ACCA

Paper P3
Business Analysis

On-line Final Mock Examination

Question Paper

Time allowed 3 hours

This paper is divided into two sections

Section A ONE compulsory question MUST be attempted

Section B TWO questions ONLY to be attempted

Instructions:
Please attempt this exam under test conditions and attach the frontsheet complete with your name and address
to your script. The completed package should be sent to BPP Marking Department.
Take a few moments to review the notes on the inside of this page titled, ‘Get into good exam habits now!’ before
attempting this exam.

DO NOT OPEN THIS PAPER UNTIL YOU ARE READY TO START UNDER
EXAMINATION CONDITIONS

ACP3FM10(J)
Get into good exam habits now!
Take a moment to focus on the right approach for this exam.

Effective time management

• Watch the clock, allow 1.8 minutes per mark. Work out how long you can spend on each question
and do not exceed that time.
• Take a few moments to think what the requirements are asking for and how you are going to
answer them.

Effective planning
• This paper is in exactly the same format as the real exam. You should read through the paper and
plan the order in which you will tackle the questions. Always start with the one you feel most
confident about and take time to choose the questions you will answer in sections with choice.
• Read the requirements carefully: focus on mark allocation, question words (see below) and
potential overlap between requirements.
• Identify and make sure you pick up the easy marks available in each question.

Effective layout
• Present your numerical solutions using the standard layouts you have seen. Show and reference
your workings clearly.
• With written elements try and make a number of distinct points using headings and short
paragraphs. You should aim to make a separate point for each mark.
• Ensure that you explain the points you are making ie. why is the point a strength, criticism or
opportunity?
• Give yourself plenty of space to add extra lines as necessary, it will also make it easier for the
examiner to mark.

Common terminology
Identify List relevant points
Discuss Explain the opposing arguments
Describe Present the characteristics of
Summarise State briefly the essential points
Recommend Present information to enable the recipient to take action
Analyse Determine and explain the constituent parts of
Explain Set out in detail the meaning of
Illustrate Use an example to explain something
Appraise/assess/
evaluate Judge the importance or value of

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SECTION A
ONE compulsory question

1 Fox plc
Fox plc is a large, well-established company operating in the B2B sector. It is one of the world’s largest
producers of titanium. Through its various sites, Fox manufactures and distributes titanium and speciality
metal mill products, extruded shapes, formed parts and engineered systems for aerospace, industrial,
defence, energy, chemical and consumer applications for customers around the world. The company has
two business groups, the Titanium Group and the Fabrication Group, made up of 1,400 people at 18
locations in the UK, Hong Kong and Canada.
The Titanium Group produces titanium mill products including plate, sheet, ingot, and tubular products, as
well as ferro alloys, which are used by major domestic and international manufacturers of commercial and
military aircraft and jet engines. Other applications include chemical processing equipment, oil & gas
systems, pulp & paper production facilities, medical implants, and consumer goods such as frames for
glasses. The Fabrication Group manufactures and distributes titanium and speciality metals, extruded
shapes, and engineered systems for the energy, aerospace, and military markets.
Fox’s strategy is to be the supplier of choice throughout the world for high-end titanium products, while
maintaining its strong financial condition and stringent safety, quality, and environmental standards. The
company intends to continue its diversification into higher margin value-added products in both new and
traditional markets. The Office of Continuous Improvement (OCI) at Fox plc is dedicated to ensuring that
the company maintains its leadership role in the industry through the advancement of the best suitable
manufacturing techniques available, including automation of production using advanced manufacturing
technology and flexible manufacturing systems
Flexible manufacturing production methods are characterised by small batch production, the ability to
change quickly from one job to another and very fast response times so that output can be produced
quickly in response to specific orders that come in. The essential requirements for this type of production
include a skilled workforce with supervisors that are technically competent and good at problem-solving.
Over the last decade significant changes in the industrial labour force have imposed new challenges and
issues for Fox plc. The increasing rate of worker retirement, sustained low birth rates and the near-full
employment economy in recent years have served to reduce the labour supply available for
manufacturing. Manufacturers such as Fox are experiencing difficulties in retaining skilled labour, and in
recruiting new employees with the education and skills necessary for advanced manufacturing.
The transition towards technology-intensive production processes and the adoption of advanced
manufacturing methods requires a manufacturing workforce with higher levels of education, current
technical skills, and the ability for greater decision-making in line with enterprise objectives. Workers at all
levels of the organisation must be knowledgeable about their products, customers, and production
processes. As manufacturing becomes more complex and more technology driven, education is
increasingly important. The lack of skilled labour is a significant barrier to manufacturing modernisation
and improving production performance.
Until 20X4 Fox plc had established a good reputation for the quality and performance of its components
but since then its performance has deteriorated, and it now faces some challenges. The company finds
itself in competition with new manufacturers, especially from the Far East, who are also using up-to-date
manufacturing technology. This has undermined Fox plc's local monopolies. Although it continues its
tradition of product innovation, this no longer seems to confer the advantage that it once had. Early in
20X5, the Fabrication Group failed to have a a cost-plus defence contract renewed due to delays in their
supply of equipment for jet engine components and wing supports. This represented 40% of the work
done by the group.

