20; 21; 22 2022

MODULE NAME: MODULE CODE:

BUSINESS MANAGEMENT 1 BMAN5111/d/p/w
BUSINESS MANAGEMENT 1 BMAN5121/d/p

ASSESSMENT TYPE: TAKE-HOME EXAMINATION (PAPER ONLY)

TOTAL MARK ALLOCATION: 120 MARKS
TOTAL TIME: 21 HOURS (midnight to 9PM on the same day)
By submitting this assessment, you acknowledge that you have read and understood all the rules
as per the terms in the registration contract, in particular the assignment and assessment rules in
The IIE Assessment Strategy and Policy (IIE009), the intellectual integrity and plagiarism rules in
the Intellectual Integrity Policy (IIE023), as well as any rules and regulations published in the
student portal.

INSTRUCTIONS:
1. Please adhere to all instructions. These instructions are different from what is normally
present, so take time to go through these carefully.
2. Independent work is required. Students are not allowed to work together on this
assessment. Any contraventions of this will be handled as per disciplinary procedures in The
IIE policy.
3. No material may be copied from original sources, even if referenced correctly, unless it is
a direct quote indicated with quotation marks.
4. All work must be adequately and correctly referenced.
5. You should paraphrase (use your own words) the concepts that you are referencing, rather
than quoting directly.
6. Marks will be awarded for the quality of your paraphrasing.
7. This is an open-book assessment.
8. Assessments must be typed unless otherwise specified.
9. Ensure that you save a copy of your responses.
a. Complete your responses in a Word document.
b. The document name must be your Name.Student number.Module Code.
c. Once you have completed the assessment, upload your document under the
submission link in the correct module in Learn.
Additional instructions:
• Calculators are not allowed.
• For multiple-choice questions, give only one response per question. The marker will ignore
any question with more than one answer, unless otherwise stated. You should, therefore, be
sure of your answer before committing it to paper.
• This assessment has Nine Sections. You are required to answer All of these sections.

© The Independent Institute of Education (Pty) Ltd 2022 Page 1 of 8

20; 21; 22 2022

Referencing Rubric

Providing evidence based on valid and referenced academic sources Markers are required to provide feedback to students by indicating
is a fundamental educational principle and the cornerstone of high- (circling/underlining) the information that best describes the
quality academic work. Hence, The IIE considers it essential to student’s work.
develop the referencing skills of our students in our commitment to
achieve high academic standards. Part of achieving these high Minor technical referencing errors: 5% deduction from the
standards is referencing in a way that is consistent, technically overall percentage – the student’s work contains five or more
correct and congruent. This is not plagiarism, which is handled errors listed in the minor errors column in the table below.
differently.
Major technical referencing errors: 10% deduction from the
Poor quality formatting in your referencing will result in a penalty of overall percentage – the student’s work contains five or more
a maximum of ten percent being deducted from the percentage errors listed in the major errors column in the table below.
awarded, according to the following guidelines. Please note,
however, that evidence of plagiarism in the form of copied or If both minor and major errors are indicated, then 10% only (and
uncited work (not referenced), absent reference lists, or not 5% or 15%) is deducted from the overall percentage. The
exceptionally poor referencing, may result in action being taken in examples provided below are not exhaustive but are provided to
accordance with The IIE’s Intellectual Integrity Policy (0023). illustrate the error.

Required: Minor errors in technical correctness of Major errors in technical correctness of referencing
Technically correct referencing referencing style style
style Deduct 5% from percentage awarded Deduct 10% from percentage awarded
Consistency Minor inconsistencies. Major inconsistencies.
• The referencing style is generally • Poor and inconsistent referencing style used in-
• The same referencing format consistent, but there are one or two text and/or in the bibliography/ reference list.
has been used for all in-text changes in the format of in-text • Multiple formats for the same type of referencing
references and in the referencing and/or in the bibliography. have been used.
bibliography/reference list. • For example, page numbers for direct • For example, the format for direct quotes (in-text)
quotes (in-text) have been provided for and/or book chapters (bibliography/ reference
one source, but not in another instance. list) is different across multiple instances.
Two book chapters (bibliography) have
been referenced in the bibliography in
two different formats.
Technical correctness Generally, technically correct with some Technically incorrect.
minor errors. • The referencing format is incorrect.
• Referencing format is • The correct referencing format has been • Concepts and ideas are typically referenced, but a
technically correct throughout consistently used, but there are one or reference is missing from small sections of the
the submission. two errors. work.
• Concepts and ideas are typically • Position of the references: references are only
• Position of the reference: a referenced, but a reference is missing given at the beginning or end of large sections of
reference is directly associated from one small section of the work. work.
with every concept or idea. • Position of the references: references • For example, incorrect author information is
are only given at the beginning or end of provided, no year of publication is provided,
• For example, quotation marks, every paragraph. quotation marks and/or page numbers for direct
page numbers, years, etc. are • For example, the student has incorrectly quotes missing, page numbers are provided for
applied correctly, sources in presented direct quotes (in-text) and/or paraphrased material, the incorrect punctuation is
the bibliography/reference list book chapters (bibliography/reference used (in-text); the bibliography/reference list is
are correctly presented. list). not in alphabetical order, the incorrect format for
a book chapter/journal article is used, information
is missing e.g. no place of publication had been
provided (bibliography); repeated sources on the
reference list.
Congruence between in-text Generally, congruence between the in-text A lack of congruence between the in-text referencing
referencing and bibliography/ referencing and the bibliography/ and the bibliography.
reference list reference list with one or two errors. • No relationship/several incongruencies between
• There is largely a match between the the in-text referencing and the
• All sources are accurately sources presented in-text and the bibliography/reference list.
reflected and are all accurately bibliography. • For example, sources are included in-text, but not
included in the bibliography/ • For example, a source appears in the in the bibliography and vice versa, a link, rather
reference list. text, but not in the bibliography/ than the actual reference is provided in the
reference list or vice versa. bibliography.
In summary: the recording of In summary, at least 80% of the sources In summary, at least 60% of the sources are
references is accurate and are correctly reflected and included in a incorrectly reflected and/or not included in
complete. reference list. reference list.

