MAC3703 Assignment 2 Semester 2 2023.

MAC3703 Assignment 2 Semester 2 2023.Detailed working, solutions, memo, notes & explanations.QUESTION 1 (30 MARKS) Mrs Sindy Lula has been in the financial Services Sector for more than 20 years and is considering a career shift. At present, she is a credit provider (mashonisa) where she owns and runs the money lending business throughout the Eastern Cape under the name BZN Agri-Retailers (PTY) LTD. Having been in this business for more than 20 years, she has grown bored of the business and is considering selling it to a competitor and venture into landscaping and be a landscape designer. She intends to focus on: 1. Garden designs 2. Kids play areas MAC3703/Assignment 2/2023 4 3. Swimming pot Mashonisa (credit providers) is part of the financial services market. Most Mashonisas are illegal and unregulated lenders that operate without compliance with the National Credit Act (NCA). Mashonisas offer loans that don't require formal documents to be filled out. Although they are not registered with NCA, the lender who harasses the borrower is breaking the law and can be reported to NCA and to the police. Mashonisas are very popular is South Africa because of the speed, the convenience, no credit checks requirements, simplicity and fixed interest rates. There are no specific educational requirements for a credit provider (Mashonisa). Some Mashonisas are registered with NCA so as the have the competitive advantage. According to the Wonga report, “The NCR is currently embarking on a campaign to get all unregistered credit providers registered, through the mobile registration office that moves around the country to assist unregistered credit providers to register. In addition the unregistered credit providers are continuously referred to the tribunal so that fines can be imposed on them for operating a business of a credit provider without a licence.” Mrs Sindy Lula’s company is registered with NCA and is a private company registered with CIPC. The company has very few compliance requirements. Landscaping is very different. It is part of the landscaping products market and is subject to a plethora of rules and standards concerning the advice and service that landscapers can give. Certain projects/sites may require and have in place an Environmental Management Plan (EMP), an Environmental authorization or a Water use license. In these instances, it is critical that the landscaping company obtains copies of these documents and takes note of the requirements up front to ensure that all work on-site is undertaken in accordance with these legal requirements. At times external environmental auditors or the “Green scorpions” may visit projects to confirm compliance with the authorization, license or EMP requirements. The landscaping industry is a very competitive space to work in, especially when businesses are within close geographical range to one another. It’s a constant battle and the landscaper must know what she is up against. Who’s taking her share of the market? Or better yet, whose market share does she seek to gain? The landscaper must have qualifications and must be a member of South African Landscaping Institute and must comply with landscape standards. MAC3703/Assignment 2/2023 5 REQUIRED: (a) For each of the markets in turn discuss with reasons whether you feel the level of orchestration is loose or tight and whether the complexity in the market is low or high. (12 Marks)