MNB1501/101/3/2013

Tutorial letter 101/3/2013

BUSINESS MANAGEMENT 1A

MNB1501
Semesters 1 & 2
Department of Business Management
IMPORTANT INFORMATION:
This tutorial letter contains important information
about your module.

CONTENTS
Page
1

INTRODUCTION ............................................................................................................................ 4

PURPOSE OF AND OUTCOMES FOR THE MODULE ................................................................ 4

2.1

Purpose .......................................................................................................................................... 4

2.2

Outcomes ....................................................................................................................................... 5

LECTURERS AND CONTACT DETAILS ...................................................................................... 5

3.1

Lecturers ......................................................................................................................................... 5

3.2

Department ..................................................................................................................................... 6

3.3

University ........................................................................................................................................ 6

MODULE-RELATED RESOURCES .............................................................................................. 6

4.1

Prescribed books ............................................................................................................................ 6

4.2

Recommended books ..................................................................................................................... 6

STUDENT SUPPORT SERVICES FOR THE MODULE ................................................................ 7

MODULE-SPECIFIC STUDY PLAN............................................................................................... 7

MODULE PRACTICAL WORK AND WORK-INTEGRATED LEARNING ..................................... 7

ASSESSMENT ............................................................................................................................... 7

8.1

Assessment plan ............................................................................................................................ 7

8.2

General assignment numbers ......................................................................................................... 7

8.2.1

Unique assignment numbers .......................................................................................................... 7

8.2.2

Due dates for assignments ............................................................................................................. 7

8.3

Submission of assignments ............................................................................................................ 8

8.4

Multiple choice questions ................................................................................................................ 8

8.5

The use of the mark-reading sheet ................................................................................................. 9

8.6

Faulty mark-reading sheet .............................................................................................................. 9

8.7

Assignments ................................................................................................................................. 10

8.8

Extension for the assignments ...................................................................................................... 11

OTHER ASSESSMENT METHODS............................................................................................. 11

10

EXAMINATION ............................................................................................................................. 11

11

FREQUENTLY ASKED QUESTIONS .......................................................................................... 11

12

CONCLUSION .............................................................................................................................. 11

13

APPENDIX A: THE ASSIGNMENTS ........................................................................................... 12

ASSIGNMENT 1 ....................................................................................................................................... 12
STUDY UNIT 1: THE BUSINESS WORLD AND BUSINESS MANAGEMENT ...................................... 12
STUDY UNIT 2: ENTREPRENEURSHIP ................................................................................................. 13

MNB1501/101
STUDY UNIT 3: ESTABLISHING A BUSINESS ..................................................................................... 15
STUDY UNIT 4: THE BUSINESS ENVIRONMENT ................................................................................. 16
ASSIGNMENT 2 ....................................................................................................................................... 17
STUDY UNIT 5: CORPORATE SOCIAL RESPONSIBILITY .................................................................. 17
STUDY UNIT 6: PLANNING .................................................................................................................... 18
STUDY UNIT 7: ORGANISING ................................................................................................................ 20
STUDY UNIT 8: LEADING ....................................................................................................................... 22
STUDY UNIT 9: CONTROLLING THE MANAGEMENT PROCESS....................................................... 24

INTRODUCTION

Dear Student
Welcome to the Department of Business Management and specifically to the module MNB1501. We
trust that you will find this module interesting and stimulating.
The information supplied for MNB1501 will include the following tutorial matter:
Tutorial letters 101 and 301
Study guide
For some of you this will be the very first time you are being introduced to the business world, and some
of the concepts will be completely new. For others, who may have studied Business Management (or
Business Economics) at school, or who have worked for some time in the business world, these
concepts may be a boring repetition. To these students we would say: please bear with us in the
knowledge that we have a vast range of students from all walks of life studying this subject.
Some of this tutorial matter may not be available when you register. Tutorial matter that is not
available when you register will be posted to you as soon as possible, but is also available on
myUnisa.
It is important that students become familiar with the myUnisa tool. We use the myUnisa tool extensively
to communicate with students. Furthermore, the myUnisa tool makes it easier for students to
communicate with the university, with their lecturers and with other students about their learning and
challenges. Students need to register on myUnisa first in order to submit assignments, access library
resources, download their study materials etc. myUnisa is also an important tool for students to
participate in activities, tasks and discussions around their module topics, their assignments, their marks,
and their examinations.

