FINAL EXAMINATION

Faculty of Business

Course :
MPU3233
Entrepreneurship

Date : 27th November 2021

Time : 9.30 am – 12.30 pm

Duration : 3 hours

Module Lecturer : NUR ZAFIRAH BINTI ABDUL RAHIM

Total marks : 100 marks (worth 40%)

Instructions to candidates:

1. Write your name and student number on the Examination Paper.

2. Answer questions according to the instruction for each section.

3. Do not detach any portion of the examination paper.

4. Begin writing, as indicated, after the reading time has ended.

5. All questions to be answered in the answer booklet.

Materials allowed for this examination:

1. NIL.

DO NOT REMOVE ANY PART OF THIS EXAMINATION PAPER FROM THE

EXAMINATION ROOM

Student ID : ___________________________________________________

NIRC/Passport No : ___________________________________________________

Program : ___________________________________________________

Lecturer : ___________________________________________________
Date:27th November 2021 Course: MPU3233 Entrepreneurship

SECTION A – CASE STUDY [Total = 100 marks]

Answer ALL questions.

Never Too Old To Start A Business – Maggie’s Original Mageu

At the ripe old age of 82 years, Maggie Mogase is no ordinary grandma. She is the

entrepreneurial co-founder of Maggie’s Original Mageu, a business which manufactures and

distributes the traditional, maize-based fermented drink. After starting on a small scale in

2006, Maggie accessed assistance from Small Enterprise Development Agency (Seda) and

funding from the Technology Transfer Fund, which has enabled her to grow the concern and

supply supermarkets across Garankuwa and neighbouring areas.

Mageu is the generic name for the non-dairy, non-alcoholic energy-giving beverage

used by many of the maize-consuming populations in Africa. “My recipe was first formulated

by my loving grandmother, the late Mrs Sapula Pooe, during the great famine of 1933,” says

Maggie. “This was a difficult time in our history where crops failed, scores of livestock

perished and lots of people died of starvation. Faced with the challenge of feeding fourteen

grandchildren, my grandmother decided to make a tasty nourishing meal for us. This is how

our Original Mageu was born and like my grandmother, I have passed the recipe down to my

grandchildren who are now my business partners.”

Maggie was referred to Seda and was encouraged to apply for funding from the

Technology Transfer Fund in 2006. The Technology Transfer Fund assists small businesses

to improve their competitiveness through technology transfer and pays for technical training.

After being assessed by a Seda Technology Fund project officer, Maggie's Original Mageu

received funding to acquire bottling, labelling, cooling and flavouring equipment, which

enabled the business to scale up production whilst improving capacity, quality and efficiency.

Seda is currently assisting the business with a quality management assessment, and

will continue to provide advice and support as the business grows. Maggie’s story proves that

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you’re never too old to start a business! Aspiring entrepreneurs like Maggie can access

information, resources and services through Seda branches.

Source: www.seda.org.za

You are Jane Smith, Marketing

and Sales Director of
MedTech, the global
pharmaceutical company. You
receive the following email:-
From: John Robertson,
Managing Director
To: Jane Smith, Global
Marketing and Sales Director
Hi Jane,
It’s been five years since we
got approval for the new
cancer drug, recruited
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the salesforce and got it into

the market. Sales have been
good but having
looked at the latest figures I
would have hoped they would
be much higher by
now.
You are Jane Smith, Marketing
and Sales Director of
MedTech, the global
pharmaceutical company. You
receive the following email:-
From: John Robertson,
Managing Director
To: Jane Smith, Global
Marketing and Sales Director
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Date:27th November 2021 Course: MPU3233 Entrepreneurship

Hi Jane,
It’s been five years since we
got approval for the new
cancer drug, recruited
the salesforce and got it into
the market. Sales have been
good but having
looked at the latest figures I
would have hoped they would
be much higher by
now
QUESTION 1

From the case study above, we know that Maggie Mogase is no ordinary grandma.

