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BSM1501 Assignment 02 Semester 02 2020 Questions and Answers
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Business Management 1ABSM1501
Department of Business Management
Assignment 02 for Semester 02 (compulsory)
Unique Number 822456
PLEASE NOTE
Study Chapters 1 to 6 thoroughly before you answer this assignment.
Read the case study and answer all the questions that follow.
CASE STUDY: GRANDMA’S HOUSE
Rose Lebelo, a grandmother of five, started Grandma’s House eight years ago in Mamelodi,
Pretoria. Rose was employed as a domestic worker, who lived in at her previous employer
and not only cleaned their house but prepared lunch and dinner for the family. Because
Rose loved children, they also sent her to receive comprehensive nanny training so she
could look after their small children.
,After the birth of Rose’s first grandchild, Rose and her husband Richard decided that she
should resign from her job, as her own grandchild needed her more than her previous
employer's children, who are now all grown up. Rose realised she still needs to earn an
income and decided to open a day-care centre due to the low start-up costs. However,
owing to the low start-up costs of such a business, there were quite a lot of competitors
offering day-care services outside Mamelodi. Rose realised that, unless she could offer more
specialised services, she would not survive in this competitive market. Rose decided to first
conduct market research to determine the consumer’s needs. The outcome of the market
research revealed the following findings:
There is an increase in working parents and single-parent families.
Parents in Mamelodi travel very early to work due to transport difficulties and some
come home very late.
Many parents in Mamelodi work over weekends.
Many families in Mamelodi are being subsidised by public funds and earn a low
income.
After these findings, Rose considered the rendering of three services at an affordable rate
based on their possible buying behaviour – a basic day-care service during traditional
weekday hours; and one during non-traditional hours, which includes very early morning,
evening and overnight care; as well as weekend care. After careful consideration, they
decided that Rose should rather use their home instead of spending thousands of rands per
month on renting a small space nearby. She also knew that her home would offer her a
competitive advantage as it is on the route for many parents travelling outside Mamelodi to
work every day.
She started her own enterprise and registered it as a sole proprietorship. Rose applied for a
short term loan of R40 000 to build a primary room for her business and added a bathroom
for the children. She contributed R5000 of her savings for equipment, cots and mattresses,
shopped at second-hand shops, and accepted donations of used toys and other items from
friends and acquaintances. The day-care centre consisted of a small office, a sick bay, and an
indoor area for play, meals and rest, and an outside play area with plenty of shade.
Rose’s day-care centre became so popular that she could not accept all the children
anymore due to her own capacity. She decided to employ two of her friends, Grace and
Ester, as nannies and she appointed Virginia to do the administration of the business. Rose
communicated all their respective responsibilities clearly. Information management plays an
important role in this business, as some children have different needs. Grandma’s House
must, therefore, keep a record of the children’s information. Rose is on good terms with all
her clients and has long-term relationships with all her clients. After numerous complaints
from clients that their children who are in primary school are getting into trouble after
school and not doing their homework, Virginia suggested that they should include an area
with tables and chairs for these children to do their homework.
Rose’s target market is in Mamelodi, and she competes with bigger day-care centres such as
Carefree Kid’s Montessori Centre and King’s Kid Crèche. Although her day-care centre is as
large and established as those of Carefree Kid’s Montessori Centre and King’s Kid Crèche, she
has a few competitive advantages. Firstly, she is located inside Mamelodi whereas the
, others are situated 20 to 30 km from Mamelodi. Secondly, she offers a wider range of
special time services, such as early morning care, late evening care, overnight care and
weekends on arrangement, whereas others are open from 07:00 to 17:00. Thirdly, she also
has an area for schoolchildren to do their homework, whereas others only cater for pre-
school children.
MULTIPLE-CHOICE QUESTIONS
We recommend submitting your assignment online on myUnisa. You may also use a mark
reading sheet to answer and submit the assignment.
Chapter 1
1. Rose Lebelo could be classified as a/an _______.
1) intrapreneur
2) entrepreneur
3) small business manager
4) corporate entrepreneur
Refer to page 2 of the prescribed textbook:
1.1 Defining entrepreneur and entrepreneurship
Definition
Entrepreneurs have the ability to identify and seize an opportunity and create and develop a
business by adding value. They do this by applying resources that include finance, time,
effort, people and skills. They are willing to take risks and through their businesses they
organise, manage and achieve results.
2. According to the case study, Virginia can be classified as a/an _______.
1) intrapreneur
2) entrepreneur
3) small business manager
4) franchisee
Refer to page 6 of the study guide:
1.3.1 Definition of the concept of intrapreneur
An intrapreneur does not want to take the risk of starting an own enterprise, but prefers to
use his or her entrepreneurial ability in an existing enterprise. An intrapreneur is an
employee with entrepreneurial abilities who identifies an opportunity in an existing
enterprise.
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