Question 1
Explain how Morrisons may benefit from having a mission statement.
(4)
Using the data in Extract B, calculate the difference in Morrisons’ acid test ratio between 2014 and 2015. You are advised to show your working.
(4)
Assess the likely effects on a business, such as Morrisons, of a more competitive environment.
(10)
Assess whether the transformational leadership shown by David Potts is the main cause of Morrisons’ improved performance.
(12)
Morrisons aims to regain its market share. The two options the management are considering are either to cut prices further, or to improve its overall customer experience.
Evaluate these two options and recommend which option might be preferred by Morrisons’ shareholders.
(20)