UNIVERSITY OF THE FREE STATE

EBUS 1514

DEPARTMENT OF BUSINESS MANAGEMENT

TEST 3: May 2018

ASSESSOR(S): 1. Mr. N Miya

2. Ms. A Van Noordwyk
3. Ms. E Van Tonder

MODERATOR: Ms. N Fernandes

TIME: 50 Minutes MARKS: 40

SECTION A (10 marks)

Answer question 1 to 10 by identifying the correct option and write it on your answer
sheet (e.g. 1A).

1. Shoprite is looking for a supervisor to manage day-to-day operations in the store. Which
level of management is Shoprite looking to fill?

a. Top management
b. Middle management
c. First-line management
d. Functional management
[1]

2. Middle managers operate at a/an:

a. Strategic level
b. Managerial level
c. Operational level
d. Functional level
[1]

3. Which one of the following options is not a business function?

a. Operational management
b. General management
c. Human resource management
d. None of the above
[1]

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4. The staffing process involves:

a. Recruitment
b. Maintaining labour relations
c. Orientation
d. A and C
[1]

5. All the economies in the world are subjected to economic trade cycle. Which of the
following options is not a component of the economic trade cycle?

a. Prosperity
b. Interest rate
c. Recession
d. Recovery
[1]

6. Which of the following can be identified as current assets?

a. Raw material
b. Shares
c. Furniture
d. None of the above
[1]

7. All the options below are part of the market environment except _______.

a. The market
b. Suppliers
c. Competitors
d. Business functions
[1]

8. Which one of the following options is not a component of the marketing mix?

a. Production
b. Property
c. Place
d. Promotion
[1]

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9. McDonalds adapts its menu to accommodate the tastes of different regions. Which type
of market segmentation did McDonalds use?

a. Geographic
b. Demographic
c. Behavioural
d. Psychographic
[1]

10. _______________ means manufactured products must be designed to conform to

specific norms or standards.

a. Obtaining and supplying information

b. Storage
c. Financing
d. Standardisation
[1]

SECTION B (30 marks)

Question 1 (7 marks)

How Donald Trump Used Social Media to Become the 45th President of the U.S.

Twitter: 24 million followers Facebook: 20.4 million followers

That’s the social media follower count for Donald Trump, the 45th President of the United
States of America, and his social media strategy was a key component of his victory.

Yes, that is how important social media is today. Even a Presidential election leverages the
power and reach of social media to get results. If the President understands the competitive
advantage gained by creating an active and engaging following, don’t you think your business
should become social media experts? The answer is YES!

Now, Trump stopped running his social media just before the actual election, but he was back
in control of them after winning. Trump claimed he was going to dial back his usage of Twitter
and Facebook when he became president, saying, “I’m going to be very restrained, if I use it
at all,” but we know that hasn’t been the case at all. He has created such a fuss over Tweets
and posts made that take jabs at people that don’t see eye-to-eye with his views or style.

There is no doubt in my mind that Mr. Trump will continue to use social media to get his
message out there, the same, if not more than he used it in the past. He understands that his
stage is much bigger using social media, and can get to the younger demographic almost
instantly. Remember years ago what would need to take place if the President wanted to
make an announcement to the world? They would broadcast it over the radio or interrupt TV
and broadcast into every household that had their television turned on. Well, social media
has a much more powerful reach than any other media channel.
Adopted from: http://www.serplogic.com/all-things-marketing/donald-trump-social-media. [Accessed 02 May 2018].

