COBM111

Chapter 1 Worksheet

What is business management?

This worksheet was adopted from Introduction to Business Management – Fresh

Perspective.

Section A: Short Questions

Question 1
Choose three business functions. For each function provide one macro environmental factor
that may influence it.

Question 2
What are the factors of production? Choose a tangible product and identify how the factors of
production were applied to it.

Question 3
How do the three main economic systems view:
• Land ownership
• Labour
• Consumers

COBM111 Chapter 1 Worksheet/Version 1.0/Date 24/01/2019

Question 4
Give a brief summary of the sectors in industry and describe how a cotton T-shirt would pass
through each sector.

Question 5
Candy Inc. is a specialised sweet shop that only produces goods without sugar. Candy, the
owner has created a strategy targeting a very unique, niche market – customers who want to
enjoy life and food in a healthy manner and are willing to pay for it. Candy has hired two
sales ladies, a bookkeeper and a maintenance man. Each employee has a set of
responsibilities that keep the business running smoothly. At the beginning of the day Candy
gathers her staff and they discuss the objectives of the day and the tasks they need to
complete. At the end of the day, Candy checks on the production process, has a quick look
at the books and speaks to each staff member for 10 minutes, just to make sure they have
no issues.

Identify the four management tasks that Candy uses. Which do you think is the most
important? Motivate your answer.

Section B: Case Study

Sandra is the managing director of South Africa’s biggest nursery and gardening shop,
Flower Power. She takes great pride in growing and selling the most beautiful plants from all
around the world through her thirty outlets scattered around the main cities. Sandra is known
to say, ‘Plants bring light, love and personality to a house, transforming it into a home.’

Flower Power employs over two hundred people and owns the most innovative and high-tech
cultivation equipment. Each employee goes through a one-month training process where
they learn about plant production and the objectives of the business. Employees learn about
the structure of the organisation, and who is responsible for each task. They learn about how
their work will be evaluated and compensated, and how it fits into the larger business
processes and goals. Sandra believes in upskilling all her employees, and they all have
access to a range of optional study courses.

Sandra also believes in growing relationships with her customers. She opens coffee shops in
all her stores. The waitrons have a deep understanding of both plant life and customer care.
Sandra believes this is the biggest point of differentiation between Flower Power and other
nurseries, as customers can relax at the restaurant and gain knowledge and skills to improve
their gardening experience.

COBM111 Chapter 1 Worksheet/Version 1.0/Date 24/01/2019

Flower Power has a large, loyal customer base. The company produces and sells more
gardening plants than any other company in the country, and uses this advantage to produce
products in mass and sell them at a premium price.

Questions 1:
Which of Maslow’s needs does Flower Power satisfy? How does it meet these needs?

Questions 2:
Sandra wants to go further to meet her customers’ needs for socialisation and self-
actualisation. How could she do this?

Questions 3:
Using examples from the case study, identify Flower Power’s factors of production.

Questions 4:
What is the economic principle and how does Sandra try to meet it?

Questions 5:
What management activities does Sandra use to ensure her business is effective and efficient?

COBM111 Chapter 1 Worksheet/Version 1.0/Date 24/01/2019