Question 1 (30 Marks) Read the following extract and answer the questions below: Green Growth Green Growth is a charitable organization that specializes in promoting sustainable gardening and landscaping practices. Its mission is to enable individuals to create and maintain eco-friendly gardens and landscapes while providing employment opportunities to individuals facing challenges in traditional workplaces. Green Growth currently employs 200 people with disabilities and 25 able-bodied individuals at its facilities located on a reclaimed industrial site. These facilities, once warehouses, have been transformed into production and storage spaces, all modified to accommodate individuals with disabilities. Product Range and Manufacturing Green Growth produces a range of sustainable gardening and landscaping products, including composters, rainwater harvesting systems, organic fertilizers, eco-friendly pesticides, and garden tools. The production of these items is primarily carried out on-site. The composters and garden tools are crafted using recycled materials sourced locally and stored within the premises. These products require minimal training and are packaged for sale after manufacturing. Green Growth operates its own electric vehicle fleet for material collection, although the vehicles are aging and require replacement soon. More complex items, such as rainwater harvesting systems and organic fertilizers, are procured in bulk from suppliers and stored in the warehouses. Manufacturers arrange the delivery of these items to Green Growth. The products are kept in storage until they are ordered by customers. Upon receiving an order, the products are inspected, branded with the Green Growth logo, repackaged in their original materials with Green Growth labels, and then dispatched to customers. Some inventory remains unsold, leading to occasional write-offs due to obsolescence. All Green Growth products are priced at cost, plus a margin to cover wages and administrative expenses. Regardless of whether customers order online or by phone, the prices remain consistent. Customers also have the option to make voluntary donations to support Green Growth's sustainability initiatives, and approximately 30% of customers choose to do so. Ordering and Marketing Green Growth promotes its products by distributing one-sided promotional flyers in gardening centres, community centres, and local environmental organizations. These flyers provide information about Green Growth, along with a direct phone number and a website address. Customers can make purchases by contacting Green Growth directly or by placing orders through the website. The website offers detailed product descriptions, photos, and a secure payment gateway. Customers who call Green Growth directly engage in discussions with sales staff to discuss product recommendations and potential purchases. On average, each sales conversation lasts ten minutes, and only half of these inquiries result in a sale. While 20% of sales occur through the website, the organization recognizes that some of its customers are less tech-savvy and lack internet access. Green Growth utilizes a national courier service for product deliveries, and customer support for purchased items is provided by the original manufacturers. Competitive Landscape Green Growth faces growing competition from commercial firms offering similar eco-friendly gardening and landscaping products. Last fiscal year, the organization experienced a deficit of R 1,600,000, leading to the sale of a portion of its reclaimed industrial site to cover expenses. Many of the commercial competitors boast sophisticated sales and marketing operations and often source products directly from manufacturers in lowlabour-cost countries. In this revised case study, we've maintained the style and tone while introducing the "Green Growth" charity in the sustainable gardening and landscaping industry. The core principles of this case study, including employment opportunities for individuals with disabilities, product manufacturing, pricing strategies, marketing, and competition, remain consistent with the original case study.

Required: Green Growth fears for its future and has decided to review its value chain to see how it can achieve competitive advantage.

Question

1) Based on the reading analyze the primary activities of the value chain for the product range at Green Growth.

2) Evaluate three changes Green Growth might consider to the primary activities in the value chain to improve their competitiveness, whilst continuing to meet their charitable objectives.