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MNB2601 ASSESSMENT 3 SEM 2 OF 2025 EXPECTED SOLUTIONS

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THIS DOCUMENT CONTAINS MNB2601 ASSESSMENT 3 SEM 2 OF 2025 EXPECTED SOLUTIONS. USE IT AS A GUIDE AND FOR REFERENCE PURPOSES.

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, Ques on 1: BCG Growth-Share Matrix Classifica on

Based on the Muyexe eco-friendly luxury resort case study, the project is best classified as a Ques on Mark (also known as a Problem
Child).

This classifica on is jus fied by the following points from the case study:

1. High Market Growth Poten al: The project is situated in a new, high-growth market. The imminent opening of the Shangoni
Gate to the Kruger Na onal Park is expected to "significantly increas[e] tourist traffic to the region," crea ng a rapidly
expanding market for eco-tourism. This aligns with the high market growth characteris c of a Ques on Mark (University of
South Africa, 2025).

2. Low Current Market Share: As a project s ll in the feasibility and planning stage, the resort currently holds no market share. It
is a new entrant aiming to establish itself. The case study highlights the "cri cal challenge of balancing commercial success,"
indica ng that its posi on is not yet secure, which is typical of a Ques on Mark business unit (Thompson, Strickland and
Gamble, 2022).

3. Significant Investment Requirements: The detailed plans for sustainable technologies (solar energy, water management),
specialised construc on (elevated pathways, wildlife corridors), and community programmes (voca onal training,
entrepreneurship support) all point to a venture requiring substan al ini al investment to compete, another key trait of a
Ques on Mark that needs cash to grow its market share.

Ques on 2: Financial Calcula ons

2.1 Expected Rate of Return

The expected rate of return is found by mul plying each outcome's probability by its return and adding the results:

 Extraordinary Boom: 0.10 × 25% = 2.5%
 Boom: 0.22 × 20% = 4.4%

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