Name: Mbalenhle Nkosi

Student number: ST10493321

Business Management

QUESTION 1
1.1 South Africa has a mixed economy, blending capitalism (free market) and
socialism (government control and intervention). A mixed economy permits private
enterprise to operate freely but is controlled by government policy to ensure fairness
and protect public interests.

The IV Bar is a private enterprise offering health and wellness services like
intravenous vitamin infusions. The fact that it exists is proof of the role of private
enterprise in the South African economy — individuals can set up and operate
businesses based on market demands. The IV Bar is also under health protocols,
medical standards, and government policies, though, showing the role of the
government in overseeing industries for the public good.

Thus, the IV Bar depicts how the mixed economy of South Africa can adopt private
innovation and government regulation.

1.2 The application of intravenous (IV) vitamin therapy is a partly sustainable idea,
but it is based on the execution. IV therapy addresses the current need for improved
personal health, wellness, and preventative medicine, which aligns with addressing
current needs. But all of this is sustainable only if there is responsible procurement of
medical equipment, the environmental impact of throw-away items (like drip bags
and needles), and the question of whether the business is geared towards long-term
health or short-term remedy.

If the IV Bar is vigilant to ensure its practices are sustainable — for example, by
minimizing medical waste, sourcing from sustainable suppliers, and educating clients
about general health — then IV therapy could be a sustainable service. Otherwise, it
will continue to generate medical waste and overconsumption, and potentially harm
generations ahead.
Thus, while the concept has sustainability potential, it will have to be appropriately
managed to serve sustainable development purposes effectively.

1.3 Visionary Thinking

Entrepreneurs can envision potential in emerging markets and trends.

Example: Keri could see the growing need for preventive health and wellness
solutions. By launching intravenous (IV) vitamin therapy in South Africa, she tapped
a niche market, and The IV Bar was an innovator in the field.

Risk-Taking

Entrepreneurs take informed risks to achieve business goals.

Example: With a starting capital of just R30,000, Keri launched The IV Bar. Venturing
into a relatively unexplored market space in South Africa, her investment in a new
health service is an example that she is a risk-taker.

Innovation

Innovation is the act of introducing new ideas or methods to improve products or

services.

Example: Keri's approach of launching wellness through IV vitamin therapy was new
to the South African market. By offering personalized vitamin infusions, she
developed a new product for well-being-conscious customers seeking alternative
therapy for well-being.

Resilience

Resilience is the capacity to recover easily from bad experiences and adapt to
change.

Example: During the COVID-19 pandemic, Keri expanded The IV Bar by opening six
new locations in South Africa. That she was able to expand the business during
times of global uncertainty is a testament to her resilience and adaptability.

Leadership

Leadership involves leading and inspiring a team towards common goals.

Example: Through her position as CEO, Keri has led the expansion of The IV Bar
and has been recognized for her leadership abilities, including being named the
2023 Woman of the Future. Her job is to make tactical decisions and inspire her
employees to deliver top service.

1.4 Limited Liability (Benefit)

In a private company, the owners (shareholders) have limited liability; ie, they
themselves are not personally on the line for The IV Bar's debts — only the business'
own assets are put at risk.

For Keri, that meant lowering her economic risk if The IV Bar is ever in financial
difficulties.

Continuity (Benefit)

A private company has continuity of existence even with altered ownership (eg, if
Keri were to sell out her shares or pass away).

This would allow The IV Bar to operate independently of Keri’s circumstances,

making the business more stable long-term.

Access to Capital (Advantage)

A private company can raise capital by selling shares to a few selected people
(family, investors, etc.).

Keri could attract investors to fund expansion without the restrictions of a

partnership where all partners must agree and invest equally.

Management Control (Disadvantage for Partnership)

In a partnership, decision-making is slow because all partners need to agree.

Business breakdown may result from disagreements among partners.

Through the running of a private company, Keri had more control over major
decisions without seeking constant approval from many partners, speeding up
business operations.

Summary:
Choosing a private company structure helped Keri limit personal risk, ensuring
business continuity, allowing easier access to capital, and providing effective control
— all things more challenging within a partnership.

1.5 Be mindful of the Market Environment: Consumer Demand for Health and
Wellness Services

One key factor in the market environment for The IV Bar is the growing demand for
health and wellness services, particularly preventative care.

