案例分析题Tramor

案例分析题RMBE is licensed to operate a high-speed rail network directly linking several cities in the large country of Vinland

案例分析题Retail World (RW) is a major international retail chain, selling groceries, clothing, electronic items, toiletries and homeware items. It has grown rapidly across a number of different countries, offering a broad product range to suit a wide range of customer segments. Growth has been through the expansion of existing stores, in addition to the opening of new stores. The new finance director, whose background is in a non-retail environment, is keen to understand the sales trends of the organisation, as well as the industry, in order to help develop a strategy which can take advantage of these trends in the future. A business analyst has provided summarised internal sales data for this purpose. The companys IT systems are fully integrated and associated controls are rigorous, allowing the data to be manipulated in many ways. The analyst has provided time series analysis (Figure 1) and regression analysis (Figures 2 and 3). He wanted to explore the possibility of identifying different causal relationships, carrying out least squares regression analysis linking sales to both time (Figure 2) and number of stores in operation (Figure 3). The number of stores has grown annually and the analyst believes that this is a better indicator of the expected future revenue than simply the passage of time. The average number of stores expected to be in operation in 2017 is 3,700 rising to 4,000 in 2018. Notes: (1) Svar is the expected seasonal variation, calculated by averaging the variations of each quarter (2) Sadj is the sales total, adjusted for average seasonal variation. Figure 2 Least squares regression analysis (time) An extract of the values used in the calculation of this is shown below. This illustrates the basis of the regression analysis. All values were used in the calculation of the least squares regression formula. Figure 3 Least squares regression analysis (number of stores) The values used in the calculation of this are shown below: The finance director was interested to receive the analysis, saying, We can use this to estimate what our revenues might be in the future, both quarterly and annually. However, he also stated that it was not quite as useful as he would have hoped for, commenting, I have been hearing a lot about big data at industry meetings I have attended. I think we should investigate the ways in which we could use this, and the benefits we might hope to obtain from it. Required:

案例分析题Section B TWO questions ONLY to be attempted TR Co is a well-established public limited company listed on the national stock exchange of a western European country

案例分析题Section B TWO questions ONLY to be attempted NCBT plc is a diversified business formed through a merger of Nairo Consumer Electronics and Birit Technology in 1990. NCBT is the holding company for many subsidiaries in a variety of industry sectors including insurance, financial services, clothing manufacture, farming and fertilisers. The company is undertaking a strategic review of three of its subsidiaries: Swiftdale Farms, CCB Insurance and Pait Technology. Data for the three companies has been provided for this review, as shown in Figure 1. Figure 1 Financial data for three subsidiaries 20142016 Swiftdale Farms this was NCBTs first acquisition in 1994. NCBT had been a success story in the 1990s technology boom and had a surplus of cash and a number of shareholders looking for growth in the value of their shareholding. In 1994, the farming industry was faced with a number of threats and Swiftdale Farms was opportunistically acquired for what was considered to be a low price. At the time of the acquisition, the board of NCBT was aware that they had little knowledge of the farming industry but it felt that the managers of Swiftdale Farms were capable and just needed some encouragement. They offered financial incentives for good performance, and provided financial resources to assist in the growth of the subsidiary. This initially worked well, but the company performance started to decline in 2010 and NCBT stopped providing financial resources, as they felt they were not being used to add value. In 2016, Swiftdale Farms nearest competitor held 154% market share. CCB Insurance this was acquired in 2011 as NCBT recognised the rapid development of the insurance industry in its home market and also the high margins being earned. CCB Insurance was a relatively new listing on the stock market and the board of NCBT commissioned a broker to buy shares aggressively on its behalf, so that it acquired a controlling stake. NCBT felt justified in its actions as the share price rose rapidly after acquisition. CCB Insurance has continued to grow with little involvement from NCBT but is now struggling to manage its growth, failing to recruit sufficient new staff or to provide enough office space to cope with its growing operations. It operates in an industry where there are relatively few larger firms and hundreds of smaller companies and where the market leader holds 12% of the market. The economy in which CCB Insurance operates is growing at a rate of approximately 2% every year. Pait Technology this is the most recent acquisition, having taken place in 2014. The company manufactures consumer electronics, similar to both of the founding companies of NCBT. It operates in a different country where the industry is just starting to develop and grow, the way it did for NCBT in the 1990s. NCBT has other subsidiaries situated in this country. The management of Pait Technology are highly knowledgeable about their customers and industry and the company has a good brand name with high recognition. Its nearest competitor has an 8% market share. Required:

