CIMA Exam CIMAPRA19-P03-1 Topic 3 Question 63 Discussion

Actual exam question for CIMA's CIMAPRA19-P03-1 exam

Question #: 63
Topic #: 3

JHG manufactures inexpensive cars that compete largely on price Its cars have very basic equipment and small but economical engines JHG's Board is considering launching a luxury brand of cars that will be far better equipped, more comfortable and have much better performance

Which THREE of the following would be relevant factors to incorporate into the stress testing of this new strategy to create a luxury brand?

AReductions m motorway speed limits

BThe need for consumer research

CIncreased tax on vehicle emissions

DThe cost of designing new cars.

EPotential changes in interest rates.

FSales of JHG's existing range of cars

Show Suggested Answer

Suggested Answer: C, D, F

by Herminia at Jan 14, 2025, 02:36 AM

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Lashunda

3 days ago

I agree, understanding what customers want is key to success.

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Arlen

4 days ago

Consumer research (B) is a must! You can't just assume people will buy a luxury JHG car. And don't forget about emissions taxes (C) - that could really impact profit margins.

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Ashlyn

6 days ago

Definitely need to consider the cost of designing new cars (D) and potential changes in interest rates (E) - those will be huge factors in the success of the luxury brand.

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Flo

8 days ago

I think consumer research is crucial for this new strategy.

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