Megan Salomo Business Management
PT2014-2075 group
2
Question 1
1.1) Summary of a successful entrepreneur in South Africa
Being a successful entrepreneur doesnt happen overnight. Many people look
pass the struggles all they see is the triumphs of the successful entrepreneur.
Anna Phosa one of South Africas biggest pork suppliers was born in a small
rural village in Mpumalanga. When Annas father died her mother was the one
who struggled to support Anna and her siblings. Anna who dreamt of
becoming a professional nurse had to put her dreams aside because of their
financial issues unfortunately her mother couldnt send her to go study
nursing. Anna later got married and she and her husband bought a piece of
land where they started farming with cabbage, beetroot as well as raising
chicken. Phosa who wanted to learn the best tricks in the farming business
started networking with other farmers and she then got interested in the idea
of farming with pigs. Anna then bought four pigs to start with today she owns
nearly 4000 pigs on her farm (Phosa, 2016).
1.2) Essential skills that have enabled Nkosi to manage her hospitality
business
Cognitive Skills
Cognitive skills reveal managers intellectual skills. Cognitive skills are often
expanded through proper education and experience. Top managers have a
tendency to use more time expending their cognitive abilities at work because
they make most of the long term decisions in an organisation (Botha. S &
Musengi.S,2012:144-115).
Nkosi the owner of a guest house in Witbank was able to take the risk of
opening a business where she knew not many tourists visited and she is still
planning to open a hotel around the guest house in the future and also
opening more branches of the guest house in South Africa.
Technical Skills
Technical skills are the skill to deliver a certain task or to have an accurate
understanding on a business. Technical skills contain simple things such as
the skill to properly work with a computer. Technical skills do not only apply to
function machines, but it also includes having skills to sell and to have
marketing skills (Botha. S & Musengi.S,2012:115-116).
.
Nkosi trains her employees to do the work without her.
Human Skills
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Megan Salomo Business Management
PT2014-2075 group
2
Human skills relates to the persons ability to relate with others to progress the
successful competition of the job at hand. Human skills can be developed
through an understanding of human behaviour (Botha. S &
Musengi.S,2012:116-117).
Nkosi believes what sets her business apart is the team of people she works
with. She says they are amazing and brings energy to the business. Nkosi is
also proud of the fact that they continue to run the business when she is not
there.
1.3) Five challenges that are faced by entrepreneurs
1. The demands of taking full responsibility: As the owner of a business
you have to take full accountability for everything. One of the main challenges
is to make tough decisions that may determine the success or failure of the
business. Being an entrepreneur and not having knowledge in some areas
and there is no one to turn to can also put stress on you as a person (Botha.
S & Musengi.S,2012:30).
Solution
Educate yourself about the pros and cons of your choices. Get a second
opinion from another entrepreneur in whom you disclose. Do your homework
upfront about the type of business that you want to go in.
2. No guaranteed income: The profits of your own business can change. It
can often take years before you start making an income from your business.
Sometimes you may have to go without a salary in order to make up for a
underperformance of the business (Botha. S & Musengi.S,2012:30).
Solution
Always prepare yourself for the worst case scenario when it comes to the
finance part of the business. Do not expect too much because you will be
disappointed and feel like a failure.
3.Hard work: Having your own business demands long hours of hard work
especially at the beginning. You will often have no free time which can cause
you to lose touch with your friends and family (Botha. S &
Musengi.S,2012:30).
Solution
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Megan Salomo Business Management
PT2014-2075 group
2
Create a goal list of lifetime objectives broken down into yearly goals than
broken into monthly goals then into weekly goals. Your weekly goals will then
be broken into detailed tasks per day. Spend your time the right way which will
not affect your family and business in a harmful way.
4.Sacrificing quality time of family life: Family life may suffer because of
the long hours you have to spend away from the home. Capital that may be
needed in the business may affect the family budget (Botha. S &
Musengi.S,2012:30).
Solution
As an entrepreneur you have to set aside time to make sure you have some
form of balance.
5.Risk of losing invested capital: Many businesses close down every year.
The reason for their closing down could be due to economic, technological or
external environmental factors. If this happens the owner lose all the money
they invested in the company. Business owners who cant or dont watch what
is happening in the internal environment can also fail (Botha. S &
Musengi.S,2012:30).
Solution
Plan and budget right to maintain the cash flow of your business. If this is still
not working for your business cash flow needs a down payment for your
products and services, this should cover your expenses.
1.4) Organisational purpose of Nkosi s business.
The organisational purpose of Nkosi s business is to fulfil the demands and
wants of her clients (Duvenhage,2017:16). Nkosi went from selling boiled
eggs at a bus stop to selling jeans in varsity, starting a steel fabrication
business with her husband and later she bought a house which she converted
into a guest house in Witbank.
1.5) Characteristics of Nkosi
1.Creativity
Creativity is the ability to produce new and unique ideas. Creativity not only
refers to opening a new business but it also refers to changing an existing one
into an entrepreneurial business (Botha. S & Musengi.S, 2012:25).
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Megan Salomo Business Management
PT2014-2075 group
2
-Nkosi sold boiled eggs at a bus stop, sold jeans during her varsity years,
converted a house into a guest house and she is planning to buy houses
around the guest house to convert it into a hotel.
2. Innovation
The usage of a new idea to develop a better product, service, process or
method. Entrepreneurs find new ways of doing things. Innovation is related to
creativity (Botha. S & Musengi.S, 2012:25).
