Exam
(elaborations)ETP2601
Assignment 4
Semester 1 | Due 8
May 2025
NO PLAGIARISM
[Pick the date]
[Type the company name]
,Question 1: Explain to Ntuthuko how important setting goals is for his livestock business
(10)
Setting goals is crucial for Livestock Wealth as it provides direction, focus, and a framework
for decision-making and resource allocation. Ntuthuko Shezi has clearly stated ambitions, such
as “lowering the barrier to entry for millions of aspirant farmers” and “giving ordinary citizens
an opportunity to invest in agriculture.” These are long-term strategic goals that guide
expansion into areas like macadamia trees, sugar cane, maize, and smart gardens.
By setting clear and measurable goals, Ntuthuko ensures that all stakeholders, including
investors and partner farmers, understand the business's vision. It allows the business to track
performance, evaluate ROI (e.g. “paid out almost R5 million in dividends”), and adjust
strategies accordingly. Moreover, goal setting fosters motivation and alignment across the
organization, especially as the company expands partnerships (e.g., with Woolworths and
Cavalier Foods).
Question 2.1: Use both qualitative and quantitative criteria to unpack the definition of
small business (8)
A small business can be defined using:
Qualitative criteria:
o Ownership: Independently owned and operated.
o Management: Usually managed directly by the owner.
o Market reach: Operates locally or regionally.
o Decision-making: Flexible and informal processes.
o Staff: Employs fewer people with less specialization.
Quantitative criteria:
o Number of employees: Often fewer than 200.
o Annual turnover: Depends on the sector but usually below R10 million – R50
million in South Africa.
o Total asset value: Relatively low compared to medium or large businesses.
Question 2.2: Where would you classify Livestock Wealth in terms of business size and
why? (3)
Livestock Wealth would be classified as a medium-sized enterprise. Although it started small
in 2015 with only 26 cattle, it now manages over R20 million worth of cattle, has 800 investors
globally, and has expanded into multiple agricultural products. Its scale of operations,
partnerships with large retailers, and technological infrastructure suggest it exceeds small
business limits.
, Question 3: Explain to Ntuthuko the principle of SMART goals as he embarks on setting
business goals for Livestock Wealth (4)
Ntuthuko should use SMART goals, which are:
Specific: Clearly defined (e.g., “expand into vegetable gardens and macadamia trees”).
Measurable: Outcomes can be tracked (e.g., “R80 000 return from macadamia trees”).
Achievable: Realistic, considering available resources and market demand.
Relevant: Aligned with business vision (e.g., democratizing agricultural investment).
Time-bound: Includes a timeline (e.g., “12-month investment options”).
Applying SMART goals ensures Livestock Wealth remains focused, strategic, and results-
driven.
Question 4: Identify and discuss the five factors Livestock Wealth needs to take into
consideration when deciding on a promotional mix. Include extracts. (10)
1. Target Market:
o Factor: Understanding who the product is for.
o Case extract: “Offers people with no access to land, time or skills the opportunity
to own livestock.”
o Explanation: Promotions should be aimed at urban professionals and diaspora
investors seeking alternative investments.
2. Product Nature:
o Factor: The characteristics of the product/service.
o Case extract: “Invest in cows…macadamia trees…connected garden systems.”
o Explanation: Education-focused promotions (infographics, webinars) are needed
to explain how intangible farm assets work.
3. Budget:
o Factor: Resources allocated to marketing.
o Case extract: “Multimillion-rand growth…partnered with Woolworths.”
o Explanation: The company has the capital to fund professional marketing
strategies, including digital campaigns and influencer marketing.
4. Distribution Channels:
o Factor: Where and how the product is sold.
o Case extract: “Buy online from the partner farmer…view and track the plants via
the app.”
o Explanation: Focus on digital platforms, SEO, and app store visibility to drive
online investments.
5. Competitors:
o Factor: Market competition.
o Case extract: “Investors prefer assets not influenced by financial market trends.”
