Practice Test 9

Question Paper

Questions 21-24

Complete the notes below using NO MORE THAN THREE WORDS for each answer.

Box Telecom
Problem: been affected by	drop in 21 ......................... growing 22 ......................... delays due to a strike
Causes of problems:	high 23 ......................... lack of good 24 ........................

Questions 25-27

Choose the correct letter, A, B or C.

25) What does Karin think the company will do?

A look for private investors
B accept a takeover offer
C issue some new shares

26) How does the tutor suggest the company can recover?

A by appointing a new managing director
B by changing the way it is organised
C by closing some of its retail outlets

27) The tutor wants Jason and Karin to produce a report which

A offers solutions to Box Telecom's problems.
B analyses the UK market.
C compares different companies.

Questions 28-30

Which opinion does each person express about Box Telecom?

Choose your answers from the box and write the letters A-F next to questions 28-30.

28) Karin

A its workers are motivated
B it has too little investment
C it will overcome its problems
D its marketing campaign needs improvement
E it is old-fashioned
F it has strong managers

29) Jason

A its workers are motivated
B it has too little investment
C it will overcome its problems
D its marketing campaign needs improvement
E it is old-fashioned
F it has strong managers

30) The tutor

A its workers are motivated
B it has too little investment
C it will overcome its problems
D its marketing campaign needs improvement
E it is old-fashioned
F it has strong managers

Transcript Solution

Tutor

Right, Jason and Karin, now I asked you to look at the ease study for Box Telecom as part of your exam assessment. It's interesting because they are in the middle of problems at the moment and I want you to track how they deal with them. Let's start with you, Karin. Having read through the ease study, can you just summarise what the problems were that Box Telecom had to take on board?

Karin

Um, yeah ... Well of course what first came to their attention was that, despite a new advertising campaign, they were suffering from falling salesQ21 - and this is something that had many causes. On top of that immediate problem, what had also happened over the last two years was that, although they had invested in an expansion plan, they had to face up to increased competitionQ22. And, before they had a chance to get to grips with the effects of that, they were stalled by a strike and it was just when they were thinking about making a colossal investment in new machinery for their plants. So they were really in trouble.

Tutor

Yes, I think that's fair. And Jason, you contacted the company, didn't you? What did the company define as the reasons for these problems?

Jason

Well, I think they've hit on the right things - it would be easy to say they had invested too heavily, or at the wrong time, but in fact the signs were good and what they were set back by was high interest ratesQ23. At the same time, their longer-term problems, which were affecting their market share, were eventually credited to poor trainingQ24 - and having looked at the details in their last report I think that's right.

Tutor

SO, onto the larger issues then. Karin, what do you think the company will do?

Karin

Hmm ... Well, obviously they have the choice of accepting the very favourable terms that another company - KMG Plc - have given them to buy them out. That would mean creating a new company with a new image. Or they could decide on a bolder move and offer some new shares if they wanted. But I think they're much more cautious than that and expect they will start trying to find individuals who'd be prepared to back them with some of the capital they need.Q25

Tutor

Well, you mustn't always assume that dramatic problems require dramatic solutions. Sometimes there's a simple fix such as changing the guy at the top. If they truly are cautious, then I suspect they will seek to shut down some of their shops. But a more ambitious approach, and one which I think would have more chance of success, would be to alter how they're running thingsQ26 - the management layers and the processes. So in your analysis try to think of all the options. Jason?

Jason

Yes. it's interesting because I've found it a really useful company to study. Its problems cross all types of industries and it's lucky it's so big - a smaller or even medium-sized company would have gone under by now.

Tutor

Ah well in fact, what I want you two to do is to go away when we've finished our discussion today and write a report. We've looked in general at the telecommunications market in the UK over the last few sessions and I want you to take Box Telecom as an example and suggest some ways in which they might overcome their problems.Q27 And outline the reasons why you think as you do - but try and keep it intrinsic to the company rather than dragging in other examples. Is that OK, Karin?

Karin

Yes, I think I can do that. Personally I've got great hopes for it. I think it will recover.Q28 That advertising campaign they did was very strong and they're very innovative with their products - they set new trends. The company's got to recover, don't you think, Jason?

Jason

Hmmm - I'm not sure. I think it can but it's not a foregone conclusion unless they manage to attract the right level of investment. The company definitely needs a boostQ29 and to attract more highly skilled workers if their recovery is to be long-lasting. When I was talking to the marketing manager he said to me that he thinks the company had got a great management team - but he would say that, wouldn't he? - but they are suffering from having to work with outdated production machinery and that could cost a lot to put right.

Tutor

Well, personally I think the stock market is to blame. I think they were expecting too much of the company and then inevitably it looked bad when it didn't perform. The market should have had more realistic expectations.

And I disagree with you about the advertising campaign Karin. That's where they could do with some innovationQ30 - to get sales kick-started. Anyway, let's see what you come up with ... [fade]

Questions 21-24

Complete the notes below using NO MORE THAN THREE WORDS for each answer.

Box Telecom
Problem: been affected by	drop in 21 .....sales...... growing 22 ........competition....... delays due to a strike
Causes of problems:	high 23 ........interest rates....... lack of good 24 .........training........

Questions 25-27

Choose the correct letter, A, B or C.

25) What does Karin think the company will do?

A look for private investors✔
B accept a takeover offer
C issue some new shares

26) How does the tutor suggest the company can recover?

A by appointing a new managing director
B by changing the way it is organised✔
C by closing some of its retail outlets

27) The tutor wants Jason and Karin to produce a report which

A offers solutions to Box Telecom's problems.✔
B analyses the UK market.
C compares different companies.

Questions 28-30

Which opinion does each person express about Box Telecom?

Choose your answers from the box and write the letters A-F next to questions 28-30.

28) Karin

A its workers are motivated
B it has too little investment
C it will overcome its problems✔
D its marketing campaign needs improvement
E it is old-fashioned
F it has strong managers

29) Jason

A its workers are motivated
B it has too little investment✔
C it will overcome its problems
D its marketing campaign needs improvement
E it is old-fashioned
F it has strong managers

30) The tutor

A its workers are motivated
B it has too little investment
C it will overcome its problems
D its marketing campaign needs improvement✔
E it is old-fashioned
F it has strong managers