QUESTION $4$

$(20$ Marks$)$

Massmart is a leading African retail and wholesale group, headquartered in South Africa, that operates in several countries across sub$-$Saharan Africa. Known for its focus on high$-$volume, low$-$margin sales, Massmart specialises in a variety of product categories, including general merchandise, food, liquor, home improvement, and do$-$it$-$yourself $($DIY$)$ products. The company operates through a network of well$-$known brands, including Makro, Game, Builders Warehouse, and Cambridge Foods, catering to both individual consumers and businesses.

$4\mathrm{.}1$ The company is choosing an outside firm to provide its payroll services. It has chosen four comparative

$(10$ Marks$)$

categories of interest: client reviews, financial condition, IT capabilities, and government stability. These categories have been assigned weights of $\backslash (20\backslash \%,10\backslash \%,40\backslash \%\backslash ),$ and $\backslash (30\backslash \%\backslash ),$ respectively. Three potential providers were scored on each of those factors $($see table below$)$ using a scale of $1-10,$ with a score of $1$ meaning, the worst possible and $10$ meaning best possible. Using the factor$-$rating method, which provider should be chosen by Massmart?

$\backslash$begin$\{$tabular$\}\{|$l$|$c$|$c$|$c$|\}$

$\backslash$hline & Provider A & Provider B & Provider C $\backslash \backslash$

$\backslash$hline Client reviews & $2$ & $6$ & $10\backslash \backslash$

$\backslash$hline Financial condition & $8$ & $4$ & $2\backslash \backslash$

$\backslash$hline IT capabilities & $5$ & $8$ & $2\backslash \backslash$

$\backslash$hline Government stability & $3$ & $1$ & $2\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$4\mathrm{.}2$ Massmart is deciding between $2$ foreign firms to provide its call center services. A factor$-$rating method

$(10$ Marks$)$

is used. Factors are rated on a scale of $\backslash (1-10\backslash ),$ with $10$ being the best score. A: If the factors are weighted equally $($respective weights of $\mathrm{.}3333),$ which firm is preferred? B: Suppose your client recommended that Factor $2$ be twice as important as Factor $1,$ while Factor $3$ should be three times as important as Factor $2.$ Which firm is now best using a weighted method? $($Round your weights to the nearest four decimal places.$)$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|\}$

$\backslash$hline Firm & Factor $1$ & Factor $2$ & Factor $3\backslash \backslash$

$\backslash$hline A & $6$ & $7$ & $10\backslash \backslash$

$\backslash$hline B & $8$ & $9$ & $8\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$