Question 1

1.1

The elements of customer needs are as follows (Erasmus, Strydom & Rudansky-Kloppers, 2017):

Higher Quality

Uber drivers must ensure that the standard of their cars are much higher than the likes of the metered
cabs. This is ensured by making the customer rate their trips once it has been completed. So this forces
them to make efforts such as keeping their cars clean, be very friendly with their customers. Their
ratings are shown to all customers that the driver accepts. Uber (2020) Unlike Uber, metered taxi drivers
do not receive ratings, so their drive to maintain higher standards and quality for the customer. Which
can lead them to being treated bad as a customer because nobody will know about it or go viral so
effortlessly. Uber drivers have newer cars than metered taxis and they are usually less safe than uber.
This is part of the rules and policies of when you register your car as an uber. The cars from uber must
be serviced every third month.

Lower Cost

Uber does not own any of the cars that work for them, they usually belong to the drivers who have
registered them. On top of that, Uber does not have the responsibility of maintaining those vehicles.
Only thing they are responsible for is just the maintenance of the app and ensure that it is running
smoothly. Because of this, they are able to charge much lower fees than the metered cabs. This
encourages customers to choose uber because not only are they clean, they are also very cost friendly
to the customers.

Shorter lead time

By this it is meant that customers are assigned to drivers that are close to them. On top of that, they do
not have to look for the uber driver, as they go to their location that was chosen by the customer, and is
usually within less than 5 minutes depending on the location. Meter taxis are usually far, and are usually
found in busy and occupied places. Uber drivers get to communicate with the customers prior to
meeting them over the app. This is very convenient for both driver and passenger.

Greater adaptability

Uber makes sure that they and their drivers adhere to the needs of their customers and that they can
get a ride at any time provided that they’re using the app. The customer choose they driver of their
choice based on their ratings. Uber also finds ways to improve their bad ratings by calling the customers
and finding the problems they had with the driver and the trip. Once again metered taxis do not have
these platforms that will ensure customer satisfaction and efficiency.

Better Services

Uber ensures that they can also offer better services to their customers with a different range of Uber
vehicles from Uber X to Uber black. So passengers can fit in one vehicle and pay for one lift instead of
paying for many trips at once. Uber also has a service called Uber Help for passengers with special needs
such as passengers that depend to wheelchairs, crutches or any prosthetic devices to move around.
[507 words]

1.2

1.2.1

According to Erasmus, Rudansky-Kloppers and Strydom (2017), the following performance standards
are:

Historical performance standards

 Current or latest performances are compared to with older performances of the same business. For
example, Rosebank College comparing their number of Graduates every year.

Target performance standards

 This is the standard that is set to be reached when doing it so they have a goal to work towards. For
example when a business wants to outdo their closest competitor with a certain amount of sales.

Competitors’ performance

 One one’s performances are compared to using their competitors’ statistics as a benchmark. Then
reviewing their own performances and finding aspects on where they can improve. For example,
Liverpool comparing their performances to Manchester City

Absolute performance standards

 A performance that is compared to a theoretically measured achievement and their aim is to

1.2.2

I would suggest that they use the Historical performance standard, that way they can learn from their
own mistakes and then learn from them and then find ways they can prevent repeating those mistakes.

1.3

1.3.1

Job Specifications contains the suitable or recommended qualities, abilities, knowledge that one must
possess in order to be able to do the job. The new employee may be asked to review the specifications
and confirm that they understand and are able to do what has been specified. For example when a
vacancy states that the candidate must have a degree in software development to be considered for the
job. Erasmus, Rudansky-Kloppers and Strydom (2017)

Job Description states the responsibilities the employee must able to handle including day to day
activities, which they must complete daily. The employee will be asked to read the description of job
requirements and sign and confirm that they will be able to do the job. Usually comes with a job title.
For example, a computer technician must be able to troubleshoot all hardware and software problems.
Erasmus, Rudansky-Kloppers and Strydom (2017)
 1.3.2

