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

categories of interest: client reviews, financial condition, IT capabilities, and government stability. These

categories have been assigned weights of $20\%,10\%,40\%,$ and $30\%,$ 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?

$(10$ Marks$)$

Provider A Provider B Provider C

Client reviews $2610$

Financial condition $842$

IT capabilities $582$

Government stability $312$

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

is used. Factors are rated on a scale of $1-10,$ 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.$)$

$(10$ Marks$)$

Firm Factor $1$ Factor $2$ Factor $3$

A $6710$

B $898$