IV Bar surfed this trend by offering intravenous (IV) vitamin drips to patients seeking
improved health, hydration, and wellness. Growing demand for alternative medicine
and self-care, especially among health-conscious individuals, drove the demand for
such a service. The trend was also noticed especially before and after the COVID-19
pandemic when people started to care more about their immune system and overall
health.

The IV Bar's success to leverage on this demand is a classic case of how the
business responded to a key driver in the market condition: changing consumer
needs and wants for well-being products.

1.6 In the macro-environment, various factors impact firms, such as the IV Bar.
Three major sub-environments that significantly impact are:

Economic Environment

The economic environment has a direct impact on the consumer spending capacity
and overall demand for services.

Example:

Economic conditions, recession, or inflation may affect people's disposable income.

During an economic downturn, customers may hold discretionary spending on
extravagant health treatments like intravenous therapy close to heart. During an age
of economic boom, more people will be in a budgetary position to splurge on health
and wellness treatments, to The IV Bar's advantage.
Social Environment

Changes in social trends and buying behaviour are also important drivers of demand
for services.

Example:

There is a social consumer pattern among young adults and overall among
consumers to be healthy, wellness-oriented, and active players in preventative
medicine. This new way of thinking by consumers has fueled the demand for non-
traditional services such as IV vitamin infusions. The IV Bar capitalized on this by
positioning itself as an industry leader in the wellness arena, providing treatments
that would appeal to the wellness-oriented demographic.

Technological Environment

Technological shifts affect service delivery and consumer targeting.

Example:

Technology allows The IV Bar to improve its service delivery by using advanced
medical equipment in administering IV therapy. Technology enables enhanced digital
marketing as well, with social media and the internet allowing The IV Bar to reach
potential consumers at competitive prices.

By its responsiveness to macro-environment's economic, social, and technological

drivers, The IV Bar is able to change with consumer attitudes, market directions, and
technological advances so that it achieves competitive leverage.

1.7 1. High Foot Traffic

Malls are constructed with dense concentrations of consumers to provide an ever-

present base of would-be shoppers. For the IV Bar, heavy traffic is beneficial
because it provides avenues for capturing walk-in business individuals who have no
plans to go but are attracted by health and wellness services. In addition, foot traffic
also creates visibility for the crowds of consumers, from business people to family
folks, thus increasing the number of customers.
Example: IV Bar is favoured in being located within shopping malls because humans
naturally visit malls to eat out, shop, or play, which then naturally leads to
unscheduled visits to The IV Bar for a wellness boost.

Convenience and Accessibility

Shopping malls generally enjoy a convenient location with ease of access, often near
big transportation centre or residential areas. The convenience is such that clients
will easily be able to get into The IV Bar with less effort.

Example: Malls will prefer sitting at the centre of the city where there is space for
parking and access to public transport, hence customers will take The IV Bar as a
convenient health services point of call during shopping.

Synergy with Complementary Businesses

There exist other businesses and services offered within shopping malls including
food, fitness centres, and health products. There is a synergy with complementary
businesses that creates visibility and popularity for The IV Bar. For example,
individuals visiting the mall to buy fitness or healthy foods may also visit The IV Bar
for a treatment of health through IV vitamin therapy.

For example, malls that incorporate fitness clubs, health food outlets, or spas provide
the perfect environment in which to attract customers who are already thinking about
well-being and investment in health care, thus making The IV Bar the next rational
step in their shopping trip.

Conclusion:

The complementarity of high traffic, easy accessibility, and compatibility with

complementary businesses offers the ideal environment for The IV Bar to flourish.
This helps maximize the potential to attract greater numbers of clients, offer ease of
access, and benefit from an umbrella of health-oriented consumers.

1.8 Establishing Objectives

The first step is to set specific goals that will map the progress and advancement of
The IV Bar's services.
Application to The IV Bar:

Specific goals may be opening up in five new cities for Keri Rudolph or introducing
three new wellness services (e.g., IV treatment for specific health conditions). Such
goals provide a clear direction to decision-making and put the company on the right
path to achieving long-term objectives.

Situational Analysis

This involves examining both the external and internal factors that affect the
business, including opportunities, threats, weaknesses, and strengths (SWOT
analysis).

