EBUS1614 Business Management Case Study Test 2

 

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Assessment Brief:

• Topic: case study
• Subject: Business
• Number of Words: 2000
• Citation/Referencing Style: no referencing

 

QUESTION 1 [40 MARKS]

 

Please read the short case study below and answer the questions that follow.

 

In 1999, Eton Ziba was a cleaner with just R68 in his pocket, but he noticed a business opportunity. Good quality detergents and disinfectants could make a tough cleaning job much easier, so he started buying quality products in bulk and selling them to his fellow cleaners and households. He was not satisfied, though, he wanted a business that made and sold its products.

 

Eton started renting premises and employed two full-time assistants. Therefore, he tackled the long and arduous process of creating cleaning material and detergents that could pass strict regulations and compete with the best products on the market and eco- friendly products. It was not easy, but he kept at it. He only got his first real breakthrough in 2006 when a supermarket agreed to start stocking his products. Eton, saw an untapped market, today his detergents products can be found all over Africa and he counts Picky n Pay as one of his main clients. {Adapted from Nieuwenhuizen, C. & Nieman, G. 2019}

 

1.1.      What is the target market of the Eton Ziba business? [1 x 2 = 2]

 

• Explain to Eton what is the expected market share? [1 x 2 = 2]

 

1.2.1      Eton Ziba is not sure how to determine the expected market share. Explain to him how to determine the expected market share for his business. [1 x 3 = 3]

 

• Identity and explain one positioning method that is used by Eton’s business. Motivate your answer from the case study. [1 x 3 = 3]

 

• Explain four (4) reasons to Eton why it is important to conduct a market research before they enter new markets in Africa. [1 x 4 = 4]

 

• Discuss three (3) gaps Eton Ziba’s business should bridge to ensure successful marketing can be possible. [3 x 2 = 6]

 

• List and explain two (2) bases of market segmentation that are used by Eton Ziba’s Motivate from the case study. [2 x 3 = 6]

 

• Eton Ziba is confused about how to differentiate between various costs. Explain to him the difference between fixed cost and variable cost.
  • Give examples of each, relevant to Eton’s business. [2 x 2 = 4]

 

• Assume the following: the cost of manufacturing one cleaning detergent is R70. The business charges a mark-up profit of 40% per Eton received an order of 500 detergent cleaners from a client. Calculate the total mark-up profit for this order. [1 x 5 = 5]

 

• Eton Ziba’s business strive to manufacture “eco-friendly products”. Explain the principle of the marketing concept that is being applied in the business. [1 x 2 = 2]

 

• Indicate which business structure you would recommend as more suitable for Eton Ziba and give two (2) advantages of that business structure. [1 x 3 = 3]