The Independent Institute of Education
2015
MODULE NAME:
MODULE CODE:
BUSINESS MANAGEMENT 1A
BMNG5111
BUSINESS MANAGEMENT 1A
BMNG5111e
BUSINESS MANAGEMENT 1A
BMNG5111f
BUSINESS MANAGEMENT 1A
BMNG5111p
BUSINESS MANAGEMENT 1A
BMNG5111w
ASSESSMENT TYPE:
EXAMINATION (PAPER ONLY)
TOTAL MARK ALLOCATION:
120 MARKS
TOTAL HOURS:
2 HOURS (+10 minutes reading time)
STUDENT NAME:
STUDENT NUMBER:
INSTRUCTIONS:
1.
Please adhere to all instructions in the assessment booklet.
2.
Independent work is required.
3.
Five minutes per hour of the assessment to a maximum of 15 minutes is dedicated to
reading time before the start of the assessment. You may make notes on your question
paper, but not in your answer sheet. Calculators may not be used during reading time.
4.
You may not leave the assessment venue during reading time, or during the first hour or
during the last 15 minutes of the assessment.
5.
Ensure that your name is on all pieces of paper or books that you will be submitting. Submit
all the pages of this assessment’s question paper as well as your answer script.
6.
Answer all the questions on the answer sheets or in answer booklets provided. The phrase
‘END OF PAPER’ will appear after the final set question of this assessment.
7.
Remember to work at a steady pace so that you are able to complete the assessment within
the allocated time. Use the mark allocation as a guideline as to how much time to spend on
each section.
Additional instructions:
1.
This is a CLOSED BOOK assessment.
2.
Calculators are not allowed not allowed.
3.
For multiple-choice questions, give only one (1) response per question. The marker will
ignore any question with more than one answer, unless otherwise stated. You should,
therefore, be sure of your answer before committing it to paper.
4.
Answer All Questions.
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Page 1 of 8
The Independent Institute of Education
Question 1
2015
(Marks: 10)
Multiple choice questions: Select 1 correct answer for each of the following. In your answer
booklet, write down only the number of the question and, next to it, the letter of the correct
answer.
Q.1.1 A system in which most products and services demanded by a community are
(2)
supplied by private organisations seeking profits.
(a)
Socialism;
(b)
Communism;
(c)
Mixed economy;
(d)
Market economy;
(e)
Command economy;
Q.1.2 Identify the incorrect statement about the mixed economy.
(a)
Freedom of choice;
(b)
The profit motive is rejected;
(c)
Basic industries are owned by the state;
(d)
Limited competition because of state industries;
(e)
Workers are free to choose their jobs and employers.
Q.1.3 The business function that aims to create a favourable and objective image of the
(2)
(2)
business.
(a)
Finances;
(b)
Marketing;
(c)
Production;
(d)
Public relations;
(e)
General management.
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Page 2 of 8
The Independent Institute of Education
2015
Q.1.4 Which one of the following statements reflects an entrepreneur’s achievement
(2)
motivation?
(a)
The ability to shorten the time between idea conceptualisation and making the
product/ service available to customers;
(b) The need to be in charge their own destiny and feeling in charge of determining
certain outcomes;
(c)
Actions of intense, prolonged and repeated effort to accomplish something
that is difficult;
(d) The ability to see, conceive, and create new and unique products, processes or
services;
(e)
Adopting a future orientation to business.
Q.1.5 A skill is simply knowledge that is demonstrated through action. Strategy skills refer
(2)
to:
(a)
The ability to consider the business as a whole, to understand how it fits within
the marketplace, how it can organise itself to deliver value to its customers,
and the ways in which it does better than its competitors;
(b) The ability to evaluate the offerings of the firm and their features, to determine
how they satisfy customers’ needs and wants, and to establish why customers
find them attractive;
(c)
The ability to organise projects, to set objectives, draw up schedules and
ensuring that the right resources, are available in the right place at the right
time;
(d) The ability to consider what the future might offer, how this will impact the
business, and what resources and actions are necessary to prepare for it;
(e)
The ability to manage money in terms of tracking expenditure, monitoring cash
flow, and assessing investments.
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Page 3 of 8
The Independent Institute of Education
2015
Question 2
(Marks: 10)
Match-the-columns question: Match the description in Column A with the correct term from
Column B. In your answer booklet, write down only the question number and, next to it, the letter
of the correct answer.
Column A
Q.2.1
Column B
Refers to the problem of how to ensure a.
Social responsibility
the highest possible satisfaction of
needs with scarce resources
Q.2.2
To the insistence of a community that
b.
Macro environment
c.
Employment equity
d.
Environmental planning
e.
Economic value
f.
Economic principle
g.
Market environment
h.
Environmental scanning
business should be a responsible
citizen
Q.2.3
This environment of business is
situated directly outside of the
business organisation and include
stakeholders such as suppliers and
customers
Q.2.4
This process includes the
measurement, projection and
evaluation of change regarding the
different environmental variables
Q.2.5
This particular environment is divided
into the following variables: political,
technological, economic, social,
physical and institutional-political
environments.
Question 3
(Marks: 30)
Entrepreneurship refers to those individuals who accept the risks involved in providing products
and services for society.
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Page 4 of 8
The Independent Institute of Education
Q.3.1
2015
Entrepreneurs need the following resources to start a business, financial resources,
(6)
human resources and operating resources.
Briefly describe these resources.
Q.3.2
A number of factors influence the entrepreneur’s decision about what form of
(10)
business to use.
Using a table, compare a sole proprietorship and a close corporation in terms of the
following factors:

The legal personality of the business

The degree to which the owner(s) has/ have direct control and authority
over the activities of the business

The capital acquisition potential of the business

The legal requirements regarding the establishment, management and
dissolution of the business
Q.3.3
The micro environment comprises the internal environment of the business. List
(3)
any three (3) variables that business should consider.
Q.3.4
Apart from the three (3) main objectives, a business plan provides for five (5)
(5)
additional benefits.
List the five (5) additional benefits of a business plan.
Q.3.5
Critically comment on the following statement: ‘The world is too volatile for
(6)
entrepreneurs to waste their time on business plans.’
Question 4
(Marks: 40)
Management’s task is to combine, allocate, coordinate and deploy resources or inputs in such a
way that the organisation’s goals are achieved as productively as possible.
Q.4.1
Managers at different levels of the organisation need different skills to perform
(4)
effectively, including: conceptual skills; interpersonal skills; and technical skills.
Describe the concept of conceptual skills and provide at least two (2) examples of
conceptual skills within the work context.
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The Independent Institute of Education
2015
Q.4.2 There are a number of schools of thought which are divided into classical and
contemporary approaches. Fully discuss the following schools of thought.
Q.4.2.1 The management process school.
(5)
Q.4.2.2 The human behavioural school
(4)
Q.4.2.3 The scientific school
(2)
Q.4.3 Without planning, none of the other management functions (leading, organising
(10)
and controlling) can be properly implemented. In addition to this, planning is very
important for a number of reasons.
Identify and discuss the benefits of planning.
Q.4.4 Analyse the acronym SMART stand for in terms of goal setting.
(5)
Q.4.5 Corporate strategies identifies what business an organisation should focus on, thus
(10)
providing the scope of the organisation and how managers deploy resources. There
are a number of corporate strategies such as liquidation and divestiture. Identify
and explain any other five (5) corporate strategies.
Question 5
(Marks: 30)
Read the case study below and answer the questions as indicated.
Denel SOC is the largest manufacturer of defence equipment in South Africa and operates in the
military aerospace and landward defence environment. Incorporated as a private company in
1992 in terms of the South African Companies Act (No 62 of 1973), Denel’s sole shareholder is the
South African Government. The Minister for Public Enterprises appoints an independent Board of
Directors that oversees the executive management team which is responsible for the day-to-day
management of the company.
Denel is structured as a Corporate Office, which operates as an Investment Holding company with
a number of specialised Business Entities in its business portfolio in which Denel holds all or the
majority of shares. These Business Entities operate as independent entities under their own
management structures. The following are the different geographic areas (campuses) where
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The Independent Institute of Education
2015
Denel operates:

Irene Campus which houses the following divisions: Denel Dynamic; and Denel Integrated
Systems Solutions (DISS); Denel Industrial Properties

Lyttleton Campus: Denel Land Systems; Mechem; and LMT Holdings

Kempton Park Campus: Denel Aviation; Denel Technical Academy; and Denel
Aerostructures

Pretoria West Campus: Denel PMP

Western Cape Campus: Denel Overberg Test Range
State-owned arms manufacturer Denel significantly boosted its net profit to R194 million on the
back of a long-term turnaround strategy, its 2013/ 14 financial results revealed on Friday. “We can
safely state that Denel has now returned to profitability on a sustainable basis,” group chief
executive Riaz Saloojee said in a statement. “We have achieved the envisaged turnaround and are
well on our way to move the company from being a good to a great company - in the process
meeting shareholder expectations and transforming Denel into a valuable and self-supporting
national asset.”
He said Denel was looking to play an expanded role in industrial development in the country to
contribute to the achievement of the objectives set out in the National Development Plan and the
Industrial Policy Action Plan (Ipap).
Business Report. 2014. Denel improves its profitability. [Online]. Available at:
http://www.iol.co.za/business/companies/denel-improves-its-profitability-1.1736317#.U-MSE0cQdV [Accessed 13 January 2014]
Denel. [s.a] [Online]. Available at: http://www.denel.co.za [Accessed 13 January 2014]
Q.5.1
As a business grows it becomes necessary to create new managerial positions
(10)
according to departments based on a logical grouping in manageable sizes of
the activities that belong together.
Graphically depict Denel’s departmentalisation structure.
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The Independent Institute of Education
Q.5.2
2015
It can be argued that group chief executive Riaz Saloojee has gained the trust
(8)
of Denel’s key stakeholders.
Describe the any four (4) dimensions of trust as well as each dimension’s
essential components.
Q.5.3
Controlling gets planning and performance to coincide. The first step in the
(4)
controlling process involves the establishment of standards. A key ingredient
to Denel’s success is its ability to respond to its customer’s needs.
Create an appropriate standard to guide customer interactions.
Q.5.4
Group CEO Riaz Saloojee said that Denel was looking to play an expanded role
(6)
in industrial development in the country.
Discuss the concept of Corporate Social Responsibility (CSR) in light of the
above statement from the Group CEO.
Q.5.5
List any two (2) traits of a charismatic leader.
(2)
END OF PAPER
© The Independent Institute of Education (Pty) Ltd 2015
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