Page 1 of 10

Student Name: Getrude Rupapa

Student Number: R00588
Module Name: (BM202B)

TABLE OF CONTENTS

Contents Page

Question 1

Question 2

Question 3

Question 4

Reference list
 Page 2 of 10
Student Name: Getrude Rupapa
Student Number: R00588
Module Name: (BM202B)

QUESTION 1

1.1 Total quality management (TQM) – is a contemporary management theory

which focuses on the internal as well as the external environment. It is a
customer based approach whose philosophy is driven by urge to meet the
clients’ needs and anticipations. Its basic premise is lifelong commitment to
overall organisational ongoing improvement in all activities carried in an
organisation. This premise is further based on the assumption that continual
improvement will make the organisation gain great competitive advantage over
its rivals through the meeting and satisfaction of customer needs. This
approach holds that the quality of all organisational processes must be
managed by everyone in the organisation. To achieve ongoing improvement,
the approach states that the organisation’s staff must be continually analytical
and creative in as far as improvement of quality is concerned.

Re-engineering – Like the above approach, re-engineering is also a

contemporary approach. The basic premise behind this theory is that the
organisation must readdress all the organisational processes. This entails that
the organisation must re-think about what it does and how it is done. The re-
thinking process is meant to make the organisation redraft or redesign its
processes such that they become more effective, and in doing so, increase
productivity, revenue as well as competitive advantage. Smit (2016) argues
that re-engineering involves a systematic reassessment of what a particular
organisation is all about
 Page 3 of 10
Student Name: Getrude Rupapa
Student Number: R00588
Module Name: (BM202B)

1.2 Examples of components of the systems approach in a bakery manufacturing

organisation are shown in the table below;

Components Example in a Bakery manufacturing organization

Inputs This require Human Resources to provide labour and also
Natural Resources for land and labour materials.
Capital is also needed for example, money, buildings and
equipment to assist in making baked products.
Processing This is when the raw materials are being used so as to
produce the desired baked products. This include
operations, logistics, financial and marketing management
to help with various functions.
outputs These are now baked products and services to be supplied
to customers.
Feedback This is when customers give information to the organisation
rating if they were happy with baked products and also if
service was up to their satisfaction.
 Page 4 of 10
Student Name: Getrude Rupapa
Student Number: R00588
Module Name: (BM202B)

QUESTION 2

2.1 According to Ehlers and Lazenby (2019) the balanced scorecard (BSC)
consists of the following perspectives

a. Financial – This aspect is concerned with the financial issues of the

company. It is concerned with the setting and measurement of financial
related long term goals such as operating income, return on capital
employed, and economic value added. It is concerned with the
performance of financial oriented objectives. The financial perspective is
also concerned with the use of financial resources within the organisation.

b. Internal Business Processes – Ehlers & Lazenby (2019) indicates that

this perspective deals with organisational performance. It is specifically
concerned in the setting and quantification of long term goals aligned to
the continuous improvement of internal organisational processes such as
quality and production lead times. The long term goals set revolve around
the measurement of internal process aspects such as the errors made
during different processes, production quality standards and various other
production standards. The internal business processes perspective views
organisational performance through product or service quality and
efficiency in relation to specific internal production processes.

c. Learning & Growth perspective – Is concerned with the establishment

and measurement of long term goals to do the performance of an
organisation’s human resources. It focuses on competency of
employees, the development of labour force, the leading and motivation of
its employees as well as the exploitation of the innovative ideas generated
by human resources as well as retention of same. It is also concerned
with the setting and measurement of long term goals to do with the
organisational culture
 Page 5 of 10
Student Name: Getrude Rupapa
Student Number: R00588
Module Name: (BM202B)

d. Customer – This perspective is concerned with the setting up and

measurement of long term goals to do with the customers. These include
creating and measurement of long term goals to do with customer
retention, customer satisfaction, and customer turnover among others.
 Page 6 of 10
Student Name: Getrude Rupapa
Student Number: R00588
Module Name: (BM202B)

2.2 Types of generic strategies.

1. Differentiation strategy – Ehlers & Lazenby shows that this strategy is

concerned with creating products and offering services which are different
from those produced and offered by its competitors. The rationale behind
this strategy is that when products or services are unique the organisation
will be able to charge premium prices and in so doing increase its revenue
and thus enjoy greater competitive advantage over its rivals. Smit et al
(2019) shows that the products or services may be different in various
dimensions such as quality, product design and artistic among other
attributes

2. FOCUS STRATEGY – Ehlers & Lazenby (2019) shows that focus strategy
means that the organisation is focusing on one specific product line or
segment of market that gives the company a competitive advantage. It has
two types namely:

 Focused Low-Cost which means serving a single market segment and

being the lowest-cost organization serving that segment. Examples of
organisations that use this strategy include the low budget airlines such
as Mango and Kulula.

