Question 1 (Marks: 20)
Provide a brief definition or explanation of each of the following terms within the context of business management, together with a comprehensive example. You are required to define each of the terms in your own words.

Please note: You will receive more marks for your own original, detailed examples than for examples in your textbook, from your lecturer, or on Learn.

Q.1.1 Herzberg’s hygiene factors. (5)

Q.1.2 Internal recruitment. (5)

Q.1.3 Cyclical ordering system. (5)

Q.1.4 Cross-functional purchasing team. (5)

Question 2 (Marks: 60)
Read the following case study and then answer the questions that follow.

Terex Corporation is a global manufacturer of aerial work platforms and materials processing machinery. They design, build and support products such as large lifting equipment used in construction. The company makes most pieces to order and customizes them to meet customers’ unique preferences.

Terex maintained a manual system for yard management at their transfer centre in Washington that is always full of lifting equipment, which generated excessive costs for what should have been a relatively simple process of locating customers’ units to prepare them for delivery. A wallboard and sticker system was a low-tech solution for identifying equipment items in the yard at Terex. While inexpensive in itself, the solution cost around six minutes every time an employee had to locate a unit in the yard. It also required a considerable number of hours to be spent each month taking physical inventories. After a successful pilot, the company approved a new solution, replacing stickers, yard maps, and wallboard with electronic tracking and digital inventory management. This saved the company around 70 weeks per year in labour costs, by cutting the process-time down from six minutes, to a mere 30 seconds per unit.

Note:
In your answers, you will be awarded more marks for integrating the theory and facts from the case study than if you discuss them separately.

Q.2.1 Classify Terex Corporation’s operational process for their production facilities. Justify your choice. (10)

Q.2.2 Identify and explain two types of operational failures Terex could experience. (10)

Q.2.3 Assess the financial costs of holding too much inventory, with application to the case study. (10)

Q.2.4 Explain why determining the “right quality” is important for the purchasing and supply function in a business such as Terex Corporation. (10)

Q.2.5 Recommend a type of market coverage suitable for Terex Corporation’s products. (10)

Q.2.6 Recommend the use of a MRP inventory control system for Terex Corporation’s production facilities. (10)

Question 3 (Marks: 20)
Consider the following scenario and then answer the questions that follow.

WEngageU is a specialist jeweller that designs, makes and sells high end engagement and wedding rings. The company specialises in making diamond rings to select, upmarket clientele.

WEngageU plan to expand into making eternity rings that will sell for R75 000 each. They predict the variable cost to amount to R45 000 per unit and fixed costs at R90 000.

For the financial year 2021, their current assets amounted to R13.2 million and current liabilities were R6.55 million. Non-current assets were R20.5 million and non-current liabilities were R3 million.

Q.3.1 Identify and explain which one of Porter’s four generic strategies apply to WEngageU. (10)

Q.3.2 Conduct a breakeven analysis to determine the number of eternity rings the company must sell in order to break even. (4)

Q.3.3 Calculate the current ratio for WEngageU. Interpret your findings. (6)

Question 4 (Marks: 20)

Write an essay where you explain internal environmental analysis as part of the strategic management process. Use your own detailed examples to explain the analysis.

Note:
• You will receive more marks for your own original, detailed examples than for examples in your textbook, from your lecturer, or on Learn;
• Marks will be allocated according to the rubric below;
• A word limit of 1 200 words applies. Markers will disregard any text beyond this limit. Please indicate the word count at the end of your answer.

Answers to Above Questions on Business Management

Answer 1.1: Herzberg hygiene factors are those factors that are directly related to the cause of job satisfaction within a workplace. According to Herzberg, some factors in the workplace lead to job satisfaction and there are certain other factors that result in dissatisfaction. The hygiene factors are defined as those factors that are essential for the existence of motivation at the workplace. They can also be defined as factors that result in a decrease in job dissatisfaction. Some of the examples of hygiene factors include organisational policies and procedures, relationship with coworkers, supervision etc.