PURPOSE OF AND OUTCOMES FOR THE MODULE

2.1

Purpose

The purpose of the Business Management 1A paper is to give you an overview of what happens in the
business world, and more specifically how a business is managed. The tutorial matter is obviously only
an introduction to what management is all about, but we trust that you will gain sufficient insight, from
this tutorial matter, into the various business functions and that, in turn, you will be able to choose
suitable study courses.
Qualifying students can:

explain how business performance is related to strategic management.

analyse a business case study and identify issues related to the managerial tasks and skills.
differentiate between entrepreneurial and non-entrepreneurial approaches to business
management.
develop a basic business plan for a small to medium enterprise.

MNB1501/101
2.2

Outcomes

Specific outcome 1:
The learner will be able to demonstrate an understanding of the role of business in society and the
position of business management in the business world.
Specific outcome 2:
The learner will be able to identify an entrepreneur and explain its role in society.
Specific outcome 3:
The learner will be able to recognise how an organisation functions and how it is established.
Specific outcome 4:
The learner will be able to explain the term "business environment", examine its composition and
investigate aspects of environmental scanning.
Specific outcome 5:
The learner will be able to provide a broad overview of the corporate social responsibilities of South
African organisations.
Specific outcome 6:
The learner will be able to analyse planning as a management task relevant to all management levels.
Specific outcome 7
The learner will be able to describe organising as a management task, including modern structuring and
design.
Specific outcome 8
The learner will be able to analyse leading as a management task, by focusing on culture, motivation
and communication.
Specific outcome 9
The learner will be able to discuss control as a management task aimed at continuously improving the
organisation's performance.

LECTURERS AND CONTACT DETAILS

3.1

Lecturers

You may contact your lecturers by post, email, telephone or on the myUnisa website.
Email address of lecturers:
Ms N Lenhard:
Ms N da Silva-Esclana:
Prof S Rudansky-Kloppers:

lenhan@unisa.ac.za
dsilvn@unisa.ac.za
rudans@unisa.ac.za

For academic enquiries, please use the following number: (012) 429 4239.
Online address: http://my.unisa.ac.za
NB: Please make an appointment beforehand if you want to visit a lecturer personally. Lecturers
often have prior appointments, a fact which may cause disappointment if you arrive at the
University without having first arranged an interview.
Our physical location on campus is:
Fourth level, AJH vd Walt Building

Main Campus, Muckleneuck, Pretoria

3.2

Department

For administrative enquiries, please use the following number: (012) 429 4220; OR email address:
busman@unisa.ac.za

3.3

University

Contact addresses of the various departments and general Unisa contact details are included in My
studies @ Unisa, which you received with your study package.

NB: When phoning Unisa, always have your student number available.
4

MODULE-RELATED RESOURCES

4.1

Prescribed books

THE PRESCRIBED BOOKS

The prescribed books (which you must purchase yourself) for both modules (MNB1501 &
MNB1601) are:
1. Du Toit, GS, Erasmus, BJ & Strydom, JW. 2010. Introduction to Business Management. 8th
edition. Cape Town: Oxford University Press.
2. Strydom, JW & Rudansky-Kloppers, S. 2010. Multiple-choice questions for Introduction to
Business Management. Cape Town: Oxford University Press.
3. Rudansky-Kloppers, S. 2012 Business Cases. Cape Town: Oxford University Press.
A study guide will be issued to you upon registration (also available on the myUnisa website). The study
guide is intended to guide you in your study of Introduction to Business Management. Examination and
assignment questions are, however, based mainly on the prescribed books.
Since both MNB1501 and MNB1601 are based almost entirely on the prescribed books, you are urged to
obtain these books as soon as possible.

NB: The prescribed books cannot be ordered from Unisa. Please refer to the list
of official booksellers and their addresses in the My studies @ Unisa brochure.
4.1.1

Which parts of the prescribed books must I study?

Please note that the prescribed books mentioned above will be used for both MNB1501 and MNB1601.
For MNB1501 you need to study the following chapters in the prescribed books:
Chapters 1 9 (Chapters 10 - 14 will be covered in MNB1601.) You also need to study all of the
topics in your study guide. You will need to consult the case-study book Business Cases when
answering the multiple choice questions in your assignments.

4.2

Recommended books

There are no recommended books for this module.

MNB1501/101
5

STUDENT SUPPORT SERVICES FOR THE MODULE

Important information appears in your my Studies @ Unisa brochure.

MODULE-SPECIFIC STUDY PLAN

Use your my Studies @ Unisa brochure for general time management and planning skills. The following
is a recommended time schedule which can be used as a guideline for studying this module:
ACTIVITY
Reading of relevant chapters in the
prescribed books
Reading of study guide
Doing of activities in the study guide
Doing of the assignments
Studying of the prescribed books and
study guide and making of summaries
Final revision
TOTAL

HOURS
40
10
10
5
50
5
120

MODULE PRACTICAL WORK AND WORK-INTEGRATED LEARNING

None.

