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Transcription of this question: 3.SGSSGS operates a worldwide delivery business. SGS’s aim is to deliver all packages on time, at lowprices, anywhere in the world. Its Chief Executive Officer (CEO) Jean-Paul Lominé is known evenby customers as an autocratic leader. Twice a year he sets prices and targets for costs and customersatisfaction.SGS has three main competitors, Company A, B and C.SGSCompany ACompany BCompany CPerceptionOf priceLowMediumLowHighPerception OfreliabilityMediumHighLowHighPrimary market research revealed that customers value delivery on time, but many would pay higherprices for a more environmentally friendly service. It also showed that customers did not knowwhether SGS followed socially responsible “green” (environmentally friendly) practices. Customersalso believed that the company’s current autocratic leadership style did not fit with “green” practices.Jean-Paul decided to change his leadership style from autocratic to situational* _ He wrote a new aimfor SGS: to make it the world’s greenest delivery company. He ordered the Operations Department torecommend possible strategies. The Operations Department suggested two:purchase new, energy-efficient airplanes• adopt new software to set fuel-saving air routes.The Finance Department calculated that purchasing new airplanes would be a significant costresulting in higher prices to customers. Tactically SGS would purchase a new airplane each time anexisting airplane required significant expenditure to keep it flying. Adopting new software wouldrequire major computer upgrades, but the cost Of the investment would be quickly recovered fromfuel savings. The Marketing Director reported to Jean-Paul that if customers did not realize thatSGS was now more environmentally friendly, they might think that it had only increased prices.Jean-Paul, however, refused to listen to the Marketing Director.(Question 3 continued)(a)(b)(c)(d)(e)Identify two methods Of primary market research that SGS may have used.Using information from the table, construct a fully labelled position/perceptionmap Of SGS and its three main competitors.Explain one disadvantage Of Jean-Paul changing to a situational leadership style.Examine the relationship between investment, profit and cash flow for SGS.Discuss the interrelationships between SOS’s aims, strategies and tactics.[2 marks][4 marks][2 marks][5 marks][7 marks]

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