案例分析题Section A This ONE question is compulsory and must be attempted The National Football Association (NFA) is the governing body of the game of football in the country of Geeland and is tasked with administering the rules of the game

案例分析题Section A This ONE question is compulsory and MUST be attempted Introduction QTP Co produces timber framed windows for builders merchants, property builders and property maintenance companies. It does not sell windows directly to the general public. Members of the general public (and small building companies) can buy QTP windows through the builders merchants supplied by QTP. These builders merchants supply a wide range of products for property maintenance and improvement. They are usually located in large warehouse premises on the outskirts of towns and cities. There are three primary raw materials (or components) for the windows which QTP makes. Timber (wood) which it orders from timber suppliers. Worldwide demand for timber is increasing and timber prices are relatively high and supply of some of the specialist timber which QTP requires is often in short supply. Glass which it orders from specialist glass manufacturers. Fittings, such as bolts, latches, handles, etc which it sources from a number of small specialist producers. QTP has a number of departments. This scenario considers just five of these departments and each of these departments is exactly aligned with activities of the value chain. They are: Inbound logistics and procurement Production Outbound logistics Marketing and sales Service Production takes place on one dedicated production line where one machine (and supporting labour) undertakes all the tasks concerned with converting the components into the finished windows. There are no plans to buy a second machine or open up a second production line. Production takes place from 08.00 to 17.00 (nine hours). Although employees take breaks, these are organised so that the production line is always staffed. It is not possible, because of technical and environmental constraints, to extend the working day or organise a night shift. The company is effectively restricted to a nine-hour working day. Setting up and setting down of the machine has to take place within this nine-hour day. Outbound logistics has a small fleet of vehicles which are used to deliver finished windows to the customer. Effective scheduling of this fleet is currently a problem and vehicle maintenance is becoming more expensive as the vehicles get older. Standard and bespoke windows The company offers both standard windows and bespoke windows. Standard windows are made to a specification decided by QTP and they are produced to inventory. These windows are advertised in the companys catalogue and on its website. Customer orders for these windows are supplied from inventory and next day delivery is promised. The production of these windows is based on sales forecasts made by the marketing and sales department. These forecasts are used by the inbound logistics and procurement department to place orders for the raw materials for the windows. Because relatively large orders for components are placed in advance, QTP usually obtains significant discounts on published component prices. Bespoke windows are produced to a specification required by the customer, usually resulting from consultation and negotiation between the marketing and sales department and the customer. They are made to exactly fit the customers needs, in terms of timber type and quality, glass specification, window size and types of fitting. The marketing and sales department provides the customer with a proposed delivery date. A copy of the order, and the proposed delivery date, is also given to the production department, so that they can schedule the making of the windows and to inbound logistics and procurement so that they can order specific components for the windows. At present, there is often a conflict between the production of standard and bespoke windows. It is essential that QTP achieves the promised delivery date for bespoke orders. To achieve this, it is often necessary for scheduled runs of standard windows to be postponed so that bespoke windows can be produced. This leads to less efficient use of the machine and labour (due to set up and set down time) and also to components for standard windows being held in inventory for longer than planned. Furthermore, component prices for bespoke orders are usually higher, reflecting smaller volumes and the need to fulfil tight deadlines. Bespoke window production and delivery to customers usuallytakes place as quickly as possible, to ensure that promised deadlines are met and inventory storage of finished windows minimised. In the past, it was possible for bespoke orders to use common components bought in for standard windows. However, this led to continual disruption