HENT330-1 Entrepreneurship 3 Formative Assessment 01 | BCC

Instructions

This paper is based on Units 1-6 (Chapters 1-6) of your courseware.

A Copyleaks Report will be issued via ColCampus once the assignment is submitted. Please ensure that you follow the correct steps when uploading your assignment, to ensure that the Copyleaks Report is correctly issued. If the incorrect document is uploaded or if no Copyleaks Report is issued, a mark of zero (0) will be awarded. If the Copyleaks Report indicates that a 30% similarity/plagiarism score has been exceeded, 25% of the assessment total will be deducted from the final grade.

Your assessment must be typed using:

• Font: Arial
• Font size: 12
• Line spacing: 1.5

The following learning outcomes are assessed in this assessment:   

• Develop strategies for strengthening entrepreneurship support systems within a given context. 
• Identify resources and support networks that can assist in the opportunity identification process. 
• Discuss the importance of product development and operational efficiency in delivering value to customers. 
• Develop a marketing strategy tailored to the unique goals and constraints of an entrepreneurial venture. 
• Develop guerrilla marketing ideas or strategies applicable to specific entrepreneurial scenarios. 
• Define the criteria that determine whether an idea has the potential to become a successful business venture
• Develop a marketing strategy tailored to the unique goals and constraints of an entrepreneurial venture. 
• Explain the role of social media in modern marketing and its relevance to entrepreneurial ventures. 
• Utilise an opportunity checklist to evaluate and validate a business idea against essential criteria.
• Apply ideation methods such as brainstorming,  mind mapping,  and problem-solving to develop potential business concepts.
• Explain the purpose and importance of prototyping as a tool for validating ideas and concepts.

Question 1  [21 MARKS] 

Read the extract below and answer the following question. 

Currently, South Africa is seeing a rise in the number of young people and women starting their businesses. The Total Entrepreneurial Activity rate for South Africa was 15.9%. It’s greater than the region’s average (GEM report for 2020–2021). The report also demonstrates that South African early-stage entrepreneurs are transforming their ventures into established companies. This is seen by an increase in the established business ownership rate from 3.6% in 2019 to 6.2% in 2020 (EBO). This displays that more business proprietors are successfully navigating the start-up phase of their companies and pushing the switch to more established companies.

Analyse the seven (7) major changes in the entrepreneurial framework conditions that have fueled the entrepreneurial revolution. Provide an example for each major change mentioned in your answer.     (7x3=21 marks)

Read the Case Study Below and Answer Questions 2 and 3 below: 

Afri-Berry - A Journey of Resilience, Innovation, and Empowerment 

Afri-Berry,  a  South  African skincare and haircare brand,  is a beacon of resilience and innovation in the beauty industry. Founded in 2011 by Relebohile  Moeng,  a  GIBS graduate with a master’s degree in business management,  Afri-Berry was born out of personal adversity.  After surviving a life-threatening car accident that left her with over  150  stitches on her face and experiencing retrenchment from her job,  Moeng sought affordable and effective skincare solutions. Her discovery of the healing properties of cold-pressed argan oil catalysed the launch of Afri-Berry, a company now known for its high-quality, organic, and vegan products.  Relebohile  Moeng and her husband  Fabian, who holds a BCOMPT degree in accounting science, conducted extensive research into organic skincare and haircare products. This research led to the launch of Afri-Berry in the City of Tshwane, South Africa. Since its inception, Afri-Berry has grown into a multi-award-winning brand known for empowering youth and women through its business practices.  Afri-Berry’s products,  which include solutions for both skin and hair,  are 100% organic and vegan. The brand’s commitment to quality and natural ingredients has earned it a place on the shelves of major South African retailers, including Pick n Pay, Checkers Hyper, Edgars, Zando, Faithful to Nature, and Cosmetic Connection. 

Afri-Berry’s success is bolstered by strategic partnerships that enhance its research, development, and market reach: 

Agricultural  Research  Council  (ARC): Afri-Berry has partnered with the  Agricultural Research  Council,  a premier science institution,  to conduct biological evaluation studies on traction alopecia, traction-related baldness, and hair loss. This collaboration underscores  Afri-Berry’s commitment to research and innovation, ensuring that its products are effective and backed by scientific research.  Department of Trade and Industry  (DTI):  As a key partner of the DTI,  Afri-Berry plays a crucial role in empowering young industrialists by providing them access to local and international markets. Through the DTI’s export marketing and investment assistance programs, Afri-Berry helps drive inclusive economic growth and development in South Africa.

