INTRODUCTION TO BUSINESS

TUTORIAL LETTER
MANAGEMENT `
SEMESTER 1/2020
BMI511S

Dear Student

Welcome to Introduction to Business Management (BMI511S). It is of utmost importance

that you, as a student, familiarise yourself with the content of this letter to understand
how the course is structured and what will be expected of you during the course of this
semester.

The course assignments are to be submitted via the eLearning mode, a mode that enables
you as a student to fully engage with the content and has limitless access to instructors
and relevant course material. All assessments will be conducted via the eLearning
platform known as Moodle.

Due Dates of Assignments are provided on Moodle as well as in the Distance Education
Manual available on the USB stick or on COLL website. Test Dates are provided on the Test
Information Sheet also available on COLL website, under COLL MANUALS.

Compulsory Orientation Sessions

Please note that there will be a compulsory student orientation on Please note that
there will be a compulsory student orientation on Saturday, 08 February 2020, Saturday,
15 February 2020 and Saturday 29 February 2020, Time: 09:00 in Lab 12, Engineering
Basement, NUST Main Campus. Regional Centre Students may contact their centres
for orientation. The orientation is an opportunity for you to get information on how to
access the eLearning platform, how to submit assignments and to have any other possible
issues addressed. Please make use of this opportunity to get information on how to
navigate around the e-learning platform with minimal hassles. We look forward to meeting
on the above mentioned dates.

Good luck with this course and with your studies.

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 INTRODUCTION TO BUSINESS
TUTORIAL LETTER
MANAGEMENT
SEMESTER 1/2020
BMI511S

Dear Student

Welcome to Introduction to Business Management – BMI511S. It is of utmost importance that you, as a

student, familiarise yourself with the content of this letter to understand how the course is structured
and what will be expected of you during the course of this semester.

The course assignments are to be submitted via the eLearning mode, a mode that enables you as a
student to fully engage with the content and has limitless access to instructors and relevant course
material. All assessments will be conducted via the eLearning platform known as Moodle.

Due Dates of Assignments are provided on Moodle as well as in the Distance Education Manual available
on the USB stick or on COLL website. Test Dates are provided on the Test Information Sheet also available
on COLL website, under COLL MANUALS.

Course Name: Introduction to Business Management

Course Code: BMI511S

Department: Management Sciences

Course Duration: NQF LEVEL 5

NQF Level and Credit: ENTER THE NQF LEVEL AND CREDITS OF THE COURSE

Pre-requisite: None

Moodle Enrollment Key: bmi511s (EITHER SMALL OR LARGE CAPS)

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 INTRODUCTION TO BUSINESS
TUTORIAL LETTER
MANAGEMENT
SEMESTER 1/2020
BMI511S

PRESCRIBED AND RECOMMENDED MATERIAL

PRESCRIBED MATERIAL Erastus B J, Rudansky-Kloppers S, Strydom J W, (2016)
Introduction to Business Management, 10th ed, Oxford
University Press Southern Africa

RECOMMENDED MATERIAL  Griffin, R.W. (2012) Management Fundamentals (6th

ed.). South-Western, China: Cengage Learning.
 Hughes, R.J., Pride, W.M., & Kapoor, J.R. (2013). Business
Foundations (3rd ed.). South-Western, China. Cengage
Learning.
 Strydom, J. (Ed.) (2008) Principles of Business
Management. Southern Africa: Oxford University Press.

Additional reading/Web links  www.thegeminigeek.com/what-is-business-

environment/
 http://www.entrepreneur.com/article/200730
 www.mindtools.com › Strategy Tools
 www.investopedia.com/terms/t/timevalueofmoney.asp

This First Tutorial Letter was compiled by:

Ms Joy Hambabi

Your marker-tutor for INTRODUCTION TO BUSINESS MANAGEMENT:

Ms Joy Hambabi Mr Bevan Zealand

Tel.: 061 207 2716/081 251 4364 Tel: 061 207 2745
E-mail: jhambabi@nust.na E-mail: bzealand@nust.na

Ms Ottilie Kangandjo
Tel: 061 207 2707
E-mail: okangandjo@nust.na

The Moderator/Content-Editor for this course is:

Ms Ottilie Kangandjo

Please sms your tutor to arrange a telephonic/WebEx tutorial

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 INTRODUCTION TO BUSINESS
TUTORIAL LETTER
MANAGEMENT
SEMESTER 1/2020
BMI511S

