Pamela Ndlovu

Student number N62771

Fundamentals of Business Management (FBM101c)

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FINAL ASSESSMENT EXAMINATION

SUBMITTED BY

PAMELA NDLOVU
(Student number N62771)

MAY 2020
 Pamela Ndlovu
Student number N62771
Fundamentals of Business Management (FBM101c)

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QUESTION 1
Doggie Day-Care Study
1.1 Decisional roles.
Type of decisional Description Example at Doggie Day-care
sub-role

i. Entrepreneur The manager makes a Charles decides to solve a

decision requiring problem faced by high income
original, unique group dog owners with the
utilisation of resources creation of a Doggie Day-care
available. where pets will be taken care of
while the owners are at work.

ii. Disturbance The manager decides The crisis is that in South Africa
Handler on how to solve people are moving into smaller
anticipated or town houses and flats, but pet
unanticipated ownership is on the rise. Dog
disagreements or owners also faced the challenge
conflict situations within of their pets damaging furniture.
or outside the The solution made was a day-
organisation. care where dogs are being
mentally and physically
stimulated thus getting home
happy and exhausted.

iii. Negotiator The manager works out The manager negotiated with
a solution for a staff that had to be posted to
particular circumstance branches in other areas. The
or situation by negotiation ensures that there is
negotiating. an amicable agreement which
the employee is satisfied with.

iv. Resource The manager decides Charles has allocated human

 Pamela Ndlovu
Student number N62771
Fundamentals of Business Management (FBM101c)

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Allocator on the best way to resources to the 24 branches

allocate, assign and accordingly. Each branch has
utilise resources. a branch manager and 5-7 staff
members with all key business
functions handled at their head
office.

1.2 Market Environment

Market environment Discussion
i. Customers These are the individuals that purchase the goods and
services of a business. Doggie Day-care derives the
majority of their customers from their target market
which is the higher income group. Customers influence
business at Doggie Day-care as sales can drop due to
non-repeat sales from customers. This will affect the
profitability and viability of the business.
ii. Suppliers These are organisations or businesses that supply and
provide raw materials, goods or services. The Doggie
Day-care business can be greatly affected by the
supplier if suppliers fail to provide goods at the
appropriate time, at the requested quantity and place.
An example, is if their supplier for dog food fails to
deliver on time or supplies sub-standard quality dog food
that may affect the dogs’ health. This may result in bad
publicity and financially draining legal fees.
iii. Competitors These are businesses that run and offer similar or the
exact kind of business that Doggie Day-care is in.
Competitors affect the business if their prices are more
 Pamela Ndlovu
Student number N62771
Fundamentals of Business Management (FBM101c)

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affordable with value addition. Doggie Day-care may

lose customers due to this thus, reducing their profit
margins.
iv. Intermediaries These are middleman between wholesalers and the
business. The Doggie Day-care business may be
affected by intermediaries if their mark-up margins are
too high. This will in turn negatively affect the Day-
care’s pricing which will also cascade and negatively
affect sales. The business may also be negatively
affected if they deal with multiple intermediaries.

1.3 The international environment can impact on the success of Doggie Day-
care. This is possible as currently South Africa is on stage 4 lockdown due
to the Covid-19 pandemic. With only essential services allowed to operate
and few industries open for business the Doggie Day-care will run out
income to meet its monthly financial obligations such as salaries and rentals.
 Pamela Ndlovu
Student number N62771
Fundamentals of Business Management (FBM101c)

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QUESTION 2

2.1 Factors of Production

Description Example
i. Entrepreneurship This is the way in which capital, human and natural
resources are blended together so as to make the
business viable and profitable. The owners of Doggie
Day-care seized the big opportunity available in the
market to meet a certain need not being met, by
providing a pet day-care.
ii. Natural Resources This is the natural sources required by a business to
operate. An example of this at the Doggie Day-care is
the land or space that the business rents. The land
needs to meet the specifics of maintaining and training
the pets in a safe and friendly environment.
iii. Human Resources This is the work force or members of staff that the
business has. Doggie Day-care has each of its 24
branches complimented by 5-7 staff members and a
branch manager.
iv. Capital These are the assets or money that Doggie Day-care
has and utilises to provide something of value to its
clients. An example is the Doggie Day-care’s state of
the art facilities that cater for all breeds in South Africa.

2.2 Management functions at Doggie Day-Care;

i. Planning: - is ascertaining in advance the different strategies and tactics

that Doggie Day-care makes in order to achieve its goals. The Day-care

planned for its success through research and utilisation of statistics

 Pamela Ndlovu
Student number N62771
Fundamentals of Business Management (FBM101c)

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available. Through planning the Day-care has strategically positioned

itself in Cape Town in order to meet the needs of the higher income

group target market.

ii. Organising: - The Doggie Day-care has organised itself by co-ordinating

activities so as to meet its set objectives. The centre gathered

information on the availability of the resources they would need. With

this information the centre has 24 branches in Cape Town area and

have organised the staff allocation for each branch.

iii. Leading: - The CEO, Charles influences and inspires his management

and staff to work towards obtaining and meeting their goals. Charles

influence inspires employees to follow at their own accord his lead and

operate in such a way that targets are met.

iv. Motivating: - The Doggie Day-care motivates its staff by setting weekly

goals for each branch and incentivising all targets met. The Day-care

also practices an open door policy and employees are also given

opportunities to lead.

v. Control: - The Doggie Day-care continuously makes necessary

adjustments and adaptations in all areas of its business. This

continuous improvement has helped in controlling the quality of services

it offers and the products that are administered at each centre.