Application to The IV Bar:

Keri would analyse The IV Bar's strengths, such as brand name and new service
lines, and weaknesses, such as costly operations in the emerging markets. She
would analyse opportunities in the expansion of health trends and new client needs
for wellness services, as well as potential threats like competition and legislative
reform. Analysis indicates where resources must be deployed for growth.

Identifying Alternatives

Here, Keri would compare various alternatives or options for the growth of services.

Application to The IV Bar:

Keri can think about various possibilities for service expansion, such as providing
mobile IV treatment to treat clients at home or providing wellness retreats in addition
to regular IV therapy services. Thinking about these possibilities places her in a more
general context of what is possible for expansion.

Evaluating Alternatives

Every opportunity that has been found is weighed against the goals and means of
the company to determine which one offers the best chance for success.

Application

Keri would compare and contrast the benefits, disadvantages, and costs of each
option, for instance, initial capital in new stores against a lower-cost model of mobile
repair. She would balance market demand, logistic needs, and return on investment
in determining the most appropriate choice.

Implementing the Plan

This step involves undertaking the agreed plan, for instance, resource and task
allocation.

Application to The IV Bar:

Having established the best growth strategy (i.e., new offices or mobile service), Keri
would then allocate resources — i.e., money, staff, and equipment — and activities
to groups for execution. These could be recruitment and training of personnel,
renting new premises, or investment in advertising campaigns to promote the new
services being launched.

Monitoring and Controlling

The final step ensures that the plan is implemented well and changed wherever
there is a need.

Application to The IV Bar:

Keri would track the new location and new service performance. This can involve
tracking sales growth, customer reaction, and operating efficiency. If new locations
are not performing as expected or customer demand for new services is lower than
expected, Keri can adjust the marketing plan or research customer issues to improve
outcomes.

1.9 Keri Rudolph, founder and CEO of The IV Bar, shows both managerial and
leadership characteristics, but as an entrepreneur, her experience is more inclined
towards leadership.

Leader: Keri's vision as a leader is portrayed in the fact that she founded The IV Bar
with just R30,000 in the bank. Being able to envision a niche in the wellness
business and expanding the business to over 35 outlets across the country is proof
of her visionary leadership, as well as being able to develop other people. Being
named the 2023 Santam Woman of the Future is also proof of her leadership in the
industry.

Manager: Though Keri's management is upfront, she also looks after The IV Bar's
operational side. She oversees day-to-day work, quality of services, and a growing
number of staff. For instance, she has been very active in the expansion process,
such as the opening of new offices in other locations.

QUESTION 2

Introduction

Management would likely be one of the most crucial components of any business
organization since it ensures that things are done in the correct manner and
efficiently, and objectives are achieved. At the IV Bar, a business company with
intravenous vitamin therapy, its management system is at its headquarters and
success within the health industry. IV Bar company has expanded very rapidly in
South Africa with more than 35 outlets, thanks to the highly organized hierarchy,
which leaves space for the delineated roles and responsibilities. The three
management levels of The IV Bar—top, middle, and bottom—are discussed in detail
below. It analyses the specific tasks and duties of each management level and the
basic skills needed to succeed there. Looking at these levels of management, we
can see The IV Bar and how it survived and still managed to succeed. Body

1. Top-Level Management

Top management is the most senior level of management within a corporation and
makes strategic decisions with implications for the entire corporation. The IV Bar is
led by its founder and CEO, Keri Rudolph. She determines the company's vision,
mission, and long-term goals. As the company representative, she makes upper-
level decisions such as new city launches and introducing new services.

Roles and Responsibilities

Strategic Planning: Keri Rudolph sets long-term plans and strategies that set the
direction for the company. For example, she founded The IV Bar with multiple
locations in South Africa. Keri's ability to discover market opportunities for wellness
products like IV vitamin therapy has helped grow the company.

Decision-Making: Senior officials like Keri have the charge of making primary
decisions that straightway impact the firm and hugely determine its prosperity. They
could involve expansion, merger, partnerships, or the development of new offerings
like specialty IV drips for different ailments.

Leadership: Being the founder of The IV Bar, Keri also contributes leadership to the
company. She motivates employees, builds company culture, and recruits
employees on company goals. Leadership from her assisted in overcoming the first
hurdle, i.e., minimal cash and competition, to create an umbrella brand.