 Focused Differentiation entails serving only one market segment as

the most differentiated organisation serving that segment (Smit et al
2016). Organisations that use focus on differentiation include the
America motorcycle building company called Harley Davidson.
 Page 7 of 10
Student Name: Getrude Rupapa
Student Number: R00588
Module Name: (BM202B)

QUESTION 3

According to Smit et al (2016) the following are some of the reasons for effective
organizing;

1. Accountability – this means that employees within the clothing and textile
industry will be expected to make an end for their outcomes. Accountability links
results directly to the actions of an individual, section, department or business
unit. Accountability increases work output.

2. Allocation of responsibilities – Organising leads to an organisational structure

that indicates clearly who is responsible for which tasks in the textile and clothing
industry. It makes managing tasks easier as people within the organisation will
be able to know which tasks they are responsible for.

3. Division of work – The textile and clothing industry involves a lot of value chain
processes. The breaking down of the total industry tasks into small and
manageable activities allows work to be done efficiently as well as effectively.
The division of work will promote specialisation by functional experts and thus
boosting of productivity and also increase of entrepreneurial eagerness among
employees within the textile industry. Division of work makes work to be easily
achievable.

4. Establishing clear channels of communication – This ensures that

communication is effective and that all information required by managers and
employees at all levels of the organisation, effectively reaches them through the
correct channels so that they can carry out their jobs successfully.

5. Resource deployment – Organizing is essential in the sense that it helps

facilitate the proper, meaningful and effective implementation of resources within
an organisation. Since the organisation will be divided into self-managing units
 Page 8 of 10
Student Name: Getrude Rupapa
Student Number: R00588
Module Name: (BM202B)

with similar activities as well as staff working on them grouped together, it will be
easy for an organisation and also its managers to allocate financial, human and
physical resources effectively. This will lead to an improvement in the general
functioning of an organisation.
 Page 9 of 10
Student Name: Getrude Rupapa
Student Number: R00588
Module Name: (BM202B)

QUESTION 4

Ways that managers can use to prepare for environmental changes are as follows:

1. Information management – An organisation prepares for environmental

change by collecting data on the perceived sign of change and processing
that information. The data collected is put into a system where it is processed
and stored for use as input in the decision making process. In order to collect
this crucial data about perceived key players in the strategic management
process, ought to have high levels of strategic intelligence which will enable
them to scan the environment effectively.

2. Strategic responses – Smit et al (2016) shows that an organisation can

prepare for environmental by adopting a new strategy, amending the current
strategy or by doing nothing at all. When an organisation perceives that
change is likely to occur, its strategic management team may decide to
change the strategy, modifying the current strategy or do nothing at all.

3. Structural adjustment – Ehlers & Lazenby (2019) states that whenever the
external environment changes the internal environment should change as
well. When the organisation foresees that the external environment is likely to
change, its strategic team will prepare for the perceived forthcoming change
by modifying the current or adapting a new organisational structure. When
the banking industry of the early to mid-80s perceived some changes within
the technological industry, they began to modify their organisational structures
within by incorporating computer related position in preparation of the wave of
technological change that was then perceived to be ahead of them.
 Page 10 of 10
Student Name: Getrude Rupapa
Student Number: R00588
Module Name: (BM202B)

REFERENCE LIST

Du Toit. G. S., Erasmus. B. J & Strydom. J. W. (2010). Introduction to Business

Management. 8th edition. Cape Town: Oxford University Press.

Ehlers. T. & Lazenby. K. (2010) Strategic Management: South African Concepts and
Cases. Pretoria: Van Schaik Publishers.

Jooste, C.J., Strydom, J. W., Berndt. A., du Plessis. P. J., (2012) Applied Strategic
Marketing. 4th ed. Cape Town: Pearson.

IMM Graduate School of Marketing. (2020) BM101B, Business Management 1 Study

Guide. South Africa: IMM Graduate School

IMM Graduate School of Marketing. (2020) BM202B, Business Management 2 Study

Guide. South Africa: IMM Graduate School

IMM Graduate School of Marketing. (2020) BM303B, Business Management 3 Study

Guide. South Africa: IMM Graduate School

University of South Africa. Department of Business Management 2010. Business

Management 1B: Only Study Guide for MNB1601 Pretoria

Smit, P.J., Botha, T. & Vrba, M.J. (eds) (2016). Management Principles: A
Contemporary Edition for Africa. 6th ed. Cape Town: Juta.

Strydom, J (ed) 2018, Principles of Business Management., 4TH ed. Cape Town:
Oxford University Press