(elaborations)ETP2601
Assignment 4
Semester 1 | Due 8
May 2025
NO PLAGIARISM
[Pick the date]
[Type the company name]
,Question 1: Explain to Ntuthuko how important setting goals is for his livestock business
(10)
Setting goals is crucial for Livestock Wealth as it provides direction, focus, and a framework
for decision-making and resource allocation. Ntuthuko Shezi has clearly stated ambitions, such
as “lowering the barrier to entry for millions of aspirant farmers” and “giving ordinary citizens
an opportunity to invest in agriculture.” These are long-term strategic goals that guide
expansion into areas like macadamia trees, sugar cane, maize, and smart gardens.
By setting clear and measurable goals, Ntuthuko ensures that all stakeholders, including
investors and partner farmers, understand the business's vision. It allows the business to track
performance, evaluate ROI (e.g. “paid out almost R5 million in dividends”), and adjust
strategies accordingly. Moreover, goal setting fosters motivation and alignment across the
organization, especially as the company expands partnerships (e.g., with Woolworths and
Cavalier Foods).
Question 2.1: Use both qualitative and quantitative criteria to unpack the definition of
small business (8)
A small business can be defined using:
Qualitative criteria:
o Ownership: Independently owned and operated.
o Management: Usually managed directly by the owner.
o Market reach: Operates locally or regionally.
o Decision-making: Flexible and informal processes.
o Staff: Employs fewer people with less specialization.
Quantitative criteria:
o Number of employees: Often fewer than 200.
o Annual turnover: Depends on the sector but usually below R10 million – R50
million in South Africa.
o Total asset value: Relatively low compared to medium or large businesses.
Question 2.2: Where would you classify Livestock Wealth in terms of business size and
why? (3)
Livestock Wealth would be classified as a medium-sized enterprise. Although it started small
in 2015 with only 26 cattle, it now manages over R20 million worth of cattle, has 800 investors
globally, and has expanded into multiple agricultural products. Its scale of operations,
partnerships with large retailers, and technological infrastructure suggest it exceeds small
business limits.
, Question 3: Explain to Ntuthuko the principle of SMART goals as he embarks on setting
business goals for Livestock Wealth (4)
Ntuthuko should use SMART goals, which are:
Specific: Clearly defined (e.g., “expand into vegetable gardens and macadamia trees”).
Measurable: Outcomes can be tracked (e.g., “R80 000 return from macadamia trees”).
Achievable: Realistic, considering available resources and market demand.
Relevant: Aligned with business vision (e.g., democratizing agricultural investment).
Time-bound: Includes a timeline (e.g., “12-month investment options”).
Applying SMART goals ensures Livestock Wealth remains focused, strategic, and results-
driven.
Question 4: Identify and discuss the five factors Livestock Wealth needs to take into
consideration when deciding on a promotional mix. Include extracts. (10)
1. Target Market:
o Factor: Understanding who the product is for.
o Case extract: “Offers people with no access to land, time or skills the opportunity
to own livestock.”
o Explanation: Promotions should be aimed at urban professionals and diaspora
investors seeking alternative investments.
2. Product Nature:
o Factor: The characteristics of the product/service.
o Case extract: “Invest in cows…macadamia trees…connected garden systems.”
o Explanation: Education-focused promotions (infographics, webinars) are needed
to explain how intangible farm assets work.
3. Budget:
o Factor: Resources allocated to marketing.
o Case extract: “Multimillion-rand growth…partnered with Woolworths.”
o Explanation: The company has the capital to fund professional marketing
strategies, including digital campaigns and influencer marketing.
4. Distribution Channels:
o Factor: Where and how the product is sold.
o Case extract: “Buy online from the partner farmer…view and track the plants via
the app.”
o Explanation: Focus on digital platforms, SEO, and app store visibility to drive
online investments.
5. Competitors:
o Factor: Market competition.
o Case extract: “Investors prefer assets not influenced by financial market trends.”
