BMNG5111 IIE Business Management Maximize Profit Assignment KINDLY all activities must be done through the assignment, PLEASE FOLLOW THE INSTRUCTION.please

BMNG5111 IIE Business Management Maximize Profit Assignment KINDLY all activities must be done through the assignment, PLEASE FOLLOW THE INSTRUCTION.please check the attachment below. 19
2019
MODULE NAME:
MODULE CODE:
BUSINESS MANAGEMENT 1A
BMNG5111
BUSINESS MANAGEMENT 1A
BMNG5111d
BUSINESS MANAGEMENT 1A
BMNG5111e
BUSINESS MANAGEMENT 1A
BMNG5111f
BUSINESS MANAGEMENT 1A
BMNG5111p
BUSINESS MANAGEMENT 1A
BMNG5111w
BUSINESS MANAGEMENT 1A
BMNA020
ASSESSMENT TYPE: ASSIGNMENT 1 (PAPER ONLY)
TOTAL MARK ALLOCATION: 100 MARKS
TOTAL HOURS: 10 HOURS
By submitting this assignment, you acknowledge that you have read and understood all the rules
as per the terms in the registration contract, in particular the assignment and assessment rules in
The IIE Assessment Strategy and Policy (IIE009), the intellectual integrity and plagiarism rules in
the Intellectual Integrity Policy (IIE023), as well as any rules and regulations published in the
student portal.
INSTRUCTIONS:
1.
No material may be copied from original sources, even if referenced correctly, unless it is a
direct quote indicated with quotation marks. No more than 10% of the assignment may
consist of direct quotes.
2.
Any assignment with a similarity index of more than 25% will be scrutinised for
plagiarism. Please ensure you attach an originality report to your assignment if required.
3.
Make a copy of your assignment before handing it in.
4.
Assignments must be typed unless otherwise specified.
5.
All work must be adequately and correctly referenced.
6.
Begin each section on a new page.
7.
Follow all instructions on the assignment cover sheet.
8.
This is an individual assignment.
© The Independent Institute of Education (Pty) Ltd 2019
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Referencing Rubric
Providing evidence based on valid and referenced academic sources is a fundamental educational
principle and the cornerstone of high quality academic work. Hence, The IIE considers it essential to
develop the referencing skills of our students in our commitment to achieve high academic
standards.
Poor quality formatting in your referencing will result in a penalty of a maximum of five (5) marks
against the percentage mark awarded, according to the following guidelines. Please note, however,
that evidence of plagiarism in the form of copied or uncited work (not referenced), absent
reference lists, or exceptionally poor referencing, may result in action being taken in accordance
with The IIE’s Intellectual Integrity Policy (0023).
Required
Subtract 1
Subtract 2
Subtract 3
Subtract 4
Subtract 5
• Consistent intext
referencing
style
• Quotation
marks, page
numbers,
years, etc.
applied
correctly
• Only one or
two minor
mistakes in
style made
• All sources
are
accurately
reflected and
included in a
reference list
• Consistent intext referencing
style
• Quotation
marks, page
numbers, years,
etc. applied
correctly
• Fewer than five
minor mistakes
made
• More than 90%
of the sources
are correctly
reflected and
included in a
reference list
• Consistent intext
referencing
style
• Quotation
marks, page
numbers,
years, etc. not
always
applied
correctly
• Not all
paraphrased
content
referenced
• At least 80%
of the sources
are correctly
reflected and
included in a
reference list
• Consistent
in-text
referencing
style
• Quotation
marks used
for direct
quotes but
page
numbers
missing
• At least 70%
of the
sources are
correctly
reflected
and
included in
a reference
list
• In-text
referencing
used but
inconsistent
• Paraphrased
material cited
but not
referenced
accurately or
consistently
in text
• Quotation
marks and/or
page numbers
for direct
quotes
missing
• At least 60%
of the sources
are correctly
reflected and
included in
reference list
• Poor and
inconsistent
referencing
style used
• At least 50%
of the
sources are
correctly
reflected
and included
in reference
list
• Quotation
marks
and/or page
numbers for
direct quotes
missing
• May be
referred for
action in
accordance
with IIE 0023
Intellectual
Integrity
Policy
© The Independent Institute of Education (Pty) Ltd 2019
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Discovery
Adrian Gore is the founder and Chief Executive Officer of Discovery.
