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Near East University

Faculty of Economics and Administrative Sciences


1988
Department of Business Administration

Mid-Term MAKEUP Exam (Open Book) Spring 2017/2018

Instructions to Candidates

Please respond to all questions written below in relation to the Cafe company project that you have been working on prior
to this exam. You may use any materials you wish during the exam, however, only that written in the spaces below will be
assessed.

Your mobiles should be turned off! You have 60 minutes…Good Luck!

Student no Department Name(s) Surname

1. Study the following financial statements for your cafe company for the years 2013 to 2017 and respond to
a. and b. below: (All figures in million Turkish Liras).

2013 2014 2015 2016 2017

Sales 1000 1200 1200 1400 1500


Cost of goods sold 750 900 800 980 1050
Gross profit 250 300 400 420 450
Expenses 200 200 200 300 300
Net profit 50 100 200 120 150
Gross Profit/ Sales % 25 25 33 30 30
Net Profit/ sales% 5 8 17 9 10

a. How do you explain the financial performance of your Cafe Company based on the above statements?
Why?

b. How do you explain the sharp rise in net profits/ sales % in 2015?

2. Study the following market figures for the years 2013, 2014 and 2015

2013 2014 2015 2016 2017


Market size 60000 70000 90000 120000 150000
Your cafe company sales 1000 1200 1200 1400 1500
Your cafe Company’s market share % 1.7 1.7 1.3 1.2 1.0
Market growth % 10 12 15 20 25
Your company’s sales growth % 10 12 12 14 15
a. Was the market-based performance of your Cafe Company good or bad? Explain using the above figures.

b. Write down a societal mission statement for your Cafe Company. Explain what makes this statement
societal.

c. What do you consider most when formulating your vision statement?

3. A Good marketer never sells products but sells product benefits.


a. What are your Cafe Company’s product benefits?

b. Who are you targeting to offer these product benefits?

c. Why do you need to segment a market?

4.

a. What are the four criteria that you have used to formulate a competitive advantage for your
Cafe Company?

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