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CAS3701 Assignment 12 (COMPLETE ANSWERS) 2024 - DUE 4 October 2024
CAS3701 Assignment 12 (COMPLETE ANSWERS) 2024 - DUE 4 October 2024
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,CAS3701 Assignment 12 (COMPLETE ANSWERS)2024 - DUE 4 October 2024 ; 100% TRUSTED
Complete, trusted solutions and explanations.
QUESTION 1 1. INTRODUCTION Rhino Cellular Ltd (“RhinoCell”)
is a South African based manufacturer and retailer of low-cost
smart phones. RhinoCell was founded in 2011 in response to
the uptake of smart phones in the South African market. The
company quickly saw a market opportunity for a low-cost smart
phone that provides a basic version of features when compared
to other high-end smart phones manufactured in South Africa
and other African markets. RhinoCell has a 31 August financial
year-end. The board of RhinoCell expects to authorise the
annual financial statements of RhinoCell for issue on 14
December 2023. The key to RhinoCell’s competitive advantage
is its locally based supply chain. RhinoCell manufactures its
products at the Maluti-A-Phofung Special Economic Zone
(“SEZ”) in Harrismith, Free State Province. The Maluti-A-
Phofung SEZ is a key logistic link by road and rail to South
Africa’s economic and industrial heartland, with key links to
Gauteng, the Port of Durban, and the Bloemfontein-Cape Town
route. RhinoCell sources its main materials from South Africa
and other African countries and employs workers from the
Harrismith community. This strategy allows RhinoCell to procure
materials at competitive prices and pay lower wages to its
employees, as the cost of living in Harrismith is lower when
compared to urban centres such as Johannesburg, Durban, and
Cape Town. 2. MARKETING AND SALES STRATEGY The smart
, phone industry is dominated by a few international companies
that manufacture their products mainly in South-East Asia and
the Americas. The strong expansion program by these
companies, coupled with the rollout of 5G internet, has allowed
global consumers to make increased use of the internet in their
daily lives. RhinoCell has identified Sub-Saharan Africa as an
underdeveloped market for smart phones and believes that low
priced smart phones are the industry future, considering the
affordability constraints that plague consumers in the region.
According to the Global Systems for Mobile Communications
Association (GSMA), 49% of consumers in the Sub-Saharan
African region have access to 4G mobile technology, whilst only
17% of consumers have access to 3G mobile technology. The
lack of penetration in the Sub- Saharan African region provides
RhinoCell with a strong opportunity to capture a sizeable
portion of the market. RhinoCell’s Africa expansion strategy
includes a newly developed smart phone, named
“EnduroPro94”, which has a 48-hour long battery life and will be
capable of utilising 5G mobile technology. The longer battery
life is in response to the electricity challenges that affect most
of Sub-Saharan Africa. EnduroPro94 will be targeted at the
lower end of the market. RhinoCell initially plans to sell the
smart phone for R1 300 (excluding VAT) in Sub-Saharan Africa.
3. MANUFACTURING AND SUPPLY CHAIN The product's battery
is the key to manufacturing a smart phone with a battery life of
48 hours. In its earlier products, RhinoCell used nickel-metal
hydride batteries sourced from China. These batteries made the
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