MBA Year 2 July 12 CAAH new FOR PRINT.pdf

PROGRAMME MASTER OF BUSINESS ADMINISTRATION

(MBA YEAR 2)

INTAKE JULY 2012

COURSE AND ASSIGNMENT HANDBOOK

Copyright© 2012 THE MANAGEMENT COLLEGE OF SOUTHERN AFRICA

All rights reserved, no part of this book may be reproduced in any form or by any means, including photocopying machines, without the written permission of the publisher

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TABLE OF CONTENTS

1. WELCOME 1.1 MESSAGE FROM PRINCIPAL AND CHAIRMAN OF THE BOARD OF GOVERNORS 4 1.2 MESSAGE FROM THE ACADEMIC DIRECTOR 5 2. INTRODUCTION TO MANCOSA 2.1 BRIEF HISTORY OF MANCOSA 5 2.2 PROGRAMME OFFERINGS 6 2.3 DIRECTORS 6 3. THE MANCOSA MISSION 7 4. OUR VISION 7 5. MBA PROGRAMME STRUCTURE 5.1 OVERALL PROGRAMME OBJECTIVES 8 5.2 PROGRAMME FOCUS 8 5.3 MODULE DESCRIPTION AND RATIONALE 9 – 11 6. PROGRAMME ADMINISTRATION 6.1 PROGRAMME MANAGEMENT 12 6.2 PROGRAMME REGISTRATION 12 6.3 REGISTRY AND DESPATCH 12 6.4 FINANCE 6.4.1 FEE PAYMENT 13 6.4.2 PAYMENT OF FEES AND OTHER DUES 13 6.4.3 RE-ENROLMENT 13 6.4.4 PAYMENT PLANS 13 6.4.5 ADDITIONAL FEES/CHARGES 13 6.4.6 DEFERRALS 14 6.4.7 MISCELLANEOUS COSTS 14 6.4.8 CANCELLATION OF REGISTRATION/FEE LIABILITY 14 6.4.9 REGISTRATION FOR SPECIFIC/INCOMPLETE MODULES 14 6.4.10 PAYMENTS 14 6.4.11 ACCOUNT DETAILS 15 6.4.12 FOREIGN PAYMENTS 15 6.5 ASSESSMENTS 6.5.1 METHOD OF ASSESSMENT 16 6.5.2 MITIGATING CIRCUMSTANCES 16 – 17 6.5.3 APPEALS 17 – 18 6.5.4 PLAGIARISM 18 6.5.5 RE-REGISTRATION FOR A PROGRAMME/MODULE 18 6.5.6 PROGRESSION 18 6.5.7 AWARD OF QUALIFICATION 18 6.5.8 MARKING CRITERIA 19 6.6 STUDENT SUPPORT 6.6.1 THE MANCOSA STUDENT SUPPORT CENTRE 20 6.6.2 REGIONAL OFFICES/REPRESENTATIVES 20 – 21



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6.7 ACADEMIC SUPPORT 6.7.1 REGIONAL TUTOR SUPPORT (ACADEMIC FACULTY) 21 6.7.2 MODULE CO-ORDINATION AND E-MAIL SUPPORT 22 6.7.3 LIBRARY SERVICES 22 6.7.4 WEBSITE/ONLINE LEARNING CENTRE 23 6.7.5 MODULE GUIDES 23 6.7.6 PRESCRIBED TEXTBOOKS 24 6.8 IT AND WEBSITE 25 6.9 RESEARCH 25 6.10 GENERAL 6.10.1 OWNERSHIP OF WORK PRODUCED BY STUDENTS 25 6.10.2 PUBLICATION OR DISPLAY OF PROJECT REPORTS 25 6.10.3 EQUAL OPPORTUNITIES – STATEMENT OF INTENT 25 6.10.4 FREEDOM OF SPEECH 26 6.10.5 GRADUATION 26 6.10.6 RECOGNITION OF PRIOR LEARNING 26

7. WORKSHOPS 7.1 WORKSHOP VENUES 27 7.2 WORKSHOP DATES 28 7.3 WORKSHOP PROGRAMMES 29 – 33

8. ASSIGNMENTS 8.1 SUBMISSION 8.1.1 MODE OF DELIVERY OF ASSIGNMENTS 34 8.1.2 ASSIGNMENT ADMINISTRATIVE SUPPORT 34 8.1.3 ASSIGNMENT SUBMISSION PROCEDURE 35 8.1.4 GENERAL GUIDELINES TO SUBMISSION OF ASSIGNMENTS 35 8.1.5 POLICY REGARDING GROUP ASSIGNMENTS AND PLAGIARISM 35 8.1.6 ACKNOWLEDGEMENT OF RECEIPT OF ASSIGNMENTS 35 8.1.7 RELEASE OF ASSIGNMENT RESULTS 35 8.1.8 EXTENSION OF SUBMISSION DATES 35 8.1.9 LATE SUBMISSION OF ASSIGNMENTS 36 8.1.10 RE-SUBMISSION OF ASSIGNMENTS 36 8.1.11 RE-MARKING OF ASSIGNMENTS 36 8.1.12 ASSIGNMENT COVERSHEET 36 8.1.13 RETURN OF ASSIGNMENTS TO STUDENTS 36 8.2 ASSIGNMENT SUBMISSION DATES 37 8.3 ASSIGNMENT QUESTIONS - INTERNATIONAL BUSINESS 38 – 46 - ACCOUNTING FOR DECISION-MAKING 47 – 51 - CORPORATE STRATEGY 52 – 55 - MANAGING STRATEGIC CHANGE 56 – 59 - MANAGERIAL FINANCE 60 – 64 - MANAGEMENT SCIENCE (ELECTIVE) 65 – 68 - BUSINESS AND PROFESSIONAL ETHICS (ELECTIVE) 69 – 70 - INVESTMENT AND PORTFOLIO MANAGEMENT (ELECTIVE) 71 – 74 - ENTREPRENEURSHIP (ELECTIVE) 75 – 78 - ENVIRONMENTAL MANAGEMENT (ELECTIVE) 79 – 80 - PROJECT MANAGEMENT (ELECTIVE) 81 – 83 - MANAGING HEALTHCARE (ELECTIVE) 84 – 85



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9. EXAMINATIONS 9.1 EXAMINATION DATES AND TIMES 86 9.2 EXAMINATION VENUES 87 9.3 GENERAL EXAMINATION INFORMATION 9.3.1 ELIGIBILITY TO SIT FOR AN EXAMINATION 88 9.3.2 FAILURE TO WRITE AN EXAMINATION 88 9.3.3 MARKING OF EXAMINATION SCRIPTS 88 9.3.4 RE-MARKING OF EXAMINATION SCRIPTS 88 9.3.5 AEGROTAT EXAMINATIONS 88 9.3.6 SUPPLEMENTARY EXAMINATIONS 89 9.3.7 SPECIAL EXAMINATIONS 89 9.3.8 REQUIREMENTS TO WRITE AN EXAMINATION 89 9.3.9 PERSONALISED EXAM TIMETABLES 89 APPENDICES - APPENDIX A – ASSIGNMENT COVER SHEET (SAMPLE) 90 - APPENDIX B – EXTENSION REQUEST FORM 91 - APPENDIX C – AEGROTAT APPLICATION FORM 92 - APPENDIX D – APPEALS FORM 93 - APPENDIX E – ACKNOWLEDGEMENT RECEIPT FORM 94 - APPENDIX F – CREDIT CARD PAYMENT FORM 95 - APPENDIX G – DEBIT ORDER AUTHORISATION FORM 96



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1. WELCOME

1.1 MESSAGE FROM THE PRINCIPAL AND CHAIRMAN OF THE BOARD OF GOVERNORS PROF YUSUF KARODIA

Choosing a business school is certainly one of the most important decisions, made even more difficult in our changing times where the world has lost its old equilibrium without having found new values. The frontiers of the economy are reforming and in continuous evolution and work opportunities are emerging. In this brave new world tertiary institutions can no longer limit itself to provide text book knowledge and mere academic preparation reducing itself to an 'exam house' attaching titles and empty labels, neither can it continue to ignore the changing needs of a global employment market and the profound changes in the environment awaiting the students beyond the campuses. MANCOSA’s mission is to prepare a new breed of leaders, courageous, sincere individuals with the intellectual abilities, cross cultural versatility, practical skills and ethics needed to operate in today's business world. With programmes designed to accommodate individuals with diverse needs and lifestyles, MANCOSA distance learning programmes are in great demand with the rigour and innovation to create reflective practitioners. Participants are immersed in an active education that will challenge their assumptions, disrupt their ordinary ways of doing business, and introduce them to new and unexpected ways of thinking. By participating, you will be prepared for the next step in your career and life, demonstrating leadership skills among your peers. Most important, you will return to your organisation with fresh ideas, new business skills, and a greater capacity for addressing the challenges your company will face. MANCOSA programmes promote a high level of independence through innovative learning and assessment interventions. You can expect a carefully integrated mix of lectures; access to well designed self study materials and online learning resources. One key feature of MANCOSA is its use of case studies, an active learning model that teaches participants how to assess, analyse, and act upon complex business issues. Rooted in real-life experiences, the business case method develops analytical skills, sound judgment, and the leadership potential within each participant. This will equip you with cutting-edge skills that will position you to be a leader in your organisation and community. For those who are prepared to embrace the challenges of this programme, you will find unique rewards with lasting impact for your organisation and career. We wish you well in your academic endeavours and assure you of our continued support towards realising your goals. I wish you well in your studies.

Prof YM Karodia



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1.2 MESSAGE FROM THE ACADEMIC DIRECTOR DR AI MOOLLA

Welcome to the MANCOSA MBA programme. You are about to embark upon a challenging, new journey, discovering new horizons and breaking new frontiers of knowledge. For the duration of the programme you will be exposed to outstanding teachers who will not only share with you their knowledge of the current management practices necessary for a global, dynamic and turbulent environment, but who will also guide you and mentor you to enable you to develop critical-thinking and life-long learning skills. The programme commences with compulsory modules in stage one and stage two with an elective of choice in stage two; and culminates with the research dissertation where you will experience the merging of theory with practice and develop the ability to generate rational solutions to business problems. You can expect to experience high quality, innovation, cutting-edge knowledge and scientific rigor in terms of research, teaching, learning and assessment. Enjoy your journey on this road that will lead you to a higher level of knowledge, skills and abilities.

2. INTRODUCTION TO MANCOSA

2.1 BRIEF HISTORY OF MANCOSA The Management College of Southern Africa (MANCOSA) is a private Higher Education institute registered in terms of the Higher Education Act (Act 101 of 1997). It was established in 1995 as a post-apartheid empowerment institution offering affordable and accessible management education primarily to persons previously denied access to post graduate education. MANCOSA has 100% Black ownership, i.e. it is owned entirely by previously disadvantaged individuals in the South African context. The Master of Business Administration (MBA) programme has been offered since 1995. Between 1995 and 2000 MANCOSA provided management programmes in association with the Buckinghamshire Chilterns University College (BCUC), a College of the University of Brunel in the United Kingdom. During this period MANCOSA was successfully quality assured by the British Quality Assurance Agency (QAA). In 2002 MANCOSA received full institutional accreditation from the Higher Education Quality Committee (HEQC), the quality assuring committee of the Council on Higher Education (CHE). MANCOSA is one of the leading providers of international and local management programmes through supported distance learning in Southern Africa. Recent developments have included the introduction of tuition classes which cater for those learners that prefer additional support. In delivering its range of Management Education programmes to a diverse body of learners from both the public and private sectors, MANCOSA has developed significant infrastructural, academic and intellectual capacity. As a leading provider of management programmes by supported distance education, MANCOSA has considerable expertise in the design and development of high quality and relevant course materials. It has developed unique teaching and learning strategies, particularly suited for transferring knowledge and skills to adult learners, the majority of whom are in full time employment. Through its active research focus, MANCOSA is also at the cutting edge of the latest management and leadership training trends.



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2.2 PROGRAMME OFFERINGS MANCOSA programmes cover the areas of business administration, commerce, tourism management, functional management and leadership and range from Certificate programmes to Master’s degrees. MANCOSA offers the following accredited and registered programmes: 1. Certificate in Project Management (NQF Level 4) 2. Certificate in Supervisory Management (NQF Level 4) 3. National Certificate in Project Management (NQF Level 5) 4. National Certificate in Supervisory Management (NQF Level 5) 5. National Certificate in Office Administration (NQF Level 5) 6. Higher Certificate in Business Management (NQF Level 5) 7. Higher Certificate in Local Government and Development Management (NQF Level 5) 8. Higher Certificate in Labour Studies (NQF Level 5) 9. Certificate in School Governance (NQF Level 5) 10. Advanced Certificate in Management Studies (CM) (NQF Level 6) 11. Diploma in Advanced Management (AMD) (NQF Level 6) 12. Bachelor of Business Administration (BBA) degree (NQF Level 7) 13. Bachelor of Public Administration (BPA) degree (NQF Level 7) 14. Bachelor of Commerce (BCom): HRM degree (NQF Level 7) 15. Bachelor of Commerce (BCom): Marketing degree (NQF Level 7) 16. Bachelor of Commerce (BCom): Information Management and Technology degree (NQF Level 7) 17. Bachelor of Commerce (BCom): Supply Chain Management degree (NQF Level 7) 18. Bachelor of Commerce (BCom): HRM degree - Honours (NQF Level 8) 19. Bachelor of Commerce (BCom): Marketing degree - Honours (NQF Level 8) 20. Bachelor of Public Administration (BPA) degree - Honours (NQF Level 8) 21. Postgraduate Diploma in Educational Management (NQF Level 8) 22. Postgraduate Diploma in Business Management (DBM) (NQF Level 8) 23. Postgraduate Diploma in Project Management (NQF Level 8) 24. Master of Business Administration (MBA): General degree (NQF Level 9) 25. MBA: Tourism Development and Management degree (NQF Level 9)

2.3 DIRECTORS

DESIGNATION NAME Principal Prof YM Karodia Managing Director Prof H Rasool Director: Quality Assurance Prof A Hansraj Director: Finance Mr MY Karodia Director: Academic Prof AI Moolla Director: Marketing Mrs F Ussuph



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3. THE MANCOSA MISSION

The Management College of Southern Africa seeks to contribute to the changing management education demands of Southern Africa through learning programmes responsive to the needs of students, the community

and the region as a whole.

In pursuit of this mission, MANCOSA is committed to:

Directing all its resources to the pursuit of quality, equity and excellence in empowering people by providing opportunities to advance their careers;

Catering for the education and training needs of all sectors of our society by providing affordable, accessible and accredited programmes;

Providing quality management education and training programmes to develop the entrepreneurial spirit in the Southern African region;

Serving the Southern African economic region through academic and training programmes responsive to the unique needs of its people and their goals;

Developing national and international collaborative relationships in order to enhance the quality and range of its education and training programmes;

Benchmarking its programmes against best national and international practice;

Maintaining a quality of service that maximises the realisation of student potential, both in the private and public sectors, by responding to the changing needs of the labour market;

Contributing to the transformation process of higher education in Southern Africa;

Promoting opportunity, equality and social justice irrespective of race, colour, creed and gender.

4. OUR VISION MANCOSA's vision is to be recognised as a leading, world-class higher education institution that is committed to quality, equity and excellence in the development and delivery of its programmes. MANCOSA's vision includes expanding its programmes into the SADC countries, thus providing much needed higher education to develop an entrepreneurial spirit that ultimately facilitates social and economic development in the regions. MANCOSA is also committed to contributing towards:

Facilitating access to, and mobility and progression within education, training and career paths;

Enhancing the quality of education and training provision;

Accelerating the redress of past unfair discrimination in education, training and employment opportunities;

Contributing to the full personal development of each learner and the social and economic development of the nation at large.

TP 1A



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5. MBA PROGRAMME STRUCTURE

5.1 OVERALL PROGRAMME OBJECTIVES The MBA programme focuses on the following key learning objectives:

The successful application of advanced management principles and theories in a variety of organizational settings.

The development of a multi-disciplinary and global view of business problems and situations.

An understanding of the challenges and opportunities that are created by the cultural and ethnic diversity in Southern Africa.

The creation of a strategic perspective with respect to organizational decision-making.

An understanding of the ethical and societal implications of organizational decision-making.

The application of technology to business functions and an integrated e-business economy.

The effective analysis of the financial implications of business decisions.

The use of quantitative tools to analyze complex business problems in order to generate decision-making strategies.

The generation of potential strategic solutions to business problems, through the application of appropriate research methodologies and the scientific collection and analysis of literature and data.

The application of new knowledge to research and career opportunities.

5.2 PROGRAMME FOCUS

From the very outset, the MANCOSA MBA Programme strives to maximise personal development, grow management and leadership skills and contribute to positive economic change in the countries from which students are drawn. The main focus of the programme is to ensure that students develop the ability to apply management theory in practice. The MANCOSA MBA programme comprises of 12 modules together with a dissertation component and is spread over 30 months. On completion of all 12 coursework modules students are required to register for the dissertation component. The student has 6 months in which to complete the research methods component and the dissertation. STAGE 1 STAGE 2 STAGE 3 Compulsory Compulsory Compulsory Human Resource Management International Business Dissertation Management Information Systems Corporate Strategy Marketing Management Accounting for Decision- Making Operations Management Managing Strategic Change Quantitative Methods Managerial Finance Economics Choose One (1) elective from: Entrepreneurship Management Science Business and Professional Ethics Investment and Portfolio Management Environmental Management

Project Management Managing Health Care



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5.3 MODULE DESCRIPTION AND RATIONALE

STAGE 1

(i) Human Resource Management

The module is concerned with effective management and utilisation of human resource management. It deals with HRM from both a strategic and operational point of view. From a strategic perspective, it draws the link between the importance of allying HRM policies and practices to support and reinforce more general business strategies and objectives. At operational level, HRM is concerned with the design and implementation of procedures to optimise the day-to-day management of people in the organisation. The central focus is on improving the student’s knowledge of critical areas of HRM so that they can develop and implement effective policies for management of people.

(ii) Management Information Systems

Globalization of trade, the emergence of information economics, and the growth of the Internet and other global communications networks have recast the role of information systems in business and management. This module is based on the premise that it is difficult, if not impossible to manage a modern organisation without at least some knowledge of information systems – what they are, how they affect the organization and it’s employees, and how they can make businesses more competitive and efficient. Information systems have become essential for creating competitive firms, managing global corporations, and providing useful products and services to customers.

(iii) Marketing Management

The focus of the module is the management marketing process. It is structured around the steps in the analytical and decision-making process involved in formulating, implementing, and controlling a strategic marketing programme for a given product-market entry. This involves researching the relevant market place to understand its dynamics and to identify opportunities to meet latent needs. It also involves segmenting the market and selecting those segments that a company can satisfy in its own superior way. Students are expected to formulate a broad strategy and refine it into a detailed action plan.

(iv) Operations Management

Operations management is a function in most organisations and the course is thus designed to impart a holistic knowledge of the functioning of operations management through the study of relevant literature and its practical application. Students will study methods to improve the productivity levels of an organisation in order to compete more successfully in both the domestic and global markets. As the operations management environment is dynamic, the course is designed to instill in the participants an ability to accept and react to continuous change.

(v) Quantitative Methods

The intention is to equip learners with elementary and basic quantitative methods to examine, analyse, interpret and use statistical data within the commercial environment for better management, monitoring and planning. Again it centres around the effective use of quantitative methods to improve efficiency within a business organisation.



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(vi) Economics

This section of the module covers essential economics for business management, decision-making and planning. It includes basic economic concepts and principles underlying business practices and offers an introduction to both microeconomics and macroeconomics. The emphasis is on the application of economic tools in a meaningful way to equip managers with the necessary theory and analytical skills to formulate effective business strategies and enhance decision-making.

STAGE 2

(i) International Business

This module explains how and why the world’s countries differ by presenting a thorough review of the economics and politics of international trade and investment. The functions and form of the global monetary system is examined along with the strategies and structures of international business.

(ii) Accounting for Decision-Making

This module explains and develops the role and nature of accounting. It begins by explaining the distinction between management and financial accounting and continues to identify the main users of accounting information and discusses their needs. The key objective of this module is to explain how management accounting can fulfil the needs of managers especially in decision making.

(iii) Corporate Strategy

This module explains the concepts of strategy in an organisational context and how to apply these concepts within the business sector. Corporate policy and governance issues, and the structures to implement strategy are discussed in greater depth.

(iv) Managing Strategic Change

The module enhances student understanding of the reasons for organisational change and the human resource issues associated with it. The operational issues:

Allow students to recognise the pressures for change being experienced by logistics supply change providers

Synthesise a range of new and developing logistics techniques

Evaluate supply chain situations where these new techniques would be appropriate.

(v) Managerial Finance

The financial management module explores the financial well being of the firm and its shareholders by investigating the management of long-term and working capital, the financial measurement and choice of projects to invest in, and the overall financial strategy of a business. This module also introduces participants to the financial environment in which business activity takes place.

(vi) Management Science (Elective)

This module gives students an awareness of the scope and application of management science methods, particularly in problem solving. It enables students to tackle management problems using appropriate soft and hard methodologies.



