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Transcription of this question: 3.cool Meals (CM)Cool Meals (CM) produces frozen organic ready-made meals that are sold to food retailersthroughout the country.CM buys large quantities of organic ingredients from local farmers for its just-in-case (JIC)stock control management. It uses a cost-plus (mark-up) pricing strategy.CM is known for its:good-quality organic frozen meals, which are perceived as good value for money• flexibility with retailers in terms of quantity of meals supplied, credit given and efficientdelivery at pre-arranged datescorporate social responsibility (CSR) based on a long-term commitment made to farmersto purchase large quantities of organic ingredients every four months and pay a fair pricepromptlyCM has an excellent working relationship with farmers, who always prioritize CMSrequests in terms of quantity and delivery.Recently, an economic downturn and increased competition, especially from non-organicfrozen meal suppliers, has decreased demand for frozen organic meals.The finance manager of CM, Kayleigh, provided the following financial information.Table 1: Selected financial information for CMTotal revenueGross profit marginNet profit marginCreditor daysDebtor daysStock turnover daysCurrent ratioAcid test (quick) ratio201716%6%1050202.10.82018$35000003%57040240.6Kayleigh is worried about the cash flow of CM and suggested the company changes thestock control method from just-in-case (JIC) to just-in-time (JIT). She is also looking at otherstrategies to improve CMS financial position.(a)(b)(c)(d)Define the term corporate social responsibility (CSR).Explain one advantage and one disadvantage for CM of using a cost-plus (mark-up)pricing strategy.Explain one advantage and one disadvantage for CM of changing its stock controlmethod from just-in-case (JIC) to just-in-time (JIT).Using the financial information in Table 1, evaluate two strategies that CM coulduse to improve its financial position other than changing to a just-in-time (JIT) stockcontrol method.[2][10]3.(a)(b)Define the term corporate social responsibility (CSR).CSR is the decision/attempt by a business to take responsibility for theiraction/activities by considering the interests of and the impact on a wide range ofstakeholders in society. The business accepts the moral and legal obligations tosociety, not just to investors, that result from its operation.Candidates are not expected to word their definition exactly as above.Award [11 for a basic definition that conveys partial knowledge and understandingsimilar to the above answer. The first mark would typically come from awarenessthat there is some morale guidance.Award [21 for a full, clear definition that conveys knowledge and understandingsimilar to the answer above. Individual stakeholders do not need to be named togain full marksDo not credit an example.Explain one advantage and one disadvantage for CM of using a cost-plus(mark-up) pricing strategy.[2]

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