Market Share – NBC Institute

PM – May 2017 – L2 – SA – Q1 – Working Capital Management

Calculate KPIs for Kardex’s products, perform a PEST analysis, and comment on KPI effectiveness in external conditions.

Question

Kardex Industries Nigeria Limited is a subsidiary of a large manufacturing company based in China (Kardex International). The company manufactures washing machines, table gas cookers, and refrigerators which are being sold by the subsidiary in Nigeria. Demand for the company’s product is growing, especially among the growing middle-class population, until recently when the company started experiencing some hiccups due to the economic recession and stiff competition.
- The company currently sells two types of washing machines in Nigeria:
  - Wash Up: A basic product comparable to local competitors.
  - Perfect Wash: A premium product similar to Kardex’s offerings in developed countries.
- The competitive environment in Nigeria is evolving quickly. Apart from Kardex, two other companies offer similar machines in the market. One competitor produces machines similar to “Wash Up” locally with tax incentives, while the other is planning to set up a plant for specialized washing machines akin to Kardex’s “Perfect Wash.”
- Kardex International’s mission is to be the “industry leader.” The Kardex Board has identified critical success factors (CSFs) for the Nigerian subsidiary:
  - Market leadership.
  - Profit maximization and shareholder wealth within acceptable risk.
  - Brand image maintenance as a top-of-the-range product.
- The Board suggests using the following KPIs for each product:
  - Total profit, average sales price per unit, contribution per unit, market share, margin of safety, return on capital employed (ROCE), and total quality costs.

Appendix 1
Financial Year Data for Nigerian Subsidiary:

Requirements:

a. Calculate the Key Performance Indicators (KPIs) for Kardex, including:

Total Profit
Average Sales Price per Unit
Contribution per Unit
Market Share
Margin of Safety
Return on Capital Employed (ROCE)
Quality Costs (20 Marks)

b. Use a PEST Analysis to identify external environmental issues affecting Kardex and discuss the effectiveness of the KPIs in addressing these issues.

Answer

Find Related Questions by Tags, levels, etc.

Tags: KPI, Margin of Safety, Market Share, Profitability analysis, Quality Costs, ROCE
Level: Level 2

Topic: Working Capital Management
Series: MAY 2017

CSME – May 2019 – L2 – Q5 – Corporate Strategy Formulation

Explain diversification strategy and advise Shacks Limited on factors favoring concentric diversification.

Question

Shacks Limited is a company involved in the production of radio cassettes and photographic films. In the past two decades, the company had the greatest share of the market for these products. However, technological advancements resulting in the development of DVDs and digital photographs have greatly eroded the competitiveness of the company. To reposition Shacks Limited and make it more competitive, the management is considering concentric diversification as the strategy to pursue.

(a) Explain the term ‘diversification strategy’. (5 Marks)

(b) From the given scenario, advise the management of Shacks Limited on the key factors that indicate preference for concentric diversification strategy. (10 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Competitive Positioning, Concentric Diversification, Diversification Strategy, Market Share
Level: Level 2

Topic: Corporate Strategy Formulation
Series: MAY 2019

PM – May 2018 – L2 – Q7 – Strategic Management Accounting

This question asks for the classification of five products using the BCG matrix and an analysis on how this helps the company in strategic decision-making regarding products and markets.

Question

Adrak Nigeria Limited produces five different products, and sells each product in a
different market.
The management accountant has obtained the following information about
market size and market share for each product which consists of actual data for
each of the last three years and forecasts for the next two years:

In the current year, the market share of the market leader or the nearest competitor
to the company has been estimated as follows:

Market share of market leader or the company‟s nearest competitor
Market for: %
Product 1: 37
Product 2: 26
Product 3: 12
Product 4: 29
Product 5: 20

Required:
a. Using the Boston Consulting Group model, how should each of these
products be classified? (7 1/2 )
b. How will this analysis help the management of the company to make
strategic decisions about its future products and markets („product-market
strategy‟)? (7 1/2 )
/2 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: BCG Matrix, Market Share, Product Classification, Strategic Planning
Level: Level 2

Topic: Strategic Management Accounting
Series: MAY 2018

PM – May 2019 – L2 – Q1 – Standard Costing and Variance Analysis

Analyze variances, reconcile budgeted and actual profit, and evaluate pricing strategy success for KK Plc.

Question

KK Plc. buys small tablet computers which it customizes for the Nigerian market and then resells to electronics retailers. Although a detailed variance analysis is carried out each month, the CEO John, T, has become concerned that no one has a clear responsibility for taking action in response to this analysis or for using it to carry out an ex-post analysis of the outcome of important decisions.