 No criminal record.
 Clean record of driving.
 Drive an insure motor vehicle.
 Have years of experienced driving

1.4

1.4.1

Purpose of it is to review and evaluate if the employee has performed accordingly and has met the
requirements of the job including following the description while finding ways that can be used to assist
the worker and help them improve on their own, and motivating them to do better by offering rewards
for achieving goals. Erasmus, Rudansky-Kloppers and Strydom (2017)

1.4.2

 All passenger must rate every driver on every trip is mandatory for drivers to maintain an average
customer rating of 4.6 out of 5.0
 Uber will deactivate any driver below that standard. Uber (2020)

1.4.3

According to Erasmus, Rudansky-Kloppers and Strydom (2017), it is a system that aliows stakeholders to
be the sources of the performance appraisal, and not only the direct staff members. I would say that
uber doesn’t adhere to this because their performance appraisal is done by the customers of the
company.
 Question 2

2.1

2.1.1

2018

N=R785 000.00/ (R9-R3)

=R785 000/R6

=130 833

P= (130 833*9.00)-R130 833 * 3)

=R1 177 497.00-R392 499

=R784 998

2019

N=R890 500/ (R10-R5)

=R890 500/R5

=R198 100

P= (R198 100* R10)-(R198 100*R5)

=R1 981 000-R990 500

=990 500

2.1.2

The break-even point in 2019 is projected to be much higher than 2018. My knowledge would reckon
that it is because of their costs have increased higher than they have their sales. The cause of price
increasing may be because of national inflation.

2.2

2.2.1

ATR= (R336 500-R67 000)/ R651 500)

= R 269 500/ R651 500

=0.4137

=1:041
 2.2.2

The acid test ratio shows that each rand has a worth of 0.41 of Dlamini and Son’s current assets. They
exclude inventory. The scenario also shows us that their current ratio indicates low liquidity than a
larger ratio. Which basically states they have less inventory and do not sell that much on credit.

2.3.1

=R915 000/ R751500

=1.217

=1:1.21

2.3.2

This just states that the business has R1.21 of equity for every R1 of its debts. Therefore it would be
evident that 2.3.1 show a large ratio which is preferred.

2.4

2.4.1

According to OnAccounting (2020), Traditional budgeting is the process of planning and budgeting
where they make use of previous budgets of their respective company and attempt to improve from
them. Whereas Zero-based budgeting is begun from scratch and all the actions within the budget are
evaluated before they are confirmed and completed.

2.4.2

Personally, I’d recommend zero-based budgeting, because in such times as this pandemic, one cannot
budget freely like they used to because the risks are higher and a lot of businesses have closed down
from not budgeting for unfortunate circumstances such as this. And it allows a fresh start and an open
mind for new ideas.
 Question 3

3.1

According to Erasmus, Rudansky-Kloppers and Strydom (2017), the decision making process is as
follows:

Phase 1: Awareness of an unsatisfied need or a problem

 The customer may feel a difference in the current phone they may be utilizing while increasing their
desire to change.
 This may motivate a client to do some research in where they can fulfill their desire in the phone
they seek and purchase it.
 They may begin by looking at advertisements for cellphones that may potentially fulfill their wants
when it comes to a phone.
 Then look at the blackberry that may impress them, preview it then purchase it.

Phase 2: Gathering information on how best to solve it

 The client retrieves information usually from outside sources, which may include web adverts,
newspapers, going to the shops and word of mouth.
 While doing any of those, it allows them to obtain more information about the product they seek to
purchase.
 So whoever may be providing the information must be able to give the relevant information that
may convince the client to buy their cellphone.

Phase 3: Evaluation of the possible

 The client will review the phone based on criteria such as pricing, specifications, the standard of the
phone, as well as the quality and prospect of the cellphone and condition.
 The client also reviews if the phone may satisfy their demands before they purchase it.
 The salesman or marketer must make sure that they state all benefits of using the phone and more
ways that can persuade that them to buying one.
 Plus they must also eliminate the possible thoughts of using other phones

Phase 4: Decision on a course of action or purchase

 The salesman must ensure that they get the customer to consider buying it.
 Use techniques that may emotionally manipulate them into buying the cellphone.
 This distinguishes just how good the salesman is in persuading the client into buying the phone.

