typical ieb questions to know ( entreprenuer)

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2 Empowerment and Talent development Define: • Attracting and developing employees with the right skills and aptitudes remains a constant priority for our organisation and the companies in which we invest. Discuss: • The manager has to understand that empowerment and talent development is important, because it means the business is investing time and resources to assist with employees' development to achieve the goals and objectives of the business. When employees are empowered, and they have benefited from the development process, this is conducive to better morale and higher levels of motivation. • Empowerment and talent development can be done in several ways: − By giving an employee a new skill through training. − By giving an employee new responsibilities and authority to perform a challenging new task, requiring him/her to think more broadly than before. − By giving an employee the freedom to choose how to do a task, provided certain pre-determined standards are met. − By monitoring performance and then giving constructive feedback

Challenge: Transport infrastructure in South Africa

A: Identify the business environment to which the challenge belongs. Macro environment B: Explain the effect of the challenge on Pick n Pay. • A business will need to be sure that customers are able to reach the business. • Transport infrastructure could affect the delivery of goods, as trucks are not always able to deliver in all areas. • Quick delivery of goods is not always possible, due to the lack of transport infrastructure. • Customers may be hesitant to travel to a store, where there is no sound transport. C: Devise a strategy on how Pick n Pay can respond to the challenge. • Business will need to plan its location carefully, ensuring that they are accessible to both customers and suppliers. • Business may need to relocate to areas that are more easily accessible. • Plan transport routes carefully to ensure sufficient time for delivery, where infrastructure may not be good

Challenge: Customers' level of disposable income, being reduced due to the Covid-19 pandemic

A: Identify the business environment to which the challenge belongs. Macro environment B: Explain the effect of the challenge on Pick n Pay. • Business have been forced to reduce sale of some items. • Business have had to adjust operating hours. • Business have had to carry the costs of additional cleaning materials and in some cases fogging, which has had an impact on the operating expense of a business. • Customer trends have changed during this time, they may no longer be purchasing want items, but only need items C: Devise a strategy on how Pick n Pay can respond to the challenge. • Business may have to look at offering products that were not previously sold. • It is important that businesses pay special attention to customers, who are already loyal, by offering additional specials to maintain their loyalty. • Lower prices of basic necessities. • Follow all legal protocols around the virus, to ensure no bad publicity. • Purchase cleaning material in bulk, take advantage of economies of scale.

Challenge: High level of rivalry in the online shopping market.

A: Identify the business environment to which the challenge belongs. Market environment B: Explain the effect of the challenge on Pick n Pay. • The intensity of rivalry among competitors in an industry refers to the extent to which firms within an industry put pressure on one another and limit each other's profit potential. If rivalry is fierce, then competitors are trying to steal profit and market share from one another • High intensity of competitive rivalry can make an industry more competitive and thus decrease profit potential for the existing business. In comparison, low intensity of competitive rivalry makes an industry less competitive. It also increases profit potential for the existing business. C: Devise a strategy on how Pick n Pay can respond to the challenge. • Find and then solve your customers' pain points. One likely way to beat your competition is to address the needs of your shared target audience better than your competition can. • Find a niche in the market via storytelling and specialisation. It's tempting to daydream about what it would be like if you had no competition at all. When you build a niche, you come much closer to achieving this ultimate goal. • Set competitive pricing. One of the easiest ways to beat your competition is to offer more affordable pricing. To determine the ideal price point, you need a clear picture of what your competition's goods or services are priced at. Research which competitors offer the best value. Then you need to determine if what you are offering brings more value to the table and thus should be priced higher. • Change your business to stay ahead of your competition. When you are running a business, change is constant. • Provide great customer service. Providing great, and memorable, customer service is a great way to build loyalty among your customers and differentiate yourself from the competition.

Considering the growth Pick n Pay has seen through its online segment; there may have been several challenges faced by Pick n Pay.

