Explain waste minimisation by reducing obsolete, damaged or perishable inventory and improving resource use, sustainability, cost and business performance.
Sources for use with Extract C Hot sauce is essential in Mexican cuisine Hot sauce (or ‘salsa picante’ in Spanish) is an everyday ingredient in Mexican cooking. The people of Mexico have developed a strong liking for chilli peppers. In Mexican restaurants and homes no table is completely set without a bottle of hot sauce. Chilli peppers are mostly grown in Western Mexico. Each sauce tastes different, depending on the type of pepper used and the ratio of chillies to other ingredients such as vinegar and spices. Most households make their own versions but numerous businesses manufacture hot sauce brands for sale in Mexico and for export. Extract D Grupo Tamazula – our story Grupo Tamazula is a public limited company that manufactures hot sauce in Guadalajara, in the Jalisco region of Mexico. The business began in 1960 when the Tamazula brand was introduced. It quickly became popular throughout Mexico. Shortly after, it introduced another brand of hot sauce, Salsa Valentina, to the market. Salsa Valentina became a market leader of hot sauce production with increasing sales across Mexico. Grupo Tamazula products are made with the finest ingredients. Salsa Valentina for example, is thicker than many of its competitors, and contains less vinegar and more fresh chillies. The hot sauces are packed using the most modern equipment available and investment in new technology keeps Grupo Tamazula up to date. The factory is over 26,000 m2, generating employment in the area. The company sells its products all over Mexico and through its US-based international sales office. Exports continue to increase, especially to the US and Canada.
Assess whether Grupo Tamazula will find it difficult to keep waste to a minimum.
Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the general marking guidance. The indicative content below exemplifies some of the points that candidates may make but this does not imply that any of these must be included. Other relevant points must also be credited.
Knowledge, Application, Analysis, Evaluation - indicative content
- Waste minimisation is where a business reduces loss of inventory due to perishable items becoming out of date or stock becoming obsolete
- Grupo Tamazula uses several ingredients which are fresh, so they are likely to be perishable in the production of its hot sauce range
- Sales can be difficult to forecast meaning the business may find it a
challenge to have the right level of inventory to meet demand
- This is especially true due to the high number of competitors in the Mexican hot sauce market
- The hot sauce may need to be transported quickly especially due to the hot and sunny Mexican climate
- This may be more challenging for Grupo Tamazula because it exports to the US and Canada, meaning transportation takes longer
- As it is expanding its export market, Grupo Tamazula may find it more
difficult to hold the right level of chillies for production of its hot sauce
range
- However, perishable products could be placed in chilled or frozen storage to prolong the life of perishable goods
- Stock rotation may be used to reduce waste, meaning the oldest
ingredients are used first in the manufacture of Salsa Valentina and Salsa
Tamazula
- Grupo Tamazula has a 26,000 m2 factory and uses the most modern
equipment available, which may include computer systems that manage
the ordering of perishable goods more effectively
- Due to the popularity of hot sauce and the number of homemade
versions, inventory which is close to going 'out-of-date' may be sold
cheaply to local residents in Guadalajara in order to minimise waste or
given away which may boost customer relations in the local area
- As it has been trading since 1960, Grupo Tamazula may have historic
data relating to demand and lead times that allow it to manage waste
more efficiently
Level
Mark
Descriptor
0
No rewardable material.
Level 1
1-2
Isolated elements of knowledge and understanding - recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2
3-4
Elements of knowledge and understanding, which are applied to the
business example.
Chains of reasoning are presented but may be assertions or incomplete.
A generic or superficial assessment is presented.
Level 3
5-7
Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Analytical perspectives are presented, with developed chains of
reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using quantitative and/or
qualitative information, though unlikely to show the significance of
competing arguments.
Level 4
8-10
Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
A coherent and logical chain of reasoning, showing cause(s) and/or
effect(s).
Assessment is balanced, wide ranging and well contextualised, using
quantitative and/or qualitative information, and shows an awareness of
competing arguments/factors, leading to a supported judgement.
Question
Evaluate whether Amazon's decision to stop selling its Kindle in China was due to internal or external causes of business failure.
Indicative content