Highlights
Task:
Question 1
Organic farming and the food industry in Swaziland (10 marks / max. 300 words)
There is an increasing demand in Swaziland for Organic food. This needs to be produced using environmentally friendly farming methods; no genetically modified (GM) crops, artificial pesticides and fertilisers can be used. Any farmer claiming to be organic must be certified by a government approved regulatory body. In addition, food producers must also comply regarding production, packaging and labelling of food.
Regulatory bodies have the authority to forbid the use of misleading labels and product descriptions and can issue fines for inappropriate production. Such bodies may also close operations where regular and frequent non-compliance occurs in relation to production, packaging and labelling of organic products.
With consumer demand in Swaziland increasing for food that is healthy and sourced ethically and locally; organic food status is no longer a perceived luxury niche product, but rather a lifestyle choice. Many consumers . believe that non-organic produce is detrimental to their health and the environment. Major supermarket chains have also started to stock more organic and locally grown food.
A key issue for all farmers is the weather. This can impact the volume (yield) and the quality of the crop and hence the market price. Organic farmers have developed alternative high-tech farming methods to improve their profitability and cash flow. This includes advanced weather information systems to help plan planting, harvesting and irrigation. Climate controlled growing tunnels also provide a pest-free environment with temperature, light, and humidity control.
These methods have increased yield, extend the possible growing season, and allowed crops to be stored for longer before usage or sale, with no loss of flavour or quality.
Using the information from the case above:
Identify and explain in brief any THREE key external factors that impact the farms strategy.
Analyse how these factors create opportunities and threats to the farm’s operations. Discuss at least THREE opportunities and THREE threats.
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Question 2
Europlane Airlines (30 marks / max. 900 words)
Europlane Airlines has headquarters in Vienna, Austria. They have just adopted a methodological approach in the undertaking of the research design and planning phase of a project to streamline its procurement and inventory management operations. The agreed solution involves the merger of these two departments under the current functional structure into a single “inventory management” department located in a foreign European country - Luxembourg. The change has been facilitated by the emergence of a new integrated Supply Chain Management system allowing activities to be seamlessly managed by a single entity.
The main driver behind the choice of location – Luxembourg, was cost, which is much lower due to cheaper labour and land costs, along with a very flexible employment framework. Implementing these plans will necessitate the closure of the 3rd floor of the existing facility headquarters in Vienna, resulting in hundreds of compulsory redundancies.
Using the information from the case above:
Explain how “BP Trends Process Redesign Methodology at the Operational Level” could be used in implementing the new integrated supply chain management system at Europlane Airlines. For each phase of the methodology describe the major activities that need to be undertaken and also the expected outcomes of each phase.
Identify THREE important reasons why staff at Europlane Airlines will be resistant to change. Advise management with THREE effective recommendations that would lessen the staff resistance, as part of the change management process.
Union pressure is indicating that an alternative to such significant redundancies would be to change organisational structures from the current functional approach to Matrix Management. In relation to Europlane Airlines – Explain what matrix management means, draw an appropriate matrix management diagram and discuss TWO associated benefits and TWO challenges of this alternative approach for Europlane Airlines.
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