3
As well as a reduction in the number of contracts available, the UK Government now believes that the
cost-plus system encourages inefficiency and for future contracts all companies will be required to quote
fixed prices for government work. It will probably result in government defence contracts being
increasingly awarded to Fox plc’s foreign competitors (mainly American), who can produce the goods at
lower prices.
Another problem facing the Fabrication Group is that several of their smaller customers have complained
that the sales team are not interested in their needs and they do not get the service they expect. Some
orders have not been fulfilled to specification and there has been a decrease in the quality of the goods.
Despite the investment in technology and manufacturing techniques, an analysis of one of the stages of
the manufacture showed that rejection rates at final inspection had risen to 3% from less than 1% in
20X3.
An indication of each Group’s performance is shown by the following data:
Financial data relating to Fox plc
Period Turnover % Profit %
20X3
Titanium Group 35 30
Fabrication Group 65 70
20X6
Titanium Group 55 47
Fabrication Group 45 53
Financial data relating to Fox plc – all figures below are at 20X6 prices
20X3 20X4 20X5 20X6
£'000 £'000 £'000 £'000
Turnover 26,160 23,163 16,311 15,200
Profit before tax 4,529 3,011 979 456
Tax 2,039 1,204 392 173
Dividends 1,750 1,126 528 255
Retained profits 740 681 59 28
A new managing director for the Fabrication Group has been appointed, with the task of delivering
business excellence, higher customer satisfaction, and superior profits. He has found several features of
the management and organisation that he does not like. The management information systems are poor.
Reports are often produced late and do not provide the feedback that operations managers need to
control work quality and work flow adequately. In his previous job, the managing director had worked with
his management team and employees to develop a continuous improvement programme, which had
been very successful. At Fox plc he intends to implement a Six Sigma quality management programme.
Required
(a) For Fox plc, evaluate the sources of competition within the sector using Porter’s 5 Forces model,
explaining what actions could be taken to mitigate the damaging aspects. (10 marks)
(b) Produce a corporate appraisal of the company. (12 marks)
(c) To address the problems associated with customer enquiries, orders and complaints within the
Fabrication Group identify two specific critical success factors, their associated performance
indicators (PIs) and a source of information that may be used to quantify each PI in an effort to
improve the current situation. Using Porter’s Value Chain illustrate how the Fabrication Group
might be reconfigured to deliver these CSFs. (14 marks)
(d) Explain how Six Sigma could be applied within the Fabrication Group of this firm to rectify the
quality concerns identified, and suggest what impact this might have on re-engineered processes
and the people who work within the organisation. (14 marks)
(Total: 50 marks)

4
SECTION B
Answer TWO questions from this section

2 Jack McGowan
Jack McGowan is the Managing Director of Zenith Finance Ltd, a company offering a range of financial
services, including home, life and car insurance products, personal and business loans and mortgages.
The company also acts for a variety of local businesses in the preparation of accounts and managing the
raising of finance for capital investment and it has recently become involved in helping to provide venture
capital. The company has thirty offices in different geographic locations within the United Kingdom; the
head office is in Leeds. Within each office the insurance business is organised as a separate unit. In
recent years the insurance side of the business has lost market share to rivals due to its slowness in
introducing information technology to deliver its products to customers. This has not affected the loans
and mortgages side of the business as much because these customers are more interested in high
quality customer care and on-going customer service.
The services that Zenith Finance offers are very competitively priced and the staff are all well motivated
and very highly qualified. The company prides itself on the quality of its service and the loyalty that its
customers seem to have. Most of their customers come back regularly and recommend friends. All of the
offices do their own promotion, following the guidelines set out at head office. It is a combination of local
advertising in leaflets and newspapers and public relations’ events.
Jack is of the opinion that the company should develop a coherent e-business strategy. At the beginning
of May, the board of directors committed to a new operating system and the redesign of the
organisation’s website and intranet. The updated website will improve the organisation’s marketing as it
will allow customers to review all products on offer, to obtain quotes, to compare quotes with rival
companies, to send email queries and to instantly sign up for insurance products and make payments
electronically. A basic website is already in existence showing all current products on offer and the ability
to get online quotes.
Required
In your role as an independent business analyst produce a report for Jack McGowan that:
(a) Discusses the benefits of using e-business in a modern competitive environment, and identifies
some of the potential concerns that the firm may encounter (9 marks)
(b) Recommends a suitable hardware and software infrastructure that would be necessary to develop
and support the proposed e-business strategy (6 marks)
(c) Discusses how the firm would need to re-evaluate its traditional marketing approach to
successfully e-market its service to its target customer base (10 marks)
(Total 25 marks)

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3 Henry McDougall
Henry McDougall is general manager of Glorious Gardens. The company was until recently one of the
subsidiary companies of the National Trust. As part of the Trust’s strategy all the garden centres selling
plants and equipment have been separately sold by tender-based offer for sale. Some have been
acquired by private garden centre companies but Glorious Gardens has been acquired through a
management buyout led by the general manager of the existing site, Henry McDougall. Glorious Gardens
needs to invest in a new financial management information system.
The company’s computing systems were totally integrated into the National Trust’s own systems under a
service level agreement at a cost of £9,000 plus VAT per annum. The service was provided on a system
supplied by a company called CedAr but unfortunately Glorious Gardens will no longer be able to obtain
these services under the same agreement when it expires in six months time.
Because of these concerns, Henry McDougall engaged a firm of consultants to define and evaluate
options for either continuing or replacing the current financial system arrangements. They produced a
report which identified two options:
(a) Independent use of CedAr. This option offers the greatest continuity with the current system and
should be the quickest to implement.
(b) Implement a simple accounting system. This option should give a solution that best meets
Glorious Gardens’ requirements but may be relatively expensive. In addition, the limited timescale
means that there is little time to evaluate different systems.
A decision was taken to concentrate on the option to implement a standalone accountancy/financial
management system.
The requirement will be for a project management process which can deal with tight timescales involving
a complicated set of interrelated decisions and actions. Glorious Gardens’ management must realise that
effective project planning and control needs different management skills from those required to run
operational processes.
This is the immediate requirement, but in the longer term the company must put in place a strategy for
managing information resources in ways which enable it to achieve a competitive advantage or at least
competitive parity with other garden centres.
Required
(a) Discuss the relationship between business strategy and project management (5 marks)
(b) Identify some of the problems that could be faced during the planning and delivery of the project,
and suggest how these could be addressed and overcome (12 marks)
(c) Evaluate how project management software could be successfully employed to support the
planning and monitoring of the project (8 marks)
(Total 25 marks)

6
4 Freshen Up
Freshen Up is a UK-listed company operating in the industrial and the fast moving consumer goods
sector, wishing to develop its business by expansion overseas. It has been manufacturing a
comprehensive range of pre-impregnated wet wipes for many years and has traded very successfully in
its domestic country for many years, building up its reputation for quality and reliability. As manufacturers
of its own chemical formulations, Freshen Up is uniquely positioned to provide a broad selection of wet
wipes.
As well as wet wipes for babies and toddlers, wipes for insect repelling, sun screening, degreasing, cable
cleaning, surface preparation, hand cleaning, surface cleaning, graffiti removal and ink cleaning are all
available from the Freshen Up range. About 70 per cent of Freshen Up’s sales are focused on the
industrial and business sectors, with the remainder going to the household consumer. Exports within the
EU are about 40% of total sales.
In the past few years the market within Europe has been growing steadily and Chris Jacobs, the
managing director of Freshen Up, thinks that future growth will not be strong in Europe but that South
East Asia offers more attractive opportunities. Chris favours targeting Malaysia, the Philippines or
Thailand and feels that an investment-led rather than export-led entry mode is most attractive, although
she is still not sure whether such an overseas commitment would be best served by a direct investment in
that region. She suspects that, initially, an exporting strategy from the United Kingdom might be a safer
and less risky proposition. Nevertheless she believes that the company must be bold in its activities.
Required
(a) Assess how Porter's ‘Diamond’ theory can be applied to assist the company in determining
whether or not it should develop internationally (7 marks)
(b) Using a PESTEL describe the international influences that managers involved in international
business are faced with. (6 marks)
(c) Evaluate the three alternative methods of (i) organic growth, (ii) acquisition and (iii) joint
development with overseas firms, which Freshen Up may employ to develop its business
overseas . (12 marks)
(Total: 25 marks)

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Student self assessment
Having completed this paper take a few minutes to consider what you did well and what you found difficult. Use
this as a basis to focus your future study on effectively improving your performance.