The following is an extract from last month’s budget:

Model	A	B	C
Selling price/unit (N)	1,000	1,250	1,500
Variable cost/unit (N)	400	500	600
Sales (units)	25,000	40,000	15,000

The budgeted fixed costs were N12,500,000 for the month, which were not dependent on the mix or quantities of products sold. When the budget was being prepared, it was estimated that the total size of the market (including sales by the company and the competitors) would be 400,000 units.

Shortly after the beginning of the month, the marketing director, Okon Nelson, decided that a change of pricing strategy was necessary in response to the recessionary economic conditions. The price of Model A was reduced by 10%, and the prices of Models B and C were each reduced by 20%. The company was partly successful in passing on the impact of these price reductions to its suppliers, and as a consequence, the variable cost per unit for all three models was reduced by 5%. Actual fixed costs were 5% higher than budgeted because of the marketing costs associated with publishing the price reductions.

As a result of the recessionary conditions, the actual total market size was just 200,000 units. The actual quantities sold by the company were as follows:

Actual quantities sold by the company were as follows:

Model	Sales (units)
A	14,800
B	29,500
C	11,700

Required:
a. Present a comprehensive analysis of variances, reconciling the budgeted and actual profit for last month in as much detail as possible from the information provided. (25 Marks)
b. Evaluate the financial success (or otherwise) of the decision to change the pricing strategy and assess whether the difference between the budgeted and actual performance was attributable mainly to luck or to factors within the company’s control. (5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Budget profit, Cost Analysis, Fixed Overhead, Market Share, Price Variance, Pricing Strategy, Profit reconciliation, Sales quantity, Variance Analysis
Level: Level 2

Topic: Standard Costing and Variance Analysis
Series: MAY 2019

BMIS – May 2020 – L1 – Q5b – Introduction to business strategy

Identify and explain the four categories in the Boston Consulting Group (BCG) matrix.

Question

Boston Consulting Group (BCG) matrix analysis is used to classify Strategic Business Units (SBUs) within an organization’s portfolio of products and services based on their respective market share and growth rate. It is a key aspect of strategic capability to ensure that the portfolio is strong.

Required:
Identify and explain the FOUR (4) categories in the model. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: BCG Matrix, Growth Rate, Market Share, Strategic Business Units
Level: Level 1

Topic: Introduction to Business Strategy
Series: MAY 2020

FM – NOV 2015 – L2 – Q1a – Introduction to Financial Management

Describe factors indicating a successful organization

Question

a. One of the key expectations of the Finance Manager is to ensure the success of the organization. Describe FOUR (4) key factors that are indicative of a successful organization. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Customer Satisfaction, Growth, Market Share, Organizational Performance, Profitability, Success Indicators
Level: Level 2

Topic: Introduction to Financial Management
Series: NOV 2015

PM – May 2017 – L2 – SA – Q1 – Working Capital Management

Calculate KPIs for Kardex’s products, perform a PEST analysis, and comment on KPI effectiveness in external conditions.

Question

Kardex Industries Nigeria Limited is a subsidiary of a large manufacturing company based in China (Kardex International). The company manufactures washing machines, table gas cookers, and refrigerators which are being sold by the subsidiary in Nigeria. Demand for the company’s product is growing, especially among the growing middle-class population, until recently when the company started experiencing some hiccups due to the economic recession and stiff competition.
- The company currently sells two types of washing machines in Nigeria:
  - Wash Up: A basic product comparable to local competitors.
  - Perfect Wash: A premium product similar to Kardex’s offerings in developed countries.
- The competitive environment in Nigeria is evolving quickly. Apart from Kardex, two other companies offer similar machines in the market. One competitor produces machines similar to “Wash Up” locally with tax incentives, while the other is planning to set up a plant for specialized washing machines akin to Kardex’s “Perfect Wash.”
- Kardex International’s mission is to be the “industry leader.” The Kardex Board has identified critical success factors (CSFs) for the Nigerian subsidiary:
  - Market leadership.
  - Profit maximization and shareholder wealth within acceptable risk.
  - Brand image maintenance as a top-of-the-range product.
- The Board suggests using the following KPIs for each product:
  - Total profit, average sales price per unit, contribution per unit, market share, margin of safety, return on capital employed (ROCE), and total quality costs.

