Chapter 1: Intro to Business

Management
1. Explain the role of business in line with the socio-economic environment of
the society.
The socioeconomic environment is used to satisfy the needs of both business
and society. A Business is linked to the society it operates in and accountable
for social responsibility, affirmative action and equality, business ethics,
consumerism and environmental damage

2. Identify the needs of the people in each environment.

Social responsibility:
*Fair working conditions
*Community support
*Environment sustainability

Affirmative action and equality:

*Equal opportunities
*Diversity inclusion

Business ethics:
*Accountability
*Transparency and honesty
*Consumer protection

Consumerism:
*Informed choices
*Sustainable options
*Affordable living

Environmental damage:
*Clean air and water
*Conservation of resources
*Climate change mitigation

3. Discuss the three major economic systems present in modern society.

The free-market economy system is chosen to solve economic problems. It is
one of the two extremes in the major economic systems, from creating
efficiency and growth in consumer sovereignty, limited government
intervention, private ownership and property rights and supply and demand
to spiralling toward inequality and business crises.

Socialism is regarded as the compromise between the Free-market economy

and the command economy. It’s known for putting social well-being and
shared resources at the forefront, with the government playing a more active
role in planning and ensuring fairness to achieve social welfare, reduce
inequality, and ensure essential resources and services are available to all.
 This is done through central planning, state control of key industries, social
ownership, and a focus on social justice.

The command economy/communism, often called the centrally directed

economic system, prioritizes central planning, state ownership, and social
welfare over market forces. While it aims for social equality and affordable
necessities, it can face challenges with consumer choice, efficiency, and
individual freedom. Most countries have mixed economies that incorporate
elements of both command and market systems, aiming to find a balance
between achieving social goals and economic efficiency.

4. Describe business management within the context of an applied science.

Business management is still an evolving applied science, it engages in the
study of consumer behaviour which stems from psychology. One of the
elective components of business management is economics which is a social
science as it relates to how society and business use the available scarce
resources. It is a science with a uniform and systematised body of knowledge
on facts and scientific laws, and the existence of laws as principles that are
constantly tested in practice, comprised of individuals who intend to attain
personal or group goals.

5. Demonstrate an understanding of the impact of businesses in society within

the last five decades.
Technological Advancements have led to the future of Business by impacting
different regions and the rise of multinational corporations has improved
economic growth and globalization. Shifting consumerism, workforce
transformation and global communication have led to social and cultural
changes. Environmental concerns and sustainability have become a major
force of CSR initiatives. Businesses are increasingly recognizing that
sustainability is not just good for the environment but also good for business
in the long run

6. List and describe how the different business functions impact the profit level
of an enterprise in a service-related firm.
General Management impacts profits through effective leadership, fostering a
culture of innovation, efficiency, and customer focus. Poor leadership can lead
to misallocation of resources, missed opportunities, and ultimately, lower
profits.

Marketing Management impacts profits through strong marketing, generating

high-quality leads, allowing for premium pricing and a strong customer base.
Ineffective marketing leads to low customer acquisition, underutilized
resources, and reduced profits.

Financial Management impacts profits through sound financial management,

ensuring resources are allocated efficiently while profitability remains a top
priority. Poor financial management can lead to overspending, missed
opportunities, and ultimately, reduced profits.
 Purchasing Management impacts profits through strategic purchasing,
minimizing expenses and ensuring resources are cost-effective. Poor
purchasing decisions can lead to overpriced materials, wasted resources, and
reduced profit margins.

Human Resource Management impacts profits through skilled and engaged

employees, delivering high-quality service, leading to customer satisfaction
and repeat business. High turnover or a disengaged workforce can lead to
poor service quality, increased training costs, and customer churn, impacting
profits.

Customer Service Management impacts profits through excellent customer

service, building loyalty, encouraging repeat business, and increasing
customer lifetime value. Poor customer service can lead to customer churn,
negative reviews, and the need for additional customer service interventions,
impacting profit margins.

Service Operations Management impacts profits through efficient service

operations, minimising waste and resource utilization, allowing for
competitive pricing and improved profit margins. Poor service operations
management can lead to delays, inefficiencies, and increased costs, eroding
profits.

7. Identify the world’s three most important economic systems.

The free-market economic systems,
Socialist economic systems and
The command economic system

8. Demonstrate an understanding of the role of business in society and the

position of business in the business world.
The Role of business has a social responsibility to make working conditions
fair, give community support and cultivate environmental sustainability.
Affirmative action and equality for equal opportunities and diversity inclusion
for the community. Ethics help hold businesses responsible for taking
accountability and protecting consumers through transparency and honesty.
Promoting consumerism to increase informed choices, sustainable options
and affordable living and lastly limit and solve environmental damage on
conservation of resources, climate change mitigation, and clean air and water
in society.

9. Recognise how an organisation functions and how it is established.

10. Explain briefly how the factors of production can contribute to the success of
a business in any environment.
11. Which of the following statements is true or false? Capitalism ensures a
more even distribution of wealth.
12. Socialism discourages private initiative.
13. Communism ensures a better utilisation of resources
14. South Africa’s economic system tends towards socialism
15. Explain how & why prices may influence the factors of production.
16. Match the four factors of production on the left to their respective
corresponding rewards:
1. Land - D A. profit
2. Capital - C B. wages
3. Labour - B C. interest
4. Entrepreneurship - A D. rent

Chapter 2: Entrepreneur
1. Define the term entrepreneur in the business world.

2. Describe the roles of entrepreneurs and small businesses in the South African
economy.
3. Discuss the concept of entrepreneurship process
4. Explain how to become an entrepreneur
5. Identify the skills that the entrepreneur requires venturing into own business.
6. Identify the various ways of entering the business environment.
7. Distinguish and establish the different ways in which an entrepreneur may
start a business.
8. Discuss the implications of choosing a specific business opportunity.
9. Define the concept of feasibility study.
10. What are some factors that lead to entrepreneurship?
11. Define the criteria for a small business.
12. Are small businesses important in the South African economy? Explain.

