BSM1501/001/3/2021

Tutorial Letter 001/3/2021

BUSINESS MANAGEMENT

Semester 1 and 2

Department of Business Management

IMPORTANT INFORMATION
Please register on myUnisa, activate your myLife e-mail account and
make sure that you have regular access to the myUnisa module
website, BSM1501-2021-S1/S2, as well as your group website

BARCODE
 CONTENTS
Page

ASSESSMENT CHANGES for 2021 ACADEMIC YEAR ......................................................................... 3

1.1 Assignment due dates .................................................................................................................. 3
1.2 The assignments .......................................................................................................................... 3
1.3 Other assessment ....................................................................................................................... 18
1.4 The examination ......................................................................................................................... 18

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 BSM1501/001/3/2021

Dear BSM1501 Student

ASSESSMENT CHANGES for 2021 ACADEMIC YEAR

Due to the ministerial request to extend the 2021 registration dates, Unisa had to amend both the
semester dates and the assessment arrangements for the 2021 academic year.
During 2021 we will have only one semester and only one tuition and assessment period.
The purpose of this TL001 is to inform you of the new assessment requirements for BSM1501
students registered during 2021 for the one semester period.

1.1 Assignment due dates

IMPORTANT: Disregard the assignment due dates in Tutorial Letter 101/3/2021.
Please use the following due dates for the 2021 academic year:

Assignment: Due date

Assignment 1 7 May 2021

Assignment 2 20 August 2021

1.2 The assignments

IMPORTANT: Disregard the assignments in Tutorial Letter 101/3/2021.
Please complete the assignments for the 2021 academic year as contained in this Tutorial
Letter.
Both Assignment 01 and Assignment 02 are compulsory.

THE FOLLOWING SET OF ASSIGNMENTS ARE TO BE COMPLETED BY ALL STUDENTS

WHO ARE REGISTERED FOR BSM1501 IN 2021

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ASSIGNMENT 01

DUE DATE UNIQUE NUMBER

7 May 2021 382986

INSTRUCTIONS:
• Assignment 01 covers Chapters 1 and 2 in the prescribed book.
• The assignment consists of 20 multiple-choice questions.
• You must submit your assignment online on myUnisa.
• Save a copy of the submission receipt for peace of mind.

Note: This assignment is compulsory.

Chapter 1

Questions 1 to 5. Match the following concepts in column A with the correct description in column B.
Column A Column B
1. Perseverance 1) A natural-born talent

2. Gross Domestic Product 2) Carry on in spite of setbacks, difficult situations and

(GDP) problems
3. Customer service 3) Generating new and usable ideas to solve any
problem or exploit any opportunity
4. Creativity 4) After-sales service, attention to detail, personal
presentability, attractive premises and user-
friendliness
5. Aptitude 5) The total production of a country

6. An intrapreneur can be described as someone who _______.

1) manages an existing business.
2) is known as a corporate entrepreneur.
3) is responsible for growth.
4) is creative and innovative.
5) takes calculated risks.

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Choose the correct combination:

1) a, b, c
2) a, b, e
3) b, c, e
4) b, c, d

7. The franchisor is a/an _______.

1) entrepreneur
2) intrapreneur
3) small business manager
4) corporate entrepreneur

8. What size business employs between 11 and 50 employees?

1) Micro
2) Very small
3) Small
4) Medium

9. Which of the following methods can remedy an entrepreneur’s weakness?

1) Personal development
2) Attending courses
3) Appointing staff and experts to compensate where needed
4) Staying positive

Choose the correct combination:

1) a, b
2) a, b, c
3) b, c, d
4) c, d

10. Entrepreneurs perform tasks themselves and communicate well with staff and others involved
with the business, such as suppliers and clients. To which one of the following important
personal characteristics of an entrepreneur does this statement refer?
1) Perseverance
2) Sound human relations
3) Involvement in the business
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 4) Commitment to the business

Chapter 2

Questions 11 to 15. Match the following concepts in column A with the correct definitions in
column B.

