RICHFIELD GRADUATE INSTITUTE OF TECHNOLOGY (PTY) LTD

FACULTY OF BUSINESS AND MANAGEMENT SCIENCES

BUSINESS MANAGEMENT 621 – BBA

ASSIGNMENT COVER SHEET

Name & Surname: ______________________ Student No: _________________________

Qualification: __________________ Year: _______ Module Name: ____________________
Specialization: _________________________ Assignment Due Date: _______________
ID Number: __________________ Date submitted: __________ Semester: _______________

MARK EXAMINER’S MODERATOR’S

ASSESSMENT CRITERIA REMARKS
ALLOCATION MARK MARKS
MARKS FOR CONTENT
QUESTION ONE 45
QUESTION TWO 45

TOTAL 90
MARKS FOR TECHNICAL ASPECTS
1. TABLE OF CONTENTS 2
Accurate numbering according to the
numbering in text and page numbers
2. LAYOUT AND SPELLING 3
Font – Calibri 11
Line Spacing -1.5
Margin should be Justified
3. REFERENCE 5
According to the Harvard Method
TOTAL MARKS 10
TOTAL MARKS FOR ASSIGNMENT 100
EXAMINER’S COMMENTS

MODERATOR’S COMMENTS

Name of the Examiner: __________________ Name of the Moderator: __________________

Signature of Examiner: __________________ Signature of Moderator: __________________
Date: ___________________ Date: ____________________

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Instructions and guidelines

NB: 1. Candidates are advised to read the guidelines in the study guide.
2. Assignment questions are on page 3.
3. For reference use prescribed, recommended books and other resources you may come
across.
4. Correct Harvard referencing carries (5 Marks).

The purpose of an assignment is to ensure that the student can:

• Use methods of enquiry and research in a disciplined field.

• Interpret and evaluate text.

• Have a sound understanding of key principles and theories, rules, and awareness.

• Solve unfamiliar problems using correct procedures as well as investigate and critically analyse
information and report thereof.

• Present and communicate information reliably and coherently.

Instructions and guidelines for writing assignments

1. Use the correct cover page provided by the institution.

2. All essay type assignments must include the following:
2.1. Table of contents
2.2. Introduction
2.3. Main body with subheadings
2.4. Recommendations and Conclusions
2.5. Bibliography
3. The length of the entire assignment must have minimum of 10 pages. Typed with font size 11
Calibri. 1.5 spacing
4. The quality of work submitted is more important than the number of assigned pages.
5. Copying is a serious offence which attracts a severe penalty and must be avoided at all costs. If
any student transgresses this rule, the lecturer will retain the assignments and ask the affected
students to resubmit a new assignment which will be capped at 50%.
6. Use the Harvard referencing method.
7. Please note that these guidelines are not applicable to quantitative subjects like Accounting and
Statistics.

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Read the case study below and answer ALL the questions that follow.

Exclusive Books

In 1951, Phillip and Pamela Joseph opened a small bookstore in the middle of Hillbrow. Fifty
years later, this little shop has grown into a nationwide chain of 40 stories, employing 1 200
people and stocking between 50 000 to 10 000 titles. Its reputation has grown, and Exclusive
Books has become known as the country’s foremost bookseller. The first Exclusive Books
store soon became known for its intimate atmosphere and ability to anticipate customer’s
reading needs. More than just selling books, the shop offered a cultural experience. Its
popularity grew to the extent that large premises were required only three years after it first
opened its doors. In 1957, Exclusive Books became one of the very first shops in South Africa
to open for trading hours at night, over weekends and public holidays. This was a popular
move which changed the face of bookselling in South Africa.

In 1973, Exclusive Books moved to Pretoria Street in Hillbrow. The shop soon established itself
as a Mecca for book enthusiasts. The innovative architectural and interior design of the
bookshop set the trend for all future Exclusive Books outlets. The shop’s revolutionary and
refined, tranquil atmosphere made it favourite place for book enthusiasts to linger, especially
since it was one of the first shops to offer late trading. Even today, the relaxed atmosphere
of Exclusive Books is believed to play a primary role in attracting and keeping people in the
store.

