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RSM100 Final Test Cases Questions & answers
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RSM100 Final Test CasesDescribe the challenges faced by the movie industry related to the pandemic -
ANS-Even if open, people are scared to go
Changes the movie industry is implementing to deal with the pandemic? -
ANS--Filmmakers delaying the release of movies
-Most theaters are only playing older movies
-Filmmakers putting movies on premium video and skipping the screening process at
theaters
-Shortening the time movies are played in theaters
-Closing low performing theaters
-Enabling renting out the whole theater for your whole family/friends
Are these changes to the movie industry sustainable? - ANS--High performing theaters
won't make profit from renting out the whole theater - better for smaller/low performing
theaters
-Playing older movies isn't sustainable
-Theaters depend on concession sales
-Movie makers lose out on international markets when they move to premium video
Are there any potential drawbacks of these changes to the movie industry? -
ANS--Theaters are huge - not made to fit a couple of people
-Difficult to generate revenue (enormous theaters)
-Reduce concessions sales
-Worry about cost of making movies and if they can make profits
What advice do you have for the traditional movie business? (Theaters) - ANS--Secure
some more financing
-You still have to pay rent and pay fixed costs
-Convince investors high demand for movie theaters after pandemic so market will be
there
-Negotiate with landlords for rent relief
-A lot of theaters don't own their locations, they rent them
-Say it's better to keep me here and have the chance of me paying rent in the future
than to kick me out and not fill the spot
What advice do you have for the traditional movie business? (Producers) - ANS--Sell off
to Disney
,-Disney is likely to take over entire movie industry
-Disney provides entertainment versus a movie market which makes them more
profitable
-They can make a ton of money in the streaming services
-Not too much of a good option because people are giving up
-Sell the streaming rights of upcoming blockbuster movies to them - Exclusivity deals
-"now streaming, only on X"
-Major movies can get higher returns from streaming services if they offer exclusivity
-Return on investments won't be as high as box office levels but they will go up
-Both beneficial to the producer and the streaming services due to increased ROI,
increased subscriptions and the producer isn't selling off anything valuable
-Removes cost of delaying release for producers, wraps up the project and allows them
to move on
What decision did Airbus have to make regarding the A380? - ANS-Whether to
start/discontinue production, if the plane was profitable or popular, etc.
Did Airbus make the right strategic decision given the information they had at the time?
- ANS--Yes, the aircraft helped to increase Airbus' image, stature, and popularity.
-Before the pandemic, airlines didn't have to worry about popularity or profitability
because demand was high.
-Comfort > speed
Did Airbus rely too much on one airline to make this model successful? - ANS--Yes,
relied on Emirates (the largest purchaser of the A380s).
-Needed full flights for profit.
-Higher profit margins for premium classes but after the pandemic, most premium
services will be cut
-only Asian and European customers
-all eggs in one basket (Emirates).
-Other airlines were not as invested in the A380 as Emirates.
Why was the A380 introduced in the first place? - ANS-Because long haul flights were
popular.
What impacted the A380's profitability for both Airbus and airlines? - ANS--Had to be full
in order to be profitable
-Luxury seats had to be full.
-Passengers wanted nonstop not "hub and spoke" travel
-To fill seats airlines would reduce prices drastically, causing profit margins to decline.
, What makes the A380 project specifically so risky? - ANS--Relied only on Emirates
-No secondary market as well
What did Airbus do wrong from a strategy perspective? - ANS--Didn't consider how
airlines differ across countries
-Differ in expectations, food, service
-Reliance on one airline, extrapolation
How has apple's revenue composition changed in recent years? - ANS-Less reliance on
iPhones, relying on iPads etc.
What are the sources of Apple's slowed sales: - ANS--Huawei, google phones,
competing brands, saturated market
-Market pressure to bring prices down despite Apple's high-end positioning.
-Phones are the same regardless of brand or OS.
-iPhone was different when it first released but has lost its competitive advantage since
cheaper brands now have same features.
Strategic Implications for Apple - ANS--Move towards wearables and service-based
-Incremental changes are minimal (phone 11-->12)
-Save new features for new versions
How is Apple's product mix likely to change? - ANS--Important for Apple to maintain
brand exclusivity after launch of new cheaper models, which was against Steve Jobs'
philosophy.
-Don't spread their product offering too thin because competitors can beat them,
especially on the cheaper models.
How are Apple's shares valued? - ANS-valued based on past income and earning
potential
How does Apple's strategy change impact the future value of their shares? - ANS--Make
sure income is high so share values are also high
-Preserve market share or income, so share values don't decrease.
How does a low Canadian dollar affect international trade and the economy? -
ANS--Cheaper for other countries to buy Canadian goods more exports
-Brings more money into the country
-Attracts more investors because its cheaper
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