Skills Needed

Visionary Thinking: Keri’s success stems from her ability to foresee industry trends
and position The IV Bar strategically to take advantage of them. Her foresight has
allowed the company to stay ahead of competitors by adapting to emerging wellness
trends.

Strategic Planning: Keri performs optimally in creating long-term plans that correlate
to the vision and mission of The IV Bar. Her direction setting and creating a direction
path for the company have facilitated the growth of The IV Bar.

Leadership: Keri is seen to exhibit leadership in how she inspires and leads by
example. Her interpersonal and communication skills make the workplace such that
the employees are made to feel valued and encouraged to be part of the company's
success.

2. Middle-Level Management

Middle-level management makes sure that the top-level management is connected

with the bottom-level employees. Middle managers of The IV Bar include positions
like operations managers, franchise managers, and department heads. Middle
managers make sure that the conversion of strategies formulated by the top
management into practicality, and hence keeping a part of the day-to-day activities,
to done effectively.
Policy Implementation: Middle managers in The IV Bar ensure that the
implementation of Keri Rudolph's plans at a strategic level becomes a reality. For
instance, they manage to open new stores, apply marketing strategies, and deliver
the services to the required company standards.

Coordination: They are liaison officers between the employees and the top
management. They ensure that each department, such as customer service,
operations, and marketing, is coordinated among themselves as well as concerning
business objectives.

Performance Monitoring: Middle managers track the performance of each branch

and franchise to make sure they meet the important performance indicators (KPIs)
such as customer satisfaction and revenue projections. They also repair any issues
arising in regular operations.

Skills Required

Communication. Middle managers need to communicate with the top as well. They
have to communicate effectively the mission of the company. They need to impart
vision. They need to do. All in harmony.

Problem. Middle-level managers need to solve problems daily. It could be resolving

customers' issues, resolving employees' challenges, or adjusting on the ground.
Keep up. With. The market.

Team Management: They must have proper team-building skills to keep things
running smoothly and employees motivated and productive. They guide teams
toward organisational objectives.

3. Lower-Level Management

Lower management in The IV Bar includes branch managers, team leaders, and
other staff supervisors who are tasked with the responsibility of overseeing day-to-
day operations in individual branches. These managers directly bear the
responsibility of managing staff, delivering services, and making customers happy.

Jobs and Tasks

Supervision: The day-to-day work of lower managers is ensuring that all the work
procedures are being done the right way. This could include checking the functioning
of IV therapy administration, ensuring whether employees are following health and
safety policies, and maintaining customer service standards.

Training and Development: The lower managers are supposed to train and develop
the employees. By doing so, employees are adequately trained to render services as
well as serve the customers, which is crucial in upholding the brand image.

Customer Service: These managers take care of customers' complaints and queries
to ensure that customers are satisfied with the experience. They are instrumental in
winning customer loyalty and ensuring high levels of customer satisfaction.

Skills Required

Operational Know-How: Lower managers need to be extremely aware of what is

happening day in and day out in The IV Bar. That involves service delivery, customer
interactions, and the operation of a wellness centre.

Customer Service Skills: They are on the front line and should be able to manage
customer relations. How they can manage customer complaints and deliver a great
experience is essential to organisational success.

Leadership: Mid-level managers also need leadership skills to motivate and lead
their employees, to get employees productive and engaged in delivering great
service.

Conclusion

Lastly, the IV Bar organisational structure has three different levels—top-level,

middle-level, and lower-level management—with their specific functions and
responsibilities.

While spanning from Keri Rudolph's overall strategic management from the top to
day-by-day operational management by junior executives, all three levels bear the
responsibility for the firm's success. Each level of capability at each, from vision,
mind, communication, and operations knowledge, is accountable for the success of
The IV Bar in the wellness industry. Knowing these levels of management explains
how the firm can maintain its operating performance and grow successfully.
References

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Daft, R.L., 2015. Management. 12th ed. Cengage Learning.

Kotter, J.P., 1990. A Force for Change: How Leadership Differs from Management.
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Studocu, 2025. Characteristics and Skills of an Entrepreneur: Keri Rudolph of IV Bar.

[online] Available at: https://www.studocu.com/en-
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