Page |1

APPENDIX A: ASSIGNMENT COVER SHEET

ASSIGNMENT COVER SHEET

Smuts
Surname
Renier
First Name/s
152071
Student Number
Business Management 1A
Subject

Assignment Number
Donna
Tutor’s Name

Examination Venue
23 April 2019
Date Submitted
x
Submission (√) First Submission Resubmission
8 Kawana Crescent
Sunningdale
Postal Address

7441
Renier.Smuts@Capetown.gov.za
E-Mail
(Work) 021 400 2363
(Home)
Contact Numbers
(Cell) 084 4774683

BACHELOR OF COMMERCE INFORMATION AND TECHNOLOGY

Course/Intake MANAGEMENT

Declaration: I hereby declare that the assignment submitted is an original piece of work produced by myself.

Date: 29/03/19
Signature:
 Page |2

Table of Contents
ASSIGNMENT COVER SHEET ................................................................................................... 1

Question 1: ...................................................................................................................................... 3

A number of challenges exist for management not only within the Southern African region ....... 3

Cronje, et al (2007) identifies 5 management challenges in South African organisations ......... 3

Question 2: ...................................................................................................................................... 4

(Porter, 1979) argues that the nature of competition within an industry is not only determined by
competing organisations within the industry. ................................................................................. 4

(Porter, 1979) mentions five forces that drives the industries competition ............................. 4-5

Figure 1.1: Forces Driving Industry Competition (Porter, 1979: 137). ...................................... 6

Bibliography ................................................................................................................................... 7
 Page |3

Question 1:

A number of challenges exist for management not only within the Southern African region, but
globally as well. Discuss FIVE (5) challenges to management within the Southern African
region.

Answer:

Cronje et al (2007) identified the following 5 management challenges in South African

organisations:

 Management training
 International management
 Non-profit seeking organizations
 Managerial and economic empowerment
 Cultural Diversity

Management training: this is a requirement for all South African organisations no matter how
big or small they are. We require management who are skilled and competent in order to ensure
that our organisations are constantly performing effectively all the time. Therefore, management
training is crucial and the means on how management will receive these skills and become
competent leaders in their organisations.

International management: this challenge is caused by globalisation that has forced South
African organisations to compete with international organisations. Management now need to
insure that our organisations improves on its performance as an organisation so that we can
sustain our competitiveness in the international market (Cronje, et al 2004).
 Page |4

Non-profit seeking organizations: The government is placing a high demand on our scarce
resources which provides a challenge for management whereby they need to ensure that these
scarce resources are effectively and efficiently utilized.

Managerial and economic empowerment: One of the consequences of the apartheid era was
that there was a large group of disadvantaged individuals, and the challenge for management is
now to empower these individuals with managerial and economic skills through mentoring and
management training (Cronje, et al 2004).

Cultural Diversity: The variety of different cultures, for example: race, ethnicity, religion and
gender characterizes the South African organizations. This diverse workforce needs to be
properly managed by management and the potential of this workforce needs to be successfully
utilized.

Question 2:

(Porter, 1979) argues that the nature of competition within an industry is not only determined by
competing organisations within the industry, but is established through the prevalence of five
forces. Discuss these FIVE (5) forces.

Answer:

(Porter, 1979) mentions five forces that drives the industries competition are as follow:

 Threat of new entrants

 The bargaining power of the consumers
 The bargaining power of suppliers
 The threat of substitute products
 Page |5

 The jockeying for position amongst the current competitors

Threat of new entrants: This refers to the threat which new competitors pose to existing
competitors. More competition leads to an increase in production capacity and if there is no
increased demand from the consumers for the product then there will be less profit to be made.
This kind of threat can be limited by establishing barriers, for example: a government policy that
provides protection (Porter, 1979).

The bargaining power of the consumers: This refers to a powerful buyer that can demand
better quality products, improved customer services and insist on a lower price. They can also
play competitors against each other. The consumer has a significant impact on the nature of
competition within an industry (Porter, 1979)

The bargaining power of suppliers: This refers to a supplier that can use its bargaining power
to influence a company to raise their prices of the product, lower the quality, and to reduce the
availability of the product. By doing this the suppliers can dominate competition within the
industry. (Porter, 1979)

The threat of substitute products: Substitute products can ultimately affect an industry’s
profitability by imposing a price ceiling. According to (Porter, 1979) the distinctness between the
competitor’s products can overcome this limit in the industry.

The jockeying for position amongst the current competitors: The fifth force called jockeying
for position examines how intense the current competition is in the same industry and this can be
seen through price cuts and how aggressively the competitors market their products and
introducing new innovative products (Porter, 1979).
 Page |6

Figure 1.1: Forces Driving Industry Competition (from Porter, 1979: 137).
 Page |7

Bibliography
Cronje, D.J. (2002). Management Principles, 3rd Edition. Cape Town. Juta & Co, pp 23 - 25
Porter, M. (1979). How Competitive Forces Shape Strategy. Harvard Business Review. March-
April, pp 137 - 145