Question 2 (Marks: 45) Read the following case study containing extracts about SPAR and then answer the questions that follow: Our Business A culture of caring We are a part of the community and community is like family. We strive to give you the highest quality produce, the freshest meats, and granny-approved baked goods, all at the right price, every day. Corporate Our 6 distribution centres, servicing more than 2,000 stores in South Africa under the SUPERSPAR, SPAR, KWIKSPAR, SPAR EXPRESS, PHARMACY at SPAR, TOPS at SPAR and SAVEMOR brands. These brands allow us to offer our communities exactly what they need at just the right price. From our fresh produce to our meat and baked goods, we constantly strive to source the best quality products at affordable prices. After all, youre a part of our SPAR family and family deserve the best.

Our Promise While striving to give our customers an enjoyable and memorable shopping experience, we also offer more than 1000 exclusive SPAR Brand products, available at stores nationwide. Using only the best and freshest ingredients, we make premium quality products at very competitive prices. To ensure we keep ahead of brand standards, we have our products tested by an independent laboratory on a monthly basis. Because we are so sure of our quality, we offer customers a Double Your Money Back Quality Guarantee on all our SPAR Brand products, including fresh produce purchased from us.

Our goal is to provide our customers with unwavering quality of the highest standards, complemented by excellent and personalised service in a warm and inviting, community environment. Spar employer ordered to pay R12 million for breaking labour laws The Commission for Conciliation, Mediation and Arbitration (CCMA) has granted eight arbitration awards in favour of the Department of Labour against a Spar Franchisee. The awards compel the franchisee to comply with compliance orders issued and pay all complainants an amount of R11,935,478, the Department of Labour said in a statement on Monday (24 February).

The decision follows inspections conducted in May 2019 after the Departments Inspection and Enforcement Services (IES) received a series of complaints of alleged gross violations of labour laws which were happening at Spar stores across the country. Ten stores were affected with nine based in Gauteng and one in the North-West. Issues raised in terms of labour laws violations included:

Failure by the employer to issue employees with contracts;

Long working hours without overtime compensation;

Sunday pay, public holidays and leave not granted according to the law;

The complaints also related to the hiring of illegal foreign nationals; and

Illegal deductions. On investigation, all the stores which happened to be violating the labour laws were found to be owned by the same franchisee.

Spar in the news.

Note: In your answers, you will be awarded more marks for integrating the theory and facts from the case study than if you discuss them separately.

Q.2.1 With the use of examples applicable to the case study, explain how the product-service cycle can be expanded for quality planning and control. (10)

Q.2.2 Explain Spars management approach to the marketing function. (10)

Q.2.3 Assess Spars ability to meet the service dimensions that affect customers perception of the service. (10)

Q.2.4 Identify and explain labour law referenced in the case study. (15)