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(vi) Business and Professional Ethics (Elective)

The module allows for a more holistic understanding of the nature of business activity. Students are made aware of the benefits and limitations of bringing ethical theory into the managerial decision making process. This elective gives students a basic grounding in ethical theory, as well as understanding how ethics can be applied to various business-related topics.

(vi) Investment and Portfolio Management (Elective)

This module explores the risk-return trade-off and the principles of rational portfolio choice associated with it. It also deals with the allocation of investment funds and the strategies of passive and active management of funds. Furthermore, it develops a sound understanding of the theoretical and practical applications of the equilibrium pricing relationships in order to profit from the pricing inefficiencies that may exist.

(vi) Entrepreneurship (Elective)

The twenty-first century has dawned with entrepreneurship as a major force shaping the global economy. The future growth of this economy lies in the hands of men and women committed to achieving success through innovative customer-focused new products and services. At the heart of this global movement are entrepreneurs who demonstrate their willingness to assume the risks associated with creating new business ventures. This module focuses on the next generation of entrepreneurs. It contains tools that students need to master the most essential and critical issues involved in starting and managing a successful new business venture.

(vi) Environmental Management (Elective)

The module is concerned with identifying, assessing and managing the impact that human activities and business activities have on the environment. It explores how environmental problems arise and details the diverse tools that are used to assess the scale of those problems. It also explores control measures and actions that can be applied in particular situations. The subject matter is topical, absorbing and wide-ranging, and will appeal to individuals interested in the environment and seeking a varied subject mix

(vi) Project Management (Elective)

This module examines the organization, planning, and controlling of projects and provides practical knowledge on managing project scope, schedule and resources. Topics include project life cycle, work breakdown structure and Gantt charts, network diagrams, scheduling techniques, and resource allocation decisions.

(vi) Managing Health Care (Elective)

The South African and international milieu of the healthcare arena is constantly changing and evolving. As a consequence, managers of healthcare institutions often find themselves having to deal with complex environments, which require management and leadership proficiency. This module explores the realm of healthcare management, the common experiences and challenges within the healthcare sector and the application of modern management and organisational techniques in the healthcare sector.

STAGE 3

(i) Dissertation

The dissertation stage represents an opportunity to juxtapose theory against the reality of the business world, by the application of appropriate research methodologies and the scientific collection and analysis of literature and data in order to generate potential strategic solutions to business problems



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6. PROGRAMME ADMINISTRATION

6.1 PROGRAMME MANAGEMENT The MANCOSA Management team will undertake the responsibility of administering the course from the point of recruitment to the point of graduation. All queries associated with course management and implementation should be directed to the Student Support Division ([email protected]) or the respective Departmental Heads.

6.2 PROGRAMME REGISTRATION MANCOSA has two intakes per year. Every student must complete an Enrolment Contract as well as a MANCOSA application form at the start of each academic year, in order that he/she may become an officially enrolled student. Upon successful completion of a year of study, students are required to register for the following year of study. All queries regarding registration must be forwarded to: Head: Student Recruitment - [email protected] Students who have outstanding modules will need to re-register for these modules. Queries in this regard must be forwarded to: Co-ordinator: Re-registration and Deferrals - [email protected]

6.3 REGISTRY AND DISPATCH The registry department captures all student information on the MANCOSA student database. In the event of changes to these details, as well as the issuing of student cards, queries must be forwarded to: Head: Registry and Dispatch - [email protected] All course material is dispatched to students on completion of the required forms and payment of the required fee. Any queries regarding receipt of course material should be forwarded to: The Dispatch Officer - [email protected]

mailto:[email protected]







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6.4 FINANCE

All queries relating to student accounts should be forwarded to: Head: Finance - [email protected] 6.4.1 Fee Payment

Where a student has sponsorship in respect of financial support from an employer or any other sponsoring body in respect of fees, the student must supply proof of sponsorship at enrolment.

The student, however, is ultimately responsible for all and any payment owing to MANCOSA in the case of default by the sponsor.

Students can pay fees in the following ways: - Cash at MANCOSA offices in Durban and Johannesburg - By Credit Card Payment (Appendix F must be completed and sent to the finance department in Durban).

Please contact the MANCOSA: Finance department for further information in this regard. - Pay on website with Credit Card - Debit Order (Appendix G must be completed and sent to the finance department in Durban)

Please contact the MANCOSA office if you require information on alternative payment methods. 6.4.2 Payment of Fees and Other Dues All fees and other payments owing to MANCOSA for tuition and/or services provided must be paid by the due dates as stipulated in the fee schedule. Penalties will be imposed on all overdue accounts at the discretion of MANCOSA. In addition, if students have outstanding financial obligations, MANCOSA may:

withhold the results of assignments and examinations,

withhold the release of certificates, 6.4.3 Re - enrolment

No student may re-enrol for another year or enrol for a different course whilst in debt to MANCOSA. 6.4.4 Payment Plans

The payment of fees by instalment is available as long as the terms of such an arrangement are strictly adhered to.

Students who fail to pay by the due date will automatically move to the next payment plan or have their accounts adjusted accordingly, thereby increasing their debt to MANCOSA.

6.4.5 Additional Fees/Charges

The following additional fees are levied: Graduation Fees : R 300.00 Assignment re-mark fee : R 200.00 per re-mark Assignment re-submission fee : R 200.00 per re-submission Exam script re-mark fee : R 250.00 per re-mark Supplementary Examination : R 250.00 per module Aegrotat Examination : R 250.00 per module Graduating in absentia : R 200.00 Transcript/ Certificate copies : R 100.00 per copy

A charge of R50.00 will be levied to cover administrative and bank charges in respect of: returned cheques and/or unpaid debit orders




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6.4.6 Deferrals A deferral allows a student to postpone his/her academic studies as a result of unavoidable circumstances. The following rules apply to deferrals: (a) A student is allowed to defer only once during the course of his/her studies. (b) An application for deferral must reach MANCOSA before the due date of the second assignment of that

particular semester. (c) Deferrals will only be granted on application on the prescribed form, which is available from the MANCOSA

re-registration department. (d) A deferral will only be processed on receipt of the applicable fee. (e) The student must continue with the current fee payment plan as per the original registration. To process an application for deferral, please contact: The Co-ordinator: Re-registration and Deferrals: [email protected] The deferral fee is as follows: Deferral Fee (Including application fee): R 2000.00 6.4.7 Miscellaneous Costs

Students requesting additional material not included in the course fee will be charged accordingly.

These miscellaneous costs include photocopying, postage etc. 6.4.8 Cancellation of Registration/Fee Liability

A student who intends cancelling his/her registration must: (a) Notify MANCOSA in writing, and (b) Complete a de-registration form (available from the MANCOSA office).

The student will: be liable for a non-refundable registration fee of R 2000.00 if the cancellation occurs within 14 days of

initial registration, or be liable for the payment of full fees if cancellation of registration occurs beyond 14 days of initial

registration.

Refunds will not be granted for deferred de-registrations/cancellations.

To process an application for de-registration, please contact: The Co-ordinator: Re-registration and Deferrals: [email protected]

6.4.9 Registration for Specific/Incomplete Modules

Students who re-register for outstanding modules will be liable for the following: 1. A re-registration fee (Administration fee), and 2. The fee for the module

Applications for re-registration for incomplete modules must be forwarded to: The Co-ordinator: Re-registration and Deferrals: [email protected]

6.4.10 Payments

The following information must accompany all payments made to MANCOSA. full name, student number and current course

Proof of payment/transfer must be faxed to: MANCOSA: Finance +27 31 3007298

If all details are not accurately provided to MANCOSA, your account may not be credited.






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6.4.11 Account Details All payments should be made into ANY ONE of the following accounts:

Bank Account Holder Branch Account Number Branch Code

ABSA Bank MANCOSA (Pty) Ltd ABSA Corporate & Business Banking KZN 40-6845-6934 634926

OR

Bank Account Holder Branch Account Number Branch Code

Standard Bank MANCOSA (Pty Ltd) Overport City, Durban 05 261 572 3 043826

6.4.12 Foreign Payments

It is important to note that foreign payments take at least 3 days to reflect in the MANCOSA accounts. The onus therefore lies with the student to ensure timeous payment of fees to avoid unnecessary problems.

The SWIFT CODE for International payments are as follows: - ABSA Bank: ABSAZAJJ - STANDARD Bank: SBZAJJ



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6.5 ASSESSMENTS Assignments All queries relating to the submission of assignments and the assessment thereof must be directed to the consultant responsible for your region. The contact details for each region can be found on page 34. Examinations All queries relating to examinations must be directed to: Head: Examinations E-Mail: [email protected] 6.5.1 Method of Assessment

The assessment of this programme is by: (1) Assignments and (2) examinations.

The contribution to the final mark is as follows: (1) Assignment - 50% and (2) Examination - 50%

To pass a module a final combined mark of 50% is required.

Entrance to the examination is dependent on the successful completion of assignments for each semester.

A sub - minimum of 40% is required in each form of assessment. 6.5.2 Mitigating Circumstances 6.5.2.1 General

These are defined as unforeseeable or unavoidable serious disruptions of studies caused by circumstances beyond the students’ control.

Students who wish to inform MANCOSA of mitigating circumstances must: - Submit this in writing at least 5 days after the scheduled examination and/or assignment submission

date. - Provide a full and complete account of dates on which the mitigating circumstances apply specifying

assignments and/or examinations affected. - Ensure that application is accompanied by independent supporting evidence, e.g. medical certificates, etc.

Medical certificates dated 1 week before or after the scheduled assignment date will not be accepted.

Students may be asked to submit evidence of work already completed together with their appeals.

Mitigating circumstances must be submitted on the correct form available from MANCOSA offices. 6.5.2.2 Complaints Procedure A complaint is considered to be an expression of a legitimate concern regarding some aspect of MANCOSA’s provision and/or operation which needs a response. (a) Principles:

Every attempt will be made to deal with student complaints as effectively as possible.

Complaints will be treated in confidence and no victimisation or discrimination of any kind will apply to the complainant.

Anonymous complaints against a person or persons will NOT be considered.




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(b) Procedure

Formal complaints must be made in writing and addressed to: - The Registrar: Academic, for assignments - The Head: Assessments, for examinations

The complaint will be logged.

The complaint will then be investigated and a final response will be provided to the complainant within 30 days.

A proposal, remedy or redress will be included in the response.

Where the complainant is not satisfied with either the investigation or the outcome, a further written complaint may be made to the Registrar: Academic.

The Registrar: Academic will respond within 30 days following further investigation. 6.5.3 Appeals (Refer to Appendix D for the Appeal Form) Notes to Appeal Form: (a) Grounds for Appeal

That there exist circumstances materially affecting the student's performance which were not known to the Board of Examiners when its decision was taken and which was not reasonably practicable for the student to make known to the Board beforehand.

That there were procedural irregularities in the conduct of the examination and/or coursework assessment as to create a reasonable possibility that the result might have been different had they not occurred;

That there is evidence of prejudice, bias or inadequate assessment on the part of one or more examiners or assessors. Note: No appeal will be considered which challenges academic judgement.

(b) Time Limit

The time limit within which you may appeal is 21 days from notification of the result. The time limit applies to notification received by the Registrar: Academic. Discussions within the Faculty do NOT count as notification of appeal. This form should be submitted to the Registrar: Academic without delay.

It is your responsibility to ensure that MANCOSA has your correct contact details. It is your responsibility to check the mail at this address, or to contact the post office regarding any recorded delivery notification.

(c) Additional Documents

Any additional document should be the original, typed or word-processed, or hand-written legibly. Faxes and photocopies are not acceptable.

(d) Reasons for Appeal

You are advised to ensure that your reasons for appeal are as factual and specific as possible and fall within one or more of the categories in Note (a) above.

(e) Evidence

Your reasons for appeal must be supported by evidence. You must not make unsupported claims or make unsupported allegations against an individual or a group of staff.

False information and defamatory allegations will be dealt with under the Code of Conduct. (f) Advice

Advice is available from: - Registrar: Academic - Registrar: Administration, or student counselors



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(g) Contact Details (i) Examinations (All students) - [email protected] , and (ii) Academic /Assignment Administration – Refer to e-mail contacts on page 34. 6.5.4 Plagiarism

Students are assessed on the basis that work presented is their own as per the declaration on the assignment cover sheet.

Cheating, plagiarism and fabrication of information are offences.

Assignments, research proposals and dissertations will be scanned by TURNITIN plagiarism software to ensure that information used in work submitted is not plagiarised.

The MANCOSA examination board will investigate allegations of such offences.

If the allegation is proved correct, the outcome of the investigation could be one of the following: The student receives a warning and is allowed to proceed with the programme. Such assessments will

be capped. The student fails the entire year or semester. The student is suspended or expelled from the programme.

6.5.5 Re-Registration for a Programme/Module

Students failing a module at the first attempt or after writing the supplementary/aegrotat examination are required to re-register for the module.

Only two further registrations for a module are permitted.

Students who do not pass at the third attempt must submit a written motivation to continue with the programme.

6.5.6 Progression Upon successful completion of all modules in Year 1 and Year 2 of the programme, a student is eligible to proceed to dissertation stage of the programme. The student is required to register at each stage of the programme. 6.5.7 Award of Qualification The student has 5 years from time of first registration to graduation in which to complete the MBA programme. Failure to do so in the stipulated time period will result in: (a) Credit being issued for modules completed, and/or (b) Issuing of the qualification, Postgraduate Diploma in Business Management (DBM) where students meet

the criteria for such an award. Note: MANCOSA will not award a qualification certificate on the successful completion of the Year 1 of the MBA programme.




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6.5.8 Marking Criteria All assignments are marked according to the following criteria.

A

Excellent

75%+

Excellent work which demonstrates an authoritative grasp of the concepts, methodology and content appropriate to the subject discipline. Indication of originality in the application of ideas, in synthesis of material or in performance; personal insights reflecting depth and confidence of understanding and real critical analysis. Work is well structured and presented with full referencing.

B

Very Good 70 – 74%

Very good work which demonstrates a sound level of understanding based on a competent grasp of relevant concepts, methodology and content; displays skill in interpreting and analysing complex material; material well organised.

C

Good

60 – 69%

Good work that demonstrates a good level of understanding based on a grasp of relevant concepts, methodology and content; display some skill in analysing complex material; material well organized

D

Acceptable 50 – 59%

Work that demonstrates a coherent response to the requirements of the assessment task; clear expression of ideas; uses relevant source material; demonstrates some understanding of the concepts; draws relevant conclusions; appropriate organisation of response

E

Unacceptable

40 – 49%

Recognisable if limited awareness of requirements of assessment task; evidence of some understanding; some attempt to draw relevant conclusions.

F

Fail

33 – 39%

Marginal grade. Unsatisfactory but showing some evidence of understanding.

G

Fail

0 – 33 %

Little evidence of understanding or application.



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6.6 STUDENT SUPPORT 6.6.1 The MANCOSA Student Support Centre The MANCOSA Student Support Centre is the first point of contact for all administrative student queries. All queries in this regard must be forwarded to a Support Centre consultant on: E-mail: [email protected] Tel: +27 31 3007200 6.6.2 Regional Offices Representatives MANCOSA has offices/representatives situated in various regions. The details of these offices/representatives are given below:

CITY/COUNTRY

MANCOSA REPRESENTATIVE

CONTACT DETAILS

South Africa (Durban)

MANCOSA Staff

MANCOSA Campus 26 Samora Machel Street, Durban, 4000 Tel: +27 31 3007200 Fax: +27 31 3007299 E-mail: [email protected]

South Africa (Johannesburg)

MANCOSA Staff

MANCOSA Office, Ground Floor Sunnyside Centre 13 Frost Avenue, Sunnyside, Auckland Park Johannesburg, 2092 Tel: +27 11 8533000 Fax: +27 11 4829072 E-mail: [email protected]

South Africa (Polokwane)

Ms H Thoka

MANCOSA Office, Edupark Edupark Avenue, Off Dorp Street, Polokwane Tel: +27 15 2902896 or +27 15 2902899 Fax: +27 15 2902841 E-mail: [email protected]

South Africa (Cape Town)

Ms S Ebrahim

MANCOSA Office Ebden House 3rd Floor, Belmont Park, Belmont Road Rondebosch, 7700, Cape Town Tel: +27 21 6859072 Fax: +27 21 6859067 E-mail: [email protected]

Namibia (Windhoek)

Mr G Hoabeb

MANCOSA Namibia, Bachran Property Investments (BPI House) 269 Independence Avenue, Mezzanine Floor, Office 27, Windhoek Tel: 00264 61 301354 Fax: 00264 61 301353 Fax-to-email: 088629830 Cell: 00264 81 2332469 E-Mail: [email protected]




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Zambia (Lusaka)

Ms C Chilangwa

House No. 16 Enock Kavu Road, Off Addis Ababa Rhodespark, Lusaka, Zambia Tel: To be confirmed (Check MANCOSA Website) Cell: 00260 979044454 Fax: To be confirmed (Check MANCOSA Website) E-mail: [email protected]

Botswana (Gaborone)

MANCOSA Staff

MANCOSA Campus Plot 50759, Block 9, Gaborone, Botswana Tel: 00267 3914587 Cell: 00267 3914562 E-mail: [email protected]

Mozambique (Maputo)

Ms F Gani

Cell: 00258 84 635 0003 E-mail: [email protected]

Zimbabwe (Harare)

Ms B Mgandani

Cell: 00263 733411679 Cell: 00263 714169874 E-mail: [email protected]

Malawi (Lilongwe)

Dr Wellington Nakanga

Tel: 00265 1876795 Cell: 00265 999565037 E-mail: [email protected]

Kenya (Nairobi)

Prof. Charles Mayaka

Tel: 00254 20 3606214 Cell: 00254 722 679469 E-mail: [email protected]

Swaziland (Mbabane)

Ms Lindiwe Khumalo

Cell: 00268 76021347 E-mail: [email protected]

Mauritius (Bel Village)

Mrs T. Burkutally

YK Business School, Belle Terre Road, Highlands, Morc VRS, MAURITIUS, BRN: C06041230 Tel: 00230 698 9000, Fax: 00230 698 9010 Email: [email protected]

Russia

Ms O Savostina

Tel: 07 383 201 6364 E-mail: [email protected]

6.7 ACADEMIC SUPPORT

6.7.1 Regional Tutor Support (Academic Faculty) Each region has highly qualified academic faculty appointed to ensure the highest standard of academic delivery to students. Their duties include:

Delivery of the scheduled lectures

Telephonic support

E-mail support You are required to contact the relevant tutors at times as prescribed at their lecture. The details for these tutors may be obtained at the scheduled workshops. Note: Tutors may be changed at short notice due to unforeseen circumstances.





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6.7.2 Module Co-ordination and E-Mail Support A Subject Coordinator is appointed for each module. This Subject Coordinator is a full-time MANCOSA lecturer who is available during office hours to provide academic support to students. These faculty members also provide e-mail support via the dedicated e-mail address provided for each module. Note: E-mail is the preferred method of communication with academic faculty. The academic support e-mail address for each module is as follows:

I N T E R N A T I O N A L B U S I N E S S

[email protected]

A C C O U N T I N G F O R D E C I S I O N - M A K I N G

[email protected]

C O R P O R A T E S T R A T E G Y

[email protected]

M A N A G I N G S T R A T E G I C C H A N G E

[email protected]

M A N A G E R I A L F I N A N C E

[email protected]

E N T R E P R E N E U R S H I P ( E L E C T I V E )

[email protected]

B U S I N E S S A N D P R O F E S S I O N A L E T H I C S ( E L E C T I V E )

[email protected]

M A N A G E M E N T S C I E N C E ( E L E C T I V E )

[email protected]

I N V E S T M E N T A N D P O R T F O L I O M A N A G E M E N T ( E L E C T I V E )

[email protected]

P R O J E C T M A N A G E M E N T ( E L E C T I V E )

[email protected]

E N V I R O N M E N T A L M A N A G E M E N T ( E L E C T I V E )

[email protected]

H E A L T H C A R E M A N A G E M E N T ( E L E C T I V E )

[email protected]

6.7.3 Library Services Please refer to the library guide for a comprehensive list of library facilities and resources available in all regions.















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6.7.4 Website/ Online Learning Centre MANCOSA’s website (http://www.mancosa.co.za) offers the following services to students:

Information on news and events

Photo gallery

Programme and Module descriptions

Enrolment documentation

Online request for information and registration

On-line payment options

Contact details (Local and International)

Frequently Asked Questions (FAQ’s)

Link to student portal (http://www.mymancosa.com/)

Social Feeds (Twitter and Facebook)

Alumni portal Online Learning Centre (Multimedia Support) Students can access interactive learning material through the My-Mancosa website at http://www.mymancosa.com. The website amongst other features contains the following:

Important news and announcements

Course and module information

On-line journal database access eg. Emerald On-line, EBSCO, Google Scholar, Informing Science, Directory of Open Access Journal (DOAJ), etc

Course and Assignment Handbooks

Power point presentations

Past year papers

Workshop notes

Exam guidelines

Research and dissertation writing guidelines

Exam results and assignment mark details

Student details

Exam schedule, assignment due dates and personalised time tables

Buy/sell second hand textbooks 6.7.5 Module Guides On registration, all MANCOSA students are issued with a comprehensive set of module guides, which outline the syllabus and details of content to be covered in each module for the academic year. Please complete the acknowledgement of receipt form attached as APPENDIX E.