Chapter 3: Establishing a
Business
1. Understand and discuss the key considerations that are applicable when a
form of business must be chosen.
2. Identify and distinguish the different or various legal forms of enterprise
ownership found in South Africa.
3. Discuss the considerations that are applicable when a form of business must
be chosen.
4. What are the factors to consider in choosing the legal forms What are the
advantages and disadvantages of a business trust?
5. Explain, with an example the term “legal personality”
6. What factors should you consider when deciding on the location of a small car
washing business?
7. Assuming, you are a female entrepreneur, married to an up-and-coming
businessman who owns two business properties in the CBD of Johannesburg.
The couple also owns a house which is registered in the husband’s name.
They are married in COP. How will this information affect the female
entrepreneur’s choice of the form of enterprise for her new business venture?
Chapter 4: The Business Plan
1. Describe the objectives, importance and the need for a business plan.
2. Give an overview and give the various components of a business plan.
3. The importance of a location for the success of a business. It's extremely
important to all kinds of business.
4. Discuss the importance of location to the success of any given venture.
5. Prepare a detailed business plan for any given venture.
6. Why is a business plan important? Consider this question from the
perspectives of both internal and external users.
7. What are the key sections of the business plan?

Chapter 5: The Business

Environment
1. Understand the concept of environmental change
2. Explain the composition of business environment model
3. Identify the sub environments of the environment
4. Identify how the environmental variables influence individual businesses
5. Distinguish between the opportunities, threats and external environment
6. Define the concept of environmental scanning.
7. List the variables you would consider for an environmental scanning.
8. Briefly discuss Porter’s five forces model. Why is it important for a business in
this current economic climate?
9. Give at least four examples of industries which became obsolete due to
technology in South Africa
10. How does the government of South Africa influence the business
environment in your own view?

Chapter 6: Strategic
Management
Planning
1. Explain the concept of planning as a management task.

2. Discuss the benefits and costs of planning

3. Identify and interpret goals.
4. Explain the concept of planning as a management task.
5. Discuss the benefits and costs of planning
6. Identify and interpret goals.
7. Define the term goal and explain how planning fits into an
8. organization’s goal.
9. Discuss the benefits and costs of planning.
10. Outline the five steps required for setting goals in an organization. Explain
how they work
11. Describe Management by objectives as a goal-setting technique.
12. What are the advantages and disadvantages associated with this technique?

Column A Column B
1. The process of goal setting, developing of plans and
A. Top management.
implementation.
2. The broad plan of how the organisation is going to complete in
B. Operational plan.
its industry.
C. The planning
3. The managers who have middle managers as subordinates.
process.
4. The process whereby management and employees jointly set
goals and where the progress towards the attainment of these D. Strategic planning.
goals is periodically assessed.

E. Planning.
5. A specific achievement to be attained at a future date.

Organising
1. Explain the concept of organising and organisational structure.
2. Identify the importance of organising in an organisation.
3. Discuss the fundamentals of organising in an organisation.
4. Identify factors that influence organising in an organisation.
5. Explain how an organisation evolves from a single entrepreneur to a large
organisation.
6. Describe the approaches managers have adopted to counter the problems
associated with specialisation.
7. Tabulate the benefits and limitations of specialisation.
8. Graphically demonstrate examples of the following types of
departmentalisations
1. Functional Departmentalisation
2. Product Departmentalisation
3. Location Departmentalisation
4. Customer Departmentalisation
5. The Matrix Organisational Structure
9. What is the “scalar principle”?
10. Outline the factors that influence the appropriate span of management
11. Distinguish between centralisation and decentralisation
12. What structural issues might arise in managing employees’ flexible work
arrangements? Think about what you’ve learned about organizational design.
How might that information help a manager address those issues?
13. Does the idea of a flexible work arrangement appeal to you? Why or why
not?
14. Why is it a challenge to “keep employees connected” in today’s
organizations?

Leading
1. Define the term leadership
2. Differentiate between leadership and management
3. Identify the components of leadership.
4. Understand the various theories of leadership
5. Identify contemporary leadership issues
6. Discuss why managers need to identify what motivates employee behaviour
7. Differentiate between groups and teams
8. Describe a communication model.
9. How would you define the leading function of managers?
10. Are managers also leaders? Justify your answer
11. How would the behaviour of a manager who is a strong leader compare with
that of a manager who is not a strong leader?
12. Identify the components of leadership
13. Provide reasons why managers who use power effectively are strong leaders
14. What are the shortcomings of the traits and behavioural theories?
15. Distinguish between groups and teams
16. Define the nature and function of communication.
17. Compare and contrast methods of interpersonal communication.
18. Identify barriers to effective interpersonal communication and how to
overcome them.
19. Explain how communication can flow most effectively in organizations.
20. Describe how technology affects managerial communication and
organizations.
21. Discuss contemporary issues in communication.

Control
1. Define the concept of control
2. Explain the importance of control
3. Highlight the disadvantages of control
4. Identify the function of the control process
5. Identify and explain the various types of control processes.
6. Discuss the characteristics of an effective control system.
7. Discuss the importance of the control function in management
8. Describe the steps in the control process.
9. Identify and describe each type of control
10. Outline the characteristics of an effective control system.

Chapter 10: Development

1. Demonstrate effective time management
Planning, Organising, Leading and Controlling
2. Demonstrate effective goal-setting techniques
SMART – Specific, Measurable, Achievable, Relevance and Time
3. Understand different personality types

4. Give effective feedback