FACULTY OF MANAGEMENT SCIENCES

DEPARTMENT OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT

MODULE : BUSINESS MANAGEMENT
SUBJECT CODE : BBMAX1A
ASSESSMENT : GROUP ASSIGNMENT
SUBMITION DATE : 25 MARCH 2022
INSTRUCTIONS : Use the cover page provided containing all the relevant
information such as subject and subject code. Only fill in the blank spaces containing
your surname and initials, student numbers, your Lecturer’s name and your e-mail
address.
The assignment should have a table of contents, which contain the questions asked and
page numbers. Typing should be done in 1.5 spacing on A4 paper. Font size is 12 Arial
or Times New Roman and justified on both sides. It is advisable to use a proper
numbering system for the assignment and to use it consistently.

HANDWRITTEN ASSIGNMENTS WILL NOT BE MARKED

Section A
Case Study: South Africa’s energy crisis – Inadequate power supply and production?
Eskom has the monopoly in electricity generation in South Africa. In the last few years,
Eskom has found itself in a position where the demand for electricity has exceeded the
available supply. In an attempt to manage the energy shortage and to meet demand,
Eskom used a last-resort measure that interrupted supply to certain areas of South
Africa. This was termed, “load-shedding”.
Eskom’s load-shedding programs reached climax in the first quarter of 2008, severely
affecting South Africa’s economy and productivity, especially in the manufacturing and
mining sectors and is an on-going trend since then. Load-shedding not only affected
businesses and industries, but it also had a profound negative effect on South African
households, and economy in general. During the load-shedding period, businesses and
also households invested in alternative energy supplies, such as solar power and
generators, while Eskom implemented a recovery project aimed at including power-
purchase programs and the instillation of energy- efficient technologies to address the
short-, medium and longer- term supply needs.
During the financial year that ended in June 2009, Eskom reported the biggest loss in
its history: R 9.7 billion. A tariff hike of 31.1% was granted to Eskom by the National
Emery Regulator of South Africa (NERSA). This has ever since increased the financial
burden on consumers substantially with jet another increase of 20% in 2022.

Instructions:
 Answer all the questions that follows.

1. Given the above scenario Identify and describe the three distinct organizational
environments. (6)
2. In which organizational environment is Eskom part of? Please motivate your
answer. (2)
3. Discuss any five external forces impacting on Eskom’s ability to supply
electricity.
(10)
4. Based on the case study content briefly analyze how Eskom’s current
situation can affect the South African economy. (3)
5. As Eskom holds the monopoly in electricity generation in South Africa, identify
and provide sufficient examples for the consequences of ineffective suppliers
as far as the task environment is concerned. (4)
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Section B
Instructions:
 Answer all the questions that follows.
Question 1:
Discuss why South Africa as a country has a scarcity of skilled workers, and how this
can be changed more especially in terms of education. Please motivate your answer by
providing examples to show your understanding. (15)

Question 2:
Covid-19 has affected the operation of many businesses worldwide.
2.1 As a business student which business sectors will be impacted the most by the
advent of the fourth industrial revolution in South Africa? (7)
2.2 What effect would this have on the South African economy? (3)
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