QUESTION ONE [25] Read the following article and answer the question that follows Shoprite's expansion plans on track with store numbers climbing Following a record 13 new supermarket openings across Africa in the last week of October - 10 in a single day - Africa's number one retailer is on track with its expansion programme planned for the 2016 financial year. The Shoprite Group created more than 1600 new job opportunities in the process. Of the 96 new Shoprite, Checkers, Checkers Hyper and Usave supermarkets confirmed to June 2016, almost a third (30) have already started trading in the first four months of the fiscal. During the same period the Group had also opened eleven furniture stores, two Hungry Lion fast food outlets, and 16 LiquorShops. By Christmas the number of new supermarkets since July 2015 will have risen to 50. The Shoprite Group's store opening programme is primarily geared at accommodating an expanding market linked to population growth. In South Africa the present rate is just over 1%. Where possible, the Group positions new stores in areas not previously served by its supermarkets or in those showing strong population growth. Outside of South Africa, the Group is increasingly growing into sub-Sahara Africa where it continues to strengthen its presence in key economies such as Angola and Nigeria where Shoprite will be celebrating its 10th birthday in December 2015. Zambia is still one of the Shoprite Group's largest businesses outside of South Africa and October saw the retailer celebrating 20 successful years in the country where it has also established the largest supermarket chain in the nation with 25 supermarkets apart from 16 Hungry Lion outlets and four OK Furniture stores. By the end of the first six months of the fiscal, the Group plans to trade from 1152 supermarkets, 492 furniture stores, 183 Hungry Lion outlets and 315 LiquorShops. According to the 2015 Deloitte African Powers of Retailing report, Shoprite Holdings was again named the number one retailer in Africa, a clear indication of the Group'ssuccessful recipe to focus on low cost pricing and an expanding footprint in locations convenient to customers. Source: https:waw.shopriteholdings.co.zafarticlestewsroomlzm 5fshoprite_s- expansion-plans-on-track-with-store-numhers-climbing.html Question: Companies that expand beyond their borders are often faced with the following questions. 0 How to design products or services and where to build factories, retail shops or offices? 0 Where and how do we obtain the resources needed to create goods or services? 0 What modes of transportation to use and how to manage inventory? Based on the article. analyse and discuss how Shoprite should address its global strategy in expanding into Nigeria, under the following conditions: 0 Differentiation 0 Cost Leadership 0 Response Contextualise your answer to: a Supply Chain Management Issues a Location decisions - Materials Management QUESTION TWO [25] An effective operations manager understands how decisions blend together to constrain the human resource strategy. Acknowledging the constraints imposed on human resource strategy, there are three distinct decision areas of human resource strategy: labour planning, job design and labour standards. Using the following headings, and based on the case study in question 'I, analyse how Shoprite can address their Human Resources Constraint in their move to Nigeria: 0 Product Strategy 0 Schedules 0 HR Location Strategy 0 Process Strategy 0 Individual Differences 0 Layout Strategy QUESTION THREE [20] Read the following article and answer the question that follows 20 million K00 and Hugo's canned Tiger Brands. South Africa's biggest food manufacturer, announced on Monday that it is immediately recalling about 20 million K00 and Hugo's canned vegetable products over safety concerns due to potentially defective cans. This amounts to a recall of 9% of annual production and the final impact is estimated to amount to up to R650 million. Tiger Brand's share price initially dropped 6.40% after the announcement on Monday morning. The issue with the cans, which is a deficient side seam weld that could cause the cans to leak, was initially discovered in May this year with 18 cans at one of Tiger Brand's facilities. The cans came from a supplier. While that batch and several others weren't released for trade. a probe determined that some cans from a defective batch did. It did a test and out of 287,040 cans inspected after a transport and handling test. a side seam leak had developed in two cans. This prompted the recall. "A leak in a can presents a risk of secondary microbial contamination after the canned products are dispatched into the marketplace. Where such contamination occurs, it will present a low probability of illness and injury if the contaminated product is consumed," Tiger Brands said in an announcement. "Tiger Brands considers it appropriate that it institutes an immediate recall of all products that could potentially be affected. This involves the withdrawal of specific canned vegetable products manufactured underthe K00 and Hugo's brands between 1 May 2019 and 5 May 2021 (both dates inclusive), amounting to approximately 20 million cans, which is [approximately] 9% of annual production. "The financial impact of the recall, including the cost of the potentially affected stock that may be written off", transport and storage costs. as well as the loss of margin on the returned stock, is estimated at between R500 million and R650 million." KOO canned fruit and KOO canned pilchards are not affected. Affected canned vegetable products can be returned to any supermarket or