MNE3702/101/3/2020
Tutorial Letter 101/3/2020
CORPORATE ENTREPRENEURSHIP
MNE3702
Semesters 1 and 2
Department of Applied Management
This tutorial letter contains important information
about your module.
BARCODE
CONTENTS
Page
1
INTRODUCTION .......................................................................................................................... 4
2
PURPOSE AND OUTCOMES ...................................................................................................... 4
2.1
Purpose ........................................................................................................................................ 4
2.2
Outcomes ..................................................................................................................................... 5
3
LECTURER(S) AND CONTACT DETAILS................................................................................... 7
3.1
Lecturer(s) .................................................................................................................................... 7
3.2
Department ................................................................................................................................... 7
3.3
University ...................................................................................................................................... 8
4
RESOURCES ............................................................................................................................... 9
4.1
Prescribed book(s) ........................................................................................................................ 9
4.1.1 Other resources ............................................................................................................................. 9
4.2
Recommended book(s) ............................................................................................................... 10
4.3
Electronic reserves (e-reserves) ................................................................................................. 10
4.4
Library services and resources ................................................................................................... 10
5
STUDENT SUPPORT SERVICES .............................................................................................. 11
Contact with fellow students ............................................................................................................... 11
6
STUDY PLAN ............................................................................................................................. 11
7
PRACTICAL WORK ................................................................................................................... 12
8
ASSESSMENT ........................................................................................................................... 12
8.1
Assessment criteria..................................................................................................................... 12
8.2
Assessment plan ........................................................................................................................ 12
8.3
Assignment numbers .................................................................................................................. 14
8.3.1
General assignment numbers ..................................................................................................... 14
8.3.2
Unique assignment numbers ...................................................................................................... 14
8.4
Assignment due dates ................................................................................................................ 15
8.5
Submission of assignments ........................................................................................................ 15
8.6
The assignments ........................................................................................................................ 15
The use of the mark-reading sheet (not preferred): ........................................................................... 16
The use of case studies ....................................................................................................................... 16
Plagiarism ............................................................................................................................................. 17
Extensions for assignments ................................................................................................................ 17
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MNE3702/101/3/2020
Feedback on assignments ................................................................................................................... 17
8.7
Other assessment methods ........................................................................................................ 17
8.8
The examination ......................................................................................................................... 17
9
FREQUENTLY ASKED QUESTIONS ........................................................................................ 18
10
IN CLOSING ............................................................................................................................... 18
11
ADDENDUM A ........................................................................................................................... 19
12
ADDENDUM B ........................................................................................................................... 31
13
ADENDUM C ............................................................................................................................. 39
3
1 INTRODUCTION
Dear Student
Welcome to the module on Corporate Entrepreneurship (MNE3702). We trust that you will find it
interesting and useful in your present and future careers.
Corporate Entrepreneurship has been and is becoming increasingly more important for both international
and South African businesses in pursuit for growth and competitiveness. More and more companies
seek to expand their business activities through innovation and management practices that support the
development of innovation, in a sustainable manner. Corporate Entrepreneurship is not a new subject,
but there are new factors to consider as the South African marketplace seeks to transform itself. In this
module we will focus on the factors that enable a business to maintain an entrepreneurial orientation.
You will receive a number of tutorial letters during the semester. Please read these immediately and
carefully. A tutorial letter is our way of communicating with you. This tutorial letter contains information
about tutorial material, lecturer details, assignments and examinations. Keep it on hand when studying
this module, completing the assignments and preparing for the examination.
2
PURPOSE AND OUTCOMES
2.1
Purpose
This module (also referred to as a unit standard) will be useful to people who are working within a large
corporate environment. Learners will be empowered with the necessary competencies (knowledge,
values and skills) to be entrepreneurial at different levels of management in a corporate environment.
Successful learners will be able to act as change agents, ensuring that business entities not only have
the competitive edge through new products, services and processes, but are also more effective and
efficient. Entrepreneurial companies will contribute to employee satisfaction and retention. The challenge
for companies is not only survival but continued market dominance. Students credited with this unit
standard will have developed their entrepreneurial skills so that they have the potential to become
efficient and effective employees and managers in an ever-changing business environment.
Below you will find the assessment criteria for each of the specific outcomes of this module. The
assessment criteria refer to aspects of the syllabus that will be assessed in the assignments and the
examination. The assessment criteria will be assessed in different ways in the assignments and the
examination.
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MNE3702/101/3/2020
2.2
Outcomes
SPECIFIC OUTCOME 1
Analyse the nature of corporate entrepreneurship.
Assessment criteria
1.1
Understand the impact of the changing environments.
1.2
Explain the key components in deriving competitive advantage.
1.3
Compare and contrast the concepts of entrepreneurship and corporate entrepreneurship.
1.4
Analyse the life cycle stages of companies with regard to issues that inhibit corporate
entrepreneurship.
1.5
Understand the entrepreneurial process.
1.6
Identify the ways corporate entrepreneurship manifests itself in the company.
1.7
Examine the dimensions of corporate entrepreneurship.
1.8
Evaluate entrepreneurial intensity in companies.
1.9
Distinguish between the various forms of corporate entrepreneurship.
SPECIFIC OUTCOME 2
Determine how creativity and innovation can be implemented by the corporate entrepreneur.
Assessment criteria
2.1
Outline the importance of creativity for the entrepreneurial company.
2.2
Examine the creative process and comment on how the organisation can develop new creative
ideas for products and services.
2.3
Understand the creative blocks that prevent people from being creative.
2.4
Analyse the characteristics of a corporate entrepreneur.
2.5
Examine the critical roles in corporate entrepreneurship.
SPECIFIC OUTCOME 3
Evaluate the corporate strategy in terms of the extent to which it encompasses entrepreneurship and the
development of innovation.
Assessment criteria
3.1
Distinguish between entrepreneurial strategies and strategies to achieve entrepreneurship.
3.2
Comment on factors that contribute to a well-conceptualized entrepreneurial strategy.
3.3
Describe how innovation can be managed.
3.4
Determine the roles both strategy and technology play in the entrepreneurial company.
5
SPECIFIC OUTCOME 4
Develop an organisational environment that supports entrepreneurship.
Assessment criteria
4.1
Evaluate organisational structure and suggest how it can be more conducive to the development
of corporate entrepreneurship.
4.2
Describe the different types of structures in the company.
4.3
Analyse how the human resource management function can support the entrepreneurial
initiatives of the company.
4.4
Describe the role of reward systems in motivating entrepreneurial behaviour.
4.5
Analyse the culture in a company.
4.6
Describe the elements of organisational culture that support corporate entrepreneurship.
SPECIFIC OUTCOME 5
Sustain corporate entrepreneurship into the future of the company.
Assessment criteria
5.1
Analyse the obstacles to corporate entrepreneurship.
5.2
Determine how the obstacles can be overcome.
5.3
Contemplate the ethical dilemma in the entrepreneurial organisation.
[RANGE: The ethical dilemma includes, but is not limited to, the dilemma between the corporate
innovator and the rogue manager.]
5.4
Explain the roles that the top, middle and lower-level managers play in leading the
entrepreneurial company.
5.5
Develop a corporate venture plan for the company.
5.6
Determine how entrepreneurial activities can be measured and assessed in a business.
[RANGE: Entrepreneurial activities include individual entrepreneurial projects and entrepreneurial
activities of the organisation as a whole.]
5.7
Critically discuss how control can hinder entrepreneurial initiatives in the organisation.
5.8
Explain how control activities can be more conducive to entrepreneurship.
5.9
Describe the disadvantages of being a corporate entrepreneur and the negative personality traits
of corporate entrepreneurs.
