UNIVERSITY EXAMINATIONS UNIVERSITEITSEKSAMENS ~~ — UNISA lrex MNB1501 (492963) OctoberiNovember 2018 ess Management IA Duration 2 Hours 70 Marks EXAMINERS FIRST MS N DE METZ SECOND MS N DA SILVA-ESCLANA Closed book examination ‘This examination question paper remains the property of the University of South Africa and may not be removed from the examination venue This paper consists of 21 pages including 4 sheets of rough work paper (pages 18-21) plus instructions for the completion of one mark reading sheet ‘This examination paper remains the property of the University of South Africa and may not be removed from the examination room. __ “Please complete the attendance register on the back page, tear off and hand to the invigilator. Each question counts one mark Complete the mark-reading sheet that is provided and also circle your answer on the examinatic2 MNB1501/RMB151K Oct/Nov 2018 THE BUSINESS WORLD AND BUSINESS MANAGEMENT __jj The function creates a favourable image of the business and iL promotes goodwill between the business and the external groups that are directly and indirectly involved in the business 1 production and operations 2 purchasing 3 marketing 4 public relations Read the case study below and answer questions 2 and 3 ‘A reason for the success of Southwest Airline lies in the treatment of the airine’s personne! Management believes that when employees are treated well, they will treat customers well, providing a beneficial situation for all stakeholders Southwest Airlines’ wages are generally lower than those of competitors but the company sweetens the deal by making stock options available to employees, enabling them to benefit from the airline's financial success 2 Southwest Arline functions within a free-market environment, which means that 1 members of a community may not possess assets and earn profits on these 2. members of the community can freely choose between products, services, places of residence and careers 3. the allocation of resources 1s not affected by free markets 4 the state owns all major ndustries Businesses, such as Southwest Airlines need to ensure that they provide a safe environment for their employees, for example, by ensuring that materials are packed, transported and moved to and in the organisation mn the safest possible manner This ensures that the needs of employees are satisfied 1 physiological 2 secunty 3 esteem 4 setf-realisation Karla 1s expecting her first baby and 1s doing some research on hospitals that would best suit her particular needs In order to provide Karla with the health service and care she would need during her pregnancy, the hospital requires labour, beds and medicine The process whereby the labour, beds and medicine are converted into @ health service 1s known as the economic system production exchange the economic principle Rone ITURN OVER] UNISA3 MNB1501/RMB151K OctNov 2018 Which one of the following statements 1s NOT true regarding society's scarce resources? The supply of natural resources a country possesses cannot be increased Human resources include the physical and mental talents and skills of people who are employed to create products and services, Capital products have a short working life and stocks can be bullt up quickly Entrepreneurship refers to the collective capacity of those individuals who accept the 1sks involved in providing products and services Which one of the following is a characteristic of a market economy? Members of a community may not possess assets or earn a profit There is litle or no freedom of choice for producers and consumers ‘There is no competition in the market The state keeps its interference in the system to the minimum Within a economy, spending ts only limited by income market command socialist moxed market Read the case study below and answer questions 8 and 9. In January 2005, MXit was launched as a subscnption service, which Heunis knew would not work, but decided to try anyway By the end of Apnl 2005 MXit had only 40 subscribers At the end of May 2005, it was launched as a free service and the user numbers started skyrocketing 8 ‘The growth of MXit since its launch in 2005 has been astronomical and it can only be contributed to an exceptionally visionary entrepreneur, Herman Heunis Herman Heunis was able to consider what the future might offer, how this will impact on the business, and which resources and actions are necessary to prepare for it Which management skill is apparent in the scenario above? Bone Strategy skills Planning skills Marketing skills Financial skills TURN OVER} UNISA10 " 42 13 4 MNB1501/RMB151K ‘OctiNov 2018 In order to accommodate their meteoric rise in the user base, MXit continually upgraded their servers The servers are part of the resources of the business. 