Challenge: Attracting and hiring the right employees. A: Identify the business environment to which the challenge belongs. Microenvironment B: Explain the effect of the challenge on Pick n Pay. • Hurting your bottom line Even the right candidate is expensive: the upfront costs of interviewing, travel and hotels, training, testing. • Lowers employee morale Increased stress, which could lead to low team moral. Disrupted workflow, diminished productivity, and increased customer dissatisfaction. • Creates more work for team members Terminating a bad hire isn't the end of that mistake. Between termination and finding a suitable candidate to fill the vacancy, other team members typically have to pick up the slack. • Increase employee turnover For all the reasons above, choosing the wrong candidate creates an environment that can lead team members to seek out new jobs, multiplying the problem you're trying to resolve. People can only pick up the slack of a vacant position for so long. And the damage of poor leadership or management level is even greater. Rather than simply decreasing a team's productivity and lowering morale, bad leadership leads to mismanagement of whole teams or departments that can ripple throughout a business. • Wastes your time The extra hours you put in should be to grow your business, pursue new ideas, and develop with your team. C: Devise a strategy on how Pick n Pay can respond to the challenge. • Develop a clear employer brand Your employer brand is what will set you apart from other companies and show candidates why they should work for you. • Create job posts that reflect your company Your job post is the first impression the candidate will have of you. You want to be sure to come off as organised and professional while still embracing your brand. • Use social media Social recruiting is becoming increasingly popular as companies begin targeting millennials. Social recruiting is simply using social media to find talent, advertise jobs, and communicate with potential candidates. • Conduct awesome interviews It is important to remember that interviews go two ways. While you are interviewing your candidate, they are also interviewing you.

ethical dilemas

Conflict of interest • If the person awarding a tender knows the person who is submitting the tender, he/she should not make the final decision about who will get the tender but should disclose that it is a friend/family member submitting the tender and then withdraw from the tender allocation process. Bribes and corruption • When someone is offered a reward to give a third party an unfair advantage to which he/she/the business is not entitled, it is a bribe. A bribe does not have to be in the form of money, but may be a gift, an offer of employment, a promotion, or any other favour. If it is in the form of money, it is sometimes referred to as a smoothing payment or a facilitation payment. • When someone in a position of power, abuses this power for personal gain, it is corruption. This may include receiving a bribe, giving a kickback (indirect bribe) to a supplier, misappropriating funds, or abusing an official position for personal gain. Unauthorised use of funds • Using business funds that are not authorised is the same as theft. People working in offices have more opportunities to get involved in this form of white-collar crime, than the workers in the manufacturing department. • Even something that seems as innocent as a manager having an expense account, taking his wife for lunch and claiming it as a business expense, is guilty of unauthorised use of business funds. Someone, who has a petrol card to pay for business travel and then uses the card for private use, is spending money not authorised for that purpose.

Discuss how Pick n Pay could make use of the following strategies to grow their online business segment.

Corporate combination strategy: • A Joint venture takes place where two or more businesses enter into an agreement to combine resources to improve the functioning of both businesses. For example, BP garages enter into an agreement with Pick n Pay to allow Pick n Pay space in the BP shop to sell Pick n Pay products. This way when people fill up with petrol and want to buy lunch, they may decide to stop at BP, because it affords them a choice to do both activities simultaneously, in ONE place. • When two or more businesses merge or when a takeover occurs, the individual businesses no longer exist separately; the different businesses combine to form one new business. Horizontal integration strategy: • Horizontal integration is a competitive strategy where business entities operating at the value chain level and within the same industry, merge to increase the production of goods and services. • The overall gain from a horizontal integration is an increase in the market power and minimal loss for being non-integrated. • Companies that engage in horizontal integration may realise economies of scale, reduced production costs, synergy in marketing, increased revenue, among others. • As with any other business strategy, horizontal integration does not always lead to increased value and profitability as expected. Instead, it can be the procedure for dismal performance, devaluation, inefficiency, stunted economic growth, and reduced competitiveness.

Define each of the managerial competencies listed below and briefly discuss how each of these competencies could be used by managers to ensure that business remains ahead of retail trends in South Africa.

