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Transcription of this question: 5.Bricko GroupBricko Gmup is a Swedish company that sells its products in many countries around the world.It manufactures toys, with its best known product being the plastic building bricks knownas “Bricko”_ The company is a major employer in many Swedish towns. It takes pride in offeringjob security, generous benefits and a sense Of family for its employees.Bricko Group is now facing the following problems:• increased competition in the toy market because Other manufacturers can produce cheaperbranded products• increased competition from Other sectors such as online gaming• increased number Of defective products• stricter health and safety regulations in the European Union (EIJ)• pressures from environmentalist groups in Sweden due to pollution from the production plants• lack Of innovation and failure to launch new products in the past few years.In recent years Bricko Gmup has lost some Of its market share. Bricko GmupS largest rival isPeppa Toys, which produces similar products. Peppa Toys has recently opened a new manufacturingplant that has doubled its production. Primary market research shows that Bricko Gmup hasfar better brand recognition but consumers prefer Peppa Toys’ lower prices. The directors atBricko Group believe that developing brand loyalty will be essential to maintain its competitiveness.Quality assurance is an important aspect to Bricko Chou”, which is why the production managerwants to implement a Kaizen (continuous improvement) approach to manufacturing in Sweden.However, the financial manager is proposing to outsource the production facilities to Bangladesh soas to reduce costs. The research and development (R&D) department would remain in Sweden andwould increase its activities.(a)(b)(c)(d)Describe one advantage and one disadvantage Of primary market research forBricko Group.Explain two benefits and one limitation Of a Kaizen approach to manufacturingfor Bricko Gmup.Analyse the importance and role Of branding for Bricko Gmup.Discuss the financial manager’s proposal “to outsource the production facilitiesto Bangladesh”[4 marks][6 marks][6 marks][9 marks]

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