4 human 2 physical 3 financial 4 natural Technology forms an important part of almost any business in the modern business world During the entrepreneurial process, many businesses will need to determine if the technology they require for their business exists and if they can get access to such technology During which phase of the entrepreneurial process will this decision be made? 1 Decision to become an entrepreneur 2 Identifying opportunities and ideas 3 Access to resources 4 Whiting a business plan Which one of the following 1s an advantage of buying an existing business? Employees are inherited The image will be difficult to change There will be an established customer base The inventory may be obsolete Bone Peter intends to open a cell phone repair business in his rural community He 1s currently busy collecting information from the locals that will help him establish whether the idea will work This information includes how many people in the area own cell phones and how often they require repair services for their phones What is the correct business term for the activity Peter 1s currently undertaking? Business study Feasibility study Business analysis, Forecasting proposal RON= skills involve the ability to evaluate the offerings of the business and their features, to determine how they satisfy customers’ wants and needs, and to establish why customers find them attractive Planning Strategy Project management Marketing Bene ITURN OVER} UNISA14 5 MNB1501/RMB151K OctNov 2018 ESTABLISHING A BUSINESS From a legal point of view, the most pertinent consideration in choosing a form of business 1s, 1 whether or not the enterpnse can transfer its shares, 2 whether or not the enterprise will have legal personality 3 the degree of control or management authority the entrepreneur will be able to exercise over the activities of the business 4 the potential for capital acquisition Read through the case scenario below and answer questions 15 and 16 that follow MXit 1s described as a lifestyle company with a disruptive technology offering a range of services including free instant messaging 15 16 7 In which part of the business plan would a description be of MXit's ‘key players’ such as, active investors, management team and directors? 1 Marketing plan 2 Products and/or services 3 General company description 4 Management plan MXit's revenue projections and expense projections will be included in the of the business plan. 4 management plan 2 operating plan 3 general company descnption 4 financial plan Lizzy, a wnter, has started her own publishing company, Book&Beyond Lizzy decides that Book&Beyond would be established as a private company Which one of the following ts a charactenstc of a private company? 4 Book&Beyond must have at least seven shareholders upon registration of the ‘company 2 The registered name must contain the words “(Pty) Ltd” so that the name of the ‘company reads “Book&Beyond (Pty) Ltd” 3 Book&Beyond's members will share the management and control of the business on an equal basis, 4 By choosing this type of enterprise, the legal formalities that Book&Beyond has to adhere to are minimised [TURN OVER] UNISA18 19 20 6 MNB1501/RMB151K Oct/Nov 2018 Lizzy now needs to draw up a/an so that she can obtain the necessary bank finance and investment funds to start Book&Beyond 1 memorandum of agreement 2 article of association 3 contract 4 business plan Transnet (SOC Lid) 1s an example of a company 1 personal-tabilty fe ‘state-owned 3 pnvate 4 public ‘Why would a business plan be important to customers? 1 It provides the assurance that the business will still be around in three to five years’ time 2 Itprovides a clear understanding of the venture's mission and objectives 3 It provides clanty on the return of investment 4 It creates an understanding of the emerging culture of a young business ‘THE BUSINESS ENVIRONMENT Read the case scenario below and answer questions 21 and 22. In 2012, Tsogo Sun Gaming and Southern Sun announced the consolidation of its operating divisions under one name Southern Sun, previously the umbrella brand for the hotel division of Tsogo Sun, and Tsogo Sun Gaming, the group's casino and entertainment division, was incorporated into the Tsogo Sun brand, unrfying the company under one name and the ‘Sunburst fogo 2 22 ‘Tsogo Sun's reputation 1s an example of a/an of the company 1 tangible resource 2 intangible resource 3 organisational competency 4 human resource South Africa has seen dramatic increases in the fuel price in recent years, which has had fa knock-on effect on the prices of food and other commodittes This development forms part of the environment and has a/an influence on a business such as Tsogo Sun macro-, direct macro-, indirect market, direct market, indirect Ronse [TURN OVER] UNISA23 24 25 26 a7 7 MINB1501/RMB151K Oct/Nov 2018 The current labour laws and the Employment Equity Act 55 of 1998 are examples of variables in the environment that, have an influence on the business and the management of businesses 1 institutionaV/governmental, directly 2 institutionavgovernmental, indirectly 3 social, directly 4 social, indirectly In the environment, management identifies, assesses, and takes advantage of opportunities in the market, and develops and adapts its strategies to meet competition 1 mcro- 2 task 3 macro- 4 primary Airlines are starting to appoint more female pilots, something that was unheard of a mere decade ago This refers to a change in the __ environment 4 micro- 2 market 3 macro- 4 consumer Airlines know that if there 1s a global shortage of fuel, their ticket prices have to increase to accommodate the higher price they will pay for the fuel Which characteristic of the business environment is discussed here? 1 Interrelatedness 2 Instability 3 Uncertainty 4 Complexity The ability to combine resources, people and processes is known as which 1s part of the environment. consumerism, macro- corporate social responsibilty, mint competition, market organisational capabilites, micro- RONS ITURN OVER] UNISA28 8 MNB150URMB151K ‘OctINov 2018 CORPORATE SOCIAL RESPONSIBILITY Which one of the following statements about corporate social investment (CSI) 1s correct? 