Global Awareness Define: • Performing managerial work for an organisation that utilises human, financial, information, and material resources from multiple countries and serves markets that span multiple cultures. Discuss: • A global awareness is much more than merely trying to understand political, language or cultural differences between countries to avoid making general assumptions about other people. • It is more than the fact that exchange rates appreciate or depreciate and that this may have an impact on the cost of the product. While these issues are important, it is vital to appreciate that global awareness encompasses much more. • The manager must understand that even if the business does not trade (buy or sell) directly with other countries, he must know that the business world is interrelated and interconnected and that suppliers may originate from a range of countries. It is possible therefore, that customs and values will differ between countries. An awareness of the entire supply chain is crucial

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Inappropriate gifts • Most businesses expect employees to declare all gifts that they have received. It may even stipulate that no employee may receive a gift greater in value than R... (a certain value). Sexual harassment • Unwelcome physical contact. • Verbal conduct such as sexual advances, sex-related jokes, unwelcome enquiries about a person's sex life and unwelcome whistling/body language directed at a person or group of persons. • Non-verbal conduct such as sexual gestures, indecent exposure or display of sexually explicit pictures and objects. • When a more senior employee promises a reward in exchange for sexual favours. • Employees may also not engage in any of the above activities with customers, suppliers or any person who deals with the business. Employment/labour issues • Employees abusing sick leave. • The abuse of the internet or email may include: − Employees who visit porn sites. − Employees who make confidential information available to people who should not have access to the information. − Employees who spread rumours or other damaging information about the business or a fellow employee− Employees who spend work time on Facebook or other social media sites. − Employees spending time on personal emails during work hours and employees who send emails, which could bring the business into disrepute, to other people. • Taking business stationery home for private use. • Verbal abuse of staff members by a manager and the verbal abuse of a colleague or manager by an employee are all unacceptable behaviour.

Induction

Induction is training (orientation), given to all new employees to help them to become productive role players in the business as soon as possible. There is no "one-fits-all-recipe" for a good induction program. There is, however, standard information that should be included in an effective induction program. This may include: • A written copy (hardcopy or electronic) of the business' policies and procedures. • Some form of organogram/organisational chart to identify the various role players in the organisation. • A face-to-face introduction to the manager and other staff members in the department. • A tour of the facilities to show the new employee where the bathrooms, meeting rooms, canteen and Human Capital offices are in case he/she has any questions. It may also be useful to show the new employee how to log a call in the event of a problem with the technology. • Precise instructions outlining how the new staff member should perform certain tasks must be issued. Any unique/unusual requirements/tasks should also be clarified. • Allocating the new employee, a "buddy or mentor", in case questions arise or there is uncertainty about job-related issues, allows the new recruit to settle in more quickly.

Describe how Game Stores may have adjusted their service marketing strategies (people, process, and physical evidence) to respond to the change in the Game stores concepts.

PEOPLE • Whether the business renders a specific service or a hybrid service (service combined with a physical product), it is probable that people will always be part of the selling equation. The exception would be a vending machine or similar concept. • A business that sells a service or promotes a service that forms part of the product on offer has to realise that service delivery is not the same process or similar to the product. It is the service levels at these venues, not the product which will differ markedly. • The attitude, behaviour, skill, morale and motivation levels of the employees are just some of the variables that may have a noticeable effect on the service experienced. • The customer's perception of the quality of service may directly influence the degree of his/her satisfaction and future purchase intentions. • Because the employee is the face of the business, the business must make certain that there are sufficient control mechanisms (positive rewards or negative punishment) in place, to ensure contact employees will protect and promote the brand and the reputation of the business. • The quality of the after-sales service is vital to secure customer loyalty to the store/product.

process and physical evidence

PROCESS • When defining the process as an element of service delivery, it refers to the operating systems and procedures that must be designed and managed to make the service experience as pleasant as possible for the customer. • The process means that part of the service-offering which the customer experiences. This may include how quickly the customer is greeted, time spent in queues, helpfulness of staff members when the customer has a query, how many times an employee "passes the buck" before the customer is assisted and whether the business follows up to evaluate customer satisfaction. PHYSICAL EVIDENCE • The physical evidence associated purely with service includes factors such as the store's presentation, and the appearance of the staff members. Also included are other tangible elements such as business cards, brochures, letterheads, signage used on the premises and even the website on the internet. • The way in which the above mentioned is used to market the business, by relaying a message to the consumer, will depend on the type of business.