However, it must be noted that all study material provided must be read in conjunction with the textbooks that are prescribed for each of the modules.

http://www.mancosa.co.za/

http://www.mymancosa.com/

http://www.mymancosa.com/



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6.7.6 Prescribed textbooks All prescribed texts may be purchased from Shesha Books or an accredited bookseller. You can contact Shesha Books on +27 31 3322702 or e-mail [email protected] for further details. A list of the prescribed texts for each module is found below:

MODULE PRESCRIBED BOOK & AUTHOR/S ED PUBLISHER

International Business

International Business Hill

8th

McGraw Hill

Accounting for

Decision Making

Accounting: What the numbers mean

Marshall, McManus and Viele

9th

McGraw-Hill

Irwin

Corporate Strategy

Crafting and Executing Strategy,

Concepts and Cases Hough, Thompson, Strickland and Gamble

2nd RSA

McGraw Hill

Managing Strategic

Change

An Experiential Approach to Organisational

Development Harvey and Brown

8th

Pearson

Prentice-Hall

Managerial Finance

Fundamentals of Corporate Finance Ross, Westerfield, Jordan and Firer

4th

RSA

McGraw-Hill

Business and

Professional Ethics

Ethics and the Conduct of Business

Boatright

6th

Prentice-Hall

Management Science

Quantitative Analysis for Management

Render and Stair

10th

Pearson

Prentice-Hall

Investment and Portfolio Management

Essentials of Investment. Bodie, Kane and Marcus

Profile’s Stock Exchange Handbook

8th

Latest

McGraw Hill

Profile Media

Entrepreneurship

Entrepreneurship: Theory in Practice Venter and Rwigema

2nd

Oxford University Press:

Southern Africa

Project Management

Effective Project Management Clements and Jack

5th

Cengage Learning

Environmental Management

Environmental Management for Sustainable

Development Barrow, C.J

2nd

Routledge

Managing Healthcare

Introduction to Health Services Management

Booysens

Leadership in Health Service Management Jooste

3rd

2nd

Juta

Juta

Note: The above prescribed readings have been provided at the time of publication of this handbook. Should an updated edition be available, students can use either version.




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6.8 IT AND WEBSITE In the event of the student experiencing difficulty accessing any of the MANCOSA electronic facilities, queries must be directed to: The Head: IT - [email protected]

6.9 RESEARCH It is important to note that on completion of all coursework modules, it is compulsory for students to register for the dissertation component. The registration process will be facilitated through the MANCOSA Recruitment Division. All queries regarding registration for the dissertation must be forwarded to: The Head: Student Recruitment - [email protected] The research directorate will undertake the administration of the dissertation process. All queries regarding the administration of the dissertation process must be forwarded to: The Research Co-ordinator - [email protected]

6.10 GENERAL 6.10.1 Ownership of Work Produced by Students

When a course at MANCOSA for which a student is registered leads directly to the origination of any copyright to which the student has made contribution, ownership of all such intellectual property will normally reside with MANCOSA.

MANCOSA may require students to sign a formal acknowledgement.

All copyright of research and dissertations done by students becomes the intellectual capital of MANCOSA. 6.10.2 Publication or Display of Project Reports

MANCOSA reserves the right to publish reports of projects arising from course work carried out by students and will normally wish to do so. e.g. by placing copies in the MANCOSA Library.

6.10.3 Equal Opportunities - Statement of Intent

MANCOSA provides education and training to a range of students reflecting diversity of cultures languages and faiths.

MANCOSA recognises that in society, groups and individuals suffer disadvantages through direct and indirect discrimination.

MANCOSA is opposed to any form of discrimination and believe its elimination will enhance and enrich the cultural, educational and working experience of all concerned.

MANCOSA is committed through our management, teaching, support staff and students to the equal treatment of the people within our institution.

The Board of Governors has responsibility for MANCOSA’s equal Opportunities Strategy. The Management and staff have the responsibility for its implementation.






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6.10.4 Freedom of Speech Freedom of speech is basic to the healthy life of an institution.

The governing body of MANCOSA therefore requires all staff employed by MANCOSA and all students of MANCOSA to tolerate and protect the expression of opinions within the law whether or not these opinions are repugnant to them.

Accordingly, the governing body has approved and adopted a Code of Practice. 6.10.5 Graduation

On successful completion of all coursework required and on the settlement of all outstanding fees, the student is eligible to attend a graduation ceremony where the award will be conferred upon the student.

All students graduating are liable for a fee of R 300.00. This amount does not include the cost of the academic attire.

A separate charge will be levied per guest.

Students graduating in absentia will be liable for a fee of R 200.00. This includes the cost of postage/courier to the student.

6.10.6 Recognition of Prior Learning

Applications for exemption/s from a module or part of a course on the basis of Recognition of Prior Learning are accepted.

This application is evaluated by the Students Admission Committee to determine the applicants’ eligibility.

The application form is available on request from a student counsellor.



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7. WORKSHOPS

7.1 WORKSHOP VENUES

CITY COUNTRY VENUE

Johannesburg

South Africa

College of Education at Wits (formerly JCE) 27 St Andrews Road, Parktown, Johannesburg

Durban

South Africa

MANCOSA Lecture Hall 26 Samora Machel Street, Durban

Pretoria

South Africa

UNISA (Muckleneuk Campus) Theo Van Wyk Building, Preller Street, Pretoria

East London

South Africa

Buffalo City FET College Lukin Road, Selborne, East London

Cape Town

South Africa

MANCOSA Office Ebden House 3rd Floor, Belmont Park, Belmont Road, Rondebosch

Polokwane

South Africa

Edupark Edupark Avenue, Off Dorp Street, Polokwane

Bloemfontein

South Africa

Bloem Spa Lodge and Conference Centre Rayton Road, Lilyvale, Rayton, Bloemfontein

Nelspruit

South Africa

Tshwane University of Technology Techno Street (Off Madiba Drive) – On Road to Barberton

Windhoek

Namibia

Gamams Training Centre (Transnamib) Hosea Kutako Drive, Pionierspark, Windhoek

Lusaka

Zambia

ZAMCOM Plot 3529 Government Road, Near Ministry of Finance, Lusaka

Gaborone

Botswana

MANCOSA Campus Plot 50759, Block 9, Gaborone

Matsapha

Swaziland

Swaziland Institute of Mgt & Public Administration (SIMPA) New Campus Opposite the University of Swaziland, Kwa Luseni, Lozitha Road, Matsapha

Maputo

Mozambique

ICICE Av. Zedequias Manganhela n.267, 1º piso, Prédio Jat. Maputo, Mozambique

Harare

Zimbabwe

University of Zimbabwe (Faculty Of Law) Mount Pleasant, Harare

Lilongwe

Malawi

Natural Resource College Off Mchinji Road, Lilongwe

Nairobi

Kenya

AMREF International Training Centre Along Langlata Road, Opposite Wilson Airport

Maseru

Lesotho

Lehakoe Recreation and Cultural Centre Moshoeshoe Road, Maseru

Juba

South Sudan

United Nations, UNDP Meeting Hall Juba, South Sudan

Note: Please contact MANCOSA prior to the workshop to confirm your workshop venue.



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7.2 WORKSHOP DATES

CITY COUNTRY SEMESTER 1 SEMESTER 2

WORKSHOP WORKSHOP 1 2 3 4 5 6

Johannesburg

South Africa

25/26

August 2012

08/09

September 2012

10/11

November 2012

19/20 January

2013

16/17 February

2013

06/07 April

2013

Durban

South Africa

25/26

August 2012

08/09

September 2012

10/11

November 2012

26/27 January

2013

23/24 February

2013

13/14 April

2013

Pretoria

South Africa

25/26

August 2012

08/09

September 2012

03/04

November 2012

26/27 January

2013

23/24 February

2013

13/14 April

2013

East London

South Africa

04/05

August 2012

15/16

September 2012

10/11

November 2012

19/20 January

2013

02/03 March

2013

06/07 April

2013

Cape Town

South Africa

11/12

August 2012

08/09

September 2012

03/04

November 2012

26/27 January

2013

23/24 February

2013

13/14 April

2013

Polokwane

South Africa

18/19

August 2012

15/16

September 2012

10/11

November 2012

19/20 January

2013

16/17 February

2013

13/14 April

2013

Bloemfontein

South Africa

04/05

August 2012

01/02

September 2012

27/28 October

2012

19/20 January

2013

02/03 March

2013

06/07 April

2013

Nelspruit

South Africa

18/19

August 2012

15/16

September 2012

10/11

November 2012

26/27 January

2013

16/17 March

2013

13/14 April

2013

Windhoek

Namibia

11/12

August 2012

15/16

September 2012

10/11

November 2012

19/20 January

2013

16/17 February

2013

06/07 April

2013

Lusaka

Zambia

11/12

August 2012

08/09

September 2012

03/04

November 2012

19/20 January

2013

16/17 February

2013

06/07 April

2013

Gaborone

Botswana

11/12

August 2012

08/09

September 2012

03/04

November 2012

19/20 January

2013

16/17 February

2013

06/07 April

2013

Mbabane

Swaziland

18/19

August 2012

15/16

September 2012

10/11

November 2012

19/20 January

2013

09/10 March

2013

06/07 April

2013

Maputo

Mozambique

11/12

August 2012

08/09

September 2012

03/04

November 2012

19/20 January

2013

09/10 March

2013

13/14 April

2013

Harare

Zimbabwe

18/19

August 2012

15/16

September 2012

10/11

November 2012

26/27 January

2013

16/17 March

2013

13/14 April

2013

Lilongwe

Malawi

11/12

August 2012

08/09

September 2012

03/04

November 2012

19/20 January

2013

09/10 March

2013

06/07 April

2013

Nairobi

Kenya

18/19

August 2012

15/16

September 2012

10/11

November 2012

26/27 January

2013

16/17 March

2013

13/14 April

2013

Maseru

Lesotho

18/19

August 2012

15/16

September 2012

10/11

November 2012

26/27 January

2013

16/17 March

2013

13/14 April

2013

Juba

Sudan

04/05

August 2012

15/16

September 2012

10/11

November 2012

19/20 January

2013

02/03 March

2013

06/07 April

2013



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7.3 WORKSHOP PROGRAMMES

JOHANNESBURG DURBAN PRETORIA EAST LONDON

Time Activity/Module Activity/Module Activity/Module Activity/Module

SEMESTER 1 WORKSHOP 1, 2 AND 3

SATURDAY

07h30 – 08h00 Arrival at venue Arrival at venue Arrival at venue Arrival at venue

08h00 – 12h00 International Business




12h00 – 13h00 Break Break Break Break

13h00 – 17h00 Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy

SUNDAY


08h30 – 12h30 Accounting for Decision-Making

Accounting for Decision-Making




SATURDAY


08h00 – 12h00 Managing Strategic Change

Managing Strategic Change



12h00 – 13h00 Lunch Lunch Lunch Lunch

13h00 – 17h00 Managerial Finance Managerial Finance Managerial Finance Managerial Finance



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30

CAPE TOWN POLOKWANE BLOEMFONTEIN NELSPRUIT



SATURDAY








SUNDAY







SATURDAY










31

31

NAMIBIA ZAMBIA BOTSWANA SWAZILAND



SATURDAY








SUNDAY







SATURDAY










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32

MOZAMBIQUE ZIMBABWE MALAWI KENYA



SATURDAY








SUNDAY







SATURDAY










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33

LESOTHO SOUTH SUDAN

Time Activity/Module Activity/Module


SATURDAY

07h30 – 08h00 Arrival at venue Arrival at venue

08h00 – 12h00 International Business International Business

12h00 – 13h00 Break Break

13h00 – 17h00 Corporate Strategy Corporate Strategy

SUNDAY


08h30 – 12h30 Accounting for Decision-Making Accounting for Decision-Making


SATURDAY


08h00 – 12h00 Managing Strategic Change Managing Strategic Change

12h00 – 13h00 Lunch Lunch

13h00 – 17h00 Managerial Finance Managerial Finance

NOTE: (1) Workshop programmes are provisional and may be adjusted on the day of the workshop. Please call our

offices to confirm the programme for your specific venue a week before to the workshop. (2) Students are therefore reminded to carry all study material on the 1st day of the workshop. (3) Please read all relevant modules prior to attending workshops in order participate in the discussions. (4) Students are reminded that work on assignments should commence prior to the workshops. (5) Students are allowed and are encouraged to attend second semester workshops even if they were

unsuccessful in one or more first semester modules or without having their first semester results. (6) While attendance at workshops is not compulsory, it is advisable that you make use of the opportunity to

interact with academic faculty and fellow students. (7) There will be no lectures held for any of the elective modules. These modules require self directed

learning. You may send all academic queries to the academic support e-mail address for each module.



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8. ASSIGNMENTS

8.1 SUBMISSION 8.1.1 Mode of Delivery of Assignments All assignments must be submitted online. Note: No other mode of submission will be accepted. Please go to http://www.mancosa.co.za/assignments for assignment uploading procedures. 8.1.2 Assignment Administrative Support Depending on your choice of examination venue, students may contact support staff with regards to queries on their assignments. These queries should be directed to the contact details reflected in the table below.

REGION E-MAIL CONTACT PROCESSING OFFICE TELEPHONE CONTACT

Johannesburg [email protected] Johannesburg +27 11 8533000

Durban [email protected] Durban +27 31 3007200

Pretoria [email protected] Johannesburg +27 11 8533000

East London [email protected] Cape Town +27 21 6859072

Cape Town [email protected] Cape Town +27 21 6859072

Polokwane [email protected] Johannesburg +27 11 8533000

Bloemfontein [email protected] Johannesburg +27 11 8533000

Nelspruit [email protected] Johannesburg +27 11 8533000

Mafikeng [email protected] Johannesburg +27 11 8533000

Kimberley [email protected] Cape Town +27 21 6859072

Port Elizabeth [email protected] Cape Town +27 21 6859072

Mthatha [email protected] Cape Town +27 21 6859072

Windhoek [email protected] Durban +27 31 3007200

Zambia [email protected] Durban +27 31 3007200

Botswana [email protected] Durban +27 31 3007200

Swaziland [email protected] Durban +27 31 3007200

Mozambique [email protected] Durban +27 31 3007200

Zimbabwe [email protected] Johannesburg +27 11 8533000

Malawi [email protected] Durban +27 31 3007200

Kenya [email protected] Durban +27 31 3007200

Lesotho [email protected] Durban +27 31 3007200

South Sudan [email protected] Durban +27 31 3007200

Tanzania [email protected] Durban +27 31 3007200

Other Regions [email protected] Durban +27 31 3007200

Note: Do not submit assignments to the above e-mail addresses as these will not be assessed.

http://www.mancosa.co.za/assignments



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8.1.3 Assignment Submission Procedure Please go to http://www.mancosa.co.za/assignments for assignment submission procedures. 8.1.4 General guidelines to submission of assignments

Only one assignment per student is required. Multiple copies of the same assignment slows the smooth processing of assignments.

Before sending an assignment the onus is on the student to ensure that the assignment is properly labeled.

Assignments sent without cover pages will not be accepted. A sample cover page can be found as APPENDIX A at the end of the Course and Assignment handbook.

Cover pages should be added as the first page of an assignment and not as the last page.

The cover page, table of contents and bibliography should not be added to the final word count of an assignment. Word limits should be strictly adhered to.

Students need to be vigilant that the proper version of their assignments is sent to MANCOSA. If students send a wrong version of an assignment and this assignment is marked, the student will unfortunately be credited with the low mark.

8.1.5 Policy regarding group assignments and plagiarism While students are encouraged to form student and support groups, given the wealth of information available, each student MUST produce original pieces of work when submitting assignments. Students found guilty of plagiarism and dishonesty will be instructed to complete a new assignment, which will be capped at 50%. Capping means that the student will not be awarded an assessment mark of greater than 50%, irrespective of the academic merit of the assignment. 8.1.6 Acknowledgement of receipt of assignments

Students must ensure that they receive online confirmation of receipt of assignment.

It is the student’s responsibility to check that that they upload their complete assignment.

8.1.7 Release of assignment results

All assignments received by the due date will be marked and results will be available to students within 30 days of receipt of assignment.

MANCOSA will not be held responsible for the delayed return of assignments that have been submitted late.

8.1.8 Extension of submission dates

Students will only be granted an extension for the submission of an assignment in exceptional circumstances. The academic administration department should be contacted in this regard.

Normal pressure of work is not considered a valid reason to request for extensions. Note: Only one extension per semester will be granted.

An extension request form must be completed. Refer to Appendix B for the extension request form. This request must be forwarded to an e-mail address as stipulated in the table on page 34.

Extensions will not be granted on the due date of the assignment. All extension requests must be received by the academic administration department at least one (1) week prior to the due date of the assignment.

http://www.mancosa.co.za/assignments



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8.1.9 Late submission of assignments

A late submission is an assignment received by MANCOSA after the deadline date as stipulated in the assignment schedule or the extension date granted by MANCOSA.

Assignments submitted late without the proper authorisation will be subject to a penalty. These assignments will be capped at 50 %.

The final date of submission of all assignments excluding re-submitted assignments is two weeks after the due date of the last assignment for that semester. No extensions will be granted in this regard.

8.1.10 Re - submission of assignments

A student who obtains a mark of less than 45% may have another attempt at improving his/her grade on that assignment by a re-submission.

The re-submitted assignment will be capped at 50%.

The fee for a re-submission is R200.00

Resubmitted assignments must reach MANCOSA two (2) weeks after receipt of the original submission. No concessions will be granted in this respect.

Students will be required to answer a new assignment question for all assignment re-submissions. 8.1.11 Re- marking of assignments

Assignments will be re-examined at the request of the student. This will be done at a charge of R 200.00 per assignment. Proof of payment must be submitted together with the assignment.

In the event of a discrepancy between the original mark and the re - mark, the higher mark will be retained. 8.1.12 Assignment coversheet

All assignments must include a cover page. This cover page should include all information as indicated on Appendix A. Please ensure that all details are correctly completed.

A copy of the assignment cover page may be obtained from: http://www.mymancosa.com/documents/orderforms/Assignment%20Cover%20Sheet.doc 8.1.13 Return of assignments to students

Please note that marked assignments will not be posted back to students. All assignments will be scanned and e-mailed back to students.

http://www.mymancosa.com/documents/orderforms/Assignment%20Cover%20Sheet.doc



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8.2 ASSIGNMENT SUBMISSION DATES

SEMESTER 1

NO

MODULE

ASSIGNMENT DUE DATE

1


10 September 2012

2


25 September 2012

3

Corporate Strategy

08 October 2012

SEMESTER 2

4


11 February 2013

5

Managerial Finance

25 February 2013

6

Elective: Management Science Business and Professional Ethics Investment and Portfolio Management Entrepreneurship Environmental Management Project Management Managing Health Care

11 March 2013



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8.3 ASSIGNMENT QUESTIONS

ASSIGNMENT 1: INTERNATIONAL BUSINESS DUE DATE: 10 SEPTEMBER 2012 Read the Case Study below and answer the questions that follow: COMPETING IN THE CHINESE AUTOMOBILE INDUSTRY The Red Hot Market For automakers seeking relief from a global price war caused by overcapacity and recession, China is the only game in town. With just 10 vehicles per 1,000 residents in China as of 2006 (as opposed to 940 in the United States and 584 in Western Europe), there seem to be plenty of growth opportunities. Not surprisingly, nearly every major auto company has jumped into China, quickly turning the country into a new battleground for dominance in this global industry. In addition, China has become a major auto parts supplier. Of the world’s top-100 auto parts suppliers, 70% have a presence in China. China vaulted past the United States to become the world’s number-one vehicle market in the first 10 months of 2009. Reports of record sales, new production and new venture formations were plenty. After China’s access to the World Trade Organization (WTO) in 2001, the industry has been advancing in leaps and bounds (see Figure 1). Between 2002 and 2007, China’s automobile market grew by an average 21%, or one million vehicles year-on-year. At the global level, China has also moved to the first position in production passing the United States and Japan, and was to produce 13 million vehicles in 2009. Around 50% of the world’s activity in terms of capacity expansion has been seen in China for the last few years.

Figure 1: Automobile Production Volume and Growth Rate in China 1996 - 2009



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Because the Chinese government does not approve wholly owned subsidiaries for foreign carmakers (even after the WTO accession), foreign firms interested in final-assembly operations have to set up joint ventures (JVs) or licensing deals with domestic players. By the mid 1990s, most major global auto firms had managed to enter the country through these means (Figure 2). Among the European companies, Volkswagen (VW), one of the first entrants, has dominated the passenger car market. In addition, Fiat-Iveco and Citroen are expanding.

