Exam (elaborations)
MAC3703 Assignment 2 Semester 2 2023 (715655) - DUE 19 September 2023
- Institution
- University Of South Africa (Unisa)
QUESTIONS AND ANSWERS
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MAC3703 Assignment2 Semester 2 2023
(715655) - DUE 19
September 2023
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
,MAC3703 Assignment 2 Semester 2 2023
QUESTION 1 (30 MARKS)
Mrs Sindy Lula has been in the financial Services Sector for more than 20
years and is considering a career shift. At present, she is a credit provider
(mashonisa) where she owns and runs the money lending business throughout
the Eastern Cape under the name BZN Agri-Retailers (PTY) LTD. Having
been in this business for more than 20 years, she has grown bored of the
business and is considering selling it to a competitor and venture into
landscaping and be a landscape designer. She intends to focus on: 1. Garden
designs 2. Kids play areas MAC3703/Assignment 2/2023 4 3. Swimming pot
Mashonisa (credit providers) is part of the financial services market. Most
Mashonisas are illegal and unregulated lenders that operate without
compliance with the National Credit Act (NCA). Mashonisas offer loans that
don't require formal documents to be filled out. Although they are not
registered with NCA, the lender who harasses the borrower is breaking the
law and can be reported to NCA and to the police. Mashonisas are very
popular is South Africa because of the speed, the convenience, no credit
checks requirements, simplicity and fixed interest rates. There are no specific
educational requirements for a credit provider (Mashonisa). Some
Mashonisas are registered with NCA so as the have the competitive
advantage. According to the Wonga report, “The NCR is currently
embarking on a campaign to get all unregistered credit providers registered,
through the mobile registration office that moves around the country to assist
unregistered credit providers to register. In addition the unregistered credit
providers are continuously referred to the tribunal so that fines can be
imposed on them for operating a business of a credit provider without a
licence.” Mrs Sindy Lula’s company is registered with NCA and is a private
company registered with CIPC. The company has very few compliance
requirements. Landscaping is very different. It is part of the landscaping
products market and is subject to a plethora of rules and standards
concerning the advice and service that landscapers can give. Certain
projects/sites may require and have in place an Environmental Management
Plan (EMP), an Environmental authorization or a Water use license. In these
instances, it is critical that the landscaping company obtains copies of these
documents and takes note of the requirements up front to ensure that all work
, on-site is undertaken in accordance with these legal requirements. At times
external environmental auditors or the “Green scorpions” may visit projects
to confirm compliance with the authorization, license or EMP requirements.
The landscaping industry is a very competitive space to work in, especially
when businesses are within close geographical range to one another. It’s a
constant battle and the landscaper must know what she is up against. Who’s
taking her share of the market? Or better yet, whose market share does she
seek to gain? The landscaper must have qualifications and must be a member
of South African Landscaping Institute and must comply with landscape
standards. MAC3703/Assignment 2/2023 5 REQUIRED:
(a) For each of the markets in turn discuss with reasons whether you feel
the level of orchestration is loose or tight and whether the complexity in
the market is low or high. (12 Marks)
For the Credit Provider (Mashonisa) Market:
Level of Orchestration: Loose
Complexity: Low
Reasoning:
The Credit Provider (Mashonisa) market, as described, operates with relatively
loose orchestration. Most Mashonisas are informal and unregulated lenders, and
they don't require formal documentation for loans. This lack of formal structure
indicates a loose level of orchestration. Furthermore, the absence of specific
educational requirements and the fact that some providers are unregistered with
the National Credit Act (NCA) contribute to the loose nature of this market.
Additionally, the complexity in this market is relatively low. The primary
offerings are simple loans with fixed interest rates. There are no strict
compliance requirements for many Mashonisas, and the business model is
straightforward. While some providers may choose to register with the NCA,
the market itself remains relatively uncomplicated.
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