CIMA Exam CIMAPRA19-E03-1 Topic 3 Question 98 Discussion

Actual exam question for CIMA's CIMAPRA19-E03-1 exam

Question #: 98
Topic #: 3

MMM operates leisure parks in Country S. a mature economy in Europe. These are parks that are popular with people between the ages of 8 and 25 years who visit them to ride on the high speed roller-coasters and to visit other attractions at the parks. Nearly 60% of visitor expenditure is to buy meals and drinks at the park MMM estimates that 20% of its visitors travel to its parks from outside Country S.

Which THREE of the following environmental changes will have the greatest impact on MMM in the next five years?

AThe growing strength of the emerging economies in Africa, Asia and South America.

BThe average age of the population in Country S is increasing because of a fall in the birth rate.

CAn increase in the statutory minimum wage in Country S.

DIntroduction of government restrictions on the number of students and tounsts permitted to enter Country S.

EThe opening of a rival leisure park in Country S with more modern rides and attractions.

Show Suggested Answer

Suggested Answer: A, B, D

by Desirae at Sep 18, 2024, 09:17 AM

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Eloisa

1 months ago

Hey, at least the parks will be filled with young people. Gotta keep those roller coasters running or the kids might start to get, you know, bored. Yawn.

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Teri

3 days ago

E) The opening of a rival leisure park in Country S with more modern rides and attractions.

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Xochitl

10 days ago

B) The average age of the population in Country S is increasing because of a fall in the birth rate.

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Otis

17 days ago

A) The growing strength of the emerging economies in Africa, Asia and South America.

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Carlee

1 months ago

Hold up, what about A? The growing economies could mean more potential customers, no? Unless they all just want to build their own roller coasters...

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Ma

1 months ago

Hmm, I'm not sure. Maybe B, C, and D? The government restrictions on tourists could really hurt their international visitors.

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Whitley

1 months ago

I believe option C is also important. An increase in minimum wage can affect visitor spending at the park.

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Holley

1 months ago

I agree with Jin. A rival park with more modern rides can attract MMM's target audience.

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Marvel

1 months ago

Definitely B, C, and E. The demographic shift, higher labor costs, and competition from a modern park will be the biggest challenges for MMM.

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Dion

2 days ago

It's important for MMM to adapt to these changes in order to stay competitive in the market.

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Bernardo

3 days ago

Competition from a more modern park will force MMM to innovate and upgrade their attractions.

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Nicolette

9 days ago

Higher minimum wage will affect their operating costs for sure.

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Leontine

23 days ago

I agree, the aging population will definitely impact MMM's target market.

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Jin

2 months ago

I think option E will have the greatest impact on MMM.

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Lashon

2 months ago

I think the answer is B, C, and E. The aging population and higher minimum wage will increase costs, while the new rival park will impact their market share.

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Zachary

1 months ago

User2

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Aretha

2 months ago

User1

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