Figure 2: Timing and Initial Investment of Major Car Producers

Formation Initial Investment ($ million)

Foreign Equity

Chinese Partner Foreign Partner

Beijing Jeep* 1983 223.93 42.4% Beijing Auto Works Daimler, Chrysler

Shanghai Volkswagen 1985 263.41 50% SAIC Volkswagen

Guangzhou Peugeot 1985 131.40 22% Guangzhou Auto Group

Peugeot

FAW VW 1990 901.84 40% First Auto Works Volkswagen

Wuhan Shenlong Citroen

1992 505.22 30% Second Auto Works Citroen

Shanghai GM 1997 604.94 50% SAIC GM

Guangzhou Honda 1998 887.22 50% Guangzhou Auto Group

Honda

Changan Ford 2001 100.00 50% Changan Auto Motors

Ford

Beijing Hyundai 2002 338.55 50% Beijing Auto Group Hyundai

Tianjin Toyota 2003 1300.00 50% First Auto Works Toyota *Since 2005, the JV formerly called Beijing Jeep has taken the name “Beijing-Benz DaimlerChrysler Automotive Co. Ltd.” After DaimlerChrysler’s divestiture of Chrysler in 2007, the name has remained the same but ownership has been restructured, currently with 25% owned by Daimler, 25% by Chrysler and 50% by Beijing Auto Works.

Japanese and Korean automakers are relatively late entrants. In 2003, Toyota finally committed $1.3 billion to a 50/50 JV. Guangzhou Honda, Honda’s JV quadrupled its capacity by 2004. Formed in 2003, Nissan’s new JV with Dongfeng, which is the same partner for the Citroen JV, is positioned to allow Nissan to make a full fledged entry. Meanwhile, Korean auto players are also keen to participate in the China race, with Hyundai and Kia having commenced JV production recently. American auto companies have also made significant inroads into China. General Motors (GM) has an important JV in Shanghai, whose cumulative investment by 2006 was $5 billion. Although Ford does not have a high-profile JV like GM, it nevertheless established crucial strategic linkages with several of China’s second-tier automakers, such as Changan Auto Group. Chrysler’s Beijing Jeep venture, established since the early 1980s, has continued to maintain its presence. The Evolution of Foreign Direct Investment (FDI) in the Automobile Industry In the late 1970s, when Chinese leaders started to transform the planned economy to a market economy, they realised that China’s roads were largely populated by inefficient, unattractive, and often unreliable vehicles that needed to be replaced. However, importing large quantities of vehicles would be a major drain on the limited hard currency reserves. China thus saw the need to modernise its automobile industry. Attracting FDI through JVs with foreign companies seemed ideal. However, unlike the new China at the dawn of the 21st century that attracted automakers of every stripe, China in the late 1970s and early 1980s was not regarded as attractive by many global automakers.



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In the early 1980s Toyota, for example, refused to establish JVs with Chinese firms even when invited by the Chinese authorities (Toyota chose to invest in a more promising market, the United States, in the 1980s). In the first wave, three JVs were established during 1983 – 1984 by VW, American Motors, and Peugeot, in Shanghai, Beijing, and Guangzhou, respectively. These three JVs thus started the three decades of FDI in China’s automobile industry. There are two distinctive phases of FDI activities in China’s automobile industry. The first phase is from the early 1980s to the early 1990s, as exemplified by the three early JVs mentioned above. The second phase is from the mid-1990s to present. Because of the reluctance of foreign automakers, only approximately 20 JVs were established by the end of 1989. FDI flows into this industry started to accelerate sharply from 1990s. The accumulated number of foreign invested enterprises was 120 in 1993 and skyrocketed to 604 in 1998 with the cumulated investment reaching $20.9billion. The boom of the auto market, especially during the early 1990s, brought significant profits to early entrants such as Shanghai VW and Beijing Jeep. The bright prospect attracted more multinationals to invest. This new wave of investment had resulted in an overcapacity. Combined with the changing customer base from primarily selling to fleets (government agencies, state-owned enterprises, and taxi companies) to private buyers, the auto market has turned into a truly competitive arena. The WTO entry in 2001 has further intensified the competition as government regulations weaken. Given the government mandate for JV entries and the limited number of worthy local firms as partners, multinationals have to fight their way in to secure the last few available local partners. By the end of 2002, almost all major Chinese motor vehicle assemblers set up JVs with foreign firms. For numerous foreign automakers which entered China, the road to the Great Wall has been a bumpy and crowded one. Some firms lead, some struggle, and some had to drop out (see Figure 3). The leading players are profiled below.

Figure 3: Evolution of Relative Market Share Among Major Auto Manufacturers in China



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Volkswagen After long and difficult negotiations that began in 1978, VW in 1984 entered a 50/50 JV with the Shanghai Automotive Industrial Corporation (SAIC) to produce the Santana model using the completely knocked down (CKD) kits. The Santana went on to distinguish itself as China’s first mass produced modern passenger car. As a result, VW managed to establish a solid market position. Four years later, VW built on its first-mover advantage and secured a second opening in the China market when the central authorities decided to establish two additional passenger car JVs. After competing successfully against GM, Ford, Nissan, Renault, Peugeot, and Citroen, VW was selected to set up a second JV with the First Auto Works (FAW) in Changchun in northeast China in 1998 for CKD assembly of the Audi 100 and the construction of a state-of-the-art auto plant to produce the VW Jetta in 1990. Entering the China market in the early 1980s, VW took a proactive approach in spite of great potential risks. The German multinational not only committed enormous financial resources but also practiced a rather bold approach in its dealings in China. This involved a great deal of high level political interaction with China’s central and local government authorities for which the German government frequently lent its official support. Moreover, VW was willing to avail the Chinese partners a broad array of technical and financial resources from its worldwide operations. For example, in 1990 VW allowed FAW a 60% ownership stake in its JV while furnishing most of the manufacturing technology and equipment for its new FAW-Volkswagen Jetta plant in Changchun. Moreover, VW has endeavoured to raise the quality of locally produced automotive components and parts. For the remainder of the 1980s and most of the 1990s, VW enjoyed significant first mover advantages. With a market share (Shanghai VW and FAW VW combined) of more than 70% for passenger cars over a decade, VW, together with its Chinese partners, benefited considerably from the scarcity of high-quality passenger cars and the persistence of a seller’s market. However, by the late 1990s, the market became a more competitive buyer’s market. As the leading incumbent, VW has been facing vigorous challenges brought by its global rivals which by the late 1990s made serious commitments to compete in China. Consequently, VW’s passenger car market share in China dropped from over 70% in 1999 to 39% in 2004. In 2005, GM took the number one position in China from VW. How to defend VW’s market position thus is of paramount importance. General Motors In 1995, GM and SAIC (which was also VW’s partner) signed a 50 / 50, $1.57 billion JV agreement – GM’s first JV in China – to construct a greenfield plant in Shanghai. The new plant was designed to produce 100,000 sedans per year, and it was decided to produce two Buick models modified for China. The plant was equipped with the latest automotive machinery and robotics and was furnished with process technology transferred from GM’s worldwide operations. Initially Shanghai GM attracted a barrage of criticisms about the huge size of its investment and the significant commitments to transfer technology and design capabilities to China. These criticisms notwithstanding, GM management reiterated at numerous occasions that China was expected to become the biggest automotive market in the world within two decades and that China represented the single most important emerging market for GM. Since launching Buick in China in 1998, GM literally started from scratch. Unlike its burdens at home, GM is not saddled with billions in pensions and health-care costs. Its costs are competitive with rivals, its reputation does not suffer, and it does not need to shell out $4,000 per vehicle in incentives to lure new buyers – even moribund brands such as Buick are held in high esteem in China. Consequently, profits are attractive: the $437 million profit GM made in 2003 in China, selling just over 386,000 cars, compare favourably with the $811 million profit it made in North America on sales of 5.6 million autos. In 2004, GM had about 10,000 employees in China and operated 6 JVs and two wholly owned foreign enterprises (which were allowed to be set up more recently in non-final assembly operations). Boasting a combined manufacturing capacity of 530,000 vehicles



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sold under the Buick, Chevrolet, and Wuling nameplates, GM offers the widest portfolio of products among JV manufacturers in China. In 2009, the bankruptcy filing of GM in the United States had minimal impact on its China operations. GM vehicle sales in China, its largest overseas market, surged 50% to a monthly record of 151,084 units in April 2009, in contrast with a sharp decline in the United States. Peugeot Together with VW and American Motors (the original partner for the Beijing Jeep JV), Peugeot was one of the first three entrants in the Chinese auto mobile industry. In 1980, it started to search for JV partners. In 1985 it set up a JV, Guangzhou Peugeot, in south China. The JV mainly produced the Peugeot 504 and 505, both out-of-date models of the 1970s. While many domestic users complained about the high fuel consumption, difficult maintenance, and expensive parts, the French car manufacturer netted huge short-term profits at approximately $480 million by selling a large amount of CKD kits and parts. Among its numerous problems, the JV also reportedly repatriated most of its profits and made relatively few changes to its 1970s era products, whereas VW in Shanghai reinvested profits and refined its production, introducing a new “Santana 2000” model in the mid-1990s. Around 1991, Guangzhou Peugeot accounted for nearly 1% of China’s passenger car market. But it began to go into the red in 1994 with its losses amounting to $349 million by 1997, forcing Peugeot to retreat from China. It sold its interest in the JV to Honda in 1998. While the sour memories of the disappointing performance of its previous JV were still there, Peugeot (now part of PSA Peugeot Citroen) decided to return to the battlefield in 2003. This time, the Paris-based carmaker seemed loaded with ambitious expectations to grab a slice of the country’s increasingly appealing auto market sparked by the post-WTO boom. One of its latest moves in China is an agreement in 2003 under which PSA Peugeot Citroen would further its partnership with Hubei-based Dongfeng Motor, one of China’s top three automakers which originally signed up as a JV partner with Citroen, to produce Peugeot vehicles in China. According to the new deal, a Peugeot production platform would be installed at the Wuhan plant of the JV, Dongfeng Citroen. Starting from 2004, the new facility has turned out car models tailored for domestic consumers, including the Peugeot 307, one of the most popular models in Europe since 2003. Honda Peugeot’s 1998 pullout created a vacuum for foreign manufacturers that missed the first wave of FDI into this industry. These late entrants include Daimler-Benz, GM, Opel (a German subsidiary of GM), and Hyundai. Against these rivals, Honda won the fierce bidding war for the takeover of an existing auto plant in Guangzhou of the now defunct Guangzhou Peugeot JV. The partner selection process had followed a familiar pattern: Beijing was pitting several bidders against each other to extract a maximum of capital, technology, and manufacturing capabilities as well as the motor vehicle types deemed appropriate for China. Honda pledged to invest $887 million and committed the American version of the Honda Accord, whose production started in 1999. Two years later, Guangzhou Honda added the popular Odyssey minivan to its product mix. In less than 2 years, Honda had turned around the loss-making Peugeot facility into one of China’s most profitable passenger car JVs. It is important to note that well before its JV with the Guangzhou Auto Group, Honda had captured a significant market share with exports of the popular Honda Accord and a most effective network of dealerships and service and repair facilities all over China. These measures helped Honda not only to attain an excellent reputation and brand recognition, but also strengthened Honda’s bargaining power with the Chinese negotiators.



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Emerging Domestic Players The original thinking behind the Open Door policy in China’s auto market by forming JVs with multinationals was to access capital and technology and to develop Chinese domestic partners into self-sustaining independent players. However, this market-for-technology strategy failed to achieve its original goal. Cooperation with foreign car companies did bring in capital and technology, but also led to over-dependence on foreign technology and inadequate capacity (or even incentive) for independent innovations. By forming JVs with all the major domestic manufacturers and controlling brands, designs, and key technologies, multinationals effectively eliminated the domestic competition for the most part of the last two decades. Only in the last few years did Chinese manufacturers start to design, produce and market independent brands. In 2006, domestic companies controlled some 27% of the domestic market (mostly in entry- to mid-level segments). They have become masters at controlling cost and holding prices down, with a typical Chinese auto worker earning $1.95 an hour against a German counterpart making $49.50 an hour. Ironically, the breakthrough came from newly established manufacturers without foreign partners. Government owned Chery (Quirui) Automobile, which started with $25 million using second-hand Ford production equipment, produced only 2,000 vehicles initially. In 2006, it sold 305, 236 cars, a surge of 188% over 2005, with plans to double that again by 2008. Privately owned Geely Group obtained its license over six years ago and began with crudely built copycat hatchbacks powered by Toyota-designed engines. With an initial output of 5,000 cars in 2001 Geely today produces 180,000 a year, with various models of sedans and sports cars, including those equipped with self-engineered six cylinder engines. Beyond the domestic market, Chery now exports cars to 29 countries. In 2006, the company produced 305,000 cars and exported 50,000. Chery cars are expected to hit Europe soon. Geely Group plans to buy a stake in the UK taxi maker Manganese Bro Manganese Bronze Holdings and start producing London’s black taxis in Shanghai. It also aims to sell its affordable small vehicles in the US within several years. In an effort to get close to overseas markets, the Chinese players are starting to open overseas factories too. Chery has assembly operations in Egypt, Indonesia, Iran and Russia. The company now is planning to extend its reach in South America by opening an assembly plant to produce its Tigo-brand sport-utility vehicle in Uruguay. Brilliance produces vehicles in three overseas factories in North Korea, Egypt, and Vietnam, and Geely has a factory in Russia. One notable trend is the use of acquisition as a key mode for Chinese players to gain ownership of technologies, brands, and access to markets in developed countries with the profit from the domestic market. As the domestic competition and the pressure to consolidate from the central government intensifies, firms have participated in many high-profile bidding wars to acquire international brands / firms, such as BAIC’s bid for Open and Saab, Geely’s bid for Volvo, and the acquisition of Hummer from GM by Tengzhong Heavy Industrial Corporation in 2009. Another significant development is the effort on “green vehicles.” At present, energy conservation and environmental protection have represented a new wave of innovations. The development of new energy technologies becomes an opportunity for China’s auto industry to shorten the gap and enhance its international competitiveness. Total investment into this area in China has exceeded $850 million for the last decade and automakers have made certain noticeable achievements. Of all the Chinese automakers that pursue new energy cars, perhaps the most significant is BYD, which has a promising breakthrough electric vehicle technology through its self-developed ferrous batteries. BYD Auto is a subsidiary of BYD Group, the leading provider of lithium-ion cell phone batteries (with a 30% global market share).



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BYD has only been an automaker since 2003, when it acquired a small car company called Qinchuan Motor. The company’s core business is producing batteries for mobile phones made by the likes of Nokia and Motorola. Since then BYD has developed is auto business, selling more than 100,000 cars in China in 2007. BYD sees major synergy between its batteries and its cars. At the moment, there is a worldwide race in producing commercially viable “plug-in hybrid” cars. Among about a dozen competitors, GM launched the Chevy Volt plug-in model at the end of 2010 and Toyota started selling its plug-in model of the Prius in early 2012. The key to success with plug-in models is the battery technology, which BYD claims to have mastered through its own R&D efforts. The lithium-iron phosphate batteries are much safer than the common lithium-ion batteries seen in early development efforts. Chinese automakers, especially the independent brand holders, have made significant progress toward producing competitive vehicles for domestic market as well as external markets through licensing, self-development, outsourcing, and acquisition of technologies. However, the real breakthrough may not come from traditional vehicles powered by internal combustion engines where Chinese firms are perceived to be still 10 – 20 years behind multinationals. With a coordinated effort from government, research centres, universities, as well as R&D centres established by auto firms, China is not far behind in the area of new energy vehicle technologies. Some firms such as BYD many even be among the leaders in offering a commercially viable “plug-in hybrid” and a pure electric car in the near future. Such new technology-base vehicles will overcome many entry barriers to the mature markets like the United States. The Road Ahead China’s automobile industry, which has almost exclusively focused on the domestic market still has much room for future development and may maintain an annual growth rate of 10% - 15% for the next few years. In the long run, as domestic growth inevitably slows down, there will be fiercer market competition and industry consolidation. The entry barriers will be higher and resource development will be more crucial to sustainability of the competitive advantage. In order to survive and maintain healthy and stable growth, China’s JVs and indigenous automobile companies, having established a solid presence domestically, must be able to offer their own products that are competitive in the global market. No doubt, the road to success in China’s automobile industry is fraught with plenty of potholes. As latecomers, Hyundai, Toyota, Honda and Nissan had fewer options in the hunt for appropriate JV partners and market positioning than did the first mover VW during the 1980s. All the way through the early 1990s, foreign auto companies were solicited to enter China and encountered very little domestic competition or challenge. This situation has changed significantly. Today the industry is crowded with the world’s top players vying for a share of this dynamic market. Success in China may also significantly help contribute to the corporate bottom line for multinationals that often struggle elsewhere. For example, China, having surpassed the United States, is now Volkswagen’s largest market outside of Germany. (adapted from: Peng, M.W. (2011) Global Business. 2

nd Edition. Mason: Southwestern Cengage Learning. pp 288 - 295)



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Questions 1 – 5 are based on the case study ‘Competing in the Chinese Automobile Industry’. Answer ALL questions. Question 1 (20) With reference to relevant literature, critically discuss the extent to which the Chinese automobile industry reflects the changing demographic landscape of the global economy. Question 2 (20) With reference to relevant literature, critically discuss why all multinational automakers choose to use foreign direct investment (FDI) to enter into the Chinese automobile market. Explore what the drawbacks would be of using other entry modes such as exporting and licensing. Question 3 (20) Some early entrants (such as VW) succeeded and some early entrants (such as Peugeot) failed. Similarly, some late entrants (such as Honda) did well and some late entrants (such as Ford) are struggling. With reference to relevant literature, critically discuss the role that entry timing played in determining the various car manufacturers’ performance. Question 4 (20) “Because the Chinese government does not approve wholly owned subsidiaries for foreign carmakers (even after the WTO accession), foreign firms interested in final-assembly operations have to set up joint ventures (JVs) or licensing deals with domestic players.” With reference to relevant literature, critically discuss whether the Chinese government’s intervention in the Chinese automobile industry was appropriate. Question 5 (20) Those car manufacturers from around the globe that entered into joint ventures with Chinese partners in China’s automobile industry are likely to have encountered cultural challenges in conducting business and managing employees. With reference to relevant literature, critically discuss how the different cultures would have impacted the operation of the joint ventures in the Chinese automobile market.



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ASSIGNMENT GUIDELINES Please take note of the following guidelines:

Format: Assignments must be presented in 12pt Arial Font and in 1 ½ line spacing.

Structure: The assignment should be structured as follows: o Title page (1 page) o Table of contents (1 page) o Question 1: Answer (approx 4 pages) o Question 2: Answer (approx 4 pages) o Question 3: Answer (approx 4 pages) o Question 4: Answer (approx 4 pages) o Question 5: Answer (approx 4 pages) o Bibliography

Length: Your answers to the five questions combined must be approximately 20 pages (i.e. 5000 words).

Use of Literature & Referencing: It is imperative that you utilise relevant literature in answering all five questions. At least eight texts (including textbooks and journal articles) should be consulted. In-text referencing must be provided. A bibliography must also be provided. The Harvard Referencing technique must be used.

Only Utilise the Facts About the Chinese Automobile Industry and Car Manufacturers (e.g. Volkswagen) indicated in the Case Study: When answering questions 1 - 5 on China’s automobile industry and the various car manufacturers, it is important that you restrict your analysis to the facts presented in the case study on this industry and the car manufacturers.

Organisation: In answering each question you should give attention to the structure of their answers. Each answer should begin with an introduction and end with a conclusion. Learners should also give attention to the logical structuring of their arguments so as to ensure the coherent flow of discussion.

Professional Standard of Work: It is imperative that learners proofread and edit their assignment prior to submitting it. Assignments must be free from errors and of a professional standard.



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ASSIGNMENT 2: ACCOUNTING FOR DECISION-MAKING DUE DATE: 25 SEPTEMBER 2012 QUESTIONS 1 AND 2 ARE BASED ON THE FOLLOWING INFORMATION: The information given below was obtained from the books of Kleenex Limited:

1. BALANCE SHEET AS AT 30 JUNE:

2011 R

2010 R

ASSETS

Non-current assets 9 884 000 9 332 000

Property, plant and equipment 9 884 000 9 332 000

Current assets 5 762 000 4 460 000

Inventory 1 026 000 1 092 000

Debtors/Accounts receivable 3 976 000 3 048 000

Bank 753 000 311 000

Cash Float 7 000 9 000

15 646 000 13 792 000

EQUITY AND LIABILITIES

Equity 7 554 000 6 614 000

Ordinary Share Capital (par value R10) 6 200 000 5 480 000

Retained Income 1 354 000 1 134 000

Non-current liabilities 5 400 000 3 960 000

Mortgage bond (18% p.a.) 5 400 000 3 960 000

Current liabilities 2 692 000 3 218 000

Creditors/Accounts payable 2 200 000 2 366 000

Income tax payable 430 000 376 000

Dividends payable 62 000 476 000

15 646 000 13 792 000

2. EXTRACT FROM THE INCOME STATEMENT FOR THE YEAR ENDING 30 JUNE 2011

R

Sales (all credit) 8 000 000

Cost of sales (all purchases on credit) 3 200 000

Interest on Loan 936 000

Depreciation on Vehicles 822 000

Depreciation on Equipment 722 000

Operating profit 2 534 000

Profit before tax 1 598 000

Income tax 774 000

Profit after tax 824 000

3. EXTRACT FROM THE STATEMENT OF CHANGES IN EQUITY AS AT 30 JUNE 2011: Ordinary Share Dividends for the year, R604 000



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4. EXTRACT FROM THE NOTES TO THE FINANCIAL STATEMENTS AS AT 30 JUNE:

Property, plant and equipment 2011 R

2010 R

Vehicles (Cost) 4 900 000 5 560 000

Accumulated Depreciation on Vehicles 1 672 000 962 000

Equipment (Cost) 10 604 000 7 960 000

Accumulated Depreciation on Equipment 3 948 000 3 226 000

Note: Some of the vehicles were sold at carrying value during the year, but no new vehicles

were bought. Equipment was purchased for cash during the year but no equipment was sold.