Overall Feedback about the consistency, technical correctness and congruence between in-text referencing and bibliography:
........................................................................................................................................................................................................................................................................................

........................................................................................................................................................................................................................................................................................ .

© The Independent Institute of Education (Pty) Ltd 2022 Page 2 of 8

20; 21; 22 2022

Question 1 (Marks: 10)

With the use of relevant examples, describe the concepts below.

Q.1.1 Sole Proprietor. (2)

Q.1.2 Vision Statement. (2)

Q.1.3 Ubuntu. (2)

Q.1.4 Differentiation strategy. (2)

Q.1.5 Delegation. (2)

Question 2 (Marks: 10)

Match the description in Column A with the term in Column B. When writing your answer, use the
number and corresponding letter, e.g., Answer: 1A.

Column A Column B
Q.2.1 The way a task or project can be achieved A. Command Economy
easily with minor complexities that may
negatively impact on the task or project.
Q.2.2 Determines the lifespan of the business. If B. Entrepreneurial process
the owner dies or becomes critically ill, the
business can continue without any
disruptions.
Q.2.3 The best leadership style is determined by C. Feasibility
the situation.
Q.2.4 Central authority decides what to produce, D. Market Economy
the methods of production, as well as for
whom the goods and services are created.
Q.2.5 Relates to number of employees reporting E. Continuity
to a manager.

© The Independent Institute of Education (Pty) Ltd 2022 Page 3 of 8

20; 21; 22 2022

Q.2.6 The role of the government is to encourage F. Contingency Theory

free and fair competition and economic
efficiency and therefore individuals answer
the central economic questions, not the
state.
Q.2.7 Ensures that employees in the organisation G. Transformational Leadership
have only one direct reporting line to whom theory
they are accountable.
Q.2.8 The steps that an entrepreneur follows to H. Unity of Command
identify an opportunity and to make a
success of it.
Q.2.9 The leader influences and motivates I. Span of control
followers, presents them with a challenge
and takes the individual follower into
consideration.
Q.2.10 Relates to people who take accountability J. Liability
for the business and who will be responsible
when something goes wrong.

The Chicken Licken Story

In the early 70s, George Sombonos assisted his father in managing his roadhouse restaurant, the
Dairy Den, which was located in the south of Johannesburg. His father sent him on a trip to the US
in 1972 where Sombonos spent his time absorbing restaurant trade journals and tasting food. “I
would taste 12 hamburgers and 20 pieces of chicken every day until one day in Waco Texas, I tasted
the best chicken ever.”

Without his father’s knowledge, Sombonos swopped the existing chicken coating recipe at the Dairy
Den with his new US recipe. Sales increased and turnover shot up to over R200 000 a month. At the
start of the 1980s, Sombonos renamed the business, Golden Fried Chicken – but soon after, a waiter
came up with the name Chicken Licken, which was registered for R300. The logo, which is still used
today, was designed for R75. From its early beginnings, Chicken Licken is now 245 stores strong.

© The Independent Institute of Education (Pty) Ltd 2022 Page 4 of 8

20; 21; 22 2022

In the past, there have been attempts to open stores throughout Africa in countries like Nigeria,
Zimbabwe and Mauritius, but these were withdrawn due to inconsistent chicken supplies and
unscrupulous franchisees. Chicken Licken is currently a third of the size of KFC’s South African
operation. Over time, says Sombonos, Chicken Licken developed a reputation. “People learnt to
trust the brand.”

