move, but
what I would like you, or one of your team, to do is to explain how we should go about assessing
this investment from a purely financial point of view.

The sooner the better please!

Thanks
Chet

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