CASE STUDY QUESTIONS

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DIPLOMA IN BUSINESS MANAGEMENT 1ST YEAR

DIPLOMA IN HUMAN RESOURCES MANAGEMENT 1ST YEAR

MODULE 1, 2 & 3: INTRODUCTION TO MANAGEMENT, PLANNING AND ORGANISING

& LEADERSHIP

SUMMATIVE ASSIGNMENT

ASSIGNMENT NO: MAN631-1-2

BUSINESS MANAGEMENT TRAINING COLLEGE SOUT H AF RIC A’S MOST PR EST IGIOU S DIST ANC E EDU C AT ION BU SIN ESS COLLEGE

147 Second Road - Chartwell - Fourways | Private Bag X100 - Bryanston - 2021

Tel: 010-010-0936 | Fax: 086-639-4687 | E-mail [email protected]

www.BMTColl ege.edu.z a

2014 First Edition - First Print February 2014

No part of this publication may be reproduced, stored in a retrieval system,

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photocopying, recording, or otherwise, without the prior written

permission of the copyright owner, BMT College.

Learner Instructions and Guidelines

1. Remember to keep a copy of your answers.

2. Read the learner instructions carefully before you start with your assignment.

3. DO NOT leave out any questions! Please contact your study advisor if you do not

understand a question.

4. Make sure to indicate the assignment number on the front of your assignment cover.

5. The suggested time to complete a module is 3 months.

6. NB!! Due to the fact that evidence provided has to be current, this assignment is ONLY valid

for 6 months from the date of receipt. If you take longer than 6 months to complete this

assignment and module, please contact the College to get the latest assignment for this

module.

7. Please check that you received the correct assignment before you start with the

assignment. The assignment number and module number is indicated on the first page.

BMT College takes no responsibility for students who complete incorrect assignments. If

you received an incorrect assignment contact the college so that this can be rectified.

Question 1: Select from column A the correct answer to match column B.

Match the management functions in column A with the descriptions in column B:

A Statement: B Nr: Your Answers:

a) Organising. 1.1 Determines an organisation's vision, mission and

goals. 1.1

b) Controlling 1.2 Monitoring progress and taking corrective steps to

reach the mission and goals. 1.2

c) Planning. 1.3 Motivating and directing employees. 1.3

d) Leading 1.4 Grouping together activities and allocating

resources . 1.4

/4 Total question 1

Question 2: Select from column A the correct answer to match column B.

Match the management levels in column A with the descriptions in column B:

A Statement: B Nr: Your Answers:

a) Top managers 2.1 Implementing policies, plans and strategies. 2.1

b) Middle management 2.2 Spend the greatest portion of their time on leading. 2.2

c) First line managers or

supervisors

2.3 Develop longer-term goals and strategies to reach

them. 2.3

/3 Total question 2

Question 3: Select from column A the correct answer to match column B.

Match the managerial roles in column A with the descriptions in column B:

A Statement: B Nr: Your Answers:

a) Interpersonal 3.1 Acts as spokesperson for the department 3.1

b) Decision making 3.2 Acts as negotiator about goals, standards of

performance and resources. 3.2

c) Information 3.3 Act as figurehead and leader. 3.3

/3 Total question 3

SUMMATIVE ASSESSMENT 1 (MODULES 1, 2 & 3): MANAGEMENT PRINCIPLES

SECTION A: SHORT QUESTIONS

Question 4: Read each statement carefully then state true or false in the space provided.

Nr: Statement or question: Your Answers

4.1 A manager is considered competent if he or she has all the relevant knowledge

that is required to do the job of a manager.

4.2 Ecological forces influenced the evolution of management theories.

4.3 Frederick Taylor conducted the Hawthorn studies in the late 1800’s.

4.4 Henri Fayol formulated 14 principles for effective management

4.5 The Hawthorne effect refers to the negative effects poor light has on workers’

performance

4.6 Six Sigma is a business improvement methodology that focuses on understanding

and managing workers’ requirements.

4.7 The individual organisation has limited control over the components of the macro

environment but can have a strong influence on some of the variables.

4.8 Environmental scanning is necessary to determine whether factors in the

environment constitute a threat to the organisation’s mission, vision and goals.

4.9 When an organisation has to decide whether to centralise or decentralise

authority, the skills of the lower-level managers have to be considered.

4.10 Tactical planning involves aligning the organisation’s internal environment with the

threats and opportunities caused by the external environment.

/10 Total question 4

Question 5: Choose the CORRECT answer by selecting a or b.

Nr: Statement or question: Your

Answers

5.1

‘Ethnocentrism’ refers to the belief that …

a) One’s own group and culture must be placed first in decision making.

b) One’s own group and culture is inherently superior to other cultures and groups.

5.2

Job opportunities is an environmental ...

a) output or

b) Input.

5.3

The social environment is part of the ...

a) Micro environment

b) Macro environment

5.4

The changes in the environment impacts on management functions and eventually on the

a) performance or

b) culture of the organisation.