5.10
Identify and manage triggering events.
5.11
Understand
the
entrepreneurship.
6
importance
of
creating
urgency
in
the
business
around
corporate
MNE3702/101/3/2020
3
LECTURER(S) AND CONTACT DETAILS
3.1
Lecturer(s)
The primary lecturer for this module is W Sambo and the secondary lecturer is Mrs S Radebe.
E-MAIL
PRIMARY LECTURER
SECONDARY LECTURER
sambow@unisa.ac.za
radebes@unisa.ac.za
All queries relating to the academic content of this module should be directed to the primary
lecturer or to the secondary lecturer if the primary lecturer is not available. Queries with regards
to administration, assignments and examinations should be addressed to the relevant
department.
Important:
Always add the module code and your student number in the subject line of all emails to UNISA.
3.2
Department
The Department of Applied Management.
The Department can be contacted as follow:
E-mail: DESTTL@unisa.ac.za.
Section Head contact details:
SECTION HEAD: ENTREPRENEURSHIP
E-MAIL
RadebeS@unisa.ac.za
LECTURER AVAILABILITY
The lecturer for this module will be available to take phone calls on academic matters and/or to
attend to students who may prefer to visit personally for academic engagement. However,
emails remain my preferred communication channel, If you need a telephonic conversation or a
visit please advise me first via email and also give me a background of your needs so that I can
prepare myself and help you to the best of my ability. These days and times of my availability
are subject to change from time to time in order to accommodate the lecturer’s work schedule
and other commitments. Therefore appointment is important.
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3.3
University
To contact the university, you should follow the instructions in the Study@Unisa brochure.
Remember to have your student number available when contacting the university.
Physical address
Preller Street
Muckleneuk
Pretoria
City of Tshwane
University of South Africa
Postal address
Directorate: Student Admissions and Registrations
University of South Africa
P O Box 392
Unisa
0003
If you are experiencing difficulty in getting a prompt response to your queries, you may use the
contact details of your query that are provided in the schedule below; alternatively send the
details of your query to the student help desk. Please check the list carefully and send an
enquiry to one email address at a time. This will ensure that there is no confusion as to who
must respond. This arrangement is being implemented as a further measure to improve the
quality of assistance and support we provide to current and prospective students. Through
surveys, Unisa continually assesses the quality of service provided to students, with a view to
improving its strategies.
A number of administrative processes aimed at facilitating fee payments, and clarifying and
making available information about examinations including examination timetables - are
available on the following platforms:
UNISA website
http://www.unisa.ac.za & http://mobi.unisa.ac.za
All study-related information is now available on the new UNISA corporate
website in both web and mobi formats
Internet
https://my.unisa.ac.za/portal & https://my.unisa.ac.za/portal/pda
Students can access their own information via the myUnisa website or mobi
site
E-mail
info@unisa.ac.za for general enquiries
study-info@unisa.ac.za for application and registration related enquiries
(prospective and registered students)
assign@unisa.ac.za for assignment enquiries
exams@unisa.ac.za for examination enquiries
despatch@unisa.ac.za for study material enquiries
r for student account enquiries
gaudeamus@unisa.ac.za for graduation enquiries
myUnisaHelp@unisa.ac.za for assistance with myUnisa
myLifeHelp@unisa.ac.za for assistance with myLife email accounts
Add module code and student number to subject line of all emails.
SMS
8
The SMS numbers are only for students residing in South Africa.
International students are urged to make use of the e-mail address
MNE3702/101/3/2020
info@unisa.ac.za.
43578 for applications and registrations
43584 for assignments
43584 for examinations
43579 for study material
31954 for student accounts
43582 for myUnisa and myLife.
Fax
+27 (0)12 429 4150
Students will be able to fax their enquiries to this number, after which the
enquiries will be directed to and processed by the relevant department.
Physical
address
University of South Africa
Preller Street
Muckleneuk
Pretoria
Postal address
University of South Africa
PO Box 392
UNISA
0003
4 RESOURCES
4.1
Prescribed book(s)
Morris, MH, Kuratko, DF & Covin, JG. 2011. Corporate Innovation and Entrepreneurship. 3rd
Edition. Canada: South-Western, Cengage Learning
NB: You will need the prescribed textbook to complete both assignments and to prepare for the
examination. All the assessment questions for the assignments and the examination are
compiled directly from the prescribed textbook.
Please refer to the list of official booksellers and their addresses in the Study@Unisa brochure.
The prescribed book can be obtained from the university's official booksellers. If you have
difficulty locating the book at these booksellers, please contact the Prescribed Books Section at
012 429 4152 or e-mail vospresc@unisa.ac.za.
4.1.1 Other resources
It is very important that you log into myUnisa regularly in order to access all the study material.
We recommend that you should do this at least every week or every 10 days to check for the
following:

Tutorial Letters. This will provide you with the necessary study material and information
regarding your assignments.

Check for new Announcements. You can also set up your myLife email so that you
receive the Announcement emails on your cell phone.
9

Do the Discussion forum activities. For every unit in this module, we want you to share
with the other people in your group in the activities. You can read the instructions here
and even prepare your answers but you need to go online to post your messages.
We hope that this system will help you to succeed in this online module by giving you extra
ways to study the materials and practice with all of the activities and assignments. At the same
time, you MUST go online in order to complete the activities and assignments on time - and to
get the most from the online course.
Remember, the printed support materials are a back-up to everything that is found online, on
myUnisa. There are no extra things there. In other words, you should NOT wait for the
Printed support materials to arrive to start studying.
For library service request procedures (listed below), please consult the Study@Unisa
brochure.
4.2
Recommended book(s)
None for this module.
4.3
Electronic reserves (e-reserves)
E-reserves can be downloaded from the Library catalogue. More information is available at:
http://libguides.unisa.ac.za/request/request
4.4
Library services and resources
The Unisa Library offers a range of information services and resources:


for detailed Library information go to
http://www.unisa.ac.za/sites/corporate/default/Library
for research support and services (e.g. personal librarians and literature
search services) go to
http://www.unisa.ac.za/sites/corporate/default/Library/Libraryservices/Research-support
The Library has created numerous Library guides:
http://libguides.unisa.ac.za
Recommended guides:





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Request and download recommended material:
http://libguides.unisa.ac.za/request/request
Postgraduate information services:
http://libguides.unisa.ac.za/request/postgrad
Finding and using library resources and tools:
http://libguides.unisa.ac.za/Research_skills
Frequently asked questions about the Library:
http://libguides.unisa.ac.za/ask
Services to students living with disabilities:
http://libguides.unisa.ac.za/disability
MNE3702/101/3/2020
5 STUDENT SUPPORT SERVICES
The Study @ Unisa brochure is available on myUnisa: www.unisa.ac.za/brochures/studies
This brochure has all the tips and information you need to succeed at distance learning and,
specifically, at Unisa.
Contact with fellow students

Study groups
It is advisable to have contact with fellow students. One way of doing this is to form study
groups on myUnisa.
Predatory providers of classes and examination support
Please be aware of the existence of multiple fraudulent and predatory providers of classes and
examination guidance to Unisa students. Please note that Unisa does not have agreements
with any of these agencies/schools/colleges to provide tuition or support to our students. Unisa
also does not provide these predators with study material, guidelines or your contact
information. These providers may not have the necessary expertise to assist you and often
charge exorbitant fees. If you receive an invitation from any agency or college, it is best to
confirm with your lecturer if the provider is a legitimate Unisa partner.
6 STUDY PLAN
Since this is only one of the many modules that you might have registered for, you will have to
schedule and plan your time this year in order to eventually complete this diploma successfully.
