Page 4 - SCS May 2018 - Day 1 Suggested Solutions

CIMA MAY 2018 – STRATEGIC CASE STUDY

Environmental

• Use of alternative energy sources such as solar and wind power to offset energy
requirements for cloud storage (multiple servers etc.)

Legal

• Video piracy is a potential huge loss of revenue and therefore must be fought against
• Need to monitor usage as streaming on multiple devices could cause customers to share
accounts/passwords with friends/family/neighbours

• Need for data protection of subscriber details – importance increasing due to GDPR

• Importance of protecting Intellectual Property Rights (IPR)/copyright over self-produced
content

• Different copyright/licensing restrictions in different countries

• Stock Exchange legislation in terms of market updates on company performance etc.

• Use of exclusive licences to broadcast content for 5-10 years

EXERCISE 2

Financial Perspective

CSF KPI

Returns to shareholders % growth in share price per annum

Financial performance % growth in revenue and profit margins

Cash management Gearing ratio, debt: total finance

Customer Perspective

CSF KPI

Customer satisfaction Survey ratings from subscribers sampled for
feedback on service levels

Attractiveness of content Increase in subscriber numbers per annum

Value for money % of customers cancelling their contract per
annum (“churn rate”)

40 KAPLAN PUBLISHING