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Pricing of goods • Price fixing occurs when competitors agree to charge the buyers a predetermined price. One of the principles of a free-market economy is that competition keeps prices low and quality high. If businesses collude to fix the prices of products, it is unethical and illegal and the Competition Board may impose hefty fines. Directors may even be held liable for this in their personal capacity and face jail time. • The Consumer Protection Act (CPA) makes it illegal to charge more for products in rural areas than in urban areas without good justification. For example, if a business charges a high price simply because there are no competitors to keep the prices low, it is seen as unethical. "Insider trading" • This refers to a situation where someone trades shares on the JSE based on knowledge that is confidential, i.e. something only an insider (or his friends/family) in the business will know. This is a criminal offence. Counterfeiting/Bootlegging • Counterfeiting can be described as someone fraudulently imitating another's work and pretending it is the original. Designer clothing, shoes and handbags are often imitated and sold as the original. • Bootlegging is the illegal production and/or distribution of a product. A shebeen that does not have a liquor licence is guilty of bootlegging. Another example is when someone sells cigarettes on the black market to avoid paying import duties or other taxes. Taxation Tax avoidance and tax evasion. • Tax avoidance is legal and ethical, because the business finds legal ways to reduce the tax burden, i.e. deducting legal expenses before the taxable income is calculated. • Tax evasion on the other hand is illegal (and therefore unethical) because the business does not declare all its income and lies about expenses in order to pay less tax.

Basic Conditions of Employment Act 75 of 1997 (BCEA):

Purpose: The BCEA is aimed at ensuring that employees are treated in a fair manner in the workplace and through this, the BCEA promotes economic development. The BCEA protects workers against unfair labour practises. No employer may include anything in an employment contract not allowed under the BCEA. Even if the worker signs the contract, that condition of employment will not be valid in terms of the law

Labour Relations Act 66 of 1995 (LRA):

Purpose: • Enforce the fundamental rights relating to labour issues that are guaranteed in the constitution. • Promote economic development, labour peace, social justice and democracy in the workplace by providing a framework for collective bargaining to solve labour disputes.

Skills Development Act 97 of 1998 (SDA):

Purpose: • To help South Africans to improve their qualifications and skills and to ensure economic development is achieved and people have better standards of living. • To introduce learnerships and skills programmes to boost vocational learning (i.e. the workplace becomes a place of learning). • To promote entrepreneurship through training and improved skill levels. • To improve employment opportunities for unemployed people by giving them skills needed to find or create their own employment. • To encourage employees to improve their skill levels by becoming involved in training.

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The ability to evaluate achievements and progress is crucial in order to initiate corrective measures if needed. The entrepreneur should be able to make quick decisions about opportunities as they arise. • The ability to communicate clearly and accurately is critical in order to implement strategies to overcome challenges and thus capitalise on opportunities.

recruitement

The main focus of the recruitment process is to attract the most competent talent. There are a number of internal and external options available when recruiting potential candidates for the job. The task of the recruitment process is to determine the most effective communication channels to be used for the recruitment message. The business should, among others, consider the following internal and external options, then select the most appropriate option for the type of employee desired. Internal recruitment is done by transferring an existing employee to a new position or by promoting an existing employee. The business may invite existing employees, who may be suitable candidates for the vacancy, to apply for the job. This is done by searching employee files to identify potential candidates based on skills, qualifications and experience. Word of mouth may work if a manager recommends an employee for the position. An alternative, to sourcing internal staff files, is to post the position on an intranet or notice board within the business and to invite interested staff to apply. Current employees may also be asked to recommend someone outside of the business for the position. This is a combination (hybrid) of internal and external recruitment. If it is not possible (or desirable) to recruit employees from within the company, the business has to recruit externally. This can be done by using one or a combination of the following techniques: • The position is advertised via an employment agency. Some agencies operate exclusively on the internet, while others may use the internet as well as traditional advertising media. The business may decide to advertise the position in newspapers, trade journals or at trade shows. • Depending on the qualifications needed for the position, the business may approach schools, colleges, universities and other educational institutions to seek suitable candidates. • Although it does not happen very often with more senior positions, suitable employees may be sourced by looking at CVs of casual applicants or "walk-ins". • Employees may also be "head hunted". This means a suitable employee who works for a competitor is identified and asked to apply for the vacant position.

