Rani’s father is a manufacturer who purchases raw materials from only one firm and sells the finished product to another single firm. While studying the difference between food chain and food web Rani noted that his father is following a faulty practice which must be stopped. She also tried to convince his father about it.What is the fault in the business of Rani’s father and how has Rani got this idea?
Answers
Answer:
The fault in Rani's father's business practice is that he is relying on a single source for both his raw materials and his sales. This means that if the supplier of the raw materials experiences any issues, such as a shortage or price increase, it would have a significant impact on Rani's father's business. Similarly, if the buyer of the finished product stops purchasing, it will greatly affect the business. This makes Rani's father's business very vulnerable, as it has no diversification and a lack of resiliency.
Rani has likely come to this realization through her study of the difference between food chains and food webs. A food chain is a linear representation of a single path of energy transfer in an ecosystem, while a food web is a more complex and interconnected network of multiple food chains. In the same way, having multiple suppliers and buyers can be thought of as a food web for a business, as it provides a greater level of security and flexibility. It means that if one link in the web fails, the others can take its place, and this results in more stability and less risk.
Therefore Rani would be suggesting to her father to look for more suppliers and buyers to reduce the risk and improve the stability of the business.
Explanation: