KUNDAI CHINWADZIMBA
BUSINESS MANAGEMENT 1A(BMNG5121)
TAKE HOME TEST
DUE 16/03/2025
QUESTION 1
1.1) This generally refers to policies in the hiring process that encourage or promote
fair representation of minority groups (UNI24.CO.ZA, 2022).
A perfect example will be if a tech company here in Joburg picks up that women are
not well represented in the research department, they can put in place a targeted
hiring programme that can be partnered with a local movement with the same goals
of giving opportunities to women.
1.2) Sociologists view them not just normal people venturing into business but as a
piece of a much larger puzzle in the social and economic systems. They believe that
entrepreneurs are driven by innovation, job creation and profitability of their business
idea (Thorton, 1999).
A good example of the truth in this would be to look at Thatiso Dube the founder of
the very popular clothing brand Galxboy, it is very apparent that he is profit by the
pricing and marketing, however he is also known for giving work opportunities to the
youth in his store. Furthermore, the innovative thinking is very apparent in the bold
designs of items that always has people and even the noticeable influence on street
wear trends.
1.3) This is a person who typically owns and manages a small business or
establishment. This person typically has not that many employees and resource in
comparison to much larger enterprises and business chains.
An example of this would be a family-owned restaurant like a taste of Africa here in
Braamfontein close to Rosebank College. They have only one location, few
employees, resources compared to Nomad or NEWS Café.
1.4) Intrapreneurship is usually defined as one conducting themselves as an
entrepreneur while working in a large establishment or organization. This is done to
take advantage of the creative and innovative qualities of a textbook entrepreneur
(Park University, 2024).
A CEO that uses creative and innovation ideas to grow and improve the business
while staying withing the organization’s system and vision.
1.5) a franchise is a type of business agreement in which the franchiser sells the
rights to his business image and model to a franchisee (HAYES, 2024).
An example of this is Mrs Chauke seeing that there is no KFC in her neighborhood,
so she then conducts a survey to see what the demand is like in the neighborhood
for KFC. The survey confirms her suspicions that there is indeed a demand for KFC,
so she then finds a way to gather the funds and acquires the rights and permission
to open a KFC in her neighborhood. This is an example of what a franchise and
franchising is.
QUESTION 2
2.1) The term “multiplicity of human needs in the business environment” essentially
means or refers to diverse needs of all participants in the business environment, and
these can be employees, consumers and any other stakeholders. These needs
range from basic needs, psychological needs, social needs to self-actualization
needs. It is imperative that businesses take note of and tend to these needs in order
to remain competitive and gain customer loyalty.
Physiological Needs- It is important that businesses ensure that there is accessibility
and affordability of basic human needs like food, water, and financial security. By
ensuring affordability and financial inclusion, Pick n Pay meets the basic survival
needs of its customer base.
Safety and Security Needs – Economic Stability and Job Creation- Personal and
economic safety are of utmost importance and businesses contribute to this through
the creation of jobs, maintaining stable prices and providing a safe shopping
environment. This expansion supports local economies, providing stability for
employees and communities.
Social Needs – Community and Customer Relationships-Consumers seek a sense
of belonging in society and businesses can help this by fostering loyalty through
engagement and service. PnP’s strategy the significance of “treating the aspirant
customer with respect”, making it a priority that low-income shoppers are included.
By catering to social needs, Pick n Pay builds long-term customer loyalty in
underserved areas.
Esteem Needs – Affordable Quality and Dignity in Shopping-It is important that
customers get quality and affordability without compromising their dignity. PnP takes
into account that customers no longer buy in bulk but instead prefer frequent trips to
the local stores and boxer stores support this trend by offering convenient locations
that align with evolving consumer habits. PnP’s strategies allow customers to shop
with dignity while avoiding the stigma and stereotypes associated with shopping at
discount stores.
Self-Actualization – Convenience and Choice- Consumer require convenience and
empowerment and often prefer businesses that adapt to their lifestyles. PnP
acknowledges that customers are shifting from large shopping trips to frequent visits
to local stores. Boxer stores support this trend by offering convenient locations that
align with evolving consumer habits.
2.2) Store location is of the most important parts of such a project and a major
determining factor as to whether or not the business will thrive. As such there are
some important factors to consider when picking it, and they are as follows:
i)Demographics/Customer Base-This is important as it speaks to gathering
important information about the demand of products and the spending habits of
customers (target audience) in that particular area (G-fresh, n.d.).
An example of how this can be done is looking at the stats regarding the spending
and demand of people in that general population which are available at
(www.statssa.gov.za). Alternatively Pick n Pay could also conduct surveys and
community programmes to get an understanding of customer demand and how
much they are willing to spend on the things they need.
ii)Age distribution and Family Composition-Age distribution and family have a
great effect on consumer choices for goods and services. Gfreshmart claims that
concentrated families need more household consumable stock than the younger
demographic who lean more towards ready-made or ready to go meals (G-fresh,
n.d.).
iii)Accessibility and Foot traffic- If we take a look at the central place theory it tells
us that a place has to be easily accessible in order to maximise foot traffic. It is
because of this that it is important that Boxer is located close to ranks and densely
populated areas (WDGCONSULTING, 2025).
