Read the scenario below and answer the questions that follow:

Sisal is an abundantly available plant in Limpopo. Some use its dry leaves for firewood, but some use it to create a thread and use that thread for making different kinds of fashionable accessories. A community-based organisation, Heritage Craft, started making sisal handbags and baskets during the COVID-19 lockdown this was the only way they could pass the time. It is a community of young people, who got inspired by seeing older women adorning themselves with sisal made accessories. This helped them realise that they could make some money out of this.

The best break for Heritage Craft came when they decided to display their products at a regional art fair in the city. This is where they met some tourists from China, Indonesia and Korea, who purchased their products to almost stockout this group of tourists expressed interest in further purchases; they asked the young people if their products were available online. The team of young people were so inspired that they created pages on Facebook and Instagram they even connected with most of the customers they had met at the art fair, and suddenly their online reputation started spreading in tourism circles as well.

Their first order to Thailand was delivered without a hitch, and delightedly, they embarked on a process of establishing their business as a professional establishment, underpinned by basic supply chain management principles. They are even thinking of starting a small-scale transportation business, to keep the money on transportation within the business.

Q1.1. The team at Heritage Craft is considering outsourcing some of its production activities for international orders. Identify five (5) benefits of outsourcing and use them to argue for the implementation of outsourcing for Heritage Craft.

Q.1.2 Argue for the use of value-of-service pricing and third-degree price discrimination by Heritage Craft when sending goods overseas

Q.1.3 Assess whether Heritage Craft would be able to capitalise on autonomous vehicles and alternative fuel technologies as opportunities in transportation technology, should they implement a transportation business.