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1 (a) Identify and explain one advantage and one disadvantage to SA of starting to sell new products
in a niche market.

Advantage: .......................................................................................................................

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Explanation: ......................................................................................................................

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Disadvantage: ...................................................................................................................

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Explanation: ......................................................................................................................

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(b) Consider the following three roles of packaging for SA’s new products. Which is the most
important role for the successful launch of these new products? Justify your answer.

Protection: ........................................................................................................................

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Brand image: ....................................................................................................................

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Information about the product: ..........................................................................................

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Conclusion: .......................................................................................................................

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2 (a) Identify and explain how the following two stakeholder groups might be affected by SA’s plans
to expand.

Shareholders: ...................................................................................................................

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Local community: ..............................................................................................................

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(b) Consider the following three benefits to SA of having well-motivated employees. Which benefit
will be the most important to SA if it wants to increase profit? Justify your answer.

Higher output: ...................................................................................................................

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Fewer employees leaving: ................................................................................................

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Higher quality: ...................................................................................................................

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Conclusion: .......................................................................................................................

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3 (a) Identify and explain two ways SA could use lean production in its factory.

Way 1: ...............................................................................................................................

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Explanation: ......................................................................................................................

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Way 2: ...............................................................................................................................

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Explanation: ......................................................................................................................

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(b) Consider three leadership styles the Operations manager could use in the new factory.
Recommend which leadership style should be used to improve decision-making. Justify your
answer.

Leadership style 1: ...........................................................................................................

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Leadership style 2: ...........................................................................................................

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Leadership style 3: ...........................................................................................................

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Recommendation: ............................................................................................................

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4 (a) Identify and explain two opportunities and two threats for businesses in country Z from
globalisation.

Opportunity 1: ...................................................................................................................

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Explanation: ......................................................................................................................

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Opportunity 2: ...................................................................................................................

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Explanation: ......................................................................................................................

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Threat 1: ...........................................................................................................................

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Explanation: ......................................................................................................................

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Threat 2: ...........................................................................................................................

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Explanation: ......................................................................................................................

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(b) Using Appendix 3 and other information, consider SA’s financial position, using liquidity ratios.
Recommend whether the bank manager should give a loan to SA for the new factory. Justify
your answer.

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