How to pass paper five

MW seminar week
Odney 2017
Richard Hemming MW
 How to pass paper five
• Session agenda:

1. Introduction: what paper five requires

2. Analysis methods for writing essays
3. Example questions
4. Considering contemporary topics
5. Conclusion
 How to pass paper five
• Session agenda:

1. Introduction: what paper five requires

2. Analysis methods for writing essays
3. Example questions
4. Considering contemporary topics
5. Conclusion
 1. Introduction: what paper five requires

• The examiners report tells you:

 “Paper 5 is, perhaps more than any other paper, a test of

written communication skills. It aims to give aspiring MWs
the ability to communicate their own ideas, insights and
knowledge of contemporary issues that affect the wine
industry today. The Examiners are looking for evidence of
analysis and independent thought, as well as the ability to
construct an argument with conviction and authority.”
 “The Examiners are looking for evidence of analysis and
independent thought, as well as the ability to construct an
argument with conviction and authority.”
1. Introduction: what paper five requires
 “The general quality of essay writing was good, with very
few poor candidates.”
 “A few candidates let themselves down with very basic
spelling errors of wine terms or names.”
 “Many more promising candidates failed to pass because
they did not answer the specific question on the paper.
The importance of this cannot be over stressed.”
 “Any argument made must be balanced by demonstrating
understanding of the opposing view; personal opinion is
often sought, but it needs to be backed up by credible
arguments; and any question asking the student to
'discuss' requires a balanced consideration of both sides of
the question.”
 1. Introduction: what paper five requires
• Summary:
 Applicable to the entire MW exam:
Analysis
Building an argument
Addressing specific question
Spelling and grammar
And don’t forget ...
Using illustrative examples
Global references
• More specific to Paper Five:
Balance
Independent thought
 How to pass paper five
• Session agenda:

1. Introduction: what paper five requires

2. Analysis methods for writing essays
3. Example questions
4. Considering contemporary topics
5. Conclusion
 2. Analysis methods for writing essays

• PESTLE
• SWOT
• Other methods
 2. Analysis methods for writing essays

• PESTLE
Political
Economic
Social
Technological
Legal
Environmental
 2. Analysis methods for writing essays

• PESTLE
Political
E.g. official governing factors and policies
Wine-specific examples?
 2. Analysis methods for writing essays

• PESTLE
Economic
E.g. Expenditure, profit, inflation, exchange rates
Wine-specific examples?
 2. Analysis methods for writing essays

• PESTLE
Social
E.g. Cultural trends, demographics, seasonal demand,
national ‘personality’
Wine-specific examples?
 2. Analysis methods for writing essays

• PESTLE
Technological
E.g. Automation, robotics, apps
Wine-specific examples?
 2. Analysis methods for writing essays

• PESTLE
Legal
E.g. Local and national legislation, likelihood of
litigation
Wine-specific examples?
 2. Analysis methods for writing essays

• PESTLE
Environmental
E.g. Climate and weather, erosion, pollution
Wine-specific examples?
 2. Analysis methods for writing essays

• PESTLE analysis example: Coca-Cola (2014)

