“Offer the best handcrafted custom furniture to all

customers”

Which

ONE of the following benefits is African Custom Furniture Manufacturers (Pty)

Ltd most likely to see from its new mission statement in the short term?

(a) Improved image to customers.

(b) Improved decision-making

strategies.

(c) Improved awareness amongst

stakeholders of African Custom Furniture

(d) Rapid corporate

culture change in African Custom Furniture Manufacturers staff to

The approach used

by the organisation to align the control of the business with the interest of

the owners/investors, as well as the effect on other stakeholders is known as

_____?

(a) 

(b) 

(c)  

(d) 

A brick manufacturing company

is doing research on the possibility of making its production methods more

capital intensive. This will lead to increased production and therefore higher

output, resulting in increased profits. The change from labour intensive to

capital intensive production methods will also lead to having too many workers being

retrenched.

(a)  Suppliers

(b)  Shareholders                                                                               

(c)  Customers

(d)  Employees

The

following statements relate to goals and outcomes of strategic planning.

(a) 

Goal hierarchy deals with the

allocation of resources.

(b)  A principal goal

when drafting a

strategic plan is to develop it in such a way that it can be easily turned into

action plans

(c)  

Goal

congruency

Which combination of the statements below

are all correct.

(1) 

Substitute products refer to

almost similar other products that have the same ability to meet the needs of

customers.

(2) 

Bargaining power of suppliers

refer to the power that the suppliers of products to the company have, to raise

the prices of e.g., raw material.

(3) 

If there is competition for

market share in a specific industry, it is referred to as competitive

structure.

(4) 

If pressure is put on prices

by competitors in the market, it can cause a threat to the profitability of the

company.

(a)  Statements (1), (2) and (3)

(b)  Statements (1), (2) and (4)

(c)   Statements (1), (3) and (4)

(d) 

Statements (1), (2) (3) and

(4)

Select which combination of the statements

below regarding sole proprietorship as legal form of a business, are all

correct.

(1) 

The liability of the business

is unlimited.

(2) 

The business is required to

have their financial statements audited.

(3) 

The continued existence of the

business is restricted to the lifespan of the owner.

(4) 

The owner of the business will

have to pay tax on the taxable profit of the business as well as any other

personal income earned, according to income tax scales for individuals.

(a)  Statements (1), (2) and (3)

(b)  Statements (1), (2) and (4)

(c)   Statements (1), (3) and (4)

(d)  Statements (1), and (3)

Which combination of the following statements indicate elements

that should form part of an organisations’ strategy to facilitate the achievement

of the purpose and realisation of the vision of an organisation?

(1) 

 A broad conceptual knowledge of the operating

environment of the organisation should be displayed in the formulation of the

strategy.

(2) 

 The activities that are chosen should be

aligned and fit one another to lead to success.

(3) 

 The choice of activities should provide a

competitive advantage.

(4) 

 The strategies should be based on the organisation’s

core values.

(5) 

  Decisions should also be made about which

activities not to choose.  

a)   

Statements

(1), (2) and (4)

b)   S

tatements

(1), (3), and (4)

c)   

Statements

(2), (3), (4) and (5)

Which of the following are examples of external

factors in the strengths, weaknesses, opportunities, and threats analysis?

(1) 

Having many depreciating assets

(machines).

(2) 

Experiencing increased

competition that can lead to having unutilised capacity.

(3) 

The occurrence of unrest in

the industry resulting from trade union action.

(4)  Price wars that happen among competitors.

(5) 

The industry experiencing a decline

in profits.

(a)  Statements (1), (2) and (3)

(b) 

Statements (1), (2), (4), and

(5)

(c)   Statements (2), (3) and (4)

(d) 

Statements (2), (3), (4), and

(5)

Profit companies

are companies that are incorporated for the purpose of financial gain for its

shareholders.

(a) 

(b) 

(c)  

(d) 

Which action of pressure and interest groups, that

specifically wish to enforce organisations compliance to the United Nations

Global Compact (UNGC) principles, will result in negative publicity and even

threaten the existence of an organisation?

(a) 

Consumers taking direct

action against the organisation by the customers protesting at different

branches of an organisation against products that were tested on animals.

(b) 

Workers that report cases of

unlawful dismissals or retrenchments to the CCMA for conciliation.

(c)  

(d) 

Political parties lodging a

complaint at the South African Human Rights Commission.