CIMA Exam CIMAPRA19-P03-1 Topic 4 Question 54 Discussion

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

Question #: 54
Topic #: 4

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 Cecil at Sep 11, 2024, 05:34 AM

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Toshia

6 months ago

Hmm, the need for consumer research is a no-brainer. They'll want to make sure people are actually willing to pay extra for the 'luxury' experience. Otherwise, it'll be a flop like my attempt at stand-up comedy.

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Judy

5 months ago

Alba: True, they can't overlook the financial aspect of creating a whole new line of cars.

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Kallie

5 months ago

The cost of designing new cars is also crucial. They need to budget wisely for this luxury brand.

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Alba

5 months ago

I agree. It's important to understand the market before diving into a new strategy.

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Ula

5 months ago

Consumer research is definitely key. They need to know what customers want.

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Carma

6 months ago

The cost of designing new cars is also important to consider.

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Nguyet

6 months ago

Haha, the Board better not forget about the sales of the existing car range. Gotta make sure the new luxury brand doesn't cannibalize their cash cow!

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Bernardine

5 months ago

The cost of designing new cars is a big factor to think about for the luxury brand.

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Nada

5 months ago

Consumer research is also important to understand what customers want in a luxury car.

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Barrie

5 months ago

Definitely, sales of the existing range are crucial to consider.

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Weldon

6 months ago

The cost of designing new cars and conducting consumer research are crucial. They'll need to ensure the luxury brand resonates with the target market and is financially viable.

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Virgie

5 months ago

D) The cost of designing new cars

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Huey

5 months ago

B) The need for consumer research

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Lenora

5 months ago

A) Reductions in motorway speed limits

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Lashanda

6 months ago

I agree, understanding what customers want is key.

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Colton

7 months ago

Reductions in motorway speed limits, increased tax on vehicle emissions, and potential changes in interest rates are definitely important factors to consider. The Board should not overlook the impact of these external factors on the luxury brand's success.

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