Industrial Development Corporation (IDC): Afri-Berry’s vision to share Africa’s natural bounty with the world aligns with the IDC’s mission to promote economic growth and industrial development.  By leveraging its advanced extraction,  processing, purification,  and production methods,  Afri-Berry ensures that its products meet the highest standards of quality while honouring  Africa’s rich heritage. Afri-Berry offers diverse products, each designed to address specific skin and hair concerns. Some of the key products include: 

• Jamaican Black Castor Oil: Promotes hair growth, thickens thinning hair, detoxifies the scalp, and can be used on skin, eyebrows, and eyelashes.
• Moroccan Gold Argan Oil: Reduces acne, lightens stretch marks, removes dark spots, and minimises wrinkles and scars.
• Coconut Oil: Supports hair growth, moisturises hair, prevents stretch marks, and serves as a makeup remover.
• African Raw  Shea Butter: Treats dry skin, scalp eczema, and insect bites while providing deep hair conditioning.
• Scar-nil Jelly: Aids in treating scars once the scab has fallen off.
• Cellulite-nil Jelly: Encourages lymph drainage, improving skin tone and elasticity.
• Mango Shea Butter: Treats skin rash, eczema, insect bites, and sun damage. 

Afri-Berry’s commitment to innovation is evident in its private-label skin and hair care division, developed in response to customer demand for high-quality, naturally based products produced in smaller batch runs. Afri-Berry continues to lead the market in organic hair and skin repair solutions by keeping up to date with the newest ingredients and latest consumer trends. The company’s dedication to research and development is reinforced by its participation in local and international cosmetic conferences, trade shows, and exhibitions. This proactive approach ensures that Afri-Berry stays at the forefront of industry trends while continually improving its products and processes. Despite the challenges posed by South Africa’s economic landscape, Afri-Berry has demonstrated that resilience,  innovation,  and strategic partnerships can drive success.  Relebohile  Moeng’s journey from personal tragedy to entrepreneurial triumph inspires, proving that adversity can be transformed into opportunity. Through its collaborations with institutions like the ARC, DTI, and IDC, Afri-Berry not only meets but exceeds customer expectations while also contributing to the broader economic and social development of South Africa.  

Afri-Berry’s story is a powerful example of how personal adversity can be transformed into a successful business that empowers others. Afri-Berry has grown into a leading brand in the  South  African beauty industry since its origins as a small,  family-run business.  Its commitment to quality,  innovation,  and social impact,  strategic partnerships and a deep connection to Africa’s natural resources has positioned Afri-Berry as a brand that meets and exceeds customer expectations.  As  Afri-Berry expands, its vision to bring Africa’s natural beauty to the world remains at the heart of everything it does.

Question 2  [43 MARKS]  

2.1. “Relebohile Moeng and her husband Fabian, …, conducted extensive research into organic skincare and haircare products. This research led to the launch of Afri-Berry in the City of Tshwane, South Africa. The difference between venture success and failure is a function of whether the business idea is truly an opportunity. Before they invest their resources, they had to spend some time studying the viability of their business idea (whether their idea was an opportunity).  

With the above in mind, examine the five (5) major areas that Relebohile needed to understand to determine the viability of their business idea. (Ensure to provide an elaborated example for each of the major areas).  (5x3=15 Marks)                   

2.2. Critically describe how Afri-Berry can use the product life cycle framework to monitor the performance of their Organic Raw Mango Shea Butter. (Ensure to provide an example for each stage of the product life cycle based on the “Organic Raw Mango Shea Butter” product.)   (4x4=16 marks)  

2.3 Appraise how  Afri-Berry can employ the three  (3)  types of guerrilla marketing strategies to support the growth of revenue streams. Provide two (2) examples for each strategy. (cited in your prescribed courseware material). (3x4=12 marks)    

Question 3: [20 MARKS] 

3.1  Explain how  Afri-Berry can utilise the following trends to improve the company’s competitive advantage.   

• Big Data
• Blockchain
• Social Media
• Personal computing (4x2=8 marks) 

3.2 Discuss the four (4) categories of resources that Afri-Berry requires to deliver on its value proposition effectively. (4x3=12 marks)

Question 4:  [16 MARKS] 

Read the extract below and answer the following questions: 

National Youth Development Agency (NYDA) 

The NYDA is a  South  African-based agency established primarily to address challenges faced by the nation’s youth.  The  Agency was established by an  Act of Parliament (Act 54 of  2008).  The institution was established to be a single,  unitary structure addressing youth development issues at the National,  Provincial and  Local Government levels.  The  Agency should be seen within the broad context of  South Africa’s development dynamics. 

4.1. Provide any five (5)  reasons that validate the necessity of the National  Youth Development Agency (NYDA) as a government agency dedicated to promoting youth entrepreneurship.     (5x1=5 marks)  

4.2. Justify the significance of prototyping in driving innovation and enhancing competitiveness among youth-led entrepreneurial businesses in South  Africa, specifically concerning the NYDA‘s development initiatives.  

Note to the student: Your essay should not exceed 500 words. Use the rubric below as an additional guideline.