ST10028294 NTHABISENG DMG1_GROUP2

BUSINESS
MANAGEMENT
BUSM5112- LERATO SEMENO
TEST 30/09/2022

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QUESTION 1

1.1. The recruitment process:

It is the steps involved in attracting and hiring a new employee to fill a position in an organization.
Managers, Human Resource Management (HRM), recruiters, or a combination of the three are typically in
charge of this task. Human resource managers are typically in charge of this process, working with relevant
departments and team members to streamline recruitment.
The recruitment process entails identifying the candidate with the best combination of skills, experience,
and personality for the job. It entails gathering and reviewing resumes, conducting job interviews, and
finally selecting and onboarding an employee to begin working for the company.

 GUSCO needs to implement the recruitment process to identify candidates best suited for the
company to avoid the challenges that could have an impact or rather affect the productivity or
sustainability plan.

1.2. The production orientation:

A production-oriented company chooses to ignore their customers' needs to focus solely on efficiently
building a quality product. This type of business believes that if they can create the best 'mousetrap’, their
customers will flock to them.

 Assumption: They can make a profit if they sell enough of their products. GUSCO can double the
number of bags by the week with more increase in productivity.

1.3. Segmentation:
It is a marketing term that refers to the grouping of prospective buyers into groups or segments with
similar needs and responses to marketing actions. Market segmentation allows businesses to target
different types of consumers who perceive the full value of different products and services differently.
Market segmentation enables a company to improve its overall efficiency by directing limited resources
toward efforts that yield the highest return on investment (ROI).

 GUSCO’s target market is the private sector, in particular retail supermarket chains.

1.4. Productivity:

Productivity is a measure of economic or business performance that indicates how efficiently individuals,
businesses, industries, and entire economies convert inputs like labor and capital into outputs like goods or
services.

 The increase in production, which more than doubled over a period of three years – from 3 000
bags a week in January 2007 to 7 000 bags a week by end November 2009.

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1.5. Human resource planning:

Human resource planning (HRP) is the ongoing process of planning ahead to make the best use of an
organization's most valuable asset—quality employees. Human resource planning ensures that employees
and jobs are a good fit while avoiding manpower shortages or surpluses.

 The enterprise managed to overcome the conflict and absenteeism challenges with the help of the
Small Enterprise Development Agency (Seda) Productivity Improvement Mentorship Project and
developed policies and procedures to deal with conflict in the workplace as well as employee
absenteeism.

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QUESTION 2

2.1. Referrals: Recruiting referrals are an excellent way to find candidates. Through your network, you find
referred candidates. Inform your client list and candidate pool that you value referrals. Maintain contact
with previous candidates and clients who can refer you to new leads.

Job Boards: To attract external candidates, post your client's opening on the top job boards. A detailed
description should be included in the job advertisement. Include the skills and qualities that your client
seeks. Consider integrating your job board with your website and applicant tracking system. Candidates
who apply through the job board will be organized for you by the applicant tracking system.

Advertising: Placing job advertisements in industry publications can be an excellent way to find many
qualified applicants. These publications are frequently read by people who already work in your industry or
are sought after by people who want to work in a specific industry or field.

Recruitment agencies: Established recruitment agencies with a solid reputation can tap into their existing
candidate pool as well as advertise for additional candidates to connect you with top-tier job seekers.
Many agencies specialize in a particular industry or recruit for specific industries, and they may even be
able to headhunt your ideal candidate.

Professional association: Professional institutes and trade associations can be excellent sources of highly
skilled, professional candidates. Many professions require those who qualify to register with the
appropriate professional association, so you may be able to target potential employees by gaining access
to their membership directories.

2.2. The Training and Development Manager oversees increasing the organization's employee productivity.
This position evaluates company-wide development needs to drive training initiatives and identifies and
arranges appropriate training solutions for employees. This position actively seeks, designs, and
implements effective methods for educating, improving performance, and recognizing performance. The
following are the five responsibilities of a manager in the training and development process:
1. Employee development and training events are planned, organized, facilitated, and supplied.
2. Creates and maintains organizational communications such as intranet bulletin boards and
newsletters to keep employees informed about training and development events and resources.
3. Follows up on all completed training to evaluate and measure results.
4. Exhibits the desired organizational culture and philosophies.
5. Works well as part of a team with other members of management and HR personnel.

