ABSTRACT
WELCOME TO GREAT MINDS TUITION
CLUB!!!!EXTRA CLASSES DONE RIGHT,
EXPLAINING THE WHY IN ORDER TO
PROPERLY UNDERSTAND THE HOW.FOR
A QUOTE AND MORE INFORMATION
PLEASE CONTACT 0613610251
BSM1501
BSM1501 ASSIGNMENT 2 SEMESTER 1 2020
,
, BSM1501
Business Management 1A
Assignment 02 for Semester 01 (compulsory)
Unique Number 634218 Due:
03 April 2020
Note that all answers are extracted from the prescribed book: “ Entrepreneurship and how to establish
your own business – sixth edition and / or the study guide.
PLEASE NOTE
Study Chapters 1 to 6 thoroughly before you answer this assignment. Read
the case study below and answer all the questions that follow.
Case Study: CeleBAKEtion
Celest Bennet’s worked in the bakery of a Spar in Pretoria for eight years. Three years ago, she resigned
and started her own enterprise, CeleBAKEtion, which she registered as a sole proprietorship. The
enterprise was located in a small centre near Hatfield close to the Gautrain station. Her product range
consisted only of freshly baked cakes of all shapes, sizes and flavours. Her target market consisted
mostly of businesses and people who worked in the immediate vicinity of the enterprise. Celest
invested R60 000 of her own capital in the enterprise, but this amount was not nearly enough to cover
her expenses. She had to buy ovens, kitchen equipment, counters and a till. To finance this, she took
out a loan of R150 000, which she planned to pay back over five years. She also applied for a bank
overdraft to finance her initial stock and to pay salaries and expenses for the first few months.
Celest employed three employees – a baker, saleslady and administrative assistant. She bought her
ingredients such as flour, sugar, butter and eggs, from a wholesaler in Hatfield. Celest’s cakes became
well-known in the area. Local cafés and businesses started ordering pies from her. They encouraged
her to include other confectionary products in her product range and suggested that she consider
catering for small functions in the area. Celest tried it on a trial basis and it was such a success that
she started doing it on a full-time basis. Other businesses in the surrounding areas also heard of her
catering services and started using CeleBAKEtion to cater for their office functions.
Celest’s products became so popular that she could not supply enough to satisfy the growing demand.
She realised that the capacity of her enterprise was far too small and decided to move to bigger
premises. This decision, however, meant that she would need more employees and more capital. She
decided to involve two of her friends in the enterprise to accumulate more capital and they registered
the new enterprise as a partnership. Celest invested R60 000 of her own capital in the partnership and
her friends contributed R20 000 each.
WELCOME TO GREAT MINDS TUITION
CLUB!!!!EXTRA CLASSES DONE RIGHT,
EXPLAINING THE WHY IN ORDER TO
PROPERLY UNDERSTAND THE HOW.FOR
A QUOTE AND MORE INFORMATION
PLEASE CONTACT 0613610251
BSM1501
BSM1501 ASSIGNMENT 2 SEMESTER 1 2020
,
, BSM1501
Business Management 1A
Assignment 02 for Semester 01 (compulsory)
Unique Number 634218 Due:
03 April 2020
Note that all answers are extracted from the prescribed book: “ Entrepreneurship and how to establish
your own business – sixth edition and / or the study guide.
PLEASE NOTE
Study Chapters 1 to 6 thoroughly before you answer this assignment. Read
the case study below and answer all the questions that follow.
Case Study: CeleBAKEtion
Celest Bennet’s worked in the bakery of a Spar in Pretoria for eight years. Three years ago, she resigned
and started her own enterprise, CeleBAKEtion, which she registered as a sole proprietorship. The
enterprise was located in a small centre near Hatfield close to the Gautrain station. Her product range
consisted only of freshly baked cakes of all shapes, sizes and flavours. Her target market consisted
mostly of businesses and people who worked in the immediate vicinity of the enterprise. Celest
invested R60 000 of her own capital in the enterprise, but this amount was not nearly enough to cover
her expenses. She had to buy ovens, kitchen equipment, counters and a till. To finance this, she took
out a loan of R150 000, which she planned to pay back over five years. She also applied for a bank
overdraft to finance her initial stock and to pay salaries and expenses for the first few months.
Celest employed three employees – a baker, saleslady and administrative assistant. She bought her
ingredients such as flour, sugar, butter and eggs, from a wholesaler in Hatfield. Celest’s cakes became
well-known in the area. Local cafés and businesses started ordering pies from her. They encouraged
her to include other confectionary products in her product range and suggested that she consider
catering for small functions in the area. Celest tried it on a trial basis and it was such a success that
she started doing it on a full-time basis. Other businesses in the surrounding areas also heard of her
catering services and started using CeleBAKEtion to cater for their office functions.
Celest’s products became so popular that she could not supply enough to satisfy the growing demand.
She realised that the capacity of her enterprise was far too small and decided to move to bigger
premises. This decision, however, meant that she would need more employees and more capital. She
decided to involve two of her friends in the enterprise to accumulate more capital and they registered
the new enterprise as a partnership. Celest invested R60 000 of her own capital in the partnership and
her friends contributed R20 000 each.