of the production of standard windows and now components for standard and bespoke orders are kept quite separate and are stored in different areas of the warehouse. In general, the marketing and sales department prefers to make bespoke sales, rather than sales of the standard windows. They believe that bespoke windows provide exactly what the customer wants and this distinguishes QTP from its competitors who are more focused on selling standard windows. Unlike these competitors, the marketing and sales department at QTP contains staff who are experienced in window design and applications and customers value this. There is evidence that some important customers purchase their standard windows from QTP even though they could buy similar windows cheaper elsewhere, because they value QTPs flexibility in supplying them with bespoke windows. The marketing and sales director claims that, we have sales people who really understand windows and what customers want and need. We are not trying to sell them windows off-the-shelf, just because we have them in inventory. Furthermore marketing and sales staff claim that bespoke windows deliver higher revenue and higher profit to QTP than standard windows. However, this is challenged by the production manager who would prefer production to be focused on standard windows. Sales staff are currently rewarded on the basis of average revenue per window. At present, approximately 30% of QTPs sales volume is for bespoke windows, but this share is increasing annually. Table One shows selected data for the production of standard and bespoke windows. Table One: Selected QTP data: standard window and bespoke window production Note (1) Transport costs concern distribution costs of finished goods to customers. Costs of inbound components are borne by the supplier. Note (2) Time taken to set up the machine for a single production run of windows to one specification. Note (3) Time taken to set down the machine (resetting parameters, cleaning, etc) from a single production run of windows to one specification. Note (4) Time of a single production run of windows to one specification. Important: The machine is restricted to a nine-hour working day. Set up time and set down time must be within this nine-hour working day. Management concerns Senior management at QTP is exploring the possibility of moving the company to solely standard window production OR solely bespoke window production. They are also investigating issues in the five departments which are aligned to the activities of the value chain. They previously employed a business analyst who provided them with an analysis of the service department at QTP, documented in Appendix 1. Management has engaged you as her successor and they now require similar analyses for the remaining four departments. Appendix 1: Analysis of service department in the value chain Required: QTP management would like you to prepare a briefing paper which:

案例分析题Section B TWO questions ONLY to be attempted Honey bees are a vital natural resource which work hard to pollinate hundreds of different crops, but it has been observed in recent years that they have started to disappear at an alarming rate

案例分析题Section A This ONE question is compulsory and MUST be attempted The company The Fidelity Model Corporation (FMC) produces high quality model kits of locomotives, ships and aircraft. These kits contain plastic, metal and glass parts and are bought and constructed by enthusiastic hobby modellers. Many of these modellers customise the kits during construction to ensure that the final model accurately reflects the real prototype which they wish to represent. The model kits are relatively expensive and the price reflects the accuracy, detail, quality and size of the kits. The average price for an FMC kit is $500 and it is estimated that, on average, an FMC customer buys and constructs two FMC models a year. The dealer network FMC does not sell its model kits directly to the public. It sells them through appointed dealers who are independent, specialist model shops, often owned and managed by enthusiastic modellers. These shops sell a range of kits, including the kits produced by FMCs main competitor, Barnhoff. FMC mandates a minimum price which dealers must charge for its kits. This is designed to prevent dealers from undercutting each other. This minimum price reflects a dealer margin of approximately a third of the price. So, for example, a product with a minimum price to the customer of $520 would be sold to the dealer, by FMC, for $390. The model shops are important social hubs for the modelling community. Often modellers visit the shops to discuss issues and view product releases with other modellers. It is the model shops which demonstrate the products to prospective customers, provide assistance in construction, trouble shoot any problems with the finished model and liaise with FMC to resolve any outstanding issues which they cannot address. Pete Waterless, a high profile celebrity modeller, put it succinctly in a recent television documentary. We modellers are a solitary lot. We sit alone in our workshops constructing complex models. Sometimes we just have to go down the local model shop to see some fellow humans and seek advice and solace. Often we need a little bit of help to build the model. We sit for hours