PCM4705 2021 MODEL QUESTIONS 1. In organization X, Khethiwe is Head of Finance, Kim is Head of Procurement and you are Head of Projects while Rasheed is the Executive Director. Explain to Rasheed ways in which Khethiwe and Kim's departments contribute to projects in the organization. [6] 2. Lisa is a project procurement manager at Megasolar, a renewable energy contractor constructing solar power plants in the North West Province, South Africa. Two days after placing an order for the supply of 200 specialized solar substations (complete sets) with Suntrap Giants, the only solar substation equipment and material supplier based in Durban and Gauteng provinces in South Africa, there were social unrests. Lisa urgently calls you for advice. a. Suggest how the social unrests such as these impact Megasolar's project. [5] b. Looking at the above situation what is the ideal procurement model for solar substations. Justify your choice. [2+4] 3. Due to the situation in scenario 2 above, Megasolar suggested to cancel the contract with Suntrap Giants and order from China and ship it to the Cape Town habour. Sun trap Giants accepted cancellation at no cost on both parties. The company now needs to know the economic factors to consider when importing from China. Discuss. [6] 4. During the COVID 19 induced lockdown, ABC Holdings, a pharmaceutical company has noticed a drop in the consumption of energy drinks, body building pills and supplements and a sharp increase in the demand for flumel, a flu treatment drug. Your friend who is working for ABC wants to know why this is so. Explain this trend in terms of buyer bargaining power. [5] Your organisation is considering whether to hire or buy construction equipment for one of the social housing project they recently won. If you buy, the cost is two million rands (R 2 000,000), and the cost of procurement and integrating in your company is three hundred and fifty thousand rands (R 100,000). If you want to hire, you pay two hundred thousand rands (R 250,000) per month for 8 months. The overhead costs apportioned to the project will be R400,000. Which option will you choose- buy or hire? Show all calculations. [6] 6. Match the word/s in column A with those in Collumn B A. ECONOMIC FACTOR A.buyer bargaining power B. C. Interest rate