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2.3. External Recruitment is when a company seeks to fill an open position with someone who does not
work for the company.

External recruitment can help your organization become more diverse.

Incorporating multiple points of view can lead to innovation and more effective
practices. Creating a diverse workforce and providing a platform for a variety of
Advantage: voices promotes inclusion and empowerment.
Increasing diversity
Example: Small Enterprise Development Agency (Seda) Productivity
Improvement Mentorship Project. Mentoring has also played an important role in
ensuring the continued success of the enterprise.
When new employees start at a company, the people they work with usually go
through a transition period. Employees may need a few weeks to adjust to a new
member of the department, especially if the new hire is in a leadership position. A
new employee requires time to learn common company practices, meet their
Disadvantage:
coworkers, and develop strategies. This may result in a decrease in productivity
Adds a period of
during this time period.
transition for all
employees
Example: Training and skills development in relation to productivity and
performance management, as well as conflict resolution, has helped the enterprise
to better deal with issues which may arise in the workplace, assisting them to
improve productivity and remain profitable.

2.4. Leading

 Salary rates are aggressively set above the market in a leading compensation strategy. It is easier to
attract qualified talent and retain your best employees if you pay them more than the market rate.
You also distinguish yourself from other organizations by promoting the notion that your company
is the employer of choice.
 To pursue a leading compensation strategy, you must have the financial resources to pay
employees higher wages.

Lagging
 When you set salary rates below the market rate, you are using a lagging compensation strategy.
There are several reasons why employees should be paid less than the market rate. Smaller
organizations lack the financial resources to pay salaries. Others, such as nonprofits and charitable
organizations, use non-monetary factors to attract talent.
 Choosing a lagging strategy can help you save money, which you can then use to offer benefits and
incentives. Paying below-market wages makes it difficult to attract good employees, and well-
trained employees may leave for higher-paying competitors.

Getting to Know the Market

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 Meeting the market is a compensation strategy in which employees are paid the market rate.
Employees in this strategy are compensated and expected to perform well.

 Meeting the market, the most common compensation strategy, ensures that your pay and costs are
competitive. Bonuses and short-term incentives can be shared with employees in good financial
times. Though employees are well compensated, this strategy may make it difficult to retain your
best employees as they are recruited by companies offering higher pay.

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QUESTION 3

3.1.

Green Marketing Green Product Development

Environmental marketing provides a competitive
advantage.
Green marketing positions you as a conscious or
responsible leader in your industry. This is true
even for customers who do not place a high
Advantages value on environmental issues.
It also opens a broader range of marketing
points to promote and discuss with your
customers, going beyond traditional strategies
like having the lowest price, durability, and style.
Instead of focusing solely on the price and value
of your product, emphasize its environmental
and social benefits.
Examples The Body Shop
Easy access to environmentally
friendly markets.
Creating sustainable products
opens a whole new market of
green users who only buy
sustainable items and are willing
to pay a premium for them.
Furthermore, adopting green
strategies provides brands with a
competitive advantage in the
market.
Forest Stewardship Council (FSC)

3.2.

1. Culture
Cultural factors have a significant impact on consumer purchasing behavior. Cultural Factors are
the fundamental values, needs, wants, preferences, perceptions, and behaviors that a consumer
observes and learns from close family members and other important people in their lives. Some
families or people in general prefer Woolworths due to brand loyalty.

2. Social Status
Every society on the planet has some form of social class. The social class is determined not only by
income, but also by occupation, family background, education, and residence location. Consumer
behavior is influenced by social class. Some customers prefer Woolworths reusable shopping bags
due to the quality it produces, and some prefer it for the social status since Woolworths is known
for high-class.

3. Groups of Reference
Reference groups are essentially groups of people with whom we identify. Clubs, schools,
professional or playgroups, churches, and even acquaintances or a group of friends are examples.
People in reference groups usually have a common purchasing pattern and an opinion leader who
influences their purchasing behavior. Woolworths is for high-class and quality, and its customers
are very influential.

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3.3. Psychographic segmentation is a type of market segmentation that considers consumers' perceptions,
thoughts, and beliefs and uses this information to create customer segments. It is a critical process that
bridges the psychological gap between consumers and your product.

