ASHNEEL KRISHAN RAMLU 2010003487

College of Business, Hospitality & Tourism Studies

School of Management
Department of Management
MGT802 Business Strategies for Entrepreneurs
FINAL ASSESSMENT
The short questions and answers below, worth 15%, will form part of the formative
assessment to replace the traditional 3-hour examination. Students are requested to
answer all questions. Each question is worth 5 Marks. DUE DATE: Monday 22nd June
2020

QUESTION 1: Juice Fiji, a local company producing health drinks recently experienced a
decline in local sales following COVID-19. What strategic marketing actions do you think
the company should consider in order to remain in business?
A marketing strategy is a business’s overall approach to how it will reach its desired
customers. A marketing strategy which I think Juice Fiji should use is Digital Marketing with
the use of social media as this is very cheap in terms of other way of marketing. As we all
know that most of the people nowadays carry smart phones where they use Facebook and
Viber every day. So, this way they can advertise on Facebook and on top of that they can give
free deliveries to people who buy in large quantities. They can also allow people to do online
payments as most of the people nowadays have credit cards and does online shopping.

QUESTION 2: Most successful entrepreneurs are now using the internet as part of their
digital marketing strategy to attract new clients, increase brand visibility, generate revenue,
and other business opportunities. The use of emails, social media and direct advertisement are
some examples of digital marketing. Discuss three key elements that make up an effective
and powerful digital marketing campaign.

 Campaign goals and tracking - What are we trying to achieve through our campaign
and how will we know when we achieve it? The entrepreneurs should always focus on
what is the main aim and purpose of their business and how they going to achieve that
and also checking the status of that vision.
 Campaign insight and targeting - Who are we trying to reach and influence? The
entrepreneurs should know who their target audiences are and how they going
influence them to choose their product or service.
 Key campaign messages and offers - What is the big idea or content asset(s) that will
engage our audiences? How are we trying to position our company, products and
services? Which campaign or product offers will engage and convert our audience?
Entrepreneurs show always focus on the products or services which is given by their
 business and the things which is demanded by their customers. This will lead them to
know more about their market.

QUESTION 3: PEST is one of the strategic analytical tools that businesses use to map out
their current positions before they develop strategic plans for future direction and growth.
Discuss the four main features of PEST analysis and at least one of its advantages.
PEST is an acronym for political, economic, social and technological.

 Political - the political environment is an analysis of what politics is doing to the

business world. Government regulations and legal issues can affect a business in
many ways so this factor looks at how that can happen and how business can be
prepared for it. Issues that must be considered include tax guidelines, political
stability, trade regulations, social and environmental policy, employment laws and
safety regulations.

 Economical - The economic factor observes outside economic issues that can play a
role in a company's success. This factor looks at interest rates, inflation,
unemployment, gross domestic product.

 Social - the social factor, a business can analyse the socioeconomic environment of
the given industry's market to understand how consumer needs are shaped and what
brings them to the market for a purchase. Among the items that should be examined
are demographics, population growth rates, age distribution, attitudes toward work
and job market trends.

 Technological - Technology plays a huge part in business, and it can impact it either
negatively or positively. With the introduction of new products, new technologies and
services, a certain marketplace can have a tough time adjusting so it's important to
assess the technology from all angles.

Some of the advantages of PEST Analysis are:

 It helps you to spot business opportunities and also gives you advanced warnings of
significant threats.
 It helps the business to avoid starting a project that are likely to fail, for reason
beyond its control.
 It reveals the direction of change within the business environment and helps the
business to shape what they doing, so that they work with the changes not against it.

QUESTION 4: Critically discuss components of strategic leadership that is required to drive

a development project at the Navua lake.
One of the most important tasks of a leader of an organization is to set and implement
strategy. The six main components are:

 Determining organization’s purpose or vision - The leader needs to work with

stakeholders, employees, customers, vendors, the community, and anyone else who
has a stake in the organization to determine what purpose it is pursuing. So, for this
 the Leader must know that what they are going to do with the Navua lake, with this
then he/she will be able to implement ideas how they going to achieve that.
 Exploit or maintain core competencies - every organization has a bundle of human,
intellectual, financial, and social capital that together create core competencies. When
these competencies are valuable, rare, difficult to imitate, they create a competitive
advantage. But as the external environment changes and as the industry or sector
changes, so too must an organization’s core competencies. So, a leader’s job is to
determine which core competencies are essential to attainment of the organization’s
purpose, and to develop, maintain, and exploit those core competencies.
 Develop human capital - Human capital, that is, people, their skills, abilities, and
intellectual property, are an essential input into the development and maintenance of
core competencies.  The development of people’s technical, social, political, and
leadership skills are the bedrock of core competencies. When the leader has decided
what business to operate there that he/she can hire right people for that job and start
that project.
 Creating an effective corporate culture - is essential to reinforce the values and
purpose of an organization and emphasize the cultural practices that make the
organization both effective and attractive as a work place.
 Emphasizing ethical practice - is really a sub-set of creating an effective
organizational culture.  People will look to leaders to model acceptable behavior. 
Essentially leaders must be ethical, as well as ask others to be ethical.
 Creating balanced organizational controls – is how a leader will control all other
five components in order to know that the organization is achieving its purpose.

QUESTION 5: Technological innovations often appear as an agenda item in strategic board

meetings – especially in agro based industries. Critically discuss how technological
innovation could assist in the development of the rice industry in Vanualevu.
Making innovations accessible to rice farmers could boost the crop’s production, reduce its
imports and increase food security. Technological innovation would lead to increase in rice
production in Vanualevu as well as Fiji as a whole. This will also allow more farmers to start
doing rice farming since the new technology will help them in planning and harvesting. This
will increase in GDP and they can export which could bring in foreign currency. This will
also create more jobs for the people of Vanua Levu as to operate this they will need more
workers.

QUESTION 6: Discuss three key advantages and three critical risk factors of buying into a
franchise.
Three advantages are:

 Lower Risk – because they have the support and backing of a larger and established
corporation. These corporations have business models that have been tested, often in
different markets across the country, and have already proven themselves to be
effective.
 Loyal Customer Base and Brand Recognition - Investing in a franchise grants you
access to an established, loyal customer base and potential employee pool. Buying an
established and recognized brand can give you an accelerated path to profitability by
bringing in customers and prospective employees from day one.
 Hit the Ground Running with Extensive Franchisor Support - Most franchisors
prioritize supporting their franchisees -- especially when they are just starting out --
 by offering them pre-opening assistance with operations like site selection, design,
construction, financing, training, and grand-opening programs. And also, some
franchises even give loans and other forms of financial assistance to their franchisees.

Three risks of buying Franchise are:

 Royalty Fees - Monthly royalty fees, which most franchises charge and are typically
about 4 percent - 6 percent of sales, reduce your profit potential

 Negative review of other franchise - Blunders of other franchisees can damage your
franchise’s reputation.

 Location Restrictions - restrictions on where you can operate, the products you can
sell, and the suppliers you can use

QUESTION 7: Agro businesses are more likely to face risks than non-agro businesses.
Describe natural events that are most likely to impact people engage in farming.
Some of the natural events that can affect people engaged in farming are:
 Cyclones – this is common issue in Fiji as most of the time crops are damaged by
severe cyclones which leads to shortage in the market and increase in the price of
vegetables and other products.
 Severe Drought – This is one of the major issues as to plant agricultural items we
need water but due to droughts people are not able to do this. This is common in the
western division.
 Tsunami – when there is a Tsunami, it destroys all the items which comes in its path.
 Bush Fires – a very good example was the Australia’s bush fire.
 Flooding – This is also major issue for people doing agricultural business as this
destroys most of their crops.

QUESTION 8: Pacific Ocean Culture is now operating a prawn and tilapia farm on a leased
land from the Fiji National University. Discuss some of the risk areas which the Company is
likely to face and or impact its business.
Some of the risk which will be faced by Pacific Ocean Culture in operating a prawn and
tilapia farm are:
 Natural Disasters - such as cyclone and flooding which is common issues in Fiji.
 Expiry of Land Lease – once the lease expires, they have to leave everything as it is,
even if it is well established.
 Unstable Political Environment – Fiji has common history of coup in the country.
 Tax – If tax law changes, they have to pay extra to government. For example, when
Fiji Water was well established then government passed a law stating them to pay
15cents per every litter they fill.