ASSESSMENT

8.1

Assessment plan

8.2

General assignment numbers

Assignments are numbered consecutively per module, starting from 01. MNB1501 consists of
assignment 01 and assignment 02.

8.2.1 Unique assignment numbers

Different unique numbers are allocated to the two assignments for the first and the second
semesters. Please make sure that you provide the correct unique number on the mark-reading sheet.
For instructions on how to use the mark-reading sheet, refer to section 8.5 of the tutorial letter.
The compulsory assignments for 2013 for the module MNB1501 are set out in Appendix A of this tutorial
letter.

8.2.2 Due dates for assignments

Assignment First semester
number
Due Date

Second semester
Due Date

Unique
Unique
number
number
1
22 March 2013
384804
22 August 2013
256278
2
19 April 2013
253321
12 September 2013 299609
Please note: Students registering for MNB1501 for the first time (in any
semester) may not submit the assignments for MNB1601 in the same semester;
the computer will reject such an assignment. It is the policy at UNISA that
students need to pass MNB1501 first before registering for MNB1601.
7

There is only one exception, and this is for postgraduate students ONLY.
Postgraduate students are allowed to be registered for both MNB1501 and
MNB1601 in the same semester. These students may submit assignments for
both MNB1501 and MNB1601 in the same semester.
8.3

Submission of assignments

Students may submit written assignments and assignments completed on mark-reading sheets either by
post or electronically via myUnisa. Assignments may not be submitted by fax or e-mail. Please forward
your assignments to the Assignment Department and not to the Department of Business Management.
This will ensure that your assignment is recorded. An assignment sent to the Department of Business
Management will be returned unmarked.
For detailed information on assignments, please refer to the my Studies @ Unisa brochure, which you
received with your study package.
Internet users can submit assignments via the myUnisa website.
To submit an assignment via myUnisa:
Go to http://www.my.unisa.ac.za.
Ensure that you have set up your myLife email account.
Log in with your student number and password.
Select the module from the orange bar.
Click on assignments in the left menu.
Click on the assignment number you want to submit.
Follow the instructions.

8.4

Multiple choice questions

The examination at the end of the semester will consist only of multiple-choice questions. There are no
essay questions in the examination.
The multiple-choice questions are not marked negatively: in other words, marks are not deducted for
wrong answers. All questions carry equal marks.
Shortly after the closing date of assignments, you will receive a computer printout giving your answers,
the correct answers, and your marks for the assignment. Soon after that, you will also receive a tutorial
letter with detailed comments on each question, explaining why one particular option was correct and
why the other options were wrong.
NOTE:
We wish to urge you in the strongest possible terms that when you answer multiple-choice questions, you
write out your own reasoning for each option. In other words, if you decide that the correct answer to a
particular question is option 3, you must then write down why you think option 3 is correct, and why you
think options 1, 2 and 4 are wrong. Write your reasons on a separate sheet of paper and keep them for
reference and comparison with our reasons and explanations.

Do not send your written explanations to us. We

will not be able to mark them. They are only for
your own use.
Compare your answers and reasoning with our explanations as soon as you receive our explanations.
Don't make the mistake of putting this off until just before the examination.

MNB1501/101
8.5

The use of the mark-reading sheet

When submitting assignments, you must send ONLY your mark-reading sheet in an A4 envelope. Please
do not include the cover sheet with your mark-reading sheet.

NB: Only mark-reading sheets may be used to answer the

questions for assignments. You must ensure that Unisa supplies
you with enough mark-reading sheets.
Please DO NOT FOLD your mark-reading sheet. Always send it in
the A4 envelope provided for that purpose.
All students are issued with an assignment pad, and some
assignment cover sheets, regardless of the number of subjects for
which they have enrolled. You do not need these pads or cover
sheets for Business Management 1A.
Answers on a sheet of paper cannot be marked by the computer.
Send only the mark-reading sheet in the A4 envelope to the
Assignment Department.
Instructions on the use of mark-reading sheets for answering multiple- choice questions are contained in
the 2013 My studies @ Unisa brochure. Read these instructions CAREFULLY and make sure you follow
them STRICTLY to avoid making unnecessary mistakes.

8.6

Faulty mark-reading sheet

Although you are given detailed instructions on how to complete mark-reading sheets, each semester a
number of students continue to make one or more of the following mistakes:

The mark-reading sheet is torn or folded.