We all have different learning styles and preferences. However, consider the following
guidelines:







You must allocate time to work through each study unit and do the activities.
Allow extra time for work that seems difficult or work with which you are experiencing a
problem.
You must give yourself time for personal responsibilities (family responsibilities, work
obligations, social obligations, leave) when compiling a study plan.
Make use of your most productive time for studying (late evening after the children have
gone to bed or early morning before the rest of the family wakes up).
Remember that it is more effective to study for one hour on a regular basis (every day)
than for ten consecutive hours every second week. Decide how many hours you are
going to spend on your studies each week. We recommend that you put one to two hours
aside each day.
Keep a record of your progress. It will be gratifying to see what you have accomplished,
and it will inspire you if you fall behind. Be prepared for disruptions to your study
programme due to unforeseen circumstances. You should therefore, monitor your
progress so that you can catch up immediately if you fall behind. Remember that it is
easier to catch up on one week's lost hours of work than an entire month’s work.
Examination dates are subject to change, which means that you will have to adapt your
study plan accordingly if any changes occur.
11
The textbook is the framework for what we will cover during the semester. Work through it from
the beginning, one chapter at a time. The following is a recommended schedule, which you may
use as a guideline for studying this module:
Activity
Hours
Reading of relevant chapters in the prescribed book
40
Doing the activities in the textbook
10
Doing the assignments
10
Studying the prescribed book
50
Final revision
10
TOTAL
120
You can also use the electronic schedule on myUnisa or the study plan document in the
brochure, Study@Unisa, to compile a comprehensive plan for all your modules if you prefer.
Your approach to studying this module should start with understanding the learning outcomes.
Then you will need to master the key concepts listed in the prescribed textbook to achieve the
learning outcomes for this module.
7 PRACTICAL WORK
There is no practical work for this module.
8 ASSESSMENT
8.1
Assessment criteria
Please familiarise yourself with the outcomes of this module.

Alternative assessment to assist students who qualify for final year concessions.
The Study@Unisa brochure contains important information on the final year concession
procedure to assist students with one or two modules that are outstanding. The Department of
Examination Administration (DEA) will inform all students who qualify for a final-year (FI)
concession via an SMS and/or email.
Alternative methods of assessment are subject to stringent academic rules and processes and
should not be considered an easier option. Failure to meet the learning outcomes of the module
through the alternative method of assessment will result in a fail and you will need to re-register
for the outstanding module.
8.2
Assessment plan
The year mark (the weighted mark of the two assignments) will contribute a maximum of 20% to
the final assessment mark for the module, while the examination mark will contribute 80%.
Assignment 01 has a weight of 10% towards your year mark and assignment 02 a 90%
weighting. Irrespective of the year mark obtained, a subminimum of 40% must be obtained in
the examination.
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MNE3702/101/3/2020
You will therefore not pass the module if your examination mark is less than 40%. In addition, if
your examination mark is less than 40%, your year mark will not be used in the calculation of
your final assessment mark. The examination mark will be the final assessment mark in this
instance. Please study the following examples to see how your assignment marks will contribute
to the final assessment mark:
Example 1: Assignment 01 has not been submitted or was submitted after the due date
Important:
You will be admitted to the examination if Assignment 01 or 02 was submitted before or on the
due date. However, BOTH assignments count towards your final mark.
Assessment
% obtained
Assignment 01 (MCQ)
Not submitted
Assignment 02 (Written)
100%
Year mark
Examination mark
Multiplier
Mark
0.2
No admission
0.8
Final assessment mark
Example 2: Both assignments were submitted but 0% obtained for both
Important:
Without assignment marks the pressure to obtain 62% for the examination can lead to very
stressful situations. You are advised to submit both assignments on time and to put in adequate
effort to obtain 50% and more for both assignments. If you get an assignment mark of 0% for
both assignments, you would have to obtain 62% in the examination to pass as this percentage
is multiplied by 0.8 which equals 49.6% (50%), your final assessment mark.
Assessment
% obtained
Assignment 01 (MCQ)
0%
Assignment 02 (Written)
0%
Year mark
Examination mark
Final assessment mark
Multiplier
Mark
0%
0.2
0%
62%
0.8
49.6%
50%
Example 3: Both assignments submitted but achieved less than 40% for the examination
Important:
If the examination mark is below 40%, the year mark will not be used in the calculation of the
final assessment mark. In the scenario below the student will fail this module.
13
Assessment
% obtained
Assignment 01 (MCQ)
100%
Assignment 02 (Written)
100%
Year mark
Examination mark
39%
Multiplier
Mark
0.2
0%
0.8
31.2%
Final assessment mark
31%
Example 4: Both assignments and examination passed with 50% and more
Important:
Your assignment marks play a huge role in determining academic success for this module.
If you obtain 50% in assignment 01, this mark is multiplied by 0.10 to give you 5% towards your
year mark. If you obtain 60% in assignment 02, this mark is multiplied by 0.9 to give you 54%
towards your year mark.
The total mark of assignments 01 and 02 (5% + 54%) will constitute your final year mark of
59%. This figure is then calculated to give you a weight of 12% year mark (59 x 0.2%). If you
then obtain 50% in the examination, this figure is then multiplied by 0.8 to give you a weight of
40% examination mark. The two results are then combined to give a final assessment mark of
52% (12% + 40%) for the module.
Assessment
% obtained
Multiplier
Mark
Assignment 01
50%
0.1
5%
Assignment 02
60%
0.9
54%
Year mark (weighted mark)
59%
0.2
12%
Examination mark
50%
0.8
40%
Final assessment mark
8.3
52%
Assignment numbers
8.3.1 General assignment numbers
Assignments are numbered consecutively per module, starting from 01. Assignment 01 consists
of multiple-choice questions, while Assignments 02 and 03 are written assignments.
Assignment 03 is a self-assessment assignment and may not be submitted to the University for
assessment (see Addendum B).
8.3.2 Unique assignment numbers
Different unique numbers are allocated to the two assignments for the first and second
semesters. Please make sure that you enter the correct unique number for the first MCQ
assignment and the second written assignment.
The two compulsory assignments for 2020 for the module MNE3702 (for Semester 1 and 2) are
set out in Addendums A-D of this tutorial letter.
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MNE3702/101/3/2020
VERY IMPORTANT
Please ensure that your assignments reach us on or before the respective due dates. You will
not be admitted to the examination if your assignments are submitted later than the due date.
Please do not phone the lecturer or anyone with a request to be admitted to the examination if
you have not submitted an assignment or if you submitted it after the due date.
8.4
Assignment due dates
First semester
(Only students who are registered for the first semester period, that is, the
January – June period, must submit these assignments) Annexure 1: See
Addendums A and B
ASSIGNMENT
DUE DATE
UNIQUE NUMBER
Assignment 01
13/03/2020
835723
Assignment 02
27/03/2020
820808
Second semester (Only students who are registered for the second semester, that is the July
– December period, must submit these assignments) Annexure 2: See
Addendums C and D
ASSIGNMENT
DUE DATE
UNIQUE NUMBER
Assignment 01
14/08/2020
869247
Assignment 02
28/08/2020
734252
8.5
Submission of assignments
It is very important that you adhere strictly to the due dates set for the submission of your
assignments. Late assignments will automatically be returned to you unmarked. Note that you
may submit your assignments before the respective due dates, but they will be marked and
returned to you only after the due dates.
8.6
The assignments
Assignments are regarded as part of the learning material for this module. As you do the
assignment; study the reading texts; consult other resources; discuss the work with fellow
students or tutors; or do research, you are actively engaged in learning. It will help you
understand what is required of you more clearly when you look at the assessment criteria given
for each assignment. Also, we suggest that you make copies of your assignments before
posting them, because they may get lost in the post. It is your responsibility to ensure that your
assignments reach the University.
