Business Management 1A
BSM1501
Assignment 01 for Semester 02 (compulsory)
Semester 02
DUE DATE: 22 Augustus 2019
UNIQUE NUMBER: 876627
MULTIPLE-CHOICE QUESTIONS
We recommend submitting your assignment online on myUnisa. You may also use
a markreading sheet to answer and submit the assignment.
Chapter 1
1. An intrapreneur can be described as someone who:
a) manages an existing business.
, b) is known as a corporate entrepreneur.
c) is responsible for growth.
d) is creative and innovative.
e) takes calculated risks.
Choose the correct combination:
1) a, b, c
2) a, b, e
3) b, c, e
4) b, c, d
Page 9 of the prescribed textbook:
Franchisors and franchisees
DEFINITION
Franchising is an arrangement in which an individual or business (the franchisor) grants an
independent party (the franchisee) the right to sell the products or services of the business
according to guidelines set down by the franchisor.
The franchisor retains control over the conduct of the business and offers the franchisee a
comprehensive business package. Examples of franchises are Cash Converters, King Pie,
Car Service City, Hot Dog Café, Trellidoor and Placecol Skin Care Clinics. The franchisor is
an entrepreneur, whereas the franchisee should rather be seen as a corporate entrepreneur
(or intrapreneur) who innovates within the franchise system.
Franchisees do not have the latitude to experiment, operate and market their business
according to their own vision of how things should be done, but must adhere to the plans of
the franchisor. However, it has been proved that franchisees do show an entrepreneurial
orientation in certain situations, such as multiple-outlet franchisees (Maritz, 2005).
Franchisors in many sectors have recognised the benefit of multiple-unit franchisees
(Johnson, 2004:3), and this is seen as an entrepreneurial extension of the franchise trend.
Franchisors usually fall into the medium- to large-business category, because the more
successful franchisors manage a large number of franchises in addition to managing the
franchising group. In South Africa alone there are 600 different franchise brands, up from
only 156 in 1994. There are 31 000 franchise outlets operating in the country and 26 %
belong to previously disadvantaged groups. Franchises employ about 320 000 people.
Approximately 25 % of franchises in South Africa are fast food restaurants and 13 % are
retail businesses responsible for 28 % and 40 % respectively of franchise business
employment. Franchisees can fall anywhere between the small to medium categories.
Franchises represent a contribution of approximately 10 % of GDP. Measured by
sustainability, franchises are sound: 75 % of franchises exist for more than six years and 44
% remain in business for more than 12 (Brand-Jonker, 2015:2).
Also note page 2 of the prescribed textbook:
Entrepreneurs can be described as those people who:
start their own business
manage the business
identify new products or opportunities
seize opportunities
BSM1501
Assignment 01 for Semester 02 (compulsory)
Semester 02
DUE DATE: 22 Augustus 2019
UNIQUE NUMBER: 876627
MULTIPLE-CHOICE QUESTIONS
We recommend submitting your assignment online on myUnisa. You may also use
a markreading sheet to answer and submit the assignment.
Chapter 1
1. An intrapreneur can be described as someone who:
a) manages an existing business.
, b) is known as a corporate entrepreneur.
c) is responsible for growth.
d) is creative and innovative.
e) takes calculated risks.
Choose the correct combination:
1) a, b, c
2) a, b, e
3) b, c, e
4) b, c, d
Page 9 of the prescribed textbook:
Franchisors and franchisees
DEFINITION
Franchising is an arrangement in which an individual or business (the franchisor) grants an
independent party (the franchisee) the right to sell the products or services of the business
according to guidelines set down by the franchisor.
The franchisor retains control over the conduct of the business and offers the franchisee a
comprehensive business package. Examples of franchises are Cash Converters, King Pie,
Car Service City, Hot Dog Café, Trellidoor and Placecol Skin Care Clinics. The franchisor is
an entrepreneur, whereas the franchisee should rather be seen as a corporate entrepreneur
(or intrapreneur) who innovates within the franchise system.
Franchisees do not have the latitude to experiment, operate and market their business
according to their own vision of how things should be done, but must adhere to the plans of
the franchisor. However, it has been proved that franchisees do show an entrepreneurial
orientation in certain situations, such as multiple-outlet franchisees (Maritz, 2005).
Franchisors in many sectors have recognised the benefit of multiple-unit franchisees
(Johnson, 2004:3), and this is seen as an entrepreneurial extension of the franchise trend.
Franchisors usually fall into the medium- to large-business category, because the more
successful franchisors manage a large number of franchises in addition to managing the
franchising group. In South Africa alone there are 600 different franchise brands, up from
only 156 in 1994. There are 31 000 franchise outlets operating in the country and 26 %
belong to previously disadvantaged groups. Franchises employ about 320 000 people.
Approximately 25 % of franchises in South Africa are fast food restaurants and 13 % are
retail businesses responsible for 28 % and 40 % respectively of franchise business
employment. Franchisees can fall anywhere between the small to medium categories.
Franchises represent a contribution of approximately 10 % of GDP. Measured by
sustainability, franchises are sound: 75 % of franchises exist for more than six years and 44
% remain in business for more than 12 (Brand-Jonker, 2015:2).
Also note page 2 of the prescribed textbook:
Entrepreneurs can be described as those people who:
start their own business
manage the business
identify new products or opportunities
seize opportunities
