Page 2 - CIMA OCS Workbook May 2019 - Day 1 Tasks

CIMA MAY 2019 – OPERATIONAL CASE STUDY
Question
What is VitaMine’s stated strategy
How feasible is it for VitaMine to
gain market share?
What type of organisational
structure does VitaMine have?
Does VitaMine have an HR
director?
Does VitaMine have an IT director? No but here is an IT manager (p5) who reports to Juliette
How important is IT/IS to
VitaMine?
Who is Vitasite?
How profitable was VitaMine in
2018?
Which products have the best
gpm?
42
Response
3 aspects:
• ‘Develop its product range, whilst meeting
environmental standards and providing the best quality
products and service’ (p3)
• Has invested heavily in new manufacturing equipment,
R&D and funding clinical tests (p3)
• Identified a need to invest in central systems and
processes (p3)
• Industry is described as ‘fragmented’ (p13), meaning
that there are no major players with high market share.
In this case this is due to ‘a general lack of brand
awareness’ and ‘an absence of consumer loyalty’ (p13).
• Presumably VitaMine could therefore gain market share
if it could strengthen its brand awareness and loyalty.
This would be limited by the extent to which VitaMine’s
goods are sold under other companies’ brand names.
• Separately we are told that there will be a greater
emphasis on quality, safety, regulations and scrutiny of
efficacy claims in the future (p14). Obviously VitaMine
could gain an advantage over rivals by ensuring that it is
at the leading edge in these respects.
Functional (p5)
No but here is an HR manager (p5) who reports to Juliette
Goh (FD)
Goh (FD)
Very:
• Uses a JiT production / inventory system – good IS
(potentially) make this more efficient
• Runs its own haulage fleet within Eastland – again, good
IS will make this more efficient
• Vitasite is a wholesale customer who sells VitaMine own
brand products via a website. (p11)
• This represents 10% of VitaMine’s total revenue. (p11)
• Profit after tax of just under E$3m (p15)
• Liquids, serums and sprays (p18)
KAPLAN PUBLISHING