Question

Joe sees a gap in the market for selling designer clothing for men and women. He

decides to open an enterprise called “Joe Fashions” in the Thavhani mall. His target

market is upper-class people in their twenties up to middle age. On the basis of these

facts I want you to advise Joe on the following points:

a) What are the implications for Joe’s enterprise if he selects a supplier who does

not have the required characteristics? (10 marks)

b) What additional service can Joe expect from a good supplier to give him a

competitive advantage in the market? (10 marks)

Answer 1

a.

i. Mistakes in orders.

ii. Problematic suppliers.

iii. Ineffective strategies.

iv. Poor organization structures.

v. Ignorance of practices and regulations.

b.

• Lower Costs. When it comes to seeking out and negotiating fresh deals with new suppliers, there are a number of initial costs involved.
• Improved Efficiency.
• Consolidated Supply Chain.
• Outsourcing Activities.
• Ongoing Improved Operations.
• Wrap Up