Column A Column B

11. Industrial column 1) A function of the amount of information available on

12. Enterprise
13. Establishment
14. Environmental
uncertainty
15. Production factors
environmental variables
2) Course that a product takes from its unprocessed,
natural resource state to the final form in which it is
supplied to the customer
3) Include the resources available to a business such as
labour, raw materials, capital and entrepreneurship
4) Place where all the business functions take place
5) Place where inputs such as raw materials and other
components are processed to produce a product or
provide a service

16. How many business functions are there?

1) Six
2) Seven
3) Eight
4) Nine

17. When goods and services are purchased and used for manufacturing products or providing
services to end-customers, it refers to the _______ market.
1) consumer
2) industrial
3) resale
4) international

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18. The following statement, “The consumer should receive objective information about the
available products and services”, refers to the consumer having the right to_______.
1) be informed
2) exercise personal choice
3) be heard
4) be protected

19. Which one of the following environments is governed by the demographics of the population?
1) Physical environment
2) Social environment
3) Economic environment
4) Technological environment

20. Trade unions are an important variable in the macro environment and they form part of the
_______ environment.
1) international
2) political and statutory
3) physical
4) economic
TOTAL: 20
END OF ASSIGNMENT 01

ASSIGNMENT 02

DUE DATE UNIQUE NUMBER

20 August 2021 394693
INSTRUCTIONS:
• Assignment 02 covers Chapters 1 to 6 in the prescribed book.
• The assignment consists of 40 multiple-choice questions.
• You must submit your assignment online on myUnisa.
• Save a copy of the submission receipt for peace of mind.

Note: This assignment is compulsory.

Study Chapters 1 to 6 thoroughly before you answer this assignment.

Read through the case study and answer all the questions that follow.

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Case study: Fred’s Pie in the Sky

Fred Kotze worked in the bakery of a Checkers in Pretoria for twelve years. Three years ago, he
resigned and started his own enterprise, Fred’s Pie in the Sky, which he registered as a sole
proprietorship. The enterprise was located in a small shopping centre near Hatfield, close to the
Gautrain station. His product range consisted only of freshly baked, pies of all shapes, sizes and
flavours. His target market comprised mostly commuters and people who worked in the immediate
vicinity of the enterprise.

Fred invested R120 000 of his own capital in the enterprise, but this amount was not nearly
enough to cover his expenses. He had to buy ovens, kitchen equipment, counters and tills. To
finance this, he took out a loan of R160 000, which he planned to pay back over five years. He
also applied for a bank overdraft to finance his initial stock and to pay salaries and expenses for
the first few months.

Fred employed three persons – a baker, a saleslady and an administrative assistant. He bought
his ingredients such as flour, salt, sugar, butter, eggs, various meats, vegetables and fruit from a
wholesaler in Hatfield. Fred’s products became well known in the area. Local cafés and
businesses started ordering pies from him. They encouraged him to include other pastry products
in his product range and suggested that he consider catering for small functions in the area. Fred
tried it on a trial basis and it was such a success that he started doing it on a full-time basis. Other
businesses in the surrounding areas also heard of his catering services and started using Fred’s
Pie in the Sky to cater for their office functions.
Fred’s products became so popular that he could not supply enough to satisfy the growing
demand. He realised that the capacity of his enterprise was far too small and decided to move to
bigger premises. This decision, however, meant that he would need more employees and more
capital. He decided to involve two of his friends in the enterprise to accumulate more capital and
they registered the new enterprise as a partnership. Fred invested R120 000 of his own capital in
the partnership and his friends contributed R40 000 each.
Fred decided to buy a building next to a local shopping centre and he applied for a long-term loan
to buy the new premises. The premises already had water and electricity and the building was big
enough to be divided into a kitchen and a sales area. The shopping centre management also
agreed that his customers could use their parking area.

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Fred did not advertise his products. He depended on the fact that his pastry shop was visible and
well-known in the area. However, when he moved to the new premises, he distributed pamphlets
to the local businesses to inform them about his products and placed advertisements in the local
newspapers to make consumers aware of his special offers. He also sent e-mails to businesses
that made use of his catering services on a regular basis to inform them about his new location.

Fred also decided to change his supplier, as his current supplier was unreliable. One of his clients
told him about a wholesaler in Centurion who specialised in the supply of baking ingredients.
Although the location of this supplier was further away than the one he had been using, they
provided a delivery service and their products were much cheaper and of the highest quality.

Fred realised the importance of his social responsibility towards the community of Hatfield. Since
the type of products that he sold always had to be fresh, he decided to donate the products that
have not been sold by the end of the day, to an old-age home close by.

Fred’s relocation to the new pastry shop, however, had one disadvantage. His pastry shop was
now farther away from the Gautrain station and he, therefore, lost the support of some of his
clients. Fred’s saleslady, Jossine, came up with the idea of opening a coffee shop as the sales
area was big enough for a few tables and chairs. The coffee shop made a huge contribution
towards the success of Fred’s Pie in the Sky.