Common problems Future emphasis if you answer Yes

Timing and planning

Did you finish too early? Y/N Focus your planning time on generating more ideas.
Use models to help develop width to your thinking.
Did you overrun? Y/N Focus on allocating your time better.
Practise questions under strict timed conditions.
If you get behind leave space and move on.
Did you waffle? Y/N Focus your planning time on developing a logical structure to
your answer.

Layout
Was your answer difficult to follow?
Did you fail to explain each point?
Were some of your workings unclear? Y/N
Y/N Use headings and subheadings.
Use numbering sequences when identifying points.
Leave space between each point.
Y/N Show why the point identified answers the question set.
Give yourself time and space to make the marker's job easy.

Content
Did you struggle with:
Interpreting the questions?
Understanding the subject?
Remembering the notes/text?
Y/N Learn the meaning of question words (inside front cover).
Learn subject jargon (study text glossary).
Read questions carefully noting all the parts.
Practise as many questions as possible.
Y/N Review your notes/text.
Work through easier examples first.
Contact a tutor for help.
Y/N Quiz yourself constantly as you study. You need to develop your
memory as well as your understanding of a subject.

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ACCA
Paper P3
Business Analysis

On-line Final Mock Examination

Commentary and suggested solutions

ACP3FM10(J)
Commentary
Tutor guidance on improving performance on the exam paper.

Overview
The questions set in this paper are typical of the type of question asked by Steve Skidmore, and are of the
expected level for paper 3. The key thing to notice is that for the compulsory section, you will be expected to
apply your knowledge, whereas questions in section B will have a more theoretical bias.
Time management and planning are vital to ensure that you do justice to all of these questions. You should
attempt to answer your best question first, and should avoid writing answers without spending at least five
minutes planning your response. It is a good idea to answer all the section A questions one after the other as
they all relate to the same information or scenario. You could answer them in any order but it is not a good use of
time to do one from section A and then move into section B as you will have to familiarise yourself with the
scenario information again.

SECTION A

Q1 Fox plc
This question requires you to analyse the position faced by a manufacturing company facing competition and
declining sales and profitability. It requires you to use some specific models including value chain, five forces
and six sigma however there are marks available for using a range of relevant tools and identifying a range of
factors.
Part (c) has a number of aspects to it and so you needed to be quite organised and careful of time management.

SECTION B

Q2 Jack McGowan
This question comprises a report that focuses on introduction of an e-business strategy and the practicalities of
IT requirements as well as the impact on the marketing effort of the business.
The marks are relatively evenly spread across the requirements therefore it is important to have given due weight
to each part.

Q3 Henry McDougall
This question looks at the important aspect of implementation of project management. It is important that this
question is answered in the context of this business scenario particularly since part (a) does not directly refer to
the scenario. The role of software in facilitating project management makes up about a third of the marks and
therefore needs to be given due attention.

2
Q4 Freshen Up
This question requires you to analyse the issues related to international expansion using two specific models –
Porter’s diamond and PESTEL. The other half of the question is an analysis of the options for entering the target
markets given the nature of those markets and the products being marketed.
The application of knowledge to the scenario is essential to scoring well in this question.

3
SECTION A

1 Fox plc
Marking scheme
(a) 1 mark per source of competition identified and explained and 1 mark per action to mitigate 10
explained
(b) 1 mark per relevant point including financial (maximum 6 marks) and non-financial 12
(maximum 9 marks) analysis
(c) 1 mark per CSF; 1 mark per PI; 1 mark per source of information explained; (6 marks) 14
1 mark per relevant point for configuration up to maximum 8
(d) 1 mark per relevant point explaining how six sigma can be introduced including an 14
explanation of the DMAIC methodology to maximum 10 marks; 1 mark per relevant point
discussing impact on processes and people (maximum 6 marks)

Suggested solution
1 (a) Using Porter’s 5 Forces model to evaluate the sources of competition within the sector, the
five areas which would be examined include the threat of entry, the power of buyers, the
power of suppliers, the threat of substitutes, and competitive rivalry.
Threats from potential entrants
As well as the existing barriers which are already in place in the industry eg, government
policies and regulations, requirements of capital and technology and economies of scale,
there are fairly large barriers to entry protecting Fox plc from new entrants, especially to
the defence industry. Amongst these are the high capital start-up costs and the degree of
specialised knowledge required. Much of the business is likely to have been developed
through personal contacts with government officials – new entrants would have to develop
these, although this would only apply to overseas firms building up work in the UK. The
major threat of entry is from overseas, particularly suppliers from America and the Far East
on a low price approach.
Steps to counter competitive pressures exerted by the threat of new entrants include high
capital and R&D investments and the creation and maintaining of a strong brand image
and brand loyalty. Some companies form strategic alliances
Threats from substitutes
While there are unlikely to be many alternative products, the increased number of
overseas competitors means that a number of suppliers are available. Generally this threat
can be countered by good customer relationships, strong brand image and reputation and
strong advertising and promotions. Porter suggests competing on differentiation and
‘locking into’ customer strategies.
Threats from the power of buyers
This is the main consideration for the Fabrication Group, since at present it has lost its
main customer. That customer can now dictate price as well as choosing alternative
suppliers. The bargaining power of buyers may also be strong due to the availability of
choice and the sophistication of buyer needs and demands; this is further compounded by
the rate of technological developments that speeds up obsolescence. Strong bargaining
powers of buyers can be countered by competing on cost leadership and differentiation
strategies and ‘locking in’ buyers with high switching costs with long-term incentives as