(a) What factors inspire Maggie to start her business? Explain it. (10 Marks)

(b) Explain what kind of supports that Maggie had for her business? (15 Marks)

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Discuss the advantages and

disadvantages of Medtech
paying the
salesforce on a commission-
only basis. What specific
changes would
you recommend to John and
wh
QUESTION 2

When Maggie starts a new business, it brings many benefits. Please discuss how Maggie’s
business can benefit community.
(25 marks)

QUESTION 3

From the case study we know that Maggie can be considered as entrepreneur who takes a
risk and ventures in business market. Discuss several risks that Maggie will face for being an
entrepreneur.
(25 marks)

The several risks was faced by Maggie Mogase is no money to to start up a business. They
do not have money for the resources. Maggie was referred to SEDA and was encouraged to
apply for funding from the TTF in 2006. Technology Transfer Fund (TTF) which means a
micro-enterprise, most have informal processes, human resources from non-technical
personnel to semi-technical personnel, limited sales, limited turnover and assets, so limited
ability to obtain equipment financing through a business loan. (seda.org.za)

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Next, they do not have POLC skills and management skills to organize their business and
also do not go for business training. These skills can help them to succeed in business.
Furthermore, before they start the business they do not have SEDA to support and provide
business advice for them. They also do not know the strict market access regulations,
government regulations, taxes, environmental regulations, loan requirements, and permits are
all barriers to entrepreneurship. This is difficult for them because they first time to start the
business. They lack opportunity in the market, venture capital requires existing market
opportunities, the possibility that entrepreneurs know and the possibility of success for
entrepreneurs.

Next is lack of capacity, opportunities will continue to exist until someone keeps an eye on the
possibilities and attitudes that can be achieved. Certain cultures may hinder entrepreneurial
ability, resulting in low entry rates for new companies. It's like having an oil field that has no
knowledgeable people to produce oil wells. Entrepreneurship refers to the existence of people
with entrepreneurial talent and initiative.

Lastly is the lack of market experience, the essence of leadership is to learn and do things
before leading. Therefore, previous education and work experience can promote
entrepreneurial ability. Breaking into a new market is because it looks unattractive, and it can
be fatal without any experience and background.

QUESTION 4

Marketing strategy can boost Maggie’s business to the next level. Discuss FIVE (5)
suggestions on suitable marketing strategies for Maggie’s business.
(25 marks)

The 5 marketing strategies that are suitable for Maggie’s business are first and
foremost to Identify Competitors.
Before introducing a new product in the market, you need to study your competitors
first. This is not a tactic to bring down other people’s business but this method is applied to
ensure and avoid any similarities whether physical of the product or marketing method.
However, if the industry you are in has a small market, this similarity is sometimes
unavoidable. If this happens, you need to add a few things to interest your customers to know
more about the product or service you provide.Evaluate Maggie’s key business products or
services. Maggie will compete for consumers with other companies that use this product.
Make a list of products in a spreadsheet or paper column. While Maggie’s business may have

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some tangent products or services that increase the sales of her business then Maggie is not
competing with other companies that sell it.For example, Maggie could include a key chain
with Maggie’s gift company name on every order of a traditional corn -based fermented drink
that Maggie will send. This is a nice bonus for customers, but it doesn’t keep you competing
with office supply stores.In general, for example the entrepreneurship of Maggie’s Original
Mageu, a business that produces and distributes traditional fermented corn -based beverages
at the same time Maggie’s business also produces fermented corn -based foods that are
different from other merchants. This will make a small part of your benefits. The sale of
fermented corn drinks is a key product of Maggie’s business to generate a good profit. So the
competition of Maggie's business with other traders will be less where Maggie's business
specializes in the sale of beverages tapai corn but has a twist.Find a company that sells the
product or offers the service. Find these products or services using phone books, Internet
searches on more than one major search engine, online marketplaces and social networking
sites. In a row of spreadsheet or paper, write 5 to 10 business names that compete with the
products marketed by Maggie’s business. Anyone who sells a product competes with online
sellers.Finding a phone book can help identify local competitors. Finding a social media
account will help identify new and emerging competitors. It is important to search locally and
nationally. With the emergence of the global economy, there may be companies in other
countries that offer products that are most similar to the products marketed by Maggie’s
business. While Maggie’s business may not be able to compete with the low prices of
overseas manufacturers, knowing that it exists can help focus Maggie’s local marketing
campaign.