The bar-code sticker is stuck onto the mark-reading sheet.
Student numbers are completed incorrectly, or not entered at all.
The unique assignment number is not completed or is entered incorrectly.
The blocks are marked with ink instead of with an HB pencil.
The pencil marks extend across the edges of a block, or the line is drawn under the block
instead of inside it.
The pencil marks are drawn diagonally across the block, or a cross is drawn, instead of a
horizontal line.
A line is drawn through the unused part of the mark-reading sheet. Please note: No
other marks except your answers must be made on the mark-reading sheet.
The mark-reading sheet is stapled to other papers.
Corrections are made with Tippex, or mistakes are erased in such a way that a dark
blotch is left. (That is why you should use only an HB pencil.)

We wish to stress that in all these cases, the mark-reading sheet simply cannot be processed by the
computer, and in certain instances may even damage the marking equipment.

Mark-reading sheets which 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.

8.7

Assignments

The University has a policy of compulsory assignments in all modules for 2013. Both assignments 01
and 02 for MNB1501 are thus compulsory assignments. You must submit ASSIGNMENT 01 in order to
obtain admission to the examination. Admission will be obtained by submitting the assignment and
not on the strength of the marks you obtain for it. Failure to submit Assignment 01 will mean that you will
not be admitted to the examination, regardless of whether or not you submit Assignment 02.
You will receive feedback on both the assignments in Tutorial Letter MNB1501/201/3/2013.

VERY IMPORTANT
Please ensure that your assignments reach us on or before the due dates. You will
not be admitted to the examination if an assignment is submitted later than the due
dates. Please do not phone us with a request to be admitted to the examination if you
have not submitted an assignment, or if you submitted it later than the due date.
The main purpose of the assignments is to encourage you to study the prescribed book, to read certain
sections over and over again, and to think about the tutorial matter in terms of its practical application.
With these remarks in mind, the questions may sometimes be difficult, and some may seem ambiguous.
The idea is not to trick you or catch you out, but to make you think.
Formative assessment for MNB1501 takes place through a year mark system. Both assignments are
compulsory. You will be allocated a mark for Assignment 01 and a mark for Assignment 02. The
best\highest mark will be taken as your year mark. Your final assessment mark for this module will
therefore be a combination of the assignment mark and the examination mark.
The assignment mark (the best\highest mark of the two assignments) will contribute a maximum of 10%
to the final assessment mark for the module, while the examination mark will contribute 90%.
Irrespective of the year mark obtained, a sub minimum of 40% must be obtained in the examination. You
will therefore not pass the module if your examination mark is less than 40%. Please study the following
examples to see how the assignment mark (the highest mark of the two assignments) will contribute to
the final assessment mark:
Example 1:
If you get an assignment mark of 50%, this mark of 50% is then multiplied by 0,1 which equals 5% of the
final assessment mark. If the learner obtains 35 out of a possible 70 marks in the examination (50%),
this percentage is then multiplied by 0,9 which equals 45% of the final assessment mark. The
assignment mark and the examination mark are then combined (5% + 45%) to give a final assessment
mark of 50% for the module.
Example 2:
If you get an assignment mark of 60% this mark, multiplied by 0,1 gives 6% of the final assessment
mark. If the learner then obtains 44 out of 70 marks (or 63%) in the examination, this figure is then
multiplied by 0,9 to give 56.7%. The two results are then combined to give a final assessment mark of
63% (6% + 56.7%) for the module.

10

MNB1501/101
8.8

Extension for the 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. You are therefore strongly advised to post
your assignment approximately 14 days before the due date.
The due date is the date on which your assignment must reach Unisa, not the date on which you
must post it.

OTHER ASSESSMENT METHODS

As an additional means of assessment, visit the myUnisa website to view and complete the Selfassessment questions which will be uploaded on a periodic basis. Announcements will be made on
myUnisa to inform students as the exercises are uploaded.

10

EXAMINATION

The module has a two-hour examination consisting only of multiple-choice questions. Further details
about the examination will be forwarded to you at a later date. Students can also refer to the my Studies
@ Unisa brochure for general examination guidelines and examination preparation guidelines.

11

FREQUENTLY ASKED QUESTIONS

Please refer to my Studies @ Unisa for more information. Students can also access frequently asked
questions from the myUnisa website.

12

CONCLUSION

If you experience any problems in your studies during the semester, please do not hesitate to contact us
in writing, by telephone, or in person (by appointment).
We wish you everything of the best in your studies!
THE LECTURERS: BUSINESS MANAGEMENT 1A
DEPARTMENT OF BUSINESS MANAGEMENT
TELEPHONE: (012) 429 4239
UNISA

11

13

APPENDIX A: THE ASSIGNMENTS

Both Assignments 01 and 02 are compulsory.