4
 well as creating strong brand image and brand loyalty. For the new manager of the
Fabrication Group good customer relationship management will be very important.
Threats from the power of suppliers
Employees supplying skills and knowledge are likely to be the major factor for Fox and this
can be countered by good relationship management. For external threats, Porter suggests
backward integration and a strong market share – gained through a strong image and
reputation in the market
The threat of competitive rivalry
This examines the intensity of the competition and is influenced by factors such as entry
barriers influencing the number of competitors and exit barriers that will influence
competitive rivalry
Allowing other companies to bid for government contracts will increase the degree of
rivalry within the industry, although Porter suggests that while at a single point in time a
firm prefers less rivalry, over the long run more local rivalry is better since it puts pressure
on firms to innovate and improve. In fact, high local rivalry results in less global rivalry.
Local rivalry forces firms to move beyond basic advantages such as low factor costs that
the home country may enjoy.
Technological developments will also play an increasing role in having the potential to
change the state of play in an industry. In monitoring the state of technology, management
at Fox must be aware of government spending on research and industry focus of
technological effort. New discoveries/development, speed of technological transfer and
rates of obsolescence are also important issues.
(b) A corporate appraisal is a critical assessment of the strengths and weaknesses,
opportunities and threats (SWOT analysis) in relation to the internal and environmental
factors affecting an entity in order to establish its condition prior to the preparation of the
long-term plan. An appraisal of Fox plc might reveal the following:
Strengths are those positive factors or distinctive attributes or competencies that provide
a significant competitive advantage that the organisation can build on. Fox is an
established business in a specialist area with products that are functional and reliable,
competitively priced and with good technical support. The company is committed to R&D
and has sufficient funds. Another strength is the recently appointed managing director for
the Fabrications group
Weaknesses are negative aspects in the organisation eg, deficiencies in the present
competencies or resources, or its image or reputation, which limit its effectiveness and
which need to be corrected. Examples of weaknesses at Fox plc include a limited product
range, production scheduling problems that are leading to increasing waiting time for
customers and difficulties in retaining skilled labour and in recruiting new employees with
the education and skills necessary for advanced manufacturing. Customers are noting that
sales staff do not always provide them with the best solution/advice and there are
increased defects under current system. The technological advantage which has been
enjoyed in the past has now been eroded with competitors able to implement similar
manufacturing technologies.
Analysing the financial figures given for Fox shows a loss of market share has reduced
turnover by 42% from £26m in 20X3 to £15m in 20X6. Profits have fallen by 90% over the
same period, from £4.5m to £0.5m.
The deterioration in sales performance is most marked in the company's Fabrication
Group where turnover has fallen 60% from £17.0m to £6.8m compared to a fall of 9% from
£9.2m to £8.4m in the Titanium group..

5
 The firm has also suffered a substantial fall in profitability as measured by the net margin
between 20X3 and 20X6.
Period Turnover ‘000 Profit ‘000 Net margin %
20X3
Titanium Group 9,156 1,359 14.8
Fabrication Group 17,004 3,170 18.6
Total 26,160 4,529 17.3

20X6
Titanium Group 8,360 214 2.6
Fabrication Group 6,840 242 3.5
Total 15,200 456 3.0
The overall net margin has fallen from 17% to 3%, with the reduction in profitability being
greater for the Fabrication Group than for the Titanium Group. It is not possible to tell from
the available information whether this is due to downward pressure on prices or whether it
is caused by the rising unit costs resulting from a reduction in volume.
Opportunities are favourable conditions that usually arise from the nature of changes in
the external environment. For Fox plc these include a rapidly growing and expanding
market and good R&D, which fosters innovation.
Threats are the opposite of opportunities and also arise from external developments. Fox
has a small and vulnerable market share with major international competitors. The
approval process for government contracts may limit its growth.
(c) Critical success factors (CSFs) state what the organisation has to do correctly to meet the
overall mission objectives, and performance indicators (PIs) play a central role in defining
the organisations’ information system requirements. The achievement of a CSF can be
gauged from the combined achievement of its associated PIs. A major factor with regard to
PIs is that they are quantifiable and show specific targets that the organisation is trying to
achieve.
To address the problems associated with customer enquiries, orders and complaints,
management within the Fabrication Group will make customer satisfaction their priority and
concentrate on the key/critical success factors of quality – focusing on providing a quality
service; time – providing a speedier response to customer requests and ensuring 100%
on-time delivery; innovation – developing a steady stream of innovative new products and
having the flexibility to respond to customer requirements and cost efficiency – maintain
competitive pricing.
(Only two are required)
For the CSF to provide a quality service, the PI might be to reduce the number of
complaints by ‘N%’. The information required will include the previous number of
complaints and the current number of complaints.
For the CSF to improve customer-ordering service, the PI could be to ensure that all
customer orders are acknowledged within ‘N’ hours of receipt. The customer sales records
would provide the information required.
For the CSF to maintain customer satisfaction, the PI could be to ensure customer
enquiries are dealt with within ‘N’ hours of receipt. The information required would come
from a record of the customer enquiry, date time etc. and a record of the response to the
customer enquiry, date, time etc
For the CSF to maintain competitive pricing the PI would be to ensure that the Group’s
prices are ‘N%’ less than its competitors. The information would include the Fabrication
Group’s prices and the prices from competitors.

6
 For the CSF to create loyal customers, the PI could be the percentage of customers who
renew their contracts or re-order goods. The information would include customer renewal
and purchase order details.
Porter argued that to gain a competitive advantage over its rivals a company must either
perform value creation functions at a lower cost than its rivals or perform them in a way
that leads to differentiation and a premium price. To do either of these a company must
have a distinctive competence in one or more of its value creation functions.
Primary and support activities within the Fabrication Group may be reconfigured as
follows.
Firm infrastructure - being flexible to meet customers' needs and redesigned
around small teams of operators to work on jobs for specific customers
Human resource management - hiring quality and dedicated staff and installing
Support career path training in managing operating teams and developing customers
activities Technology development - invest in manufacturing, R&D and quality control
systems to assist the design and manufacturing process
Procurement - choosing suppliers who can deliver on time

Inbound Operations Outbound Marketing Service

logistics Innovative logistics and sales Concentrate
Just in time work carried Introduce Provide accurate on customer
systems to out by systems to information and reactions
lower costs quality staff allow develop contacts
and use of customers with potential
high quality to be kept customers ,
materials to informed stressing
produce goods regarding quality of work
free of defects their order

