Page 12 - CIMA May 18 - MCS Day 1 Suggested Solution

CIMA MAY 2018 – MANAGEMENT CASE STUDY

OPPORTUNITIES

 Diversification into new services may open up new markets.
 New service development and introduction
 Reduction of emissions and waste
 Expansion options – geographic expansion/acquisition
 Exploit new technology – e.g. driverless buses
 Improvements in performance measurement
 Improvements in risk management
 Improvements in change management
 Improvements in decision making techniques
 Improvements in cost control
 Rationalisation of structure
 Outsourcing non value added activities

THREATS

 Increasing competition
 Environmental pressure ‐ move towards electric vehicles
 Government pressures
 Regulatory threat
 Political instability given global coverage
 Unpredictable future customer demand
 Health and safety errors and effect on reputation and brand
 Economic risk – e.g. foreign exchange; fuel price fluctuation
 Legal risk ‐ legal claims – e.g. breach of health and safety
 Cultural threat via expansion plans
 Slow recovery of world economy

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