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Transcription of this question: 3.Ace Industries (A1)Ace Industries (A1) manufactures plastic containers, mostly for the soft and fruit juice industries.The operations management department uses flow production for its standard-sized products andbatch production for its customized products.Ars sales are growing rapidly. It currently has a 6% share of the plastic container market However,it has recently struggled to meet customized orders on time. Some customers have complainedabout product quality. Currently, A/ is organized by region, which allows the company to havestrong relationships with customers, who feel that A1 knows them and cares about their interests.The human resource department is proposing restructuring the organization by function. Noteveryone at A/ agrees with this change. Many think that the problems of late delivery and poorquality could be solved through greater delegation.Lloyd Rinnegrat, Chief Financial Officer, has suggested that A1’s management think more deeplyabout their rapid growth. Except Lloyd, most people at A1 believe that rapidly growing salesare good — that by increasing its market share A1 will, in the long run, benefit by being a largeorganization. However, Lloyd argues that being a small organization has many merits, as shown bythe changes in Ars recent gross profit margins and net profit margins.Table 1: Selected financial data for A1Sales growthSalesGross profit marginNet profit margin201714 %$327 000 00057 %9%201815%$376 00000055.3%8%201912%$42100000053.2%7%The marketing department has predicted that the soft and fruit juice industries are moving awayfrom major mass-produced drinks and toward niche products, such as exotic fruit drinks andspeciality beverages for very particular markets.(a)(b)(c)(d)(e)[Source:@ International Baccalaureate Organization 2019]Outline two features of batch production.Draw a possible organizational chart for a manufacturing firm like A1 if it is organized byfunction.Calculate:(i) the total size of the plastic container market in 2019 (show all your working);(ii) the difference in Als net profit before interest and tax between 2018 and 2019(show all your working).Explain how delegation might help A1 improve its delivery times.With reference to A1, discuss Lloyd’s view that being a small organization has merits.[2][2][2][2][2][10]

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