3 Remuneration/employee benefits:

There are a number of ways in which employees should be rewarded for their hard work in the business. Remuneration and additional benefits that have a monetary value are part of reward systems to enable employees to maintain a certain standard of living. It is also one of the biggest operating expenses that the business will incur. Salaries and benefits are an important issue from both the employee's and the business' point of view. Before the different ways to calculate salaries and other benefits offered to employees are discussed, it is necessary to distinguish between the following: salaries, wages and paying commission to employees. • Permanent or temporary workers may earn salaries. A salary is a fixed amount, which is paid to the employee (once a month) on predetermined date. • Wages are usually paid on a daily or weekly basis. It may be a fixed sum, calculated on the basis of the number of hours worked, or at a piece rate (according to output). • Commission is a form of remuneration used to motivate the employee to deliver more. It is often used in sales where the employee receives a percentage of the sales as commission. This means the more sales the employee makes; the more commission may be earned; it is an incentive for the employee to improve his/her performance.

The right to fair value, good quality and safety

• A consumer may return goods to suppliers within six months if the goods are of inferior quality, unsafe or defective. • The supplier must refund, repair, or replace the unsafe or defective product

The consumer has the right to choose

• A cooling-off period of five business days will be in place to allow the consumer to cancel the transaction, if the transaction was not initiated by the consumer, i.e. if the transaction was the result of direct marketing. • The consumer has the right to shop around for the best deals and no consumer is obliged (forced) to buy additional goods or services linked to the original transaction (bundling). • Consumers have the right to request authorisation before maintenance or additional repairs are carried out and will not be liable to pay for such repairs or maintenance services, without prior approval. • Suppliers are not allowed to charge consumers for drawing up cost estimates or quotations. • The consumer has the right to return defective goods (within a reasonable time frame) and request a full refund for these goods.

marketing functions

• A product must satisfy the needs of consumers. This product must be sold at a price that the consumer is prepared to pay. Goods must be distributed to a place that is convenient for the consumer and the consumer must be informed (marketing communication) about the availability of the product. • To determine what product is in demand, what price consumers are prepared to pay, where (place) the product must be sold and what the best method is to communicate with the target market, the business will do market research. • Market research helps the marketing function to identify the target market based on variables such as age, income, gender, marital status, hobbies/ interests and occupation.

The right to fair and responsible marketing

• A supplier may not use bait-marketing. This means the supplier may not advertise a product/service in order to attract the customer to come to the store and then not have the advertised product/service available at the advertised price or quality or quantity

Explain the role of the Advertising Standards Authority (ASA).

• ASA is the national body to which anyone can complain when they deem advertising and/or marketing to be unacceptable. • ASA is a source of information and assistance in the field of marketing communication for official agencies and statutory bodies. Officials can consult one authoritative independent body that is close to both industry and public sentiment. • ASA is a responsive communication channel that can take consumers' concerns to the entire media and marketing sectors. • ASA is a fast and affordable means of resolving disputes, whether the complaints are from fellow marketers or consumers.

The right to disclosure of information

• According to the CPA, the language in which contracts are written should be appropriate for the group at which the contract is aimed, i.e. the language should be easy to understand by the target market. • Suppliers have to display the prices of goods and services in full view of the consumer and where two prices are displayed for the same product, consumers have the right to demand paying the lower price.

peopel and social

• Companies that follow the triple bottom line way of doing business, think about the impact their actions have on all the people involved with them (stakeholders). − This can include everybody from farmers supplying raw materials, to the CEO of the company. • Everyone's well-being is taken into consideration. The company offers healthcare, good working hours, a healthy, safe place to work, opportunities for advancement and education, and does not exploit their labour force. • In some cases, the "people" bottom line can also include the community where the company does business.

