— Read the article below about a fast-food chain and the questions on the opposite page.
— For each question 13- 18, mark one letter (A, B, C or D) on your Answer Sheet for the answer you choose.
Turning around a fast-food chain
Sparrow is a well-established fast-food chain, with 200 restaurants run by franchisees, and almost as many company-owned ones. Some years ago, the group to which Sparrow belonged was taken over by another company, which owned a variety of retail businesses. Although demand for a Sparrow franchise showed no sign of declining, overall the chain was in an unhealthy state. Its properties, the majority of them in small towns, needed refurbishment to stand comparison with its competitors. With more and more fast-food concepts reaching the marker, the distinctive Sparrow menu had to struggle for attention. And to make matters worse, its new owners had bought it as one of a number of companies, and had no plans to give it the investment it required.
Sparrow stagnated for another two years, until a new chief executive, Carl Pearson, decided to build up its market share. He commissioned a survey, which showed that consumers who already used Sparrow restaurants were overwhelmingly positive about the chain, while customers of other fast-food chains, particularly those selling pizzas or hamburgers, were reluctant to be tempted away from them. Sparrow had to develop a new promotional campaign - one that would enhance-the public's perceptions of the chain and set it apart from its competitors.
Pearson faced a battle over the future of the Sparrow brand. The chain's owner now favoured taking Sparrow's outlets upmarket and rebranding them as Marcy's restaurants, one of its other, better known brands. Pearson resisted, arguing for an advertising campaign designed to convince customers that visits to Sparrow restaurants were fun. Such an attempt to establish a positive relationship between a company and the general public was unusual for that time. Pearson strongly believed that numbers were the key to success, rather than customers' spending power. His arguments won the day.
The campaign itself broke some of the fast-food industry's advertising conventions. The television commercials played down traditional product shots - most of its competitors' advertisements had mouth- watering shots of food - and focused instead on entertainment and humour. The usual jingles gave way to spots featuring original songs performed by a variety of stars. Instead of trying to show the superiority of a specific product, the intention was to position Sparrow in the hearts of potential customers.
Pearson hired two advertising agencies to handle this campaign, and spent a considerable time with them, discussing and developing the brief he had outlined. Once that had been agreed in detail, he left them m get on with their work. Instead of dividing responsibilities, as would normally happen when two agencies collaborate, they decided to develop a team concept, with both having equal opportunities for creative input.
Pearson also made other decisions which he believed would contribute to the new Sparrow image. He laid off 400 employees in the headquarters and company field offices, and reduced the management hierarchy. He insisted on uniformity of standards in all restaurants, and warned franchisees that if they ran untidy, unprofitable restaurants, Sparrow would dose them, or if necessary, buy them. In addition Sparrow offered to lower the rent of any franchisees who achieved a certain increase in their turnover.
These efforts paid off, and Sparrow soon became one of the most successful fast-food chains in the regions where it operates.
According to the first paragraph, what problem did Sparrow face when it was taken over?
A. Its new owners were uninterested in spending money on it.
B. Its products were too similar to those of its competitors.
C. It received few applications from potential franchisees.
D. It had a number of restaurants which were poorly situated.