Read the case study below and answer the questions that follow.

Toyota SA points to global hybrid battery shortage

In response, Toyota SA Motors initially refuted the claim there was no available stock, saying there had been a $$steady

inflow of these vehicles to the dealer network$.$ Still, it explained waiting periods might apply due to a global hybrid battery

shortage, which it added should normalise by $2024.$ It further pointed out the Corolla Cross GR$-$Sport Hybrid was indeed

launched at the time it was advertised, suggesting the reference to it being $$here$$ was factual, as the vehicle had officially

become part of the Corolla Cross range, albeit in limited numbers $$due to serving a niche demand$.$ Publicis Groupe Africa,

the company appointed as Toyota SA Motors$$ agency partner late in $2022,$ echoed this sentiment$,$ saying the post merely

announced the addition of the GR$-$Sport Hybrid model to the overall Corolla Cross model range.

According to the Japanese firm$$s local division, the Corolla Cross production plan at Prospecton included an average of $49$

units of the GR$-$Sport Hybrid per month, with an annual plan of $542$ units $($for $2023).$ By comparison, around $1,500$ units of

the regular Corolla Cross were produced per month on average since launch, with the non$-$hybrid GR$-$Sport version sitting

at about $141$ units a month. Explaining there was no other advertising actively promoting the sale of the vehicle in question,

Toyota submitted it was $$not unreasonable$$ to communicate its arrival despite having to put some customers on a waiting

list. But, having considered all the material before it$,$ the directorate of the ARB ultimately ruled against Toyota SA Motors.

$$The Facebook page that led to this complaint states that this vehicle is $$here$.$ In the absence of any context that suggests

the contrary, a reasonable person would interpret this to mean that this vehicle is generally available for purchase. In

addition, the advertiser$$s website, which is accessible by clicking on the URL provided in the advertisement, reads $$Corolla

Cross GR$-$Sport. Now Available in Hybrid$,$ ARB$$s ruling said. $$Neither of these advertisements communicate any sense of

potential delays, shortages or long waiting lists $($between $12$ and $24$ months$)$ that might apply. The advertiser appears to

concede that this is the case. However, it has not explained why its advertising does not inform consumers of this. It merely

submitted that demand outstrips supply at this point and that it was not actively advertising this vehicle,$$ the watchdog

added, saying the matter was further complicated by the fact Toyota had $$not submitted any supporting information.$$

Clause $16\mathrm{.}1$ of Section III of the ARB Code sits at the centre of the complaint and reads as follows: $$Advertisements should

not be submitted for publication unless the advertiser has reasonable grounds for believing that it can supply any demand

likely to be created by theQUESTION $1(20$ Marks$)$

The process of strategic sourcing can be complex. As the purchasing manager at Toyota, examine the

concept of sourcing and strategically source the appropriate materials? Make reference to the case study.

QUESTION $2(20$ Marks$)$

Considering the importance of purchasing and supply management highlighted in the provided concept,

analyse the case study in which the company successfully utilised strategic purchasing practices to enhance

its competitive position. In your response,

$-$ Discuss how the company would have achieved savings, built relationships with suppliers, drove innovation,

improved product and service quality, reduced time to market, managed supplier risk, and contributed to

economic impact.

$-$ Identify any challenges faced by the company in implementing strategic purchasing and how they overcame

them. Support your answer with relevant examples and insights from the given text. advertising$.$ In addition, ARB considered Clause $4\mathrm{.}2\mathrm{.}1$ of Section II$,$ which reads:

$$Advertisements should not contain any statement or visual presentation which, directly or by implication, omission,

ambiguity, inaccuracy, exaggerated claim or otherwise, is likely to mislead the consumer$.$