Primary activities
IT systems that will allow customers to be kept informed regarding the progress of their
orders and the expected delivery times are likely to assist the group in retaining its
customer base. If a customer can login to the system itself via Internet access to achieve
up-to-the-minute information regarding the progress of an individual order this provides a
much improved customer service than merely being told by email or telephone how their
order is progressing. It allows customers to plan around definite delivery dates and
improve their own efficiency and effectiveness.
The MIS can co-ordinate and integrate the customer relationship including all of the
activities involved in product information, expert advice, customer care and after sales
service. IS could also be used to up-date staff training.
(d) Six Sigma (6σ) is a quality management programme that for many organisations simply
means a measure of quality that strives for near perfection. It is taken to mean a failure
rate of 3.4 parts per million or 99.9997% perfect.
The objective of 6σ is to improve profits through variability and defect reduction, yield
improvement, improved consumer satisfaction and best-in-class product/ process
performance.
6σ is essentially based on three underlying facts – you can manage what you measure,
you can measure what you can define, and you can define what you understand.

7
The process can be applied within the Fabrication Group of Fox plc to rectify the quality
concerns identified. 6σ encourages the organisation to focus on what is absolutely critical
to the customer by improving quality and performance in the areas of greatest reward and
translating what is critical to customers into something measurable. The first step for the
management at Fox plc is to look at the customer interface and improve sensitivity to the
customer needs. This could mean identifying projects to change processes associated
with customer communications, marketing and service and product design. It might involve
redesigning the order fulfilment process – investigating the acquisition of resources,
reducing development and production costs and reducing the lead time between product
inception and commercial sale and delivery.
The secondary processes that may need re-engineering include the support services of
administration, finance and personnel management.
Any activity concerned with cost, timeliness, and quality of results can benefit from the 6σ
approach. Unlike other quality improvement efforts, 6σ uses a specific philosophy,
measure, and methodology to provide tangible savings that are directly traceable to the
bottom line.
The 6-Sigma Project Management method that will be used by the management at Fox plc
to focus on significant process improvements is DMAIC – Define, Measure, Analyse,
Improve and Control.
Define – identify a project and define the process goals in terms of key critical parameters
(i.e. critical to quality or critical to production) on the basis of customer requirements.
When a specific Six Sigma project is launched, the customer satisfaction goals have likely
been established and decomposed into sub-goals such as cycle time reduction, cost
reduction, or defect reduction.
The Define stage for the specific project calls for benchmarking the process to be
improved, decomposing the process into manageable sub-processes, further specifying
goals/sub-goals and establishing infrastructure to accomplish the goals. It also includes an
assessment of the cultural/organisational change that might be needed for success.
Measure the current performance of the process and collect relevant data on the process
and defects for future comparison. To improve the performance of the process, a measure
of what the customers consider critical about the organisation’s products or services must
be devised.
Common 6σ measures include defect rate (parts per million), sigma level, process
capability indices, defects per unit, and yield. Ultimately, reward is measured by increased
profitability and increased customer satisfaction.
Analyse how, why and when defects occur. The weakness of the process (such as
sources of defects) is also the opportunity for its improvement. A defect occurs when
variation in a product or service goes beyond the acceptable limits. It can only be identified
or detected in a product/service if there is a measurable benchmark or target.
The target must be set up on the basis of industry/competitor benchmarks and to exceed
customer expectations.
Improve the process by systematically reducing variation and eliminating defects.
Variation is present in the output(s) of every process. The degree of variation or the
distribution pattern of the output is a measure of process capability or maturity. The six key
process elements – people, environment, material, method, machinery, and measurement
impact variation. There is natural variation that always occurs and cannot be traced to a
specific cause. It is random within a predictable range or in other words, it follows a
distribution pattern. The natural variation reduction requires fundamental change in the
process. There is also special variation that occurs due to an assignable cause outside
the natural variation. It can easily be traced to a specific cause, usually relating to the 6
key process elements. Once detected, its removal is a relatively simple exercise.

8
Control the performance of the improved process to sustain its gains
The benefits of 6σ include a clear focus on activities and attributes that are absolutely
crucial to customers and the elimination of process variation and inconsistency.
It enables targeted improvements that provide the largest financial return on effort and can
be measured by increased profit, revenue, and customer satisfaction.
It encourages far-reaching shifts in company behaviour and the active participation of top
management.
Perhaps the greatest strength of the 6σ method is that it demands that a company begin
by identifying the defects that influence customer satisfaction the most. For each factor,
the company then determines an acceptable range and produces objective, measurable
results that can be monitored continuously.
Institutionalising Six Sigma into the fabric of a corporate culture can require significant
investment in training and infrastructure. After the 6σ projects are initiated, the Fabrication
Group should see itself as part of a longer value chain and organise along activity streams
(or processes) running through the business. The process triggers changes of many kinds
including job designs, organisational structures and management systems. Re-engineering
creates an organisational environment in which hierarchy is diminished, workers are more
skilled and structures are more flexible.

9
SECTION B

2 Jack McGowan
Marking scheme
(a) 1 mark per relevant point to maximum of 6 for benefits and 5 for concerns 9
(b) 1 mark per relevant justified recommendation 6
(c) 1 mark per relevant point. 8 max
Presentation logic and impact 2 max

Suggested solution
To: Managing Director of Zenith Finance Ltd – Jack McGowan
From: Independent business analyst
Report on developing an e-business strategy
Date: 29th June 20X7
Developing an e-business strategy
1. Terms of reference
This report was requested to provide the following information:
(a) The benefits of using e-business in a modern competitive environment, and some of the
potential concerns that the firm may encounter
(b) A suitable hardware and software infrastructure for developing and supporting the
proposed e-business strategy
(c) How the firm would need to re-evaluate its traditional marketing approach to successfully
e-market its service to its target customer base
2. The benefits and concerns of using e-business in a modern competitive environment
One of the major advantages of doing business online is the ability to expand market reach. A
little company now has the ability to reach markets far beyond its traditional vicinity while also
gaining access to markets beyond its current customer base.
Enhanced responsiveness is another benefit. Companies such as Dell, UPS, and FedEx now
allow both partners and consumers to check various facets of their transactions directly by logging
onto their Web sites.
In terms of visibility, the Internet gives the small- and medium-sized company a chance to level
the playing field to some extent. Each company is reduced to the common size of the customer’s
browser window. While creating the original web presence may not be inexpensive, the cost of
subsequent maintenance is minimal.
The Internet provides cost advantages for businesses in being able to update information, post
features, and simply maintain a site that is perennially current at a minimal cost and time lag. It
also provides cost reductions – businesses realise enormous cost savings by moving services
online. Examples include customer service centres, online tracking of packages and online
brokerages. The ability to digitise offerings and provide products/services on demand has lead
business to realise two allied goals of enhanced service at a reduced cost of product, support, and
service

