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MNE3704 Assignment 2 (COMPLETE ANSWERS) Semester 1 2026 - DUE March 2026

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MNE3704 Assignment 2 (COMPLETE ANSWERS) Semester 1 2026 - DUE March 2026; 100% TRUSTED Complete, trusted solutions and explanations. For assistance, Whats-App 0.6.7-1.7.1-1.7.3.9. Ensure your success with us... Question 1 Read the case study below and answer the questions that follow. Case Study: The Mokoena Family Enterprise The Mokoena family owns Mokoena Agro-Processing (Pty) Ltd, a medium-sized enterprise based in Gauteng, South Africa. Established in 2005 by Mr. Thabo Mokoena, the business produces packaged agricultural goods for local and regional markets. Over time, the business has grown significantly and now employs 85 workers. Recently, Thabo has begun transitioning leadership to his children: • Lerato (35) – Operations Manager (structured, process-driven) • Kabelo (32) – Sales & Marketing Director (risk-taking, innovative) • Naledi (28) – Finance Manager (analytical, cautious) The family also includes Mrs. Mokoena, who informally influences decisions but holds no formal position. Emerging Challenges 1. Family Dynamics and Zero-Sum Behaviour Sibling rivalry is increasing. Kabelo feels that Lerato dominates decision-making, while Naledi often sides with Lerato due to shared caution. Kabelo perceives this as a “zero-sum game”, where his success is their loss. 2. Cultural Expectations The Mokoena family follows strong African cultural values, including: • Respect for elders • Collective decision-making • Gender role expectations These norms create tension, especially as Lerato (a woman) holds operational authority over her younger brother. 3. Operational Impact Conflicts have begun affecting the business: • Delayed decision-making • Staff confusion due to inconsistent instructions • Reduced productivity in key departments 4. Lack of Formal Governance There is: • No formal succession plan • No family constitution • No structured family meetings Most decisions are made informally during family gatherings. 5. Emotional Tensions Unresolved emotional issues include: • Feelings of favoritism • Lack of trust • Poor communication Questions: SECTION A: SHORT QUESTIONS (Knowledge & Understanding) 1.1 Define family dynamics in the context of family businesses. (1) 1.2 Explain the concept of a zero-sum game and how it applies to the case. (2) 1.3 What is family systems theory? How does it affect the given case? (2) 1.4 Define emotional intelligence in a family business context of the Mokoea’s? Explain how it was handled. (2) 1.5 Describe two consequences of poor conflict management in the case study. (2) 1.6 What is the purpose of a family constitution? How can it assist the siblings? (3) 1.7 Identify two operational challenges faced by the Mokoena business and suggest how can they overcome them. (4) [13] SECTION B: APPLICATION QUESTIONS (Analysis & Evaluation) 1. Family Dynamics and Culture Analyse how family dynamics and cultural expectations create complexity in the Mokoena business. (3) 2. Impact on Strategy and Operations Evaluate how family conflict is affecting: • Strategic decision-making • Daily operations (4) Provide examples from the case. 3. Family Systems Theory Discuss how family systems theory can be applied to improve relationships and decision-making in the Mokoena family. (3) 4. Emotional Intelligence Examine the importance of emotional intelligence in resolving tensions within the Mokoena family. (7) 5. Family Meetings and Interaction Critically discuss how structured family meetings could improve governance and communication in the business. (10) [27] Total for question 1: 40 Question 2 No Questions: 2.1 Analyse the ownership-related challenges currently affecting the Mahlangu family business. (2) 2.2 Clearly distinguish between ownership roles, management roles, and family roles in your discussion. (6) 2.3 Critically discuss the primary responsibilities of shareholders towards the corporation they own. (4) 2.4 Identify and explain the current ownership structure at Mahlangu Holdings and analyse the effectiveness of this ownership structure at the second-generation stage. (4) 2.5 Evaluate the likely consequences if the business transitions into a third-generation ownership structure without formal governance reforms. (4) 2.6 The Mahlangu family is considering the offer from a private equity firm to acquire 40% of the business. (10) Advise the family on whether this option should be accepted, considering the following: • Family control • Governance and professionalism • Long-term ownership sustainability

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MNE3704
Assignment 5 Semester 1 2025
Detailed Solutions, References & Explanations

Unique Number:

Due date: 8 May 2025
QUESTION 1



1.1



Family governance refers to the structured system of decision-making and
communication that aligns the interests of family members, shareholders, and
professional managers to ensure business continuity, unity, and wealth preservation. In
the energy company case, family governance benefited the business by introducing
formal structures like a board of directors, an external CEO, and a trust. These
mechanisms professionalised operations, clarified succession plans, and allowed José
to gradually transfer ownership while preserving business value and family harmony.



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Disclaimer
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implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
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Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.

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QUESTION 1

1.1

Family governance refers to the structured system of decision-making and
communication that aligns the interests of family members, shareholders, and
professional managers to ensure business continuity, unity, and wealth
preservation. In the energy company case, family governance benefited the
business by introducing formal structures like a board of directors, an external CEO,
and a trust. These mechanisms professionalised operations, clarified succession
plans, and allowed José to gradually transfer ownership while preserving business
value and family harmony.



1.2

1. Resistance to Change

José initially resisted involving outsiders in the business. Lorenzo overcame
this by leveraging his leadership record to persuade his father to support
governance changes.

2. Transition from Informality to Formality

The business evolved from being run at the dining table to adopting formal
policies, a structured board, and an audit committee.

3. Succession Planning

A formal succession process was implemented to ensure leadership
continuity, reducing the risk of abrupt or contested leadership changes.

4. Professionalisation of Management

The appointment of a non-family CEO and long-standing employee
demonstrated trust in professional management over nepotism.

5. Legacy and Ownership Transfer

José planned ownership transfers through a trust, avoiding conflict and
ensuring wealth preservation for future generations.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.

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