Questions from previous tests

Question 1 [10 marks]

Read through the following scenario and then answer questions 1.1 – 1.2 that follow.

Abigail loves to entertain people. She opened her own guesthouse last year and her guesthouse
is considered to be one of the best guesthouses in her town. This success can be attributed to
two factors; daily 15-minute morning meetings Abigail has with her staff and an employee of the
month award. At the daily meetings the staff are informed about the tasks that need to be
performed for that specific day. The employee of the month award is given to the chosen
employee at a special lunch at the end of the month with a R500 cash voucher. This encourages
her employees to their best, because all of them wants to be the employee of the month and their
picture in the “hall of fame” at the guesthouse.

1.1 For a business to be successful a manager needs to use the fundamental/core

management functions as well as additional management functions.

1.1.1 In the scenario above, Abigail used various additional management functions to ensure
the success of her guesthouse. Identify two (2) additional management functions Abigail
uses in managing the guesthouse. Motivate your answers from the scenario.
[2 x (1 + 1) = 4]

1.1.2 Below you will find an incomplete diagram of the four fundamental/core management
activities. Redraw this diagram on your answer sheet and indicate the following:
1.1.2.1 The missing fundamental/core management activities (A – C). No explanation of the
fundamental/core management activities are needed.
[3 x 1 = 3]

1.1.2.2 The interaction between the fundamental/core management activities (D). (Hint: use
arrows)
[1]

1.2 It is important for a business to perform all activities in an effective and efficient way to be
successful. Although Abigail’s guesthouse is very successful, she still struggles to
understand the difference between these two concepts and contacted you as an EBUS
1514 student to help her out. Use a practical example and explain to Abigail the difference
between:
1.2.1 effectiveness and
1.2.2 efficiency
[1 + 1 = 2]

Question 2 [7 marks]

Tim recently joined their family business, a butchery, as the purchasing manager. He has to
ensure that all the meat that are sourced from the different farmers is of a high quality and that
the sales manager are aware of the stock levels in the business at all time. Michael is currently
the CEO of the butchery and wants to, within the next 5 years, expand the product range the
butchery is offering and enter new markets across South Africa.

2.1 Identify, from the scenario, the management level Tim is currently occupying.
[1]

2.2.1 Name the management skill Michael displayed in the scenario. Motivate your answer
from the scenario.
[1 + 1 = 2]

2.2.2 List any two (2) other management skills not displayed in the scenario by Michael.
[2 x 1 = 2]

2.3 The butchery needs to operate in an effective and efficient manner to be successful.
Explain to Tim and Michael the difference between being efficient and being effective. In
your answer, clearly indicate the term you are explaining.
[1 + 1 = 2]

Question 3 [8 marks]

Vodafone’s CEO, Nick Read told reporters that they have decided to pause further purchases of
Huawei products used in the core of Vodafone’s wireless networks. This happened after US
President Donald Trump’s administration has been pushing it’s European allies to block Huawei
from their telecoms networks, citing fears that China could use its equipment for spying,
something Huawei’s executives have denied. The effect of this decision on the South African
market is not immediately clear, but will be discussed in upcoming meetings with the UK-
headquartered Vodafone and South Africa’s Vodacom Group.
Adapted from : https://techcentral.co.za/sa-impact-unclear-as-vodafone-suspends-some-huawei-purchases/86897/

3.1 Identify one (1) management skill displayed in the scenario. Motivate your answer from
the scenario.
[1 + 1 = 2]

3.2 Identify one (1) resource (input) displayed in the scenario. Motivate your answer from the
scenario.
[1 + 1 = 2]

3.3 Name and explain any two (2) fundamental management functions businesses use.
[2 + 2 = 4]