You have been asked to prepare a report for Mrs Watson on the strategic position Sara Tea Pty Ltd should pursue. The business wants to increase its market share in the baking area. You need to present a response at the next board meeting.Areas you need to address include:a) Identifying STPL's competitive advantageb) Identifying fours threats and four opportunities available to STPLc) Identify four strengths and four weaknesses for STPLd) Evaluate STPL objectives for their strategic plan.e) Using Porters generic strategies, what strategy would you recommend for STPL?Question 2 – Knowledge Management (15 marks)For more than 15 years STPL has been trying to find ways to formally capture and incorporate a knowledge management system into their business strategy. Previously the sharing of knowledge was not a problem but as Mrs Watson is nearing retirement age, coupled with the high turnover of staff, STPL is seeing a greater need to record knowledge in a meaningful and effective manner.Required:1. Capturing knowledge can assist in creating a competitive advantage. Explain what is meant by knowledge management and how it creates a competitive advantage. (5 marks)2. How can STPL effectively implement a knowledge management system? Discuss factors STPL could use to identify the success of any implementation. (10 marks)Question 3 – Sustainability (20 marks)Whilst Mrs Watson claims that wherever possible all ingredients are Australian made, you have discovered that STPL sources only 30% of their ingredients from Australian producers. A further 60% is purchased from New Zealand with the remaining 10% imported from the country Chernobel. You are aware that in 2001 Chernobel experienced a nuclear leak at one of its power plants. This resulted in a significant loss of life with the long-term effects of the radiation leak in the bio-shere still unknown. STPL purchases from Chernobel an ingredient that aids in binding mixtures together and acts as a rising agent. By using this ingredient STPL can mix up larger batches of maca-sponges which assist in keeping costs down and improves efficiency. STPL has made major efforts to improve its sustainable business practices by conducting sustainability audits of its different divisions, but it still has a significant opportunity to improve the processes that are currently in place. The business is in the process of auditing its supply chain (of more than 200 ingredients) to determine their genetically modified (GM) status. STPL is working with its ingredient suppliers to assess the GM status of sources, supplies, and production techniques.Required:1. What are some of the financial, environmental, social and broader issues that STPL should consider? (Maximum of 400 words) (10 marks)2. What are some of the policies that STPL could implement and what would the benefits be?(Maximum of 400 words) (10 marks)Question 4 –Economic Order Quantity (EOQ) (15 marks)The purchasing manager Jack Cruise, who is also Mrs Watson nephew, has a very relaxed approach to purchasing ingredients. Jack places orders every week for the same amount of ingredients. He finds that this way if he doesn't turn up to work there will still be a plentiful supply of raw materials. Jill has just started as Jack's assistant and believes that ordering could be done more efficiently. She has devised the following table to prove her point: