T1: t3: Adapting To Challenges Of The Business Environments

Question 1

How can a business adapt to difficult employees?

Answer 1

1. Revisit recruitment and induction policies
2. Develop strategies to deal with different personality types
3. Offer counseling sessions to employees with personal problems

Question 2

How can a business adapt to a lack of vision and mission?

Answer 2

1. Management have to set a clear vision which is understood and communicated to all employees
2. Vision and mission statement have to be implemented in a way that shapes the internal environment
3. Vision and mission should direct the use of resources and employee actions
4. Management must be able to anticipate changes in internal environment so they can set goals and proactively plan operations

Question 3

How can businesses adapt to a lack of adequate managerial skills?

Answer 3

1. Managers need good interpersonal and conflict resolution skills
2. Needs to be skilled in technical aspects of job and in dealing with employees
3. Must attend management and leadership courses
4. Business may request mentors and coaches from successful businesses to train managers

Question 4

How can businesses adapt to unions, strikes and go-slows?

Answer 4

1. Must be able to manage employees to maintain good working relationships and resolve disputes timeously
2. Managers need to deal fairly and transparently with trade unions
3. Build relationships with union representatives so strikes can be avoided through positive negotiations
4. Can make use of CCMA to help reach agreement

Question 5

How can businesses adapt to competition?

Answer 5

1. Offer different products than competitors to satisfy needs and wants
2. Offer low-cost extras
3. Charge lower prices than competitors
4. Update business image (paint premises, etc)

Question 6

How can businesses adapt to shortage of supply?

Answer 6

1. Select reputable, trustworthy, reliable suppliers
2. Maintain good relationship
3. Enter contracts to secure raw materials of good quality in sufficient quantities
4. Take over supplier to ensure continuity of supply (backwards integration)

Question 7

How can businesses adapt to changes in consumer behavior?

Answer 7

1. Marketing should conduct ongoing research to investigate general behavioral patterns
2. Marketing manager must monitor and respond to changes in consumer consumption patterns

Question 8

How can businesses adapt to demographics and psychographics?

Answer 8

1. Ensure information is up to date and accurate
2. Interpret data accurately to plan effective marketing strategy
3. Keep track and study attitudes, tastes, desires of market

Question 9

How can businesses adapt to socio-cultural factors?

Answer 9

1. Entrepreneur needs to remain informed of socio-cultural changes
2. Employ people from diverse social and cultural groups to get an inside view on how to meet the needs of different groups
3. Must be able to modify marketing strategy and plan accordingly

Question 10

How can businesses use information management to adapt to challenges?

Answer 10

1. Information must be found, recorded, stored, easily retrieved, effectively used
2. Need to implement effective information management system which is accessible and useful to all staff

Question 11

How can businesses use strategic responses to adapt to challenges?

Answer 11

1. Management needs to design strategic responses to various challenges by analyzing all information and identifying stakeholders involved
2. Must get clear picture of each stakeholder’s viewpoints and requirements
3. Should have strategic plan to respond to changes in environment

Question 12

Explain what mergers, takeovers, acquisitions and alliances are

Answer 12

1. Businesses can acquire another company’s shares
2. Can choose to purchase/merge another business to have larger market share
3. Undertake new venture with another company which can be safer than expanding the existing business

Question 13

Why is organizational design and flexibility important in a business?

Answer 13

1. Need to be flexible in design and strategies so they can compete in changing market
2. OD is the process of integrating people, information and technology of an organization to improve profitability
3. Must change OD to adapt to specific challenges

Question 14

Explain businesses’ direct influence on the environment and social responsibility

Answer 14

1. Social responsibility refers to obligations business has to protect and improve interests of all stakeholders
2. Business can influence environments and address challenges linked to socio-economic issues in social environment
3. Take part in projects that uplift community projects and programmes
4. Use CSI projects as a marketing tool

Question 15

What is a merger?

Answer 15

(A + B = C)

1. Occurs when two companies join and form a new business
2. If it’s a public company, shareholders will exchange shares in original company for the equivalent value of shares in the new, merged company

Eg. Takealot.com merging with Kalahari.com in 2014

Question 16

What is a takeover?

