Auditing Notes for South African Students

PREVIEW QUESTION 1 [3 MARKS] Critically analyse the Nando’s case study and identify and discuss three ways in which Nando's strategic sourcing processes have established a sustainable competitive advantage for them in the fast-food industry in South Africa. Use theory from the prescribed book to substantiate your argument. QUESTION 2 [6 MARKS] Discuss how cost and pricing factors influence Nando's supplier selection process [2]. In your discussion, you should address the role of benchmarking [1] and the total cost of ownership (TCO) methods [1] in building a competitive strategy. Then, propose practical suggestions for Nando’s on how they could employ benchmarking and TCO methods to manage cost and price as part of their supplier selection process. [2]