wholesale outlet for a refund. Source: https:waw.news24.comffin24fcompaniesf20-million-koo-and-hugos- canned-products-to-be-recalied-20210126 Question: TQM is a philosophy, a way of thinking and working. that is concerned with meeting the needs and expectations of customers. It tries to move the focus of quality away from being a purely operations activity into a major concern for the entire organisation. Through TQM. quality becomes the responsibility of all departments and sections in the organisation. It also targets the costs of quality by trying to reduce particular failure costs. TQM also espouses the process of continuous improvement. TQM places the customer in the forefront of decision-making. It also looks at the concept of internal customer and supplier. It advocates that everyone in the organisation is a customer and consumes goods and services provided by other internal suppliers. Six Sigma. is a comprehensive and flexible system for achieving, sustaining and maximising business success. Six Sigma is uniquely driven by close understanding of customer needs. disciplined use of facts, data, and statistical analysis, and diligent attention to managing. improving. and reinventing business processes Evaluate how the six sigma methodology could have been used by Tiger Brands to prevent this error in their production process. QUESTION FOUR [30] Read the following text and answer the question that follows Supply Chain challenges at LeapFrog LeapFrog which describes itself as a "leading designer. developer and marketer of innovative. technology-based educational products and related proprietary content", had introduced a new educational product called the LittleTouchLeapPad. The distinguishing feature of the LeapPad. whose target market was toddlers. was that it combined high-tech materials and sophisticated electronics to create an interactive 'book' that made appropriate sounds when a child touched certain words or pictures. While LeapFrog was confident the toy would be popular, no one - including the retailers, LeapFrog, and Capable Toys, the Chinese manufacturer who had primary responsibility for producing the LeapPads knew for sure what actual consumer demand would be. Such uncertainty, which is typical for the toy industry, can be problematic because the demand for toys is concentrated around the Novemben'December holiday season. giving supply chain partners little time to react. Furthermore, toy companies planning for holiday sales have traditionally had to place orders many months in advance in February or March to allow enough time for products to work their way to through the supply chain and to retailers' shelves. In effect, toy companies had one chance to get it right. In August 2013, the first inkling that the LittleTouchLeapPad was a hit came when major retailers such as Target and Toys R Us showed sales of 360 units. LeapFrog's forecasting models indicated that if the trend continued. holiday demand for LeapPads would be approximately 1'00 00, more than double what LeapFrog had requested be produced by Capable Toys. LeapFrog and its manufacturing and logistics supply chain partners would have to find a way to produce another 350 000 LeapPads and move them to retail stores within a few months. Within days of developing the revamped demand forecast, LeapFrog started to work with Capable Toys to identify what steps would need to be taken to increase production levels. They found that several constraints had to be removed: a Production moulding - To manufacture the required plastic parts used by the LeapPad, Capable Toys had designed and built two sets of mould tools capable of producing 3 500 LeapPads each day. In 60 days. 210 00 additional units could be produced far short of the quantity needed. a Material - Capable toys and LeapFrog faced a limited supply of key components, including custom designed electronics and Tyvek, a special waterproof paper. - Logistics - Even if Capable toys was able to produce the additional toys required, LeapFrog had to consider how best to get the units from China to the retail shelves in the US. Traditionally toys produced in China travelled by ship. To resolve these constraints: o Capable Toys designed two additional mould sets which improved on the design and allowed Capable Toys to increase its production of LeapPads from 3 500 to 6 300 units per day. This went online on in October. . Capable Toys called on its first-tier suppliers to help identify additional sources for the specialised chips, membranes and other electronics used in the LeapPads. - For the Tyvek paper. LeapFrog had to contract with an American company f'or the printing. - Because of the short lead time, LeapFrog was forced to use air shipping and special fast shipping to get the units to the stores in time for the holiday season. In the end. the decisions LeapFrog made to respond to the surging demand for LeapPads turned out to be the right one. The company used its success with the LeapPad product line (discontinued in 2008) to launch a wider range of educational toys that incorporated even more sophisticated electronics. Adapted from: Bozart CC and Handfield RB (2019) Introduction to Operations and Supply Chain Management 5''1 edition. Pearson Questions: 4.1 Draw a map of' the supply chain for LeapFrog. indicating clearly upstream and downstream supply chain partners and first and second tier suppliers. (10) 4.2 Discuss ways in which the responsiveness of the toy supply chain can be improved. (15) 4.3 Agility is described as an enduring trend in operations and supply chain management. Assess whether LeapFrog demonstrated agility in responding to market demands