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3 Fran?ois, Demetris, José and Giuseppe are a group of students from different Mediterranean countries, taking their

MBA in a large UK city. As part of their course requirements, the group has to come up with an innovative business

idea, research into the feasibility of that idea and then present their business plan to a panel. After considerable

brainstorming they have come up with the idea of a themed restaurant based around Mediterranean cooking, menus

and service provisionally called ‘Casa del Mediterraneo’ and located in the city centre.

Initial research has revealed suitable premises to rent, but also the severe competition they will face in a city that is

very cosmopolitan and well provided for with restaurants serving cuisine from many parts of the world. The city has

a student population of around 100,000 and this, together with a young working population, means that there is a

very vibrant social life and a real willingness to sample food from different parts of the world.

Required:

(a) Identify and evaluate the critical success factors and associated competences that the group should consider

in developing their business plan for the restaurant. (12 marks)

4 Susan Grant is in something of a dilemma. She has been invited to join the board of the troubled Marlow Fashion

Group as a non-executive director, but is uncertain as to the level and nature of her contribution to the strategic

thinking of the Group.

The Marlow Fashion Group had been set up by a husband and wife team in the 1970s in an economically depressed

part of the UK. They produced a comprehensive range of women’s clothing built round the theme of traditional English

style. and elegance. The Group had the necessary skills to design, manufacture and retail its product range. The

Marlow brand was quickly established and the company built up a loyal network of suppliers, workers in the company

factory and franchised retailers spread around the world. Marlow Fashion Group’s products were able to command

premium prices in the world of fashion. Rodney and Betty Marlow ensured that their commitment to traditional values

created a strong family atmosphere in its network of partners and were reluctant to change this.

Unfortunately, changes in the market for women’s wear presented a major threat to Marlow Fashion. Firstly, women

had become a much more active part of the workforce and demanded smarter, more functional outfits to wear at work.

Marlow Fashion’s emphasis on soft, feminine styles became increasingly dated. Secondly, the tight control exercised

by Betty and Rodney Marlow and their commitment to control of design, manufacturing and retailing left them

vulnerable to competitors who focused on just one of these core activities. Thirdly, there was a reluctance by the

Marlows and their management team to acknowledge that a significant fall in sales and profits were as a result of a

fundamental shift in demand for women’s clothing. Finally, the share price of the company fell dramatically. Betty and

Rodney Marlow retained a significant minority ownership stake, but the company had had a new Chief Executive

Officer every year since 2000.

Required:

(a) Write a short report to Susan Grant identifying and explaining the strategic strengths and weaknesses in the

Marlow Fashion Group. (12 marks)

(c) Discuss the factors that might influence whether the initial bid is likely to be accepted by the shareholders of Wragger plc.

(d) Estimate by how much the bid might be increased without the shareholders of Paxis suffering a fall in their expected wealth, and discuss whether or not the directors of Paxis should proceed with the bid. (5 marks)

(b) The CEO of Oceania National Airways (ONA) has already strongly rejected the re-positioning of ONA as a ‘no

frills’ low-cost budget airline.

(i) Explain the key features of a ‘no frills’ low-cost strategy. (4 marks)