This insight is supported by the text in the case study that states that Boxer is aiming
to score more in-person customers as opposed to online customers and this makes
accessibility a top priority.
iv)Store Format and Space Availability-It is crucial to understand that affordable
rental space and a cost-effective store layout are very important
(WDGCONSULTING, 2025).
The case study emphasises how South Africa maintains a "shopping centre culture",
however customers are shopping at local store more often. This is an indicator Pick
n Pay look at compact and high foot traffic locations rather than prioritising large
malls
v)Urbanisation and Shopping trends- It is very important that decisions around the
selection of location be in alignment with urban development trend, this opens up the
door for an increase in the demand for more formal retail store in areas that may
have been previously underserved (G-fresh, n.d.).
The case study supports this by stating that South Africa’s formal retail market will
keep growing “with or without” the pandemic, mainly due to urbanization. By placing
Boxer stores in these growing urban areas, Pick n Pay can capitalize on shifting
shopping behaviours, particularly as consumers prefer convenience stores over
large shopping malls.
2.3) Public companies much like PnP are listed on a stock exchange and this gives
them the opportunity to sell shares to the public in contrast to private companies that
are restricted to who can own and how funding is acquired (Majaski, 2024).
i) Easy access to capital for expansion- Public entities/companies do not have the
need to rely on loans, investments and internal profits as they can simply issue
shares on the stock market enabling them to raise the necessary funds.
PnP plans to double its Boxer stores over the next couple of years and because it is
a public company, it has the opportunity and advantage of being able to raise funds
and avoid getting into serious debt by issuing shares on the market to support the
fast-growing expansion.
ii) Customer Trust- Public companies are subject to a lot of government intervention
and have adhere to a lot of regulations and governance standard, and policies, this
inevitably causes there to be high levels of transparency.
As stated in the case study PnP is “well placed in the current recessionary
environment” and this is largely attributed to its defensive food retail offering,
disciplined capital management, and strong balance sheet. It is these characteristics
that make it a promising and attractive investment that ensures stability in the long
run.
iii) Shareholder/Investor liquidity- There is ease regarding the buying and selling on
the stock market and this liquidity makes it an attractive investment.
Shareholders in PnP will benefit greatly from the liquidity, this makes it seamless
whenever shares need to be traded based on the company's financial performance.
iv) Opportunities for growth through mergers and acquisitions- Public companies are
able to acquire competitors, venture into new markets and form strategic
partnerships and this is because of their high level of financial leverage.
PnP’s expansion of Boxer stores across South Africa implies that they are leveraging
its public company advantages to fund its growth, and this would potentially see PnP
leap ahead of private competitors in the discount retail sector (BizNews, 2024).
V) Ability to attract and retain talent- Public companies are easily able to offer
employees competitive salaries and this makes an appealing destination for skilled
professionals.
Given that PnP has plans of rapid store expansion and increased retail operations it
will be of paramount importance that they attract and keep skilled managers and
employees, and its public status makes it easier to offer better incentives and assure
job security.
2.4)
i) Economic Factors – Recessionary Pressure and Consumer Spending Behaviour
Certain economic factors such as but not limited to inflation, unemployment or levels
of income have a significant and undeniable impact on spending habits and projects
like business expansion. In the midst of a recession consumers often end up trading
down” and choosing products within their means (IOL, 2024).
As mentioned in the case study PnP is expanding Boxer discount store and they are
tailored to cater to low and middle income shoppers. It is also mentioned that in the
current recessionary environment, Boxer store would be poised to perform extremely
well as customers opt for cheaper shopping alternatives. The implication of this is
that PnP has aligned its expansion strategy with current economic conditions and
prioritising savers/cost-conscious consumers and guaranteeing the stability of the
business despite economic fluctuation.
ii)Social Factors – Urbanization and Changing Shopping Trends
Demographic shifts and the everchanging habits of the consumer have a great
influence on businesses. Urbanisation results in greater population density and a
surge in the demand for formal retail outlets in areas that were previously
underserved and in addition to that there is evidence suggesting that consumers are
opting to shop at local stores as opposed to going to malls for frequent and small
purchases (PropertyWheel, 2024).
As the case study states urbanization will continue driving retail growth, regardless of
the pandemic and that shoppers are shifting from big shopping trips to just visiting
convenience stores as and when needed. With this and the rest of the facts from the
text it is safe to assume that PnP’s decision to double its Boxer stores is a direct
response to this social shift as they have seen a gap to exploit. The attention turned
on smaller and more accessible stores guarantees that they meet consumer needs
while also getting ahead in the growing urban areas.
Iii)Technological Factors – Financial Inclusion Through Retail Banking Services
The headway being made in the technology world is changing the way customer
service, payment methods and financial accessibility are perceived. Businesses that
choose to integrate fintech solutions establish added value for customers more
notably in areas where traditional banking is not easily accessible. Since August
Boxer has made it possible for customers to make bank-account deposits and this
in-turn boost and encourages financial inclusion for low-income communities (Retail
Brief Africa, 2022).
By implementing and taking advantage of technology developments in retail banking,
PnP furthers its competitive edge while simultaneously meeting the financial needs
of their core customers. Additionally, it is also worth noting that this is also in
alignment with broader digital transformation trends in the African retail sector.
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