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2.1 Identify the type of business strategy that applies to each of the following statements: 2.1.1 Big Four Air will expand with the purchase of Blue Sky Air - NSC Business Studies - Question 2 - 2016 - Paper 1

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2.1-Identify-the-type-of-business-strategy-that-applies-to-each-of-the-following-statements:--2.1.1-Big-Four-Air-will-expand-with-the-purchase-of-Blue-Sky-Air-NSC Business Studies-Question 2-2016-Paper 1.png

2.1 Identify the type of business strategy that applies to each of the following statements: 2.1.1 Big Four Air will expand with the purchase of Blue Sky Air. 2.1.... show full transcript

Worked Solution & Example Answer:2.1 Identify the type of business strategy that applies to each of the following statements: 2.1.1 Big Four Air will expand with the purchase of Blue Sky Air - NSC Business Studies - Question 2 - 2016 - Paper 1

Step 1

2.1.1 Big Four Air will expand with the purchase of Blue Sky Air.

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Answer

This statement describes a Horizontal Integration Strategy, where a company acquires another company in the same industry to expand its market share.

Step 2

2.1.2 Ulundi Wholesaler offers their meat at lower prices per kilogram than Meal Stores.

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Answer

This reflects a Market Penetration Strategy, as it aims to increase market share by offering lower prices to attract customers.

Step 3

2.1.3 Global Platinum has implemented massive job cuts as commodity prices have tumbled.

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This is classified as a Retrenchment Strategy, which is often used to reduce operational costs in response to a decline in profitability.

Step 4

2.1.4 ProCool, a juice manufacturer, has recently acquired two hectares of farm land in Ceres.

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Answer

This action represents a Backward Integration Strategy where ProCool seeks to increase control over its supply chain by acquiring land for sourcing raw materials.

Step 5

2.1.5 Mega Foods has established a new distribution centre in St Gallen, Switzerland.

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This indicates a Market Development Strategy, expanding into a new geographical area to reach more customers.

Step 6

2.3.1 Explain the main purpose of the Employment Equity Act 1998 with the specific reference to Dudu's claim of Madiba Bay Investment (Pty) Ltd non-compliance with the Act.

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Answer

The primary aim of the Employment Equity Act (EEA) is to eliminate unfair discrimination in the workplace and promote equality in employment. In Dudu’s case, she believes that MBI is not complying with the EEA because she is paid less than David for the same work. Dudu's claim suggests that she may be facing pay discrimination, which the EEA seeks to address by ensuring equal pay for equal work and promoting equitable treatment in the workplace.

Step 7

2.3.2 Identify any THREE business actions that can be regarded as discriminatory by the EEA.

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  1. Not employing a young woman because she might have children.
  2. Refusing to hire an individual based on their disability status.
  3. Denying access to training programs or promotion based on gender.

Step 8

2.4 Describe the strategic management process that can be applied by businesses.

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Answer

The strategic management process involves several key steps:

  1. Vision and Mission Statement: Clearly define the organization's purpose and direction.
  2. Environmental Scanning: Assess internal strengths and weaknesses as well as external opportunities and threats (SWOT analysis).
  3. Formulating Strategies: Develop measurable objectives and strategies to achieve the organization’s goals based on the analysis.
  4. Implementing Strategies: Put chosen strategies into action, ensuring resources are effectively allocated.
  5. Monitoring and Evaluation: Regularly review and adapt strategies based on performance outcomes and changing external conditions.

Step 9

2.5 SWOT Analysis for Solatisho Sotshongaye.

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Answer

Strengths:

  • Graduated with a degree in Public Management.
  • Combining management skills with business passion.

Weaknesses:

  • Lack of initial funding for new business venture.
  • Loyalty concerns regarding suppliers.

Opportunities:

  • Potential for construction in the local area.
  • Ability to empower local unemployed youth through job creation.

Threats:

  • High unemployment rate in the area.
  • Competition from established firms in the market.

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