NAME : NTHABISENG

SURNAME : MOLOI
SUPPORT CENTER : KEMPTON PARK
STUDENT NUMBER : 54005220

BUSINESS MANAGEMENT
HBMN2161
SUMMATIVE ASSESSMENT 1
 QUESTION 1

1.1

A strategic management can be described as the identification of the purpose of the

organization and the plans and actions to achieve that purpose. In the business
environment, competition is harsh and has no mercy given- organizations have to plan
for the future and prepare for any unforeseen circumstances the world we live in has
changed so radically that the factors and competencies that made an organization
successful in the past does not guarantee the success of the future.

There are eight challenges that face South African businesses and these include:

Rapidly increasing competition from new and unexpected sources

Changing demographics and psychographics
New technology
The global economy
The proliferation of corporate stakeholders
Managing the new workforce
The rapid rise of the green movement.

With these challenges are a challenge to every executive, they underpin the process
of strategic managing and therefore should be a concern to everyone involved in
shaping and creating tomorrows organization. To cope with the changing
environment and the to be prepared for whatever the future holds, managers actively
participate in strategic management. This make one understand where the business
at the moment, where it wants to be in the future and give a wide-scale debate about
how it will reach its future destination.

1.2

There are advantages of strategic management that will benefit the company.

Higher profitability, this is a benefit that shows better improvement in turnover

and profits of the organization.
Higher productivity, not only these show higher profits , but through better
planning and utilistion of resources and materials, they tend to deliver more and
better outputs, thus improving their productivity.
Improved communication across the different functions in the organization,
strategic management that is communicated effectively will lead to a better
understanding by employees and stakeholders.
 Empowerment, this can be a direct benefit of strategic management when
managed properly. Employees have to direct ownership and control of certain
strategies, get involved through the strategic management process.
More effective time management, all strategic plans must be implemented in due
date.

The importance of strategic management will provide guidance to the entire

organization on critical aspects of what it is we want to do. It makes the managers ,
employees and other stakeholders more alert of the looming opportunities and
threats in the environment.

QUESTION 2

2.1

What do customers expect from us?- Apple making great products and simple
not complex products.
What do our shareholders expect from us? constantly focusing and
innovating.
What do our employees expect from us?- the need to own and control the
primary technologies behind the products that Apple makes and participate in
markets where they can significant contributions.
Where do ant to go in terms of the industry and the economy? only participate
in markets where we can make significant contribution, and believing in
saying no to thousands of projects, so that they can really focus on the few
that are truly important and meaningful to us.

2.2
Strategic vision is the outcome of a continual process of scanning and
analyzing the internal and external environment in order to identify
opportunities and threats. Owning and controlling the primary
technologies behind every product they make.
In formulating the strategic vision, top managers should ideally follow a
participatory process- we have self-honesty to admit when were wrong
and courage to change.
In formulating the vision, top management should take care that the do
not get locked into the current reality. They should therefore divorce
themselves from the current reality,- regardless of who is in what job
those values are so embedded in the company that Apple will do
extremely well.

QUESTION 3
 3.1

a. Strength is a resource or capability that the organization has which

is an advantage relative to competitors.
Weakness refers to the lack of, deficiency in , a resource that
represents a relative disadvantage to an organization in
comparison to competitors.
An opportunity refers to favourable situation in the organizations
external environment.
A threat is an unfavourable situation in the organizations external
environment.

b. Strength internal factor

Weakness-internal factor
Opportunity-external factor
Threats-external factors

c. A SWOT analysis for McDonalds with the context of China

Strengths-most popular fast food service retailer in the world.
Well known for its fast service and for its efforts in recent years to
diversity its menu range.
Reasonable prices that majority can afford

Weakness-faces a problem of how to remain competitive in the

industry and,
how to effectively capitalize on numerous opportunities that present
themselves.

Opportunities- serve large variety of different foods (diversity of the

menu
and to cater for the many different preferences of the Chinese
consumer base.

Threats- competition from other fast food outlets is increasing such

Burger King, Pizza Hut.

QUESTION 4
4.1
Specific- this indicates the fact that goals must be written
down and dated, example We want to sell 20000 units of
flats by the end of June
Measurable- objectives must be stated in such a way that
they indicate what will be achieved and by when, example
 the objective is to make 30 transactions a day to make
revenue.
Attainable- the objectives must be reasonable and possible
to achieve, yet go beyond the levels of performance example
we currently selling 5 houses a day to meet budget but now
the target is 6 houses a day to exceed the budget.
Realistic- employees and managers in the organization must
be able to see the link between the objectives and the long
term goals. Example mission of the organization is to sell
houses and build more houses
Time bound- the objective must describe by when the
objective should be met. Example 3000 houses must be by
each consultant by the end of financial year.

4.2
Products and services- giving quality milkshakes and
providing good and caring customer service.
Customer service and experience- making clients happy and
giving them a fun and unforgettable good experience.
Innovation- creating new flavours for the milkshakes
Profitability- making profit from products to sustain the
business
Productivity- having good employees to work and increasing
technology for faster service
Safety- safety for customers in terms of producing allergy
free products or providing labels on milkshakes. Work
environment should be hazard free
Social responsibility- giving back to to community, feeding
the homeless
Human resources- creating job opportunities and promoting
employees.
Income- providing bonuses or incentives for workers
Market share- becoming the world leading milkshake store