Chicken Licken sells around 100 000 chickens a week and when it comes to Hot Wings, one of the
most popular options on the menu, the company sells thousands of cases. At first Sombonos says
his supplier, Rainbow Chicken, thought he was running a “Mickey Mouse operation” but when sales
began to increase, they took him seriously. Chicken Licken now buys so many wings that Rainbow
Chicken sometimes struggles to supply them. He has had to import chicken from Brazil in the past.
The company’s annual turnover is now well over R1 billion and Sombonos predicts that in eight
years (2020) it will be turning over R3 billion, at which point he jokingly says he will leave the
business, because then he “knows they can’t mess it up anymore.”

Ten years ago, the annual marketing budget was R12 million. This year it has grown to a massive
R64 million. Up to 95% of this spend is allocated to television. “TV is more effective. I was told that
if you want to change perceptions of a brand, the best medium is TV.” Sombonos says that people
are more impressed by TV and that it makes an organisation appear bigger than it may actually be
– but it costs money, he adds. With the help of menu consultants, the Chicken Licken menu is
updated every May. This is done to keep things fresh. “We don’t want to be boring with the same
menu for many years. You have to change the menu but you can’t do silly things with the menu.
We will only sell chicken, no beef or fish,” says Sombonos.

Adapted from:
Experthub.info (2012) Chicken Licken: George Sombonos. [Online]. Available at:
https://www.experthub.info/success/success-stories/entrepreneur-profiles/chicken-licken-
george-sombonos-2/ [Accessed 07 June 2022].

© The Independent Institute of Education (Pty) Ltd 2022 Page 5 of 8

20; 21; 22 2022

Question 3 (Marks: 30)

The following questions are based on the Chicken Licken case study above.

Q.3.1 Mr Sombonos has registered Chicken Licken as a company. Discuss four advantages (8)
of registering Chicken Licken as a company.

Note: No marks will be awarded for only naming the factors of production.

Q.3.2 Businesses exist to meet the needs of the market. They do this by taking scarce (8)
resources, or factors of production, and converting them into products and
services.

Outline the four factors of production concerning Chicken Licken.

Q.3.3 Chicken Licken changes its menu regularly to include new products on its menu. (5)
According to the case study, “This is done to keep things fresh”.

Determine whether this is a market development strategy or a product

development strategy? Justify your answer.

Q.3.4 In the transformation model, there are inputs that go through a transformation (9)
process to produce a final product/service or output. Complete the following table
to illustrate the transformation process of a burger at Chicken Licken:

INPUTS (4) TRANSFORMATION OUTPUT (2)

PROCESSES (3)

© The Independent Institute of Education (Pty) Ltd 2022 Page 6 of 8

20; 21; 22 2022

Question 4 (Marks: 10)

There are different methods of recruitment to choose from when new employees are required.
Recommend five different recruitment methods to Chicken Licken.

Note: You are required to discuss each of your recommendations, outlining why it is a good
method to recruit new employees. No marks will be awarded for only naming the methods.

Question 5 (Marks: 15)

Q.5.1 Describe the three bases of segmentation available to Chicken Licken. (9)

Q.5.2 Environmentally friendly products have become a worldwide trend. Provide four (4)
advantages of green marketing.

Q.5.3 Suggest two ways in which Chicken Licken can implement environmentally friendly (2)
practices to capitalise on green marketing.

Question 6 (Marks: 10)

Four functional activities form part of the management process. Distinguish between the four
management activities within the context of a Chicken Licken branch.

Note: No marks will be awarded for only naming the management activities.

Question 7 (Marks: 15)

Preparing food in an outlet such as Chicken Licken needs to follow many strict guidelines
regarding quality, speed, and hygiene. Therefore, control must take place at each step. Explain the
following types of control and state how it could be applied in the Chicken Licken food
preparation process.

Q.7.1 Pre-control. (5)

Q.7.2 Concurrent control. (5)

© The Independent Institute of Education (Pty) Ltd 2022 Page 7 of 8

20; 21; 22 2022

Q.7.3 Post control. (5)

Question 8 (Marks: 10)

For a financial manager to create sound financial statements, certain elements of financial
management need to be understood. Explain the following financial terms and provide examples
to support your explanation.

Q.8.1 Assets. (3)

Q.8.2 Liabilities. (3)

Q.8.3 Income. (2)

Q.8.4 Expenses. (2)

Question 9 (Marks: 10)

The King II report was hailed as the shining light of governance standards. It includes seven
fundamental characteristics of good governance for organisations. Discuss five of these
characteristics.

END OF PAPER

© The Independent Institute of Education (Pty) Ltd 2022 Page 8 of 8