PU E
SHI C
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OU TO THE GATE OF EXCEL L EN
Education is the most powerful weapon which you can use to change the world
,EXCELCENTRE LEARNING INSTITUTE 061 043 9805
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Education is the most powerful weapon which you can use to change the world
,EXCELCENTRE LEARNING INSTITUTE 061 043 9805
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In 1997, the gigantic media-services provider Netflix was born. At this stage, the model
offered customers monthly subscriptions to have DVDs posted to their door. This meant
they could avoid the late fees, which the traditional movie rental business imposed upon
customers. From the beginning, Netflix proved to be a disruptive organisation, which has
likely contributed to its capability to transform and adapt to the digital world. Netflix
followed a ____ business-unit-level strategy by offering customers a monthly subscription
to have movies posted, allowing them to avoid the late fees.
a.
focused differentiation
b.
focused low-cost
c.
diversification
d.
cost leadership
Question 2
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Jonathan Bradfield has been farming for 42 years and is currently the owner of
Limestone Hill, outside Bathurst in the Eastern Cape. Jonathan farms mainly with
pineapples together with his sons-in-law, Anton Ferreira and Albert van der Westhuizen.
In 2006, Limestone Hill was nearly ruined when the toxic metal cadmium was found in a
consignment of canned pineapples in Europe. A multi-national fertiliser distributor
imported low-grade zinc-sulphate from Asia that contained high concentrations of
cadmium and lead. It contaminated the local export of canned pineapple rings, and
South Africa’s reputation as a pineapple producer was scarred. At the time, it was a
catastrophe as no one knew where it was going to end. The problem was discovered in
Switzerland while testing a batch of canned pineapples imported from South Africa. The
entire shipment had to be returned as it could not be established which of the cans
contained the toxic metal. This was a tremendous loss for Limestone Hill, as most of their
annual produce was included in this shipment. Bradfield explained that the juice of
pineapples is more easily tested, as you can juice a large batch of pineapples and
afterwards ensure the cadmium levels are within the acceptable limit before bottling. The
overall pineapple industry, as well as Limestone Hill, started concentrating more on
juicing instead of only canning pineapples to prevent such large losses of product and
revenue from occurring again. Considering the cadmium contamination, the decision to
focus on juicing of pineapples can be regarded as a/n ____ for Limestone Hill.
a.
Education is the most powerful weapon which you can use to change the world
, EXCELCENTRE LEARNING INSTITUTE 061 043 9805
strength
b.
opportunity
c.
threat
d.
weakness
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Sappi is a global diversified wood fibre company focusing on providing dissolving pulp,
packaging and speciality papers, graphic papers as well as biomaterials and
biochemicals to their direct and indirect customer base across more than 150
countries. Sappi Southern Africa operates five mills and has a combined production
capacity of 102,000 m3 of structural lumber, 690,000 tons of paper, 633,000 tons of
paper pulp and over a million tons of dissolving pulp per annum. The pulp purchased by
their European business is effectively hedged by Sappi Southern Africa being a net
seller of pulp. Considering Sappi’s structure each unit indicated (Sappi North America,
Sappi Europe, Sappi South Africa and Sappi Trading) also has functional departments
such as finance, human resources and procurement.
Sappi makes use of a _____ organisational structure.
a.
holding company
Education is the most powerful weapon which you can use to change the world