Exam (elaborations)
MAC4863 Assignment 3 (COMPLETE ANSWERS) 2024 (504821) - DUE 20 May 2024
- Course
- MAC4863
- Institution
- University Of South Africa
100% TRUSTED WORKINGS, EXPLANATIONS & SOLUTIONS
[Show more]
Content preview
MAC4863Assignment 3
(COMPLETE
ANSWERS)
2024 (504821) -
DUE 20 May
2024
CONTACT: biwottcornelius@gmail.com
, Question 1 (25 marks) (This question comes from the Jan/Feb 2024
supplementary exam) Eagle Logistics (EL) was started many years ago when
its founder Amir Singh, invested his retrenchment package into establishing
the business. Amir has retired and handed over the business to his two sons,
Hassan and Rohan. EL is a specialist in international logistics solutions with
its head office in South Africa with international branches in Mauritius,
Australia, Germany, Netherlands, UK, Hong Kong, and China. EL owns no
physical assets. Over 80% of their earnings come from outside of South Africa
and across multiple major trade routes. As the company gets larger its ability
to aggregate client volumes and logistics needs increases, allowing them to
leverage their network for cost-effective solutions compared to asset-heavy
competitors. EL has achieved success by providing a very differentiated
service to its customers. EL’s strategic objective has been to exploit market
opportunities to achieve a high level of return on investment. Father and Sons
have been very involved in the business where they carried out all the
strategic planning and operational management activities. One could call their
approach to strategic planning as Freewheeling opportunism. Now that their
Father has retired, Hassen and Rohan know that to continue to grow the
business they will need to raise more capital, and they will have to appoint
other senior managers to maintain the operational side of the business. This
will free up the brothers to focus more on the strategic development of EL.
The brothers are considering raising new capital through listing on the
Johannesburg Stock Exchange (JSE) REQUIRED: a) Explain how the
strategic planning of EL might alter if the organisation raises additional funds
by listing on the JSE. (Do not provide a theory dump on the strategic process,
no marks will be awarded). (13 marks) b) Discuss the most appropriate
strategic planning process that EL should adopt in order to satisfy its
organisational objectives following the public issue of shares on the JSE (12
marks) [25 marks] MAC4863/A02 5
a) If Eagle Logistics (EL) decides to raise additional funds by listing on the Johannesburg
Stock Exchange (JSE), several changes in their strategic planning might occur:
1. Increased Scrutiny and Accountability: As a publicly listed company, EL will
be subject to regulatory requirements and shareholder expectations. Their
strategic planning process will need to be more transparent and accountable to
shareholders and regulatory bodies.
2. Focus on Shareholder Value: With shareholders expecting returns on their
investment, EL's strategic planning may shift towards maximizing shareholder
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 Solutionist. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R47,05. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78075 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now