Question: PLEASE BE HURRY, I ONLY HAVE 3 HOUR TO ANSWER THE QUESTION. THANK YOU QUESTION (d) the plausible is not in (d) is in (b)

PLEASE BE HURRY, I ONLY HAVE 3 HOUR TO ANSWER THE QUESTION. THANK YOU

PLEASE BE HURRY, I ONLY HAVE 3 HOUR TO ANSWER THE

QUESTION (d) the plausible is not in (d) is in (b)

QUESTION 1 (15 MARKS : 72 MINUTES) Roti Manis Sdn Bhd (RMSB) is a well-known bakery and confectionery producer in state J. Founded about 20 years ago by Madam K, RMSB has grown from a simple in-house bakery into a number of outlets, which sells variety of bakery and confectionery products such as bread, buns, biscuits, cakes, tarts and many other types of desserts. Although sales are done in the outlets, production is done at a manufacturing facility at the heart of state J. Each day, products produced by RMSB will be sent to the outlets early in the morning, to fulfill the sales demand of each outlet. Business has been flourishing throughout these 20 years. RMSB has built good reputation among bread and confectionery lovers in state J as the company produces and sells high quality product with affordable price. The business has its own circle of loyal customers who regularly making orders for events and festivities, and a group of reliable, skillful workers who successfully manage the outlets and manufacturing facility within these 20 years. RMSB also enjoys good financial performance and managed to sustain a sufficient amount of cash flow. However, recently, Madam K realized that RMSB is showing decreasing pattern. Her initial investigation reveals that Covid19 pandemic is not a crucial factor for the decrease as RMSB is categorized in essential business. The main factor is that customers are not satisfied with the quality of product. Since year 2015, RMSB buys its supplies from its sole supplier, Sweet Persimmon Sdn Bhd (SPSB). There is no proper agreement between both parties, and Madam K believed that by having a sole supplier, the purchase of raw materials would be more centralized and easy to manage. However, Madam K realizes that SPSB is now supplying low grade raw materials, resulted in low quality of production. Besides, SPSB has also increased the price of supplies by 10% since a year ago. Madam K realized that she need to do something with regard to the supplies issue. Consequently, she is also considering to do backward integration to support the operation in RMSB. REQUIRED: (a) Explain the root of problem faced by RMSB. (2 Marks) (b) Suggest to Madam K on how to manage good upstream supply chain. (4 Marks) (C) Discuss TWO (2) ways on how backward integration can be done by RMSB. (4 Marks) (d) Advise Madam K if the suggestion in (d) is plausible

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