4 Corporate social investment refers to a company's contribution to society through its core business activities 2 Corporate social investment refers to a company’s contnbution through «ts engagement in public policy 3 Corporate social investment is also called corporate philanthropy 4 Corporate social investment is synonymous with corporate social responsibility Read the case scenario below and answer questions 29 to 32 ‘South African Breweries’ (SAB) 's listed on the Johannesburg Stock Exchange and the parent company, SABMiller 1s listed on the London Stock exchange As such, the SABMiller group of companies must comply with corporate governance rules set out for listed companies in various countries Although corporate governance is the responsibility of every employee in the company, the following structures are particularly responsible for corporate governance in the SABMiller group The Board of Directors, the Executive Committee, Audit Committee and Chief Financial Officer 29 30 SAB 1s aware of the damaging effect alcohol can have on its consumers and has implemented vanous programmes to counteract this SAB therefore has a social driver behind their CSR programme This means that they are aware that 1 itis desirable for a company to be thought of as socially responsible 2 there 1s specific legislation encouraging socially responsible behaviour 3 the main advantage 1s a reduction in costs 4 adecision was made that clearly indicated what was night and what was wrong SAB needs to engage various stakeholders when planning for CSR Which one of the following will typically occur first dunng the stakeholder-engagement process? 4 Planning 2 Preparation 3 Engagement 4 Evaluation [TURN OVER] UNISA31 32 33 35 9 MNB1501/RMB151K OctNov 2018 SAB wants to establish a corporate policy by using a reactive approach, which allows stakeholders to determine what they want from the company and what they consider the sssues and culture of the company Which approach would they be following? 1 Avalues-based system 2 Astakeholder-engagement process 3 Acombination of both a values-based system and a stakeholder-engagement process 4 The corporate governance approach refers to the way in which an organisation or group makes decisions about how to manage its affairs 1 Social responsibility 2 Corporate social responsibility 3 Sustainability 4 Corporate governance Foxy Lady sells fur coats and accessones Animal activist group PETA has launched a petition against Foxy Lady to stop them from selling furs PETA has presented a convincing legal argument against the fur trade and has gathered a lot of local support They organise daily mass protests outside the Foxy Lady store, thus making the store's operations impossible They have become a high pnonty and a major source of concern for Foxy Lady PETAcanbe seen asa/n__ stakeholder to Foxy Lady 4 subordinate 2 actwe 3 primary 4 secondary INTRODUCTION TO GENERAL MANAGEMENT Management is an integrated process If managers motivate and get feedback from the staff members they are responsible for to reach their goals, and have regular meetings with supenors and subordinates, they would be involved in the business activity known as planning organising leading control RON The marketing manager of a business will develop plans, as they are more specific in focus and deal with people and actions operational long-term tactical strategic Rene (TURN OVER} UNISA10 36 The superuisors and foremen form part of, bons top lower middie functional MNB1501/RMB151K management Read the case scenario below and answer questions 37 and 38. OctNov 2018 Tsogo Sun has been in the hospitality industry for over 44 years and 1s currently the leading hotel and entertainment group in Africa 37 38 39 40 You are the CEO of Tsogo Sun As the CEO you will develop the at Tsogo Sun PONS tactical operational ‘medium-term strategic plans ‘As the CEO of Tsogo Sun, you are expected to motivate your employees as well as promote them when they perform You therefore play a/an business 1 decision-making 2 interpersonal 3. entrepreneunal 4 information Which one of the following skills would be the most important for a CEO? 1 2 3 4 Conceptual skills Interpersonal skills Technical skills, Design skills role within the Which school of thought on management identified the six functions of a business? 1 2 3 4 The scientific schoo! The management process school The human relations of behavioural school The quantitative school (TURN OVER] UNISA41 “1 MNB1501/RMB151K Oct/Nov 2018 Jamie works for a pharmaceutical company in the Eastern Cape He 1s mainiy responsible for formulating long-term strategic goals and strategic plans Jamie is part of management middle top-level tactical lower-level RONG PLANNING Read the case scenario below and answer questions 42 and 43. Tsogo Sun creates and mamtains long-term sustainable value through a number of key pillars including meeting reasonable requirements for their stakeholders, financial strength and durability and maintaining product relevance to customer experience A critical component of the group's business and its plans for organic growth 1s the development of the casino and hotel real estate 42 43 44 In excess of R800 million has been invested annually in the expansion, refurbishment and maintenance of the group's existing casinos and hotels This is an example of 1 vertical integration 2 product development 3 dwersification 4 honzontal integration As part of its strategy, Tsogo Sun has acquired and revamped distressed hotels such as the defunct Grace Hotel in Rosebank where the TSG group opened a new five-star deluxe boutique hotel, 54 on Bath, in 2012 This has given them a competitive edge as they boldly entered into a new market In the scenano above, Tsogo Sun has adopted a corporate strategy. 