Page 7 - CIMA SCS Workbook August 2018 - Day 2 Tasks

Chapter 8

STRATEGIC MANAGEMENT (E3)

PRACTICE TASKS

EXERCISE 1

UPDATE
It is early one Monday morning. Den Rice, CFO of FNG, asks you to join him in his office.

TRIGGER

“I was reading an article online over the weekend; I will forward a link to you. It makes for rather
depressing reading, but I don’t think it will come as a shock to anyone. We all know that the trend
for accessing the news is more towards online content and away from printed newscopy.

As a company we are investing more and more each year in our digital titles, but I think we need
to accelerate such growth. Our latest set of results made for grim reading for shareholders, and
they will be looking to the Board to reverse the downward trend.

Guy Lomas is therefore considering a proposal that FNG commits to ceasing altogether the
printed version of all of our titles, closing the print factories, and offer just a digital version
instead. His view is that such a move is inevitable if FNG wants to remain a going concern, and
that it cannot be put off much longer. He believes that FNG should commit to being wholly digital
within 3 years.

This is, of course, going to represent a major change for all those involved in FNG. We will need to
persuade the Board of the strategy’s merits, and would like your help with the following:

Firstly, there will be many factors to consider before making the final decision on going purely
digital, both positive and negative. Could you please summarise those factors - I appreciate that
this is a very broad instruction, but I want to make sure we don’t miss anything.

Secondly, there will inevitably be some resistance to this change if and when it is announced; this
will need to be managed carefully. Could you please explain to me the causes of such resistance
so that we can act in such a way as to reduce that resistance?

Many thanks.”

KAPLAN PUBLISHING 21