Page 9 - CIMA SCS Workbook August 2018 - Day 1 Suggested Solutions

SUGGESTED SOLUTIONS

Make use of data analytics to understand readership details better and persuade advertisers to
use digital platforms to grow digital revenues

Sell the business to large publishing group, allows shareholders to realise value

Possible growth outside of Borland

Acquire competitor (Nuncia?) and generate synergies

Threats

Circulation continues to fall to point where papers become unviable

Continuing decline in main source of revenue, print advertising sales

Growth in incidents of ‘fake news’ harm readers’ trust in newspapers

Threat of IT systems being hacked – may lead to stories not yet published getting into public
domain, or readers’ personal data being illegally accessed

Borland economy may go into recession, affecting advertising revenues and print sales

Litigation due to inaccurate or defamatory reporting, results in fines and loss of reputation

Journalists get news stories through illegal/unethical means

Risk of ‘troll’ comments to newspaper articles in online variants, social media

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