FEEDBACK TUTORIAL LETTER

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1 FEEDBACK TUTORIAL LETTER 1 st SEMESTER 2017 ASSIGNMENT 2 INTRODUCTION TO BUSINESS MANAGEMENT BMI511S 1

2 ASSIGNMENT 2 [50 Marks] SECTION A Question 1 Multiple choice questions [1x10 Marks] 1. Purchasing and supply planning at a tactical level includes, except: a. Supplier alliances b. Systems integration c. Pricing d. Availability forcasting 2. Human Resources Planning consist of which of the tree steps, except: a. Job analysis and description b. Change in organisation structure c. Job specifications d. Human resource forecasting and planning 3. Studies have shown that successful organisations all share the following human resource management attributes. Choose the incorrect answers. a. Training and Development b. Process optimisation c. Career Development d. Optimal working conditions 4. From an operations point of view the transformation process involves...? Choose the one correct option. a. Operations design, controlling and improvement b. Information analysis, setting of quality standards, and production c. Inputs, operating processes, and product or service outputs d. Market identification, assessment of satisfaction, and product or service redesign 5. When an organisation purchases an important strategic item, which of the following qualities will it regard as most important when deciding on a supplier? a. Price, quality and delivery b. Financial stability, managerial and technical ability, and capacity 2

3 c. Location, cost and value d. Technical ability and quality 6. The performance objectives of an operation are related to the numerous customer/client needs. Which of the following is not one of these performance objectives? a. Higher quality and lower costs b. Shorter lead time (quicker manufacturing or provision of services) c. Low variability and low adaptability (flexibility) d. Lower variability with regard to specifications (reliability) 7. An effective and efficient operation can give a business four types of advantage. Select the one incorrect option. a. Reduce costs b. Increase the fixed asset base c. Increase revenue d. Reduce capital investment 8. can be described in terms of technical and physical qualities? a. A core product. b. A formal product. c. A total product. d. A need-satisfying product 9. Financial management decisions involve Which of the following options are incorrect? a. Capital budgets b. Production volumes c. Capital structure d. Working capital 3

4 10. Assets are divided into two broad categories in the balance sheet. Select the correct answer? a. Loans and Debentures b. Depreciation and Inflation c. Fixed and Current assets d. Shareholder interest and Distributable reserves Question 2 [10marks] Indicate whether each statement given is True or False in your answer booklet provided The strategic approach to marketing is to develop strategic pricing models. False 2.2. Human resources function contributes to organisational effectiveness by managing change. True 2.3. When the initial price of a new product is lower than the marketer hopes to penetrate the market rapidly by discouraging competitors in the process, this is known as skimming prices. True 2.4. Capital is required to obtain assets, resources and services. True 2.5. A Cross-functional sourcing team is a team of people from one specialist function area brought together to solve purchasing related problems. False 2.6. Purchasing cost is a business s biggest expense especially if products are purchased and the value is added. False 2.7. In work design, method studies determine how long it takes for workers to complete tasks. False 2.8. Capital is the amount that each shareholder receives from the share of profit. False 2.9. Dividend is the amount that shareholders put into the business in the form of payment of shares. False The operations function is that function of the business aimed at executing the product or service transformation process. True SECTION B Question 1 [30 Marks] 3.1 Priem Enterprises is in the furniture manufacturing business and sell the dining room sets at N$ per set. They have incurred following costs. Direct materials N$ Telephone N$ Insurance N$ Commissions N$5 000 Rent N$ Salaries N$ Production supplies N$ Depreciation N$ a) Calculate the break-even in Namibia Dollars and in Units. [8marks] b) What is your interpretation of the calculation? [2marks] 4

5 a) BE = FC SP VC ( ) 19 Units / N$ b) Students should state how much should be spent to break-even and how many units should be produced to break-even You have inherited N$ 2, from your grandparents will. You decide to invest it for four years when you have completed your studies. One of the local banks made the following offer to invest your money for four years per annum, at a discount rate of 15 % compound trimesterly. [5marks] FV = PV (1 + k/m) n m FV = N$2, (1+15/3) 4 3 FV = N$2, (1.05) 12 FV = N$3, Question 2 Study the following information of Omaheke Traders & Oshakati Dealers and answers the questions that follow. Omaheke Traders Oshakati Dealers Sales Less Cost of Sales Gross profit Other come Less: Expenses Nett Profit Less Tax Nett Profit after tax Calculate 2 (a) Gross profit margin for both businesses [4marks] 5

6 Gross Profit x 100 Sales 1 Omaheke Oshakati x x = 62, 5% =83, 33% 2 (b) Nett profit ratio for both businesses [4marks] Omaheke Nett profit after tax x 100 Sales 1 Oshakati x x % 60% 2 (c) Comment on the portability of the two businesses based on your calculation in (a) &(b) [2marks] The higher the gross profit and net profit margins the better the firms profitability. Both ratio s of Oshakati Dealers are higher than that of Omaheke Traders, i.e. that Oshakati Dealers is more profitable than Omaheke Traders. Section C CASE STUDY Read the case study below and answer the questions that follow. [5marks] Carl Robin recruited several employees to work for Monica s CC, but he did not carry out the recruitment process well. The recruitment manual did not have enough details to guide him during recruitment process. It lacked clinical information, forms to be completed by the trainees, and transcripts. This affected the orientation process as Carl did not collect enough information from the trainees. The management did not provide clear information to Carl about the recruitment process. Monica asked Carl to coordinate training schedule for the new employees, manuals, policy booklets, drug tests and physicals. Carl did not have the information required to coordinate the orientation process. This is because Monica had not provided good training to Carl on the recruitment process, and training for employees. 6

7 Advise Carl on the recruitment and selection process and briefly discuss each of the stages that Monica s CC could follow. Answer should be applied to the case study. [5marks] Step 1: Identify a vacancy Step 2: Do a job analysis Step 3: Advertise the position internally or externally or both Step 4: Shortlist suitable candidates Step 5: Selection Students should have advised Carl on the abovementioned stages and how it applied to the case study. 7