10
 Today’s software developments give businesses the ability to customise the entire web site for
each single user with no incremental costs. Mass-customisations allow the marketer the ability to
create web pages, products, and services that suit the requirements of the user.
Potential concerns associated with e-business include channel conflict and competition. The Web
is a brand new medium that offers businesses completely new opportunities. The traditional
business channels fear that disintermediation will compromise their role and in some instances
their very existence. The advent of shopping bots (search engines for gathering prices for
products from a variety of vendors) has intensified competition and forces businesses to compete
on the basis of creating a sustainable competitive advantage.
Another of the manifestations of using the technology of the Web has been the ease with which
consumers can navigate the web in order to satisfy their needs and wants.
Other concerns include the copyright and legal environment and security and privacy issues. Any
information that has been published on the Internet is susceptible to being replicated. The rules
governing the Internet are being determined and hence the rights of a Web entrepreneur are
being defined with the development of the Internet itself.
Security of financial transactions cannot be completely guaranteed and numerous options in
encryption technologies are beginning to address this concern.
The potential abuses of data collected on the Web have been well documented in the literature.
The one certainty that prevails today is that consumers need to be informed of the data collection
activities of a firm and the use/trading of such data must be by consent of the consumer.
3. A suitable hardware and software infrastructure for developing and supporting the
proposed e-business strategy
E-commerce and e-business can be simply defined as conducting business transactions over
electronic networks by way of linked computer systems. They are now synonymous with the
Internet. The Internet refers to the physical aspects of the system, such as the communication
lines, computers (often known as ‘Web servers’) and the software required for communication.
The term ‘world-wide web’ (www) refers to the Internet software tool for network navigation.
To support the proposed e-business strategy a suitable hardware and software infrastructure
would need to be implemented at Zenith Finance. This would include powerful PCs or servers
capable of handling web traffic with space to store files, modems that work at a high transmission
rate, software that permits the computers to send data across a modem, a telephone point and
connection through an Internet Service Provider eg, CompuServe and AOL.
Electronic mail, electronic conferencing, educational and chat services are all supported across
the network, as is the ability to access remote computers and send and retrieve files.
Users – private or corporate – can communicate with web-based online stores and companies
using a web browser such as Microsoft Explorer or Netscape Communicator.
An Internet store provides all the facilities a customer needs, including a product or service
catalogue, a virtual shopping basket, and a secure credit card payment system. Shopping cart
software allows the customer to pick items, keep a running total, amend their order and calculate
delivery charges, VAT and so on.
Organisations can link their LANs and WANs to create networks that link entire enterprises.
Enterprise networks can link desktop workstations to the networks of other organisations or to the
Internet.
Most e-businesses need to access, store, retrieve, amend, and generate data in a wide variety of
formats. A database is defined as a collection of information that is organised so that the required
information can be quickly retrieved, amended if necessary, and then the electronic image
updated.

11
 An e-commerce enabled website must include mechanisms for customers to enter information
such as their name, address, and credit card number. This information is then stored in a
database. Website developers create forms for customers to complete. Most electronic forms
comprise text boxes combined with drop-down lists to simplify tasks for the customer and to avoid
transcription errors where possible.
4. E marketing and the traditional marketing approach
The challenge for marketing organisations is to determine how the Internet fits in with traditional
marketing models (such as the 4P marketing mix). The Internet is not a replacement for traditional
activities but rather a complementary activity that can assist the organisation in achieving its
marketing objectives.
The success of Internet activities still rely on traditional marketing techniques, such as advertising,
promotion, and public relations, for these activities draw attention to a company’s Internet
operations. Therefore, all companies that engage in traditional forms of communication must
include their web site address in order to encourage visits to their site.
The key marketing functions that the Internet can perform include communicating essential
information about the company and its brands. Such information may have a financial orientation
to help attract potential investors, or it may focus on the unique features and benefits of its product
lines.
With the amount of advertising being devoted to the Internet increasing each year, the frequency
of visits to a site will also increase. Consequently, a web site will play a more prominent role in
building brand image. Online communications should therefore be similar in appearance and style
to communications in the traditional media so as to present a consistent brand image.
Many sites offer discounts and incentives for purchasing online. Electronic coupons, bonus offers,
and contests are now quite common. Such offers are intended to stimulate immediate purchase
before a visitor leaves a web site and encourage repeat visits.
In terms of lead generation, the Internet is an interactive medium. Visitors to a site leave useful
information behind when they fill in boxes requesting more information (e.g., name, address,
telephone number, and e-mail address). A site may also ask for demographic information that can
be added to the company’s database. This information is retained for future mailings about similar
offers, or they can be turned over to a sales force for follow-up if it is a business-to-business
marketing situation.
In any form of marketing, customer service is important. Satisfied customers hold positive
attitudes about a company and are apt to return to buy more goods. Right now, customer service
is perceived as a weak link in Internet marketing.
Customers are concerned about who they should call for technical assistance or what process to
follow should goods need to be returned. Some customer service tactics commonly used include
frequently asked questions (FAQs) and return e-mail systems. It is apparent that organisations will
have to spend more time and money developing effective customer service systems. The lack of
human involvement is, perhaps, something that e-customers will have to get used to.
Firms are capable of selling online if the web site is user-friendly. Sites that are difficult to navigate
create frustration in visitors. Presently, the business-to-business market is booming with business
transactions. Firms in the supply chain are linking together to achieve efficiencies in the buying-
selling process. Consumer buying has yet to take off, but it is only a matter of time before rapid
growth will occur.
Research indicates that the Internet will increasingly become more of a medium that consumers
use to conduct research about a product. So, if the consumer does not buy online, the Internet will
play an influencing role in purchases that are made in stores. The Internet will drive sales in
traditional channels.

