(a) Review the current status of General Dealer Store

(b) Identify current challenges by considering all the salient issues of operation of the business, inventory of the shop and general issues of choice of procurement configuration.

(c) Prepare a report covering issues under (a) and (b) above and make recommendations for General Dealer Store. see case study below:

Case Study 1: General Dealer Store John Mpinya grew up in the rural areas of Eastern Cape. His father, who owned a General Dealer store inspired him to become an accountant. After he graduated with his studies in accounting, he was fortunate to work for major accounting firms and was able to gain knowledge in industry. His dads business which had been in existence for over 20 years was still doing well, this was because many locals were depending on it for various items such as groceries and hardware supplies. Johns career also flourished as he received several promotions in the company he was working for. In the year 2021, Johns father became very ill and was not able to run the business on an everyday basis. He then pleaded with John to take over the business. John knew that this was a huge sacrifice for him as he would have to give up his illustrious career and settle to go back to the rural area, which is his home, to support the business. This is because the job of running the business was not something he could do remotely. After much deliberation, he agreed to take over the business. Being inspired by his dad, John had a vision of taking the business to the next level so that it continues for generations to come. On the first day of work, his dad introduced him to all the staff members. The store employed about 50 people and all of them were locals. John received a warm welcome from the employees, and everyone was excited about him taking over the business. There was hope that John will bring in fresh ideas and expand the business. John knew that being an accomplished accountant was not the same as managing such a business, therefore he will have to learn new skills, and time was of the essence. In his first month of being in charge, he decided not to implement any changes, but to observe the daily operations of the business. In reviewing the inventory of the shop, he noticed that some of the items on the shelves, especially from the hardware side, are not moving fast enough so that the business can receive profit sooner. When he questioned the employees about this, the feedback he received is that hardware items are not the same as food, therefore there should be no expectations of selling such items within a short space of time, especially in a rural community. John was not pleased with this answer, but concluded in his mind that he will need to review this. He also noticed that on occasions there will be customers coming to the shop, leave empty handed and be told that the item they were looking for will be available within a few days. Such promises were often not kept, and some customers were opting to go to the nearest town, but this was also costing them. This was not sitting well with John, especially given the fact that some customers often had to walk long distances to get to the shop. When speaking with the employees, it was clear that there was no good relationship between the store and its suppliers. Since it was store in the rural areas, the suppliers often did not prioritise them. There was clearly no procurement system in place. John received news from one of the employees that there is a petrol station that is being built in the area, next to a national road. This petrol station will also have a convenient shop. John was worried about this type of competition, especially given the fact that his store is not doing well in many areas to satisfy its clients.