Chapter 1

1. Jossine could be regarded as a/an _______ because she came up with the idea of opening
a coffee shop.
1) entrepreneur
2) intrapreneur
3) small business manager
4) franchisor

2. When Fred started the enterprise, he appointed three employees. At that stage, Fred’s Pie
in the Sky could be classified as a _______ business.
1) very small
2) small
3) medium
4) large
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3. Fred registered his enterprise as a sole proprietorship, which indicates that he operated as a
formal enterprise. A disadvantage of a formal enterprise is that Fred _______.
1) does not have to keep financial records
2) has to pay tax
3) has easier access to finance
4) does not need to have recognised business premises

4. Fred included other pastry products in his product range. This is an example of how he
displayed his _______.
1) willingness to take calculated risks
2) creativity
3) ability to manage his own business
4) innovative ability

5. Fred invested R120 000 of his own capital in the enterprise and could, therefore, be
described as someone who _______.
1) manages his own enterprise
2) has insight into the market
3) identifies new opportunities
4) is willing to take calculated risks
6. To create an attractive pastry shop is an example of the following functional management
skill:
1) The importance of quality products
2) Customer service
3) Knowledge of competitors
4) General management skills

Chapter 2

7. The route that a pie follows from its original form until Fred sells it to his customers, is
known as the _______.
1) tertiary sector
2) primary sector
3) establishment
4) industrial column
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8. Fred’s Pie in the Sky has direct control over the _______ environment of the enterprise.
1) micro-
2) market
3) macro-
4) external

9. The flour, salt, sugar, butter, eggs, various meat, vegetables and fruit that Fred’s Pie in
the Sky uses to bake the pies could be regarded as examples of _______ as a factor of
production.
1) entrepreneurship
2) natural resources
3) capital
4) labour

10. If Fred’s consumers are not satisfied with the quality of the pies, they have the right to
complain. This refers to the right of consumers to _______.
1) be heard
2) exercise personal choice
3) be informed
4) be protected

11. Consumers who prefer to buy their pies from a supermarket have the opportunity to choose
between pies from various bakery suppliers. This refers to competition between _______.
1) the needs of consumers
2) the ways in which a need can be satisfied
3) product forms
4) different trademarks

12. Fred decided to rather buy his baking ingredients from a wholesaler in Centurion. This
wholesaler forms part of Fred’s Pie in the Sky’s _______ environment.
1) micro-
2) market
3) macro-
4) social
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13. The type of products Fred’s consumers prefer is determined by the _______ environment
of the enterprise.
1) political
2) physical
3) international
4) social

Chapter 3

14. Fred applied for a long-term loan of R160 000 to buy ovens, kitchen equipment, counters
and tills during the _______ stage in the creation of Fred’s Pie in the Sky.
1) idea
2) planning
3) viability
4) implementation

15. Fred had to apply divergent and convergent thinking to come up with creative ideas for Fred’s
Pie in the Sky. Divergent thinking _______.
1) entails the ability to evaluate ideas logically
2) is essential to the novelty of creative ideas
3) entails the ability to think of many original ideas
4) is essential to the appropriateness of the products

Choose the correct option:

1) a, b
2) b, c
3) a, d
4) c, d

16. Fred judges everything he observes according to the strength of the ideas he can
develop from it. To which one of the following methods of cultivating a creative attitude does
this statement refer?
1) To actively seek ideas
2) To write down his ideas
3) To view the topic from another person’s point of view
4) To explore grey areas
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17. Fred worked in the bakery of a Spar in Pretoria for twelve years. To generate the business
idea of starting his own pastry shop, Fred used his _______.
1) skills
2) expertise
3) talents
4) aptitudes

18. A bow-tie diagram could have been used to develop Fred’s idea in terms of the _______ of
the idea.
1) viability
2) feasibility
3) essence
4) market potential
19. Fred had to conduct a feasibility study to determine _______.
1) how many consumers would buy his pies
2) his ability to convert his idea into an enterprise
3) whether his idea would be profitable
4) whether his idea would be sustainable

Chapter 4

20. Fred had to determine the characteristics of his potential consumers. This is known as a
_______.
1) need analysis
2) potential market share
3) marketing strategy
4) customer profile

21. After Fred had done a need analysis of his consumers, the basis of his _______ was
formed.
1) marketing strategy
2) market segmentation
3) profit potential
4) cost analysis
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22. The average income of Fred’s consumers’ would determine their ability to pay for his pies.
This relates to the _______ segment of the total potential market of Fred’s Pie in the Sky’s.
1) geographic
2) demographic
3) psychographic
4) behaviouristic

23. The commuters and people who work in the immediate vicinity of Fred’s Pie in the Sky would
buy Fred’s pies on a daily basis. This relates to the _______ segment of the total potential
market of Fred’s Pie in the Sky.
1) geographic
2) demographic
3) psychographic
4) behaviouristic
24. Fred worked in the bakery of a Checkers in Pretoria for twelve years. He could list this as
a/an _______ in his SWOT analysis.
1) strength
2) weakness
3) opportunity
4) threat

