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MODULE CODE (PBA4805)

MAY/JUN 2023

(VALUE CHAIN MANAGEMENT)

STUDENT NUMBER
4 9 1 5 2 8 5 8

FULL NAME
PHINDILE HLATSHWAYO

IDENTITY NUMBER
9 1 0 9 0 7 0 1 8 5 0 8 7

Question Marks
No
Examiners Moderator
1 2 3

Total
Graduate School of Business Leadership
Examination Declaration of Honesty Form
▪ This declaration form must be personally completed by the candidate only.
▪ This form declares that the candidate commits to the University’s assessment policies and procedures applicable to this examination.
▪ Any candidate who fails to submit the declaration form will be deemed to not agree with the University’s assessment policies and as such will
not participate in the assessment.
▪ The completed form must be uploaded on the Moodle platform along with your examination.

CANDIDATE SURNAME HLATSHWAYO

CANDIDATE FULL NAMES PHINDILE


ID/PASSPORT NUMBER 9 1 0 9 0 7 0 1 8 5 0 8 7

STUDENT NUMBER 4 9 1 5 2 8 5 8

MODULE CODE P B A 4 8 0 5

MODULE NAME VALUE CHAIN MANAGEMENT

0 7 6 6 8 8 0 4 2 7
CONTACT DETAILS

DECLARATION
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• I am aware that the assessment date and time for __PBA4805_ (insert module code) is the _5_ of _JUNE 2023
(insert date) from 10:00_ to ___14:00__ (insert time).
• I undertake to comply with all the rules, regulations and policies of the University pertaining to this assessment.
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during the assessment period (May/Jun 2023).
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to me via the Moodle and to upload my answer sheets to the Moodle platform and that any late submission will
not be marked and will be graded at 0%.
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• I have read the Unisa’s Students’ Disciplinary Code, available at
https://www.unisa.ac.za/static/corporate_web/Content/Apply%20for%20admission/Documents/Unisa-Students-
Disciplinary-Code-25-April-2014.pdf
• I have read the Policy for Copyright Infringement and Plagiarism, available at
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giarism_policy_16nov05.pdf
• I know what plagiarism is, that plagiarism is wrong and that disciplinary steps can be taken against me if I am found
guilty of plagiarism.
• The ___PBA4805____ (module code) Exam that I submitted is my own work and I have not received assistance
and/or given assistance from/to any person in completing this assessment.
• I have independently and individually completed the assessment without copying work from any other person/s
• I have not allowed any other student to copy my work.
• I know that if I am found to be in violation of this declaration I will receive 0% for this assessment and that Unisa
may investigate further and institute disciplinary action against me.

CANDIDATE
SIGNATURE

DATE 05 JUNE 2023


QUESTION 1

Financial institutions have a number of tools at their disposal to artificially pump up or deflate the
worth of a currency as seen by the search engine result. Some instances are:

To devalue its currency a nation will market its very own currency, and also obtain international
money, mainly U.S. dollars; Based on the concepts of supply, as well as need the country involving
in the manipulation decreases need for its own currency while rises need for foreign currencies. The
commission says manipulating South Africa's money "has a substantial result on financial activity,
specifically international trade, and also global monetary purchases". The manipulations effected on
the exchange price of the rand which consequently influenced the South African economic situation
- consisting of imports, as well as exports international straight financial investment public, as well
as private debt business annual report with the consequent ramifications for the price of products,
and services, as well as monetary assets. A 1% modification in the fair worth of the dollar/rand rate
may lead to a $1 billion modification of the worth of imported, and exported products, and also
solutions. If the rand deteriorates everything imported comes to be a lot more expensive. South
Africa is especially dependent on the rand since we import a lot of our oil, as well as have to acquire
it in dollars; The rand oil cost influences transport prices, therefore almost all customer costs. The
value chain diagram explains how rand manipulation affects the importing and exporting of goods in
South Africa.
Primary Activities:
Michael Porter’s value chain depiction offers a comprehensive structure to check out the jobs, and
additionally, procedures included in the development of worth within an organization. We can adjust
this structure to explain how Rand manipulation affects the importing, as well as exporting of goods
in South Africa;

1. Inbound Logistics: In the context of importing things Rand manipulation can increase the
expense of imported resources or inputs influencing the scheduling, as well as cost of essential
sources for production which can influence the price of obtaining basic materials or intermediate
inputs from international nations. A weak Rand emerging from change can raise the cost of imports
influencing the inbound logistics treatment by boosting the costs connected with transportation,
individualized duties, along with various other linked expenses.

2. Operations: Operations which refer to the jobs involved in changing inputs right into the end
product (outputs) or solutions. The rand manipulation can affect the price of manufacturing inputs
such as standard materials power, and labour which can result in the production of the product being
expensive causing the manufacturers to produce less of the product, thus creating a supply shortage
for the exported goods to other countries at the end. If the Rand deteriorates as a result of adjustment
the expenditure of imported production inputs may raise perhaps influencing the efficiency, as well
as also the cost-effectiveness of the procedures associated with generating items for export.