5.5

In the controlling function managers monitor

a) remuneration

b) progress.

/5 Total question 5

Question 6: Choose the appropriate word or concept for the following statements. Select only

one word from the list below for each statement and write down the corresponding letter (a/b/c

etc.) in the answer column.

a. Liquidity

b. Decision-making conditions

c. Activity

d. Decision-making tools

e. Characteristics of useful information

f. Service

g. Leverage

h. Failure analysis, call centres.

i. Profitability

j. Administration

Nr: Statement or question: Your

Answers:

6.1 An organisation’s ability to meet its short-term obligations.

6.2 It looks at the source of the organisation’s capital.

6.3 The organisational function that is supported by office systems and personnel records.

6.4 It measures how well an organisation is using its resources.

6.5 It measures how well an organisation is managed.

6.6 Certainty, uncertainty, risk.

/6 Total question 6

Question 7:Listed below are the forces of change that drive the need for organisations to

change. Each one of these forces consists of certain components. Choose the appropriate word

or concept for the following set of components. Write down the corresponding letter (a/b/c etc.)

in the answer column.

Force of change:

a. Economic and market forces

b. Technological forces

c. International forces

d. Social forces

Nr: Components Your Answers:

7.1 Nepad, Common wealth of Nations, EU.

7.2 Business ethics, demographic trends.

7.3 Trade union activities, free trade globally, more countries join market.

7.4 New products, new and faster production, internet.

/4 Total question 7

Question 8: Choose the CORRECT answer by selecting a or b.

Nr: Statement or question: Nr: Your Answers

8.1 One of the reasons why organising is necessary is ...

a) departmentalisation or b) goal formulation 8.1

8.2 The narrowing-down of activities to simple, repetitive routines.

a) job design or b) job specialisation 8.2

8.3 People naturally __________ change.

a) embrace or b) resist 8.3

8.4 Managers can respond to change either through reactive change or

a) planned change or b) forced change 8.4

8.5

Control systems is an element of the ________ area of organisational change.

a) structure or

b) technology

8.5

8.6 Bureaucracy falls within the __________ area of organisational change.

a) structure or b) people 8.6

8.7 One of the reasons that people resist change is

a) Micro environment or b) Macro environment 8.7

8.8 One of the elements of the strategy area of organisational change is _______

a) corporate combinations or b) decision making 8.8

8.9

In organisational culture analysis (OCA), the condition that determines the sharing of power is ___________.

a) commitment or b) collaboration

8.9

8.10

The perception that a group of people has certain collective characteristics is

known as ____________.

a) stereotyping or b) generalisation

8.10

/10 Total question 8

Question 9: Fill in the missing words from the paragraph below:

Accountability…

Nr: Statement or question: Nr: Your Answers:

9.1 has its roots in the ____a____ management theories, a)

9.2 in the division of ____b____ into parts, and explicit job specification. b)

9.3 and in explicit job ____c_____. c)

9.4 Consistent with Taylor’s ____d____ management, d)

9.5 employees are deemed _____e_____ for the work under their control. e)

/5 Total question 9

TOTAL: SECTION A /50

SUMMATIVE ASSESSMENT 1 (MODULES 1, 2 & 3): MANAGEMENT PRINCIPLES

SECTION B : ESSAY QUESTIONS

Nr: Question: Mark:

10.

Discuss the three main environments that make up the management environment. Your discussion should include:

a. All the variables that make up each environment (14)

b. The level of control that the manager has over each environment (3)

c. The influences that these environments had on South African managers in the past 5 years (3)

11. Explain the main reasons why people generally resist change 10

12. Explain the main features of each of the five stages in group and team development. Also indicate what the main role of the team or group leader would be during each stage.

13. Discuss five of the characteristics of good corporate governance that were identified by the King II report.

14. Discuss the importance of the organising function in the management process. Refer to the necessity of organising to make the other management functions work effectively.

15.

Discuss the challenges for management in each of the following features of the ‘new organisation’:

a. Operating in a global economy

b. Virtual organisations

c. Flatter and leaner organisational structures

d. Flexibility

e. Workforce diversity

16.

Illustrate how the management functions vary between the different levels of management in terms of the responsibilities, competencies and roles of managers on these levels. Use the following format for your illustration:

/100

TOTAL:SECTION B

Top Middle Low

Planning

Organising

Leading

Controlling

SUMMATIVE ASSESSMENT 1 (MODULES 1, 2 & 3): MANAGEMENT PRINCIPLES

SECTION C : CASE STUDIES

CASE STUDY 1

ABC company initially supplied businesses with exceptional quality textiles. Later on they started to supply

businesses with professional quality uniforms and also sports gear. They provide their customers with quality

products and services on time and on budget to enhance the image and performance of their customers’ companies.