The University has a policy of compulsory assignments in all modules for 2020. Assignments 01
and 02 for MNE3702 are, therefore, compulsory of which BOTH contribute to your final mark.
However, admission to the exam will be obtained by submitting assignment 01 OR 02 and not
15
on the strength of the marks you obtain for them. If you fail to submit one of the assignments,
you will not be admitted to examination.
Assignment 01 consists of multiple choice questions, while assignment 02 is a written
assignment. The written assignment for this module require you to type it in a Word document,
convert it to PDF and submit it online in the same manner you submit all other assignments
online. The assignments will be routed to your lecturer who will mark it.
You may be given a form to fill in or may have to type a document, but it depends on the
assignment. These typed assignments must be submitted using the online Assignments tool
on myUnisa, as PDF documents.
The use of the mark-reading sheet (not preferred):
Alternatively to submitting your assignment 01 online, when submitting ASSIGNMENT 01 on
your mark-reading sheet, it must be in an A4 envelope and sent to the Assignment Department.
Please do not include the cover sheet with your mark-reading sheet.
NB: Only mark-reading sheets may be used to answer the assignment questions. You must
ensure that Unisa provide you with enough mark-reading sheets. Please DO NOT FOLD your
mark-reading sheet. Always send it in the A4 envelope provided for this purpose. Answers on a
sheet of paper cannot be marked by a computer.
More instructions on the use of mark-reading sheets when answering multiple-choice questions
can be found in the 2020 Study@unisa brochure. Read these instructions CAREFULLY and
make sure you follow them STRICTLY to avoid making unnecessary mistakes.
VERY IMPORTANT
Mark-reading sheets that are rejected by the computer will be returned to students without
being marked. In such cases, the student will receive no marks for the assignment.
The use of case studies
A case study is a published report about a person, group, or situation that has been studied
over time; and includes a real-life situation that can be looked at or studied to learn about
something.
You may approach questions based on a case study as follows:
 Quickly read through the case study as a whole without interrupting your pattern of
thought.
 Then, read through the case study more carefully, making sure that you know what it is
all about.
 Make sure that you understand the content and scope of the questions.
 Identify possible solutions to each question.
 Evaluate every possible solution.
 Choose the best solution as your answer.
Always use the mark allocation for each question as an indication of the length of your answer.
You usually receive one mark per fact. Most of the questions will assess your insight and own
opinion. Structure your answers logically by using headings and subheadings.
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MNE3702/101/3/2020
Plagiarism
Note: Although you may work together when preparing assignments, you must write and submit
your own individual assignment. In other words, you must submit your own ideas in your own
words, sometimes interspersing these with relevant short quotations that are properly referenced.
It is unacceptable for students to submit identical assignments on the basis that they worked
together. That is copying (a form of plagiarism); and if you and other students copy one another’s
work, none of your assignments will be marked. Furthermore, you may be penalised or subjected
to disciplinary proceedings by the University.
Extensions for assignments
Under NO circumstances will you be granted an extension to the deadline for submitting your
assignments. If your assignments are late, they will be returned unmarked. The due date is the
date on which your assignment must reach Unisa and NOT the date on which you must post it.
Feedback on assignments
You will receive the correct answers automatically for multiple-choice questions. The markers
will comment constructively on your written assignments. However, feedback on compulsory
assignments will be sent to all students registered for this module in a follow-up tutorial
letter; and not only to those students who submitted the assignments. You will receive feedback
on both the assignments in Tutorial Letter MNE3702/201/1/2020 for first semester and
MNE3702/201/2/2020 for second semester.
As soon as you have received the feedback, check your answers. The assignments and the
feedback on these assignments constitute an important part of your learning and should help
you to be better prepared for the next assignment and the examination.
8.7
Other assessment methods
There are no other assessment methods for this module.
8.8
The examination
As previously stated, you must submit Assignment 01 or 02 in order to obtain admission to the
examination. Admission will be obtained by submitting either assignment and not on the
strength of the marks you obtain for it. Failure to submit Assignment 01 or 02 will mean that you
will not be admitted to the examination. Remember that BOTH assignments contribute to your
final mark.
This module is offered within a semester period. During the year, Student Assessment
Administration (Examinations) will provide you with information regarding the examination in
general, as well as the examination venues, dates and times.
If you are awarded a supplementary examination for the semester you will write the next formal
examination in the next semester October/November 2020 (for semester 1 modules) and
May/June 2021 (for semester 2 modules).
17
Format of the examination paper
The duration of the examination paper is two hours (120 minutes). The examination paper is set
in English. The question paper counts 70 marks and consists of two sections. Section A (30
marks) is compulsory and the questions will be based on a case study. Section B (40 marks) will
consist of three questions, of which you will have to answer any two of your choice. The
questions of Assignment 02 are a good reflection of the type of questions you can expect for the
examination.
With regard to answering the questions on the case study, please take note of the questions
that require you to provide facts directly from the case study to substantiate your answer.
Multiple-choice questions will not be asked in the examination paper. Therefore, the marks that
you obtain for the compulsory Assignment 01 is not an indication of your level of understanding
of the study material or what mark you can expect to earn in the examination.
Student Assessment Administration (Examinations) places a few examples of previous
examination papers on myUnisa. Please note that these examination papers are provided only
to give you an idea of the expected format of your examination; you should not regard them as
an indication of the actual questions that are likely to appear in the examination you will write.
However, please refer to the specific examination guidelines provided in this tutorial letter as the
format of examination papers may vary from year to year.
9 FREQUENTLY ASKED QUESTIONS
The Study@Unisa brochure contains an A-Z guide of the most relevant study information. Visit
UNISA’s website www.unisa.ac.za and click on the Search / Ask Us icon.
Please refer to the myUnisa site for frequently asked questions and answers.
10 IN CLOSING
We wish you all the best throughout your academic journey and trust that you will do well in this
module.
W Sambo
Primary Lecturer: MNE3702
Department of Applied Management
18
MNE3702/101/3/2020
11 ADDENDUM A
NB: This addendum contains assignment 01 and 02 for semester 01.
Assignment 01
This assignment covers all the work of the prescribed book (excluding chapter 5) and consists
of 20 multiple-choice questions. This assignment should therefore be completed on a mark
reading sheet or submitted via myUnisa. Written answers for Assignment 01 will not be marked.
Due dates and unique numbers:
SEMESTER
SUBMISSION DATE
UNIQUE NUMBER
FIRST SEMESTER
13 MARCH 2020
835723
Question 1
Heraclitus stated in 500 B.C. that, “nothing endures but change.” This statement most certainly
applies in today’s turbulent business environment.
For companies to obtain a sustainable competitive advantage, they need to adjust, on a timely
basis, to new technologies, new customer needs, new regulatory rules, and other changes in
conditions without losing focus or causing significant disruption of core operations and
commitments. This refers to _______________.
1
2
3
4
adaptability
flexibility
speed
innovativeness
Question 2
Which of the following combinations with regard to the stages of the organisational life cycle are
correct?
a
b
c
d
Growth through collaboration: Collaboration takes the form of creating
semi-autonomous product divisions and strategic business units.
Start-up and early growth: The launching of a venture and the initial penetration of the
market.
Growth through direction: Where management puts the necessary systems and
structures in place, and augments the leadership team with functional area
professionals, another period of sustained growth ensures.
Growth through Coordination: Companies must simplify structures and procedures,
reduce head office staff, reassign staff experts, create matrix structures and emphasise
innovative projects involving cross-functional teams.