in the shop looking at models and talking about models. Most normal people think we are very boring and, in truth, we are! FMC customer profile In an attempt to better understand its end customers, the people who actually buy its kits from the dealers, FMC recently commissioned a customer survey. For two weeks in May, selected dealers were asked to record the age of customers buying FMC products in their shops. Table 1 shows the results of this survey. For example, 45% of customers were males aged 60 to 79. Table 1: Age and gender distribution of customers buying FMC products The structure of the company The board of FMC consists of the chief executive officer (CEO), the production director, the sales and marketing director and the finance director. The current CEO was appointed in 2005. He has considerable experience of the model kit market place. The production director heads up the production department where components for the model kits are fabricated and packaged. There are four teams of ten people in this department, with each team led by a team leader who reports to the production director. There is also a quality control department of three people with a quality supervisor who reports to the production director. This quality team was established in 2007 by the previous production director to address product quality issues which were affecting the profitability and reputation of the company at that time. The production director responsible for this initiative has recently retired and a former team leader has been promoted to replace him. The logistics manager is also located in this department. He has a team of 12 drivers and six vehicles which are used to deliver the kits to the dealer network. The sales and marketing director leads a sales team of nine people who are responsible for servicing the dealer network. Each sales person in this team liaises with between 10 and 15 dealers, depending upon the size of the geographical area they support. The sales team regularly visits every dealer to promote the company, explain changesin the model range and to deliver promotional brochures and display advertising. They also provide the dealers with completed kits of selected models so that these can be shown to customers. They are responsible for taking orders from dealers and liaising with production to fulfil these orders. All of the sales team have built up close relationships with the dealers who they are responsible for and many regard the dealers as personal friends. A small marketing team of three people also reports to the sales and marketing director. One of these people is responsible for national brand promotion, one is concerned with the production of brochures and display advertising and one is responsible for information technology in the company, including the maintenance of the website. The current website provides information about the companys products and a list of dealers where these products can be bought. The sales and marketing director who led a review of the product range in 2007 has recently left the company. A new sales and marketing director has been promoted from within. She was previously responsible for national brand promotion. The finance director heads a small team of four people. Two are responsible for accounts payable and two for accounts receivable. Dealers pay for the inventory they have ordered a month in arrears. For example, they pay for all products delivered in March at the end of April. So, only one sales invoice is raised per month for each dealer. The current finance director has been in post since 2011. Most FMC employees have been with the company a long time. They are aware of a recent fall in revenue but believe that this is a temporary problem and little cause for long-term alarm. After all, said one, we had similar problems in 2007. However, improvements in quality and a revamp of the product range soon improved things. The Change Agents (TCA) The Change Agents (TCA) is a small management consultancy aimed at delivering real, sustainable change in organisations. The board of FMC is concerned about the decline in sales revenue and net profit (see Appendix A) and has commissioned TCA to submit a proposal for addressing this decline. The management summary of TCAs proposal is included as Appendix B. In brief, it suggests a radical change in the business model of FMC. It proposes that FMC should sell directly to the end customer via the internet and abandon the dealer network completely. Some of the recommendations of this proposal are based on an interpretation of financial information for FMC for selected years since 2007 ( Appendix A). Appropriate industry averages for financial performance for FMCs industry classification (light engineering specialist) are shown in Table 2. Table 2 Selected industry averages for FMCs industry sector (light engineering specialist) A balanced response When TCAs proposal was presented to the board, most of the directors were shocked and rejected it immediately as impractical. The sales and marketing director cited the recent customer survey, saying most of our customers are elderly, retired men. I dont see them using the internet to buy things. The production director added that he had read that older people were particularly worried about the security and fraud aspects of internet