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Transcription of this question: 3.JP produces electric guitars. It is a cooperative owned by a committed workforce who share inthe management and success (or failure) of the company and its profits. Workers enjoy havingcontrol over the •workplace and are productive. However, JPs continued success is threatened byinsufficient finance, which prevents them from spending more on traditional promotional methods.JPs guitars are expensive relative to the competition but are known for their quality. Its customersare very brand loyal. The use of social media marketing by many famous musicians influences JPsbrand loyalty and awareness. Unfortunately for JP, one especially famous musician using a JPguitar on social media recently received negative publicity about his private life.JP follows strict quality procedures that include quality circles. JPs management believe thatteams of workers employed on the production line know the production process best and are in thebest position to make any necessary improvements. Staff tumover at JP is very low.XYZ, a large company known for its kitchen appliances, is considering moving into the musicalinstrument market as part of a growth strategy — they want the high gross profit margins on guitars(compared to the low profit margins on kitchen appliances). XYZ wants to take over JP. XYZ has astrong balance sheet and large cash reserves and is an expert at marketing.The cooperative has refused to consider the takeover bid from XYZ The cooperative has arguedthat the culture of XYZ is too different to JPs. XYZs management are Viewed as too controlling.However, increased price competition has led to falling sales, forcing JPto make redundancies.Some cooperative members argue that unless JP accepts XYZs bid, additional jobs will be lost.(a)(b)(c)(d)Define the term cooperative.Explain one positive and one negative impact of social media marketing on JPspromotional strategy.Explain two benefits to JP of using quality circles.Discuss whether JP should accept XYZs takeover bid.[2][10]

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