The right to privacy

• Consumers have the right to refuse unwanted direct marketing (via sms, telephone, email, letters) and the business may not continue to market the goods and services to the consumer if the consumer has indicated it is unwanted.

Complete the flow diagram below on Leadership Styles.Illustrate how Spar would make use of each leadership style in their daily operations.

• Democratic: A manager that follows a democratic leadership style, allows subordinates to provide input and participate in the decision-making process. It is, therefore, not surprising that the democratic leadership style is also sometimes referred to as the participative leadership style. The advantage of this style is that it usually ensures "buy-in" and commitment from people involved in the process. However, a disadvantage could be that it may lead to slower decision making when the manager allows participation from all. • Autocratic: An autocratic leader seldom allows for input from subordinates and makes all decisions. In certain circumstances this may be the best approach; if, for example, there is a crisis and quick decision making is required to solve a problem or to implement a strategy that may not be popular with all staff members. The disadvantage of an autocratic style is that employees often have a low morale as they feel undervalued by the manager. • Laissez-faire: A manager that follows a laissez-faire management style believes that he/she should not interfere in the process of carrying out a task. This manager will tell employees what he/she expects from them but will allow them to do the task without interference. This management style may yield excellent results, if there is a highly skilled workforce, motivated to perform optimally

State THREE factors that could influence the buying decision of customers:

• Economic Factor • Functional Factor • Marketing Mix Factor • Personal Factors • Psychological Factor • Social Factors • Cultural Factors • Political Factors • Geographical Factors • Seasonal Factors C

employee motiavtion

• Employee motivation is defined as the enthusiasm, energy level, commitment and the amount of creativity that an employee brings to the organisation on a daily basis. Motivation is behaviour and one needs to channel this behaviour in order to achieve desired goals and results. Employee motivation is all about how engaged an employee feels in tandem to the organisation's goals and how empowered he/she feels. • Motivated employees are an asset to an organisation, they are directly proportional to an organisation's success. Motivation is intangible, difficult to measure and extremely difficult to control, but very easy to facilitate if done right. It is all about intention, intensity, and perseverance.

Implications (positive or negative) of the Skills Development Act 97 of 1998 (SDA) on the employer or employee:

• Funding for training is obtained from Skills Development Levies, regardless of what the business plans to spend on training. Skills are thus not compromised when training budgets are reduced. • 20% of the Skills Development Levy may be claimed back simply by submitting a Work skills program (WSP) and Annual training report (ATR). This encourages businesses to plan and implement training programs. • The Sector Education and Training Authorities (SETAs) overseeing training in the different sectors are not always effective and the result is that there are large sums of money that should be spent on training that simply sit in some of the SETAs' bank accounts. • The amount that may be claimed back for submitting the Work skills program (WSP) and Annual training report (ATR) has been reduced from 50% to 20% with effect from 2013. This makes it more difficult for businesses to claim back their money, because not just any training will qualify to warrant the additional 30% reduction.

monetary motivationals factors

• Increase salary or wages • Bonus • Promotion (monetary part - remuneration for example fringe benefits) • Profit sharing • Company Equity

Implications (positive or negative) of the Basic Conditions of Employment Act 75 of 1997 (BCEA) on the employer or employee:

• It protects vulnerable employees such as part-time, farm and domestic workers. • It provides mechanisms to set minimum wages for farm and domestic workers (sectorial agreements). • It prevents child labour. • It protects employees against unreasonably long working hours, especially in areas such as the transport and security industries. • It ensures employees are treated in a fair manner.

human capital

• Labour is an important factor of production. The other three factors of production are capital, raw materials, and the entrepreneur. • Management and labour (trade unions) must have a good relationship to ensure the business reaches the goal of maximising profitability. • Unless workers are happy and motivated, productivity and profitability will suffer

Discuss the purpose of the FTSE/JSE Responsible Investment Index.