COLL ADMINISTRATIVE SUPPORT SERVICES

COLL ANNOUNCEMENTS: http://www.nust.na/?q=centres/coll/coll-announcement
COLL STUDENT SUPPORT: http://www.nust.na/?q=centres/coll/student-support
E-LEARNING: http://elearning.nust.na/elearn/
ASSIGNMENT SUBMISSION: collassignments@nust.na
ASSIGNMENT DUE DATES: Information Manual for Distance Education Students
(DE Manual)
http://www.nust.na/?q=centres/coll/about-coll
NUST COLL VACATION SCHOOL: 06 – 09 April 2020
TIMETABLE: http://www.nust.na/?q=centres/coll/about-coll
FACE TO FACE CLASSES: http://www.nust.na/?q=centres/coll/about-coll
COLL FACEBOOK: https://www.facebook.com/groups/554488671248201/
MOODLE PLATFORM: http://www.nust.na/?q=centres/coll/about-coll
NUST’s Policies and Regulations: http://www.nust.na/?q=download/annual-reports-
documents
Examination dates: To be announced on the NUST webpage
MASSIVE OPEN ONLINE COURSE (MOOC): http://tlu.nust.na/survey/index.php/419328/lang-en
Username: nust
Password: 123
COLL STUDENT SUPPORT SERVICES
WebEx: https://vc.uc.nust.na/orion/login
NUST Writing Unit: 061 – 2072383
writingunit@nust.na
NUST Mathematics Tutoring Centre: 061 – 2072523/2072913
http://mathstutoring.nust.na
TURNITIN: www.turnitin.com

TurnItIn - Student
Guide.pdf

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 INTRODUCTION TO BUSINESS
TUTORIAL LETTER
MANAGEMENT
SEMESTER 1/2020
BMI511S

STATEMENT ABOUT ACADEMIC HONESTY AND INTEGRITY

All staff and students of Namibia University of Science and Technology (NUST), upon signing their
employment contracts and registration forms, commit themselves to abide by the policies and rules of the
institution. The core activity of NUST is learning and in this respect academic honesty and integrity is very
important to ensure that learning is valid, reliable and credible.

NUST therefore does not condone any form of academic dishonesty, including plagiarism and cheating on
tests and assessments, amongst other such practices. NUST requires students to always do their own
assignments and to produce their own academic work, unless given a group assignment.

Academic Dishonesty includes, but is not limited to:

 Using the ideas, words, works or inventions of someone else as if it is your own work.
 Using the direct words of someone else without quotation marks, even if it is referenced.
 Copying from writings (books, articles, webpages, other students’ assignments, etc.), published or
unpublished, without referencing.
 Syndication of a piece of work, all or part of an assignment, by a group of students, unless the
assignment was a legitimate group assignment.
 The borrowing and use of another person’s assignment, with or without their knowledge or
permission.
 Infringing copyright, including documents copied or cut and pasted from the internet.
 Asking someone else to prepare an assignment for you or to write or sit an assessment for you,
whether this is against payment or not.
 Re-submitting work done already for another course or programme as new work, so-called self-
plagiarism.
 Bringing notes into an examination or test venue, regardless of whether the notes were used to
copy or not.
 Receiving any outside assistance in any form or shape during an examination or test.

All forms of academic dishonesty are viewed as misconduct under NUST Student Rules and Regulations.
Students who make themselves guilty of academic dishonesty will be brought before a Disciplinary
Committee and may be suspended from studying for a certain time or may be expelled. All students who are
found guilty of academic dishonesty shall have an appropriate endorsement on their academic record, which
will never be erased.

I, ……………………………………………………………………………………………………………(full name and surname), hereby

acknowledge that I have read and understood the Statement about Academic Honesty and Integrity and
that I will abide by the rules and regulations as outlined within the statement.

Signature of the student:…………………………………………… Date: ……………………………………………

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TUTORIAL LETTER
MANAGEMENT
SEMESTER 1/2020
BMI511S

ASSESSMENT CRITERIA
 You will be doing two (2) assignments, each weighing 30 % towards your CA mark. Due dates are on
the COLL website.
 You will be writing one (1) test, weighting 40 % towards your CA mark. The test dates are
Test 1 Supplementary Test (will only replace one test)
Saturday, 14 March 2020 @ 10:00 – 11:30 Saturday, 18 April 2020 @ 12:00 Engineering Basement & all
Engineering Basement, Auditorium North & South & all Regional Centres
Regional Centres

Please note that the test schedule is subject to change. ALL TEST VENUES and DATES WILL BE ANNOUNCED
VIA SMS’S, REGIONAL CENTRES, COLL FACE BOOK AND COLL WEBSITE.