19
1
2
3
4
a and b
b and c
c and d
b and d
Question 3
Which of the following statements indicate that Microsoft is trying to exhibit corporate
entrepreneurship?
a
b
c
d
Office and Windows, its core products, have become standards for most consumers.
Microsoft has a team of scientists, mathematicians and computer scientists working in
search of new ideas.
Microsoft invested over $9 billion in research and development during the economic
downturn in 2009.
Microsoft is a $60 billion powerhouse, located in Washington, which employs over
90,000 employees.
1
2
3
4
Only b
a and b
b and c
b and d
Question 4
Which statements below represent the differences between corporate entrepreneurship and
entrepreneurship?
a)
b)
c)
d)
e)
No major differences
Job security
Driven by an individual champion
Ownership of the concept
Potential for scale and scope
1
2
3
4
a, b and c
b, c and d
c, d and e
b, d and e
Question 5
Entrepreneurship is manifested in established companies in many ways. When
entrepreneurship is derived from _______________ it is recognised that entrepreneurship can
originate from any person, level, or department in the organisation.
1
2
3
4
20
ad hoc venture teams
new venture divisions
champions and the mainstream
hybrid approaches
MNE3702/101/3/2020
Question 6
Which of the following statements are dilemmas of innovation?
a)
b)
c)
d)
Technology-driven innovation often leads to dramatic new products that prove to be
“better mousetraps” nobody wants.
Being first to market is not consistently associated with success, while being second or
third is not consistently associated with failure.
All entrepreneurs are innovators, all innovators are entrepreneurs, and successful
entrepreneurship does not involve continued innovation.
People who design innovations typically seek to perfect their new product or service,
making it the best possible.
1
2
3
4
a, b and c
b, c and d
c, d and e
a, b and d
Read the mini case study below and answer Questions 7 and 8 which follow.
M&M Manufacturers have introduced a new product that has revolutionised the market. It was
the first new product introduced in ten years. In contrast, Footloose Traders continuously
introduces modest improvements in their products and services.
Question 7
Where on the entrepreneurial grid would you place M&M Manufacturers?
1
2
3
4
continuous / incremental
periodic / incremental
revolutionary
periodic / discontinuous
Question 8
Where on the entrepreneurial grid would you place Footloose Traders?
1
2
3
4
continuous / incremental
periodic / incremental
revolutionary
periodic / discontinuous
21
Question 9
There are three underlying dimensions of entrepreneurship.
_______________ refers to the extent to which an organisation does things in novel, different
and unique ways. While, the willingness on the part of the organisation to pursue opportunities
that have a reasonable likelihood of producing significant performance discrepancies is known
as _______________.
1
2
3
4
risk-taking; innovativeness
innovativeness; risk-taking
risk-taking; proactiveness
proactiveness; risk-taking
Question 10
Complete the following sentence:
Discontinuous innovation _______________.
1
2
3
4
addresses a market need that has not been addressed before
is a dramatic improvement of an existing product
refers to copying an innovation of another company
is small and continuous products improvements
Question 11
Match the component of corporate venturing in Column A with the correct definition in
Column B.
Column A
Column B
1) Internal corporate
venturing
a) To exploit existing corporate competencies in new
product or market arenas.
2) Cooperative corporate
venturing
b) New businesses are created outside the company
and subsequently acquired by the company.
3) External corporate
venturing
c) Create and own new businesses.
d) Create new businesses and own together with
external development partners.
1
2
3
4
22
(1)(c);
(1)(d);
(1)(a);
(1)(c);
(2)(d); (3)(b)
(2)(b); (3)(a)
(2)(d); (3)(b)
(2)(b); (3)(d)
MNE3702/101/3/2020
Question 12
Place the following activities by Home Price Upholstery (HPU) in the correct order, as the steps
would occur throughout the stages of the creative process.
a)
b)
c)
d)
e)
An employee of the creative team suddenly screams, “Aha! I have the answer!”
HPU goes through a period of refinement and adaptation of the idea.
The HPU creative team decides to step away from the problem and put it on the back
burner.
HPU identifies a problem which needs to be defined. In doing so, the company explores
the resources that it has as well as what the company needs.
HPU comes across a series of dead ends; it finds that coming up with the solution gets
circuitous, confusing and off the track.
1
2
3
4
abcde
badce
decab
adeab
Question 13
The BlueBerry Company (BB Co) is striving to become the market leader in technology within
the smart phone industry. Unfortunately, all BB Co does is imitate the strategy of the EyeFone
Company (EF Co), and cannot continually produce desirable technological innovations as it
does not have the necessary internal capacity to do so.
Which two fatal mistakes did the BB Co fall prey to?
1
2
3
4
Pursuing an unsustainable competitive position; no real competitive advantage.
Compromising strategy for growth; misunderstanding industry attractiveness.
No real competitive advantage; failure to explicitly communicate strategy internally.
Pursuing an unsustainable competitive position; misunderstanding industry
attractiveness.
Question 14
The managers at Penwill Clothing retailers feel that they are losing market share. They decided
to put together a think tank consisting of senior staff members to develop a new service that
they can offer customers. This is referred to as _______________.
1
2
3
4
market-pull
technology-push
an entrepreneurial strategy
a champions programme
23
Questions 15 and 16 are based on the various differentiating elements between
mechanistic and organic organisational structures, some of which are listed below.
Elements of the Mechanistic and Organic Organisational Structures:
a
b
c
d
e
The channels of communication are open with free flow of information throughout the
organization.
There is loose, informal control, with emphasis on norm of cooperation.
The authority for decisions is based on the formal line management position.
Employees are required to conform to job descriptions.
The operating styles are allowed to vary freely.
Question 15
Which of the abovementioned elements relate to the mechanistic organisational structure?
1
2
3
4
a, b and c
a, b and e
c and d
d and e
Question 16
Which of the abovementioned elements relate to the organic organisational structure?
1
2
3
4
a, b and c
a, b and e
c and d
d and e
Question 17
A structure that is conducive to corporate entrepreneurship is one that has _______________.
1
2
3
4
24
high specialisation and centralisation of power
decentralised decision making and broad spans of control
hierarchical structures that are highly departmentalised
narrow spans of control and functional specialisation
MNE3702/101/3/2020
Questions 18 and 19 are based on the figure by Slevin and Covin (1990) illustrated below.
Entrepreneurial
PseudoEntrepreneurial
Firms
1
2
3 4
Management
Conservative
Effective
Entrepreneurial Firms
Efficient
Bureaucratic
Firms
Unstructured
Unadventurous firms
Mechanistic
Organic
Question 18
Cell 1 represents that a good fit exists with a(n) _______________ structure and an emphasis
on entrepreneurial management, producing a(n) _______________ company.
1
2
3
4
organic; effective entrepreneurial
pseudo-entrepreneurial; unstructured
organic; efficient entrepreneurial
pseudo-entrepreneurial; efficient entrepreneurial
Question 19
Organisations are much more problematic when the structure and management style are
inconsistent. Which two cells in Slevin and Covin’s figure represent such organisations?
1
2
3
4
Cells 1 and 3
Cells 1 and 2
Cells 2 and 3
Cells 2 and 4
25
Question 20
There are nine distinct design possibilities that a company may employ. The type of design
which has uncertain strategic importance and strong operational relatedness refers to
_______________.
1
2
3
4
separate business units
a micro new venture department
a new product department
nurturing and contracting
[TOTAL: 20 marks]
26
MNE3702/101/3/2020
Assignment 02 consists of a combination of long and short questions.
