Page 11 - CIMA SCS Workbook August 2018 - Day 2 Tasks

STRATEGIC MANAGEMENT (E3) - PRACTICE TASKS

EXERCISE 3

UPDATE
You receive the following email from Den Rice, FNG CFO:

TRIGGER

Email

To: Senior Manager
From: Den Rice, CFO
Subject: Letter from Allied Investment Group

Alan Finch has received a letter today from Allied Investment Group, which owns 8% of the issued
share capital of FNG. I attach a copy of the letter for your information.

As you will see, Alan wants to arrange a meeting with Allied, at which he needs to address their
concerns. He has asked me for some assistance, and I would like your input.

Firstly, Allied is questioning FNG’s approach to formulating strategy. Historically, being in a
relatively stable industry, FNG has always adopted the rational approach to develop its strategic
plans, but perhaps this needs to change. Could you please evaluate the use of this approach for
FNG, explain any other methods, and recommend a change, should you think this appropriate?

Secondly, Allied implies that the structure of the company is not right as it looks to rely less for its
revenues on newsprint and more on digital delivery. Could you please consider alternative
structural configurations that FNG might adopt, and recommend changes you believe necessary?
These will need to be well-reasoned.

Many thanks

TASK

Prepare an email in response to Den Rice’s requests (Time allowed: 60 minutes)

(Refer to the reference materials overleaf)

KAPLAN PUBLISHING 25