HIGHER EDUCATION PROGRAMMES

Academic Year 2023: January - June

Formative Assessment 1 (FA1): Business Management 2 (HBMN200-1)
NQF Level, Credits: 6, 16
Weighting: 40%
Assessment Type: Essay Questions
Educator: Kevin Perumal
Examiner: Kevin Perumal
Due date: 31 March 2023
Total: 100 marks

Instructions:
• This assessment consists of four (4) questions.
• It is based on Unit 1 to Unit 4 (Chapters 1-4) of your prescribed textbook.
• All the questions are compulsory. Note the mark allocation for each and answer
accordingly.
• Your assessment must be typed using:
o Font: Arial
o Font size: 12
o Line spacing: 1.5
• A Copyleaks Report will be issued via ColCampus once the assignment is
submitted. Please ensure that you follow the correct steps when uploading your
assignment, to ensure that the Copyleaks Report is correctly issued. If the
incorrect document is uploaded, or if no Copyleaks Report is issued, a mark of
zero (0) will be awarded. If the Copyleaks Report indicates that a 30% similarity
rating has been exceeded, 25% of the assessment total will be deducted from
the final grade. Where a Copyleaks Cheat Detection Report is issued, your

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 submission will automatically be treated as if you received a similarity rating in
excess of 30% and 25% of the assessment total will be deducted from the final
grade.

The following learning outcomes are assessed in this assessment:

• Suggest factors to consider when aiming to establish a competitive advantage.
• Identify the key individuals involved in the strategic management process.
• Formulate SMART goals and objectives.
• Advise on the sensible use of a SWOT analysis in strategic management.
• Advise on the principles of various strategic goals that organisations can adopt.
• Identify methods to be used in the process of analysing the external or macro
environment in which an organisation operates.

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QUESTION 1 [22 Marks]

Company ABC has enlisted your services as a business management consultant, as

they are struggling to win market share. After some analysis, you realise that they
need to achieve some type of competitive advantage i.e. they need to do something
better than their competitors, so as to attract clientele and thus increase their chances
of achieving a competitive advantage.

1.1 Identify the five (5) generic strategies that company ABC may pursue in order to
achieve a competitive advantage. (5 marks)

1.2 Based on further consultations with company ABC, it has become apparent that
the differentiation strategy is most likely to work for them. However, they are not clear
as to what this strategy entails. Briefly elaborate, to company ABC, on what the
differentiation strategy entails. (5 marks)

1.3 You have also discovered that, at company ABC, roles and responsibilities overlap
and are not clearly defined. In an effort to rectify the situation, highlight and discuss
the three (3) key role players in strategic management and their responsibilities. In
your discussion, you are also required to encompass how these key role players in
strategic management will add value to company ABC. (12 marks)

QUESTION 2 [15 Marks]

Read the following extract, and answer the question that follows:

A Manufacturer’s Strategy

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 The managers of a manufacturing business are trying to increase the business’s
operational efficiency to bring down expenses and increase profits – i.e. implements
a new strategy. Management chooses to introduce the most recent computer
hardware and enterprise resource planning software to the organisation.
Additionally, management allocates resources to improving the plant and equipment
and increasing the working hours of activity to make more items. In this model, the
business’s strategy is to increase operational effectiveness by 15 percent.
Management decides to make a few changes by investing in certain equipment and
implementing new policies such as changing the operating hours.

Fictional scenario

Task:
You have been appointed as a strategic consultant because the managers are unsure
whether their goals are strategically appropriate. After initial discussions, you decide
to get the managers to start thinking about strategic direction, by way of goal-setting.

Elaborate to the managers on the concept of what SMART goals entail. Provide an
example of each SMART goal, that relates to the business.
(5x3 marks each = 15 marks)

QUESTION 3 [40 Marks]

Read the following extract, and answer the questions that follow:

Is JUJO In Trouble?

Company JUJO imports nuts from the UK, which is a critical ingredient for their
manufacturing business. JUJO is a market leader in terms of its operational
efficiencies and technology adoption.

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 Due to recent global events, currency volatility has become a constant issue for
JUJO, even though demand for JUJO’s products has increased.

Further, the staff at JUJO have now started complaining that management needs to
adopt a more trusting stance versus their current ‘command and control style.

Fictional scenario

3.1 As an independent business observer, provide a brief SWOT analysis of the

company JUJO. Your analysis should also explain the concept/s of SWOT.
(16 marks)

3.2 JUJO’s manufacturing site is situated very close to a low-income community.

Further, after they wash their nuts, the water is then released into the river situated
alongside them.
Public responsibility is one of the six main areas to consider when (JUJO) is
formulating strategic goals. Analyse the business rationale/sense for this. (24 marks)

Use the rubric below to guide your answer:

0-7 8-15 16-24

JUJO’s • Knowledge of the • Fair to good • Excellent
manufacturing site theory poorly knowledge of knowledge of
is situated very demonstrated. theory is theory is
close to a low- • Inappropriate demonstrated. demonstrated.
integration of • An appropriate • Extremely
income
theory with integration of appropriate
community. business rationale. theory with integration of
Further, after they • Poor layout of a business rationale, theory with
wash their nuts, logical and justified which reflects a business rationale,
the water is then answer. fair to good which reflect well-
released into the • Originality is integration. thought-out-out
lacking in the • Fair to good lay- integration.
river situated
answer. out of a logical and
alongside them. justified answer.

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Public • There is a fair • Excellent layout of
responsibility is
one of the six
sense of originality a logical and
main areas to present in the justified answer.
consider when answer. • There is a good
(JUJO is) sense of originality
formulating
strategic goals. present in the
Analyse the answer.
business
rationale/sense
for this.

QUESTION 4 [23 Marks]

‘Any good business strategy must consider PESTLE’. Justify this statement, along with
a description of the concept. Do this by using an organisation or brand of your choice.
NOTE TO STUDENTS
Coca-Cola IS NOT TO BE USED as your chosen brand; if you use Coca-Cola,
you will be penalised.

[TOTAL: 100 MARKS]

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