Due date and unique number for assignment 2, semester 1
SEMESTER 1
ASSIGNMENT 2
SUBMISSION DATE
UNIQUE NUMBER
27 MARCH 2020
820808
Read the following case study below and answer the questions which follow
Important:
Please submit this assignment in pdf format, using the Arial font (size 12), 1.5 cm
paragraph spacing and 2 cm for all page margins.
Virgin
Virgin is one of the best known brands in Britain today, with 96% recognition, and it is well known
worldwide. It is strongly associated with its founder - 95% can name him. In 2004 lnterbrand ranked it
eighth in the global rankings for Brand of the Year. Research shows it is associated with value for
money, quality, good service, innovation, fun and a sense of competitive advantage. But despite its high
profile, Virgin is actually made up of Jots of small companies - 20 umbrella companies with some 270
separate, semi-independent businesses, most set up in partnership with other companies.
This mirrors a Japanese management structure called 'keiretsu', where different businesses act as a
family under one brand, each empowered to run its own affairs independently, but offering help and
support when needed. Richard Branson explains:
'Despite employing over 20 000 people, Virgin is not a big company- it's a big brand made up of lots of
small companies. Our priorities are the opposite of our large competitors ... For us our employees
matter most. It just seems common sense that if you have a happy, well-motivated workforce, you're
much more likely to have happy customers. And in due course the resulting profits will make your
shareholders happy. Convention dictates that big is beautiful, but every time one of our ventures gets
too big we divide it up into smaller units... Each time we do this, the people involved haven’t had much
more work to do, but necessarily they have a: greater incentive to perform and a greater zest for their
work.'
Virgin uses its brand as a capital asset in joint ventures. It is continually searching out opportunities
where it can offer something 'better, fresher and more valuable'. Virgin contributes the brand and
Richard Branson's PR profile, whilst the partner provides the operating capability and often the capital
input- in some ways like a franchise operation. New firms are set up and sold off to finance Virgin's
global expansion. In the three years to 2002, Virgin raised an estimated £1.3 billion in this way. Among
these the biggest was the sale of 49% of Virgin Atlantic to Singapore Airlines for an estimated £600
27
million, followed in 2001 by a £75 million mortgage secured on his remaining stake. Virgin sold 50% of
Virgin Blue, the Australian low-fare carrier to Patrick Corp. for £96 million. It also sold Virgin One to
RoyalBank of Scotland for £45 million, the Virgin Active health clubs for £75 million and the French
Megastore business to Lagardere for £92 million. Virgin has also raised smaller amounts by selling
stakes in Raymond Blanc's restaurants.34
The brand has been largely built through the personal PR efforts of its founder. According to Richard
Branson: “Brands must be built around reputation, quality and price ...People should not be asking "is
this one product too far?" but rather, "what are the qualities of my company's name? How can I develop
them?"
According to Will Whitehorn; director of corporate affairs at Virgin Management: 'At Virgin, we know
what the brand name means, and when we put our brand name on something, we're making a promise.
It's a promise we’ve always kept and always will. It's harder work keeping promises than making them,
but there is no secret formula. Virgin sticks to its principles and keeps its promises.'
Virgin defines its consumers as 'the public at large- anyone who will buy from us. It defines its
customers as 'people who are using Virgin products or services' and would like to extend its relationship
with them, for example through Virgin Mobile. It believes its products and services are about making life
easier- 'developing better value for money, a better service, challenging the status quo, and injecting an
element of fun into what have traditionally been dreary marketplaces.' For example, in the airline
industry it aims to offer excellent customer service and has consistently innovated in many ways like
offering on-board messaging. In 2004 Virgin Atlantic was voted best long haul business airline by
Business Travel and best transatlantic airline by Travel Weekly. Virgin Mobile offers one simple tariff
with no extra charges rather than the complicated contracts offered by other mobile phone companies.
In 2003 Mobile Choice Consumer placed it first for the best pre-pay package and best for customer
service. Service quality is at the core of many of the businesses and this is delivered by staff having the
culture of 'going the extra mile.
Staff are seen as the company's most valuable asset. They give the company its personality, shape its
culture and innovate. Staff training encourages empowerment and challenging of existing rules and
reinforces the brand culture. There are numerous activities designed to promote team spirit and
reinforce brand values, including Richard Branson's summer party for staff. All staff have annual
appraisals and a continuous service policy allows them to move freely around the Virgin Group of
companies. Staff also get to enjoy a Virgin group-wide discount scheme.
The Group conducts regular employee satisfaction surveys and focus groups. It has staff committees
and makes use of ideas/suggestions boxes. The company encourages employees to 'go that extra mile'
by schemes that reward this, such as Virgin Atlantic and Virgin Holidays' Heroes, Virgin Mobile Shout
Scheme, Virgin Money's Academy Awards and the group-wide Star of the Year prize dinner. In 2003
Virgin was voted, by Business Superbrands, the brand that most values its employees. Richard
Branson now runs the Virgin Empire from a large house in London's Holland Park. Although there does
not appear to be a traditional head office structure, Virgin employs a large number of professional
managers. It has a devolved structure and an informal culture. MNE3702/101 35
28
MNE3702/101/3/2020
Employees are encouraged to come up with new ideas and development capital is available once a
new venture reaches a certain size it is launched as an independent company within the Virgin Group
and the intrapreneur takes an equity stake. Will Whitehorn, Branson's right hand man for the last 16
years, says of Richard: 'He doesn't believe that huge companies are the right way to go.
He thinks small is beautiful. .. He's a one-person venture capital company, raising money from selling
businesses and investing in new ones, and that's the way it will be in the future' (The Guardian, 30 April
2002). In 2007 Richard Branson announced that he would be taking a less active role in the day-to-day
management of his companies.
SOURCE: Burns, P. 2013. Corporate Entrepreneurship. Innovation and Strategy in Entrepreneurship.
New York: Palgrave, McMillan.
Question 1
Where would you place Virgin in the entrepreneurial grid and why?
(6)
Question 2
As a business consultant to Richard Branson, explain to him how Virgin can grow through collaboration.
(6)
Question 3
Some elements of culture apply in the case study. By quoting relevant issues from the case, identify and
explain what elements of culture are evident at Virgin.
(7)
Question 4
Briefly explain to Virgin group the entrepreneurial imperatives of Richard Branson in the organization. (5)
Question 5
Entrepreneurial initiatives can be held back or derailed at Virgin because of a number of shortcomings of
the corporate entrepreneur. There are limitations that the Virgin group is likely to face. Explain the
limitations that may lead to Virgin managers/corporate entrepreneurs to fail.
(10)
Question 6
Some of the reasons why firms engage in corporate entrepreneurship (CE) projects include learning
about the process of venturing-build a new business as a laboratory in which the innovation process can
be studied, developing new competencies-build a new business as a basis for acquiring new knowledge
and skills pertaining to technologies, products, or markets of potential strategic importance, and to
develop managers-build a new business as a training ground for the development of individuals with
29
general management potential. Briefly explain how Virgin can maximize learning from their CE projects.
(6)
Question 7
Briefly explain how Virgin can acquire more resources for growth.
(4)
Question 8
Briefly explain what external challenges Virgin is likely to face in their core Human Resources (HR)
function.
(6)
[TOTAL: 50]
30
MNE3702/101/3/2020
12
ADDENDUM B
NB: This addendum contains assignment 01 and 02 for semester 02.
Assignment 01
This assignment covers all the work of the prescribed book (excluding chapter 5) and consists
of 20 multiple-choice questions. This assignment should therefore be completed on a mark
reading sheet or submitted via myUnisa. Written answers for Assignment 01 will not be marked.