Secondly, Attractive Product Packaging. An effective marketing strategy on Maggie’s

business is that if you want to market a new product, the way the product is packaged also
plays an important role. For customers, apart from product quality, packaging is also able to
influence their choices. Let’s say there are two similar products, but your product has a more
attractive and creative packaging, surely those customers will be more interested in the
products produced by Maggie’s business.It is recommended for Maggie's business to choose
packaging that is colorful, durable material and can also be accompanied by a product
sticker. Product packaging is one of the marketing tools of your business. Having attractive
packaging gives you the opportunity to convey a concise message about your business.
Whether your business is small or large, attractive packaging needs attention.There are three
main functions of packaging namely for protection which it can protect the product from any
damage due to temperature, transportation, weather, pests and so on. The second is the
medium of communication to provide information about the product you provide such as

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company name, address, product ingredients, expiration date, barcode, certification and so
on. The third promotion is what you offer such as lucky draws, discounts, and so on. There
are products that use appropriate packaging for festive celebrations.

Thirdly is Mastering Digital Marketing. In today’s modernity and rapidity of technology,

the way products are marketed is also changing. With the internet, our products can be
marketed worldwide with just one click.So Maggie's business can take advantage of this
opportunity to market maize-based fermented drink products on all social media platforms
such as Facebook, Twitter, Instagram and TikTok. With millions of users on the social site, it
will definitely increase the sales of the products marketed. For Maggie’s Original Mageu
which has stood as a large company, Maggie can also take the opportunity to market
products through Search Engine Marketing (SME) and Search Engine Optimization (SEO).
Both of these methods are not only able to promote expensive new products increasing the
website traffic of Maggie’s Original Mageu company. Here are 4 fillings that Maggie can
master:
 Google My Business
 Google Ads (formerly known as Google AdWords)
 Google Analytics
 Google Digital Garage

Digital marketing can provide a clear and definite direction and purpose for Maggie’s Original
Mageu. Most companies that run without digital marketing, they do not have a clear strategic
goal. They have no precise idea of what purpose a company wants to achieve through online
marketing, especially in regards to gaining new customers, increasing sales and maintaining
a deeper relationship between manufacturers and consumers on online platforms. Without
digital marketing, we cannot leverage technological transformation to provide a clear direction
on a company’s growth.

Fourthly, determining Product Sales Locations. Although the business world today is
increasingly active through online trading. Yet it does not rule out the fact for entrepreneurs
nowadays to continue to sell products physically. As a dealer, Maggie needs to think of a
suitable location to sell Maggie’s Original Mageu products. Among the things that need to be
emphasized is the target group of the business. When Maggie’s Original Mageu conducts
their business activities by marketing their products, Maggie as the founder needs to look at
the population density somewhere. In addition, you also need to see if there are other
vendors that also sell cakes. Don't forget to provide banners or signboards for products that

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are offered to targeted customers at a particular location. Determining a location to do

business should be easily visible among many people. For example, Maggie’s Original
Mageu company has chosen the right store location in a public area that passes by and is
easy to see. Avoid choosing in hidden areas such as alleys or roads that are less passable. It
is better to choose decorations that are able to be attractive such as cheerful colors and
unique decorations in accordance with the theme of the product being marketed to highlight
the identity of maize-based fermented drink products to attract customers. Lokasi yang dipilih
juga perlu ada kemudahan untuk akses pengangkutan awamyang boleh membawa keluar
dan masuk pelanggan. The location chosen should also have facilities for public transport
access that can bring in and out customers. This factor is also able to influence customers to
come and stop by Maggie’s Original Mageu store. Choose a location based on easy routes,
not too busy, and have plenty of parking.

Last but not least, Maggie’s Original Mageu can grow further ahead in line with other
entrepreneurs in the country as well as abroad by maintaining its capabilities. With this,
Maggie's business must enter the international market to help Maggie's Original Mageu
products go to the next level, which is known abroad as well. Maggie’s Original Mageu can
tame in exporting which is the easiest way to enter an international market. Exporting is
entering the market by exporting products and selling them through independent international
marketing middlemen or managing their own exports through the company's overseas sales
center branches, salespeople or agents overseas. Additionally, Maggie’s Original Mageu can
undergo a joint venture, It differs from exports where the company shares with a partner from
the host Country to sell overseas. A joint venture is a business venture that shares with a
foreign company to manufacture or market products and services. Maggie’s business is
advised to try management contracting where Maggie’s business can leverage a domestic
company supplying management knowledge or skills to Maggie’s Original Mageu company
that supplies capital. Domestic companies actually export management services, not
products.With the knowledge services provided, Maggie's business can expand the marketing
of its products overseas easily because the potential of Maggie's business can be further
improved.

-END OF QUESTIONS-

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