- Nkosi converted a normal house into a guest house and she is planning to
build a hotel from other houses around the guest house.
3.Commitment and determination
The ability to stay with something and to preserve in ones goals even when
there are many problems. These abilities make the difference between
successful people and those who are not (Botha. S & Musengi.S, 2012:25).
- After going into business with her husband Nkosi decided to her own sub-
contracting business which she says did not turn out well. After that
disappointment she didnt give up on owning her own business she
decided to open a guest house instead and has many more plans for the
future.
4. Opportunity oriented
Successful entrepreneurs are opportunity oriented and opportunity oriented
people are continuously on the lookout for opportunity that could produce an
income for them (Botha. S & Musengi.S, 2012:26).
-Nkosi wants to establish more branches of the guest house around South
Africa.
1.6) Why so many organisations are advocating women entrepreneurs
The reason why so many organisations advocate women entrepreneurs is
because women see the world differently so they do things different not better
but different. Most women are also more goal-oriented, open-minded, realistic
and energetic when it comes to managing which differs from their male
colleague. And as they say women can do more than one task at a time which
means work can be done faster.
Question 2
2.1) Developing a business plan
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Megan Salomo Business Management
PT2014-2075 group
2
Creating the cover page and a contents page
This includes the full name of the organisation, the name of the entrepreneur, the
date on which the business plan will be accessible and also the full street
address. After creating the cover page, the contents page must be created this
page should include headings and page numbers (Botha. S & Musengi.S,
2012:34-35).
The business plan must have an introduction
This section covers the original description of the business by giving a brief
description of the product/ service that the business aims on offering. The
introduction also includes the objectives of the company and how they plan on
accomplishing these objectives (Botha. S & Musengi.S, 2012:35).
Description of the business
The business description should include things such as an over-all description of
the business, the uniqueness of the service, the form of ownership chosen, the
legal requirements that have to be followed and a SWOT analysis of the business
(Botha. S & Musengi.S, 2012:35).
Marketing plan
The marketing plan is the section that contains a description of the target market
which refers to the potential customers. The only way you can specify your target
market is by doing market segmentation. The marketing plan should also include
market potential calculations and the marketing mix strategies (Botha. S &
Musengi.S, 2012:35).
Financial plan
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Megan Salomo Business Management
PT2014-2075 group
2
The financial plan should show the total funds needed for the business and give a
breakdown of the fixed assets, stocks and operating expenses (Botha. S &
Musengi.S, 2012:35).
Operations plan
This section includes the human resources requirements, organisational structure
and the manufacturing process (Botha. S & Musengi.S, 2012:35).
Conclusion
In the conclusion the company has to say why they think they will be successful,
why they think they will be financially sustainable and lastly why someone should
invest in the company (Botha. S & Musengi.S, 2012:35).
2.2) a. The importance of planning in a business
Planning is important because it provides the foundation for the other
managerial purposes. Planning gives the organisation a sense of direction
and. Planning is also future oriented and allows an organisation to distribute
its strategic resource in the best way (Botha. S & Musengi.S,2012:128).
b. Nine planning step process that can enhance management of a business
The importance of planning a business is clear, but the importance of good
planning should be particularly emphasised. The following 9 steps can help to
improve the management of a new business.
1. Determine and state the organisational objectives.
The objective to this goal is to effectively start a new service that will appeal to
customers (Botha. S & Musengi.S,2012:135).
2. Assess threats and opportunities
Threats are likely to be tough competition from well-known companies,
whereas opportunities include potential partnerships that can be established
in other countries (Botha. S & Musengi.S,2012:135).
3. Assess strengths and weakness
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Megan Salomo Business Management
PT2014-2075 group
2
Strengths can be the element that most employees are highly qualified and
has very good marketing skills and the weaknesses is that employees have
very little experience in the business even though they are highly qualified
(Botha. S & Musengi.S,2012:135).
4. List alternative ways of reaching objectives
The manager of the company could use the following another possibility to
successfully introduce new services (Botha. S & Musengi.S,2012:135).
-a promotion
-a competition offering prices
-a formal event
5. Choose the best alternative for reaching objectives
This will gain both acknowledgement from its customers and increase its
sales (Botha. S & Musengi.S,2012:135).
6.Develop strategies to pursue the chosen alternative
Develop a plan of action which involves taking decisions on what must be
done (Botha. S & Musengi.S,2012:135).
7. Implement the plans
The implementation stage should get as much attention as the rest of the
planning process this helps to confirm that everything happens according to
plan (Botha. S & Musengi.S,2012:135).
8. Control and assess results
The company must estimate whether the plan has succeeded the desired
results (Botha. S & Musengi.S,2012:135).
9. Repeat the planning process.
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Megan Salomo Business Management
PT2014-2075 group
2
Planning is a constant process because the environment and forces that
affect organisations change continually. The manager of the company should
start planning the next event (Botha. S & Musengi.S,2012:135).
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Megan Salomo Business Management
PT2014-2075 group
2
Reference list
http://www.theamazingvillage.com/anna-phosa-one-of-south-africas-biggest-pork-
supplier.
Botha, S and Musengi, S (2012). Introduction to Business Management Fresh
Perspectives. South Africa: Juanita Pratt. Pg.1-305.
Business Management 1A: (2017).1st ed. Pierre Dietrichsen.