Due dates and unique numbers for Assignment 1, semester 2
SEMESTER 2
SUBMISSION DATE
UNIQUE NUMBER
ASSIGNMENT 1
14 AUGUST 2020
869247
Question 1
An intense, focused and pro-active approach to eliminating competitors, delighting customers
and growing employees is referred to as ___
1
innovativeness
2
adaptability
3
flexibility
4
none of the above
Question 2
___and the ability to continually redefine the competitive playing field are among the skills that
define corporate performance in the global economy of the twenty first century.
1
Corporate ventures
2
Continuous innovation
3
Risk taking
4
Competitive advantage
Question 3
Which one of the following statements is true?
1
It is believed that risk is so high when the company ignores new product and service
new opportunities, and engages in little to no innovation.
2
Risk is high when the company embraces new product and not service opportunities.
3
It is believed that risk is so low when the company ignores new product and service
new opportunities, and engages in little to more innovation.
4
Risk is high when the company embraces new product and service opportunities at
the same time.
31
Question 4
How would you apply the entrepreneurial grid to an individual manager?
1
by creating a conducive environment for him to act entrepreneurial
2
by measuring his level of innovation
3
by characterising how an entrepreneur approaches external change
4
by individual efforts
Question 5
Which one of the following is likely to play a role in determining relationships between the
nature of the external environment facing a company, its strategy and the internal structure of
the company?
1
organisational structure
2
innovators
3
management
4
entrepreneurial intensity
Read the following brief and answer questions 6 and 7 that follow.
TJ Manufacturers have introduced a new product that has revolutionised the market. It was the
first new product introduced in ten years. In contrast, Alex Traders continuously introduces
modest improvements in their products and services.
Question 6
Where on the entrepreneurial grid would you place TJ Manufacturers?
1
continuous / incremental
2
periodic / incremental
3
revolutionary
4
periodic / discontinuous
Question 7
Where on the entrepreneurial grid would you place Alex Traders?
32
1
continuous / incremental
2
periodic / incremental
3
revolutionary
4
periodic / discontinuous
MNE3702/101/3/2020
Question 8
One means of creating a ___ is to make entrepreneurship the basis upon which the
organisation is conceptualised and resources are allocated.
1
sustainable corporate culture
2
business model
3
option 1 and 2
4
dynamic dominant logic
Question 9
___ sets the context for the company’s overall direction.
1
Strategy
2
Strategic management
3
Business model
4
Dominant logic
Question 10
Activities that enable the company to perform similar activities in different ways and better than
competitors are known as ___.
1
innovation
2
entrepreneurial behaviour
3
operational effectiveness
4
competitor awareness
Question 11
Which one of the following represents strategic innovation pertaining to product-focused
entrepreneurial initiatives?
1
Innovation is a company-wide task, not simply the responsibility of R&D.
2
Strategies are formulated for the types of markets, to be served through the
company’s innovative efforts, including how new or mature these markets are in
general, and the newness of these markets to the company.
3
option 1 and 2
4
Innovation portfolio
33
Question 12
The ability to design company strategies, processes and operational approaches that can
simultaneously meet the diverse and evolving requirements of stakeholders (such as
customers, distributors, suppliers, financiers, regulators etc.) is a sign of ___.
1
adaptability
2
creativity
3
option 1 and 2
4
risk appetite
Question 13
___ refers to the entrepreneurial phenomenon whereby the firm pro-actively creates a new
product-market arena that others have not recognised.
1
Organisational rejuvenation
2
Sustained generation
3
Domain redefinition
4
Corporate strategy
Question 14
Which one of the following statements is false?
1
The dominant direction in terms of the flow of ideas is top down and not bottom up.
2
The dominant direction in terms of the flow of ideas is bottom-up and not top-down.
3
Strategic positioning is concerned with how the company wants to be perceived in
the market place.
4
It is believed entrepreneurship flourishes where there are few layers or levels in the
structure of a company.
Question 15
A structure that is conducive to corporate entrepreneurship is one that has ___.
1
high specialisation and centralisation of power
2
decentralised decision making and broad spans of control
3
hierarchical structures that are highly departmentalised
4
34
narrow spans of control and functional specialisation
MNE3702/101/3/2020
Question 16
___ refers to the ways decision making authority is distributed, tasks are grouped and people
are assigned to tasks.
1
Differentiation
2
Specialisation
3
Decentralisation
4
Corporate strategy
Question 17
Organisational structure with high strategic importance and low operational relatedness is
referred to as___.
1
contracting
2
separate business units
3
new venture division
4
alternate business units
Question 18
One mistake that organisations continually fall prey to in attempt to implement strategy is ___.
1
having no real competitive advantage
2
uncertainty over industry attractiveness
3
contracting
4
decentralisation
Question 19
The ___ perspective suggests that innovation can originate from within the organisation.
1
entrepreneurial
2
portfolio
3
bottom-up
4
structural
Question 20
Which one of the following statements is not correct?
1
One benefit of a corporate entrepreneur is a potential for unlimited earnings.
2
Start-up entrepreneurs face severe resource limitations.
3
In corporate entrepreneurship there is more room for errors.
4
Start-up entrepreneurs have benefits of unlimited earnings.
[TOTAL: 20]
35
Assignment 02 consists of a combination of 7 long and short questions.
The answers to this assignment may be typed or hand written, submitted via myUnisa. Please remember
to keep a copy of your assignment.
Due date and unique number for assignment 2, semester 2
SEMESTER 2
ASSIGNMENT 2
SUBMISSION DATE
UNIQUE NUMBER
28 AUGUST 2020
734252
Read the following case study below and answer the questions which follow.
Please submit this in pdf format, using the Arial font (size 12), 1.5 cm paragraph spacing and 2
cm for all page margins.
Dell
Dell assembles computers. Originally assembled in the USA, they are now assembled also in Ireland,
Malaysia, China and Brazil. However, from the start Michael Dell knew what the critical success factor
for his business was. He used an expert to build prototype computers whilst he concentrated on finding
cheap components. And the company still sources its components from around the world. Dell grew at
an incredible pace, notching up sales of £3.7 million in the first nine months. The company pioneered
direct marketing in the industry whereby systems are built to the customer's specifications after an order
is placed, and then shipped directly to the customer. More lately, it has pioneered the development of
integrated supply chain management, linking customers’ orders directly to its supply chain. At all times
it has focused dearly on a low-cost/low-price marketing strategy.
‘We built the company around a systematic process: give customers the high-quality computers they
want at a competitive price as quickly as possible, backed by great service.'
Every division in Dell is tasked to continuously improve efficiency and reduce costs, and workers
undertake extensive training through its team-based Business Process Improvement programme. This
is aimed at reinforcing the importance of cost reduction, but also putting in place processes and
procedures that allow efficiency savings to be made, giving the team control over implementing new
ideas. As Dell says, 'Empower workers with the tools to make a difference and the innovation will
follow.' Productivity at Dell, measured by the number of computers built per employee, has increased by
240% in the last five years.
Dell was a pioneer of e-business. What makes Dell special today is its 'fully integrated value chain'
B2B2C. Suppliers, including many small firms, have real-time access to information about customer
orders and deliveries via the company’s extranet. They organize supplies of hard drives, motherboards,
modems etc. on a 'just-in-time' basis so as to keep the production line moving smoothly. From the parts
being delivered to the orders being shipped out takes just a few hours. Inventories are minimized and,
what is more important, the cash is received from the customer before Dell pays its suppliers. These
36
MNE3702/101/3/2020
systems and processes are part of Dell's competitive advantage. They help keep Dell's costs low and
allow it to build to order. In the 1990s, in order to protect this, the company started applying for patents,
not for its products, but for different parts of its ordering, building and testing processes. It now holds
over 80 such patents.
