The Independent Institute of Education
2014
MODULE NAME:
MODULE CODE:
BUSINESS MANAGEMENT 1A
BMNG5111
ASSESSMENT TYPE: ASSIGNMENT (PAPER ONLY)
TOTAL MARK ALLOCATION: 100 MARKS
TOTAL HOURS: 10 HOURS
STUDENT NAME:
STUDENT NUMBER:
INSTRUCTIONS:
1.
No more than 25% of the assignment may be copied from original source(s) used, even if
referenced correctly.
2.
Make a copy of your assignment before handing it in.
3.
Assignments must be typed.
4.
All work must be adequately and correctly referenced.
5.
Begin each section on a new page.
6.
Follow all instructions on the assignment cover sheet.
7.
This is an individual assignment.
© The Independent Institute of Education (Pty) Ltd 2014
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The Independent Institute of Education
2014
Referencing Rubric
Providing evidence based on valid and referenced academic sources is a fundamental educational principle and
the cornerstone of high quality academic work. Hence, The IIE considers it essential to develop the referencing
skills of our students in our commitment to achieve high academic standards.
Poor referencing will result in a penalty of a maximum of 5 marks against the percentage mark awarded to a
student according to the following guidelines. Please note that this will not hold for assignments in which
referencing is not required.
Required
Subtract 1
Subtract 2
Subtract 3
Subtract 4
 Consistent, intext referencing
style
 Quotation
marks, page
numbers, years,
etc. applied
correctly
 Only one or two
minor mistakes
made
 All sources
academically
sound and
included in
reference list
 Accurate
recording of
references.
 Consistent in-text
referencing style
 Quotation marks,
page numbers,
years, etc. applied
correctly
 Fewer than five
minor mistakes
made
 More than 90% of
the sources are
academically
sound and
included in
reference list
 Mostly accurate
recording of
references.
 Consistent intext referencing
style
 Quotation
marks, page
numbers, years,
etc. not always
applied
correctly
 Not all
paraphrased
content
referenced
 At least 80% of
the sources are
academically
sound and
included in
reference list
 Generally
accurate
recording of
references.
 Consistent intext
referencing
style
 Quotation
marks used
for direct
quotes but
page numbers
missing
 Fewer than
50% of the
sources are
academically
valid
 Reference list
incomplete
 Inaccurate
recording of
references.
 Referencing
style
inconsistent
 Paraphrased
material not
referenced in
text
 Quotation
marks and/ or
page numbers
for direct
quotes missing
 Fewer than 25%
of the sources
are
academically
valid
 Reference list
incomplete.
Subtract 5
 Exceptionally
poor and
inconsistent
referencing
 None of the
sources
academically
valid.
© The Independent Institute of Education (Pty) Ltd 2014
Page 2 of 9
The Independent Institute of Education
2014
Section A
(Marks: 50)
Read the case study below and answer the questions that follow.
Johnson Matthey
Johnson Matthey is a leading global speciality chemicals company. Science and technology are embedded in
everything that it does. It has operations in over 30 countries and employs around 11,000 people. It was
founded in 1817 to refine and develop products using precious metals – something it still does today. As well as
creating precious metal containing products, it also recycles precious metals and manufactures many other
high technology products and chemicals. So, how does Johnson Matthey affect you? If you have ever travelled
in a car it is likely to have been fitted with a catalytic converter to reduce vehicle emissions. Johnson Matthey
produces catalytic converters for around a third of all cars manufactured in the world. This product has huge
environmental and health benefits for everyone through reducing pollution.
Its products aim to have a positive impact on society and the environment, values which are at the heart of
Johnson Matthey’s operations. It creates catalysts which help to control pollution in oil refining processes.
These catalysts speed up refining processes and help reduce the sulphur content of petrol, as sulphur is a major
pollutant.
Johnson Matthey operates in an industry driven by advancements in technology. To remain competitive the
company needs a highly skilled workforce to establish new and more efficient ways of meeting the challenges
faced by the industry. To be at the forefront of technological innovations the company requires people with
skills in STEM subjects (Science, Technology, Engineering and Maths) as well as skills in other areas. Johnson
Matthey offers many highly rewarding career opportunities for people that share the company’s commitment
to sustainability and the creation of a positive impact on society through its products. It offers first rate training
and development opportunities enabling employees to grow their careers with the company.