Answer 16

(A + B = A)

1. Purchasing of company (target) by another company (bidder) usually against will of targets (hostile takeover)
2. Take over existing companies by buying out shares until business has controlling interests

Eg. Vodafone taking over Mannesmann in 2001

Question 17

What is an acquisition?

Answer 17

(A + B = A)

1. Business buys another business at agreed price
2. Usually occurs to private companies that aren’t listed

Eg. Walt Disney acquiring 21st Century Fox in 2019

Question 18

What is an alliance?

Answer 18

(A + B = AB)

1. Agreement when 2 or more businesses work together to achieve objectives
2. Organizations with similar interests, nature, qualities choose to work together for mutual benefit of both organizations
3. Remain separate and merely cooperate

Eg. Redbull and GoPro

Question 19

List four ways in which businesses can have a direct influence on the environment

Answer 19

1. Create new use for product by finding new customers
2. Influence owners’ using information contained in annual reports
3. Influence suppliers by signing long-term contracts
4. Influence regulators through lobbying and bargaining

Question 20

What is the meaning of social responsibility?

Answer 20

1. Getting actively involved in projects that can have a positive impact on society sustainability
2. Increase pressure in environment forces businesses to become more socially responsible by giving back to communities
3. Code of conduct should take community norms and values into consideration
4. When the business makes a commitment to environmental and social responsibilities, it delivers the triple bottom line (planet, people, profit)

Question 21

List four Social responsibility projects that a business can undertake

Answer 21

1. Conduct skill development or job creation projects
2. Sponsor art and cultural programs
3. Support youth programs
4. Address issues like HIV and Aids or the COVID-19 pandemic

Question 22

List four benefits of CSI benefits for businesses

Answer 22

1. Promote teamwork within businesses
2. Helps to attract investors due to an increase in profits
3. Promotes customer loyalty resulting in more sales
4. Business enjoys goodwill and support of communities

Question 23

Meaning of lobbying

Answer 23

1. Process of trying to influence legislation or parliamentary decision making
2. Involves acquiring public support for an issue
3. Specifically applies to lawmakers and government officials, and is a participatory approach to government
4. Done by various people with similar motives, beliefs, commercial positions

Question 24

List four reasons for lobbying

Answer 24

1. Business lobbies regulator/supervisory body to try to influence prices, policies, regulations and other decisions made by regulator or supervisory body
2. Lobby or change laws like child labour laws, clean air and water laws, municipal regulations, etc
3. Views are important and heard, thus making a difference and giving solutions to business challenges
4. Advances businessmen’s cause and builds public trust

Question 25

Types of lobbying

Answer 25

1. Hedging against inflation
2. Bargaining sessions between management and unions
3. Influencing supervisory body

Question 26

List four ways businesses can lobby for mutual trust

Answer 26

1. Acquiring public support for an issue
2. Protesting against enforcement of new law
3. Purchase same or similar products from different markets at same time
4. Adhere to guidelines of regulators and supervisory bodies

Question 27

Meaning of networking

Answer 27

1. Coordinated activity where people who have similar objectives meet and exchange information and ideas
2. Goal is to reach as many people as possible and make every connection count
3. Tool used to increase sales and business image
4. Business can become a member of chambers of commerce and industry, professional business clubs and informal social groupings to meet new contacts

Question 28

Examples of networking

Answer 28

1. Formal networking
2. Informal networking
3. Social medua and the internet

Question 29

Advantages of networking

Answer 29

1. Attract new customers resulting in increased market share and profitability
2. Excellent source of new perspectives and business ideas
3. Plays role in marketing and expansion
4. Assists in making future business decisions

Question 30

Meaning oc power relationships

Answer 30

1. Business forms relationships with its environment and markets
2. Described as power business has on environment which determines status it holds within its industry
3. Measurement of business ability to control environment and behavior of other businesses

Question 31

List four ways to form power relations

Answer 31

1. Build around BBBEE and employee empowerment
2. Ability of a person’s power to influence other’s thoughts, actions and choices
3. Strategic allies don’t want to lose mutual benefits
4. Influence on company representatives through agents or intermediaries