The 1970s was the era of Hector Petersen and the Soweto uprisings, of detentions without
trials and political bans. Exclusive Books embraced the defiant ethos of the time. The shop
was known to sell reading material unavailable anywhere else and thus became the darling
of the liberal set, frequented by activists and gangsters. However, in 1976, the owners of
Exclusive Books emigrated, selling the business to The Premier Group. It was also in 1976 that
the first Exclusive books branch was opened in Cape Town. Between 1976 and 1994, six shops
were added to the chain.

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The 1980s saw a period of rapid growth, highlighted by the opening in 1986 of the Hyde Park
branches. In 1994, the Hyde Park branch was revamped and at nearly 1 000m2 became the
biggest general bookshop in the southern hemisphere – a status which it still enjoys today. A
further revamp was completed in June 1999 which increased the floor space to 1 100m2. In
1998, five more shops were acquired after Facts and Fiction, a Gauteng-based chain, merged
with Exclusive Books. The chain then enjoyed an estimated market share of 35% with group
sales of approximately R250 million. At the end of 1999 Exclusive Books had 18 outlets,
including 2 new outlets that were opened at the Johannesburg International (in the
international departure area) and Cape Town airports. In April 2006, Exclusive Books had 39
stores in South Africa and a store in Gaborone, Botswana. Johannesburg alone has twelve
branches. The branch in Sandton Square (specializing in business books) is a very impressive
store with beautiful décor and a coffee shop. This is also the branch in the chain that offers
the most titles, although smaller than Hyde Park branch in terms of floor space occupied.

Exclusive Books (a member of the Johnnic Communications Group) through advertising and
strategic repositioning, has re-established a 55-year-old bookstore company as a cutting
edge, leading national brand. During 2002-2004 Exclusive Books achieved and sustained 20-
30% year-on-year growth in books sales, becoming the second largest contributor to Johnnic
Communications Retail’s revenues and a dominant market player. Due to popularity and
demand Exclusive Books has doubled in size and extended the range and selection of its titles.
With something for everyone, one will not have any problem finding something of interest or
of relevance to one’s interests. Exclusive Books was rated the best book retailer in South
Africa during Book retailing in South Africa is dominated by three booksellers: the bookshop
chain Exclusive Books with 401 substantial specialist bookshops; the media chain CNA with
about 350 outlets; and the BMA book clubs Lesersking and Leisure Books. This concentration
in the retail industry where almost 70% of the market is shared among the three top
companies works to the advantage of multi-national publishers who can make titles it allows
for relatively effective low-cost entry by small local publishers if the titles are accepted by one
of the three leading booksellers. These leading booksellers are generally sensitive to the
needs of publishing including small local publishers, yet the main requirement for.

The chain’s earlier dedication to providing a cultural experience has not changed. People still
visit Exclusive Books as much to browse as to buy. In 1999 Exclusive Books reinvented their
brand identity creating a younger friendlier and accessible image. As part of this strategy,
Seattle Coffee cafes have been introduced to 14 of the stores. This joint venture has made
Exclusive Books a kind of ‘cultural playground’. It was also around this time that the chain’s
loyalty programme Fanatics was launched to further stimulate sales. Exclusive Books ensure
that the staff they hire have a very good knowledge of books and a passion for reading.

In 2003, with the help of Ogilvy & Mather, Exclusive Books managed to successfully reposition
their brand, ensuring that the new image encouraged South Africans to buy more books. The
campaign aimed to broaden the relationship with Fanatics members.

Source: https://www.studocu.com/en-za/messages/question/2391160/in-1951-phillip-
and-pamela-joseph-opened-a-small-bookstore-in-the-middle-of-hillbrow-fifty-years

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Question One (45 Marks)

Critically examine the growth strategies followed by Exclusive Books that has led to the
company becoming a leading bookseller.

Question Two (45 Marks)

Evaluate how competitive forces in the industry have shaped Exclusive Books’ strategy.