Mr. Jabulani Mshe has been a successful businessman for years. He grew up in the township of Soshanguve, North of Pretoria. When growing up, his
Mr. Jabulani Mshe has been a successful businessman for years. He grew up in the township of Soshanguve, North of Pretoria. When growing up, his dream was to build a successful business and contribute to the social development in the area. After graduating from University, he had the opportunity to work for several firms in the Pretoria area. However, his interest was always to have his own business. In the year 1999, he decided to quit his job and focus on establishing his own business. He started small by selling cool drinks in Soshanguve. Through his networking he was able to build good relationships with wholesalers who were able to give him better prices. He would then pass on these as discounts to his customers. The business grew because people were attracted by the low prices. Although he was selling directly to the public, other big businesses like restaurants and major hotels were also his clients. The business was very profitable. By 2010 Jabulani's business had accumulated wealth and he felt he need to grow it. He then decided to build a factory not far from where he was operating at the time. The place was an unoccupied land which had not been used by government for years. It was close to a Fire Station. Government had a vision of expanding the Fire Station, but this never materialised. Jabulani made an offer to government to purchase the land. Since Jabulani was already active in the community, government decided to sell the land to him on condition that he would continue to plough back to the community through creating employment opportunities and social development.In early 2011, Jabulani opened his new factory called Jabu's Beverages. He hired over 180 people in the Soshanguve area. He decided to close the small business of selling cold drinks in the area so that he could concentrate on his new factory. The old business had 20 people; these people were absorbed in the new factory. The factory specialised in manufacturing various healthy fruit juices. The factory was selling directly to the public and distributing to other businesses within the food industry. The idea of selling directly to the public was to offer people the opportunity of growing their businesses by selling the products from Jabu's Beverages. The demand for the fruit juices grew and Jabu's Beverages was becoming more successful. Jabu's Beverages decided to fund a local football tournament in Soshanguve. This continued for several years and it also improved the reputation of his business. In 2018 Jabu's Beverages experienced a decline in the demand of his products. This was largely due to market conditions. It was a tough year for many businesses during the time, especially in the food industry. Jabu started pulling away from a few social responsibilities in the area because he wanted to plough more to the business. After five years of sponsoring the football tournament, the business decided to cut the sponsorship. The fire station next to Jabu's Beverages would normally host an annual event at the station to create safety awareness on fire hazards. After 6 years of playing an active role in this, he also decided to stop taking part in the event to save costs.Later during 2018, Jabu's Beverages was also neglecting many safety and health procedures within the factory to save costs. Many employees did not feel safe. At times there will be safety incidents in the factory, but they would not be followed up to improve the conditions. The factory was also becoming inefficient with its water usage to an extent that it was seriously affecting the neighbourhood. When informed by the locals, government tried to intervene in this, but Jabulani made empty promises which were never fulfilled. The situation angered many locals, and the business was longer the pride of the township anymore. Many employees were also resigning from the company to seek better working conditions. A tragic incident happened in 2019, the whole factory burnt down, but no one was harmed. Upon investigation it turned out to be a faulty electrical wire that started the fire. The fire station next to his business could not save it either on that day, the fire hydrant on the premises was faulty. This was part of the inefficiencies of water supply caused by Jabu's Beverages over a long period of time. Although the business had an insurance cover, the insurance company refused to pay forthe full damage after receiving the report from the authorities. Therefore, Jabulani had to raise more income to re-establish the business. As part of resuscitating his business, Jabulani wanted to change the way he was operating the business, especially towards the end. He has hired you as an advisor. Answer the following questions in relation to your advisory services.QUESTIONS: 1. What advice can you give him regarding the levels of management so that effectiveness and efficiency can be maintained throughout the business? Also reflect on the skills that will be required at these levels (10) 2. Reflect on the goals of responsible management and how this new business can ensure that it achieves these. (15) 3. How can the business ensure that it sustains its development? Reflect also on the pillars of sustainable development. (15) 4. How can the business play part in Corporate Social Responsibility and ensure it sustains it for long term? (10) 5. How can the business ensure that it acts ethically towards its customers and employees? (15) 6. Planning will now be central to the re-establishment of the business. Broadly describe what should be in the strategic, tactical and operational plans? (20) 7. Discuss what can be in the responsible management balanced scorecard for this organisation. What should each perspective address? (15)
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