 You will write a final examination at the end of the semester, 3 hour paper.

Your final mark: 40 % CA and 60 % Examination

Examination Admission
Apart from the regulations hereunder, you should also study your COLL Yearbook 2020, which contains
important information and regulations about admission to the examination.
 You need at least a 40 % semester mark to write the examination
 The final mark is made up of a 40:60 ratio (40 % of the semester mark and 60 % of the examination mark)
 A final mark of at least 50 % (calculated from the semester mark and examination) has to be obtained to
pass the course

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 INTRODUCTION TO BUSINESS
TUTORIAL LETTER
MANAGEMENT
SEMESTER 1/2020
BMI511S

INSTRUCTIONS/REQUIREMENTS FOR ASSIGNMENT 01

The instructions for this assignment is:
 Sources must be listed according to the APA or Harvard referencing style, unless otherwise
prescribed by the department.
 All assignments should be typed
 Font Style to be used is Calibri, font size 11, line spacing 1.5

ASSIGNMENT 01
My due date for this assignment is: …………………………………………………………………………………

The learning outcomes for this specific assignment is:

1. Classify examples into appropriate economic sectors.
2. Identify and explain forms of ownership.
3. Describe the characteristics of an entrepreneur.
4. Explain the forms of business ownership in Namibia.
5. Recommend options for acquiring a business.
6. Distinguish between the internal and external business environments.
7. Read and interpret financial statements.
8. Explain the elements of financial management.
9. Calculate and analyse financial ratios.
10. Analyse the SWOT analysis of the business.

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 INTRODUCTION TO BUSINESS
TUTORIAL LETTER
MANAGEMENT
SEMESTER 1/2020
BMI511S

SECTION A
QUESTION 1
Multiple choice questions from 1 – 10 (10 x 2) = 20
Indicate your answers next to each corresponding number on the Answer Sheet Provided. e.g ( 1. b )

1.1 What marks the key difference between economic systems?

a) the way they manage the factors of production
b) the way they transport goods within their borders
c) the way rules and regulations are legislated
d) the way workers are relocated to different regions

1.2 Which environment is NOT an important dimension of a business organisation's external

environment?
a) the political-legal environment
b) the sociocultural environment
c) the technological environment
d) the corporate cultural environment

1.3 When conducting a SWOT analysis of an organisation, which question can help management
brainstorm for the strengths section of the analysis?
a) What external changes present interesting possibilities?
b) What aspect of the organisation's vision can be altered?
c) What necessary skills do the organisation's employees currently lack?
d) What does the organisation offer that makes it stand out from other organisations?

1.4 When conducting a SWOT analysis of an organisation, which question can help management
brainstorm for the threats section of the analysis?
a) What aspect of the organisation's vision can be altered?
b) What necessary skills do the organisation's employees currently lack?
c) What does the organisation offer that makes it stand out from other organisations?

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TUTORIAL LETTER
MANAGEMENT
SEMESTER 1/2020
BMI511S

d) What external economic forces can affect the organisation's bottom line?

1.5 What does a planned economy rely on a centralised government to do?

a) support free enterprise in every way possible
b) allocate all or most factors of production
c) encourage citizens to buy shares of stock in small companies
d) keep its control activities to a minimum

1.6 Entrepreneurs often have more than one goal for starting a business and becoming self-
employed. Which of the following reasons is the LEAST common goal of entrepreneurs?
a) to seek independence and be their own boss
b) to earn a comfortable living for a period of time
c) to grow and expand a current business
d) to meet community or social obligations

1.7 Which of the following options form part of the market environment?
a) Billions of dollars that are being invested in the economy to improve Namibia’s infrastructure
b) The decline in consumer spending and a more aggressive stance by labour unions against domestic
businesses
c) Intangible resources, such as brand names, customer loyalty and company reputation
d) The strategic objectives of the business, including gaining and advantage over its competitors

1.8 Goods that the consumer does not know about or does not normally think of buying, and the
purchase of which arises due to danger or the fear of danger and lack of desire. ______________.
a) convenience products
b) shopping products
c) impulsive products
d) unsought products

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TUTORIAL LETTER
MANAGEMENT
SEMESTER 1/2020
BMI511S

Ester has just completed her degree in Business Management at NUST and has opened a new
photography studio that sells cameras and equipment, develops photos and gives classes on the art of
photography.

