Photo AI
3.1 Name and discuss the THREE main types of resources that have to be considered when compiling a business plan - NSC Agricultural Management Practices - Question 3 - 2021 - Paper 1
Question 3
3.1 Name and discuss the THREE main types of resources that have to be considered when compiling a business plan. 3.2 Name the farming system where entrepreneurial ... show full transcript
Worked Solution & Example Answer:3.1 Name and discuss the THREE main types of resources that have to be considered when compiling a business plan - NSC Agricultural Management Practices - Question 3 - 2021 - Paper 1
Step 1
Name and discuss the THREE main types of resources that have to be considered when compiling a business plan.
Answer
1. Human Resources: This includes the individuals who will be involved in the business. Their skills, experience, and ability to work together are crucial in executing the business plan successfully.
2. Financial Resources: These are the funds required to start and run the business. It involves fixed capital, working capital, and any external funding necessary to support operations.
3. Natural Resources: Refers to the availability of land, water, and other natural assets that are essential for the business, especially in farming enterprises. Assessing these resources helps determine the business's sustainability and growth potential.
Step 2
Name the farming system where entrepreneurial characteristics are vital for creating a successful business. Discuss TWO reasons for your answer.
Answer
Farming System: Commercial farming is where entrepreneurial characteristics are vital.
Reason 1: The need for innovation and adaptability to market demands in commercial farming is essential, as farmers must respond to changing consumer preferences and external market conditions.
Reason 2: Effective resource management is critical, as commercial farmers must make informed decisions regarding finances, equipment, and labor to maximize profitability.
Step 3
Step 4
Explain the break-even point for a farming enterprise.
Answer
The break-even point indicates the number of units that must be sold for the business to cover its costs. At this point, total income equals total expenses, resulting in no profit or loss. Understanding BEP helps farmers make informed decisions about pricing, production levels, and financial planning. If sales exceed this number, the operation becomes profitable.
Step 5
Calculate the profit that the farmer will make if the yield is 4 ton/ha.
Answer
To calculate profit:
-
Total Revenue:
- Revenue = Yield x Price = 4 tons/ha x R3,500 = R14,000
-
Total Cost:
- Total Cost = Fixed Cost + Variable Cost = R6,500 + (R1,000 x 4) = R10,500
-
Profit:
- Profit = Total Revenue - Total Cost = R14,000 - R10,500 = R3,500
Step 6
Name the factors that determine the number of products that the consumer is prepared to buy.
Answer
1. Price: The cost of a product can affect consumer demand; typically, lower prices increase willingness to buy.
2. Consumer Preferences: Individual tastes and trends influence purchasing decisions.
3. Availability of Alternatives: The presence of substitutes in the market can limit consumer willingness to buy certain products.
Step 7
Discuss THREE reasons for advertising an agricultural product.
Answer
1. Informing Consumers: Advertising helps inform customers about the availability and benefits of the product.
2. Persuading Purchases: Effective advertising can create a desire to purchase the product by highlighting its unique features or value.
3. Building Brand Recognition: Consistent advertising establishes a brand in the market, fostering trust and loyalty among consumers.
Step 8
Explain the following concepts that must be addressed within the marketing strategies of a business plan.
Answer
3.6.1 Target Market: Identifying the specific group of consumers to aim marketing efforts towards, tailored strategies can lead to better engagement and sales.
3.6.2 Competition: Understanding competitors helps in differentiating products and strategizing on how to capture market share.
3.6.3 Distribution: This involves planning how the product will reach the consumer, ensuring efficiency in delivery and maximizing customer satisfaction.
Step 9
Complete the table below in the ANSWER BOOK. Use the table to distinguish between diversification and specialisation with regard to implements and management.
Answer
Diversification:
- Implements: More implements of different kinds needed, resulting in higher initial investment.
- Management: Knowledge of more than one production area, creating a breadth of expertise.
Specialisation:
- Implements: Less implements of similar kinds needed, which can lower costs.
- Management: Expertise concentrated in a specific area, leading to efficiency and mastery.
Step 10
Which Act entitles the worker to claim for being ill after working with chemicals?
Answer
The Occupational Health and Safety Act entitles the worker to claim compensation for illness resulting from working with chemicals, as it ensures workplace safety and health regulations are adhered to.
Step 11
Indicate the action that the farmer can take if the worker refuses to wear protective clothing when working with chemicals.
Answer
The farmer can take disciplinary action against the worker, which may include issuing a warning, or in extreme cases, termination of employment if the worker continues to refuse to comply with safety regulations.
Step 12
Discuss THREE requirements of the steps that the farmer should follow to correct the worker's action in QUESTION 3.8.2.
Answer
1. Immediate Action: Address the violation as soon as it occurs to reinforce the importance of safety compliance to the worker.
2. Fair Process: Ensure that the action taken is in line with company policy and reasonably related to the misconduct.
3. Documentation: Keep detailed records of the incident and the corrective actions taken, which can be important for future reference and legal purposes.
Step 13
State THREE objectives obtained by the farm manager when he/she motivates the farm workers.
Answer
1. Increased Productivity: Motivated workers are often more productive, leading to increased output and efficiency in operations.
2. Job Satisfaction: Motivation can enhance worker morale, resulting in better retention rates and reduced turnover.
3. Improved Work Environment: A motivated workforce often contributes to a more positive workplace atmosphere, fostering teamwork and collaboration.
Step 14
Give THREE reasons why training farm workers is important.
Answer
1. Enhanced Skills: Training provides workers with the necessary skills to perform their tasks effectively, leading to better job performance.
2. Safety Awareness: Training educates workers on proper safety protocols, reducing the likelihood of accidents and illnesses.
3. Increased Efficiency: Well-trained staff can complete tasks more efficiently, ultimately benefiting the overall productivity of the farm.
Step 15
Name TWO psychological needs of farm workers.
Answer
1. Acceptance by Others: Farm workers often seek acknowledgment and a sense of belonging within their workplace.
2. Being Acknowledged: Receiving recognition for their hard work is a crucial psychological need that can improve morale and motivation.