Since the 1970s more and more countries have passed laws to control air pollution. Poor air quality affects
peoples’ health, is bad for the environment and has other knock-on effects. For instance, poor health costs the
economy money directly through increased healthcare costs and indirectly in days missed from work. The
amount of potentially harmful emissions rises as the number of vehicles on the roads increases. Governments
set limits to reduce emissions from vehicles and to control what pollutants are legal, putting pressure on car
manufacturers. This means new technology is required to improve the efficiency of catalytic converters.
Johnson Matthey’s highly skilled research and development (R&D) teams develop this technology. Its
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2014
converters use chemistry to convert harmful pollutants in exhaust fumes into less harmful gases.
Countries often seek new investment to help their economies grow. As a result of the greater demand for
catalytic converters, Johnson Matthey needed to expand production in Europe. Its options were to expand
existing sites or build a new plant. After considering all the key factors, Macedonia was chosen for the new
site.
One way to attract investment into a country’s economy is through the level of tax that it requires companies
to pay. Governments can set tax to encourage certain businesses or types of business to operate in their
country. In the UK the government encourages innovation in technology-focused businesses. Tax credits are
given to businesses that invest in R&D to create new products and techniques, many of which can be exported
around the world.
The 2008 banking crisis, when many major banks failed, caused a fall in growth around the world because
companies could no longer obtain the loans they needed for investment. This recession meant a fall in demand
for many organisations’ products, including Johnson Matthey. Like many companies, Johnson Matthey looked
for ways to reduce costs. One solution was to increase efficiency. The company set targets to reduce the use of
natural resources and decrease waste through lean production techniques. Achieving these targets meant
Johnson Matthey reduced costs and became more sustainable. The benefits of this were two-fold – saving the
company money whilst at the same time conserving the planet’s valuable natural resources. As the world tries
to emerge from recession, Johnson Matthey’s focus on being more sustainable and manufacturing more
efficiently has improved its position beyond where it stood in 2008.
Johnson Matthey is keen to benefit from the high levels of economic growth in China. This growth has led to a
higher demand for cars in the country and a subsequent increased demand for catalytic converters. The
economic growth has also created a building boom, meaning greater demand for the plastics that the
company’s products help to produce. Rather than transport goods to China, Johnson Matthey has established
manufacturing plants in the country. Its presence in China provides a platform for further growth.
One part of Johnson Matthey’s business is linked to refining and recycling precious metals. 4% of its global sales
are in this market. It mainly extracts metals such as gold and platinum from redundant products and unwanted
jewellery and recycles them. The inputs in this model are the products that have reached the end of their
useful life, the outputs are the precious metals obtained. The amount of inputs available, and the value of the
outputs, changes as the price for these metals change. High prices mean more inputs, as customers are keen to
increase their returns. If prices fall, the amount of inputs will also fall. The financial performance of Johnson
© The Independent Institute of Education (Pty) Ltd 2014
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The Independent Institute of Education
2014
Matthey’s refining business is therefore dependent, in part, on the prices of precious metals.
As sustainability and protecting the environment are high on the public agenda, the need for products that do
the most good whilst taking as little as possible from the natural world increases. Johnson Matthey specialises
in products that benefit society and the environment. Johnson Matthey employs a high proportion of staff in
highly technical areas such as science and engineering. Its people are its greatest asset. However, it can be
difficult to recruit people with the skills and knowledge that the company requires. To address this issue
Johnson Matthey is trying to raise the awareness of young people to the excellent career prospects available to
students who study STEM subjects at school or college.
Technological change could cause problems for Johnson Matthey. If, for example, a new technology replaced
