CASE STUDY $-$ READ THROUGH BEFORE YOU BEGIN TO ANSWER THE QUESTIONS

BEST TVS is a shop in Johannesburg. It sells TVs of all makes and sizes. There is a key rugby match being played in $2$ weeks' time between New Zealand and South Africa and it will be broadcast on TV$.$

Best TVS know that they usually get many customers rushing in to buy a TV$.$ But they find they are very low on TV stock. There has been a glitch in their reordering system.

Best TVs has several competitors selling similar TVs so Best TVs must ensure that they themselves lower in their TV sales prices to beat these competitors, if Best TVs is going to make great sales.

BEST TVS must get new TVs on to the showroom floor, if they are to make great sales prior to the rugby match.

Best TVs decides it has two possible scenarios to follow and Best TVs must choose one of these:

Scenario $1$

Pay a higher price per TV to get the TVs from a Johannesburg supplier which ensures the TVs are delivered almost immediately.

This supplier is charging Best TVs $-$ TV cost $+$ a delivery charge per TV$.$

This means the risk of not having enough TVs to sell, is reduced by using the Johannesburg supplier.

$2$

HC$1$BDMG B

Business Decision$-$making

$2022$

But this can mean less profit margin $($markup to customers$)$ for Best TVs because Best TVs paid a high price for each TV to the Johannesburg supplier. Best TVs could collect the YTVs from the Johannesburg supplier and only pay the TV cost$.$

Scenario $2$

Pay a lower price per TV by getting the TVs from a Cape Town $($CPT$)$ supplier but there may be a delay in delivery getting TVs from Cape Town.

There is a risk that the TVs will not get to the showroom in time.

If the TVs can arrive in time to sell them, this can mean a higher profit margin for Best TV because they bought each TV from the Cape Town supplier at a low price.

Perhaps Best TVs should get their own truck and pick up the cheap TVs from cape Town $($CPT$)$ themselves to ensure there are no delivery delays.

B$1\mathrm{.}1(18$ marks$)$

Review the business decision$-$ making process $($Figure $1).$

The names on some of the steps in Figure $1$ are missing.

B$1\mathrm{.}1\mathrm{.}1$ Name STEP $3$ and then describe why STEP $3$ of the process is important to the Best TVs business to undertake $(6$ marks$).$

B$1\mathrm{.}1\mathrm{.}2$ Name STEP $4$ and then describe why STEP $4$ of the process is important to the Best TVs business to undertake $(6$ marks$).$

B$1\mathrm{.}1\mathrm{.}3$ Name STEP $6$ of the process and then describe why STEP $6$ of the process is important to the BestTVs business to undertake $(6$ Marks$).$

Figure $1$

B$.2(18$ marks$)$

One of the brainstorming tools Best TVs uses to gather information to help them make an informed decisions is Figure $2$ below.

$3$