3. Outbound Logistics: Outbound logistics defines the procedures related to providing finished
product to customers. Expense fluctuations because of Rand modification can affect the efficiency,
and success of manufacturing tasks perhaps impacting the competition of exported products. Rand
control can impact the expense of outgoing logistics being composed of transportation warehousing,
as well as flow. If the Rand's value is manipulated, as well as jeopardized the rate of exporting things
might reduce making outbound logistics a lot more budget-friendly, and likewise possibly increasing
export competition.

3. Marketing and Sales: Advertising and sales activities entail advertising and offering products to
consumers. Rand manipulation can impact the affordability and prices of exported items, affecting
the advertising, marketing, and sales techniques of firms involved in the international profession.
Rand adjustment can additionally impact the advertising, as well as sales efforts of exporting
businesses in South Africa. A weaker Rand resulting from manipulation can make exported goods
extra inexpensive for international purchasers, possibly increasing demand and offering a
competitive advantage in worldwide markets.

4. Services: Rand adjustment can indirectly impact the arrangement of after-sales service for
exported products. For instance, if the Rand is damaged as a result of control, it may enhance the
expense of imported extra components or upkeep services needed for exported items. Rand
manipulation can indirectly impact the provision of after-sales service for exported goods.
Support Activities:

This is how certain elements within the support activities of a value chain could potentially enable
or facilitate Rand manipulation.

1. Firm Infrastructure:

Within the support activities of the value chain, firm infrastructure refers to the organizational
structure, management systems, and processes that support the entire organization. In the context
of Rand manipulation, weaknesses or gaps in the firm infrastructure could potentially create an
environment where such manipulative activities can occur. For instance, a lack of robust regulatory
oversight, weak internal controls, or insufficient governance mechanisms may make it easier for
banks to engage in currency manipulation. The SA government played part in the rand
manipulation by not putting the correct systems in place thus resulting in fluctuation of the interest
rates which can negatively affect the producer and customer welfare as producers cannot
manufacture and export enough product to ensure equilibrium, and customers may not be able to
afford the product and may look for substitutes within the market which can cause other countries
to source products from other countries that are selling their products for cheaper.

2. Human Resource Management: Human resource management involves activities related to


recruiting, training, and retaining a skilled workforce. While it may not be directly related to Rand
manipulation, but the people involved in currency trading and decision-making within financial
institutions or central banks play a crucial role in influencing exchange rates. Therefore, ensuring
the appropriate expertise, knowledge, and ethical standards within these roles becomes important
in preventing or detecting manipulative practices.

3. Technology Development: Technology development encompasses activities related to


innovation, research, and development within an organization. In the context of Rand manipulation,
advancements in technology can potentially enhance the ability of financial institutions to execute
manipulative trades rapidly and with precision. Sophisticated trading platforms, algorithmic trading
systems, and data analysis tools could be leveraged to engage in manipulative activities. Rand
manipulation can also affect companies not to afford to purchase state-of-the-art technology to
increase operations within the companies.

4. Procurement: Procurement activities involve sourcing and acquiring goods and services required
for the organization's operations. While not directly related to Rand manipulation, the procurement
process may indirectly impact the manipulation activities. For example, if certain suppliers collude
or provide illicit information, they could enable or support manipulative activities within the financial
sector. Also, the importing of input products will be more expensive which could result in companies
decreasing the manufacturing of products affecting the output. This will have a negative effect on
the demand and supply side for all products that are being exported to other countries.
A decrease in production, an increase in the unemployment rate, a decrease in the turnaround of
manufacturing of products, and an increase in the costs of the output products, which results in a
lower margin, can be the result of rand manipulation. This can cause the coordination and
optimization of the manufacturing of import and export of products to be weak and inefficient
because they will not align with each other, which can result in reduced production of exported
goods to international markets which can negatively affect the South African economy.

Question 2
A well-balanced scorecard (BSC) is a way to measure how well a measure fits in with the most
important business plans. Balanced scorecards are often used during strategic planning to make
sure that the company's goals are in line with its overall strategy and vision. The diagram below
shows the different points of view and how they all work together to reach the task goals of minerals
beneficiation. It is pointed out that the financial perspective, the user perspective, the internal
processes perspective, and the learning and growth perspective are all important to the success of
the project, as is the goal of importing less finished goods made from raw mine materials.

1. The financial perspective emphasizes the project's economic significance. By lowering the value
of imported finished items created from the country’s raw mining minerals, DRC Congo being one of
the countries that are rich in minerals in Africa may reduce its dependence on foreign products and
preserve more value in the domestic economy. Value-added exports boost export revenue and
economic development. Improving beneficiation process cost-efficiency and revenues ensures long-
term sustainability and stability.

