MNE2601 Assignment 3 (ANSWERS) Semester 2 2023 - DISTINCTION GUARANTEED

Well-structured MNE2601 Assignment 3 (ANSWERS) Semester 2 2023 - DISTINCTION GUARANTEED. (DETAILED ANSWERS - DISTINCTION GUARANTEED!). The Kunene brothers As the first son and the first grandchild in a Zulu family, it was tradition that Keith Kunene be brought up by his grandparents who lived in Boksburg, east of Johannesburg. From an early age, Keith displayed one of the typical characteristics of a true entrepreneur – a healthy interest in money. When he was only 12 years old, he walked with his grandfather when they delivered the eggs his grandfather sold. He collected the money which excited him. At the same age he would pick up dump offcuts near a mine operation with a dump that was close to where he lived. He would then make doormats out of the offcuts and sell them. His grandfather advised him to save all his money in a moneybox. He remembers his childhood as a happy time one where his grandparents and parents particularly his father, Fortune Kunene, provided a stable and nurturing environment for him and his four brothers. His parents, who were both teachers understood the importance of education and Keith was sent to a tough Catholic boarding school in Vryheid in KwaZulu-Natal. After school he found work as an administrative clerk at a hospital. After six years in this job, he studied law at the University of Zululand, which is now known as the University of KwaZulu-Natal. He ended up running a successful law practice. Rather than trying to secure employment in a predictably white-owned legal practice, he decided to add his proven entrepreneurial flair to his profession and started his own law firm in 1976. But Keith wanted to be both a lawyer and businessman. In 1978 Keith secured a sub-lease for Mr. Kunene senior to operate a fresh milk outlet in Vosloorus. The business underwent drastic changes when in 1983 the Kunene brothers won a tender to take over a liquor outlet that was previously owned by the government in the same township. In addition, the milk outlet started selling Coca-Cola products on a wholesale basis. Three of the five brothers, Zanosi, Zoli and Menzi joined the business on a full-time basis. The Coca-Cola leg of the business grew rapidly between 1983 and 1987 culminating in the establishment of three Coca-Cola wholesale outlets. In 1991, the business was appointed as the official distributor of Coca-Cola brands by the Nigel Bottling Industries. Prior to Coca-Cola’s return to South Africa in 1994, the Kunene brothers were the largest independent distributors of Coca-Cola in this country. The acquisition of Coca-Cola Bottling Mpumalanga (CCBM) enabled the brothers to formalise their business interests through Kunene Bros. Holdings (Proprietary) Limited (KBH) was incorporated on 21 July 1994 as an “active ownership” business with diversified interests. On 28 August 1994, Kunene Finance Company (KFC) was established for the purpose of raising medium-to-long term finance to fund the Group’s investment programme. KBH owns 87% of KFC, KFC is a diversified holding company and currently has four major areas of investment interests namely: Coca-Cola Bottling and Distribution; Defence, Security and Projection Systems; Financial Services and Motor Dealerships. All five brothers have joined the full-time employment of the company as active owners enabling KBH to provide a range of well-defined services to group companies. They hold directorships and chairmanships across their various investments. From early on in their lives the five brothers Dudu, Zanosi, Zoli, Menzi and Keith worked closely together as a team and eventually built what is today a highly successful diversified investment holding company in which they are all equal partners. Source: Makura. M. 2009. Africa’s greatest entrepreneurs. Johannesburg: Penguin Books, pp. 226-243 and 1. In your own words, give a definition of a family business. (1) 2. What kind of business is KBH? Why? Support your answer with an example from the case study. (2) 3. Discuss four (4) roles of the family in the business in an emerging economy. For each role give an excerpt from the case study in support of your answer.(8) 4. Describe how KBH used different entrepreneurial growth strategies to grow their business. Use examples from the case study. (9) 5. From the case study, mention the characteristics that Keith displays as an entrepreneur. (5) 6. Poor succession planning affects the performance of family businesses in emerging economies in many ways. In your own words, discuss any five traits that are essential for a successor to lead a family business. (5)