the internal combustion engine, catalytic converters may no longer be needed. Johnson Matthey is therefore
looking at alternative technology, for instance, using catalysts in fuel cells. This is a low carbon way to produce
electricity and could be an important source of power in the future. Johnson Matthey has made sure it is at the
forefront of such change by working with car manufacturers on fuel cell vehicles. It is also working on better,
more efficient batteries which could be used to power our cars, based on R&D advances. Johnson Matthey
actively uses new technology to reach its various stakeholders. These range from investors and customers to
potential new recruits. It tailors its message to each audience using digital media. Its website is constantly being
improved with the latest technology, including a mobile friendly version. For investors, there is a tablet based
app. It also uses key social media routes such as Twitter, Facebook and YouTube.
Johnson Matthey’s values centre on health and safety and developing sustainable, environmentally sound
products and processes. Johnson Matthey is focused on ‘doing the right thing’ with its products that aim to
have a positive impact on society and the environment. Cleaner air means fewer problems with pollution and
health issues such as asthma. Greater efficiency in fuel use and in chemical processes means fewer natural
resources are used. Its involvement in all aspects of the production process, from acquiring materials,
manufacturing, refining and developing technologies means that it positively improves the environment in all
aspects of its operations.
(Adapted from The Times 100 Business Case Studies: A Johnson Matthey Case Study.)
© The Independent Institute of Education (Pty) Ltd 2014
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The Independent Institute of Education
2014
Question 1
(Marks: 50)
Base your answers to the following questions on the above case study and the theory in your course material.
Q.1.1
There are three (3) distinct business environments namely the micro, market and macro
(20)
environment. Name the six (6) components or variables of the macro environment. With the
use of relevant examples from the case study provided, under each component, discuss the
factors in the macro environment that may affect Johnson Matthey. Note that in this case
study some components impact more than others.
Q.1.2
Considering the business environment that Johnson Matthey operates in, discuss the reasons
(6)
why they should conduct environmental scanning?
Q.1.3
Study how Corporate Social Responsibility (CSR) is explained as an umbrella term with three
(9)
(3) components in your textbook. Evaluate whether Johnson Matthey is practicing Corporate
Social Responsibility.
Q.1.4
Discuss five (5) key factors that should be considered when locating a new plant for Johnson
(10)
Matthey.
Q.1.5
Johnson Matthey is a public company. Discuss five (5) advantages of a public company.
(5)
Section B
(Marks: 50)
Question 1
(Marks: 20)
Although economic systems do not occur in a pure form, there are three main economic systems namely the
market economy, socialism and the command economy. Using the information in Chapter 1 of your textbook
answer the following questions.
Q.1.1
Discuss the three (3) main economic systems mentioned above.
(15)
Q.1.2
Indicate which system you believe South Africa is following. Motivate your answer.
(5)
© The Independent Institute of Education (Pty) Ltd 2014
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The Independent Institute of Education
2014
Question 2
(Marks: 30)
The state of entrepreneurship in South Africa is regarded as being below what is necessary to support a
consistently high level of economic growth. Write a short essay of 750-1000 words on the following topic:
“Discuss the challenges which entrepreneurs face in South Africa”
In your essay you should briefly comment on the state of entrepreneurship in South Africa and the importance
of entrepreneurship.
Sources of information
In order for you to answer this question you should read the relevant section in your textbook and consult the
article ‘Tracking SMME Development in South Africa: Issues of Finance, Training and the Regulatory
Environment’ by Professor Christian Rogerson published in ‘Urban Forum’ in 2008. Additional reading will be
beneficial and you are encouraged to consult additional academic and reputable publications in order to
enhance your answer. You should avoid general websites such as Wikipedia as these are not necessarily
reputable sources. Sources such as newspapers and magazines can be used but as their content is not always
accurate and reliable, they should support arguments based on academic references. You can access Professor
Rogerson’s article and other reputable sources via Ebscohost.
Recommended Readings:

Ashton, M. 2010. SA entrepreneurs need a Pikitup. Finweek, 22 July 2010 pp.16–19. (Available from
Ebscohost)

Rogerson, C. 2008. Tracking SMME Development in South Africa: Issues of Finance, Training and the
Regulatory Environment, Urban Forum, 19(1), March 2008. pp.61–81.

The entrepreneurial dialogues: State of entrepreneurship in South Africa, published by FNB in association
with the Gordon Institute of Business Science. (Available under supplementary module material on the
student portal)

Neiman, G and Nieuwenhuizen, C. 2009. Entrepreneurship: A South African perspective. Pretoria: Van
Schaik, 2nd edition, Chapters 1 and 2.
© The Independent Institute of Education (Pty) Ltd 2014
Page 7 of 9
The Independent Institute of Education
2014
Assessment
You will be assessed according to the categories below. Be sure to stay within the word limit as you will
penalised for exceeding it.
Criteria
Points for consideration

All main themes covered;

Substantiation of arguments;

Critical thinking and analytical skills.
Structure of answer

Focused introduction and conclusion;
and Clarity of writing

Logical and coherent flow through paragraphs;

Clear meaning of sentences;

Spelling, grammar and punctuation.
Content of answer
Marks
(25)
(5)
Total (30)
Writing Style
You should be aware that your essay should be written in an academic tone. The introduction should introduce
and set out the main issue or problems to be debated, it thus sets the scene. The body should be a sequence of
logical paragraphs outlining your argument. Headings can be used in the body but are not required. Finally,
your conclusion should summarise and draw conclusions from what you have discussed. No new information
should be presented in your conclusion. You should examine and seek to emulate (follow) the writing style in
academic papers that you encounter as you perform your research. In general, avoid long winded sentences,
rather use short and focussed sentences to make your points. Avoid using words that you do not fully
understand. Clear and simple writing is preferred to using complicated expressions. Finally, ensure your in-text
referencing and bibliography is correct by checking the referencing guidelines.
© The Independent Institute of Education (Pty) Ltd 2014
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The Independent Institute of Education
Criteria
Content of
answer
Structure of
answer and
Clarity of
writing
Question 2: Marking Rubric
Very weak
Poor
Acceptable
Not all the main
Not all the main themes
All main themes covered
themes covered.
covered. Answer tends to albeit some superficially.
Answer onefocus on one or two
Answer tends to focus on
dimensional focussed
sections only. Answer
one section at the
on only one area. Very lacks depth, analysis and
expense of others
superficial. No analysis does not consider
although all are
or attempt to consider alternative viewpoints.
mentioned. Limited
alternative viewpoints. Arguments are not well
analysis and synthesis
No substantiation of
substantiated.
present. Arguments are
arguments.
sometimes well
substantiated.
1 – 5 marks
6 – 10 marks
11 –15 marks
Both Introduction and Introduction and
Introduction and
conclusion not clearly
conclusion present but
conclusion present.
present. Ideas mixed
not effective. Ideas mixed Logical flow of paragraphs
between paragraphs
between paragraphs with although some jumping
with little logical flow. poor logical flow.
between ideas. Meaning
Sentences confused
Meaning of each sentence of each sentence is
with several spelling,
can be ascertained.
generally clear. Sentences
grammar and
Sentences often
are coherent with few
punctuation errors.
repetitive with several
spelling, grammar and
spelling, grammar and
punctuation errors.
punctuation errors.
1Mark
2 Marks
3 Marks
2014
Accomplished
All main themes covered.
May be a slight over focus
on a single area or side of
the debate. Analytical
skills evident but
alternative perspectives
may not be fully
synthesized. General
substantiation of
arguments good.
Excellent
All main themes presented
and well understood.
Answer well balanced and
demonstrates analysis and
synthesis. Arguments
logical and are well
substantiated.
16 – 20 marks
Clear Introduction and
conclusion present.
Logical flow of
paragraphs. Meaning of
each sentence is clear.
Sentences are coherent
with good spelling,
grammar and
punctuation.
21 – 25 marks
Focussed introduction and
conclusion. Logical flow of
paragraphs. Writing style is
clear and to the point.
Sentences well-structured
with good spelling,
grammar and punctuation.
4 Marks
25
5
5 Marks
[TOTAL MARKS: 100]
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