Question 86
The Financial Director (FD) of your company has heard it said that 80% of profits come from 20% of customers. The FD has accused the sales team of wasting time on serving customers who are not valuable to the business.
The FD has instructed you to take a random sample of 100 customers and to calculate the total contribution the company earned from each customer in the past year. The FD intends to instruct the sales team to stop selling to the bottom 25% of these customers in order to improve profitability.
Which THREE of the following factors should the FD consider when he interprets your results?
The FD has instructed you to take a random sample of 100 customers and to calculate the total contribution the company earned from each customer in the past year. The FD intends to instruct the sales team to stop selling to the bottom 25% of these customers in order to improve profitability.
Which THREE of the following factors should the FD consider when he interprets your results?
Question 87
YZ is a family-run business which manufactures and sells confectionery, employing almost 100 staff It operates 10 shops in small towns in the north of country P.
Sales of YZ's products have decreased over the last
4 years due to competition from large supermarkets, internet shopping and a general economic downturn, which has hit the north of country P especially hard.
YZ's managing director has recently retired and the board decided to fill the vacancy with an external appointment. The new managing director plans to invest in new manufacturing technology, which would cut staffing levels by 15% and reduce wastage, allowing YZ to lower its prices YZ's staff are very unhappy about these proposals, feeling that they will destroy YZ's family tradition and reputation that has developed over many years Select the correct descriptor for each of the forces for change below.
Sales of YZ's products have decreased over the last
4 years due to competition from large supermarkets, internet shopping and a general economic downturn, which has hit the north of country P especially hard.
YZ's managing director has recently retired and the board decided to fill the vacancy with an external appointment. The new managing director plans to invest in new manufacturing technology, which would cut staffing levels by 15% and reduce wastage, allowing YZ to lower its prices YZ's staff are very unhappy about these proposals, feeling that they will destroy YZ's family tradition and reputation that has developed over many years Select the correct descriptor for each of the forces for change below.
Question 88
RST is a national airline that differentiates itself by the quality of service it provides to its passengers. Place the appropriate Value Chain activity next to each aspect of RST's service.
Question 89
In order to organize the value-adding activities to support a chosen strategy, Porter's Generic Strategies are often applied within an organization's value chain.
Against each of the activities listed below, select the Generic Strategy which best defines the strategic approach being taken.
Against each of the activities listed below, select the Generic Strategy which best defines the strategic approach being taken.
Question 90
SSS is a large department store. It operates a chain of stores throughout Country Z.
It offers a wide range of products, from cosmetics through to home furnishings.
SSS's Value Chain is presented below.
Which of the following generic strategies is being undertaken by SSS?
It offers a wide range of products, from cosmetics through to home furnishings.
SSS's Value Chain is presented below.
Which of the following generic strategies is being undertaken by SSS?