use. However, the CEO wanted a more balanced view and has asked you, as an independent business analyst, to write a report which: Analyses the context of strategic change from the perspective of selected features of the Balogun and Hope Hailey contextual features model. He notes that TCA makes some reference to this model in its proposal and so he is keen to use it as a basis for analysing the implications of the proposed strategic change. Evaluates the implications of the POPIT four view model for understanding how the business will be changed by the TCA proposal. He is concerned that the company takes a holistic approach to business change. Identifies and assesses likely barriers to moving to the proposed business model from the perspective of the customer. He wishes to understand what factors may prevent or deter current customers from becoming direct internet customers of FCA. Appendix A Financial performance for FMC for selected years in the period 2007 to 2016 Extract from financial statements All figures in $000s Appendix B Management summary provided by TCA We were asked by the board of FMC to review its business model, particularly in the light of declining revenues and profit. This appendix summarises the main points of our response to the board of FMC. 1. Our analysis of the financial data of the company (Appendix A) suggests that urgent change is required at FMC to address the financial performance of the company. 2. We suggest that selling products through a dealer network is no longer viable. It represents a buying process which is rapidly declining in the commercial market place. We suggest that FMC sells its products directly to end customers and, to avoid competing with itself, no longer provides products through a dealer network. 3. FMC has to recognise that 90% of the country now has broadband coverage and that purchases made over the internet are increasing, whilst off-line purchasing remains static. 4. Selling products directly to end customers will increase customer reach, increase profit margins and improve cash flow. Eliminating the dealer margin allows FMC to consider cutting prices whilst at the same time increasing margin. 5. Strategic change will be technology-led. The company will require a fully functional e-commerce system allowing customers to browse, order and pay for products and track their orders. Payment will be made on ordering using credit and debit cards. 6. TCA has considerable experience in technology-led change and also capabilities in change management. Our view is that revolutionary change, in terms of the Balogun and Hope Hailey model, is required at FMC. We would be delighted to assist FMC in this revolutionary change, moving FMC from its present traditional business model to a contemporary e-business model. Required: Write the report required by the CEO. This report should:

案例分析题Section A This ONE question is compulsory and MUST be attempted Introduction Man Lal relaxed in business class as the aircraft skimmed across the Uril Mountains. Generally he considered himself a contented man. He had successfully built his company, Ling, to be the largest light bulb manufacturing company in the world, with global revenues of $750m. From its factories in Lindisztan it supplied a worldwide market for LED (light emitting diodes) light bulbs. Lal congratulated himself on the fact that he had quickly spotted the potential of LED light bulbs and had entered large-scale production whilst his rivals were still focusing their production on candescent and halogen bulbs. The world now realised that LED light bulbs provided a cheaper, more energy efficient, greener solution than all of its alternatives. To that end, many countries had passed legislation requiring domestic and business consumers to replace candescent light bulbs with greener equivalents. In fact, he was on his way right now to Skod, a country which had passed efficient lighting legislation which, from 2017, banned the use of candescent bulbs in commercial premises and outlawed their production and importation after that date. Domestic consumers were expected to replace their candescent bulbs with newer technology as their bulbs failed. Man Lal confidently expected that LED would be, for many, the newer technology of choice. The visit to Skod was of great significance to Man Lal because it was here that he did his business studies degree at Skodmore University. Indeed, he was due to give a lecture to the staff and students of the university the following day and he felt great personal pride in returning to describe the extent of his success and the fulfilment of his personal ambitions. He was also planning to visit a company called Flick which Ling was considering acquiring. This would be a new growth method for Ling. Up to now its worldwide expansion had been achieved by establishing wholly owned distribution companies in each targeted country. All production had remained in Lindisztan. However, for various reasons, Ling was now considering entering the Skod market by acquiring one of its light bulb producers, Flick. In fact, remembering this brought a slight frown across Man Lals face. To help fund his global expansion, he had sold 49% of Ling to institutional investors. These institutional investors required growth and high dividends and he was having difficulty