QUESTION 1 (20 MARKS) REQUIRED 1.1 Use the information provided above to prepare the cash flow statement for

the year ended 30 June 2011 (using the indirect method).

(16 marks) 1.2 Comment on the cash flows of the company. Discuss any two significant

points. (4 marks)

QUESTION TWO (20 MARKS) 2.1 Use the information provided above to calculate the following ratios for 2011.

Where applicable, round off answers to two decimal places. 2.1.1 Gross margin (2 marks) 2.1.2 Inventory turnover (2 marks) 2.1.3 Acid test ratio (2 marks) 2.1.4 Return on capital employed (2 marks) 2.1.5 Turnover to net assets (2 marks) 2.1.6 Dividend per share (2 marks) 2.1.7 Earnings retention ratio (2 marks) 2.1.8 Debt to equity (2 marks) 2.2 The ratios given below have deteriorated from 2010 to 2011.

For each ratio suggest two strategies that the company could use to make an improvement. 2.2.1 Gross margin (2 marks) 2.2.2 Return on assets (2 marks)



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QUESTION 3 (20 MARKS)

3.1 REQUIRED Study the information provided below and answer the following questions: 3.1.1 Should the company accept a special order for 120 000 units at R150 per unit, if

no additional selling expenses are incurred? Show the relevant calculations.

(6 marks) 3.1.2 What is the maximum price per unit that Pearson Limited should be willing to

pay an outside supplier who is interested in manufacturing this product?

(2 marks)

INFORMATION Pearson Limited has the capacity to produce one third more than the current sales per

month. Current monthly production and sales are 300 000 units at R450 each. Costs for producing 300 000 units are as follows:

(R)

Direct materials 22 500 000

Direct labour 13 500 000

Variable factory overheads 3 375 000

Fixed factory overheads 6 750 000

Variable selling expenses 1 125 000

Fixed administrative expenses 4 500 000

Total cost per unit R172.50

3.2 REQUIRED 3.2.1 Use the following information relating to Marlow Enterprises to prepare the Cash

budget for March and April 2013. Provide separate money columns for each month.

(10 marks) 3.2.2 Refer to the cash budget and state whether the cash position of Marlow Enterprises is

satisfactory or not? Explain why.

(2 marks)

INFORMATION 1. Marlow Enterprises expects to have an unfavourable bank balance of R68 000 on 28 February 2013.

2. Budgeted sales figures for the first four months of 2013 are as follows:

January February March April

Cash sales 174 000 184 800 156 000 123 600

3.

Cash sales make up 60% of the total sales. The balance of the sales is on credit. Debtors usually settle their accounts one month after the sale.

4. Purchases of inventory for the first four months of 2013 are expected to be as follows::

January February March April

Total purchases 204 000 230 000 196 000 190 000

5.

50% of the purchases are for cash. The balance is purchased on credit. Creditors are paid two months after the month of purchase

6. The proprietor’s monthly drawings are R16 000 and is made up as follows: Cash

Inventory R10 000 R6 000



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7. The salaries are expected to amount to R105 600 for April 2013, after a 10% increase takes effect from 01 April 2013.

8. A fixed deposit, R40 000, will mature (expire) on 31 March 2013. Interest at 12% per annum for six months will also be received on this date.

9. Equipment costing R80 000 will be purchased on 31 March 2013. A deposit of R20 000 will be paid on this date. The balance will be paid in 6 equal monthly instalments commencing 30 April 2013.

10.

Other cash operating expenses are expected to amount to R80 000 for February 2013 and are expected to increase by 5% each month thereafter.

QUESTION 4 (20 MARKS) REQUIRED Refer to the information given below and consider each of the following situations independently:

4.1 How many units must Dion Limited sell to break even? (4 marks)

4.2 Based on the expected sales volume of 14 400 units, what sales price per unit will

allow the company to break even?

(4 marks)

4.3 Dion Limited has decided to advertise the product heavily and set the sales price at R576. If sales are R12 600 units, how much can the company spend on advertising and still break even?

(4 marks)

4.4 Should management consider a drop of R20 per unit in the selling price if the sales volume is expected to increase to 16 000 units? Motivate your answer with the relevant calculations.

(4 marks)

4.5 Calculate the contribution margin and operating profit/loss if an increase in advertising expense by R160 000 is expected to increase sales by 300 units

(4 marks)

INFORMATION

Dion Limited is analysing whether its new product will be profitable. The following data, based on expected sales of 14 400 units, is provided for analysis:

Selling price per unit R540 Direct material cost per unit R120 Direct labour cost per unit R80 Variable overhead costs per unit R34 Fixed manufacturing overhead costs R468 000 Sales commission per unit R54 Fixed administrative and selling costs R111 600



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QUESTION 5 (20 MARKS)

5.1 REQUIRED Study the information given below and answer the following questions: Which of the two investment opportunities should it choose? Motivate

your answer by comparing the net present value of each alternative.

(10 marks)

INFORMATION The management of Sentinel Incorporated is considering two investment opportunities:

■ The first alternative involves the purchase of new equipment for R880 000 which will enable the company to modernise its manufacturing facility. The equipment is expected to have a useful life of five years and a R44 000 salvage value. On the day Sentinel Incorporated purchases the new equipment, it would also pay the equipment manufacturer R33 000 for installation costs. The modernisation is expected to increase efficiency, resulting in a R237 000 reduction in annual cash operating expenses.

■ The second alternative involves purchasing a truck. Purchasing another truck will enable the company to expand its delivery area and increase its revenue. The truck costs R1 265 000. Its useful life is expected to be five years and a salvage value of R330 000 is anticipated. The truck is expected to generate R759 000 cash per year in additional revenues. The driver’s salary and other cash operating expenses are expected to be R352 000 per year.

Sentinel Incorporated desires a rate of return of 14%. 5.2 REQUIRED Use the information given below to calculate the: 5.2.1 Variable overhead efficiency variance (3 marks) 5.2.2 Variable overhead spending variance (3 marks) Note: State whether each variance is favourable or unfavourable. 5.2.3 Provide two possible reasons for a favourable direct labour efficiency variance. (4 marks)

INFORMATION

Variable overhead standards for 36 000 finished units for Kensington Inc are as follows: 162 000 hours at R7.20 per hour

During September 32 000 units were produced. Direct labour hours used were 166 400 hours. Actual variable overhead costs were R1 231 360.

Assignment format ● Your assignment should include a Table of Contents page and a bibliography. ● Text: Arial or Times New Roman (12); Spacing 1½ lines. All text must be justified at each margin. ● Where applicable, use formats and formulas from your study guide or workbook. ● Start each question on a new page. ● Number each solution according to the numbering in the assignment handbook. ● You may make use of a spreadsheet (e.g. Microsoft Excel) to assist you only with the construction of

tables and formats. ● Solutions generated by software packages will not be marked. ● No marks will be awarded if only the final answers are given. All relevant workings must be shown. ● The Harvard System of referencing must be used if documents, literature and data (excluding

formulae) other than that provided in the assignment question are used.



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ASSIGNMENT 3: CORPORATE STRATEGY DUE DATE: 08 OCTOBER 2012 Read the following case study and then answer all the questions that follow. KULULA.COM: SOUTH AFRICA’S LOW COST AIRLINE Airline Kulula belongs to an elite group of corporate upstarts that have hit the tarmac and immediately caused larger rivals to scurry for cover. Owned by Comair, Kulula has caused South African Airways (SAA) much consternation – evident in the remarkable behavioural shift it has forced upon the country’s national carrier. The now familiar luminous green brand kicked off in August 2001 with the intention of punting a “no-frills”, low-cost flight carrier to South Africa’s leisure travel market, hoping to turn a profit if it could find passengers for about 80% of the seats on all its flights. Two years later (2003), Kulula was on the verge of hitting the one million passenger mark. Importantly, it has snaffled 13% of the lucrative Johannesburg-Cape Town flight market, the key route for South African air carriers. As at March 2010, in the South African domestic market, Kulula.com ranked second after the dominant national carrier South African Airways. While fellow low cost carrier 1time is a close follower, South Africa’s third low cost carrier Mango is substantially smaller, just over half the size of Kulula.

South African Domestic Airlines By Weekly Seat Capacity (as at March 2010)

Number of Weekly Seats Filled SAA 152,891 Kulula.com 49,400 1time 44,745 BA (Comair) 27,634 Mango 26,219 Interlink Airlines 1,425

Kulula’s CEO is reluctant to crow about the carrier’s success. “We saw that price was becoming a major factor in why and how people travel and we thought there was a strong business case for providing the most affordable flights possible,” he says. A strong case indeed. Aiming to break even within a year Kulula started making profit within its first month – boosted by a champagne-tinted debut in which it poured over R3million into wooing publicity for its business. Exactly how profitable Kulula is currently remains a closely guarded secret known only by a handful at Comair’s Kempton Park headquarters. Comair is 18% owned by global heavyweight British Airways and in February 2003 Comair reported a 15% increase in turnover to R708 million for the six months to the end of February. Although Comair refused to provide a breakdown of its profits, this increase was believed to have emanated from the success enjoyed by Kulula – into which Comair poured R70 million in development funds. Comair’s MD says the breakdown “has not been disclosed”, but confirms that Kulula “is making a profit.” Comair’s MD also brushed off fears that Kulula has eaten dangerously into Comair’s own market share in the South African market. “Kulula has undeniably cannibalised some of British Airways-Comair’s business. Some customers clearly find it more palatable than the Comair flights. But in the end, both Kulula and Comair are very different businesses, and are serving different markets,” he said.



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Kulula’s profitability stems from the fact that its belt is tightened to the maximum. The company cut costs by providing a basic flight service and by slashing its technology costs through an online booking system. It has no business class, no free food or drink, no airport lounges, no refund for cancellations and most ticket sales are electronic. But hitting the millionth passenger mark in 2003, within two years of its launch, made it clear that Kulula had adopted an approach that worked. Remarkably, Kulula has also become South Africa’s largest online retailer. The carrier takes in millions through the internet, as over 65% of its tickets are booked through www.kulula.com, a website which has earned kudos for exemplifying the Zulu meaning of its name – ‘easy’. The company was able to edge out Kalahari.net and bidorbuy.co.za in the online sales stakes primarily due to the hefty average value per transaction of about R1000. The website cost R1million to develop, a far cry from the millions that SAA was estimated to have ploughed into its flysaa.com website. “The cost savings ensure,” says Kulula’s CEO, “the cheapest flights possible in South Africa.” A return flight on the popular (and money-spinning) Johannesburg – Cape Town route costs upwards of R1050, the new Johannesburg-Port Elizabeth route costs about R800, while the Durban-Johannesburg route costs upwards of R630. By contrast, an SAA Johannesburg-Cape Town flight starts at about R1500. Although both parties will deny this, a low-intensity price war was waged between SAA and Kulula, evoking memories of the 1998 tussle in which SAA tackled Comair, Nationwide and Sunair. Countering the threat posed by the newcomer, SAA launched a “red-eye” late night flight for R627 return in 2003 – but only for flights on Tuesdays and Saturdays. Notably, SAA’s advertising campaign for their “red-eye” flights took a blatant swipe at Kulula by mentioning the fact that food and drinks are handed out free-of-charge on their flights (inviting the comparison with Kulula’s onboard meal service, for which passengers must pay). Kulula wasn’t slow to take up the gauntlet. It immediately launched its own “red-eye” flights for R500 one way – more expensive than SAA, but flying on Fridays and Sundays, which are far more enticing and easier to book. Either way, this competition can only be good for consumers. Over the last few years, overseas carriers like Ryanair and EasyJet in the United Kingdom and Virgin Blue in Australia have made air travel affordable for the masses. For South Africans bred on a regular diet of expensive flight options, Kulula’s arrival provided a welcome new alternative. “I think we really have changed the South African market,” says Kulula’s CEO. “By isolating price as a key factor in how often people fly and targeting this we’ve brought a new market to air travel and also encouraged the existing market to fly more often,” he says. The growth in the market is borne out by figures released by the Airports Company of South Africa, which showed that air travel is growing by 12% on average. But is this really as cheap as air tickets can get? After all, the UK market is elbow-to-elbow with advertisements to fly all over Europe and back for less than £50. Kulula says flight prices are at their absolute minimum right now. “It’s really as cheap as it can go. You can’t compromise on the class of the service and the safety factors. And for us, about 55% of our costs are from abroad and paid in dollars,” comments Kulula’s CEO. He adds that South Africa has a far smaller market than the UK, so ticket prices must accommodate the possibility of emptier flights. Either way, Kulula claims it is 40% cheaper on average than other carriers – this is illustrated by the market space it has grabbed from the usual suspects.



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Kulula’s CEO says that the carrier attained its 13% market share on the Johannesburg-Cape Town route through a rapid network expansion. When it launched amidst much fanfare in 2001, Kulula took to the runway only three times a week between Johannesburg and Cape Town – and then with only one Boeing 727. As at February 2010, Kulula’s fleet of aircraft had increased to nine, with eight new aircraft on order. Its route network has also expanded – for example, in May 2003 Kulula launched two new routes: Johannesburg-Port Elizabeth and Durban-Cape Town. In 2002 Kulula embarked on a different tack entirely by offering a car hire service for people using its flights. In collaboration with Imperial Car Rental, Kulula offered its return flight passengers the opportunity to rent a Toyota Tazz for R165 a day, including unlimited mileage. More recently, Kulula has introduced a budget hotel accommodation booking service. Kulula then is clearly well established. So what of future plans? “Well we think the business market is a huge potential market for us, especially the smaller business person and small companies,” says Kulula’s CEO. This line of thinking is commendable, considering that over 80% of South Africa’s air travel market consists of business travel. Kulula’s CEO says that the medium sized companies are becoming acutely aware of maintaining costs, while for the small entrepreneurs, cheaper flights might actually convince them to take the aerial route instead of driving between cities. The burgeoning small and medium sized enterprise market in the Eastern Cape, for example, was one of the major reasons driving the launch of the Johannesburg-Port Elizabeth route. To lure the business traveller, Kulula introduced an innovation uncommon in the low-cost flight arena. For a very small fee, booked flights can be changed as many times as a passenger wants – a bonus for the business people who have either run late in meetings or want to get home quicker. “We saw that the average flight reservation is changed 2 ½ times on average. So we became the first low-cost airline in the world to allow passengers to change their flights online up to two hours before they are due to fly,” says Kulula’s CEO. The company has also placed a strong emphasis on punctuality with over 70% of its flights leaving at the time advertised. “This is much better than most our our competitors and actually, when one looks at the figures over 90% of our flights leave within 15 minutes of the scheduled time,” comments Kulula’s CEO. Prices aside, there is another reason why Kulula has become the equivalent of the generic medication for cheap air travel in South Africa. Through its luminous green brand, Kulula has pitched itself as a fresh, dynamic company without the stuffy pretensions of the jacket-and-tie SAA corporate set. Through this, the carrier aligned itself with younger companies such as Outsurance. “We wanted to create a sense of fun, wackiness and informality about the brand. Those who don’t expect much from us service-wise are then pleasantly surprised,” comments Kulula’s CEO. To continue to eat into SAA’s market share, Kulula will need all the help it can get. The stakes are high and for its low-cost service to work, it has to keep its flights more than 80% full, a considerable challenge when one considers that other low-cost carriers like Intensive Air have crumbled under the cost pressure. But at the moment, Kulula is meeting this 80% target and beating the SA industry average of 65% in the process. Source: Adapted from www.kulula.com , www.anna.aero.com and Times Live, 2010

http://www.kulula.com/

http://www.anna.aero.com/



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Question 1 (25) “Porter's five-forces model of industry competition is by far the most widely-used approach in industry and competitive analysis”. Using Porter’s five-forces model, critically analyse Kulula’s operation within the air travel industry.

Question 2 (20) 2.1 Which of Michael Porter’s generic competitive strategies has Kulula chosen? Critically analyse this choice

of strategy that has led to its success. (10) 2.2 Outline the branding strategy employed by Kulula. (10) Question 3 (15) The air travel industry is currently in its lifecycle stage of maturity. 3.1 Critically discuss whether Kulula’s strategies are appropriate to the stage of maturity in the air travel life

cycle. (10) 3.2 If Kulula is still operating when the air travel industry reaches the stage of stagnation and decline, explain

how Kulula should adjust its strategy. (5) Question 4 (20) “Strategic management essentially involves strategic alignment; a dynamic process whereby an organisation's

strategy is calibrated with its culture, leadership, organisational structure, and governance” 4.1 Critically discuss the concept of strategic alignment, and analyse the extent to which Kulula has achieved

strategic alignment. (10) 4.2 Critically discuss the factors which could bring about strategic misalignment within Kulula, detailing the

negative impact which such misalignment would have for the airline. (10) Question 5 (20) In order to effectively monitor and evaluate progress made against strategic goals, it is important that Kulula conduct enterprise performance management. Prepare a report for the Kulula’s CEO in which you provide guidelines on how to measure performance against the company’s strategic goals. Assignment Guidelines

Word Limit: Your assignment (excluding index, cover page, list of references and appendices) must not exceed 6000 words. Your assignment should include a Table of Contents page.

Text: Font: Arial or Times New Roman (12), Spacing: 1½ lines.

All text must be justified at each margin.

Your answers must include any theories, charts, tables, appendices or exhibits necessary to support your analysis and recommendations.

References - At least 10 sources of reference (textbooks, journals, press reports, internet, etc) must be included in your list of references. The Harvard system of referencing must be used.

You MUST use theory/literature to support your discussion/observation and opinions.

Ensure that readings are not merely reproduced in the assignment without original critical comments and views.

In answering each question you should give attention to the structure of their answers. Each answer should begin with an introduction and end with a conclusion. Learners should also give attention to the logical structuring of their arguments so as to ensure the coherent flow of discussion.



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ASSIGNMENT 4: MANAGING STRATEGIC CHANGE DUE DATE: 11 FEBRUARY 2013 Read the extract below and answer QUESTION 1 Organisational Restructuring within the Royal Dutch Shell Group Executive Summary At the beginning of 2000, the Royal Dutch Shell Group was emerging from one of the most ambitious and far reaching organisational restructuring of its 93 year history. The restructuring had involved the shift from a geographically based to a business sector based structure, the elimination of over 1, 000 corporate positions, reshaping the corporate culture, the sale of much of the headquarters properties and the redesign of the system of coordination and control. The restructuring had been precipitated by the realisation that Shell would need to change the way it did business if it was to retain its position as the world’s largest petroleum company that offers an adequate return to shareholders in an increasingly turbulent industry environment. Brief History of the Royal Dutch Shell Group The Royal Dutch Shell Group is unique among the world’s oil majors. It was formed in the 19th century merger of the assets and operations of the Netherlands based Royal Dutch Petroleum Company and the British based Shell Transport and Trading Company. However the two parents remained legally separate corporations. It is the world’s biggest and oldest joint venture. Both companies trace their origins in the Far East. Marcus Samuel inherited a half share in his father’s seashell trading business. His business visits to the Far East made him aware of the potential for supplying kerosene from the newly developing Russian oilfields to large markets in China. At that time, August Kessler was leading a Dutch company to develop an oilfield in the Dutch East Indies. Due to fierce competition, the two giants ended up cooperating leading to the formation of a single Group, with Royal Dutch owing a 60% share and Transport and trading a 40% share (a ratio that has remained constant to this day). Shell’s organisation Structure and control Shell’s uniqueness stems from its structure as the largest organisation in the world, and due to its internationality it has been described as one of the worlds’ three largest international organisations, the other two being the Roman Catholic Church and the United Nations. However its organisational structure is more complex than either of the different companies that comprise the Royal Dutch Shell and their links of ownership and control, which shell refers to as governance responsibilities. The group’s structure may also be viewed from a management perspective; how is Royal Dutch Shell actually managed? Managerial control of the group was vested in the committee of managing directors (CMD), which forms the group’s top management team. The committee comprised of five Managing Directors. These were the three members Management Board of Royal Dutch Petroleum and the Chairman and the Vice Chairman of Shell Transport and Trading. The Chairmanship of the CMD rotated between the President of Royal Dutch Petroleum and the Managing Director of Shell Transport and Trading. The CMD provided the primary linkage between the formal structure and the management structure of the Group. It also linked together the two parent companies and the Group holding companies. The combination of diffused power at the top together with operating authority and financial responsibility dispersed through 244 operating companies meant that, compared with every other oil major, Shell was highly decentralised. However the technical and economic realities of the oil business limited the autonomy of each operating company. With the help of McKinsey & Company, Shell created a matrix structure within its service companies as a first step towards spearheading change. This structure was viewed as a critical ingredient of Shell’s ability to reconcile the independence of its operating companies with effective coordination of business, regional and



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functional commonalities. The three dimensions of the matrix were represented by the principal executives of service companies who were designated coordinators. Thus, the senior management team included the following:

Chairman

Vice Chairman

There other Managing Directors Forces for change and restructuring The world petroleum industry was transformed by a number of fundamental changes in the 21st century. The growing power of the producer countries was seen not just in the sharp rise in crude oil prices during the oil shock, but even more fundamentally in the nationalisation of the oil reserves of international majors. By the nineties, the list of the world’s top 20 oil and gas producers was dominated by the state owned companies and of late almost all the world’s oil majors underwent far reaching restructuring. Restructuring involved radical simultaneous changes in strategy and in organisational structure in compressed time frame. The key features of the restructuring by the oil majors were:

Reorientation of their goals around shareholder value maximisation

Greater selectivity in strategies

Cutting back on staff, especially at corporate level

Reducing excess capacity through closures of refineries and filling stations

Decentralisation of decision making from corporate to divisional levels

Delayering through eliminating administrative layers within hierarchical structures The Change process Within Shell, proponents of organisational change, including the heads of several of operating companies, the finance function, and the Group planning, had had little success in persuading the Committee of Managing Directors of the need for large scale change. Herkstroter, a Dutch accountant, who had spent his entire career at Shell, took over as Chairman of CMD; he was an unlikely pioneer of change. Fellow executives described him as private, Old World personality without much charisma, and with preference for written communication. Nevertheless, he was widely respected for his intelligence and courage. Faced with growing evidence of suboptimal financial performance and over complex, inward looking organisational structure, Herkstroter called a meeting of Shell’s 50 top managers. The meeting was a shock of the CMD. The request for frank discussion of the reasons for Shell’s lagging return on capital provided a series of barbed attacks on top management and sharp criticism of the service company organisations. The corporate centre was castigated for taking months to approve operating company budgets and for the general laxness of financial controls The New Shell Structure The central feature of the reorganisation plan meant the dismantling of the three way matrix through which the operating companies had been coordinated. In its place, four business organisations were created to achieve closer integration within each business sector across all countries. It was intended that the new structure would allow more effective planning and control within each of the of the businesses, remove much of the top heavy bureaucracy that had imposed a costly burden on the Group, and eliminate the power of the regional fiefdoms. The new structure would strengthen the executive authority of the CMD by providing clear line of command to the business organisations and subsequently to the operating companies.



