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Transcription of this question: 3.Bauli’s panettone’The large Italian company Bauli produces a variety Of baked productssuch as croissants and biscuits, but it is most famous for its panettone,a specialty at Christmas. The original producers Of panettoni weresmall luxury bakeries, which could bake a few expensive panettonirelatively easily. Michele Bauli claims that the quality Ofhis product iswhat explains the company’s success: “High investment in research andtechnology allows us to guarantee a uniform quality that small luxurybakeries find hard to achieve”. It could be argued, however, that Baulisuccess is mainly based on its low price. Apanettone produced by aluxury bakery typically costs €30. A Bauli panettone costs €8.Bauli produces on an industrial scale. Baking 12 million panettoni per year for sales across Italyand in European and American markets is a major challenge Of workforce planning. Bauli meetsthe seasonal demand2 for panettoni by hiring 1200 temporary workers for four months each year(from August to November). The company has also made significant technological innovations.According to Michele, “Attention to ingredients and the use Of new technologies in productiongive the panettone a shelf-life Of five months”. Bauli has also developed a broader product mix,including the Colombo cake, which is popular at a different time of the year. The broader product mixreduces the need for temporary workers.Bauli has not relied only on internal growth. In 2009, the company purchased two subsidiaries Ofthe multinational food group Nestlé. As both subsidiaries produce panettoni, these acquisitions haveincreased Bauli market share. They will also help Bauli meet the growing demand for panettoni inAmerican markets.(Question 3 continued)(a)(b)(c)(d)Describe one reason why technological innovation has been important for Bauli.(i) Explain one advantage and one disadvantage for Bauli of hiring temporaryworkers.(ii) Explain one difference between internal and external growth _Analyse the benefits for Bauli Of developing a broader product mix.With reference to Bauli, evaluate the benefits Of small versus large organizations.[2 marks][4 marks][2 marks][5 marks][7 marks]

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