Phase 5: Post purchase evaluation

 The desired stage where the customer has purchased the phone.
 The customer uses the phone for a while and then concludes exactly how he feels about the phone,
and concluding if they made the correct choice in choosing the product.
 Should the customer not be satisfied, they may decide that they will not purchase this phone or
anything associated with this company and may influence potential buyers to refrain from buying
their products.
 But if they are satisfied, it could bring the company more business.
3.2

The stages of a product life cycle are as follows (Erasmus, Strydom & Rudansky-Kloppers, 2017):

Introductory phase:

 When the Blackberry Torch was created and ready for deployment, they needed to create a
demand, because customers are oblivious to it.
 Blackberry had to carefully find their target market which will satisfy their demands when it comes
to a cellphone, and whether they would be prepared to change cellphones.
 They had to figure out how they will distribute it, and where they will.
 Pricing their Blackberry Torch will depend on their target market, and is also a prestigious phone
while they have entry level phones such as the BlackBerry 8520, so which will likely be at a higher
price.
 They could also use the leading cellphone network providers in the country (such as Vodacom) to
sell their products while giving them a portion of what is made.
 So various sales promotions must be used, which may include specials and all that.

Growth phase
 This is the process of creating the demand. Where everyone including customers and competitors.
 The creation of the demand was for the customers who weren’t impressed by the 8520. So the
Torch had better features than the 8520 such as the touchscreen which may catch the customer’s
attention.
 People were impressed by the internet services Blackberry provided which was basically uncapped
data for 30 days at an affordable price.
 Their pricing decisions were probably based on their competitors’ closest competing phones.
 Promotions were done through media that was mostly used by their target market.

Maturity phase
 The main goal would be to prolong the popularity of all blackberry phones.
 So at times like this, Blackberry would introduce improvements to their phones.
 Most of the improvements would be directed to their newer models, and sometimes the older
models if their hardware had proper specs to handle any updates.
 The maturity phase was present in 2011 when they sold around 50 million units in the US (Business
insider (2019)

Declining phase
 They had a decision to make, either keep maintaining their current models, or introduce newer
better ones.
 Their fall came to surface when they were very reluctant to changing with the technological times,
and also failure to listen to their consumer reviews.
 Another that contributed to their failure is their lack of creativity and taking risks, this resulted in
them in their competitors Samsung and Apple overtaking them and has stayed that way till today.
 They were unable to adapt due to a lack of open mindedness and resulted in them being obsolete.
 Another cause of their demise was a lack of respect for other competitors, so that lead to them not
being able to keep up with the current leading companies.
 Blackberry were adamant on creating QWERTY keypads when customers wanted touchscreens.
 Reasons for this was to allow better viewing and touchscreen navigation.
 Then the bare minimum they did when they decided to imitate Apple cellphones. Time (2020)
 They were unable to anticipate that customers are the ones that are in charge of the smartphone
revolution.
 Referee

Erasmus, B. Strydom, J. Rudansky-Kloppers, S. 2017. Introduction To Business Management. 10th Edition.

Business time. 2013. The Fatal Mistake That Doomed Blackberry.

Business insider .2019. Blackberrry Smartphone Rise and Fall and Failure To innovate .
[Online]https://www.businessinsider.com/blackberry-smartphone-rise-fall-mobile-failure-innovate-
2019-11?IR=T [Accessed October 2020]

Uber. 2020. Driver Requirements . https://www.uber.com/za/en/drive/requirements/ [Accessed 5

Pocket Lint. 2020. What is Uber and How Does it Work?. [Online]https://www.pocket-
lint.com/apps/news/uber/139559-what-is-uber-and-howdoes-it-work

Uber. 2020. A guide for how to use Uber. Uber. [Online]https://www.uber.com/za/en/ride/how-it-