1 market development 2 product development 3 joint-venture 4 concentration-growth Planning creates a blueprint of the organisation's goals and formulates plans to attain these goals Which one of the benefits of planning 1s described here? 1 Planning provides direction 2 Planning reduces the impact of change 3 Planning promotes co-ordination 4 Planning ensures cohesion [TURN OVER} UNISA12 MNB1501/RMB151K Oct/Nov 2018 45 Lowerlevel managers use goals to develop goals. 1 strategic, short-term 2 strategic, medium-term 3 tactical, short-term 4 tactical, medium-term 46 Agoalis ‘when it 1s realistic but still provides a challenge 1 attanable 2 specific 3 relevant 4 measureable 47 Which ONE of the following 1s an example of a project? The customer ts always nght! Being late more than twice a week will result in disciplinary action being taken Empioyee grievances should be submitted in writing to the HR department Company X will install the new access card readers in the buildings pons ORGANISING 48 — Amanager's span of managements determined by the number of subordinates who report directly to him the number of subordinates at lower levels the number of subordinates on the same level the size of the enterprise Bene Read the scenario below and answer questions 49 and 50. Structure is extremely important at Nike as it largely priontises where management spend their time Large organisations such as Nike are often inundated with information if the organisational structure 1s not appropriate To further enhance the current reporting relationships at Nike, the decision was taken to introduce an additional management layer in the Nike hierarchy 49° What is the first step Nike had to take in establishing reporting lines, when they introduced the additional management layer in the Nike hierarchy? Nike management had to determine the appropriate chain of command Nike management had to determine who reports to whom Nike management had to determine the optimal span of management Nike management had to determine if managers would be underutilised BONS (TURN OVER] UNISA50 51 52 53 13 MNB1501/RMB151K ‘OctNov 2018 Alex 1s a manager at a Nike store in Gauteng He needs to make sure that there 1s a clear and unbroken line of authonty that extends from the lowest to the highest position in the organisation This descnbes the __ chain of command span of management scalar principle unity of command Bons Thabo is a lecturer at Unisa He contacts the ICT manager to assist him in setting up the self-assessment application on his computer on the myUnisa system The ICT manager has authority over Thabo ne staff functional centralised ona The more complex the business 1s, the __ the potential span of management is broader narrower flatter more decentralised sens Involves continually assigning employees new, challenging tasks in order to increase their opportunities for growth and advancement 1 Job specialisation 2 Job enrichment 3 Job enlargement 4 Job rotation Hf South Afnean Brewenes 1s looking for a structure where specialist project managers can help manage complex projects while functional specialisation 1s retained, which organisational structure should they make use of? Functional Matnx Location Customer Rene (TURN OVER} UNISA14 MNB1501/RMB151K OctNov 2018 55 What is a main disadvantage of using the organisational structure (as described in question number 54) that SAB will make use of? 4 2 Divided authority and a serous nsk of soured relations between the project and functional executives Managers in each section concentrate their attention almost exclusively on their products and tend to lose sight of the products of the rest of the business Administrative costs increase because each section has to have its own functional specialists such as market researchers or financial experts It is a very basic type of departmentalisation and specialised knowledge of employees are not used to maximum effect Read the case scenario below and answer questions 56 and 57. South Afnican born serial entrepreneur and CEO of Tesla Motors, Inc and Space X, Elon Musk, has changed the playing field, namely to make his company’s intellectual property available in an open source format 56 As CEO of Tesla Motors, Elon Musk, has the ability to influence his employees’ behaviour Which component of leadership does this refer to? 1 2 3 4 ‘Authonty Power Responsibility Accountability 57 If Tesla Motors’ supervisors get rewarded by management for the performance goals they meet, then management are making use of power bone 58 Soci Bone coercive reward legitimate referent loafing refers to the tendency of individuals to put in less effort when working in a group a particular campaign that employees might embark on the way that a group will stand together as a unit employees from the same department who meet regularly to discuss ways of improving the quality of the work environment {TURN OVER} UNISA59 60 61 62 63 15 MNB1501/RMB151K OctNov 2018 Which leadership approach is becoming crucial in the global business world plagued by corporate scandals? Corporate leadership Ethical leadership Cross-cultural leadership Visionary leadership RON Chris motivates his employees by appealing to their self-interest he pays them and promotes them for their work efforts Chnis is an example of a leader. 