 Pamela Ndlovu
Student number N62771
Fundamentals of Business Management (FBM101c)

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2.3 Management Skills;

i. Conceptual Skills which is the ability to perceive and interpret

intellectual concepts or abstract ideas so as to ascertain possible solutions

or to foresee/ predict future challenges and analyse all possible ways to

navigate the business.

ii. Human skills which is the ability to understand and manage human

behaviour of a person or a group of people in a business. This is also

known as interpersonal skills.

 Pamela Ndlovu
Student number N62771
Fundamentals of Business Management (FBM101c)

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QUESTION 3

3.1 The Consumer’s decision-making process;

i. Awareness of an unsatisfied need or problem. For example, an

individual, Mr. Msomi has a problem in that he has an allergic reaction to

the hand sanitisers available at most supermarkets and pharmacies. A

particular business that sells hypoallergenic sanitisers may advertise to

make consumers aware of the product.

ii. Collection of information on best solution for problem. Through an

advertisement, Mr. Msomi becomes aware that such a product is

available in the market. He collects data that can help him determine if

the product truly helps and if it is of quality. He browses the internet to

see blogs and reviews with information about the product. He also asks

his friend who he recalls has a similar allergic reaction if he has tried the

product.

iii. Evaluation of possible solutions. Mr. Msomi will assess and compare

the data that he has gathered about the product. He will compare the

pricing, quality and value addition of the product with other similar

products available in the market.

iv. Deciding on course of action. Mr. Msomi will then resolve to purchase

the product or not. In this case he makes a purchase.

v. Post-purchase evaluation. Mr. Msomi after buying the hypoallergenic

hand sanitiser will then make an assessment of the product. The

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Student number N62771
Fundamentals of Business Management (FBM101c)

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assessment of the product will affect his choice to buy the product again.

In this case, he was satisfied with the sanitiser and will buy again.

3.2 The effects of COVID-19 on the economy;

i. Most countries are on lockdown. With most borders closed, the lack of

foreign trade has negatively affected business. This has seen the

stock exchange in most countries going down.

ii. Businesses are failing to secure raw materials purchased out the

country which in turn affects production.

iii. Production lines are halted due to lack of resources affecting outputs –

goods and services.

iv. With limited goods and or services the business may fail to realise a

profit and thus business viability will be compromised.

v. Customers may face serious challenges if they fail to get a product or

service that is needed especially during the pandemic. An example of

this is the shortages of face masks, PPE and ventilators.

vi. With little to no sales for most business in the commercial industry, it

will be difficult for the business to meet its financial overheads.

vii. Lack of income in business may cause disgruntled workers if salaries

are not paid.

vii. Crime rate may be on the increase due to hunger and lack of focus

from national forces as the concentrate on maintaining the lockdown.

 Pamela Ndlovu
Student number N62771
Fundamentals of Business Management (FBM101c)

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ix. Employees are losing jobs. Those with jobs are failing to work from

home as most households have children which makes work

complicated.

x. The Education sector has been negatively affected as most schools,

colleges, technikoms and universities are closed. With the loss of lives

(skilled and unskilled workers), they must be a continuous flow of

interns and graduates to fill in and take specialised positions in the

industry.
 Pamela Ndlovu
Student number N62771
Fundamentals of Business Management (FBM101c)

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QUESTION 4

4.1 How Mpact is using reverse logistics and how it could improve its

processes;

Mpact logistics has a recycling division, which collects 450 000 tons of

waste paper and board for recycling. The waste is processed to be used

as raw input material by plants manufacturing new packaging.

4.2 Benefits derived from Mpact’s current activities;

i. recycling makes savings in the utilisation of less expensive raw input

material.

ii. reutilisation of resources returned or recycled decreases inventory.

iii. Management of the resources available leads to an efficiently run

business.

iv. The quality customised products and services they offer to their

customer base leads to customer satisfaction.

v. Mpact has a competitive advantage as one of the leading paper and

plastics business in southern Africa. This means that they also have a

good network in Southern Africa.

4.3 Green supply is the integrated initiatives put in place to minimise on waste

and the negative effects to the environment by throughout the processes in

the supply chain of a business. Reverse logistics and green supply is

linked in a way; as reverse logistics solves a problem by waste

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Student number N62771
Fundamentals of Business Management (FBM101c)

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management. The control of waste or damaged or unused product

reduces the harsh effects that these products have on the environment.

4.4 Companies have re-engineered their logistics process to incorporate

reverse logistics by;

i. Reusing, reducing and recycling products that are either rejects,

damaged or unused.

ii. Reconditioning of products and services. By renovating, repairing or a

complete overhaul of the unused, damaged product for resale.