MNP3701/201/1/2018
Tutorial Letter 201/1/2018
Strategic Sourcing
MNP3701
Semester 1
Department of Entrepreneurship, Supply
Chain, Transport, Tourism and Logistics
IMPORTANT INFORMATION:
This tutorial letter contains important information
about your module.
BARCODE
, CONTENTS
Page
1 INTRODUCTION .......................................................................................................................... 3
2 GUIDELINES FOR ANSWERING ASSIGNMENT 01 ................................................................... 3
3 GUIDELINES FOR ANSWERING ASSIGNMENT 02 ................................................................... 4
4 FORMAT OF THE EXAMINATION PAPER................................................................................ 12
5 GUIDELINES ON HOW TO ANSWER ESSAY-TYPE QUESTIONS .......................................... 12
5.1 Structure and headings ............................................................................................................ 12
5.2 Relevance .................................................................................................................................. 12
5.3 Answer the entire question ...................................................................................................... 12
5.4 Do not dwell too long on a question........................................................................................ 13
6 PREVIOUS EXAMINATION PAPER .......................................................................................... 13
7 CONCLUDING REMARKS ......................................................................................................... 13
APPENDIX A – NOTES ON EXAMINATION PAPER ............................................................................ 14
APPENDIX B – AN EXAMPLE OF A PREVIOUS EXAMINATION PAPER ........................................... 15
2
, MNP3701/201/1/2018
1 INTRODUCTION
Dear Student
This tutorial letter contains the answers for Assignments 01 and 02, as well as the format of the
examination paper. It also includes an example of a previous examination paper.
2 GUIDELINES FOR ANSWERING ASSIGNMENT 01
The answer below is not a model answer. It is only a guideline to indicate to you which aspects
you were expected to include in the discussion of the assignment.
Your assignment should not have exceeded three pages. Although the answers may vary
among students, an answer will still be correct and acceptable as long as the reasoning is
sound. In discussing the case study questions, you must first study the relevant theory in the
study material and then apply it to the case study at hand. You can use the theory as a basis to
explain the appropriate citation in the case study. You can use underlining or markers to
highlight certain important words or main concepts.
General note:
When you answer any assessment questions, note the verb since it will indicate the expected
detail and structure of your answer. In addition, the marks allocated to a question will guide you
regarding the time you should spend on the question and the required detail.
ASSIGNMENT QUESTIONS 30 MARKS
1 Identify and discuss possible pricing strategies that could be a reason for Shoprite’s lower
internal food inflations. (22)
Guidelines for answering: This is not a straightforward theoretical question. You are expected
to structure the theory by using bullets for headings, followed by the application (substantiate
your answer from the case study).
Refer to pp 418 to 428 in the study guide.
In the case study, it was stated that Shoprite focused on “price” and that their aim is to retain
their low-price leadership. Your answer should include the discussion of price analysis
elements.
Price analysis refers to the process of comparing supplier prices against external price
benchmarks, without direct knowledge of the supplier’s costs. Price analysis focuses on a
seller’s price with little or no consideration given to the actual cost of production. Price analysis
includes
a market structure
economic conditions
the pricing strategy of the seller
market-driven pricing models
using the producer price index to manage price
Your answer does not have to cover all the various aspects of a price analysis.
3
Tutorial Letter 201/1/2018
Strategic Sourcing
MNP3701
Semester 1
Department of Entrepreneurship, Supply
Chain, Transport, Tourism and Logistics
IMPORTANT INFORMATION:
This tutorial letter contains important information
about your module.
BARCODE
, CONTENTS
Page
1 INTRODUCTION .......................................................................................................................... 3
2 GUIDELINES FOR ANSWERING ASSIGNMENT 01 ................................................................... 3
3 GUIDELINES FOR ANSWERING ASSIGNMENT 02 ................................................................... 4
4 FORMAT OF THE EXAMINATION PAPER................................................................................ 12
5 GUIDELINES ON HOW TO ANSWER ESSAY-TYPE QUESTIONS .......................................... 12
5.1 Structure and headings ............................................................................................................ 12
5.2 Relevance .................................................................................................................................. 12
5.3 Answer the entire question ...................................................................................................... 12
5.4 Do not dwell too long on a question........................................................................................ 13
6 PREVIOUS EXAMINATION PAPER .......................................................................................... 13
7 CONCLUDING REMARKS ......................................................................................................... 13
APPENDIX A – NOTES ON EXAMINATION PAPER ............................................................................ 14
APPENDIX B – AN EXAMPLE OF A PREVIOUS EXAMINATION PAPER ........................................... 15
2
, MNP3701/201/1/2018
1 INTRODUCTION
Dear Student
This tutorial letter contains the answers for Assignments 01 and 02, as well as the format of the
examination paper. It also includes an example of a previous examination paper.
2 GUIDELINES FOR ANSWERING ASSIGNMENT 01
The answer below is not a model answer. It is only a guideline to indicate to you which aspects
you were expected to include in the discussion of the assignment.
Your assignment should not have exceeded three pages. Although the answers may vary
among students, an answer will still be correct and acceptable as long as the reasoning is
sound. In discussing the case study questions, you must first study the relevant theory in the
study material and then apply it to the case study at hand. You can use the theory as a basis to
explain the appropriate citation in the case study. You can use underlining or markers to
highlight certain important words or main concepts.
General note:
When you answer any assessment questions, note the verb since it will indicate the expected
detail and structure of your answer. In addition, the marks allocated to a question will guide you
regarding the time you should spend on the question and the required detail.
ASSIGNMENT QUESTIONS 30 MARKS
1 Identify and discuss possible pricing strategies that could be a reason for Shoprite’s lower
internal food inflations. (22)
Guidelines for answering: This is not a straightforward theoretical question. You are expected
to structure the theory by using bullets for headings, followed by the application (substantiate
your answer from the case study).
Refer to pp 418 to 428 in the study guide.
In the case study, it was stated that Shoprite focused on “price” and that their aim is to retain
their low-price leadership. Your answer should include the discussion of price analysis
elements.
Price analysis refers to the process of comparing supplier prices against external price
benchmarks, without direct knowledge of the supplier’s costs. Price analysis focuses on a
seller’s price with little or no consideration given to the actual cost of production. Price analysis
includes
a market structure
economic conditions
the pricing strategy of the seller
market-driven pricing models
using the producer price index to manage price
Your answer does not have to cover all the various aspects of a price analysis.
3