25. Fred’s current supplier was unreliable. He could list this as a/an _______ in his SWOT
analysis.
1) strength
2) weakness
3) opportunity
4) threat

26. To calculate the break-even point in rand value, Fred should divide the fixed costs by the
_______.
1) gross profit margin percentage
2) total costs per unit
3) price per unit
4) net profit margin percentage

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Chapter 5

27. Fred included a short summary of the characteristics of the production branch and the
branch of industry under which Fred’s Pie in the Sky falls. This was included under the
_______.
1) description of his enterprise
2) marketing plan
3) management plan
4) financial plan

28. Fred indicated who and where his supplier was when he wrote the _______ in his business
plan.
1) description of his enterprise
2) executive summary
3) management plan
4) conclusion

29. Fred included information on his competitors and the products or services they offer when
he wrote the _______ of his business plan.
1) executive summary
2) marketing plan
3) management plan
4) conclusion

30. Fred would have included an illustration of the management and employees of Fred’s Pie
in the Sky and their responsibilities in the _______ as part of the management plan.
1) organisational structure
2) human resource plan
3) form of enterprise
4) ownership structure

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31. Fred invested R120 000 of his own capital in the partnership and his friends contributed
R40000 each. According to their capital contribution, each of his friends owns _______ of
Fred’s Pie in the Sky.
1) 10%
2) 20%
3) 40%
4) 60%

32. Fred had to indicate which sources of capital he used to finance the enterprise when he drew
up his financial plan. He would have mentioned the _______ as an example of an external
source of capital.
1) R120 000 he invested in the enterprise
2) R40 000 each of his friends invested in the enterprise
3) long-term loan to buy the new pastry shop
4) profits he ploughed back into the enterprise

33. To calculate the net cash balance in his cash budget, Fred would _______.
1) add the total cash receipts to the total cash payments
2) deduct the total cash receipts from the total cash payments
3) add the opening cash balance to the total cash payments
4) deduct the total cash payments from the total cash receipts

34. Fred’s balance sheet would indicate the _______ of Fred’s Pie in the Sky.
1) assets and liabilities
2) income and expenditure
3) profit and loss
4) cash receipts and cash payments

Chapter 6

35. For Fred, the biggest advantage of the new premises is the presence of security guards, which
eliminated the theft and burglaries he had experienced at his previous premises. This
relates to the _______ as an establishment factor.

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1) market
2) suitability of the premises
3) accessibility of the premises
4) cumulative attraction of the premises

36. Transforming ingredients into pies is the responsibility of the _______ function of Fred’s
Pie in the Sky.
1) information management
2) marketing
3) purchasing
4) operations

37. Fred also decided to change his supplier. The _______ function is responsible for finding
suitable suppliers of ingredients and comparing their prices and quality.
1) information management
2) marketing
3) purchasing
4) operations

38. The marketing function is responsible for determining the marketing strategy of Fred’s Pie in
the Sky. Their marketing strategy would consist of four elements, namely their product, price,
distribution and _______.
1) marketing communication
2) market share
3) market analysis
4) marketing plan

39. Fred decided to donate the products that have not been sold by the end of the day to an old-
age home nearby. The fulfilment of their social responsibility will promote the image of
Fred’s Pie in the Sky and, therefore, form part of the responsibilities of the _______ function.
1) general management
2) marketing
3) information management
4) public relations

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40. As the general managers of Fred’s Pie in the Sky, Fred and his partners have to motivate
their employees. This relates to _______ as an element of the general management function.
1) planning
2) organising
3) leading
4) control

TOTAL: 40
END OF ASSIGNMENT 02

1.3 Other assessment

As an additional means of assessment, self-assessment questions will periodically be uploaded

on myUnisa in the weeks leading up to the examination.

These self-assessment questions will not contribute to your year mark and should only be used

for revision purposes. Announcements will be made on myUnisa to inform students as the

exercises are uploaded.

1.4 The examination

The BSM1501 examination for 2021 will be conducted online on the myExams platform.
Information will be announced on myUnisa as it becomes available.
For all other information regarding module BSM1501, you should still refer to Tutorial letter
101/3/2021.

If you have any problems with your studies during the semester, please do not hesitate to contact
your lecturer by sending an email to:

Dr Shamila Ramjawan Email address: ramjas@unisa.ac.za

Ms Nadia van Huyssteen Email address: marxn@unisa.ac.za

We wish you everything of the best in your studies.

THE LECTURERS: BUSINESS MANAGEMENT

DEPARTMENT OF BUSINESS MANAGEMENT

UNISA

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