ASSIGNMENT 1
Assignment First semester
number
Due Date
1

22 March 2013

Unique
number
384804

Second semester
Due Date
22 August 2013

Unique
number
256278

Assignment 01 covers chapters 1 to 4 in the prescribed books. The assignment consists of 20 multiplechoice questions. Use a mark-reading sheet to answer and submit the assignment. You may also use
the myUnisa system to submit it.

Note:
You must submit this assignment in order to obtain entrance to the examination.
Although the assignment consists of multiple-choice questions only, you should note the different
formats of the questions as you can expect similar questions in the examination.

STUDY UNIT 1: THE BUSINESS WORLD AND BUSINESS MANAGEMENT

QUESTION 1
Which of the following statements on the economic principle are correct?
a
b
c
d

Ensuring the highest possible satisfaction of needs with scarce resources is known as the
economic principle.
The economic principle refers to a businesss endeavour to keep its input costs as high as
possible.
Businesses that apply the economic principle try to achieve the highest possible income.
The economic system is not subject to the economic principle.
1
2
3
4

a
acd
bcd
cd

Read case study 2 The airline industry developing value-based competition in the South African
airline market (page 13 in your prescribed book Business Cases) and answer questions 2 to 4.
QUESTION 2
Part of Kululas mission statement states where possible, we provide our staff with the best
opportunities to develop their skills, and take their abilities to new heights in the service of our
customers. Kulula therefore satisfies the ________________ of their employees.
1
2
3
4
5

12

Physiological needs
Security needs
Social needs
Esteem needs
Self-realisation needs

MNB1501/101
QUESTION 3
The resources used by low-cost airlines include _________________.
a
b
c
d

natural resources
human resources
capital resources
entrepreneurship/management
1
2
3
4

abcd
ab
abc
bcd

QUESTION 4
Sally buys cocoa from South America and uses it to make 90% dark chocolate that she sells in her
stores located throughout South Africa. Which element of business does Sally deal with here?
1
2
3
4

Human activities
Transformation
Exchange
Profit

Read case study 4 MXit Using disruptive techonology to build new mobile social networks
(page 56 in your prescribed book Business Cases) and answer questions 5 to 7.
QUESTION 5
Which need of its customers did MXit focus on satisfying?
1
2
3
4

Self-realisation needs
Esteem needs
Social needs
Security needs

STUDY UNIT 2: ENTREPRENEURSHIP

QUESTION 6
When Herman Heunis came up with the idea of the MXit concept, he first had to evaluate whether his
business venture would be viable. He therefore needed to __________________.
1
2
3
4

conduct a feasibility study

compile a business plan
identify whether he would have access to resources
clarify whether he had what it takes to start the new business

13

QUESTION 7
As an entrepreneur, Herman Heunis needed the ability to evaluate the offering of his business and
features, and to determine how he would satisfy customers needs and wants. Which management skill
is referred to here?
1
2
3
4

Human resources skills

Marketing skills
Planning skills
Strategic skills

QUESTION 8
Which of the following are fundamental requirements for a good investment opportunity?
a
b
c
d

There must be a clearly defined market need for the product or service.
The opportunity must have the potential to grow.
The entrepreneur must have ample experience before investing in a new venture.
The opportunity must be rewarding to the investor and/or the entrepreneur.
1
2
3
4

ab
abc
abd
bcd

QUESTION 9
The entrepreneurial process is the process of identifying, creating or sensing an opportunity where
others do not see it. Arrange the five phases of the entrepreneurial process in the correct order.
a
b
c
d
e

Resources
Feasibility
Opportunities and ideas
Entrepreneurial activities and skills
Business plan
1
2
3
4

abcde
badec
dacbe
ecdab

QUESTION 10
Which of the following statements about franchising are correct?
a
b
c
d

Franchisees have the freedom to experiment, operate and market their business based
on their own vision.
Franchisees must usually adhere strictly to the plans of the franchisor.
Franchisors usually fall in the medium sized to large business category.
The franchisor is an entrepreneur.
1
2
3
4

14

abcd
bcd
abc
ad

MNB1501/101
STUDY UNIT 3: ESTABLISHING A BUSINESS
QUESTION 11
Which of the following are characteristics of a private company?
a
b
c
d

The number of shareholders is limited to 50 people.