• Offer investors more opportunity to integrate ESG (Environmental, Social, and Governance) considerations into their investments. • Transparent and consistent methodology that measures risk across a variety of ESG areas. • Criteria is based on information that is publicly available and does not accept that data privately provided by companies improves credibility and enhances transparency. • Allow clients the ability to extract data at multiple levels to access and apply it in a variety of ways.

Explain how business/entreprenuer could use the various entrepreneurial qualities as part of their decision-making process

• One of the most important characteristics of an entrepreneur is the ability to identify an opportunity with potential and to then pursue the opportunity, even if it may be risky. An entrepreneur needs to take risks to reap rewards. • In order to identify an opportunity in a particular market, the entrepreneur has to understand the target market and he/she continuously needs to scan the internal and external environment to be proactive in identifying opportunities and/or threats. • The entrepreneur has to know who the customers (LSM) are, their needs, and then be willing to develop or change the business plan to satisfy the customers' needs. • An entrepreneur is an opportunist. The market/business environment may not always be favourable or fit in with his/her initial plan. The entrepreneur, therefore, must be able to anticipate market trends, identify the positives and use these to the advantage of the business. • Starting a new business is hard work and takes commitment and perseverance. • Creativity and innovation are often requirements to get a new business off the ground. Being different to that of a competitor (differentiation strategy) may lead to a successful business. • The ability to prepare and to implement a plan to achieve goals is very important. But the entrepreneur must be realistic and proactive by developing a contingency plan to manage potential risks. • He/she must have the ability to convince and motivate others to buy into the plan and follow him/her to achieve the desired goals.

List four management tasks that retailers such as Spar would use when rethinking their retail operations

• Planning • Organising • Leading • Controlling • Coordinating • Communicating • Delegating • Motivating • Decision making • Discipline

productions functions

• Production is the combination of the factors of production (natural resources, labour, capital, and entrepreneurial skill) in order to provide the right product at the right place and time in the quantity demanded and at the price the consumer is prepared to pay for the product. • The production function has as its aim to create utility of form to transform raw materials into a product that can be used to satisfy needs. • It is important to keep manufacturing cost as low as possible, while maintaining quality and standards. • Continuous product design is important to satisfy the needs of consumers. The production and marketing departments should combine efforts to design the product and packaging in such a way that it will attract customers to buy the product

public relations functions

• Public relations involve all the activities that influence the opinions of the public. • Public relations management is a continuous, long-term interaction between the business and external stakeholders. It can only be successful if conducted honestly, and with integrity. • The primary aim of the Public Relations Department is to create and maintain a favourable image of the business with all relevant interest groups and stakeholders.

non-monetary motivational factors

• Status of a new position • Appreciation and recognition - acknowledging a person's inherent value and giving positive feedback based on results or performance • Work-life balance - more balanced division of one's time and focus between work and family or leisure activities • Delegation - allocating more responsibility • Working conditions - better office • Job enrichment - additional tasks • Job security - keeping your job

The right against discriminatory marketing practices

• Suppliers are not allowed to give preferential treatment to any group of people when marketing or selling their goods or services or when setting the price for the goods or services based on elements such as geographic location, socio-economic status, gender or race.

The right to fair and honest dealing

• Suppliers may not attempt to mislead or deceive the consumer when advertising products or services. • No supplier may use physical force, harassment or unfair tactics when marketing goods or services, collecting payment for goods or services or when recovering goods from consumers. • Overbooking and overselling is not allowed by the Consumer Protection Act (CPA). This means the seller may not accept payment for goods or services if it is reasonably expected that it will not be possible to supply the goods/services to the consumer.