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Changing Culture and Behaviour Changes to the formal organisational structure were only one dimension of the organisational changes of the period. If shell was to improve its operational and financial performance and improve its responsiveness to the multitude of external forces that impacted its many businesses, then change needed to go beyond formal structures. The change in culture proved to be a tall order for CMD. The criticism levelled at Shell for being bureaucratic, inward looking, slow, and unresponsive were not about organisational structure, and they were about behaviour and attitudes. In any organisational change, a new structure may provide the right context, but ultimately it is the effects on individual and group behaviour that are critical The Future As Royal Dutch Shell approached the second century of its corporate life, there was a clear consensus within the company that the organisational changes made had created a structure that was much better able to respond to the uncertainties and discontinuous changes that affected the oil industry. Outside the company, Shell watchers both in the investment community and in other oil companies had little doubt that the previous reorganisation had contributed substantially to the efficient management of the group. The former vice chairman of CMD outlined the way in which the changes in the organisation had impacted Shell’s business portfolio and its strategic management. The question in most people’s minds was whether Shell was moving ahead of the pack or playing catch up. For all Shell’s pride in being pioneer of modern management ideas from scenario analysis to organisation learning created in the previous years Source: Grant.R.M (2009) Contemporary strategic management case studies 6

th Edition

Question 1 (50) Shell’s uniqueness stems from its structure as the largest organisation in the world, and due to its internationality it has been described as one of the worlds’ three largest international organisations, the other two being the Roman Catholic Church and the United Nations. It is clear from the extract that organisation size and internationality of Shell presents potential challenges for top management. With reference to these reflections plus the use of relevant theory, critically discuss how Shell’s senior management could go about handling the following organisational development issues:

Strategic change/leadership (10)

Organisational change (10)

Corporate culture (10)

Resistance management (10)

Organisational transformation (10) Guide to presentation on question 1 should be in one continuous essay format showing the relevant subheadings on each bullet point.

Question 2 (25) Organisational conflict can arise within and outside the various units that comprise an organisation for many reasons. Identify an organisation that is deeply entrenched in both internal and external conflict matters and utilise relevant theories to critically analyse the sources of conflict and provide means through which managers can minimise such conflict. Question 3 (25) Identify an organisation you are familiar with that is currently going through change and using relevant theories, discuss the possible OD intervention strategies for the successful implementation of the change program.



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Assignment Format

Word Limit: Your assignment (excluding index, cover page and appendices) must not exceed 5000 words.

Your assignment should include a Table of Contents page.

Text: Font: Arial or Times New Roman (12), Spacing: 1½ lines


Your answers must include any theories, charts, tables or exhibits necessary to support your analysis and recommendations.

References - At least 5 sources of reference (textbooks, journals, press reports, internet, etc) must be included in your bibliography.

The Harvard system of referencing and a bibliography must be used.

Ensure that the readings are not merely reproduced in the assignment without original critical comments and views.

It is imperative that student’s proof-read and edit their assignments prior to submitting it. Assignments must be free from errors and of a professional standard.



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ASSIGNMENT 5: MANAGERIAL FINANCE DUE DATE: 25 FEBRUARY 2013

Question 1: Project evaluation (25) Continental Industries is a manufacturer of confectionery, based in Durban. It has recently merged with a flour refiner, Watsonia Flour Refinery. The accountants in the two companies have been discussing investment appraisal techniques. Continental Industries traditionally uses accounting rate of return and payback, while Watsonia has used net present value.

The discussion on appraisal techniques has now reached a crisis as a decision is required on a proposal to invest R3 600 000 on a new icing-coating machine in order to move into the biscuit market.

The financial details are as follows: Cost of plant

R 2 600 000

Import duty on plant

R 800 000 Installation cost

R 200 000

Economic life of plant

10 years

Net cash flows

Years 1 to 6 +R1 000 000 per year

Years 7 to 10 +R600 000 per year

Scrap value

R 1 000 000

The company uses straight-line depreciation and has a target rate of return for ARR of 20% and a payback criterion of five years. The cost of capital for projects of similar risk is 18%.

Ignore taxation and inflation.

(+) indicates positive cash flows

Required: 1.1 Calculate the ARR and state if it is acceptable or not.

4

1.2 Calculate the Payback period and state if it is acceptable or not.

4

1.3 Calculate the NPV and state if it is acceptable or not.

4

1.4 Irrespective of the answers above, formulate an investment decision report to the Chairman. 8

1.5 Assume a Discounted payback period of 5 years is required, will the project be accepted?

Show all calculations.

5



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Question 2: Mergers and Acquisitions (30) The directors of Seafood Industries are proposing a take-over bid for Fisheries Limited. Seafood will offer eight of its ordinary shares for every five ordinary shares of Fisheries Limited. The bid has not yet been made public.

The following are the summarised accounts of the two companies:

Statement of comprehensive income (Income Statement) for the year ending 31 December 2011:

Seafood

Fisheries

R'million

R'million

Turnover

2 260

362

Operating profit

230

31

Interest paid

80

12

Net profit before tax

150

19

Tax

50

7

Net profit after tax

100

12

Dividend

48

8

Retained income for the year

52

4

Statement of Financial Position (Balance Sheet) at 31 December 2011:

Non-current assets

1 266

118

Current assets

768

126

2 034

244

Owners' equity

444

110

Ordinary shares

150

40 Retained earnings

294

70

Non-current liabilities

628

34

10% Debentures: 2020

400

nil Long term loan: 2025

228

34

Current liabilities

962

100

2 034

244



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Additional information: * The current share price of Seafood is 451 cents (25 cents par) and Fisheries is 375 cents (50 cents par).

* Synergy benefits amount to R30 million.

* Latest financial results:

Seafoods

Fisheries

Dividend per share

8 cents

10 cents

Earnings per share

16.7 cents

15 cents

Required:

2.1 Calculate the P/E ratio for both the companies.

4 2.2 Calculate the exchange ratio offer made by Seafoods to Fisheries.

2

2.3 Would the shareholders of Fisheries be happy with this offer? Discuss.

3

2.4 Calculate the proposed combined earnings of the take-over.

3

2.5 Calculate the number of shares to be issued to Fisheries.

3

2.6 Calculate the total number of shares in the proposed take-over.

3

2.7 Calculate the proposed combined EPS.

3

2.8 Calculate the proposed combined share price.

3

2.9 Calculate the proposed combined P/E ratio.

3

2.10 Would the proposed take-over be an attractive offer to Fisheries? Discuss.

3

Question 3: Foreign Risk Management (10)

Assume the following:

Spot: €/$

187.50 - 192.40

1 month forward: 1.20 - 1.10 premium

3.1 What are the €/$ one month forward rates?

2

3.2 Is the American Dollar appreciating or depreciating against the European Euro?

2

3.3 What is the € cost of selling $350 000 at spot?

2

3.4 What is the $ receipt from the one-month forward sale of €3.5 million?

2

3.5 Assume the R/$ spot rate is 1.5280 and the €/$ spot rate is 1.6240, what is the €/R cross rate?

2



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Question 4: Gearing (35)

Blue Bay Industries wishes to raise R10 000 000 in external finance by issuing either ordinary shares, or 14% preference shares (nominal rate i.e. R1) or a 15% unsecured long term loan.

The current return on capital employed is 32.8% (one decimal place) and the share price is R2.90.

The following are the summarised financial statements:-

Statement of comprehensive income(Summarised Income Statement):

R'000

Turnover

45 320

Operating profit

11 170 Interest

2 280

Profit before tax

8 890 Tax (35%)

3 112

Earnings due to ordinary shareholders

5 778 Dividend

2 500

Retained earnings

3 278

Statement of Financial Position(Summarised Balance Sheet):

Non-current assets

24 260 Net current assets

9 760

Current assets

28 130 Less current liabilities

18 370

34 020

Shareholders' funds

22 020 Ordinary shares (50c par value)

5 000

Share premium

4 960 Retained earnings

12 060

Debentures 19%, due 2020

12 000

34 020

Additional information:

* The new investment will generate constant returns. * New shares to be issued at a discount of 40 cents per share.

* The company follows a policy of paying a constant dividend. * Tax 35%, calculate to the nearest whole figure, e.g. R3 111.5 to R3 112



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Required:

4.1 Calculate the additional operating profit that the new investment will generate. 3

4.2 Calculate the current earnings per share.

2

4.3 Calculate the current gearing. (Use non-current liability for the debt)

2

4.4 Calculate the revised EPS and gearing using ordinary share financing.

6

4.5 Calculate the revised EPS and gearing using preference share financing.

6

4.6 Calculate the revised EPS and gearing using long term loan financing.

6 4.7 Prepare a report, with supporting evidence, recommending which of the three financing sources the company should use. (industry favours an average gearing level of 40% due to the poor economic climate)

10

Assignment Format

Your assignment should include a Table of Contents page. Start each solution on a new page.

Text: Font: Arial or Times New Roman (12), Spacing: 1½ lines.


Number each solution according to the numbering in assignment handbook.

Your answers must include any theories, charts, appendices, tables or exhibits necessary to support your analysis and recommendations.

You may use a spreadsheet (e.g. Microsoft excel) to assist you only in the construction of tables and the drawing of graphs.

Solutions generated by software packages will not be marked.

No marks will be awarded if only the final answers are given. All relevant working must be shown.

All calculations must be done using the appropriate formulae.

The Harvard System of referencing must be used if documents, literature and data (excluding formulae) other than that provided in the assignment question are used.



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ASSIGNMENT 6: MANAGEMENT SCIENCE (ELECTIVE) DUE DATE: 11 MARCH 2013 Question 1 (25) A company, set up to conduct geological explorations of parcels of land in order to ascertain whether significant metal deposits (worthy of further commercial exploitation) are present or not, has an option to purchase outright a parcel of land for $3m. If the company purchases this parcel of land then it will conduct a geological exploration of the land. Past experience indicates that for the type of parcel of land under consideration geological explorations cost approximately $1m and yield significant metal deposits as follows: manganese 1% chance gold 0.05% chance silver 0.2% chance

Only one of these three metals is ever found (if at all), i.e. there is no chance of finding two or more of these metals and no chance of finding any other metal. If manganese is found then the parcel of land can be sold for $30m, if gold is found then the parcel of land can be sold for $250m and if silver is found the parcel of land can be sold for $150m. The company can, if it wishes, pay $750,000 for the right to conduct a three-day test exploration before deciding whether to purchase the parcel of land or not. Such three-day test explorations can only give a preliminary indication of whether significant metal deposits are present or not and past experience indicates that three-day test explorations cost $250,000 and indicate that significant metal deposits are present 50% of the time. If the three-day test exploration indicates significant metal deposits then the chances of finding manganese, gold and silver increase to 3%, 2% and 1% respectively. If the three-day test exploration fails to indicate significant metal deposits then the chances of finding manganese, gold and silver decrease to 0.75%, 0.04% and 0.175% respectively. 1.1 With the aid of a decision tree, prepare a report advising the company on the optimal decision. (22)

1.2 Another company working in a related field is prepared to pay half of all costs associated with this parcel

of land in return for half of all revenues. Under these circumstances what would you recommend the company should do and why? (3)



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Question 2 (35) A travel agent is planning a charter trip to a popular sea resort. The 10-day, 9-night package includes the fare for the round-trip travel, surface transportation, board and lodging and selected tour options. The charter trip is restricted to 300 persons and past experience indicates that there will be no problem in getting 300 people. The problem for the travel agent is to determine the number of Deluxe, Standard and Economy packages to offer for this charter. These three plans each differ according to the seating and service on the flight, quality of accommodation, meal plans and tour options. The following table summarizes the estimated price for the three packages and the corresponding expenses for the travel agent per person. The travel agent has hired an aircraft for a flat fee of $250000 for the entire trip. In planning the trip the following considerations must be taken into account: 1. At least 10% of the packages must be of the deluxe type.

2. At least 35% but not more than 70% must be of the standard type

3. At last 30% must be of the Economy type.

4. The maximum number of deluxe packages available in any aircraft is restricted to 100.

5. The hotel desires that at least 150 tourists should be on the deluxe and Standard packages together. Required: Use the simplex method to determine the number of packages to offer in each type so as to maximize profits. Question 3 (40) A retailer with several outlets that sell household appliances in large volumes, is planning to introduce a computer system with point of sales terminals in order to computerize wages, control stock and centralize accounting records. The company is considering employing programmers to develop the wage and accounting programs, while the stock-control program will be developed by outside consultants. Certain aspects of the stock-control program have been completed. (Continuation of Question 3 on following page)

Tour Plan Price ($)

Hotel Costs ($)

Meals and other Expenses ($)

Deluxe 10000 3500 4500

Standard 7500 2500 3000

Economy 6500 2000 2500



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The management accountant and the newly appointed data-processing manager compile the following list of activities to be carried out in order to introduce the computerization (durations in days):

It is envisaged that the computer systems, through improved stock control etc., will result in a saving of R1000 per day. 3.1 Draw a simple network diagram of the above project. (5) 3.2 Prepare an activity schedule, in tabular form, giving the early-start, early-finish late-start, late-finish and

slack times. (15) 3.3 Determine the critical path and the normal completion time for the project. (2) 3.4 Advise management of the maximum benefit that can be derived by introducing the computer system sooner than in normal completion time. (Indicate the procedure to be followed, what the benefit will be and how long it will take to put the computer system in operation.) (18)

Activity Description Predecessor(s) Normal

Duration Minimum Duration

Cost to decrease completion time (R)

A Analyze alternative computer systems and place order

- 60 60 -

B Wait for delivery of computer A 90 75 7500

C Appoint computer programmers

A 20 10 2500

D Do preliminary development of wage program

C 45 40 4000

E Do preliminary development of accounting program

C 75 60 11250

F Finalize accounting and wage programs.

D, E 50 45 1500

G Appoint consultant to develop stock-control program

A 15 10 1000

H Do preliminary development of stock-control program

E, G 60 40 12000

I Finalize stock-control program F, H 30 25 7500

J Install and test computer hardware

B 15 10 5000

K Test and debug programs F, I , J 25 20 6250

L Prepare manuals for accounting and wage systems

F, H 20 15 4500

M Prepare manuals for stock-control system

I 10 10 -

N Train personnel L, M 20 20 -

O Implement systems K, N 25 15 10000



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Assignment Format

Start each solution on a new page.

Text: Font: Arial or Times New Roman (12), Spacing: 1½ lines. All text must be justified at each margin.



A spreadsheet (eg. Microsoft Excel) may be used only for the purposes of setting up tables, drawing of graphs and so forth. All solutions must be clearly shown through the use of appropriate formulae and substitution.



It is not necessary to provide references or a bibliography. Simply number each solution according to the numbering in assignment handbook.

NOTE: This instruction applies only to MANAGEMENT SCIENCE and not to the other modules.



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ASSIGNMENT 6: BUSINESS & PROFESSIONAL ETHICS (ELECTIVE) DUE DATE: 11 MARCH 2013 SECTION A: EXTRACT [60] Read the extract below and then answer all the questions that follow: Why Business Ethics? An immense concern for business should be the fact that unethical and immoral activities are not confined to mafia-type gangsters and drug lords, but such unsavoury activities also occur in legitimate business organizations and government. Business worldwide, therefore, faces specific ethical issues and dilemmas around various omissions and commissions in business activity that involves business institutions, government and society. Issues of relationships between business and government, and business and society, constantly arise. There is a marked focus on moral problems and choices and on the process and nature of moral decision-making. Questions arise on the nature of business culture and the role that ethical and professional codes can play, especially when existing laws and law-enforcement agencies are perceived to be ineffective. As we realise that more and more of you are or will be engaged in business at various levels, it will be very important for you to be equipped with the necessary “tools” for critical thinking and moral/ethical analysis in order to operate as effectively as possible in our new democratic environment. To this end, it is hoped that this elective will prove attractive and valuable to students concerned about business ethics and who wish to pursue directions that will enable them to deal with ethical issues in business. Consideration of business ethics has become entrenched in business, in business schools, and in wider Southern African society and internationally. There is no denying the importance of ethics for global corporate future. The current business scenario of the world presents a depressing array of issues, which have serious negative effects on business. These include inter alia fraudulent identity documents, theft of a wide variety , fraud in relation to medical schemes, nepotism, vast amounts owing to Revenue offices by jet-setting millionaires and billionaires, unauthorized personal expenses by people occupying top positions this reflecting basic greed and dishonesty, high consumerism projecting images of unlimited luxury, avalanche of corporate scandals some of which can even question the legitimacy of the US being regarded as an economic power over decades. All this indicates the low priority given to ethical standards in business, to a downward trend in morality and a steady slipping into moral decay and weakening of human values. Everyone agrees that business managers must understand finance and marketing. But is it necessary for them to study ethics? Managers who answer in the negative generally base their thinking on one of three rationales. They may simply say that they have no reason to be ethical. They see why they should make a profit, and most agree they should do so legally. But why should they be concerned about ethics, as long as they are making money and staying out of jail? Other managers recognise that they should be ethical but identify their ethical duty with making a legal profit for the firm. They see no need to be ethical in any further sense, and therefore no need for any background beyond business and law.



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A third group of manager’s grant that ethical duty goes further than what is required by law. But they still insist that there is no point in studying ethics. Character is formed in childhood, not while reading a college text or sitting in class. Source: Adapted from web.tepper.cmu.edu/ethics/whybizethics

Question 1 (30) Is it necessary for boards and managers of company’s to study and understand the fundamentals of business and professional ethics? With reference to the case extract and literature studied critically analyse whistle-blowing from the various ethical theoretical viewpoints of Utilitarianism, Deontology and Consequentialism. Question 2 (30) The Board of Directors has an obligation to direct and control the risk of companies. These arguments are confused and mistaken on several levels. With reference to why should business people be ethical? Refer to the case extract and relevant literature studied discuss a Board’s responsibilities with regard a shift from the singular (financial) bottom-line reporting to triple bottom-line reporting. SECTION B: Answer all of the questions in this section Question 3 (10) There is constant interaction between marketing and sales managers and customers and consumers within the variety organisation. Critically analyse how do pervasive criticisms impact on the 4 Ps of Marketing? Question 4 (10) A matter of concern is the situation of high crime rate and violence in South Africa and the rights of victims and those of perpetrators. Critically analyse rights in this regard. Question 5 (10) Briefly discuss the Ten Commandments of Computer Ethics and elaborate on your understanding of each. Question 6 (10) Briefly discuss those ethical issues that surround doing business via the internet. Assignment Format

Word Limit: Your assignment (excluding index, cover page, list of references and appendices) must not exceed 6000 words.





References - At least 10 sources of reference (textbooks, journals, press reports, internet, etc) must be included in your list of references.

The Harvard system of referencing must be used.

You MUST use theory/literature to support your discussion/observation and opinions. Do not merely extract information from the Case Study.