meeting their demands. There was now very little growth in the domestic Lindisztan market and the distribution approach used to expand into foreign countries was taking a long time to mature. The investors were demanding quicker growth and acquisitions appeared to promise this. Despite paying high dividends over the last few years, the company still had significant retained profits and this was another issue for the institutional shareholders. They felt that this money should be used to promote growth and have agreed to a $400m acquisition fund. So, thought Man Lal, what better place to start those acquisitions than Skod, the place where I studied as a poor overseas student so many years ago. However, he had to admit to himself, he was still much happier with organic growth through setting up his own distribution companies. Ling had made a few acquisitions in Lindisztan, but had never bought a foreign company and he was worried about the risk of failure. Turbulence buffeted the aircraft as it made its final descent into the capital of Skod. To distract himself, Man Lal picked up the latest copy of Lighting Tomorrow, the research magazine of the light bulb industry. He skim read an article on tubular daylight lighting which promised to reduce the need for electric lighting by introducing more daylight into a building. Effective daylighting (it said) is achieved through the strategic placement of skylights and windows, as well as lighting controls which monitor available daylight and respond as needed to decrease or increase electric lighting. Perhaps I need to look into this, thought Man Lal. At the airport, Man Lal took a taxi to his hotel. He could not help but notice that Skod was not as neat and tidy as it used to be. A lot of shops and buildings had been closed down and there was graffiti across many buildings and bridges. Skod for Skodders, said one, Skod jobs for Skod people, said another. Man Lal remembered now that the Skod nationalist movement had become increasingly popular. He mentioned this to the taxi driver. Yes, he said, Most people are fed up with Skod being pushed around by the International Financing Consortium (IFC), we want prosperity and jobs for people who grew up here. Slightly unnerved, Man Lal, checked in at the hotel. He switched on the television. He watched with interest as Niklas Perch, the newly elected nationalist leader of the Skod government, outlined his plans for the future. We are committed to a return to prosperity, he said. To achieve this we have to make some short-term adjustments which may be unpopular with our trading partners. We are currently considering the imposition of import taxes as a way of protecting our home industry. We wish to create a protected commercial environment here in Skod in which our companies can prosper. We must also ask our citizens to continue with their energy saving measures. As you know, the government has agreed that all street lighting will be turned off from 2300 hours to 0500 hours. I have also decreed that all government offices must proactively embrace energy saving lighting and heating. In the same way, I expect our citizens to look at ways of saving money and energy. The government also recognises that the country continues to be in a recession, and that disposable income is falling for all people. However, I cannot condone the recent demonstrations against, and boycott of, foreign goods and food products. We must rebuild our country peacefully and legally. I would ask all citizens to support me in this. Just then, the air conditioning failed and the television went off. Another energy failure in Skod. There were three further failures that night. The hotel manager apologised to Man Lal in the morning. I am sorry, he said but despite higher energy prices, this is an increasing feature of life in Skod. Skod electric light bulb industry All electric light bulbs are largely made out of glass and metal and this is likely to remain the same in the foreseeable future. In Skod, 90% of glass is produced by three companies. However, for all of these three companies, light bulb manufacturers are unimportant customers. Most glass manufacture goes to the construction industry, light bulb manufacturers take less than 05% of the countrys glass production. Metal manufacture in Skod is dominated by one company, OmniMetal. Most metal is sold to the automobile industry. Light bulb manufacturers take less than 01% of OmniMetals production. However, the quality of glass and metal required by the light bulb manufacturers is quite standard, so switching between suppliers is, in theory, relatively easy. Light bulb manufacture takes place in factories which require substantial initial investment and have no obvious alternative use. In Skod, light bulbs are low cost commodity products which are replaced infrequently by domestic consumers. Commercial consumers change their light bulbs a little more often and some businesses have recently switched all their bulbs to LED to save energy, reduce costs in the long term and to reflect their aspirations as green businesses. There is very little brand awareness in the light bulb market and all the light bulbs have to fit the standard sockets used in the country. Electric light bulb manufacture in Skod is dominated by the five companies listed in Table One. Two years ago