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Transcription of this question: 4.Problems are continuing with Enrich drinks. Aran is becoming increasingly frustrated withthe lack of growth of sales. He always wants to succeed and is driven by the need to gettasks completed. The Enrich part of his life is not a success. He blames the workforce. Theworkforce does not share his vision. Employees are mainly part-time workers and parentswho value jobs that enable them to fit work around school hours. As Aran has becomemore autocratic in his leadership style, labour tumover has increased. Last month, from aworkforce of twelve, one retired and two left for what they called “better jobs”There are also increasing problems with the quality of Enrich drinks, as batches of Enrich arerejected by the quality control department. Elsie, the manager of the production department,blamed suppliers, saying that Aran had damaged business relations with them due to hisimpatience. Elsie also blamed Aran for poor stock management. She has proposed totalquality management (TQM) as a solution to these problems.DetoxAccord decided to start the production and marketing of Detox, the green tea drink thathelps athletes to relax. Detox proved to be very successful. Encouraged by the successand boosted cash inflow, Kayla is considering producing a range of snack bars based onEnrich and Detox flavours and recipes. Accord would use the Enrich brand name for thesnack bars. The market for healthy snack bars is very competitive and dominated by a fewlarge companies who spend large amounts of money on advertising. The market is growingrapidly — some market researchers estimate by 34 % per annum. There are many examplesof small businesses entering the market successfully on a small scale. Kayla estimates thatthe proposal would involve an investment of $100 000, with forecast net returns of $80000for four years. Aran thinks that the money could be better spent on marketing Enrich drinks.(a)(b)(c)(d)Define the term labour tumover.For Kayla’s proposal calculate:(i) the payback period;(ii) the net present value (NPV) using a discount rate of 6 0/0′.With reference to Accord, explain one advantage and one disadvantage of using totalquality management (TQM).Discuss whether Aran and Kayla should change the organizational culture of Accord to[2][2][2]overcome the problems with Enrich drinks.[10]•Discount factors at 6 %Year234Discount factor1 .00000.94340.89000.83960.7921

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