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TEST1
PART ONE
B 1 It would be advisable for Flacks to consult customers before developing a new product.
D 2 Producing goods for specialist markets might increase Flacks profits.
C 3 Flacks may need to change the function of one of its facilities.
A 4 Flacks should utilise its current expertise to enter a different market.
B 5 Flacks may need to consider closing its current production facility.
C 6 Flacks should develop the connections it has established with leading retailers.
A 7 Expanding the product range would not be a problem for the workforce.
Flacks is a UK-based company that produces fashion accessories for women. How can it continue
to grow its business?
A Susan Falmer
Faced with a shrinking market, cheap imports and competitive pricing, Flacks will have to work
hard to increase its margins. They need to move into a more promising market, one where demand
is growing and where the company can exploit existing skills and contacts. They could think about
brand extension - this would not be a giant leap and the sales force would take it in its stride. Also,
they wouldnt need to re-equip their factory and could use non-UK sourcing if facilities here are in
short supply.
B Mesut Guzel
They have the fundamentals of a survival strategy in a market where outsourced manufacture and
brand differentiation hold the key to success. I think they should initially locate some of their
production in another country, where manufacturing quality tends to be better and it is easier to
meet changing customer demands. But they should also regularly monitor production in Britain
and think about outsourcing all this work abroad at some point if they need it done faster. The
company should continue to work on innovative products, and thorough market research will help
to ensure any new ideas are well received.
C Gary Wilmot
In order to beat their rivals in a highly competitive market, Flacks should ensure their products are
attractive and build on their r
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