MAC3703 Assignment 2 Semester . Questions with 100 correct and verified answers. LATEST 2024 UPDATE. GUARANTEED A+.

QUESTION 1 (30 MARKS) Mrs Sindy Lula has been in the financial Services Sector for more than 20 years and is considering a career shift. At present, she is a credit provider (mashonisa) where she owns and runs the money lending business throughout the Eastern Cape under the name BZN Agri-Retailers (PTY) LTD. Having been in this business for more than 20 years, she has grown bored of the business and is considering selling it to a competitor and venture into landscaping and be a landscape designer. She intends to focus on: 1. Garden designs 2. Kids play areas MAC3703/Assignment 2/2023 4 3. Swimming pot Mashonisa (credit providers) is part of the financial services market. Most Mashonisas are illegal and unregulated lenders that operate without compliance with the National Credit Act (NCA). Mashonisas offer loans that don't require formal documents to be filled out. Although they are not registered with NCA, the lender who harasses the borrower is breaking the law and can be reported to NCA and to the police. Mashonisas are very popular is South Africa because of the speed, the convenience, no credit checks requirements, simplicity and fixed interest rates. There are no specific educational requirements for a credit provider (Mashonisa). Some Mashonisas are registered with NCA so as the have the competitive advantage. According to the Wonga report, “The NCR is currently embarking on a campaign to get all unregistered credit providers registered, through the mobile registration office that moves around the country to assist unregistered credit providers to register. In addition the unregistered credit providers are continuously referred to the tribunal so that fines can be imposed on them for operating a business of a credit provider without a licence.” Mrs Sindy Lula’s company is registered with NCA and is a private company registered with CIPC. The company has very few compliance requirements. Landscaping is very different. It is part of the landscaping products market and is subject to a plethora of rules and standards concerning the advice and service that landscapers can give. Certain projects/sites may require and have in place an Environmental Management Plan (EMP), an Environmental authorization or a Water use license. In these instances, it is critical that the landscaping company obtains copies of these documents and takes note of the requirements up front to ensure that all work on-site is undertaken in accordance with these legal requirements. At times external environmental auditors or the “Green scorpions” may visit projects to confirm compliance with the authorization, license or EMP requirements. The landscaping industry is a very competitive space to work in, especially when businesses are within close geographical range to one another. It’s a constant battle and the landscaper must know what she is up against. Who’s taking her share of the market? Or better yet, whose market share does she seek to gain? The landscaper must have qualifications and must be a member of South African Landscaping Institute and must comply with landscape standards. MAC3703/Assignment 2/2023 5 REQUIRED: (a) For each of the markets in turn discuss with reasons whether you feel the level of orchestration is loose or tight and whether the complexity in the market is low or high. (12 Marks) For the Credit Provider (Mashonisa) Market: Level of Orchestration: Loose Complexity: Low Reasoning: The Credit Provider (Mashonisa) market, as described, operates with relatively loose orchestration. Most Mashonisas are informal and unregulated lenders, and they don't require formal documentation for loans. This lack of formal structure indicates a loose level of orchestration. Furthermore, the absence of specific educational requirements and the fact that some providers are unregistered with the National Credit Act (NCA) contribute to the loose nature of this market. Additionally, the complexity in this market is relatively low. The primary offerings are simple loans with fixed interest rates. There are no strict compliance requirements for many Mashonisas, and the business model is straightforward. While some providers may choose to register with the NCA, the market itself remains relatively uncomplicated. (b)In each case, outline which ecosystem archetype (Hornet’s Nest, Lion’s Pride, Shark Tank or Wolf Pack) is so depicted and the consequences of this on the strategy to be followed. (13 Marks) (Total: 25 marks) Hornet's Nest Consequences on Strategy: Given the loose orchestration and low complexity in the Mashonisa market, it can be categorized as a Hornet's Nest. In this archetype, competition may be intense, but the lack of stringent regulations and low complexity can allow Mrs. Sindy Lula to enter the market relatively easily. She should focus on differentiating her services, perhaps by providing better customer service or additional benefits to borrowers, to gain a competitive advantage. For the Landscaping Market: Level of Orchestration: Tight Complexity: High Reasoning: The Landscaping market, as described, operates with tight orchestration due to the numerous rules, standards, and legal requirements that landscapers must adhere to. Projects/sites may require various environmental documents, including Environmental Management Plans (EMPs), Environmental authorizations, or Water use licenses. Compliance with these requirements is essential, indicating tight orchestration. Furthermore, being a member of the South African Landscaping Institute and complying with landscape standards are prerequisites, adding to the tight orchestration. The presence of external environmental auditors and the "Green scorpions" overseeing compliance further reinforces the tight nature of this market. (b) Ecosystem Archetype for the Landscaping Market: Shark Tank Consequences on Strategy: The Landscaping market aligns more with the Shark Tank archetype. It's highly competitive, with strict regulations and standards in place. Mrs. Sindy Lula will need to invest in education, certifications, and compliance to even enter this market. Building a strong reputation and relationships within the industry will be crucial. Additionally, differentiation through unique design concepts, exceptional service, or specialization in certain types of landscaping projects can help her thrive in this competitive, tightly orchestrated ecosystem.