UNIVERSITY OF THE FREE STATE

EBUS1514

DEPARTMENT: BUSINESS MANAGEMENT

TEST 2: 29 March 2019

ASSESSOR(S): 1. Ms. L Masoabi

2. Ms. M Mafojane
3. Ms. A van Noordwyk

MODERATOR: Dr W Vermeulen

TIME: MARKS:

Section A [12 marks]

Answer questions 1 to 12 by identifying the correct letter and writing it on your answer
sheet (e.g. 1 D).

1. When Samsung uses it’s resources wisely and in a cost-effective manner to

manufacture televisions, it demonstrates ________ in the Samsung Company.

a. effort
b. efficiency
c. effectiveness
d. eagerness
(1)

2. You are employed as a manager by Spar to oversee the activities for the product
packers in the store. On which managerial level do you operate?

a. Strategic (top)
b. Functional (middle)
c. Operational (front-line)
d. None of the above
(1)

3. The marketing manager of Instagram allocates different tasks to his marketing team,
with the necessary power and responsibilities, to ensure that the public is aware of
Instagram as a form of social media. This statement displays _____________ as an
additional management function.

a. delegation
b. discipline
c. communication
d. motivation
(1)

1|Page
4. All the activities concerned with procuring, developing, compensating, integrating and
retaining personnel is part of which business function?

a. Purchasing
b. Public Relations
c. Human Resource
d. Marketing
(1)

5. In market targeting; if a business focus on one specific market segment for their
product offering it is known as:

a. Differentiated targeting
b. Concentrated targeting
c. Undifferentiated targeting
d. None of the above
(1)

6. All products or services move through the different phases of the product lifecycle.
Think about communication, today and a few years back; these days we have cell
phones and tablets. A few years back people could still use public pay phones to make
phone calls. Consider these public pay phones, in which phase of the product lifecycle
will it be placed?

a. Introductory phase
b. Growth phase
c. Maturity phase
d. Decline phase
(1)

7. In the introductory phase of the product life cycle a marketer needs to decide how they
will price their product. Which of the following is not a pricing strategy that a marketer
can use?

a. Average skimming
b. Rapid penetration
c. Slow penetration
d. Low skimming
(1)

8. Comfort, the fabric softener brand, has invested in an advertising campaign to try and
convince consumers that no other product in the market can leave clothes smelling
fresh for a long period of time. Which communication objective is Comfort focusing on:

a. Inform
b. Remind
c. Stimulate
d. Persuade
(1)

2|Page
9. An organisation can have numerous external publics. Which of the following is not an
example of an external public?

a. Government
b. Suppliers
c. Shareholders
d. Media
(1)

10. Lobbying is about building relations with influential people in different levels of
industries.

a. True
b. False
c. It depends on the industry
d. None of the above
(1)

11. _________ is primarily used to communicate with rural publics, people from different
ethnic groups, culture, languages and lives beyond the reach of mass communications
media.

a. Oramedia
b. Transit advertising
c. Newspapers
d. In-store media
(1)

12. There are many ways to use Blogs in PR and marketing, these include.

a. To spread the news; To monitor what is being said about your company; Take
part in conversations; Change perceptions.
b. To attract and sustain customers; To Monitor what is being said about your
company; Take part in conversations; Contributing own content.
c. To spread the news; To Monitor what is being said about your company; Take
part in conversations; Contributing own content.
d. To spread the news; To Monitor what is being said about your company; Take
part in conversations; Contributing own content; to attract influencers.
(1)

Section B [18 marks]

Question 1 (8 marks)

Vodafone’s CEO, Nick Read told reporters that they have decided to pause further purchases
of Huawei products used in the core of Vodafone’s wireless networks. This happened after
US President Donald Trump’s administration has been pushing it’s European allies to block
Huawei from their telecoms networks, citing fears that China could use its equipment for
spying, something Huawei’s executives have denied. The effect of this decision on the South
African market is not immediately clear, but will be discussed in upcoming meetings with the
UK-headquartered Vodafone and South Africa’s Vodacom Group.
Adapted from : https://techcentral.co.za/sa-impact-unclear-as-vodafone-suspends-some-huawei-purchases/86897/

3|Page
1.1 Identify one (1) management skill displayed in the scenario. Motivate your answer from
the scenario.
(1 + 1 = 2)

1.2 Identify one (1) resource (input) displayed in the scenario. Motivate your answer from
the scenario.
(1 + 1 = 2)

1.3 Name and explain any two (2) fundamental management functions businesses use.
(2 + 2 = 4)

Question 2 (5 marks)

Fernando is interested in starting a private waste removal business in Bloemfontein. After

doing some research he found that customers want an affordable service that will collect waste
on a weekly basis. He also realised that Bloemfontein can be divided into different suburbs
according to their location, but that some of the suburbs are already serviced by other private
waste removal businesses.

2.1 Identify the type (base) of market segmentation displayed in the scenario. Motivate
your answer from the scenario.
(1 + 1 = 2)

2.2 Name the three (3) variables of the marketing mix displayed in the scenario.
(3 x 1 = 3)

Question 3 (5 marks)

Delicious Burgers are known for their tasty and juicy burgers in Bloemfontein, but Palesa did
not have the best experience with the famous burger restaurant recently. She bought a take-
away burger and chips from the restaurant, but to her surprise, the burger had a rotten smell
and was not so juicy and delicious. She then tweeted about the incident on her social page
changing the name of the restaurant from “Delicious Burgers” into “Nasty Burgers” and she
has since been sharing the tweet with her family and all her friends and also tagged Delicious
Burgers on the post.

3.1 Did Palesa use sold media, paid media or hijacked media in the scenario? Support
your answer from the scenario.
(1 + 1 = 2)

3.2.1 Name the type of online media channel Palesa used in the scenario.
(1)

3.2.2 Palesa made use of an online media channel to inform Delicious Burgers about the
incident. Delicious Burgers can now respond to Palesa by either using a traditional
media channel or an online media channel. Remind Delicious Burgers about one (1)
difference between traditional and online PR.
(1 + 1 = 2)
End of the paper

Total = 30 marks

4|Page