Fast facts:
•
Member of the World Economic Forum’s Global Health Advisory Board
•
Named South Africa’s Best Entrepreneur by Ernst & Young in 1998
•
Chosen by The Sunday Times as Business Leader of the Year in 2010
•
South Africa chair of Endeavour, a global non-profit organization dedicated to supporting
high-potential entrepreneurs in emerging markets
It was back in 1992, when Adrian Gore started Discovery. He had an idea for a health-insurance
model that would make people healthier. This South African venture quickly grew into a global
player, with a market cap of over $8 billion and a foothold in major markets, including the United
Kingdom and China.
In the following section, Gore reflects on the Discovery Group’s sources of innovative energy and
on the organisational efforts required to maintain that energy as the company grows. One key,
says Gore, is that rewards and risk taking go hand in hand at Discovery, which puts its money
where its mouth is by making an innovation score part of each manager’s performance evaluation
and by conducting an annual competition to identify creative new ideas.
His reflection:
When I started out as a young actuary in a life-insurance company, South Africa was moving from
an apartheid state to a proper democracy and facing some serious challenges, particularly in
healthcare. There was an undersupply of doctors, an unusual combination of disease burdens, and
a new regulatory environment that had zero tolerance for the discrimination of the past, and
rightly so. This meant you couldn’t rate customers on pre-existing conditions. Finally, unlike most
countries, where a national system partially covers risk, there was no unified public healthinsurance system at that time.
© The Independent Institute of Education (Pty) Ltd 2019
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When you put those four things together, sustainably financing healthcare becomes a very
complex undertaking. When we formed Discovery, we asked the question, “How do you innovate
and build a health-insurance system that can work in this kind of environment?”
Our gut instinct was that if you can make people healthier, you can offer more sustainable
insurance. It turns out that three lifestyle choices (smoking, poor nutrition, and poor physical
activity) contribute to four conditions (diabetes, cancer, heart disease, and lung disease) that drive
over 50 percent of mortality every year. So lifestyle choices are fundamental to any socialinsurance system. The behavioural science tells us that people need incentives to make a change.
But that wasn’t universally known at the time; we were just a start-up acting on a hunch.
When we were starting out, a massive gym chain approached us with the idea to sell our health
insurance to their membership base — a classic cross-sales strategy. Our breakthrough came
when we flipped this idea around: What if you can use the gyms when you get your insurance
from us? But we couldn’t figure out how to afford it.
Then we thought, “Well, what if you earn points by doing healthy things? Then those points give
you access to cool rewards and a discount on your premium?” That idea was the catalyst for
everything, which I think is true of innovation. It’s a moment in time. It’s not always a revelation in
a laboratory. In my experience, it’s right there in front of you. Once you get it, you run with it.
The genesis of Vitality
That initial idea was the genesis of our Vitality program, which has evolved into a complete
wellness system that tracks everything from physical activity to nutrition over the course of a
person’s life. For instance, customers earn points by logging their workouts with fitness devices
from Nike+, Fitbit, and others. These sync up with Vitality directly, through a computer, or with
mobile apps on smartphones. When you go to our partner grocery stores, the healthy food is
clearly demarcated on the shelf, and you get a 25 percent discount at the register when you swipe
your Vitality card. When we first launched the program, we were criticized for wasting healthcare
dollars on incentives, but customers went berserk for it.
Today, Vitality is the foundation of our business model, driving every one of our offerings. Take
life insurance. It seemed to us that the system was broken. What happens when you fill out an
application? They basically cut you in half for a detailed health analysis — blood tests, medicals.
© The Independent Institute of Education (Pty) Ltd 2019
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From that, they derive a very sophisticated rating that often comes with a rate guaranteed for life.
But how does it make any sense to set a rate at a certain point in time, when a change in your
behaviour could shift the underlying risk throughout your life?
So we decided to offer a new, competitive model. The beauty of it is the shared value it creates
for our customers, our company, and society. Our customers are given an incentive to become
healthier, lowering their premiums. And we are able to operate with better actuarial dynamics
and profitability.