1 transformational 2 transactional 3 chansmatic 4 isionary The execute dean at the College of Economic and Management Sciences decides to appoint a committee comprising staff members from the ICT department as well as junior and senior academics from each department to investigate the efficiency and usability of the myUnisa system as a viable ICT system On completion of the project, the group will disband This 1s an example of a __. group, which is a type of group 1 command/formal 2 commandinformal 3 task/formal 4 task/informal Edcon’s monthly Club magazine has a readership of § 8 million The Club magazine communicates with account holders and not only communicates special offers, but also important account information Within the communication model the account holders 1s 4 sender 2 receiver 3 message 4 channel The characteristics of an effective control system are _ complexity and flexibility integration and flexibility creativity and integration creativity and complexity Bone [TURN OVER} UNISA16 MNB1501/RMB151K OctNov 2018 Read the case scenario below and answer questions 64 and 65. Maria Ramos and her management team at Transnet have dealt with two large problems in the transformation of the company In a presentation, Maria Ramos identified four key issues, two that are related to the control of human resources and financial resources The financial concerns included weak financial performance and controls 64 65 66 67 68 in which step of the control process, would Mario Ramos have collected information so that she could quantify activities and compile reliable reports on the performance of the company? Step 1 Setting standards Step 2 Measuring actual performance Step 3. Evaluating deviations (performance gap) Step 4 Rectifying deviations Rone The problem within the human resources at Transnet included low morale and the lack of investment in human capital Which one of the following is an mstrument Transnet could make use of to control its human resources? 1 Performance measurement 2 Justan-time system (JIT) 3 Total quality management (TQM) 4 Economic-ordering quantity (EOQ) ‘An unwntten rule of effective control is that control should not become so complex that the implementation of the control system becomes more expensive than the benefits derived from it Which charactenstic of an effective control system 1s referred to here? 1 Accuracy 2 Timeliness 3 Integration 4 Simplicity If MTN decides to do economic forecasting, which area of control would this activity relate to? 1 Controt of physical resources 2 Control of human resources 3. Control of information resources 4 Controf of financial resources When using the system, inventories are ordered only when they are needed and the costs of maintaining inventory levels over extended periods are eliminated 1 economic order quantity (EOQ) 2 matenal requirements planning (MRP) 3 just-in-time (JIT) 4 performance measurement (TURN OVER] UNISA69 70 17 MNB1501/RMB151K ‘OctNov 2018 If Themb1 were to focus on the revenue of her cosmetics business, she would use a budget. cashflow capital production sales Bone To complement the budget, management can use to apply financial control ratio analysis the cost-benefit pnnciple cost analysis future-value factor calculations BONS ° Unisa 2018 ITURN OVER} UNISA18 MNB1501/RMB151K ‘OctNov 2018 ROUGH WORK {TURN OVER] UNISA19 MNB1501/RMB151K OctiNov 2018 ROUGH WORK [TURN OVER} UNISA20 MNB1501/RMB151K ‘OctINov 2018 ROUGH WORK [TURN OVER] UNISA21 MNB1501/RMB151K ‘OctINov 2018 ROUGH WORKed UNIVERSITY OF SOUTH AFRICA UNISA Irae. universrrer van suio-arrika EXAMINATION MARK READING SHEET EKSAMEN-MERKLEESBLAD Fs «05 050s cs ca eof fos es cao) [Ss tteete sso ets ct ebbe fea sh ets rats a PAy [Eh iia asas es cp eal fee arose at ay ge a) Eyes *) vir gebruik deur eksamenopsiener SES RMB shh RRS 1636) c8 |] For use by examination mvigilator bis ceo tas ees ep too shes [See ege spe egs ty cad, Sega ey eps eso [as ways gs eg eas covet. fas can bsg Ess easeos beens eps cou eap afss eo 19 1) 7 ‘ 1 UEC ONLY aN PENS TO COMPLETE TE Sut + atu secs n We 911000 OM HERDIE LAO I VOLEOO! 2 MAneUNe tas 2 eas voLe me e pea wow neve We i bearers MD A 25s eared whe Gia a] Magen trav anced wt Degg rt hs Heage case fidie ce Hane ae Siebaniteg ie ts davies Mo fdr ena Hes Grae mes anaes Maga a harass Gage way ease than a Sethi ata aad epanen afi Mee etc Racha gy maa 4 ee caress Henig aaa, ON | 2s iB ai asen ea eet cesarean cs Haasan ne epaarea cs ep ecrunes Bieb ea bof Geiss Mote s Shei ane as peace em » eure es coo te dearer seal g se pee) D dsiiar es Ie Maier ene ara @ aimarpee Bo haan mt peel Be Beg wo Pea ears e al MNGi gee ay? 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