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ASSIGNMENT 6: INVESTMENT & PORTFOLIO MGT (ELECTIVE) DUE DATE: 11 MARCH 2013

Read the case study below and answer all the questions 1 and 2 that follow:

Investment property portfolio management and financial derivatives by Patrick McAllister and John R Mansfield Derivatives have been an expanding and controversial feature of the financial markets since the late 1980s. They are used by a wide range of manufacturers and investors to manage risk. Along with other financial innovations, including securitization, attempts have been made to introduce derivative products to the commercial property market. This first paper examines a number of issues related to the use of derivatives in property portfolio management. The basic types of derivatives are described and explained and their characteristics and potential benefits to property portfolio investment management are discussed. In order to appreciate the potential advantages and uses of derivative products, it is necessary to first consider the main problems of direct property investment Problems of direct property investment Attempts to introduce securitised and derivative instruments into the commercial property market have taken place in the context of disinvestment in the direct property market by the major investing institutions. The problems of investment in direct property have been well documented. The key issue of lack of liquidity relative to the other major investment media is widely recognised, and is due to:

• Large lot size; • High transaction costs; • Thin markets; • No central marketplace; and • Delay for legal work. The problem is exacerbated during market downturns when sharp drops in the volume of transactions reflect a decrease in liquidity. The problem of relative illiquidity has far reaching implications for the attractiveness of property as an asset class. Illiquidity reduces the investor’s ability to switch between property and other asset classes. It similarly restricts the investor’s ability to restructure the property portfolio in response to changing perceptions of sectoral and geographical performance potential thus limiting the possibilities for tactical asset allocation. More indirectly, illiquidity relative to the other major asset classes reduces the investor’s ability to apply formal portfolio and liability modelling theory to property portfolio investment decisions. The result is that all but the largest institutions engaged in direct property investment tend to be exposed to a high degree of specific risk and place great importance on the stock selection skills of the fund managers. For smaller investing institutions, the “lumpy” nature of property may make it prohibitively expensive to diversify efficiently and disrupt attempts to track a market index. The issue of index tracking is important as fund managers are increasingly judged on the performance of the portfolio relative to a benchmark. For many funds a degree of “closet tracking” may take place as portfolio managers are unwilling to risk moving substantially away from conventional weighting of portfolios. It will be argued that many of the derivative instruments overcome the two key limitations of:

• The inability to adjust the investment portfolio quickly in response to changing market conditions; and • The inability of many institutional investors to track the market and the consequent exposure to specific risk. However, research suggests that more investors are still attracted to property because of its perceived diversification benefits and its potential for long-term performance. Source: McAllister, P., and Mansfield, J.R. (1998) Investment property portfolio management and financial derivatives: Paper 1, Property Management, Vol. 16 Issue 3 pp. 166-169



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Question 1 (20) In the article above McAllister and Mansfield (1998) argue that derivative instruments play a vital role in the economy and are very useful to the investment community. In the light of the above article critically discuss the various derivatives and their applications. Question 2 (20) 2.1 What will be the proceeds and net profits to an investor who purchases the March maturity of Mbabane

Properties calls with exercise price of R22.50 if the stock price at maturity is R25? What if the stock price at maturity is R20? (3)

2.2 What would you tell an investor who purchases a March maturity Mbabane Properties put option with

exercise price of R22.50? (3) 2.3 Suppose that Mbabane Properties’ stock price at the exercise date is R25, and the exercise price of the call

is R22.50. What is the payoff on one option contract? After a 2 for 1 split, the stock price is R12.50, the exercise price is R11.25, and the option holder now can purchase 200 shares. Show that the split leaves the payoff from the option unaffected. (3)

2.4 Consider these four option strategies: ( i ) buy a call; (ii) write a call; (iii) buy a put; (iv) write a put.

2.4.1 For each strategy, plot both the payoff and profit diagrams as a function of the final stock price. (4) 2.4.2 Why might one characterize both buying calls and writing puts as “bullish” strategies? What is the difference between them? (4) 2.4.3 Why might one characterize both buying puts and writing calls as “bearish” strategies? What is the difference between them? (3)

Question 3 (20) Read the case study below and answer all the questions that follow: The availability and increasing popularity of new risk measures to manage interest rate risk in fixed income portfolios emphasize the importance of comparing them to classic interest risk measures to validate their advantages. It is important to note that the practice of maximizing convexity does not always imply a CVaR optimization, since finding the most convex portfolio is not equivalent to finding the minimum CVaR portfolio. Regarding the instrument structure, it is possible to conclude that portfolios containing bonds with higher coupons. There is an absence of relationships between those portfolios optimized by classic measures and those optimized by modern measures. Modern measures collect historical interest rate behaviour; in contrast, dispersion measures assume that the variations in interest rates are not parallel, even though parallel movements can be possible in real life. Bond portfolios composed of lower yield volatility instruments are most desirable when modern measures are used to minimize risk. In addition, when the optimization is made using VaR, the resulting portfolios differ significantly among them, according to the chosen confidence level, whereas when using CVaR, the results show much higher stability. Source: Miguel Angel Martin Mato, (2005), Classic and Modern measures of risk in fixed-income portfolio optimization, The Journal of Risk Finance, Vol. 6 Issue 5, pp.416-423

In the light of the above article, discuss the various strategies that bond managers can follow in managing fixed income securities including bond portfolio management.



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Question 4 (20) 4.1 If only some investors perform security analysis while all others hold the market portfolio (M), would the

CML still be the efficient CAL for investors who do not engage in security analysis? Explain. (5) 4.2 Historical data for the S&P 500 Index show an average excess return over Treasury bills of about 7.5% with

standard deviation of about 20%. To the extent that these averages approximate investor expectations for the sample period, what must have been the coefficient of risk aversion of the average investor? If the coefficient of risk aversion were 3.5, what risk premium would have been consistent with the market’s historical standard deviation? (4)

4.3 Suppose the risk premium on the market portfolio is estimated at 8% with a standard deviation of 22%.

What is the risk premium on a portfolio invested 25% in GE with a beta of 1.15 and 75% in Dell with a beta of 1.25? (4)

4.4.1 Stock XYZ has an expected return of 12% and risk of β = 1.0. Stock ABC is expected to return 13% with a

beta of 1.5. The market’s expected return is 11% and r f = 5%. According to CAPM, which stock is a better buy? What is the alpha of each stock? Plot the SML and the two stocks and show the alphas of each on the graph. (3)

4.4.2 The risk-free rate is 8% and the expected return on the market portfolio is 16%. A firm considers a

project with an estimated beta of 1.3. What is the required rate of return on the project? If the IRR of the project is 19%, what is the project alpha? (2)

4.5 Suppose the risk premiums is E ( r m) – r f = 4% and E (R t b) – r f = 2%. What would be the equilibrium

expected rate of return on Northeast Airline? (1) 4.6. Using the following factor portfolios i.e. portfolio 1= 10%, portfolio 2 = 12%, find the fair rate of return on

a security with β1 = 0.2 and β2 = 1.4 (1) (20) Question 5 (20) 5.1 You expect the price of IBX stock to be $59.77 per share a year from now. Its current market price is $50,

and you expect it to pay a dividend 1 year from now of $2.15 per share. 5.1.1 What is the stocks’ expected dividend yield, rate of price appreciation, and holding period return? (1) 5.1.2 If the stock has a beta of 1.15, the risk-free is 6% per year, and the expected rate of return on the market

portfolio is 14% per year, what is the required rate of return on IBX stock? (1) 5.1.3 What is the intrinsic value of IBX stock, and how does it compare to the current market price? (2) 5.2.1 IBX’s stock dividend at the end of this year is expected to be $2.15, and it is expected to grow at 11.2%

per year forever. (2) 5.2.2 If the required rate of return on IBX stock is 15.2% per year, what is its intrinsic value? (2) 5.2.3 If an investor were to buy IBX stock now and sell after receiving the $2.15 dividend a year from now,

what is expected capital gain (i.e., price appreciation) in percentage terms? What is the dividend yield, and what would be the holding period return? (2)



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5.3.1 Calculate the price of a firm with a plowback ratio of 0.60 if its ROE is 20%. Current earnings, E1, will be $5 per share, and k= 12.5%. (2)

5.3.2 What if the ROE is 10%, which is less than the market capitalization rate? Compare the firm’s price in this

Instance to that of a firm with the same ROE and E1, but a plowback ratio of b= 0. (2) 5.4.1 ABC stock has an expected ROE of 12% per year, expected earnings per share of $2, and expected

dividends of $1.50 per share. Its market capitalization rate is 10% per year. What are its expected growth rate, its price, and its P/E ratio? (2)

5.4.2 If the plowback rate were 0.4, what would be the expected dividend per share, the growth rate, price,

and the P/E ratio? (2) Assignment Format

Your assignment should include a Table of Contents page. Start each solution on a new page.




You may use a spreadsheet (e.g. Microsoft excel) to assist you only in the construction of tables and the drawing of graphs.



All calculations must be done using the appropriate formulae.

The Harvard System of referencing must be used if documents, literature and data (excluding formulae) other than that provided in the assignment question are used.



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ASSIGNMENT 6: ENTREPRENEURSHIP (ELECTIVE) DUE DATE: 11 MARCH 2013 Read the case study below and answer the questions that follow: PIPING HOT DOGS: 1901 HOT DOGS Looking out of her office window, Rozidar is deep in thought with many things playing in her mind; a mix of the journey so far on the local front, building the young entrepreneurs, and the ever-more-attractive foreign markets keeps appearing in her thoughts as she ponders. The last 12 years have not been a bed of roses and she cannot count the times that she and Zakir had to fight against the odds when they first ventured into the food business. Rozidar would love to see all her franchisees successful under 1901 Hot Dog – that is the legacy that she wants to leave behind. In the 12 years since 1901 Hot Dog started, Rozidar has indeed been happy with the its performance, but deep down inside, she knows that being successful on the local front may no longer be sufficient, as day by day the local fast food industries are undeniably getting more competitive. As she flips through the report of the just-completed fiscal year, Rozidar is concerned about 1901 Hot Dog's future course of action. When Rozidar, the founder of Nineteen O One Sdn. Bhd., initially started her business; it never crossed her mind that this business of selling sausages using pushcarts would turn out to be so successful. In fact, she made the right decision when choosing to go on with this franchising business as franchising in Malaysia has shown dramatic growth and has become one of the most favoured ways to go into business. Moreover, with the extensive encouragement of the Malaysian Government in the development of the franchise sector, 1901 is now seen as one of those success stories of a locally produced brand. Having graduated with a Masters of Arts in International Relations, Rozidar landed her dream job as journalist for Radio and Television of Malaysia. Rozidar could have stayed on as a television broadcast journalist, and become a lecturer serving academia and enjoying life at the same time. However, she eventually decided to leave her glamorous career to go into the food business with almost no experience and – as in the common phrase, “Ignorance is bliss” – she and her husband Ahmad Zakir Jaafar simply did it without fear. This dynamic lady probably inherited her strong will power from her mother whom she regards as her role model and who instilled unwavering disciplined behaviour even at young age. These strong values that were upheld to this day have turned her into someone full of determination and perseverance. The idea of 1901 cropped up during a return trip from the USA; Rozidar and Zakir became fascinated with the hot dog business in the USA where it was common for people to sell hot dogs from a pushcart on the streets. They decided that the same idea could be used in Malaysia as the hot dog is simply loved by all – and that includes Malaysians. Backed by a mere RM100,000, Rozidar saw herself moving from buying haute couture to shopping at cheap sales, a total lifestyle change. She has transformed from a class-conscious lady to one who is willing to invest all her personal savings, dive into the business that she is very passionate about, and be satisfied with a life of simplicity. A person who believes in being personally hands on, Rozidar spent most of her time selling hot dogs at the first few 1901 Hot Dog outlets, as she felt her presence would be evidence of her commitment towards her customers. Those who know her would say that Rozidar is a very versatile lady as she often does all the planning based on her own creativity. She used the services of a graphic designer to develop the logo for her fast food company but all other elements of the business arise simply from her own creativity; that includes the recipe for the hot dogs, which emphasizes quality ingredients. 1901 Hot Dog uses a fast food franchise concept to spread its wings. It offers franchisees a complete business format, with reasonable set-up cost and a relatively easy and simple to manage business model. The simplicity of its operation requires only one person to handle a pushcart, which is usually strategically located and supported by a strong corporate identity. Since preparation is based on the steaming concept, the entire process of making hot dogs is smoke-free and thus eases the maintaining of cleanliness, which was one of their



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utmost priorities. Furthermore, the founder of 1901 Hot Dog stresses using only quality ingredients in the making of their hot dogs, such as chicken breast meat, and prime beef cuts, and no mechanically de-boned meat is used. The company has a belief that only quality products should be purchased by their customers and it is not unusual for them to go all out to ensure that all ingredients are of high quality including even the vinegar. As the company strove to maintain the quality of their hot dogs, a lot of money was thrown into ensure that sufficient research and development was carried out, along with lots of ongoing discussion on ways to enhance the nutritional value and convenience to the public of 1901's hot dogs. Moreover, all their staff undergoes a series of intensive and comprehensive in-house training sessions to equip them with the necessary operational skills and excellent customer service. It is of utmost importance, according to this CEO (who believes in “hands on management”), for the company to maintain consistency in the quality of products served in all their outlets. 1901 Hot Dog is very concerned about quality and consistency in delivering its products to customers. The company strives to maintain a low unsold product – ideally not more than 3 per cent at all 1901 outlets – as this minimizes cost and maintains food quality. Rozidar constantly has in the back of her mind the issue of quality which she regards as the means to counter competition. She realizes that in the food business, quality is not merely related to taste but also to the ability to meet the standards in food preparation and presentation. In fact due to intense competition, the company has resorted to a higher level of innovation through extensive investment in research and development, so that newer products with further enhanced quality and more creative food presentation can be offered. Through its competitive pricing strategy, 1901 Hot Dog offers a very competitive price for undertakers of its franchise programmes compared to other more established brands where initial investment ranges from RM15,000 to RM 300,000, depending on whether it is a pushcart, kiosk or diner; 1901 claims this is the lowest start-up cost compared to other foreign franchises which can cost RM500,000 and above. At the same time, the increase in the number of fast food chains in Malaysia – including those which had already been established for quite some time, such as Dunkin' Donuts, KFC, McDonald's, Pizza Hut, Domino's Pizza, Auntie Anne and A&W – provides 1901 Hot Dog with no other choice but to change for the sake of survival. In order to achieve this, the company decided to find out what customers really want by carrying out an audit to assess the performance of its current operations. This effort highlighted the importance of having quality service in delivering their products to customers in an environment where a level of efficiency is expected by every customer. By cutting costs through the purchasing of ingredients in bulk for its outlets, 1901 has been able to survive the current economic situation and further develop its brand and franchise business. The founders of 1901 Hot Dog have set their minds to at least be able to assist those who wish to become entrepreneurs like them, and therefore doing big business is not their main goal. Instead, the mission of 1901 Hot Dog is to become a franchisor that is able to build good and trusted relationship with its franchisees. Rozidar and Zakir say that they often heard complaints from franchisees that franchisors (especially foreign fast food chains) did not understand their needs and would dictate rather than listen to what they have to say. This often led to failure of franchisees to carry on with their business. Rozidar and Zakar strongly believe that since 1901 is a Malaysian-based company, any lack of understanding of the local franchisees needs can be easily resolved. The attractiveness of 1901 Hot Dog also lies in the fact that most of its franchisees are owner-operators themselves, which gives the company a plus point compared to other more established franchise chains. The company tries to ensure that it chooses franchisees who are dedicated to the business and who will regard other franchisees of 1901 as their partners, so that knowledge sharing will become natural among them. This will then strengthen the franchise even further as when franchisees are successful, they generate a steady income for 1901 Hot Dog.



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Franchising will be the biggest income generating source for the company in the future. In fact, according to internal sources, approximately 60 per cent of 1901's overall turnover is contributed by their franchisees. The company recorded excellent growth and an estimated annual turnover of RM 45 million for the year 2008. Owing to its exceptionally robust sales response, 1901 Hot Dog has become one of the country's most successful franchise business and the leading hot dog franchise in the country. Its success is evidenced by the fact that the company receives at least 30 enquiries on a daily basis, with at least four applications each week from potential franchisees.1901 Hot Dog was awarded the Superbrand status two years in a row, and the achievement and success of this company as a local hot dog brand is indeed commendable. The dynamism of 1901 Hot Dog can be seen in the attitude of Rozidar and Zakir as the founders of the company. They believe strongly in the importance of “continuous improvement” as an entrepreneur. They continually seek ways to improve and be more competitive in the food franchise industry; for this couple, since the fast food franchise industry is so dynamic it is difficult for them to catch up with trends if they are not conscious of changes that are taking place in the industry. As entrepreneurs, they regularly attend seminars to broaden their knowledge as well as share it. Could the joy of watching others grow successfully through her franchise programme ever come to pass? Rozidar is determined to go all out to convert her dream into reality. A sudden ringing of the phone interrupts her concentration, bringing the news that she will be signing a memorandum of understanding with Alkanaah Trading Corporation, incorporated in Saudi Arabia as a master franchise for that country. Rozidar has a big smile on her face as she listens to the conversation on the phone and learns Alkanaah plans to open 15 hot dog outlets all over Saudi Arabia within the next seven years. After a moment of silence, Rozidar is playing with her thoughts again as she envisions going into the world's smallest continent but largest island – Australia! Adapted from: http://www.emeraldinsight.com

Question 1 (25) The entrepreneur is the galvanizing force behind the venture, blending opportunity, resources and the organisation to produce something new or distinctive in the marketplace. In the light of this statement, critically analyse Rozidar the franchisor, as an entrepreneur. Illustrate your answer with an appropriate diagram. Question 2 (55) Rozidar will be signing a memorandum of understanding with Alkanaah Trading Corporation, incorporated in Saudi Arabia as a master franchise for that country. Alkanaah plans to open 15 hot dog outlets all over Saudi Arabia within the next seven years. Prepare a comprehensive business plan for Rozidar’s envisaged expansion. Note: Use hypothetical data in the preparation of your plan to supplement the case study information Question 3 (20) “Strategy can be defined as the direction an organization intends to take in the future mindful of its context, resources, purpose and objectives”. Using this theoretical guide, prepare a report advising Rozidar on the key issues that need to be focused on when developing growth strategies for 1901 Hot Dogs.

http://www.emeraldinsight.com/



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Assignment Format










Whilst learners are expected to read widely with respect to the theoretical framework, they must restrict themselves to using only the case study facts presented, except for the preparation of the business plan, where the learner is expected to supplement the case study with hypothetical data, where necessary.



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ASSIGNMENT 6: ENVIRONMENTAL MANAGEMENT (ELECTIVE) DUE DATE: 11 MARCH 2013 SECTION A: CASE EXTRACT Read the extract below and then answer all the questions that follow. The Challenge of Environmental Ethics Suppose that putting out natural fires, culling feral animals or destroying some individual members of overpopulated indigenous species is necessary for the protection of the integrity of a certain ecosystem. Will these actions be morally permissible or even required? Is it morally acceptable for farmers in non-industrial countries to practice slash and burn techniques to clear areas for agriculture? Consider a mining company which has performed open pit mining in some previously unspoiled area. Does the company have a moral obligation to restore the landform and surface ecology? And what is the value of a humanly restored environment compared with the originally natural environment? It is often said to be morally wrong for human beings to pollute and destroy parts of the natural environment and to consume a huge proportion of the planet's natural resources. If that is wrong, is it simply because a sustainable environment is essential to (present and future) human well-being? Or is such behaviour also wrong because the natural environment and/or its various contents have certain values in their own right so that these values ought to be respected and protected in any case? These are among the questions investigated by environmental ethics. Some of them are specific questions faced by individuals in particular circumstances, while others are more global questions faced by groups and communities. Yet others are more abstract questions concerning the value and moral standing of the natural environment and its nonhuman components. Source: Adapted from http://www.plato.stanford.edu./entries/ethics

Question 1 (25) Environmental ethics is important to ensuring sustainability in a community environment. Sustainable Development, as defined by the Brundtland Commission, is “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” With reference to the case extract and literature studied critically analyse:

1.1 The stages on the path to becoming sustainable and give examples that relate to your understanding of each stage. (15)

1.2 The Model’s of Sustainability. (10) Question 2 (15) Without legislation, it is likely that sound environmental management practices would not be implemented by many organisations, which would ultimately lead to the rapid degeneration of the environment. With reference to the case extract and literature studied briefly discuss Environmental Ethics and Environmental Law in South Africa. Question 3 (20) Creating an environmental management system (EMS) might seem like an overwhelming task for an organisation. With reference to environmental ethics referred to in the case extract and from the literature studied discuss the EMS Process, the elements comprising of an EMS, return on Investment from EMS and the potential risks of EMS’s.



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SECTION B: Answer all of the questions in this section Question 4 (15) To ensure maximum impact, it is important that organisations give sufficient attention to the conceptualisation and design of their energy efficiency action plan. Discuss what action plan can be implemented to improve organisational energy efficiency? Questions 5 (25) If used correctly, EIA can be a powerful design tool, decision making tool and information provision tool. Provide an outline for the Environmental Impact Assessment (EIA) process and discuss in detail the most important phases when conducting an EIA. Assignment Format

Word Limit: Your assignment (excluding index, cover page, list of references and appendices) must not exceed 6000 words.





References - At least 10 sources of reference (textbooks, journals, press reports, internet, etc) must be included in your list of references.

The Harvard system of referencing must be used.

You MUST use theory/literature to support your discussion/observation and opinions. Do not merely extract information from the Case Study.