Appendix 1
Financial Year Data for Nigerian Subsidiary:

Requirements:

a. Calculate the Key Performance Indicators (KPIs) for Kardex, including:

Total Profit
Average Sales Price per Unit
Contribution per Unit
Market Share
Margin of Safety
Return on Capital Employed (ROCE)
Quality Costs (20 Marks)

b. Use a PEST Analysis to identify external environmental issues affecting Kardex and discuss the effectiveness of the KPIs in addressing these issues.

Answer

Find Related Questions by Tags, levels, etc.

Tags: KPI, Margin of Safety, Market Share, Profitability analysis, Quality Costs, ROCE
Level: Level 2

Topic: Working Capital Management
Series: MAY 2017

CSME – May 2019 – L2 – Q5 – Corporate Strategy Formulation

Explain diversification strategy and advise Shacks Limited on factors favoring concentric diversification.

Question

(a) Explain the term ‘diversification strategy’. (5 Marks)

(b) From the given scenario, advise the management of Shacks Limited on the key factors that indicate preference for concentric diversification strategy. (10 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Competitive Positioning, Concentric Diversification, Diversification Strategy, Market Share
Level: Level 2

Topic: Corporate Strategy Formulation
Series: MAY 2019

PM – May 2018 – L2 – Q7 – Strategic Management Accounting

This question asks for the classification of five products using the BCG matrix and an analysis on how this helps the company in strategic decision-making regarding products and markets.

Question

In the current year, the market share of the market leader or the nearest competitor
to the company has been estimated as follows:

Market share of market leader or the company‟s nearest competitor
Market for: %
Product 1: 37
Product 2: 26
Product 3: 12
Product 4: 29
Product 5: 20

Answer

Find Related Questions by Tags, levels, etc.

Tags: BCG Matrix, Market Share, Product Classification, Strategic Planning
Level: Level 2

Topic: Strategic Management Accounting
Series: MAY 2018

PM – May 2019 – L2 – Q1 – Standard Costing and Variance Analysis

Analyze variances, reconcile budgeted and actual profit, and evaluate pricing strategy success for KK Plc.

Question

The following is an extract from last month’s budget:

Model	A	B	C
Selling price/unit (N)	1,000	1,250	1,500
Variable cost/unit (N)	400	500	600
Sales (units)	25,000	40,000	15,000

As a result of the recessionary conditions, the actual total market size was just 200,000 units. The actual quantities sold by the company were as follows:

Actual quantities sold by the company were as follows:

Model	Sales (units)
A	14,800
B	29,500
C	11,700

Answer

Find Related Questions by Tags, levels, etc.

Tags: Budget profit, Cost Analysis, Fixed Overhead, Market Share, Price Variance, Pricing Strategy, Profit reconciliation, Sales quantity, Variance Analysis
Level: Level 2

Topic: Standard Costing and Variance Analysis
Series: MAY 2019

BMIS – May 2020 – L1 – Q5b – Introduction to business strategy

Identify and explain the four categories in the Boston Consulting Group (BCG) matrix.

Question

Required:
Identify and explain the FOUR (4) categories in the model. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: BCG Matrix, Growth Rate, Market Share, Strategic Business Units
Level: Level 1

Topic: Introduction to Business Strategy
Series: MAY 2020

FM – NOV 2015 – L2 – Q1a – Introduction to Financial Management

Describe factors indicating a successful organization

Question

a. One of the key expectations of the Finance Manager is to ensure the success of the organization. Describe FOUR (4) key factors that are indicative of a successful organization. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Customer Satisfaction, Growth, Market Share, Organizational Performance, Profitability, Success Indicators
Level: Level 2

Topic: Introduction to Financial Management
Series: NOV 2015

Question Tag: Market Share

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

PM – May 2017 – L2 – SA – Q1 – Working Capital Management

Calculate KPIs for Kardex’s products, perform a PEST analysis, and comment on KPI effectiveness in external conditions.

CSME – May 2019 – L2 – Q5 – Corporate Strategy Formulation

Explain diversification strategy and advise Shacks Limited on factors favoring concentric diversification.

PM – May 2018 – L2 – Q7 – Strategic Management Accounting

This question asks for the classification of five products using the BCG matrix and an analysis on how this helps the company in strategic decision-making regarding products and markets.

PM – May 2019 – L2 – Q1 – Standard Costing and Variance Analysis

Analyze variances, reconcile budgeted and actual profit, and evaluate pricing strategy success for KK Plc.

BMIS – May 2020 – L1 – Q5b – Introduction to business strategy

Identify and explain the four categories in the Boston Consulting Group (BCG) matrix.

