MNG2602 Assignment 1 Semester 2 2025 (Answer Guide) - DUE 30 September 2025

MNG2602 Assignment 1 Semester 2 2025 (Answer Guide) - DUE 30 September 2025 Question 1 Chair’s report – pages 10–11 1.1 Strengths of Pick n Pay One of Pick n Pay’s notable strengths is its strong brand loyalty and customer engagement through its loyalty programme, described as “one of the best in the industry” (Pick n Pay, 2024, p. 10). In a competitive retail environment, customer loyalty is a significant driver of repeat purchases and stable revenue. A well-designed loyalty programme not only incentivises customers to return but also allows the company to gather valuable data on buying patterns, which can be used to refine product offerings, tailor promotions, and improve customer satisfaction. This strength positions Pick n Pay favourably to defend and grow its market share despite competitive pressures. Another strength is its ability to maintain a stable financial position despite operational challenges, with the Chair noting that the Group “maintained a strong balance sheet with manageable debt levels” (Pick n Pay, 2024, p. 11). A healthy financial structure provides resilience against economic downturns and allows for strategic investments such as store modernisation, digital platform expansion, and supply chain optimisation. It also enhances investor confidence, which is particularly important during capital-raising efforts such as the planned Rights Offer. 1.2 Weaknesses of Pick n Pay A key weakness identified in the report is inefficiencies in the supply chain, with the Chair acknowledging that “our supply chain faced significant inefficiencies during the year” (Pick n Pay, 2024, p. 11). In retail, an effective supply chain is central to ensuring product availability, managing costs, and maintaining customer satisfaction. Supply chain inefficiencies can lead to stockouts, delayed deliveries, and increased operational expenses, all of which erode competitive