Advantages Disadvantages
Analyze consumer behavior by looking at their Standards must be clearly defined.
personalities, lifestyles, or social standing.
It is far more effective than geographic or Obtaining insights is expensive.
demographic segmentation because it includes
information about factors such as lifestyles,
interests, and opinions.

3.4.

PRODUCT PRICE PLACE PROMOTION

Examine the product Consider the Placement entails Only in the context of
you intend to sell. What appropriate price for determining the type of your target consumer
are the features that the product. It is more store, both online and can promotion be
make it appealing? than just the cost of offline, that stocks considered. The product
Consider other similar production plus a profit products like yours for may appeal to a hip
products that are margin. You could customers similar to younger demographic,
currently available on position it as a premium yours. upscale professionals,
the market. Your or luxury product, or as or bargain hunter. Your
product could be a low-cost alternative. media strategy must
stronger, easier to use, target the appropriate
more appealing, or last audience with the
longer. Its ingredients appropriate message.
could be
environmentally friendly
or sourced naturally.
Determine the
characteristics that will
make it appealing to
your target consumers.
Example: the group Example: GUSCO is Example: Woolworths Example: GUSCO’s
approached producing 10 000 bags a for reusable shopping target market is the
Woolworths with a week for Woolworths bags. private sector; in
proposal to and the value of the particular retail
manufacture reusable contract stands at over supermarket chains.
shopping bags. R3.1 million a year.

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QUESTION 4

4.1.

Inputs Transformation Outputs

Extrusion of raw material Transportation Ready to use
Extrusion of plastic film Packaging Recyclable
Rotational molding Processing Reusable bags
Printing Landfill and Litter
Converting: Plastic bag making Packaging

4.2.

1. Goods and services: This includes identifying ways to implement cost, quality, and resource
consistency across all business divisions.
 The increase in production, which more than doubled over a period of three years – from 3 000
bags a week in January 2007 to 7 000 bags a week by end November 2009.

2. Quality Management: Understand the customer's expectations and then meet them. To determine
customer needs, conduct market research and batch quality assurance testing on products and
services in production.
 Woolworths offered a small portion of its target to GUSCO, agreeing to a trial contract for 300 bags
a week to determine if GUSCO could deliver. Its contract is renewed annually based on
performance. GUSCO is producing 10 000 bags a week for Woolworths and the value of the
contract stands at over R3.1 million a year.

3. Layout Design and Strategy: Consider the placement of desks, workstations, and how materials are
delivered and used.
 Apart from the 13 members occupying senior positions, the 31 remaining women are machinists
and the two men assist with the cutting of the materials and handling heavy goods.

4. Human Resources and Job Design: To achieve success in this area, implement continuous
improvement programs with regular reviews, provide continuous training for employees, and
institute employee satisfaction programs.

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 Training and skills development in relation to productivity and performance management, as well
as conflict resolution, has helped the enterprise to better deal with issues which may arise in the
workplace, assisting them to improve productivity and remain profitable.

5. Supply Chain Management: Identify the best strategies for streamlining, cost-cutting, and
developing trusted partner.
 Half of these employees are in permanent full-time contractual positions, with the other half
occupying temporary part time positions i.e., seasonal workers brought in when there is an increase
in demand from Woolworths, usually Christmas or Easter season

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REFERENCE LIST

Camilleri, M. A. (2018). Market Segmentation, Targeting and Positioning. In Travel Marketing, Tourism
Economics, and the Airline Product (Chapter 4, pp. 69-83). Springer, Cham, Switzerland.
Etan Vlessing, "Canada's Privacy Czar Tells Advertisers to Curb Online Tracking." Hollywood Reporter,
December 6, 2011, www hollywoodreporter.com.
Henry L. Gantt. (1901). Scheduling Techniques for Employees, Machines Jobs in Manufacturing. Operations
Management.
Murali. S. (2007), "Costing HR services in Business Organizations", HRM Review, March pp27-30.
NASSCOM. (2006), How do Best Employers Recruit? in Recruitment Practices :The Who, What and How of
Sourcing the Best,-HR Connect, No.3,Ocober, p.5.
Tom Loftus, "Google Aims to Answer the 'Why?' Behind Ad Targeting." Wall Street Journal, November 1,
2011, www.wsj.com. 24. "Cookie Law Deferred for One Year," BBC News, May 25, 2011, www.bbc.co.uk.

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