17
Market share of the Coca-Cola Company and other soft
drink companies worldwide in 2013, based on sales
value
70.0%

60.0%
59.6%

50.0%
Global market share

40.0%

30.0%
25.9%

20.0%

11.5%
10.0%

3%
0.0%
The Coca-Cola Co. PepsiCo Inc Nestlé SA Other
18
Pestle analysis

19
 Political Analysis and Factors
• Changes in laws and regulations—changes in accounting
standards, taxation requirements (tax rate changes, modified
tax law interpretations, entrance of new tax laws), and
environmental laws either in domestic or foreign authorities.
• Changes in non-alcoholic business era—competitive product
and pricing policy pressures and ability to maintain or earn
share of sales in worldwide market compared to rivals.
• Political conditions, specifically in international markets—civil
conflict, governmental changes, and restrictions concerning
the ability to relocate capital across borders.
• Ability to penetrate emerging and developing markets—this
also relies on economic and political conditions, such as civil
conflict and governmental changes, as well as Coca-Cola's
ability to form effectively strategic business alliances with local
bottlers, and to enhance their production amenities,
distribution networks, sales equipment, and technology.
 Economic Analysis and Factors
1. During the recession of 2001, most of the governments
took aggressive actions to turn the economy around by
2002.
2. Coca-Cola took note of this, and realized that loan
interest rates would likely rise as the economy
returned. Thus, they took out low-cost loans in 2001 to
fund growth in 2002. They used the loans for research
and development on new products to capitalize on in a
strong 2002 economy.
3. Currently, as global growth is slowing, Coca-Cola may be
watching for a similar opportunity.
 Social Analysis and Factors
1. The majority of people in Europe are showing
increasing interest in healthy lifestyles. That has
strongly influenced the sales within non-alcoholic
beverage sector as many customers switch to bottled
water and diet colas such as Coca-Cola Light or Zero.
2. Time management is a concern for 43 percent of all
households, a percentage that has increased over the
years.
3. Customers from ages 37 to 55 are concerned with
their nutrition. Also, a large portion of the population
are baby boomers. As they become seniors, they are
more concerned about life choices that will impact
their life expectancy. That will continue to affect the
non-alcoholic beverage sector by increasing the
demand for healthier drinks.
 Technological Analysis and Factors
• The efficiency of a company's advertising, marketing, and
promotional programs—For example, television, web, and social
media advertising are constantly evolving. The ability of a company
to effectively promote their products through these channels
impacts sales.
• Packaging design—In the past, the introduction of cans and plastic
bottles increased sales volume for the company due to how easy
these containers were to carry and dispose.
• New equipment—Because the technology is continuously
advancing, new equipment is constantly being introduced. Because
of these new technologies, Coca-Cola's production volume has
increased sharply compared to that of a few years ago.
• New factories—Coca-Cola Enterprises (CCE) has six factories in
Britain that use modern technology to ensure the quality and
speedy delivery of product. In 1990, CCE opened one of Europe's
largest soft drinks factories in Wakefield, Yorkshire. The factory has
the ability to produce cans of Coca-Cola at a faster rate than a
machine gun can fire bullets.
 2. Analysis methods for writing essays

• SWOT
Strengths
Weaknesses
Opportunities
Threats
COCA-COLA SWOT ANALYSIS 1. Significant focus on carbonated drinks
2. Undiversified product portfolio
3. High debt level due to acquisitions
4. Negative publicity
5. Brand failures or many brands with insignificant
amount of revenues

1. The best global

brand in the
world in terms of
Weakness
value ($77,839 1. Bottle water consumption
billion) Growth.

