GBS 550 Assignment 1 2019 Lusaka

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The Copperbelt University

School of Graduate Studies

Lusaka Campus

20th Apri1 to 1st May 2019.

Assignment 1

MBA Finance/General-Blended Stream

GBS 550: Management Theory and Practice

Instructions:

a) The solution must be presented in Times New Roman 12 font size and 1.5 line
spacing, justified. Insert formula for quantitative analysis and show workings

b) The assignment can be attempted as an individual or group not exceeding four


members. For group attempts, the cover page must include the names and SIN of
all the members.

c) Use the following margins: top/bottom/right = 2.5cm, left = 3.0cm

d) The solution must be spiral bound and submitted not later than 16hrs on the due
date of 1st May, 2019, or before the due date.

e) Use the suggested cover page below for all your assignment and tests

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The Copperbelt University
School of Graduate Studies
Lusaka Campus

NAME : XXX

SIN : XXX

PROGRAMME : MBA Finance/General

STUDY MODE : Day (Blended)

COURSE CODE : GBS 550

COURSE NAME : Management Theory and Practice

STAGE : One (March – June 2019)

TASK : Assignment 1

COURSE LECTURER : Mr. Collins Mudenda

DUE DATE : 1st May 2019

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Firm Expansion or Risk Taking
CLYK, a strategy and project management consulting firm intends to create a group of
companies with the latest innovation of a furniture manufacturing factory. The factory
will be treated as a special purpose vehicle (SPV) under the name Xin Xao. The Director
is wondering over the best site for the factory and its ability to meet an anticipated
monthly demand of 500 tables and 500 chairs. Standard production estimates for tables
and chairs are 70 minutes and 40 minutes respectively yet the factory is estimated to
oprate for only 9 hours per day over the week days. Considering that many Zambians are
Saturday and Sunday Christians, the company saw it fit to shut on weekends to
accommodate the value systems and beliefs of the potential employees.

The firm generated a resounding profit of one million from the immediate past financial
year from which 60% will be invested in the buildings whose total investment is two
million. Machines are expected to cost one million and since most shall be imported from
China, management plans to engage two Chinese nationals from China to be the
production supervisor and maintenance engineer. The maintenace engineer shall be given
two boiler makers, five artisan fitters, two riggers and ten helpers. The production
supervisor will lead a crew of workers while both the maintenance engineer and
production supervisor will report to the production manager who shall be a Zambian
national seconded from the project management consultancy wing of CLYK.

Requirements

a) How can Xin Xao satisfy demand and what is your comment on the worries of the
director? (See scientific management)

b) Design an organogram for Xin Xao with full labor compliment based on your
management science experience. (see organising)

c) Determine the appropriate values for Xin Xao? (see corporate culture)

d) Where should Xin Xao access funds to complete the buildings and buy machinery
(see strategic planning)

e) How much will the table and chair cost to produce (See scientific management)

f) Will Xin Xao be profitable assuming 100% sales? (See scientific management)

g) Design some major policies for Xin Xao (See planning)

h) Design the Standard Operating Procedure for producing the table and chair (See
planning)

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i) Is this an example of business diversification or risk taking? (see strategic
planning)

Exhibit 1: Target table and chair

Best Wishes

For consultation please call 097 784 6337 between 7am and 10pm......no beeping no
texting, only voice calls but not watsapp calls.

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