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1.Woodsy is a garden furniture manufacturing company, which employs30 people. It buys its timber in uncut form from a local timbermerchant, and stores the timber

1.Woodsy is a garden furniture manufacturing company, which employs30 people. It buys its timber in uncut form from a local timbermerchant, and stores the timber in a covered area to dry out and seasonbefore use. Often this takes up to two years, and the wood yard takes upso much space that the production area is restricted.

The product range offered by the company is limited to themanufacture of garden seats and tables because the owner-manager, BillThompson, has expanded the business by concentrating on the sale ofthese items and has given little thought to alternative products. Billis more of a craftsman than a manager, and the manufacturing area isanything but streamlined. Employees work on individual units at theirown pace, using little more than a circular saw and a mallet and woodenpegs to assemble the finished product. The quality of the finished itemsis generally good but relatively expensive because of the productionmethods employed.

Marketing has, to date, been felt to be unnecessary because thepremises stand on a busy road intersection and the company's productsare on permanent display to passing traffic. Also, satisfied customershave passed on their recommendations to new customers. But things havechanged. New competitors have entered the marketplace and Bill has foundthat orders are falling off. Competitors offer a much wider range ofgarden furniture and Bill is aware that he may need to increase hisproduct range, in order to compete. As the owner-manager, Bill is alwaysvery busy and, despite working long hours, finds that there is neverenough time in the day to attend to everything. His foreman is a worthyindividual but, like Bill, is a craftsman and not very good atman-management. The overall effect is that the workmen are left verymuch to their own devices. As they are paid by the hour rather than bythe piece, they have little incentive to drive themselves very hard.

Required:

(a)Explain what is meant by the terms 'value chain' and 'value chain analysis'?

(5 marks)

(b)Use a diagram to give a brief explanation of the two different categories of activities that Porter describes.

(5 marks)

(c)Analyse the activities in the value chain to identify the key problems facing Woodsy.

(5 marks)

(d)Based on your analysis, prepare a set ofrecommendations for Bill Thompson to assist in a more efficient andeffective operation of his business.

(5 marks)

2.Explain the term 'Business process re-engineering' and how itsapplication might enable overall business performance to be improved.Briefly discuss potential problems which may be encountered in theimplementation of a business re-engineering programme.

Briefly discuss give acts that may be regarded as criminal offences by company officers or directors

3.Buhle, a single mom with a seven year old daughter wants to open her own interior decorating business. She has inherited R1 million from her late grandmother and wants to use R100 000 of this money to start the business. Her suppliers have agreed to extend her credit totalling R500 000.

a. Buhle is not sure if she should become a sole trader or go to the expense of registering a company.

Advise her based on the above facts

4.Buhle comes across premises that would be perfect for her business. Supposing she had decided to form a company but had not yet done so, what could she do to ensure that she does not lose the opportunity to lease the premises?

5.John is hired but his contract describes him as an independent contractor. He has to work from 07:00 to 16:00 Monday to Friday and reports to the transport manager who gives him his daily delivery schedule.

When he is not doing deliveries he is required to wash vehicles and clean the yard.

After a month he requests two days leave but is told that as an independent contractor he does not get paid leave.

Advise him.

6.Suppose between deliveries John decides to visit his girlfriend.

After spending an hour at her flat he bumps the car in front as he is pulling away to drive to the next delivery.

Is Shady Juice Co liable for the damage he caused?

Discuss

7.Portia is employed as a management accountant. After a month she discovers that she is pregnant.

She is scared to tell her boss in case she is fired. What should she do?

8.hree months into her job Portia is stopped by security at the gate one afternoon on her way out. They find two expensive laptop computers in her car. They call her manager and she is fired on the spot. Discuss the lawfulness of her dismissal.

9.Would it have made a difference if they had only found 2 litre packs of Shady Juice in her car.

10.Explain the difference between an instrument "payable to bearer" and one "payable to order"

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