In 2001, we rolled out Discovery Life on this basis, and soon became the number-one provider of
life insurance in South Africa. Our competitors have been around for more than a hundred years,
but they don’t have Vitality. If you understand the scale of the program, you can see it’s not a
capability that could easily be copied. We log 70,000 gym visits per day; people have bought a
hundred million dollars’ worth of healthy food in the last few years through our structure. Vitality
has provided a competitive advantage that has served us well both inside our home country and
beyond it.
The flexibility of Vitality’s structure allows us to enter markets where we could never become the
main insurer; the barriers to entry are just too high. We can instead partner with established
insurers in those markets by scaling our Vitality model as needed. In the United Kingdom, we
worked with Prudential initially but recently acquired full ownership of our health- and lifeinsurance businesses there. In the Asia-Pacific region, we are now rolling out our model across
some of AIA’s markets. We also have an equity stake in Ping An Health, working with one of
China’s largest insurers, Ping An. Just this year, we’ve established a new partnership with John
Hancock Life Insurance in the United States, and we’re developing one with Generali in Europe, as
well.
The model that keeps on giving
Just as Vitality has allowed us to expand geographically, it has also been an additive model that
can accommodate other dimensions. For instance, we found that most motor insurance suffers
from the same irrationalities as healthcare and life insurance: people under consume wellness,
which in this case means safe driving.
© The Independent Institute of Education (Pty) Ltd 2019
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We saw an opportunity to develop a standard vehicle-tracking device that monitors not only the
location of a car but also how people are driving — the acceleration, G forces. Rory Byrne, a South
African engineer who designed cars for the racing driver Michael Schumacher, has helped us with
the telematics to build a Formula One-level analysis of a person’s driving behaviour. But that
requires a complex black-box install in the car. So, we’ve been working with a company founded
by two MIT professors to build an application that also works directly through your smartphone. It
has given us some amazing insights into what we call “driving DNA”. We can immediately tell if
someone else is driving your car or if you’ve gotten into an accident, just by the deviation in data,
which raises a red flag. The Vitalitydrive program allows us to track our customers, to reward
them for good driving with a lower premium and a discount on gas, and to provide real-time
emergency assistance.
A cycle for innovation
We’re often asked, “Can you keep innovating?” The truth is, I find that the more you innovate, the
more you can innovate. Most innovation in companies is event based. A competitor comes up
with something, and the company responds. We do the opposite. Our leaders are always on a
treadmill to create and launch new ideas. For example, every year we have a rock-star launch
where we’re presenting something new to thousands of our intermediaries who own sales. Our
guys know the date is booked. The concert’s happening. You just better write the music.
To push ourselves to find the next idea, we have an internal competition every year called
Inspiring Excellence, where our top one thousand leaders break into teams of two to four people
and work on new concepts. Throughout the year, we hold contests until we’ve narrowed down to
the top five teams, who present at our annual management conference. Even ideas that don’t win
often prove to be winners later on, when we roll them out. This program provides us with a strong
inventory of possibilities, which are continually replenished.
Twice a year, our remuneration committee looks at each business and gives it an innovation
score. So the take-home bonus of a thousand people is based on a subjective review of the
success of their launches. But even beyond that pool, all our employees are involved in this timebased cycle, working on projects. Across the organization, there’s a natural metronome of our
innovation.
© The Independent Institute of Education (Pty) Ltd 2019
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I genuinely believe that the smartest people work for the organizations they believe are doing
good. At Discovery, our people have built innovative businesses that are good not only for the
company but also for our customers. I’m dedicated to Discovery’s work in building South Africa
and communities around the world. I want South Africans to look at Discovery with hope, to feel
the future is certain.
About the author(s)
Adrian Gore is the founder and CEO of Discovery. This commentary was adapted from an
interview conducted by Jill Hellman.
Source: [Online] available from: https://www.mckinsey.com/industries/healthcare-systems-andservices/our-insights/how-discovery-keeps-innovating.[Accessed: 27 October 2018].
Recommended additional reading: The latest annual report of Discovery group by following this
link: https://www.discovery.co.za/corporate/investor-annual-report
Question 1: Case study/ Essay
(Marks: 60)
Instructions:
Read the case study above together with the recommended additional reading, and answer the
questions that follow in an essay format of 1500 – 2000 words (2.5 to 3 pages).
1.
Begin the essay with an introduction.
2.
Each question should be answered in a separate paragraph with a clear heading/ subheading.
3.
When answering the question, begin by discussing the theory from the book and other
sources, then apply to the case given.
