Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

Required: 
(ii) 
Select the term that appropriately fills gap 2 above; i.e. select A, B, C or D. 
 
 
(1 mark each = 2 marks in total) 
(Total: 4 marks) 
9
POL bottles and sells natural spring water in country H. It is the best-selling brand of bottled 
water in country H and has a highly recognisable brand name. POL is long-established and 
has a very experienced management team. Many years of high profits have enabled the 
company to build up significant cash reserves. 
The market for bottled water has been slow-growing for many years in country H, with 
consumers switching to flavoured waters, which are not offered by POL. Nearby country I 
(which POL does not currently operate in) is seeing significant growth in this market. 
One of POL’s managers has recently noted an article in a popular newspaper in country H 
which suggested that bottled water may be harmful to health due to high levels of toxins 
from the plastic bottles the water is sold in. POL is one of the few bottled water 
manufacturers to sell its water in glass bottles, which the article suggests is safe for 
consumption. 
One of POL’s successful smaller competitors, AQA, has recently been put up for sale by its 
owners who wish to exit country H. POL’s management team is considering making an offer 
for the company in order to increase their market share in country H. 
(a) 
Below are some key issues which POL’s managers have identified as part of a SWOT 
analysis: 
A 
Expansion into bottled water sales in country I 
B 
Potential health risks from plastic bottles 
C Strong 
cash 
balances 
D 
Launch of new flavoured waters in country H 
E Experienced 
managers 
F 
Strong brand name 
G 
Potential purchase of AQA 
H 
Slow growth in the bottled water market in country H