a large American light bulb manufacturer, Krysal, attempted to enter the market. The five dominant companies in the industry reacted to this by cutting prices, running marketing campaigns which emphasised the benefits to the country of home-based production and lobbying supermarket groups to not stock products produced by the new entrant. Krysal withdrew from the market after six months. When not focused on fighting new entrants, the five main competitors are regularly involved in price cutting, disruption of competitors distribution channels and aggressive marketing. The products produced by the Skod light bulb industry are largely sold through supermarket groups (50%), household product superstores (30%) and large electrical chains (10%). The rest of the production is sold through small shops, except for a tiny percentage of production (less than 1%) which is sold directly to large organisations, such as government departments. However, light bulbs do not constitute a large sales item for any of these distribution channels. In fact, in a recent report, light bulb sales were one of the products which contributed less than 01% of a major supermarkets revenue. The light bulb companies in Skod have largely focused on candescent (60% of production) and halogen (30% of production) technologies. Man Lal intends to fund the updating of the production facilities at Flick to allow the production of LED lights, alongside the continued production of candescent and halogen light bulbs. He wants to achieve this before domestic competitors in Skod gear up their own LED light bulb production. He believes that Lings competencies in LED manufacture will give Flick a head start. Initial discussions with Flick suggest that the company is open to acquisition and a bid price has been agreed which is acceptable to both parties. Financial information for Flick and the Skod light bulb industry as a whole is shown in Appendix One. Appendix One: Financial information for Flick and the Skod light bulb industry Extract from financial statements All figures in $millions Note: The Industry total column is for the Skod light bulb industry as a whole (including Flick). Required:

案例分析题Section A This ONE question is compulsory and MUST be attempted MFP (Mutual Farm Products) was formed in 1910 as a co-operative shop network owned by farmers in the country of Arboria

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问答题2.The town of Brighttown in Euraria has a mayor (elected every five years by the people in the town) who is responsible for, amongst other things, the transport policy of the town. A year ago, the mayor (acting as project sponsor) instigated a ‘traffic lite’ project to reduce traffic congestion at trafficlights in the town. Rather than relying on fixed timings, he suggested that a system should be implemented whichmade the traffic lights sensitive to traffic flow. So, if a queue built up, then the lights would automatically change togreen (go). The mayor suggested that this would have a number of benefits. Firstly, it would reduce harmful emissionsat the areas near traffic lights and, secondly, it would improve the journey times for all vehicles, leading to drivers‘being less stressed’. He also cited evidence from cities overseas where predictable journey times had been attractiveto flexible companies who could set themselves up anywhere in the country. He felt that the new system would attractsuch companies to the town. The Eurarian government has a transport regulation agency called OfRoad. Part of OfRoad’s responsibilities is tomonitor transport investments and it was originally critical of the Brighttown ‘traffic lite’ project because the project’sbenefits were intangible and lacked credibility. The business case did not include a quantitative cost/benefit analysis.OfRoad has itself published a benefits management process which classifies benefits in the following way. Financial:A financial benefit can be confidently allocated in advance of the project. Thus if the investment will save$90,000 per year in staff costs then this is a financial benefit. Quantifiable:A quantifiable benefit is a benefit where there is sufficient credible evidence to suggest, in advance, howmuch benefit will result from the project. This benefit may be financial or non-financial. For example, energy savingsfrom a new building might be credibly predicted in advance. However, the exact amount of savings cannot beaccurately forecast. Measurable benefit:A measurable benefit is a benefit which can only be confidently assessed post-implementation,and so cannot be reliably predicted in advance. Increase in sales from a particular initiative is an example of ameasurable benefit. Measurable benefits may either be financial or non-financial. Observable benefit: An observable benefit is a benefit which a specific individual or group will decide, using agreedcriteria, has been realised or not. Such benefits are usually non-financial. Improved staff morale might be an exampleof an observable benefit. One month ago, the mayoral elections saw the election of a new mayor with a completely distinct transport policywith different objectives. She wishes to address traffic congestion by attracting commuters away from their cars andonto public transport. Part of her policy is a traffic light system which gives priority