FM – NOV 2015 – L2 – Q1a – Introduction to Financial Management

Describe factors indicating a successful organization

PM – May 2017 – L2 – SA – Q1 – Working Capital Management

Calculate KPIs for Kardex’s products, perform a PEST analysis, and comment on KPI effectiveness in external conditions.

CSME – May 2019 – L2 – Q5 – Corporate Strategy Formulation

Explain diversification strategy and advise Shacks Limited on factors favoring concentric diversification.

PM – May 2018 – L2 – Q7 – Strategic Management Accounting

This question asks for the classification of five products using the BCG matrix and an analysis on how this helps the company in strategic decision-making regarding products and markets.

PM – May 2019 – L2 – Q1 – Standard Costing and Variance Analysis

Analyze variances, reconcile budgeted and actual profit, and evaluate pricing strategy success for KK Plc.

BMIS – May 2020 – L1 – Q5b – Introduction to business strategy

Identify and explain the four categories in the Boston Consulting Group (BCG) matrix.

FM – NOV 2015 – L2 – Q1a – Introduction to Financial Management

Describe factors indicating a successful organization

Our offerings

Contact Info

Customer

Get In Touch

Question Tag: Market Share

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

PM – May 2017 – L2 – SA – Q1 – Working Capital Management

Calculate KPIs for Kardex’s products, perform a PEST analysis, and comment on KPI effectiveness in external conditions.

You're reporting an error for "PM – May 2017 – L2 – SA – Q1 – Working Capital Management"

CSME – May 2019 – L2 – Q5 – Corporate Strategy Formulation

Explain diversification strategy and advise Shacks Limited on factors favoring concentric diversification.

You're reporting an error for "CSME – May 2019 – L2 – Q5 – Corporate Strategy Formulation"

PM – May 2018 – L2 – Q7 – Strategic Management Accounting

This question asks for the classification of five products using the BCG matrix and an analysis on how this helps the company in strategic decision-making regarding products and markets.

You're reporting an error for "PM – May 2018 – L2 – Q7 – Strategic Management Accounting"

PM – May 2019 – L2 – Q1 – Standard Costing and Variance Analysis

Analyze variances, reconcile budgeted and actual profit, and evaluate pricing strategy success for KK Plc.

You're reporting an error for "PM – May 2019 – L2 – Q1 – Standard Costing and Variance Analysis"

BMIS – May 2020 – L1 – Q5b – Introduction to business strategy

Identify and explain the four categories in the Boston Consulting Group (BCG) matrix.

You're reporting an error for "BMIS – May 2020 – L1 – Q5b – Introduction to business strategy"

FM – NOV 2015 – L2 – Q1a – Introduction to Financial Management

Describe factors indicating a successful organization

You're reporting an error for "FM – NOV 2015 – L2 – Q1a – Introduction to Financial Management"

PM – May 2017 – L2 – SA – Q1 – Working Capital Management

Calculate KPIs for Kardex’s products, perform a PEST analysis, and comment on KPI effectiveness in external conditions.

You're reporting an error for "PM – May 2017 – L2 – SA – Q1 – Working Capital Management"

CSME – May 2019 – L2 – Q5 – Corporate Strategy Formulation

Explain diversification strategy and advise Shacks Limited on factors favoring concentric diversification.

You're reporting an error for "CSME – May 2019 – L2 – Q5 – Corporate Strategy Formulation"

PM – May 2018 – L2 – Q7 – Strategic Management Accounting

This question asks for the classification of five products using the BCG matrix and an analysis on how this helps the company in strategic decision-making regarding products and markets.

You're reporting an error for "PM – May 2018 – L2 – Q7 – Strategic Management Accounting"

PM – May 2019 – L2 – Q1 – Standard Costing and Variance Analysis

Analyze variances, reconcile budgeted and actual profit, and evaluate pricing strategy success for KK Plc.

You're reporting an error for "PM – May 2019 – L2 – Q1 – Standard Costing and Variance Analysis"

BMIS – May 2020 – L1 – Q5b – Introduction to business strategy

Identify and explain the four categories in the Boston Consulting Group (BCG) matrix.

You're reporting an error for "BMIS – May 2020 – L1 – Q5b – Introduction to business strategy"

FM – NOV 2015 – L2 – Q1a – Introduction to Financial Management

Describe factors indicating a successful organization

You're reporting an error for "FM – NOV 2015 – L2 – Q1a – Introduction to Financial Management"

Our offerings

Contact Info

Customer

Get In Touch

admin