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1.1. From the case study, it is evident that Mr. Trump is very active on social media and he
uses it effectively to convey messages to his supporters. Mention one (1) type of social
media used by Mr. Trump. Motivate your answer from the case study.
[1 + 1 = 2]

1.2. Identify two (2) types of traditional mass media tools that were displayed in the case
study.
[2]

1.3. Identify three (3) characteristics of public relations.

[3 x 1 = 3]

Question 2 (11 marks)

Mojalefa Motaung completed his matric in 2010. Subsequently, he started working at Spur
where he was send to various workshops and training programs to acquire cooking skills. He
worked at Spur for five years as a chef and opened a savings account with ABSA to put his
money in the bank. Furthermore, he realised that he can use the skills and knowledge
acquired at Spur to start his own business. In 2015, Mojalefa resigned from Spur to start his
own chesa nyama business. From 2010 to 2015 he managed to save R60 000 and he needed
R100 000 to start a business. As such, he approached ABSA to borrow R40 000 and the
consultant processed his application. After a thorough background check, the consultant
informed him that he has a clean credit record. However, he does not have collateral to
guarantee the repayment of the loan. Mojalefa responded by saying he can use the house
his mother gave him as a collateral. Consequently, ABSA agreed to borrow him R40 000 to
start the business. In 2016 his business was booming and needed to employ four extra
employees in order to serve customer effectively and efficiently.

2.1. Mention two (2) types of finance Mojalefa used to start his business. Motivate your
answer from the case study.
[2 x 2 = 4]

2.2 When applying for funding, businesses can encounter problems.

2.2.1 Identify the problem Mojalefa encountered by referring to the case study.
[1]

2.2.2 Identify from the case study, how he overcame the problem identified in 2.2.1.
[1]

2.3. Spur sent Mojalefa to various workshop and training programs to acquire more
knowledge and skills with regards to cooking. Provide one (1) reason why training and
development is necessary for the empowerment of employees.
[1]

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2.4 Mojalefa wants to employ four additional employees in his business in order to serve
customers effectively and efficiently. However, he is not knowledgeable about HR
processes. Consequently, he approached you as an EBUS 1514 student to ask for your
advice about the recruitment and orientation of new employees in the business.

2.4.1 Identify two (2) internal recruitment methods Mojalefa can use in his business.
[2 x 1 = 2]

2.4.2 Explain two (2) things that Mojalefa must do within the first six months of
employment to enhance the effectiveness of the new employees.
[2 x 1 = 2]

Question 3 [4 marks]

Professor Mamokgethi Phakeng is the newly appointed vice-chancellor of the University of

Cape Town. Outgoing Vice-Chancellor Professor Max Price and Phakeng addressed the
media on Saturday after the university council made a unanimous decision. Phakeng said
she was “humbled” by the appointment, which takes effect on July 1, 2018. “My goal is to
transform the university while building on its excellence,” said Phakeng. She said that she
had always driven the transformation agenda in academic research. She did not take her new
position lightly. “It’s amazing that my appointment is a possibility,” said Phakeng. “There are
so many poor, African people who have walked this journey so that this can be possible. I am
honoured to continue this journey.

3.1. Identify the managerial level occupied by Prof. Mamokgethi Phakeng in UCT. Motivate
your answer from the case study.
[1 + 1 = 2]

3.2. List two (2) additional managerial functions that could help Prof. Mamokgethi Phakeng to
manage UCT successfully.
[2 x 1 = 2]

Question 4 [4 marks]

Former finance minister Malusi Gigaba announced that South Africa will see its first VAT rate
increase for the first time in 25 years. As of 1 April 2018, the effective VAT rate will rise from
14% to 15% adding approximately R22,9 billion to the fiscus, Gigaba said in his budget speech
on Wednesday.

4.1 Identify one (1) macro environment factor that could affect the performance/income of
businesses in South Africa. Motivate your answer from the scenario.
[1 + 1 = 2]

4.2 The macro-environment is influenced by the both the micro-environment and the market
environment.

Is the statement above true or false? Motivate your chosen answer.

[1 + 1 = 2]

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Question 5 [4 marks]

Julia graduated from UFS with a B.Com degree in accounting and she is employed at
Standard Bank in the middle line management position. She is planning to buy a new car,
however, before making a decision to buy it she has to take several things into consideration,
such as monthly instalment, car insurance and fuel price.

5.1 Identify the type of decision Julia has to make? Motivate your answer from the scenario.
[1 + 1 = 2]

5.2 Indicate any two (2) conditions that must be met for an exchange to occur.
[2 x 1 = 2]

Total = 40 marks

End of the paper

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