to buses. The town council ownsthe buses which operate in the town and they have invested heavily in buses which are comfortable and havesignificantly lower emissions than the conventional cars used by most people in the town. The new mayor wishes toimprove the frequency, punctuality and convenience of these buses, so that they tempt people away from using theircars. This will require more buses and more bus crews, a requirement which the mayor presents as ‘being good forthe unemployment rate in this town’. It will also help the bus service meet the punctuality service level which itpublished three years ago, but has never yet met. ‘A reduction in cars and an increase in buses will help us meet ourtarget’, the mayor claims. The mayor has also suggested a number of initiatives to discourage people from taking their cars into the town. Sheintends to sell two car parks for housing land (raising $325,000) and this will reduce car park capacity from 1,000to 800 car spaces per day. She also intends to raise the daily parking fee from $3 to $4. Car park occupancy currentlystands at 95% (it is difficult to achieve 100% for technical reasons) and the same occupancy rate is expected whenthe car park capacity is reduced. The new mayor believes that her policy signals the fact that Brighttown is serious about its green credentials. ‘This’,she says, ‘will attract green consumers to come and live in our town and green companies to set up here. Thesecompanies and consumers will bring great benefit to our community.’ To emphasise this, she has set up a Go Greenteam to encourage green initiatives in the town. The ‘traffic lite’ project to tackle congestion proposed by the former mayor is still in the development stage. The newmayor believes that this project can be modified to deliver her vision and still be ready on the date promised by herpredecessor. Required:

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问答题3.TMZisamusiccompanybasedinthedevelopedcountryofArtazia.Itwasfoundedin1963whenitstartedtosignemergingrockandrollartiststoitsrecordlabel.TMZoffersacontractinwhichtheartistsreceiveroyaltiesbasedonthesalesoftheirmusic.Aspartofthiscontract,TMZrecordthemusic,distributeitandpromoteit.Mostofthecontractsareforadefinednumberofsongsorrecords.Forexample,in1980,TMZcontractedtheheavymetalband,Vortex31,toproducetenalbums,tobedeliveredoversevenyears.Extractedfinancialdatafortheperiod1965–2000isgiveninTableone.DuringtheseyearsTMZsuccessfullysignedbandsofferingdifferentandemergingtypesofmusic(pop,punk,garage,grunge,patio)andalsosuccessfullyalteredthephysicalmediaofdistribution,fromvinylrecordstotapecassetteandsubsequentlytocompactdisc(CD).Tableone:Revenueandprofitinformation:TMZ(1965–2000)Thecompanyremainedprofitableinthisperiod,despitemusicianstakinglongertoproducealbumsandseniormanagementadoptingarelaxedandindulgentapproachtotheircreativeartists.In1999,thefirstfilesharingcompanywasformedinArtazia,allowingpeopletoeasilysharetheirmusicfileswitheachother.Duringthenextdecade,numerousfilesharinganddigitaldownloadingcompanieswerelaunched.Asearlyas2003,thepossibleimplicationsofthisgrowthinfilesharinganddigitaldownloadingwerehighlightedbyanumberofemployeesinTMZ.However,seniormanagementatTMZweredismissiveofthisthreat,suggestingthatthecontractswiththeirartistswere‘watertight’.Tabletwoshowsrevenueandprofitinformationfor2003–2007.Tabletwo:revenueandprofitinformation:TMZ(2003–2007)SeniormanagementatTMZbelievedthatthisdeclineinperformancewasduetothemprovidingthe‘wrongmusic,promotedtothewrongpeopleatthewrongprice’.Duringthisperiodthecompanysignednewartists,increasedadvertisingandcutprices.However,thisdidnothaltitsdecline.Losseswerealsomadein2008and2009andthecompanywasonlykeptafloatbyfreshinjectionsofshareholdercapital.Duringtheseyears,thecompanytooklegalactionagainstwhattheyconsideredillegaldownloadingandfilesharing.Itwonanumberofsmallcasesbutitsactionsangeredmanymusicfans,whofeltthatmusiclabelshadbeengreedyinthepast.Italsoupsetsomeofitsartistswhonowbenefitedfromtheopportunitytheinternetgavethemtosellmusicdirectlytotheirfans.In2009,anewCEOwasappointedfromoutsidethemusicindustry.In2010heannouncedanewstrategy.TMZwasnolongerinterestedincontractingnewartiststothelabel.Insteaditwouldfocusonderivingprofitfromitsestablishedartistsandmusiccatalogue.Hecametolicensingagreementswithsomelargedigitaldownloadingoperatorsandstores,allowingthemtoaccessorsellthemusicofestablishedartists.However,hecontinuedlitigationagainstothers.Healsobegantogeneraterevenuefromlicensingthemusicforuseincomputergames,televisionadvertisementsandpersonalisedringtones.In2011thecompanyreportedagrossprofitforthefirsttimesince2005.In2013and2014itrecordedasmallnetprofit.TheCEOstatedthatTMZwasnowa‘slimmer,fittercompany.Wearealearningorganisation,developingtheresilienceneededtotradesuccessfullyintheever-changingdigitalmusicage’.However,hewarnedthatTMZ,likeothersintheindustry,wouldcontinuetopursueactionsagainsttheillegaldownloadingofmusic.‘Thereisagenerationwheremanypeopleconsidermusicandallcreativecontentshouldbefree.However,weseesignsthatthisassumptionisbecominglesswidelyheld.Thenextgenerationisquestioningit.Likemanyothers,wecontinuetoseekwaysofdistributingmusicwhichisfairtoboththeconsumerandtheartist.Weareconstantlymonitoringtrendsandpatternsinconsumerbehaviour.Wewillnotgetcaughtoutlikeweweretenyearsago.Wewon’tbefooledagain!Required: