Page 3 - CIMA SCS Workbook February 2019 - Day 1 Suggested Solutions

SUGGESTED SOLUTIONS

CHAPTER FOUR – E3

EXERCISE 1

Political

• Grant income available from governments in respect of technology start ups

• Government concern at increasing levels of obesity, diabetes etc, and the impact on
healthcare

• Competition authorities may investigate takeover bids due to concerns over being anti-
competitive

Economic

• Exchange rates between Newland $ and other currencies will impact revenues and costs in
N$

• Economies of scale in production as global demand grows

• Share prices affected by general attitude to tech stocks; bull v bear market sentiment

• Need to invest in R&D

• Changes in global economy could impact demand for discretionary items such as fitness
trackers

Social

• General trend of society becoming more health aware

• Ageing populations look to be more active as people live longer

• Concern that children are not taking as much exercise as they should due to too much
screen time, lack of playing fields etc.

• Positive motivational impact of exercise ‘communities’

Technological

• Industry advances at a fast pace as competitors look to achieve advantage

• Increasing emphasis on smartphones and app-based technology

• Increasing mobile connectivity eg due to 5G

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