Opportunity
Strength
2. World’s largest 2. Increase in demand of
market share in
beverage
3. Strong marketing
and advertising
SWOT healthy food and
beverages.
3. Growing Beverages
consumption in emerging
4. Most extensive
beverage ANALYSIS markets.
4. Growth through
distribution acquisition.
channel
5. Customer loyalty
6. Bargaining power
over suppliers
7. Corporate social Threat
responsibility
1. Changes in consumer preferences
2. Water scarcity
3. Strong dollar
4. Legal requirements to disclose negative information on product labels
5. Decreasing gross profit and net profit margins
6. Competition from PepsiCo
7. Saturated carbonated drinks market
 COCA-COLA SWOT ANALYSIS
STRENGTHS
1. The best global brand in the world in terms of value. According to Interbrand, The Coca
Cola Company is the most valued ($77,839 billion) brand in the world.
2. World’s largest market share in beverage. Coca Cola has the largest beverage market
share in the world (about 40%).
3. Strong marketing and advertising. Coca Cola’ advertising expenses accounted for more
than $3 billion in 2012 and increased firm’s sales and brand recognition.
4. Most extensive beverage distribution channel. Coca Cola serves more than 200
countries and more than 1.7 billion servings a day.
5. Customer loyalty. The firm enjoys having one of the most loyal consumer groups.
6. Corporate Social Responsibility (CSR). Coca Cola is increasingly focusing on CSR
programs, such as recycling/packaging, energy conservation/climate change, active
healthy living, water stewardship and many others, which boosts company’s social
image and result in competitive advantage over competitors.
 COCA-COLA SWOT ANALYSIS
WEAKNESSES
1. Significant focus on carbonated drinks. The business is still focusing on selling Coke,
Fanta, Sprite and other carbonated drinks. This strategy works in short term as
consumption of carbonated drinks will grow in emerging economies but it will prove
weak as the world is fighting obesity and is moving towards consuming healthier food
and drinks.
2. Undiversified product portfolio. Unlike most company’s competitors, Coca Cola is still
focusing only on selling beverage, which puts the firm at disadvantage. The overall
consumption of soft drinks is stagnating and Coca Cola Company will find it hard to
penetrate to other markets (selling food or snacks) when it will have to sustain current
level of growth.
3. Negative publicity. The firm is often criticized for high water consumption in water
scarce regions and using harmful ingredients to produce its drinks.
4. Brand failures or many brands with insignificant amount of revenues. Coca Cola
currently sells more than 500 brands but only few of the brands result in more than $1
billion sales. Plus, the firm’s success of introducing new drinks is weak. Many of its
introduction result in failures, for example, C2 drink.
 COCA-COLA SWOT ANALYSIS
OPPORTUNITIES
1. Bottled water consumption growth. Consumption of bottled water is expected to grow
both in US and the rest of the world.
2. Increasing demand for healthy food and beverages. Due to many programs to fight
obesity, demand for healthy food and beverages has increased drastically. The Coca
Cola Company has an opportunity to further expand its product range with drinks that
have low amount of sugar and calories.
3. Growing beverages consumption in emerging markets. Consumption of soft drinks is
still significantly growing in emerging markets, especially BRIC countries, where Coca
Cola could increase and maintain its beverages market share.
4. Growth through acquisitions. Coca Cola will find it hard to keep current growth levels
and will find it hard to penetrate new markets with its existing product portfolio. All
this can be done more easily through acquiring other companies.
 COCA-COLA SWOT ANALYSIS
THREATS
1. Changes in consumer tastes. Consumers around the world become more health
conscious and reduce their consumption of carbonated drinks, drinks that have large
amounts of sugar, calories and fat. This is the most serious threat as Coca Cola is
mainly serving carbonated drinks.
2. Water scarcity. Water is becoming scarcer around the world and increases both in
cost and criticism for Coca Cola over the large amounts of water used in production.
3. Strong dollar. More than 60% of The Coca Cola Company income is from outside US.
Due to strong dollar performance against other currencies firm’s overall income may
fall.
4. Legal requirements to disclose negative information on product labels. Some Coca
Cola’s carbonated drinks have adverse health consequences. For this reason, many
governments consider to pass legislation that requires disclosing such information on
product labels. Products containing such information may be perceived negatively
and lose its customers.
5. Competition from PepsiCo. PepsiCo is fiercely competing with Coca Cola over market
share in BRIC countries, especially India.
 2. Analysis methods for writing essays

• Other methods
 How to pass paper five
• Session agenda:

1. Introduction: what paper five requires

2. Analysis methods for writing essays
3. Example questions
4. Considering contemporary topics
5. Conclusion
 3. Example questions

• Apply PESTLE or SWOT to one of the following

questions:

1. Is wine sustainable?
2. Does wine need a ‘Coca-Cola’ brand?
3. “Alternative varieties have a more promising
future than noble varieties.” Discuss.
4. What are the implications of climate change for
the wine industry?
 How to pass paper five
• Session agenda:

1. Introduction: what paper five requires

2. Analysis methods for writing essays
3. Example questions
4. Considering contemporary topics
5. Conclusion
 4. Considering contemporary topics

• What are the most relevant contemporary

topics for the wine industry right now?
 How to pass paper five
• Session agenda:

1. Introduction: what paper five requires

2. Analysis methods for writing essays
3. Example questions
4. Considering contemporary topics
5. Conclusion
 5. Conclusion

• Read the examiner’s report

• Familiarise yourself with different essay-
writing techniques
• Practice
• Know contemporary topics
 And finally …

• Recommended reading:
Thinking, Fast And Slow by Daniel Kahneman
Top-quality non-wine journalism: The Economist,
The New Yorker
Books by Benjamin Lewin MW
• Time management
No need to rush