Mock exam 4: questions

Strategic Business Leader – Mock Exam 4 – 2Tel

You are a management consultant, working for a consultancy firm based in Farland.
Your firm has been commissioned by 2Tel to advise them in relation to a potential business
opportunity. You are part of the team working on the 2Tel assignment, and you have been asked to
prepare a consultancy report for the client, as well as advising them on other issues.
2Tel is a large mobile network operator, and reported group revenues of $2,400m and profits of
$405m in 20X6, its latest financial year. 2Tel has grown mainly through significant acquisitions both
at home and overseas, and it has extensive experience in buying companies and integrating them
into the group. Its Chairman and Chief Executive is Vincent Spark, who founded the company and
has many years’ experience in the mobile phone industry. It also has a subsidiary, 2Tel Phones,
which operates a network of retail stores and an internet sales division, selling a range of devices in
Farland.
2Tel continually invests substantial funds in research into network technologies. Like all the main
mobile network operators, it is constantly looking for technical opportunities for making its networks
quicker, more reliable and, if possible, cheaper to install and maintain.
Before entering any market (or industry), 2Tel commissions an independent report from an external

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consultant which considers both the external environment of that market or industry (the wider macro-
environment which the market or industry works within) and the competitive environment of the
market or industry itself (the market or industry the proposed company will work within). This report is

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used by the board of 2Tel as part of its evaluation of whether a market is attractive to enter, and if it
does attempt to enter, whether it should enter directly or through acquiring a current operator.
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Your firm has been commissioned to prepare this report in relation to 2Tel’s possible expansion into
The Federates States (TFS).
You have collected and analysed the following information to help you prepare the consultancy
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report and to address the other issues in which 2Tel has asked for your firm’s advice:
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Exhibit 1 – Potential opportunity and environmental analysis of TFS – an overview prepared by one
of your colleagues on the team
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Exhibit 2 – Licensing arrangements and mobile phone usage in TFS – Market intelligence report,
published by Pintel, a leading market research company in TFS
C

Exhibit 3 – Extracts from email from CEO of 2Tel about concerns raised by an institutional investor
AC

Exhibit 4 – Research into TFS bidding and tendering process – findings of Professor Tan (an
acknowledged expert in probabilistic decision making, commissioned by 2Tel to investigate the
bidding process in TFS)
Exhibit 5 – Extract from board paper – background information on T-Me
Exhibit 6 – Internal company notes – 2Tel Phones
Exhibit 7 – Notes from a meeting between Vincent Spark and 2Tel’s head of investor relations, Heidi
Parr
Using this information, you are now starting to prepare the consultancy report and associated tasks
for 2Tel.

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