AutoSave ON A H . C G P ... w IRM Formative Assessment 2 (2) - Saved ~ Q Home Insert Draw Design Layout References Mailings Review View SigniFlow ? Tell me Comments Editing Share EX Outline Ruler One Page Gridlines BE Multiple Pages Print Web Focus Immersive Zoom Zoom Macros Layout Layout Draft New Arrange Split Switch Reader Navigation Pane to 100% , Page Width Window All Windows 21 161819 10 11 12 13 14 15 16 17 18 Question 3 Integrated Group Supply Chain Evaluate the appropriateness of the Monte Carlo simulation in analysing risks for Massmart and the retail An integrated supply chain is a brilliant idea with a big impact on the group. This would allow sector. for Massmart to buy in bulk, reduce transportation and storage cost and keep up to date with all of the supply issues facing each business. Moreover, through integration, Massmart could Risks use the bulk buying to purchase more of the common products at a lessor price. Closing Down Dion Wired Introduction of e-Commerce platforms The impact of this risk was probably medium and meant that Massmart lost customers for a The impact of this decision or risk is medium. This is because most e-commerce platforms are for small products such as appliances and clothing. It would be innovative to buy building while but could use the funds to help grow its more successful business such as Makro and Builders Warehouse. In actuality, the Dion Wired website now redirects traffic to one of materials from the comfort of one's home. The recommendation in this regard is that Massmar Massmart's struggling businesses, Game. Dionwired (2023). The recommendation in this must evolve to include delivery services on even those products that aren't usually delivered regard is that Massmart handled this with the care it needed, ensuring that its customers are such as building materials. Given its already big fleet, it could offer delivery services for much channelled to a store within its group. Hence attempting customer retention. cheaper than existing market players Sale of Masscash stores to Shoprite Checkers (Jumbo, Cambridge and Rhino Question 3 The impact of this sale was small as it was losing money but meant that Massmart lost its Evaluate the appropriateness of the Monte Carlo simulation in analysing risks for Massmart and the retail sector. limited position in the food retail and supermarket sector. Even if wanted to return to this market it would have great difficulty as it has essentially increased its competitors market power. The recommendation would have been to sell to a competitor with less or no market power in that sector such as the PEPCO/ EDCON group Transition to Solar Power in over 12 stores nationwide. The impact of transitioning to solar power was big on several fronts. First it meant that Massmart could save millions on electricity and generator fuel costs and that Massmart was moving toward an eco-friendly brand identity. This would also help Massmart's reputation as one of the first few stores in South Africa to consider the environment as part of it ordinary business activities. Extension of Black Friday Sale The extension of the Black Friday sale at Game and Makro would ordinarily make a very small impact on Massmart's income, especially considering every store in the country has it. The recommendation would be to continue the Black Friday sale but have a staged groupwide sale. For example, a Pink Tag sale for the Game stores in February marketed as a Valentines Month Sale, and a Yellow Tag sale for the Makro stores in September marketed to coincide with Spring. Looting in July Civil Unrest The impact of the civil unrest had to be big on Massmart not only in terms of pure losses but In terms of interruptions in its operations across the country as a warehouse was affected. The recommendation in this regard is that Massmart must have insurance to cover the loss and damage and have business continuity plans in place. An example, redirecting supplies from some warehouses to cover supply gaps or entering into supply contracts with its competitors in instances such as there. Covid 19 Lockdown and Restrictions The impact of Covid 19 was big on businesses such as Massmart, for one it is not an essential food store and it goes not ordinarily offer quick delivery of goods as compared to its competitors in other markets. Realistically, there was nothing anyone could have done especially considering there were restrictions on movement and international trade. Page 4 of 4 1639 words X English (South Africa) Accessibility: Investigate Focus IE + 80%