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Quiz 2

The document discusses two case studies about companies - Natura Cosméticos, a Brazilian cosmetics company committed to sustainability, and Health Star, a management consultancy firm. It provides context about each company and poses multiple choice questions about key terms, strategies, mission statements, objectives, corporate social responsibility, and options being considered by Health Star.

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37 views3 pages

Quiz 2

The document discusses two case studies about companies - Natura Cosméticos, a Brazilian cosmetics company committed to sustainability, and Health Star, a management consultancy firm. It provides context about each company and poses multiple choice questions about key terms, strategies, mission statements, objectives, corporate social responsibility, and options being considered by Health Star.

Uploaded by

t875s4bzrb
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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qUIZ 2 – UNIT 1

Business Management Grade 11 – Block 5&6


Nadeen Dakwar
Case study 1: Natura Cosméticos M10/3/BUSMT/SP2/ENG/TZ0/XX

Natura Cosméticos is a Brazilian company that manufactures and sells a range of cosmetic
products including shampoo, soap, make-up and creams that protect against the sun. Natura
Cosméticos has ethical objectives and has built its success on the high quality of its products and
on the company’s commitment to sustainable development. Natura Cosméticos’ mission
statement states that it is:“committed to building a better world through sustainable
development”. Natura Cosméticos uses natural ingredients from the Amazon rainforest. The
company supports local villagers in planting their crops using traditional sustainable techniques.

Natura Cosméticos sells its products in recyclable packaging through a direct sales distribution
network of more than 60 000 self-employed “partners” in Brazil. These “partners” are mostly
women working part-time on profit-related pay. This approach works well because employment
opportunities in Brazil are limited, wages are low, and it allows flexible working. Consumers
also like direct distribution because of the personal service and close interaction with the
“partners”. Natura Cosméticos has experienced an average annual growth in revenue of 25
% between 1995 and 2003. In 2006, the company built a new manufacturing plant to
accommodate future growth. This was financed by a new long-term loan.

 sustainable development: a pattern of resource use that aims to meet human needs while preserving the environment so
that these needs can not only be met in the present, but also for future generations
 self-employed: earning one’s livelihood directly from one’s own trade or business rather than as an employee of
another
 Profit-related pay: is The situation in which the pay of employees is related to the profit made by the employer. The
purpose is to increase motivation, commitment, and effort by the workforce by ensuring that all staff have a positive
stake in the success of the company.

Q1: Define strategies and tactics. [2 marks]


Q2: Outline the purpose of the mission statement of Natura Cosméticos. [2 marks]
Q3: Explain the role of objectives in achieving Natura Cosméticos’s mission statement. [4
marks]
Q4: Analyze the benefits and limitations faced by Natura Cosméticos adopt a corporate social
responsibility approach and implement ethical objectives. [6 marks]
Case Study 2: Health Star (HS)
Health Star (HS) is a private limited company providing management consultancy services for public sector
organizations like hospitals. HS is well known for its creativity and for helping customers achieve budget
targets. HS’s consultants are all shareholders, receive high salaries and profit-related pay. HS also gives its
consultants freedom and encouragement to be intrapreneurs. The consultants’ work performance is appraised
on a monthly basis using formative appraisal.
Recently, several pressure groups have protested against the high fees charged by HS. “The high fees are
outrageous!” said Elaine Hall in a local news report. “Public sector hospitals need to use their resources for
patient care and not for employing expensive consultants.”
In response to the pressure groups, HS is considering two options proposed by two senior consultants, Dan and
Lauren:
• Option 1: Dan has suggested that HS should set up a charity to create educational services for children with
long-term health problems. The charity will be funded partly through donations and partly through HS’s own
profits. The charity, Health Star Education (HSE), will finance qualified teachers to visit hospitals. HS’s
consultants are also expected to volunteer to read to sick children.
• Option 2: Lauren has suggested that reducing the high fees should be the priority. She suggests that new,
untested software could be developed by her project team to significantly reduce the costs of treatment for
patients. Consequently, HS could charge public sector hospitals a lower fee.
• Option 3: Changing its operations as a private limited company to a non-profit organization and operating as
a Non-governmental organization to support local entrepreneurs and businessmen and women who do not have
the financial resources to start-up their business through providing management consultancy services

Q1: Define Non-Governmental Organizations. [2 marks]


Q2: Define Franchise, Franchisor and Franchisee. [2 marks]
Q3: Explain the 2 benefits of setting up a charity to create educational services for children. [4
marks]
Q4: Analyze the features Health Star will face if it decides to implement option 3 and operate as
a non-profit organization. [6 marks]

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