Page 1 - CIMA OCS Workbook May 2019 - Day 1 Tasks
P. 1
Day 1 Suggested Solutions
Chapter 11
SUGGESTED SOLUTIONS
CHAPTER TWO – QUIZ
Question Response
What does VitaMine do? Manufactures vitamins, minerals and supplements (p3)
Who are the shareholders? Equally split between the 4 directors who founded the
company (p3)
Where is it based? Eastland, a country in SE Asia (p3)
How many markets does the Global (p3)
company operate in?
By how much did revenue grow in 49% (p3)
2018?
What drove such rapid growth? Two key factors highlighted:
1. VitaMine’s Reputation in the market as a company that
delivers an excellent quality of products and services
(p3)
2. A ‘thriving’ industry (p3) that has had ‘unprecedented’
sales growth over the last ten years. (p13)
What problems does this growth • ‘Managing the business, its staff and putting in place an
present for VitaMine? appropriate infrastructure’ to support the growth (p3)
• ‘It has been recognised that there is a need to build new
processes for HRM to ensure the well-being of both
existing and new staff.’ (p12)
• Liquidity – is there a risk of overtrading? Looking at the
statement of cash flows (p17), an additional E$504k was
tied up in working capital in 2018 v 2017.
Is the high industry growth • Global industry forecast to grow at 5-6% p.a. for the
sustainable? next few years (p13)
• However, there are concerns that the health benefits of
taking vitamins as supplements may be overstated (p24)
KAPLAN PUBLISHING 41
