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MNE3701 ASSIGNMENT 03 SEMESTER 02 ANSWERS DUE 27 SEPTEMBER 2024

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MNE3701 ASSIGNMENT 03 SEMESTER 02 ANSWERS DUE 27 SEPTEMBER 2024 QUESTION 1 With reference to practical examples, critically discuss how you would finance your business. Motivate why you choose specific ways of financing over others. (10) QUESTION 2 With reference to practical examples, demonstrate how you would build customer relationship in your business. (10) 3 MNE3701 2024 ACADEMIC YEAR TURNOVER QUESTION 3 Conceptualise how you would apply your skills to develop your product and manage the supply chain of your business. Provide practical examples and motivation for the product strategies you may choose to develop your product. (20) This assessment will be assessed based on the below marking rubric: Score Criteria 31 to 40 • There is sufficient demonstration on how the student would finance his/ her business, with relevant motivation for choosing a specific method of business financing. • The student demonstrated relevant approaches to building strong customer relationship in his/her business. • There is sufficient conceptualisation on how the student would develop his/her product and manage the supply chain of the business. Relevant practical examples and motivation were used to back up his points. • There is sufficient evidence that the work was not plagiarised (any indication of plagiarism will end up the student scoring zero) • Content is summarised and professionally presented. • Write up indicates excellent understanding of approaches to financing a business, building customer relationship, develop the product and manage the supply chain of the business. • The description of the approaches to financing a business, building customer relationship, develop the product and manage the supply chain of the business, is appropriate and meaningful. • The demonstration is appropriate, meaningful and beyond the obvious. 17 to 30 • There is somewhat demonstration on how the student would finance his/ her business, with motivation for choosing a specific method of business financing. • The student somewhat demonstrated approaches to building strong customer relationship in his/her business. • There is somewhat conceptualisation on how the student would develop his/her product and manage the supply chain of the business. Somewhat practical examples and motivation were used to back up his points. 4 MNE3701 2024 ACADEMIC YEAR TURNOVER • There is evidence that the work was not plagiarised (any indication of plagiarism will end up the student scoring zero) • Content is somewhat summarised and presented. • Write up indicates somewhat understanding of approaches to financing a business, building customer relationship, develop the product and manage the supply chain of the business. • The description of the approaches to financing a business, building customer relationship, develop the product and manage the supply chain of the business, is somewhat appropriate and meaningful. • The demonstration is appropriate with substantial content. 0 to 16 • Content regurgitated. • Not consistently linked and integrated. Rather disjoint. • Description of the approaches to financing a business, building customer relationship, develop the product and manage the supply chain of the business, is inappropriate and superficial. • There is sufficient evidence that the student submitted a plagiarised work. TOTAL MARKS FOR ASSIGNMENT 3 [40] © UNISA

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Publié le
25 septembre 2024
Nombre de pages
9
Écrit en
2024/2025
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MNE3701 ASSIGNMENT 03 DUE 27
SEPTEMBER 2024




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, QUESTION 1
With reference to practical examples, critically discuss how you would finance
your business. Motivate why you choose specific ways of financing over
others. (10)
My chosen business is a salon business, I will consider the following financing
options:
To finance my salon business in the South African context, I would choose
government-backed loans and grants, particularly through the National Youth
Development Agency (NYDA) and the Small Enterprise Finance Agency (SEFA).
These agencies offer grants, loans, and other forms of support tailored to small
businesses.

One of the biggest advantages of opting for NYDA and SEFA loans is the low-
interest rates compared to commercial banks. In South Africa, high-interest rates
from commercial loans can overwhelm new businesses with heavy repayment
burdens. Government loans, however, are designed to support young entrepreneurs
by offering below-market interest rates and flexible repayment terms, making it
easier to start a salon without the pressure of hefty monthly repayments.

Both agencies also offer grants, especially for youth-owned businesses. Unlike
loans, grants do not need to be repaid, which significantly reduces the financial risk
involved in starting a business. For example, NYDA offers grants of up to R200,000,
which could be used to purchase critical salon equipment such as chairs, dryers, and
beauty products. This provides a solid financial foundation without the stress of debt.
(Guide to NYDA Funding,2024).

Beyond financing, both NYDA and SEFA provide access to business mentorship,
training, and networking opportunities. This is a critical advantage over traditional
bank loans, as young entrepreneurs often need more than just money to succeed.
The mentorship and business development services offered by these agencies are
particularly valuable for navigating the challenges of running a new business in the
competitive beauty industry.

While commercial bank loans are another option, they generally come with higher
interest rates and rigid repayment schedules. For example, a salon owner taking out
a loan from a bank like Standard Bank would face regular repayments regardless of
the salon’s cash flow. This can be a significant burden during the early stages of the
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