CIMA Updated E3 Exam Questions and Answers by annabel

A large sporting event is due to take place in Country P next year and a project team has been set up to market the event.  The project team recognises that a focus upon effective relationships with a range of key customer markets is critical to the success of the event. These key relationships need to be developed with the spectators, the broadcasting companies televising the event,  the agents who are selling the tickets for the event and the key human resource providers such as the security companies involved in ensuring the overall security of the event.

Which of the following would be the correct classification of the broadcasting companies televising the sporting event, using Payne's 'six markets model' classifications?

Information regarding two potential investments, that do not provide initial, valuable positive NPV opportunities, is outlined below:

• Y is a telecoms company, considering paying a premium for a Chinese telecoms company which has exclusive rights to service a large segment of the Chinese market, currently worth $123 billion in total The exclusive rights cover 25% of the market

• Z is a developed market retailer, considering paying a premium for an Indian retail company in the belief that the market is going to continue to be

lucrative and grow by 8% per annum for the foreseeable future The current market is worth $600 billion and the company currently has 12% of the total market.

Which of the following statements regarding sustainable excess returns for the above real options is true1?

YYY is a profit-seeking provider of television channels. It broadcasts to some 55 countries using satellite and cable technologies. It also commissions and produces about 30% of the programs it broadcasts, to give it a unique competitive advantage against other broadcasters.

Web 2.0 provides new opportunities for YYY and it has developed a strong social media component to its programming schedules to increase audience engagement.

Keeping YYY's divisions working together is crucial to its success as a business.

Which of the following methods of divisional Performance Measurement would you recommend to YYY?