2. Customer Perspective: This perspective prioritizes customer needs and expectations.


Enhancing competitiveness and value-added product quality can help the DRC Congo compete in
global marketplaces. This involves meeting international standards and customer demands for
value-added products. Customer satisfaction increases demand and market share by building
connections with overseas consumers.

3. Internal Processes Perspective: This perspective emphasizes value-added product delivery.


Optimizing extraction and beneficiation processes maximizes resource use and reduces waste.
Partnering with countries that are technologically ahead of Congo to provide the country with
technology and innovation in value-added mineral processing which will allow the country to increase
output, quality, and consistency. Quality assurance and guarantee methods ensure value-added
goods meet strict standards, increasing market acceptance.

4. Learning and growing viewpoint: The discovering and growing viewpoint emphasizes human
capital framework, innovation, and continuous improvement. The country improves its removal and
beneficiation processes by investing in R&D. Setting up the skills and abilities of the workforce makes
sure that they can adapt to new processing technologies and help with work performance. Fostering
a culture of continuous improvement helps researchers keep looking for new ideas, methods, and
plans to make the refining process better.

By thinking about and matching goals from each point of view, the minerals processing project could
reduce the number of finished goods made from raw mining minerals that are imported. Because of
this, it is important that everything is connected. If extraction and beneficiation get better, the
standard of value-added products, customer satisfaction, and foreign sales may all go up which will
have a positive effect on the economy of DRC Congo. Through technology breakthroughs, research
and development may also help reduce costs and boost the economy. The BSC diagram shows
these connections clearly and leads the nation's resources refining project to get the most out of
mining and help the economy grow.

Question 3

Limitations or rather constraints in the way minerals are processed in African countries can
negatively affect their long-term economic growth and development. Some the constraints of
extraction and mining mineral beneficiation from African countries have been identified.
Limited Infrastructure:

Constraint: Lack of infrastructure, such as transportation networks, energy supplies, and access to
water, can make it harder to get materials out of the ground, process them, and move them around.

Recommendation: Allocate money for infrastructure development to improve the link and reliability
of transportation networks, increase the ability to make and move power, and make water sources
easier to get to. This will make it easier for materials and goods with extra value to move through the
supply chain in a smooth way.

Lack of Technological capabilities:

Constraint: African countries not having enough access to new technologies and not knowing how
to use them can make it hard to use refining processes that work well and last.

Recommendation: African countries should consider approaching global partners to share


technology and work with them in order to get advanced mining and refining technologies. Investing
in research and development to enhance growth and improve the technical skills of the area can be
beneficial. Create partnerships between universities, businesses, and research groups to help
people learn from each other and improve their skills.

Access to funding is limited:

Constraint: Mineral processing can result in jobs not growing or getting bigger if there isn't easy
access to financial options and money for investments.

Suggestion: Make economic systems and organizations that focus on providing funding and funding
choices that are suited to the mining and processing markets. Encourage public-private relationships
to bring in more money and share the risks that come with big jobs. Strengthen the way rules are
made and enforced to make sure they are clear and to attract direct investment from other countries.

Inconsistent Policy and Regulatory Environment:

Constraint: Regular policy changes about unpredictability and bad mining laws can make it hard to
invest in ore processing projects that will last for a long time.

Referral: Create clear and stable plan frameworks that give investors confidence and a sense of
what to expect. Encourage a collaborative approach that includes business partners, government
agencies, and local communities in policy development and decision-making. Set up long-lasting
governing systems to make sure that social and environmental standards are met.

Limited Access to Markets:

Constraint: This is a problem because having limited access to markets and relying on only a few
export markets can make African countries subject to price and demand shocks.
Recommendation: Grow foreign markets and focus on new economies with a growing need for
mining products with extra value. Join regional trade agreements to get entry to bigger markets in
Africa. Develop ways to sell goods with extra value and make them more competitive on the market
through branding and difference.

Impacts on both the economy and the environment:

Constraint: Social and environmental problems that can't be fixed because of mining operations can
hurt plans for sustainable growth.

Recommendation: Use mining methods that are responsible, long-lasting, and focused on
environmental management, social integration, and community growth. Foster meaningful
interactions with local groups and make sure that benefits are shared fairly. Spread the word about
improving people's skills and educating them so that they can help with the ore processing process
and benefit from it.

Dealing with these constraints and taking the steps to implement the recommendations that are
suggested will require cooperation and commitment from different parties, such as the government,
economic sector groups, and growth partners in different areas. By overcoming these problems,
African countries can achieve long-term economic growth, as well as growth through the mineral
beneficiation process, which maximizes the value of their mineral resources and creates jobs, value
increases, and opportunities for technological growth.

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