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Read the case study below and answer the questions that follow - NSC Consumer Studies - Question 6 - 2023 - Paper 1
Question 6
Read the case study below and answer the questions that follow. EGGSELENT BUSINESS After seeing how impoverished her community was, Lebuhang started an egg busines... show full transcript
Worked Solution & Example Answer:Read the case study below and answer the questions that follow - NSC Consumer Studies - Question 6 - 2023 - Paper 1
Step 1
Discuss the following factors that Lebuhang considered when she selected Eggselent as her small-scale business: (a) Availability of financial resources
Answer
Lebuhang ensured she had adequate financial resources to start her business. She borrowed R2,000 from a friend and received a grant of R50,000 from the National Youth Development Agency. This funding was essential for purchasing the initial supplies, such as egg trays and chickens, allowing her to establish her business.
Step 2
Discuss the following factors that Lebuhang considered when she selected Eggselent as her small-scale business: (b) Availability of work space
Answer
Lebuhang utilized a small rent-free piece of land, which significantly reduced her overhead costs. This advantageous situation allowed her to allocate more funds towards the operational aspects of her business without worrying about rental expenses.
Step 3
Discuss the following factors that Lebuhang considered when she selected Eggselent as her small-scale business: (c) Availability of raw materials
Answer
To support her egg business, Lebuhang sourced egg-laying chickens from a local farmer. This ensured a steady supply of fresh eggs for her business, thus fulfilling customer demand efficiently while keeping costs manageable.
Step 4
Describe why Lebuhang is considered an environmentally and socially responsible entrepreneur.
Answer
Lebuhang demonstrates social responsibility by donating unsold eggs to early childhood development centers, helping alleviate community food insecurity. Environmentally, she uses biodegradable and recyclable packaging, reducing waste and encouraging her customers to bring their own containers. Additionally, she provides chicken manure as fertilizer to local community gardens, contributing to sustainable agricultural practices.
Step 5
Explain why it is likely that Eggselent will be a sustainable profitable business.
Answer
Eggselent is positioned for sustainability and profitability due to several factors. The demand for her fresh eggs, established customer relationships, and her innovative marketing strategies ensure a steady revenue stream. Additionally, low overhead costs from utilizing rent-free land and her environmentally friendly practices attract a growing customer base that values responsibility. Furthermore, by supporting the community through donations and utilizing local resources, she strengthens her business's reputation, leading to long-term success.