As the company grew, so did its workforce. From two people in a garage, their wholesale division has grown from servicing a small localised market in Cape Town, to one that today meets the requirements of clients in many other locations throughout South Africa. The current organisational structure is designed around the different products. Although each manager knows all the

other products quite well, they each are responsible for one type of product only: Tim is in charge of the industrial

uniform section, Sally overlooks the sportswear section and Heather runs the textile division. All three of them are

competent with their section, but Tim for instance would have liked to be more involved in the other sections as well.

To serve its widening markets the business needs flexible and well-trained staff that can recognise the needs of their

customers. The employees work in a wide range of roles in both store and non-store functions, such as:

 Customer Assistants on the shop floor either directly assisting customers or preparing orders for delivery to

customers who have ordered online.

 Department Managers leading a team of Customer Assistants

 Warehouse employees who help catalogue and store clothing and textiles.

 Office-based staff working in a range of functions at Head Office, including finance, purchasing, personnel or

marketing.

 Logistics staff who plan and carry out the distribution of products to stores.

Andy works in Sally’s department (sportswear) and manages a small team of customer assistants who must prepare

online orders for delivery. He expects them to liaise with the customers before setting up the order, to ensure

maximum client satisfaction. As the team members are still new, they lack the necessary experience and are not

willing to take on the responsibility of liaising with the customers themselves. Currently this all comes down to Andy,

who then does not have sufficient time for his managerial duties. He intends seeking advice in this regard.

Due to the business’s great success and customer demand, management have been thinking about establishing an

outlet in Durban. They have the opportunity to buy an existing warehouse in Durban for R 1,5 million. The other

option is to rather invest an amount of R 800 000 in a new product range.

ABC must make a decision: should they buy the existing clothing retailer or is it better to invest an amount of R 800

000 in a new product range.

They did some investigation into the probability of success and failure of each option, and possible results. With this

information at hand, they decided to use a decision tree to help them with this big decision. The estimated outcomes

and probabilities are as follows:

They have two options:

A: Buy an existing business for R 1.5 m. B: Invest in new product range R 800 000.

Successful option A will give 20% gain, failed option A will give 10% loss. There is a 40% chance of success and a

60% chance of failure for option A.

Successful option B will give 10% gain, 5% loss. There is a 50% chance of success and a 50% chance of failure for

option B.

QUESTIONS: CASE STUDY 1

Nr: Question: Mark:

17.

a. Draw up a decision tree to determine expected values for each option. Use the results to

decide which option to choose.

b. Identify the mission of ABC and translate it into at least 3 measurable, long-term goals.

c. Draw up a table or diagram to illustrate ABC business as a system that operates in a

specific environment, by identifying:

 inputs from the environment,

 processing of inputs and

 outputs to the environment.

18.

a. What type organisational structure does ABC have currently?

b. What are the disadvantages of this structure for this specific organisation?

c. The organisation has a vision of expanding the business and opening more branches in

different areas. Suggest a new structure for the organisation, that would fit in better with

their strategy. Motivate your choice.

19. Use the leadership cycle model to suggest the most effective leadership style for Andy. 10

Total case study 1 /30

CASE STUDY 2

Sportswear

Joe and Jane are customers of ABC’s. They own a sportswear retail shop. Their shop is in an area that has

changed over the last five years form a once vibrant business and retail hub with three large shopping centres to a

business environment focusing nowadays mainly on vehicle maintenance and support services.

The rental cost in the area is very competitive in comparison to other new shopping centres in the vicinity. Various

new and exciting shopping centres in the neighbouring suburbs have opened their doors. The business was

exceptionally successful, but has experienced an average annual drop in sales of 10% during the past four years.

Joe is convinced that the decline in turnover can be attributed to the drop in customer traffic in the shopping centre.

Competitors are opening new stores in other suburbs. There are currently two similar stores who are extremely

price competitive and provide a variety of goods at lower prices.

Joe has lowered the prices of their popular products since the beginning of last year. Although sales increased by

15% during the previous year, profit dropped by 5%. During December, two shop owners in the area were gunned

down.

QUESTIONS: CASE STUDY 2

Nr: Question: Mark:

20.

i. What external factors are influencing the success and survival of the sportswear shop in

the shopping centre?

ii. What factors should they have considered in their strategic planning?

/10 Total case study 2

CASE STUDY 3

(From Business Management—a value chain approach by Gideon Nieman and Alf Bennet)

When Eskom had started the shutdown of the Highveld power station in 1958, one of the small towns in the Free

State became a ghost town.

The shutdown caused the number of residents to shrink from 2000 to about 463.

Eskom stated that the power station could no longer continue to operate because of the rising labour and

maintenance costs.

QUESTIONS: CASE STUDY 3

Nr: Question: Mark:

21.

a. Explain what changing environmental conditions could have caused the shutdown of the

power station.

b. Explain from the viewpoint of a retailer, how environmental conditions caused the town to

be closed.

c. How do you think the changes in the environment affected the operations of a vegetable

farmer?

/10 Total case study 3

TOTAL:SECTION C /50

TOTAL OF ASSIGNMENT /200

SECTION A /50 %

SECTION B /100 %

SECTION C /50 %

TOTAL /200 %