Implications (positive or negative) of the Labour Relations Act 66 of 1995 (LRA) on the employer or employee:

• The LRA ensures that international labour standards are applied in the South African labour context. • The LRA gives clear guidelines on how labour disputes can be resolved. • Trade unions have a lot of power in South Africa, and it appears that they sometimes forget that they are meant to protect the rights of employees and not become involved in politics and other issues under the pretext of implementing the LRA.

administrative functions

• The administrative function is responsible for collecting all data in the business and the business environment. The data will then be processed into information. The information is stored and made available to management as and when needed. In short, the administrative function, handles all the paperwork and record keeping in the business. • One of the most important aspects of keeping administrative records up to date is to comply with legislation. For example, SARS requires that tax records and financial information are kept for a period of five years. Ignorance is no excuse in the eyes of the law, so the administration department must ensure they meet all legal requirements in this respect

profit/economic

• The financial bottom line is the one that all companies share, whether they are using the triple bottom line or not. − When looking at profit from a triple bottom line standpoint, the idea is that profits will help empower and sustain the community, and not just flow to the CEO and shareholders. While you may or may not consider the Triple Bottom Line appropriate for your business, it makes sense to recognise the way in which the workplace is changing and consider whether you need to adapt your approach to business to reflect this.

purchasing functions

• The purchasing function buys goods and services needed by all departments in the business. This includes three types of purchases: − Goods bought for own use, e.g. Pick n Pay will buy a fridge to keep the Cokes cold. − Goods bought in order to resell them, e.g. Pick n Pay will buy trading stock (Coke and chips) to sell at a profit. − Goods bought for processing, e.g. Pick n Pay will buy raw materials or semi-finished goods that are processed into goods to satisfy needs. An example is the purchasing of flour and meat to make pies. • Goods and services will be bought from different suppliers. The most suitable suppliers to supply these goods and services must be found. • Orders must be placed and confirmed to ensure the delivery of the correct goods. When delivery occurs, it must be checked to verify the quality of the goods, precise and adequate quantities, the goods are undamaged. • One of the most important functions of the purchasing department is to develop a system to control inventory (trading stock) to maintain optimum stock levels. As far as possible, stock shortages must be prevented. If the business runs out of stock, it gives competitors an opportunity to "steal" customers.

general management functions

• To Plan for the future of the business. Organise to get all staff and materials (resources) needed in the business, lead workers to make sure they are working to help the business to make a good profit and to control all activities in the business to make sure operations are proceeding according to plan. • Additional management tasks include: − The coordination of the different functions in the business, communication with employees and customers, delegating tasks to subordinates, disciplinary action (if and when required), decision making and motivating workers. • In order to plan for the future of the business the manager must formulate a vision, mission, goals, objectives and strategies for the business.

financaial function

• To start a business, the business needs capital. Capital is either contributed by the owners or borrowed and used to buy and/or to produce goods and services. • Business needs to pay attention to the following: − Maximise profits − Increase profitability − Ensure liquidity − Remain solvent

p2

• Transactional: The transactional leadership style can be described as an approach of "give and take", with the manager motivating employees to perform their tasks in return for possible (salary/bonus/other benefits). The problem with this style is that as soon as employees regard the reward as insufficient, they become demotivated which often results in labour unrest. • Transformational/charismatic: The transformational leader is charismatic by nature. He/she will motivate employees by helping them to understand the meaning of their work. This type of leader places the emphasis on teamwork; he/she will make time to explain to the group "why they matter". This builds confidence and trust between employees and management, consequently the individual and group performance improves in terms of creativity, problem-solving and productivity. People are often inspired and motivated to such a degree that they surpass their own expectations. This happens more often if the manager not only leads their team, but also empowers team members to achieve their full potential. • The situational leadership style: A combination of all of the above leadership/managerial styles. The manager will adapt the management style to whatever is required in the specific situation. If the situation requires disciplinary action to be taken, he/she will adopt an autocratic style. If the group of employees are artistic and do not respond well to too much structure, the manager may opt for a laissez-faire approach by simply advising what needs to be achieved He/she thus avoids being too prescriptive about the method of achieving the goal. A democratic, transactional or transformational style will be implemented where it will yield the best results.

planet/envoronmental

• Triple bottom line companies take action to reduce or eliminate their ecological footprint. • They strive for sustainability, recognising the fact that "going green" may be more profitable in the long run. − But it is not just about the money. Triple bottom line companies look at the entire life cycle of their actions and tries to determine the true cost of what they are doing regarding the environment. − They take action to reduce their energy usage, dispose of any toxic waste in a safe way, try to use renewable energy sources and do not produce products that are unsafe or unhealthy for people and the planet