12
 5. Conclusion
This report began by identifying the benefits of using e-business in a modern competitive
environment, and some of the potential concerns that the firm may encounter. It continued by
suggesting a wide range of hardware and software that might be implemented when developing
and supporting a proposed e-business strategy.
The last part of the report outlined how the firm would need to re-evaluate its traditional marketing
approach to successfully e-market its service to its target customer base

3 Henry McDougall
Marking scheme
(a) 1 mark per relevant point 5
(b) 1 mark per relevant problem explained (maximum 8); 1 mark per relevant point relating to 12
actions to address problems (maximum 6)
(c) 1 mark per relevant point. 8

Suggested solution
(a) Projects generally arise for strategic or efficiency reasons, that is, to improve the competitive
advantage of an organisation or improve its productivity. The Business Case is used to obtain
management commitment and approval for investment in the business change project. It provides
a framework for the planning, management and ongoing viability of the project.
To ensure the strategic fit of the project, management must first describe the business need and
its contribution to the organisation’s business strategy as well as the objectives. Further
justifications will include the reason why it is needed at the present time and the key benefits to be
realised. It is also very important to understand what the critical success factors are and how they
will be measured.
To be effective, information systems development projects should be aimed at supporting the
organisation’s mission and be designed and implemented in accordance with the overall business
strategy. It is vital that the scheduled projects should reflect and support the business priorities of
the organisation rather than reacting to ad hoc requests for local developments.
The main objective of project management is to deliver quality solutions that improve
effectiveness, reduce errors and costs, with the appropriate implementation of risk management
and internal controls. This includes the assurance that each project, when initially conceived and
authorised, supports the organisation's approved higher level strategic objectives and contains
acceptable risks regarding the project's objectives such as aspects of competitiveness, technical,
cost and schedule. It should be closely linked to the strategic management of the organisation.
The project must also meet the related strategic objective by producing the specified results on
schedule and within budget.
A project manager should plan, control and lead each project simultaneously with all other
projects effectively and efficiently so that each will achieve its approved objectives.
(b) Projects have well-defined conclusions. A goal is to be achieved, and then the project will be over.
The special management problems consequent on this include planning, interface, team
management and control problems and possible solutions are as follows.
Planning problems
If a project is to achieve a definite goal within a reasonable time and at a reasonable cost, the
objective cannot be allowed to emerge over the course of the project: it must be clearly defined
from the start. Thorough discussions are necessary to ensure that the objective is understood by

13
 the project manager. The manager must then communicate the objective to the team, so that
everyone understands that they must not get diverted into work which will not help to achieve the
objective.
Once the objective has been defined, the route to achieving it must be carefully planned.
Techniques such as bar charts and networks can be helpful, but with a large project it may not be
possible to foresee all the ways in which tasks will depend on each other. Unforeseen tasks may
also arise, particularly if novel technology is being used. For example, a component may turn out
not to perform as anticipated, so that time must be spent improving it, delaying the project as a
whole. Reasonable margins of safety should be built into the planned duration and the budget, but
there is then the problem of preventing team members from allowing planned work to fall behind
schedule or run over budget because they know that slack has been allowed for.
Interface problems
A project team will normally work outside the client's management structure, and the client's
managers may resent this. Tact in dealing with such managers is clearly necessary, and it is also
helpful if the most senior management of the client issues a clear statement of the project team's
role, their accountability to the client's management and their powers. Because of the position of
the team outside the management structure, it is often better if the project manager is an outsider
rather than one of the client's employees.
Team management problems
It is important to maintain the commitment of all members of the team to the project, even in the
face of setbacks. In many projects, there are no real benefits before completion, but employees
like to see the results of their work quickly. It may be worth creating interim goals which can be
presented as achievements, simply to satisfy this desire.
Tensions may also develop within the team, particularly if some team members feel that others
are not pulling their weight. In most projects, each member of the team relies on the work of
others to facilitate their own work. Close monitoring by the project manager to ensure that
everyone maintains the right level of effort is therefore important.
Control problems
A project should achieve its objective within the planned time and budget. It is not like the
continuous provision of a service, where a temporary reduction in the level of service might be
acceptable. Once deadlines start being missed, the problem can rapidly escalate because of the
interdependence of tasks. The remedy is to take decisive remedial action as soon as problems
start to develop, bringing in extra staff for a short period if necessary.
(c) The project management software can support the project manager in planning, estimating,
maintaining and reporting.
Planning and estimating: the software will automatically produce the critical path of the project. If
the project manager enters the duration and precedence of project activities then the software can
automatically produce the project network and define the critical path of the project. This will
identify the critical activities for the project manager, the activities that need to be delivered on
time to achieve the required overall duration of the project. The project manager will need to
carefully allocate and closely monitor these critical activities.
Maintaining: the software will update projected values with actual values. The actual duration of
project activities may be entered by the project manager. This may lead to updates in the project
plan, which can be reprinted by the project manager and distributed to the project team and the
sponsor. Such reports are quick and easy to produce, thereby freeing time for other management
tasks.

14
 Reporting: the software automatically produces project costs and cost analysis. If the project
manager enters resource costs (for example an analyst costs £450 per day) then the software
produces a projected cost for the whole project based on the estimated activity durations. If actual
durations are entered then the software can calculate actual costs and compare these with the
projections. This allows the project manager to monitor the actual and projected costs and to
communicate these to the project sponsor.

4 Freshen Up
Marking scheme
(a) 1 mark per relevant point 7
(b) 1 mark per point made in each category 6
(c) 1 mark per relevant point to a maximum of 5 for each option evaluated. 12

Suggested solution
(a) Porter’s theory of the competitive advantage of nations takes as its key a ‘diamond’ of factors that
make some nations (and consequently their industries) more competitive than others. The four
points of this diamond are:
(i) Favourable factor conditions
These are a country’s endowment of inputs to production, which include physical
resources, human resources such as skills, motivation, price and industrial relations,
knowledge that can be used effectively and infrastructure.
As well as the factor conditions outlined above, Freshen Up should consider the issues of
managing within different cultures, financial issues relating to the factors of production,
foreign exchange management and expertise in managing taxation issues. Porter found
that countries that had factor disadvantages were forced to innovate to overcome these
problems. This innovation has been the basis of competitive advantage eg, where nations
experienced high-energy costs they were forced to develop energy-efficient products and
processes, which were subsequently demanded worldwide.
(ii) Demand conditions
From the scenario we know that Freshen Up has traded very successfully in its domestic
country for many years, building up its reputation for quality and reliability. Assuming
transferability of its products internationally, Freshen Up needs to assess the impact that
international development could have on their domestic market eg, will it divert resources
away from quality enhancement?
(iii) Related and supporting industries – the success of an industry can be due to its
suppliers and related industries. For a company to achieve global superiority it must be
supported by a network of related industries, which provide expertise and high standards
of service eg, packaging and distribution. Issues such as whether it will use its own
suppliers, or new ones from within its international market, to provide support for the
international development, will need to be addressed. Freshen Up will need to be able to
control its international production and distribution so will require excellent communication
networks.
(iv) Firm strategy, structure and rivalry – organisational goals can be determined by
ownership structure. Smaller companies may have slightly longer time horizons to operate
in because their shares are not traded as much as larger organisations. They might also
have different return on capital requirements.