Members of the general public may apply for shares in the company.
The name of a private company has to end with the words (Pty) Ltd.
The transferability of shares in the company is limited.
1
2
3
4

abcd
abd
acd
bcd

Read case study 4 MXit Using disruptive technology to build new mobile social networks
(page 56 in your prescribed book Business Cases) and answer questions 12 and 13.
QUESTION 12
What form of enterprise is MXit?
1
2
3
4

A public company
A partnership
A close corporation
A private company

QUESTION 13
Which characteristic is applicable to an establishment such as MXit?
1
2
3
4

There must be at least two directors in the establishment.

MXit can list its shares on the stock exchange.
Shares are freely transferable in an establishment such as MXit.
The articles of association must contain some restriction on the transferability of its
shares.

QUESTION 14
Thandi is an entrepreneur and wants to open a new venture. Thandi knows she needs to write up a
detailed business plan in order to obtain financing from the bank. Which two of the following are
considerations that Thandi needs to take into account to determine the amount of planning she needs
when writing up the business plan?
a
b
c
d

Style and ability

Capital
The micro-environment
The level of uncertainty
1
2
3
4

ab
ac
bc
ad

15

QUESTION 15
In which section of Thandis business plan will she describe the businesss customers and type of
competition that the business will face?
1
2
3
4

Marketing plan
Financial plan
Management plan
Operating plan

STUDY UNIT 4: THE BUSINESS ENVIRONMENT

Read case study 5 Edcon Retail leaders (Page 68 in your prescribed book Business
Cases and answer questions 16 to19.
QUESTION 16
Woolworths, Mr Price, Ackermans, Pep, Truworths and Foschini are all competitors of Edcon and thus
part of the ________________ environment.
1
2
3
4

market
macro
physical
micro

QUESTION 17
Edcons vision and mission is consolidated into the Edcon purpose statement. These are all variables in
the ________________ environment and are under _____________ control of management.
1
2
3
4

market; direct
macro; indirect
physical; indirect
micro; direct

QUESTION 18
The Edcon logo and brand are referred to as the _________________ within the company.
1
2
3
4

tanglible resources
intangible resources
organisational capabilities
fixed assets

QUESTION 19
When Edcon sets goals, this can be viewed as the starting point of the ______________ process.
1
2
3
4

16

control
planning
leading
organising

MNB1501/101
QUESTION 20
Which one of the following statements concerning the business environment is incorrect?
1
2
3
4

Management has complete control over the micro-environment.

The market environment includes both suppliers and competitors.
The market environment exerts no influence on the micro-environment.
An enterprises mission and goals are variables within the micro-environment.

ASSIGNMENT 2
Assignment First semester
number
Due Date
2

19 April 2013

Unique
number
253321

Second semester
Due Date
12 September 2013

Unique
number
299609

Assignment 02 covers chapters 5 to 9 in the prescribed books. The assignment consists of 30 multiplechoice questions. Use a mark-reading sheet to answer and submit the assignment. You may also use
the myUnisa system to submit it.

STUDY UNIT 5: CORPORATE SOCIAL RESPONSIBILITY

QUESTION 1
What is included in the triple bottom line of sustainability and corporate social responsibility?
a
b
c
d
e

Public relations
Financial issues
Supply issues
Social issues
Environmental issues
1
2
3
4

abcde
abc
de
bde

QUESTION 2
Sustainable development will be most effective and efficient in a company such as SAB if
________________.
1
2
3
4

there are strict rules in companies.

management develop policies regarding sustainable development.
sustainable development is integrated into the day to day operations of the business.
personnel receive training regarding sustainable development.

17

QUESTION 3
SABS soul investment includes ad hoc donations and support for disaster and humanitarian relief. A
budget is allocated to address welfare issues and is purely an outreach response to day-to-day requests
for donations and disaster relief. SABs commitment to invest its profits in community-based projects is
an example of the company being involved in_________________.
1
2
3
4

corporate citizenship
corporate social investment
the triple bottom line
corporate scandals

QUESTION 4
Edcon applies corporate governance in order to ensure sustainability of the organisation and its
business. These principles and practices are applied in line with the ________________.
1
2
3
4

Kyoto Protocol
King 3 report
Global Reporting Initiative (GRI)
JSE SRI index

QUESTION 5
There are several ways in which the board can determine the corporate social responsibility policy.
Woolworths has one of the leading corporate social responsibility policies that is aligned to its vision,
mission, values and guiding principles. Woolworths therefore made use of the __________ to establish
its corporate policy.
1
2
3
4

triple bottom line

value-based system
King 3 report
ethical vision guidelines

STUDY UNIT 6: PLANNING

QUESTION 6
Match the term in column A with the correct description in column B.
Column A
a. Mission
b. Organisational goal

c. Management by objectives
d. Vision
1
2
3
4

18

a (iv) b (i) c (iii) d (ii)

a (iii) b (iv) c (i) d (ii)
a (ii) b (iv) c (i) d (iii)
a (iii) b (i) c (iv) d (ii)

Column B
(i) A goal-setting technique whereby managers and employees
jointly define goals for the business.
(ii) To become the most safe, consistent, reliable and profitable of
the train operating franchises in a climate that respects different
views and where people need not be afraid to be open and
honest.
(iii) The purpose as set out by the management of the organisation.
(iv) A specific achievement to be attained at a specific future date.

