Question $3(25$ marks$)$In many small towns across South Africa you will always see a gift shop on the main street.However, these stores have been battling against the larger supermarkets and pharmacies thatalso sell gifts. A ray of hope emerged three years ago when a company by the name of PepperTree Collective $($PTC$)$ came to the rescue, whereby these small gift shops could join andbecome members of PTC $.$ The gift stores could benefit from bulk discounts on certain itemswhere PTC would purchase items in bulk directly from the manufacturers and store them inregional hubs. Deliveries to these hubs were made by supplier courier companies chosen fortheir reliability and competitive rates.Despite PTC not having its own brand, each of the regional hubs had the ability to repackagesupplies into smaller amounts that were appropriate for each store. Local couriers were thendispatched to the member stores with their orders. A sizeable amount of the savings wastransferred to the member stores of PTC after the group negotiated sizable discounts withmanufacturers. In comparison to buying directly from wholesalers, stores saved $10\%$ onaverage, according to a recent survey.Beyond cost savings, PTC offered additional benefits: Personalised marketing kits: These kits included promotional flyers which are perfect forlocal distribution. Distinctive shop signage: The signage incorporated a common design element that gavea sense of community and brand recognition, while still allowing each store to retain itsunique charm. Customisable display units: Stores could choose from a variety of in$-$store display unitsfor certain goods featuring the PTC logo$.$Not every product is available from PTC$.$ Store owners committed to buying core items fromPTC, but they found unique products and perishables, such as fresh flowers on their own.Deliveries are made every two weeks to member stores using a standing order for productsagreed between the member and their PTC sales representative at a meeting they hold everythree months. Variations to this order can be made by telephone, but only if the order isincreased$.$ Downward variations are not allowed. Members cannot reduce their standing orderrequirements until the next meeting with their representative$\mathrm{.}8$PTC initially thrived, however, according to recent reports, its members are becomingincreasingly dissatisfied. These are their concerns: The need to continually review prices to compete with supermarkets and pharmacies Low brand recognition of PTC and its members A desire for more flexibility in ordering specific products beyond the core productsIn response to this feedback, PTC is re$-$evaluating its business model with a particular focus onthe supply chain to address these issues and ensure the continued success of its memberstores around the country.REQUIRED:a$)$ Identify and discuss the primary activities of the value chain for PTC$.(5$ marks$)$b$)$ Explain how PTC should reorganise its upstream supply chain to solve the issuesmentioned in the above scenario. $(10$ marks$)$c$)$ Explain how PTC should reorganise its downstream supply chain to solve the issuesmentioned in the above scenario $(10$ marks$)[25$ marks$][$Grand Total $75$ marks$]$