Exam (elaborations)
MNE3701 EXAM PACK 2022
- Institution
- University Of South Africa (Unisa)
Latest exam pack questions and answers and summarized notes for exam preparation. for assistance. All the best on your exams!!
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Content preview
MNE3701EXAM PACK
,MNE3701 –Entrepreneurship & Small Business management
Question 1&2 Overlaps
Explain the five steps in the Risk Management process (5)
1. Identify risks
• Analysis of financial statements and firms operations, policy checklists…
2. Evaluate risks in terms of size and probability
• critical, important and unimportant
3. Select methods to manage risk
• risk control: risk avoidance – choosing not to engage in activities risk reduction –
lessening the severity of losses
• risk financing: risk transfer – insurance or contractual agreements
• risk retention – financing loss by itself
4. Implement decision
• purchasing insurance or setting funds aside
5. Evaluate and review
• new risks arise and old ones disappear
Discuss the steps in the Marketing research process (10)
1. Identifying the information need
• venture’s informational needs to be correct and in detail, then marketing research
will produce meaningful results
• ex. target market? Willing to pay? Disposable income? Geographic info? Quality?
2. Searching for secondary data
• Secondary research is less expensive than primary research.
• sources: Stats SA, Bureau for Marketing Research(Unisa), search engines
• Shortcomings: outdated, may not fit requirements, credibility of sources.
3. Collecting primary data
• Collected by means of observational and questioning methods.
• important considerations: - differences between observational and questioning
method
• the high value of personal observation in small business
• considerations in questionnaire design:
o observation has 3 benefits – provides useful info, economical, avoids
potential bias
o surveys and experimentation are both examples of questioning methods
o four types of surveys – mail, telephone, personal interview or e-mail
o a questionnaire is the basic instrument for guiding the researcher and
respondent
4. Interpreting the data gathered
• data must be transformed into usable information to make sound business decisions
• Specialised computer programs are designed to summarise large quantities of data.
,Describe the approach that serves as guidelines in determining a promotional budget (4)
Allocating a percentage of sales
o Allocating a percentage of sales to promotion (ex. 30% of turnover)
o Disadvantage – when sales decline, less money is spent on promotion, which does not solve
the problem.
Deciding how much can be spared
o Spending whatever is left over on promotion after paying all expenses.
o Disadvantage – it ignores promotional goals, because different approaches to promotion are
required.
Spending as much as one’s competitors
o Business hopes to reach same customers by duplicating competitors promotional efforts
o Disadvantage – may result in copying of competitors mistakes
Determining what it will take to do the job
o Based on proper market analysis and all the alternatives available as promotional channels
o Preferred approach to promotional expenditure.
o Disadvantage – very time consuming and requires a greater understanding.
Explain the five key factors that must be considered when choosing the location of a business (10)
1. Customer accessibility
• Retail outlets and service firms are businesses that must be located to make access
easy.
2. Business environment conditions
• Weather, competition, crime, legal requirements and tax structures.
3. Resource availability
• Proximity(nearness) to raw materials, suitability of labour supply, availability of
transport
4. Entrepreneur’s personal preferences
• Choice of local site or location offering unique lifestyle advantage
5. Site availability and costs
• Either close to the customer (retail) or the supplier (supplier of intermediate goods)
• leasing a site is advisable because a large cash outlay is avoided and thus reduces
risk
, Discuss the eight psychological and sociological influences on consumers and their relevance on
consumer behaviour (8)
Four psychological influences:
1. Needs
o Starting point for all behaviour
o Basic needs
▪ physiological(hunger), social(what you wear), psychological(what you think),
spiritual(emotion)
2. Perceptions
o Processes that give meaning to the stimuli confronting customers
o Perceptual categorisation
▪ grouping similar things, to manage huge quantities of incoming stimuli
3. Motivations
o Intrinsic/extrinsic force that organises and give direction to the tension caused by
unsatisfied needs
o Unsatisfied needs create tension within an individual and is then motivated to reduce
the tension
4. Attitudes
o an enduring opinion based on knowledge, feeling and behavioural tendencies
o an attitude may act as an obstacle in bringing a customer to a product
Variables that influence customer on a social level:
1. Culture
o The social heritage of humanity and is reflected in behavioural patterns and values
o cultural norms create product-related acceptable behaviours that influence what
customers buy
o ignoring cultural beliefs and customs may be offensive
2. Social class
o divisions within a society with different levels of social prestige
o Determined by following factors: occupation, possessions, income level/source of
income, education.
o social class influences the type of product purchased and the actual purchasing
process
3. Reference groups
o group of individuals that influences purchasing behaviour of individuals
o examples – friends, family, classes at school, business associates
o reward power and coercive power – group’s ability to give and withhold rewards
(recognition and praise)
o referent power and expert power – exist because individual attaches great
importance to being like group
4. Opinion leaders
o group members with leadership and communication advantage in their fields
o they are normally visible, knowledgeable and exposed to the media
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller EduPal. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R50,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
68175 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 15 years now