from the bank for 8% of the required amount and 92% of the required amount from the selling
of more shares, or d) taking out a loan from the bank for 73% of the required amount and 27%
of the required amount from the selling of more shares? Show all your calculations and
indicate how you interpret the findings in each situation.
[25 marks]
QUESTION 3
Calculate the SPACE Matrix coordinates from the information provided in the table below.
Plot the vector and list the suggested alternative strategies. Which specific strategies would
you implement if the enterprise operates within the small stock farming industry?
FS: |Access to capital is a problem|
The exchange rate is deteriorating
CA: | High quality services provide competitive advantage
Located favourably in the center of town
Highly qualified and experienced team
IS: | Reluctance of companies to pay for services renderred
Business environment is highly disruptive currently
ES: | Very few competitors are active in this segment of market
Low GDP figures are forcasted
Rating:
2
2
-4
-3
-5
L
3
-2
-6
|Resultant: | Coordinates:
y-axis
x-axis
[25 marks]
QUESTION 4
Consider the following information. Interpret and plot the relevant coordinates onto an IE
Matrix. Which alternative strategies are recommended? If you are the owner of a broom
manufacturing enterprise, convert the suggested alternative strategies into specific and
realistic strategies.
[25 marks]
IFE: INTERNAL FACTOR EVALUATION
KPI's (key performance indicators)
1 Offers a high quality value proposition
STRENG THS
2 Sufficie nt access tostart-up & working capital
3 Owner-manager is well experienced in business|
1Employees are not reliable
WEAKNESSES |2 The equipment oldandrequire regularservicing|
3 Factory rent is very high
OPPORTUNITIES|
THREATS
EFE: EXTERNAL FACTOR EVALUATION
KPI's
1The export marketis lucrative
2 Access to many potential aistomers
3 Barriers of entry for this productis high
1 Political uncertainties in potential target market|
2 Export markets are highly volatile
3 Distributors need large storage Facilities
[|
IR
PR
ws
0.25
3
0.75
0.15
4
0.60
0.10
4
0.40
0.20
2
040
0.18
2
0.36
0.12
2
O24
1.00/CWS:| 275
IR
PR
ws
0.31
4
1.24
0.15
4
0.60
0.20}
4
0.80
0.16
1
0.16
0.08
1
008
0.10
1
0.10
1.00|/CWs:] 298
TOTAL MARKS: 100