1.9 When Ester deals with clients, she requires _____________ skills and when she is busy
developing photos, she requires _____________ skills.
a) Interpersonal; technical
b) Conceptual, informational
c) Interpersonal; conceptual
d) Informational; technical

1.10 Based on Maslow’s hierarchy of needs, if a person always expects others to speak the truth and
considers justice also as important, it would be classified under which needs?
a) belonging
b) self-actualisation
c) work-avoidant
d) safety and security

SECTION B
QUESTION 2 [10 Marks]
2.1 Explain in your own words why government organisations are also need-satisfying organisations. [4]

2.2 Provide your own example of a situation in Namibia where both the government and private businesses
seek to address society’s needs. [6]

QUESTION 3 [30 MARKS]

XYZ Ltd manufacture hats in a small factory on the outskirts of Windhoek. Their role customer is a major
Namibian chain store, which purchases 2,000 hats each month. The factory’s capacity is 2,250 per month.
The company charges the chain store N$160 per hat.

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 INTRODUCTION TO BUSINESS
TUTORIAL LETTER
MANAGEMENT
SEMESTER 1/2020
BMI511S

The following cost are incurred: The manufacture of each hat costs
Rent N$5, 600.00 Materials N$48.00
Rates N$4, 200.00 Labour N$52.00
Salaries N$8, 200.00

3.1 What is the break-even point in units? [5]

3.2 What is the break-even in monetary terms (dollars)? [5]

3.3 Calculate the following financial ratios (correct to two decimal places) using the information
below and comment on each ratios you have calculated.
Sales 4 600 000
Cost of sales 3 000 000
Expenses 950 000
Total liabilities 2 360 000
Owners’ Equity 9 410 000
Current assets 2 110 000
Current liabilities 1 450 000
Stock 1 400 000

(a) Gross profit margin [4]

(b) Net profit margin [4]

(c) Debt ratio [4]

(d) Current Ratio [4]

(e) Acid test ratio [4]

TOTAL MARKS FOR ASSIGNMENT 01: 50. MARKS

END OF ASSIGNMENT 01

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 INTRODUCTION TO BUSINESS
TUTORIAL LETTER
MANAGEMENT
SEMESTER 1/2020
BMI511S

INSTRUCTIONS/REQUIREMENTS FOR ASSIGNMENT 02

The instructions for this assignment is:

 Sources must be listed according to the APA or Harvard referencing style, unless otherwise
prescribed by the department.
 All assignments should be typed
 Font Style to be used is Calibri, font size 11, line spacing 1.5 ASSIGNMENT 02

ASSIGNMENT 2
This assignment covers the following units/modules/topics

The learning outcomes for this specific assignment is:

 Explain what corporate social responsibility is, and what it entails.
 Provide an overview of the role of management in a business by defining management and supplying
reasons why management is essential to any organisation.
 Analyse, discuss and describe planning as a management task relevant to all management levels.
 Describe organizing as a management task.
 Analyse leading as a management task, focusing on different leadership theories and motivation.
 Explain the management of the operations of a business by using sound operational activities,
techniques and methods to optimise the transformation of inputs into outputs.
 Explain how human resource requirements can be met and how effective human resources can be
developed.
 Describe the marketing process; explain the marketing instruments of product, price, distribution
and marketing communication.

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 INTRODUCTION TO BUSINESS
TUTORIAL LETTER
MANAGEMENT
SEMESTER 1/2020
BMI511S

SECTION A
Question 1 [10]

1.1 An entrepreneur is characterised by the following personality traits:

a) Creativity and innovation
b) Commitment and determination
c) Opportunity-orientated
d) All of the above

1.2 The external environment:

a) Is difficult to separate from the organisation’s internal environment
b) Is that portion of the environment that is controlled by top management
c) Is the organisation’s hierarchical structure
d) Lies outside of the formal boundaries

1.3 Which of the following are not elements of Maslow’s Hierarchy of needs?
a) Esteem needs
b) Self-actualisation needs
c) Psychological needs
d) Social needs

1.4 The following are challenges of owning your own business, except:
a) Demand for full responsibility
b) Guaranteed income
c) Hard work
d) Sacrificing quality family life

1.5 The general environment includes all of the following elements except:
a) Legal-political
b) Economic
c) Regulatory bodies

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TUTORIAL LETTER
MANAGEMENT
SEMESTER 1/2020
BMI511S

d) Technological

1.6 Which of the following are advantages of a franchise?

1. Low risk
2. Initial assistance
3. Quantity discounts
4. No fixed ownership
a) 1, 2, 3
b) 1, 2, 4
c) 2, 3, 4
d) 1, 2, 3, 4

