Strategic direction & the Ansoff matrix

Explain one benefit to Tom Pellereau of using a business angel as a source of finance.

Using the data in Extract B, calculate the acid test ratio for Stylideas Ltd in 2024 to 2 decimal places. You are advised to show your working.

Assess whether Stylideas Ltd’s distinctive capability of innovation is the main reason for its success.

Assess the likely effects on Stylideas Ltd of changes in the UK business cycle.

As Stylideas Ltd grows, Tom Pellereau is considering whether to change its current role culture to a power culture to maintain the business’ success.

Evaluate these two options and recommend which one Tom Pellereau should choose to maintain the business’ success.

Using the information in Extract E, calculate the difference in the operating profit margin between 2022 and 2021. State your answer to two decimal places. You are advised to show your working.

Explain one benefit to Tesla of its factories achieving high levels of capacity utilisation.

Assess the importance of Tesla having a task culture for its continued success.

Assess the value of lean production as a source of competitive advantage for Tesla.

Elon Musk has set the objective of increasing Tesla’s market share of the electric vehicle market. To achieve this objective, Elon Musk is considering whether to focus on market penetration of the electric car market or product development through electric trucks.

Evaluate these two options and recommend which one Elon Musk should choose to achieve the objective of increasing Tesla’s market share.

Explain one reason why Brompton might use job production.

Using the data in Extract B, calculate the change in labour productivity between 2019 and 2020. State your answer to two decimal places. You are advised to show your working.

Assess whether the distinctive capability of innovation is the main reason that Brompton has a competitive advantage.

Using the data in Extract C, assess the effect on Brompton’s sales of the change in the US dollar to the £, between April 2020 and April 2021.

Brompton has set itself the objective of expansion. It is considering two options to expand, either by organic or inorganic growth.

Evaluate these two options and recommend which one is the best for Brompton to achieve its objective of expansion.

Assess two factors which might affect the accuracy of UK new car sales forecasts.

Using the data in Extracts A and B, assess the importance of just in time (JIT) management of stock for UK car manufacturers.

Assess the likely impact of increased foreign direct investment (FDI) on the growth of businesses in the UK car industry.

Porter’s Strategic Matrix suggests that a car manufacturer can grow the sales of its electric cars by either focusing on differentiation or cost leadership.

Evaluate these two options and recommend which one is the most important for the successful growth in sales of its electric cars.

Explain one reason why the head of each division of Buy it Direct is responsible for managing its own budget.

The Chief Executive has calculated the new bathroom project will not meet its payback target of three years.

Using the data in Extract F, calculate the difference in the payback period compared to the Chief Executive’s target. You are advised to show your working.

Using the data in Extract G and your own business knowledge, assess the likely effects of the changes in interest rates between 2019 and 2021 on Buy it Direct.

Buy it Direct’s new Operations Director is in charge of installing a new IT system for the warehouses. This project must be completed within 45 weeks. The Operations Director has produced the following network diagram:

Activity A: Identify problem
Activity B: Consult with software supplier Activity C: Recruit staff
Activity D: Staff training Activity E: Discuss IT solution
Activity F: Order equipment from suppliers Activity G: Implementation and testing

Assess the likely value of Critical Path Analysis (CPA) for the effective management of the installation of the new IT system.

Buy it Direct has set the objective of increasing its sales revenue. It is considering two options, either to adopt a strategy of market penetration in the UK Electrical Household Appliance market or diversification.

Evaluate these two options and recommend which one is most likely to achieve Buy it Direct’s objective of increasing its sales revenue.

Explain one reason why businesses that sell VisionSpring’s glasses may prefer to stay small.

For people in developing countries, purchasing a pair of VisionSpring glasses may be considered as an investment.

Using the data in Extract B, calculate the average rate of return from purchasing a pair of glasses. You are advised to show your working.

Assess VisionSpring’s decision to finance its growth using retained profits.

Assess whether the decision to be a socially responsible business is likely to increase Warby Parker’s profits.

Warby Parker’s main corporate objective is to grow the business. The management is considering two options, either to develop a new range of contact lenses for the high income market, or to start selling glasses in the low income market.

Evaluate these two options and recommend which one is most likely to achieve Warby Parker’s main corporate objective.

Explain one reason Mumtaz has always used internal finance to establish and expand its business.

Using the data in Extract B, calculate the margin of safety. You are advised to show your working.

Assess whether expanding by organic growth was the right decision for Mumtaz.

Using the data in Extract C, assess the likely impact of the forecast changes in the UK economy on a business such as Mumtaz.

Mumtaz’s aim is to become the UK’s market leader in Asian ready meals. To achieve this, it could produce own label ready meals for supermarkets or focus on selling more Mumtaz premium brand name products.

Evaluate these two options and recommend which is most suitable for Mumtaz to achieve its aim.