Instructions to candidates: a)Time allowed: Three hours (plus an extra ten minutes’ reading time at the start – do not write anything during this time) b)Answer any THREE questions c)All questions carry equal marks. Marks for each question are shown in [ ]
1.In December 2012 the merger of Glencore and Xstrata was approved by shareholders creating an $80bn global mining giant. Discuss the benefits that the two companies might hope to gain by merging.
2.In March of this year Virgin Airlines was reported to be facing record annual losses of £135m due to rising costs and competition. What action can a company in this position take to restore its competitive position?
3.In March the European Union was reported to be drawing up a plan to give shareholders in companies powers to block excessive pay deals for senior staff. Should a body such as the European Union intervene in the running of companies in this way? Explain your answer.
4.The UK telecoms giant Vodafone was reported earlier this year to be on the verge of leaving the US market by selling its American assets in an £88bn deal. What problems might a company such as Vodafone face in developing a successful overseas business in the US?
5.In April this year the UK Government was considering a number of options for enlarging airport capacity in its capital, London. Discuss the impact on UK businesses of a decision to increase airport capacity.
6.In March this year Mulberry was reported to be struggling to achieve its goal of joining the elite group of luxury brands including Prada, Hermès and Louis Vuitton. What action should a company wishing to create an elite brand such as this take to achieve its objective?
© INSTITUTE OF COMMERCIAL MANAGEMENT