E3 Exam Question 16

The Financial Director (FD) of your company has heard it said that 80% of profits come from 20% of customers. The FD has accused the sales team of wasting time on serving customers who are not valuable to the business.
The FD has instructed you to take a random sample of 100 customers and to calculate the total contribution the company earned from each customer in the past year. The FD intends to instruct the sales team to stop selling to the bottom 25% of these customers in order to improve profitability.
Which THREE of the following factors should the FD consider when he interprets your results?
  • E3 Exam Question 17

    Company Y is a global business selling a selection of technological items including phones, laptops and other computer related items. In addition Y sells accessory items, music downloads, apps: digital books and video downloads including films and television series through a cooperative partnership with other companies, designed to create value for the customer.
    Which of the following terms best describes what Y has created?
  • E3 Exam Question 18

    According to Porter's Five Forces model, which of the following would be evidence of high buyer power?
  • E3 Exam Question 19

    Company GG is considering its future strategy on delivering a long-term competitive advantage. The Finance Director has recommended that the Board includes in the strategy a separate section on sustainability.
    Which of the following is NOT a correct sustainability statement?
  • E3 Exam Question 20

    MNO has decided to widen the scope of its performance measurement by constructing and using a Balanced Scorecard. MNO has established a range of Key Performance Indicators (KPI's) for use within its Balanced Scorecard.
    Place each of the Balanced Scorecard perspectives against the most relevant KPI.