Page 12 - CIMA MCS Workbook May 2019 - Day 1 Suggested Solutions

CIMA MAY 2019 – MANAGEMENT CASE STUDY

OPPORTUNITIES

 New product development and introduction e.g. hotels
 Reduction of emissions and waste globally
 Government support and growing populations
 Expansion options – geographic expansion/acquisition
 Exploit new technology

 Relocation of production function – cost saving
 Investment/enhancement of production
 Improvements in performance measurement
 Improvements in risk management
 Improvements in change management
 Improvements in decision making techniques
 Improvements in cost control
 Diversification ‐ e.g. domestic market and hotels, hospital etc
 Diversification – e.g. on‐line sales
 Rapid technological change in building practices

THREATS

 Institutional shareholder pressure
 Increasing competitive threat
 Unpredictable customer demand
 Rapid technological change in building practices
 Health and safety in the workplace – e.g. product failure/damage
 Failure of quality process – e.g. reputational threat
 Loss of key staff to competitors
 Economic risk – e.g. foreign exchange; fuel price fluctuation re transport
 Legal risk ‐ legal claims – product failure; breach of health and safety
 High investment required ‐ difficulty in gaining external funding
 Cultural threat via expansion plans
 Slow recovery of world economy
 Environmental objections to new product developments

NB – changes in the external environment e.g. technological change can be considered as both an
opportunity and a threat

62 KAPLAN PUBLISHING