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ASSIGNMENT 6: PROJECT MANAGEMENT (ELECTIVE) DUE DATE: 11 MARCH 2013 Read the extract below and then answer all the questions that follow: A University Accounting System A large University embarked on a project to develop a new accounting system. Though a budget baseline was earmarked, the project manager understood that this was a priority project for the University and cost was not going to be a major constraint so he did not bother to spend much time on cost estimating or budgeting. Essentially money was spent as needed and sourced from wherever it is available, though he tried to remain very prudent in spending. For example, a new computer system was ordered and the project manager had to confirm the cost on delivery and started running around to get the funds. At some point both the initial project manager and the senior manager who was acting as the project sponsor were redeployed to other assignments, so another project manager was appointed and he had to identify another senior manager to take responsibility for the project. This cycle was repeated more than twice again and at a point all the senior managers in the University seemed to be too busy to take charge of the project. The project manager then had the additional responsibility of mobilizing funds and resources for the project. When the project was nearing implementation stage, the project team was moved into a new office space which turned out not to be fully equipped and remained like that for the next five months. This greatly disrupted the preparations for the implementation. The last project manager however, decided to stick to the original due date though it looked non-feasible because of the various delays that had affected the project. Some of the senior managers too were of the opinion that the “go live” date is no longer realistic. The project manager felt that because of the tortuous trajectory of the project, the only way to restore its integrity was to meet the deadline. So he decided to cut out some activities that he felt were dispensable, like drawing up of an alternative procedure for users in case of system failure. Finally, the project was commissioned on the original due date. However, the system did not work for the first six weeks and when it finally started to work; its performance was marked with numerous hiccups. The absence of alternative procedures for administrative staff to follow imposed a lot of strain on these staff. Ultimately, several months later it was seen as “failing to do what it was supposed to do‟, and as “unreliable”. This failure led to a major investigation which concluded that basic project management procedures had not been followed and that it would take at least 2 years to put things right. It was also pointed out that it was a series of smaller oversights and failures that led to a catastrophic failure of the system as a whole, because of the interdependent nature of the tasks and responsibilities in the project. Recommendations from the investigation into the failure invited the University to restructure the IT services team, develop and implement an Information Systems Strategy for the university, introduce monitoring procedures for IT development projects, instigate formal procedures for employing external consultants and improve communication and build trust between the academic and administrative communities. Adapted from: http://www.jiscinfonet.ac.uk/InfoKits/infokit-related-files/project-failure

http://www.jiscinfonet.ac.uk/InfoKits/infokit-related-files/project-failure



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Question 1 (40) 1.1 Outline the major problems as described in the case study. (10) 1.2 As a project manager, detail and discuss the project management lessons learnt for each of the major

problems identified. (25) 1.3 Two staff members who just concluded a MANCOSA project management course were having a discussion

during lunch and one of them mentioned that though the project supported the University’s business strategy, he would never agree to take up the project because it did not have a signed project charter but the other held a contrary view. He believed that since the project clearly supported the University strategy, it is a valid, recognized project.

If it were true that it did not have a signed project charter, 1.3.1 Which of the two opinions will you align with and why? (2) 1.3.2 Can you recognize any impact of the lack of a project charter in the project scenario as described? (3) Question 2 (20) 2.1 A major company that you are working for, has a planning group that prepares budgets (with the help of

functional groups) and selects the projects to be completed within a given time period. You are assigned as a Project Manager on one of the projects and found out that it should have started “last month” in order to meet the completion date. What can you, the project manager, do about this? Should you delay the start of the project to re-plan the work? Discuss. (10)

2.2 Functional Managers would make good Project Managers.” Do you agree or disagree with the statement

being made. Substantiate your view. (10) Question 3 (20) 3.1 Perform a financial analysis for the following project. The projected cost and benefits are spread over four

years as follows: Estimated costs are R100, 000 in Year 1 and R25,000 each year in Years 2,3 and 4. Estimated benefits are R0 in Year 1 and R80,000 each year in Years 2,3 and 4. Use an 8% discount rate. Calculate and display clearly the NPV, ROI and year in which payback occurs. (15)

3.2 Write a paragraph explaining whether you would recommend investing in this project based on your

financial analysis. (5) Question 4 (20) 4.1 Someone mistakenly left the following spaces empty in the status report below; please complete the

report by filling in the missing data.

Activity PV EV AC SV CV

a 100 100 150

b 200 90 0

c 350 -100

d 400 300 -50

e 175 150 25

Totals 1000

4.2 Comment on the performance of each activity based on the schedule and cost.



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Assignment Format

Word Limit: Your assignment (excluding index, cover page and appendices) must not exceed 4000.

Research must be undertaken to enhance the value of your response.



Your answers may include theories, charts, tables or exhibits necessary to support your analysis and recommendations.

References - At least 6 sources of reference (textbooks, journals, press reports, internet, etc) must be included in your bibliography. The Harvard system of referencing and bibliography must be used.

Assignments will be marked on research, application of theory and understanding of subject matter.



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ASSIGNMENT 6: MANAGING HEALTHCARE (ELECTIVE) DUE DATE: 11 MARCH 2013 Question 1 (25) Read the extract below and answer the question that follows: FAST TRACK TO QUALITY PROGRAMMES Given the long-term nature of quality improvement programmes to address deficiencies identified in certification and accreditation systems, the National Department of Health has used information gleaned from patient complaints and satisfaction surveys to develop a plan entitled Fast Track to Quality – The six most critical areas for patient-centered care. This identifies six priority areas for immediate improvement.

Values and attitudes of staff, so that patients are treated in a respectful manner with due respect for patient privacy and choice.

Reducing waiting times and queues for administration, assessment, diagnosis, pharmacy, surgery and referral and transfer time.

Cleanliness of hospitals and clinics, including buildings, grounds, amenities, equipment and staff.

Keeping patients safe and providing reliable care by reducing adverse events resulting from care given, including operations and failures of the system and its workers through ignorance, inadequate inputs, systems failure or negligence .

Preventing infections from being passed on in hospitals and clinics, specifically hospital-acquired infections.

Ensuring that medicines, supplies and equipment are available and that patients get their prescribed medicine on the same day.

Adapted from: www.cohsasa.co.za

As a healthcare management consultant to a private hospital, you have been requested to prepare a report to the Board of Directors, recommending a quality management approach to the hospital that will facilitate compliance with these six identified priority quality areas. Question 2 (55) MANAGED CARE Managed health care is an important mechanism of reducing costs in the healthcare sector. Despite its distinct benefits, healthcare providers are faced with the challenge of balancing compliance with funder requirements to control costs on the one hand, and fulfilling their obligation to provide quality healthcare to their clients, on the other hand. Select a health discipline that you are familiar with, for example, pharmacy, optometry, dentistry etc and prepare a report critically evaluating the impact of managed care in your identified health discipline. Your report must include the following aspects: 2.1 Introduction (3) 2.2 Background to the health discipline (7) 2.3 Common managed care strategies employed (10) 2.4 Impact on the practices of the health care discipline (10) 2.5 Impact on quality of patient care (10) 2.6 Conclusion (5) 2.7 Recommendations (10)



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Question 3 (20) ORGANISATION STRUCTURE Select a healthcare organisation that you are familiar with and critically evaluate its organisation structure with respect to specialization, standardization, coordination and autonomy. Assignment Format










Whilst learners are expected to read widely with respect to the theoretical framework, they must restrict themselves to using only the case study facts presented, except for the preparation of the business plan, where the learner is expected to supplement the case study with hypothetical data, where necessary.



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9. EXAMINATIONS

9.1 EXAMINATION DATES AND TIMES

NO MODULE EXAMINATION DATE DAY TIME

SEMESTER 1

1


FINAL

19 November 2012

Monday

14h00 – 17h00

SUPPLEMENTARY

14 January 2013

Monday

09h00 – 12h00

2


FINAL

21 November 2012

Wednesday

14h00 – 17h00

SUPPLEMENTARY

15 January 2013

Tuesday

09h00 – 12h00

3

Corporate Strategy

FINAL

23 November 2012

Friday

14h00 – 17h00

SUPPLEMENTARY

16 January 2013

Wednesday

09h00 – 12h00

SEMESTER 2

4


FINAL

22 April 2013

Monday

09h00 – 12h00

SUPPLEMENTARY

07 June 2013

Friday

09h00 – 12h00

5

Managerial Finance

FINAL

24 April 2013

Wednesday

09h00 – 12h00

SUPPLEMENTARY

11 June 2013

Tuesday

14h00 – 17h00

6

Elective: Management Science Business and Professional Ethics Investment and Portfolio Mgt Entrepreneurship Environmental Management Project Management Managing Health Care

FINAL

26 April 2013

Friday

09h00 – 12h00

SUPPLEMENTARY

13 June 2013

Thursday

14h00 – 17h00



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9.2 EXAMINATION VENUES

The examination venues listed below are provisional. All examination venues will be confirmed in writing via the examination guidelines which are issued at least 1 month prior to an examination session. The confirmed venues will be available on the MYMANCOSA Website.

EXAMINATION CENTRE CITY COUNTRY VENUE ADDRESS Johannesburg South Africa Turffontein Racecourse

Conference Facility Turf Club Street, Turffontein Johannesburg

Durban South Africa MANCOSA Campus 26 Samora Machel Street, Durban Pretoria South Africa UNISA (Muckleneuk Campus) Theo Van Wyk Building

Preller Street, Pretoria East London South Africa Border Cricket Association Buffalo Park Drive, Buffalo Park

East London Cape Town South Africa MANCOSA Office 3rd Floor Ebden House, Belmont Park,

Belmont Road, Rondebosch, 7700 Polokwane South Africa Edupark Edupark Avenue, Off Dorp Street,

Polokwane Bloemfontein South Africa Bohmer Secondary School

Haldon Road, Universitas Bloemfontein

Nelspruit South Africa SAVF 35 Murray Street, Nelspruit Mafikeng South Africa Molopo Executive Country Lodge Corner Nelson Mandela Drive and

North Street, Mafikeng Kimberley South Africa Don Savoy Hotel and Conference

Centre Old De Beers Road Kimberley

Port Elizabeth South Africa Feather Market Convention Centre

Baakens Street Central Opposite City Hall

Mthatha South Africa Hotel Savoy and Conference Centre

Savoy Shopping Centre 912 Nelson Mandela Drive, Mthatha

Richards Bay South Africa To be confirmed To be confirmed Windhoek Namibia Gamams Training Centre

(Transnamib) Hosea Kutako Drive, Pionierspark, Windhoek

Lusaka Zambia ZAMCOM Plot 3529 Government Road Near Ministry of Finance, Lusaka

Gaborone Botswana MANCOSA Campus Plot 50759, Block 9, Gaborone Matsapha Swaziland Swaziland Institute of Mgt & Pub

Admin (SIMPA) New Campus Opposite the University of Swaziland, Kwa Luseni, Lozitha Road, Matsapha

Maputo Mozambique ICICE Av. Zedequias Manganhela n.267, 1º piso, Prédio Jat. Maputo

Harare Zimbabwe University of Zimbabwe Faculty Of Law Mount Pleasant, Harare

Lilongwe Malawi Natural Resource College Off Mchinji Road, Lilongwe Blantyre Malawi MPC Conference Centre Kasungu Conference Centre, Blantyre 8 Nairobi

Kenya

AMREF International Training Centre

Along Langlata Road Opposite Wilson Airport

Maseru Lesotho Examinations Council of Lesotho Khubetsoana, opp National Abbattoir next to Lesedi Community School, Maseru, Lesotho

Juba South Sudan Quality Hotel Quality Hotel Juba, South Sudan

Reduit Mauritius Mauritius Examination Syndicate Reduit, Mauritius



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9.3 GENERAL EXAMINATION INFORMATION 9.3.1 Eligibility to sit for an Examination To be eligible to write an examination for a module, a student must have fulfilled the following requirements: (1) Completed the compulsory assignment for that module; and (2) Obtained at least the sub-minimum mark of 40% in the assignment for that module. If the student does not

obtain at least 40% in the assignment, the student is deemed to have failed the module and should not sit for the examination for that specific module.

9.3.2 Failure to write an examination

Students who do not attempt a final examination due to illness or circumstances beyond their control are required to submit proof to substantiate their claims. eg medical certificate, etc.

The above-mentioned documents must be submitted to the Examinations’ Officer at MANCOSA (Durban) within 5 working days after the examination date.

A request for mitigating circumstances for an examination will only be considered if the student has submitted the assignment/s for the module/s.

9.3.3 Marking of examination scripts

Examination scripts are assessed by the module coordinator and/or the tutor/s.

The scripts are then moderated externally by experts in the field of study.

The external moderator’s report with respect to the students’ scripts is presented to the examination board and the decision taken by the Board regarding the examination results is final and binding.

9.3.4 Re-marking of examination scripts

The re-marking of an examination script is permitted.

An application for re-mark must be made on the prescribed application form. Refer to Appendix D. The application must be e-mailed to the Examinations department at [email protected]

This form accompanied by the prescribed fee of R 250.00 must reach MANCOSA within 5 working days after the official release of the examination results.

The prescribed fee will be refunded if the student passes the subject as a result of the re - mark. 9.3.5 Aegrotat examinations

An aegrotat examination will be granted to students who claim and are able to provide evidence of mitigating circumstances.

This must be applied for on the prescribed form. Refer to Appendix C.

The aegrotat examination will be granted on receipt of the prescribed fee of R 250.00 per module.

A student who has qualified for an aegrotat examination must write it at the scheduled time.

This will be the final opportunity for the student to sit for the examination for that semester. There can be no postponement or claims of mitigating circumstances for aegrotat examinations.

Students must e-mail all aegrotat forms to [email protected].





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9.3.6 Supplementary examinations

Students who fail a module qualify for a supplementary examination if: They obtain a final mark less than the pass mark of 50%, and They obtain a sub-minimum of 40% in the assignment.

A student granted a supplementary examination must write it at the scheduled time as there can be no postponement or claims of mitigating circumstances for supplementary examinations.

A student who does not pass the module after having written a supplementary examination will be deemed to have failed the module and will have to re - register for the module.

The supplementary examination will be granted on receipt of the prescribed fee of R 250.00 per module. 9.3.7 Special examinations Students that fall under certain categories may be required to write special examinations for one or more modules. Applications may be made by students to request a special examination. These applications will be reviewed and a decision regarding the outcome of the application will be communicated to the student. 9.3.8 Requirements to write an examination

Students must present themselves at least 30 minutes prior to the commencement of the examination.

Students must inform MANCOSA at least a month in advance if there are changes in their examination venues.

Students must provide positive identification at examinations.

The following are essential: Student Card Identity Document or Drivers licence or Passport

9.3.9 Personalised Exam Timetables MANCOSA provides personalised timetables upon request of the student. Requests must be made in advance of the specified examination.



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APPENDIX A: ASSIGNMENT COVER SHEET (SAMPLE)

MANAGEMENT COLLEGE OF SOUTHERN AFRICA (MANCOSA)

ASSIGNMENT COVER SHEET

SURNAME

FIRSTNAME/S

STUDENT NUMBER

MODULE NAME

ASSIGNMENT NUMBER

TUTOR’S NAME

EXAMINATION VENUE

DATE SUBMITTED

SUBMISSION (√)

1ST SUBMISSION

RE-SUBMISSION

POSTAL ADDRESS

E-MAIL

CONTACT NUMBERS

WORK:

HOME:

MOBILE:

COURSE/INTAKE

MBA YEAR 2 – JULY 2012

DECLARATION: I hereby declare that the assignment submitted is an original piece of work produced by myself.

SIGNATURE:

DATE:



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APPENDIX B: EXTENSION REQUEST FORM


EXTENSION REQUEST FORM (REQUEST FOR AN EXTENSION ON COUSEWORK SUBMISSION)

SURNAME

FIRSTNAME/S

CONTACT DETAILS

MOBILE:

E-MAIL:

COURSE/INTAKE


STUDENT NUMBER

ASSIGNMENT

ASSIGNMENT NUMBER

TUTOR’S NAME

DUE DATE

REASON FOR REQUEST

LIST OF SUPPORTING DOCUMENTS PROVIDED

FOR OFFICIAL USE ONLY: (TO BE COMPLETED BY ACADEMIC DEPARTMENT) EXTENSION TO NEW DATE ___________________ AGREED. SIGNED: _______________________ ON BEHALF OF ACADEMIC ADMINISTRATION DEPARTMENT.

E-MAIL THIS FORM TO THE E-MAIL ADDRESS TO WHICH YOU SUBMIT YOUR ASSIGNMENTS



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APPENDIX C: AEGROTAT APPLICATION FORM


AEGROTAT APPLICATION FORM

SURNAME

FIRSTNAME/S

CONTACT DETAILS

MOBILE:

E-MAIL:

COURSE/INTAKE


STUDENT NUMBER

MODULE/S

EXAMINATION DATE

REASON FOR APPLICATION

LIST OF SUPPORTING DOCUMENTS PROVIDED

FOR OFFICIAL USE ONLY: (TO BE COMPLETED BY EXAMINATIONS DEPARTMENT) AEGROTAT EXAMINATION APPLICATION: ACCEPTED/REJECTED ________________. STUDENT WIL SIT FOR EXAMINATION ON: _________________________________. SIGNED: _______________________ ON BEHALF OF ACADEMIC ADMINISTRATION DEPARTMENT.

E-MAIL THIS FORM TO: [email protected]



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APPENDIX D: APPEALS FORM


APPEALS FORM

1. PERSONAL DETAILS

SURNAME

FIRSTNAME/S

STUDENT NUMBER

CONTACT INFORMATION

ADDRESS:

MOBILE:

E-MAIL:

2. DETAILS OF PROGRAMME

COURSE

INTAKE:

3. NATURE OF APPEAL

WHAT DECISION OF THE BOARD OF EXAMINERS DO YOU WISH TO APPEAL AGAINST? (PLEASE ATTACH A COPY OF THE LETTER INFORMING YOU OF THE DECISION) __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________

ON WHAT FACTS/GROUNDS DO YOU WISH TO BASE YOUR APPEAL? (PLEASE ATTACH A COPY OF THE LETTER INFORMING YOU OF THE DECISION) __________________________________________________________________________________________ __________________________________________________________________________________________

WHAT OUTCOME DO YOU WISH TO ACHIEVE? __________________________________________________________________________________________ __________________________________________________________________________________________

DOCUMENTARY EVEIDENCE

(List here the documents (or copies) you are sending with this form. These should be medical or other

relevant certificates/documents) __________________________________________________________________________________________ __________________________________________________________________________________________

SIGNATURE:

DATE:



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APPENDIX E: ACKNOWLEDGEMENT RECEIPT FORM


ACKNOWLEDGEMENT RECEIPT FORM – MBA YEAR 2

PLEASE ACKNOWLEDGE RECEIPT OF YOUR COMPLETE STUDY PACK BY E-MAILING THIS

ACKNOWLEDGEMENT SLIP TO [email protected].

PLEASE FIND ATTACHED IN YOUR STUDY PACK THE FOLLOWING:

TICK (√)

1. INTERNATIONAL BUSINESS MANAGEMENT STUDY GUIDE

2. ACCOUNTING FOR DECISION-MAKING SYSTEMS STUDY GUIDE

3. CORPORATE STRATEGY STUDY GUIDE

4. MANAGING STRATEGIC CHANGE STUDY GUIDE

5. MANAGERIAL FINANCE METHODS STUDY GUIDE

6. ELECTIVE STUDY GUIDE (STATE ELECTIVE) ……………………………………………………………

7. COURSE AND ASSIGNMENT HANDBOOK

8. GENERAL GUIDELINES TO ASSIGNMENT WRITING

9. PRESCRIBED BOOKLIST

10. ACCEPTANCE LETTER

11. STUDENT CARD

REQUESTS FOR MISLAID MATERIAL SHOULD BE E-MAILED TO THE REGISTRY/DESPATCH DEPARTMENT. YOUR ACCOUNT WILL BE DEBITED AT A RATE OF R100.00 PER ITEM. IN ADDITION, A DELIVERY CHRAGE WILL BE LEVIED

I HEREBY ACKNOWLEDGE RECEIPT OF MY COMPLETE STUDY PACK AS INDICATED ABOVE.

NAME:

SIGNATURE:

STUDENT NUMBER:

COURSE:





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APPENDIX F: CREDIT CARD PAYMENT FORM


CREDIT CARD PAYMENT FORM

Date:

Name of Student:

Student Number:

Credit Card Holder:

Account Number:

CVC(Last three digits at back)

Expiry date:

Amount:

Signature:

Please tick the appropriate box

Straight Budget (Specify No of Months: 6/12 etc)

FOR OFFICE USE ONLY

Account Status

Payment Approved

Date of Payment

Amount

Signed

Date



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APPENDIX G: DEBIT ORDER AUTHORISATION FORM


DEBIT ORDER AUTHORISATION FORM

Date:

Name of Student:

Student Number:

Monthly Amount:

Name of Bank:

Branch:

Branch Code (COMPULSORY):

Account Number:

Signature:

Please tick the appropriate box: (The Debit Order Processing Date)

The 15th day of each month The last day of each month

FOR OFFICE USE ONLY

Account Status

Debit Order Approved

Date of Debit Order

Amount

Signed

Date