MNB1501/101
QUESTION 7
Goals are influenced by ____________________.
a
b
c
d

the mission of the organisation

the business environment
managements values
the experience of management
1
2
3
4

ab
abc
bcd
All of the above

Read the scenario below and answer questions 8 and 9.

Kulula is a budget airline in South Africa and forms part of the British Airways (BA) group. It began
operations in 2001 and became known for its low-priced tickets, friendly service and memorable and
often funny ads. In its companys mission statement, Kulula declares that they will "help people lighten
up." True to its declaration, Kulula quickly developed a reputation for flight crews who dispensed humour
and jokes as well as beverages and snacks. Kulula advertisements, too, continue to feature humour.
Adapted from an article by Chris Moerdyk
Source: http://www.bizcommunity.com/Article/196/11/12067.html and http://www.ehow.com/about_6693868_kululainformation.html.

QUESTION 8
Which one of the following options contains the correct steps for Kulula to follow in the planning
process?
1
2
3
4

Develop alternative plans; evaluate alternative plans; select a plan; implement the plan;
do reactive planning; establish goals.
Do reactive planning; establish goals; develop alternative plans; evaluate alternative
plans; select a plan; implement the plan.
Establish goals; develop alternative plans; evaluate alternative plans; select a plan;
implement the plan; do reactive planning.
Establish goals; develop alternative plans; evaluate alternative plans; select a plan; do
reactive planning; implement the plan.

QUESTION 9
A plan for achieving Kululas set goals is seen as a ___________________.
1
2
3
4

desired future state

blueprint
the purpose statement
good idea

19

QUESTION 10
Planning does not only have benefits, but also costs. Which of the following are costs of planning?
a
b
c
d
e

Rigidity
Control
Time consuming
Reduces change
Replaces intuition
1
2
3
4

abc
ab
ace
abcde

QUESTION 11
The mission statement spells out the mission or overarching goal of the organisation. In the mission
statement, the organisation answers the following questions:
1
2
3
4

What is our business? Who are our employees (labour force)?

What is our business? Who are our customers (markets)?
What are the strategic goals of our business? What is our vision?
What are the strategic goals of our business? What are our products?

QUESTION 12
An enterprise taking over a competitor in order to eliminate the competition is an example of
__________________.
1
2
3
4

diversification
horizontal integration
innovation
vertical integration

STUDY UNIT 7: ORGANISING

Read case study 6 The dilemmas at NCX Pharmaceuticals (page 82 in your
prescribed book Business Cases) and answer questions 13 and 14.
QUESTION 13
NCX Pharmaceuticals was faced with a crisis situation in 2008, and therefore top management decided
to decentralize operations and concentrate attention on the customer. This means that
_________________.
1
2
3
4

20

decision-making power and authority are retained at the higher levels of management
decision-making power and authority are delegated as far down in the chain of command
as possible
decision-making power and authority are delegated only to middle management
decision-making power and authority are delegated only at the lowest levels of
management

MNB1501/101
QUESTION 14
Ringane (CEO of NCX Pharmaceuticals) was of the view that managers at NCX needed to improve their
management skills and provided a list of skills to the Human Resources Development Manager, with the
instruction that all managers should receive management skills training. Ringane has
___________________ authority over the Human Resources Development Manager.
1
2
3
4

staff
indirect
line
supplementary

Read case study 5 Edcon Retail leaders (page 68 in your prescribed book Business
Cases) and answer question 15.
QUESTION 15
Edcon is organized into three divisions namely the Departmental Store Division, the Discount Store
Division and CNA Division. Edcon is departmentalized according to __________________.
1
2
3
4

function
location
customer
product

QUESTION 16
_________________ is where the scope of the existing job is extended to give a broader range of
responsibility, plus extra knowledge and skills development.
1
2
3
4

Job enrichment
Job specialisation
Job rotation
Job enlargement

QUESTION 17
Which of the following spans of management are appropriate for a business that is complex, needs a
high degree of interaction and has a supervisor who has little skill and competence?
a
b
c
d