Dell has created a three-way 'information partnership' between itself and its customers and suppliers by
treating them as collaborators who together find ways of improving efficiency:
The best way I know to establish and maintain a healthy, competitive culture is to partner with your
people - through shared objectives and common strategies ...Dell is very much a relationship orientated
company ... how we communicate and partner with our employees and customers. But our commitment
does not stop there. Our willingness and ability to partner to achieve our common goals is perhaps
seen in its purest form in how we forge strong alliances with our suppliers ... Early in Dell's history we
had more than 140 different suppliers providing us with component parts ... Today our rule is to keep it
simple and have as few partners as possible. Fewer than 40 suppliers provide us with about 90 percent
of our material needs. Closer partnerships with fewer suppliers is a great way to cut cost and further
speed products to the market.
Dell's market place is highly competitive. Dell prides itself on good marketing of quality products but,
most importantly, speedy delivery of customized products - factors it believes are reflected in the Dell
brand. 'The idea of building a business solely on cost or price was not a sustainable advantage. There
would always be someone with something that was lower in price or cheaper to produce. What was
really important was sustaining loyalty among customers and employees, and that could be derived
from having the highest level of service and very high performing products.'
Nevertheless, whilst Dell might not sell the cheapest computers in the market place, the price it asks
must always be competitive and that means costs must still be kept as low as possible.
SOURCE: Burns, P. 2013. Corporate Entrepreneurship. Innovation and Strategy in Entrepreneurship.
New York: Palgrave, McMillan.
Question 1
Identify and explain six (6) ways in which entrepreneurship can be manifested at Dell.
(6)
Question 2
There is some level of entrepreneurship in every organization. Innovativeness, risk-taking and proactiveness are three dimensions that characterize and determine the level of entrepreneurship within an
organization. By quoting relevant examples from the case, discuss the three dimensions of corporate
entrepreneurship as applied at Dell.
(9)
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Question 3
Discuss the concept entrepreneurial intensity and indicate by means of examples how it is practiced at
Dell.
(10)
Question 4
Identify and explain the specific constraints on corporate entrepreneurship which you would alert Dell
about.
(10)
Question 5
By means of examples from the case study, briefly discuss whether Michael Dell (The founder) meets
the characteristics of an entrepreneurial mindset.
(5)
Question 6
Today organizations are confronted with dynamic, threatening, and complex changes in the external
environment, and have been forced to adapt. There are four flexible rules which enhance a venture’s
chance of remaining adaptive and innovative, both through and beyond the growth stage. List and
explain each of these rules and highlight how these rules relate to Dell.
(8)
Question 7
Briefly explain how Dell can build a social capital.
(2)
[TOTAL: 50]
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MNE3702/101/3/2020
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ADDENDUM C
Self-assessment questions: Semester 1&2
NB: This assignment must not be submitted. It is for self evaluation purposes.
Assignment 03 is a self-assessment assignment (for both semester 1 and 2). Therefore, you must not
submit this assignment. Although it is not compulsory, it is highly recommended that you complete this
assignment as it will be of value in your learning experience and in mastering this module in preparation
for your exams.
Read the case study below and answer the questions that follow:
Italtile (Pty) Ltd
In the late 1960s, Giovanni Ravazzotti, an immigrant from Italy, identified the need for
affordable tiles and ceramic products in South Africa. He began importing and retailing them
through a company he founded, Italtile. In the wake of the 1976 Soweto uprising when the first
hints of trade sanctions against South Africa were surfacing Mr Ravazzotti began
manufacturing ceramic tiles domestically. In 1992, Italtile and manufacturer Ceramic
Industries were listed on the Johannesburg Stock Exchange. Today the group’s retail
operation comprises a total network of 126 stores in Southern and East Africa which is
strategically supported by a vertically integrated supply chain, investments in key suppliers
and a property investment portfolio. From the founding of Italtile to the launching of various
brands, support divisions and products over the years, Italtile expanded enormously. While
Italtile was aimed at the high-end markets, the next step was to penetrate all other market
segments, hence in 1983 the first CTM store was launched and from that the franchising of
CTMs began in 1992. CTMs were established with the middle-to-upper market in mind. Such
accelerated advancements in the market propelled the group to broaden their expansion
internationally, which led to trading in Australia in 1998. Within three years of their decision,
Italtile had rooted themselves in multiple states in Australia. In 2008 TopT was launched, the
brand that was designed to cater for the entry-level markets. In 2004, Italtile had acquired
controlling interest in two of its key suppliers, ITD (International Tap Distributors) – a tap
importer and distributor and Earlyworks (Pty) Ltd – an importer and distributor of tiling tools
and hardware. With such constant aggressive progress and growth, the group launched a
tiling and plumbing academy in Gauteng in 2009.
39
The property investment portfolio reinforces retail operation by locating stores in high-profile,
easily accessible sites, and maintaining and upgrading premises ensures an optimum
shopping environment. Stores are located in high-visibility sites and, together with their
comprehensive offerings, this positions them as one-stop solution destinations, with ranges
including: ceramic and porcelain wall and floor tiles; sanitaryware; bathroom furniture; taps;
fittings; laminated wooden flooring; and home-finishing products and tools.
Italtile pursues corporate entrepreneurship and innovation by fostering innovative behaviour
within their organisation. The group promotes such behaviour, in their high level of flexibility to
adapt, speedily and aggressively, to the complexities of the changing external and internal
environments. Employees are encouraged to think like entrepreneurs by engaging in profitsharing practices aimed at promoting ownership and partnership in the business, with the
introduction of the franchise and joint-ventures business model. Complementing this longstanding tradition of Italtile, they have also implemented an equity-settled staff share scheme
designed to further incentivise employees to participate in the growth and profitability of the
business. Italtile prides itself on placing an immense amount of emphasis on continuous
improvement in its logistics/service delivery and production. Being regarded as an industry
leader with notable market share, the group entrenches its reputation as a fashion icon by:
conducting continuous, comprehensive consumer research; employing experienced, skilled
brand and divisional managers and dedicated buyers who specialise in key products and
areas; holding regular regional meetings to obtain insight into markets and product feedback;
monitoring and adjusting costs and pricing as appropriate; constantly refreshing store displays
and trading space; and sharing best practice principles across the group. The group’s recently
opened Cape Town distribution centre is advancing the goal to improve distribution and the
logistics of imported products as well as to enhance performance in the region.
Case study adapted from: See-Anne Ramsuran (2016)
QUESTION 1
There is some level of entrepreneurship in every organisation. Innovativeness, risk-taking and
pro-activeness are three dimensions that characterise and determine the level of
entrepreneurship within an organisation. By quoting relevant examples from the case, identify
and discuss one of the three dimensions of corporate entrepreneurship that is more applicable
to Italtile.
40
(9)
MNE3702/101/3/2020
QUESTION 2
By means of examples from the case study, show the characteristics displayed which are
associated with an entrepreneurial individual.
(10)
QUESTION 3
Some of the world’s most innovative companies include IN THE TILING INDUSTRY
INCLUDE; Tile Africa, Johnson & Johnson, SAMCA. These companies have something in
common; they are continuously striving for a sustainable competitive advantage and the
managers within them continually reinvent themselves. Identify and explain the five key
capabilities that would contribute towards Italtile achieving a sustainable competitive
advantage.
(10)
QUESTION 4
Some elements of culture apply in the case study by quoting relevant issues from the case,
identify and explain six (6) elements of entrepreneurial culture are evident at Italtile.
(12)
QUESTION 5
Unpack the concept of “creative abrasion” and indicate how this concept is applied at Italtile.(9)
TOTAL MARKS
50
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