4.
Reference your work properly.
5.
End your easy with a conclusion section.
6.
This question should therefore consist of an introduction, body and conclusion.
Note: you will have to conduct additional research when answering these questions.
Q.1.1
The description of business emphasises four key elements namely: human
(10)
activities, production, exchange and profit.
Discuss the role of Discovery as a business organisation in the South African
society making reference to the four key elements of business.
© The Independent Institute of Education (Pty) Ltd 2019
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Q.1.2
2019
Explain with the use of examples, how the following sustainability themes are
(10)
addressed in the Discovery context: employment equity, business ethics and
consumerism.
Q.1.3
This question has two important points that should be answered. Please
(10)
ensure that you read the questions carefully and respond to both.
a)
Identify and explain the economic system inherent in South Africa.
b)
Explain what you think would have happened to Discovery if South
Africa was a Command economy.
Q.1.4
This question has two important points that should be answered. Please
(10)
ensure that you read the questions carefully and respond to both.
a)
Three key skills are identified as prerequisites for sound management.
However, these skills have varied importance at various managerial
levels. Describe the skill that is necessary for top management at
Discovery.
b)
Q.1.5
Provide an example of how this skill is used by the top management.
There are certain traits and characteristics that are typical of entrepreneurs,
(10)
such as Mr Gore from Discovery. Identify and explain how Gore displays these
traits.
Q.1.6
Explain how Discovery addresses the principles of good corporate governance.
(10)
© The Independent Institute of Education (Pty) Ltd 2019
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The following rubric will be used to assess each sub-question in Question 1.
Theoretical
Marks [6
Marks]
Discussion of
theory in the
context of the
question
asked.
Unsatisfactory discussion
of theory
0-2 marks
Average discussion of theory
•
•
•
•
•
None of the
theoretical elements
are discussed.
Theory discussed is
not relevant to the
theory in the book.
The facts are not all
clear and correct.
Titles/ main headings
are correct but the
discussion is
incorrect.
3-4 marks
•
•
•
•
Application
marks (4
marks)
Applying the
theory to the
case study
within the
context of the
question.
Excellent discussion of
theory
5-6 marks
Some of the theoretical
elements are discussed.
Half to most of the main
points of the topic are
covered.
Facts are clear and wellfocused, but are not
supported by detailed
information.
Most of the information
is relevant and
presented in a logical
order.
Titles/ main headings
are correct and
discussion is relevant.
•
•
•
•
All theoretical elements
are thoroughly
discussed.
Facts are clear and wellfocused and are well
supported by detailed
and accurate
information from the
book and other sources.
All the theory discussion
is relevant and
presented in a logical
order.
Titles/ main headings are
correct and discussion is
correct.
Unsatisfactory
application of theory
0-2 marks
Average application of
theory
3 marks
Excellent application of
theory
4 marks
•
•
•
•
Application of theory
to the case is not
clear.
The student
demonstrates very
little to no
understanding of the
topic theory and
application thereof.
•
•
Application of theory to
the case is clear and
well-focused, but not
supported by sufficient
and detailed
information.
Application to the case
is relevant and
presented in a logical
order.
Application shows a
good understanding of
the theory.
•
•
Application of theory to
the case is clear and
well-focused, and
supported by sufficient
and detailed
information/ examples
from the case and other
sources.
Application to the case
is relevant and
presented in a logical
order.
Application shows
excellent understanding
of the topic.
© The Independent Institute of Education (Pty) Ltd 2019
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Question 2: Learn Activities
(Marks: 40)
In order for you to complete this question, you will be required to visit the BMNG5111 Learn site
to respond to the question provided below.
Please note: You are required to submit your answer on the IIELearn platform as well as with the
assignment.
Q.2.1 You are required to login to the BMNG5111 Learn platform and navigate your
way to Learning Unit 6. Begin by working through the content of Learning Unit 6
on Learn in order to obtain a good background of the theory before you attempt
to complete the activity instructed below. Make sure that you have your
textbook close by and use it in collaboration with the content provided on Learn.
Q.2.1.1
Complete Activity 6.1.1 on Learn.
(8)
Q.2.1.2
Use the Table in Activity 6.1.1 and specify the functional area, key
(12)
skills required and role of each of the ABC Logistics staff members as
depic…
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