Page 3 - CIMA SCS Workbook August 2018 - Day 1 Suggested Solutions

SUGGESTED SOLUTIONS

CHAPTER FOUR – E3

EXERCISE 1

Political

• Political opinion linked to national newspapers e.g. in the UK The Guardian = left wing, The
Telegraph = right wing.

• Impact of newspapers on public opinion in national/local government elections

• Industry regulated in the UK by the Independent Press Standards Organisation (IPSO)

Economic

• General business model in period of change, from print to digital.

• Increased number of free newspapers e.g. Metro, London Evening Standard

• A newspaper may be deemed discretionary expenditure – falling unit sales during
recessionary periods

• Industry as a whole suffering a downturn

• Possible foreign exchange implications for purchases of supplies e.g. imported paper

• Need to cut costs in the industry to preserve profitability as revenues fall

• State of housing and jobs markets will impact classified advertisement revenue in
property/recruitment

Social

• Trends in consumer demand – younger people expect to get news for free e.g. from social
media

• Increased instances of readers adding to the news experience e.g. by adding comments to
articles online

• Increased instances of ‘fake news’ mean people have less trust in the news reported to
them.

• Unethical actions by journalists/editors reduce public trust in the newspaper industry e.g.
phone hacking scandal at the News of the World

• Literacy rates impact on demand for news in print/digital form

• Local newspapers seen as an important part of the community

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