Read the below scenario and answer ALL questions in this section.

A South African beverage company, renowned for its innovative fruit juice blends, plans to expand its operations into international markets such as Europe and Asia. Evaluating operational capabilities becomes crucial to ensure that production facilities, supply chain networks, and technological resources can meet the demands of these new markets while maintaining cost efficiency and quality standards. As part of developing their global operations strategy, the company must ensure that its production systems can adapt to different regulations, local market preferences, and logistical challenges, allowing it to maintain a competitive advantage in the face of strong competition. However, during the expansion, inaccurate demand forecasts lead to significant disruptions in the supply chain. The company experiences overstocking in some regions, leading to wasted inventory and financial losses, while other regions suffer stockouts, damaging customer relationships and market entry plans. By leveraging advanced data analytics and demand planning, the company aims to improve forecasting accuracy, aligning supply with demand more effectively across global markets.

QUESTION $1$

Inaccurate forecasts can disrupt supply chains and inventory management by leading to stockouts or overstocking, but better data analytics and demand planning can improve forecasting accuracy. Drawing from the scenario, explain how inaccurate forecasts can affect a company$$s supply chain and inventory management.

QUESTION $2$

Evaluating operational capabilities is crucial in global business as it helps ensure that a company's resources and processes are aligned with its strategic goals and competitive pressures. Relating to the scenario, discuss the significance of evaluating operational capabilities when developing operations strategies in a global business environment