Narrow structure
Broad structure
High structure
Flat structure
1
2
3
4

ab
bc
bd
ac

21

QUESTION 18
Specialisation became part of the organising process because _________________.
1
2
3
4

labour productivity started declining

the use of assembly lines increased
the specialized skills of individuals increased
of constant pressure to split up the total task into smaller units

STUDY UNIT 8: LEADING

Read case study 5 Edcon Retail leaders (page 68 in your prescribed book Business
Cases) and answer question 19.
QUESTION 19
In order to motivate employees Edcon offers competitive remuneration packages and recognition
schemes. Edcon also offers performance incentives that are based on the individuals performance.
Edcon therefore uses ______________ power to motivate their employees.
1
2
3
4

coercive
legitimate
referent
reward

Read case study 6 The dilemmas at NCX Pharmaceuticals (page 82 in your prescribed book
Business Cases) and answer question 20.
QUESTION 20
As CEO of NCX Pharmaceuticals, Arnold Ringane has ________________ power and has the right to
insist the employees do their work and the right to discipline or dismiss if they fail or comply.
1
2
3
4

legitimate
coercive
referent
expert

QUESTION 21
Work maturity of employees determines the best leadership style for a particular situation. To which
leadership theory does this refer to?
1
2
3
4

22

Trait theory
Contingency theory
Behavioural theory
Situational leadership model

MNB1501/101
QUESTION 22
The obligation to achieve organisational goals by performing required activities. This refers to which one
of the following components of leadership?
1
2
3
4

Authority
Power
Accountability
Responsibility

QUESTION 23
Which of the following statements on aspects of leadership are correct?
a
b
c
d

Authority gives a leader the right to give commands to subordinates.

Authority denotes the right of a leader to demand actions from subordinates.
Authority denotes the ability of a leader to influence the behaviour of others without
necessarily using his or her authority.
Responsibility is a managers ability to influence his or her employees behaviour.
1
2
3
4
5

ab
abd
acd
bcd
abcd

QUESTION 24
Which one of the following describes a group?
1
2
3
4

Two or more individuals who regularly interact with each other and who work for a
common purpose.
A small number of employees with complementary competencies who work together on a
project.
All members are dependent on each other because the output of one member becomes
the input of another member.
Positive synergy, meaning that performance can be greater than the sum of the
performance of individual team members.

23

STUDY UNIT 9: CONTROLLING THE MANAGEMENT PROCESS

QUESTION 25
Thapelo owns a big furniture company called Fine Furniture and has been in the business for over 10
years. He understands how important it is to use control procedures to ensure that they are progressing
towards their goals, and that their resources are being used properly and productively. He realises that a
control process is necessary for the following reasons:
a
b
c
d

Control is the first step in the business management process and is linked with planning,
organising and leading.
Control helps companies adapt to environmental change.
Control is only necessary in large organisations that have complex networks and narrow
structures.
Control helps minimize costs.
1
2
3
4

ab
ac
bc
bd

QUESTION 26
Thapelo understands that every organisation needs a control process because even the best-laid plans
may go wrong. Place the following steps of the control process in the correct order:
a
b
c
d

Thapelo needs to measure the actual performance and ensure that the organisation
collects information and reports on actual performance on a continuous basis.
Thapelo needs to determine the need for corrective action and needs to ensure that
deviations do not recur.
Thapelo needs to establish performance standards at strategic points within the business.
Thapelo needs to determine the performance gap between the performance standard and
actual performance.
1
2
3
4

cadb
cdba
acdb
adbc

QUESTION 27
In order for a control system to be effective, Thapelo tells his staff that their control system needs to be
able to accommodate change. The characteristic that Thapelo is referring to is called
___________________.
1
2
3
4

24

integration
flexibility
accuracy
timeliness

MNB1501/101
QUESTION 28
When Edcon decides that they want to capture 30% of the childrens clothing market, this refers to step
______________ of the control process.
1
2
3
4

one
two
three
four

QUESTION 29
When Edcon determines the difference or performance gap between the 30% market share which they
aimed to capture and the actual market share which they captured, this refers to step
________________ of the control process.
1
2
3
4

one
two
three
four

QUESTION 30
Sophie has a manufacturing company. She wants to keep inventory costs as low as possible provided
the method she uses does not cause shortages or delay the manufacturing process. Which of the
following control systems can she use in order to control her inventory?
a
b
c
d

EOQ (economic ordering quantity)

ratio analysis
performance measurement
just-in-time (JIT)
1
2
3
4

ab
cd
ad
bc

25