15
 Porter also looked at the Diamond as a system and how the effect of one point depends on the
others. For example, factor disadvantages will not lead firms to innovate unless there is sufficient
rivalry and a high level of rivalry often leads to the formation of unique specialised factors.
The government plays an important role in Porter’s diamond model. It can influence all four of
Porter’s determinants through a variety of actions such as favourable tax rates to organisations,
regulation and deregulation of capital markets and foreign exchange controls, education and
training policies that affect the skill level of workers and the government’s purchase of goods and
services.
(b) International influences – PEST(LE) analysis
The increasing acknowledgement of the significance of environmental factors has led to
Environment becoming a further general category, hence 'PESTLE analysis' becoming an
increasingly used and recognised term, replacing the traditional ‘PEST’ analysis.
P – Political issues include areas such as the levels of corporate, personal, excise and indirect
taxes in different countries, employment laws, the extent of protectionism against imports (quotas
and trade control regulations) and political stability issues include the stability and the conditions
in individual overseas markets or sources of supply, e.g. people being taken as hostages in
certain countries does nothing for travel companies visiting those countries. Relationship between
governments is another factor, as is the activities of supra-national institutions e.g. EU regulations
on product standards.
E – Economic factors include the overall level of economic activity, the relative levels of inflation
at home and abroad, the exchange rate and the relative prosperity and growth in overseas
markets.
S – Social and cultural aspects include the different ways of doing business in overseas markets,
the cultures and practices of overseas customers and the media and distribution systems.
T – Technological factors include elements such as R&D activity, automation, technology
incentives and the rate of technological change and of obsolescence. Technology relates to an
organisation’s access to domestic and overseas patents and intellectual property protection. It
has a bearing on the degree to which an organisation can imitate the technology of its competitors
and on the technology transfer requirements. The technological factors also include ecological
and environmental aspects and can determine the barriers to entry, minimum efficient production
level and influence outsourcing decisions.
L – Legal factors include International/European Agreement/Law, Employment Law, Health &
Safety Law, Competition Law and Regional legislation
E – Environmental factors include environmental legislation and regulations, energy consumption
and waste disposal
The items outlined above are of limited value if they are merely seen as a listing of influences. It is
therefore important that the implications of the factors are understood. It may be possible to
identify a number of structural drivers of change, which are forces likely to affect the structure of
an industry, sector or market. It will be the combined effect of some of these separate factors that
will be important, rather than the factors separately. A good example can be found in the forces
which are leading to increased globalisation of industries and markets.
(c) Growth strategies
There are three methods in which a strategy can be developed – by organic growth, by acquisition
or by a joint development.
(i) With organic growth, Freshen Up would develop strategies using their own resources and
competences. The benefits associated with this approach include the ability to concentrate
production in the UK, giving economies of scale and consistent product quality. The risks
of overseas production associated with operating costs, overheads and personnel
requirements can be avoided. With this type of growth, the company uses its own core

16
 competences and is reliant on no other party. In developing the strategies itself the costs
incurred by Freshen Up may be higher than if with a partner but the spread of these costs
may be more favourable and realistic. Organic growth is usually associated with a slower
pace of change – bringing less disruption to the organisation and its activities; any profits
made by the company will be kept entirely by Freshen Up and will not have to be shared
with any partner or associate. There are fewer problems of integration or cultural
differences that might occur when dealing with strategic alliances or acquisitions; control is
more in the hands of the company.
(ii) Acquisitions also have their benefits. They can often be financed by the issue of new
shares in exchange for those of the target company, with little money changing hands. If
Freshen Up needs to move quickly an acquisition will enable it to obtain the expertise and
resources necessary much faster than it could hope for if the development had to be ‘in-
house’.
It can prove to be a more effective means of development when a company has little
knowledge or expertise in a proposed diversification strategy. Freshen Up would find it
very effective if the start-up costs were going to be high, it may be cheaper than building
from the start.
Where there are likely to be barriers to entry – such as capital cost and knowledge, access
to distribution outlets, obtaining licences or building an appropriate brand identity, then the
best means of accessing the market may be by way of an acquisition.
The problems associated with acquisitions involve finding the right firm that is agreeable to
a deal, negotiating a fair price and integrating activities in the post acquisition phase.
(iii) A joint development would mean that Freshen Up would join forces with an overseas firm
for manufacturing, financial and marketing purposes, each having a share in the equity
and the management of the business. This may be advisable if the partner can bring to the
alliance benefits which Freshen Up currently lacks. It would be particularly appropriate if
they decide to pursue a strategy of manufacturing in one of the South East Asian
countries.
Expansion can be achieved more rapidly and with less initial capital outlay with a
manufacturing plant already in operation. There is also a shared risk, limiting Freshen Up’s
exposure in case of an unfavourable outcome. Some governments discourage foreign
firms setting up independent operations but welcome joint ventures/strategic alliances
because they transfer know-how and technology and bring long-term benefits to the
industrialisation of the host country.
Freshen Up can use the specialist knowledge of the partner: in this case it could be a
Malaysian, Philippine or Thai partner’s knowledge of market conditions and its access to
appropriate distribution channels. Having host country alliances may improve sales and
using a local partner can provide a ‘goodwill’ factor which may not be there with a direct
entry without local support; the partner will often make the joint venture a ‘politically
acceptable’ deal.
Freshen Up will get access to the market more quickly than if it followed an organic
development strategy; by joining a partnership Freshen Up will avoid this indigenous
competitor.
The major problem with joint ventures is that there is a lack of flexibility with decision-
making which may cause conflicts of interest. Disagreements may arise over corporate
objectives, management and control, profit shares, amounts invested, marketing strategy
and quality issues.

17
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