1.7 Which one of the following systems cannot be classified as an economic system?
a) A free market system
b) A deliberate system
c) The socialist system
d) The communist system

1.8 Penny and Vicky are members of Hair supply business. This means that Penny and
Vicky’s is
a) A Sole trader
b) A close corporation
c) A limited liability company
d) A partnership

1.9 Money deposited in a savings account without being withdrawn will earn
a) Discount
b) Commission
c) Interest
d) A fee

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TUTORIAL LETTER
MANAGEMENT
SEMESTER 1/2020
BMI511S

1.10 Which of the following enjoys limited liability?

a) A partnership
b) A close corporation
c) A sole proprietorship
d) None of the above

Section B
Question 2 [22 Marks]
Read the article on Corporate image & design = success below and answer the questions accordingly.

Corporate image + design = success

The lack of web design and advertising firms in northern Namibia prompted Simon Sakaria to open up
Chikiza Media Group in 2009.

The business offers services such as corporate communication, graphic design of logos, posters, flyers,
business cards, outdoor advertisements and car branding. Furthermore, Sakaria does photography for
various events including workshops, conferences, official Government meetings and school tours. Sakaria
realised that creative advertisements and good image (corporate identity) increase the number of clients.
So he decided to start a business in Oshakati for the same purpose. Currently, he has two employees; his
secretary and the technician. He takes care of the creative side of designing logos, adverts and posters.

The 21-year-old has always had a love for creatively designed images since he was in junior high school. “I
used to make comparisons of the different world class logos of big and small companies and wondered
how people came up with such brilliant ideas and wished that I would one day be able to do such creative
work,” he recalls.

Raised by his grandmother who was also a small business entrepreneur, Sakaria learnt a lot while helping
out with the business whenever she was not around. It’s then that an entrepreneurial spirit grew within
him. So he started buying and re-selling certain second-hand products to make pocket money. Due to the

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TUTORIAL LETTER
MANAGEMENT
SEMESTER 1/2020
BMI511S

fact he is still young, Sakaria faces challenges when it comes to marketing his business because people tend
to underestimate his capabilities.

“Clients will always doubt whether or not to trust your company when you are a young entrepreneur. They
will sometimes underestimate the company’s capabilities until you prove them otherwise,” he says.
However, Sakaria has witnessed his company change for the better since its inception. He points out that
although he only had few clients in the first two to three months, he now gets client requests for his
services on a daily basis. He thus sees a very bright future for his business.

He is satisfied about his progress to date and the fact that he has managed to market his business to big
institutions such as the University of Namibia’s northern campus; either through his website or Facebook
page. Other clients include First National Bank (FNB) Namibia, the Okahao Youth group, Omulaule
Investment cc, Advanced Accounting Services and Zwakala Laundry, to name but a few.
Source: The Villager (10 December 2012)

2.1 Explain how Sakaria has used the five major steps in conducting marketing research for this business.
[10]

2.2 Branding give a unique identity to the company’s products and create emotional associations with
consumers. Explain how Sakaria benefited from branding his business. [2]

2.3 Sakaria intended to buy into a franchise business then opening his own business, but he experienced
some challenges. Name two discouraging factors he experienced. [2]

2.4 How would you consider Sakaria, an entrepreneur or a business owner? Motivate your answer.
[6]
2.5 With the business growing Sakaria will have to appoint an employees and train them. Name two
methods Sakaria can use to train employee on job situation. [2]

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TUTORIAL LETTER
MANAGEMENT
SEMESTER 1/2020
BMI511S

Section C
Question 1
Jackson is a computer programmer who works for himself. His computer has been giving him problems
lately. When it switches off on its own again while he is working, Jackson decides that he has enough
money to buy a new computer. He phones different computer businesses and visits a few of them
(including Incredible Connection, Hi Fi Corporation and Game) to find out about the different makes,
features and prices of computers in order to find one that will suit his needs. He reviews all the
information that he has collected and in the end decides to buy a Dell computer from Incredible
Connection. He buys the computer and when he has worked on it for a while; he starts to wonder if he
should not have bought an Acer computer instead.

The consumer decision-making process consist of five phases. Describes thee five phase – incorporate
the evidence from the above scenario. [10]

Question 2
ICAO Builders is having a housing project which produces N$200,000 after four years. At the end of this
period the pieces of machinery involved in the project is then sold for scrap for N$5, 000. Assuming a
discount rate of 8%.

Calculate the present value of this compound quarterly. [8]

TOTAL MARKS FOR ASSIGNMENT 02: 50 MARKS

END OF TUTORIAL LETTER

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