, MNE1501 ASSIGNMENT 5 SEMESTER 1 ANSWERS - DUE DATE MAY 2026
QUESTION 1:
STRATEGIC MANAGEMENT AND SMALL BUSINESS GROWTH (25 MARKS)
1.1 How strategic management can help a small business grow and succeed (Sipho’s case)
Strategic management is a structured process of planning, organising, implementing, and
evaluating business decisions in order to achieve long-term goals and sustainable competitive
advantage (Strategic Management). In Sipho’s case, Inkosi Wear initially operated through
informal, intuitive decision-making where he simply reacted to customer demand, such as
printing more of the most popular T-shirts and handling orders personally.
While this helped him start the business, it created problems such as poor stock control, loss
of track of profitability, and operational inefficiencies. By adopting strategic management,
Sipho began to structure his business activities, set clearer goals, and identify opportunities
for expansion such as an online store and retail partnerships.
This shows that strategic management helps small businesses grow by improving decision-
making, increasing organisation, and aligning daily operations with long-term growth
objectives.
1.2 Benefits of using strategic management in a new venture
Strategic management provides several key benefits to new ventures like Inkosi Wear. Firstly,
it creates clear direction and purpose by helping entrepreneurs define long-term goals, such
as expanding from a local streetwear seller into a national brand. This improves focus and
reduces confusion in decision-making.
QUESTION 1:
STRATEGIC MANAGEMENT AND SMALL BUSINESS GROWTH (25 MARKS)
1.1 How strategic management can help a small business grow and succeed (Sipho’s case)
Strategic management is a structured process of planning, organising, implementing, and
evaluating business decisions in order to achieve long-term goals and sustainable competitive
advantage (Strategic Management). In Sipho’s case, Inkosi Wear initially operated through
informal, intuitive decision-making where he simply reacted to customer demand, such as
printing more of the most popular T-shirts and handling orders personally.
While this helped him start the business, it created problems such as poor stock control, loss
of track of profitability, and operational inefficiencies. By adopting strategic management,
Sipho began to structure his business activities, set clearer goals, and identify opportunities
for expansion such as an online store and retail partnerships.
This shows that strategic management helps small businesses grow by improving decision-
making, increasing organisation, and aligning daily operations with long-term growth
objectives.
1.2 Benefits of using strategic management in a new venture
Strategic management provides several key benefits to new ventures like Inkosi Wear. Firstly,
it creates clear direction and purpose by helping entrepreneurs define long-term goals, such
as expanding from a local streetwear seller into a national brand. This improves focus and
reduces confusion in decision-making.
