He explained, "the funds would be used for expansion of Zutshwa Salt production. The tests have indicated that it is 99.9 percent pure salt. Our intention is to expand production so that we can be able to meet market demand in our country. After expansion we foresee increase in our employment rate. Our output will also triple." Mr Molefe said the project currently employed 25 people on rotational basis every three months. He said the expansion project would start by August. He said, "we will start with a minimum of four boreholes which will provide us with more mineral (salt deposit). After that we will increase the ponds from the current 44 by building another 10 bigger ponds. We will also employ more than 45 people on permanent basis. Our output will triple and we will be able to meet the market demand and export. We are working on acquiring certificates of origin in order to be ready for export." Mr Molefe said LEA started working with the trust in 2015 by developing a business plan that led to P1.5 million funding from constituency development fund, which enabled them to increase ponds from 16 to 44. He said Zutshwa Salt supplied all Botswana Agriculture Marketing Board facilities in the southern part of Botswana with salt, together with Maun. Also, Mr Molefe said their salt was safe for consumption by people and livestock. He said their salt was cheap as 50 kg bags cost P54.50 and 65 kg lick blocks cost P70. Zutshwa Salt plant supervisor, Mr Pobiso Kgamatona, said their main challenge was constant breaking of equipment due to corrosive effect of salt. He said they use a simple method of harvesting salty water into ponds and allowing it to crystallise before adding iodine to it 73254943 mail@zutshwasalt.com The above case study is an excerpt from the Botswana Daily News published 20 July 2023 (https://dailynews.gov.bw/news-detail/74160) QUESTION 1 [25 MARKS] Use the case study above on LEA to answer the questions below. You may use other resources to supplement your answers. a. Zutshwa Salt project intends to enter the Namibian market as well as the rest of SADC and you have been tasked to assess its attractiveness. Conduct the analysis using the Porter's Five Forces (PFF) Model. (15 marks) b. Name and rank two cooperative strategies that you would recommend for accessing the market you have chosen in (a) above. (4 marks) c. Explain two (2) characteristics of salt mined at Zutshwa, and argue why each one is a source of its competitive advantage. (4 marks) d. Zutshwa was able to raise capital from SADC, UNDP and RDC. Explain, using examples in the case of Zutshwa, what aspects of the business model do financiers use to decide to fund or not to fund (2 marks)
He explained, "the funds would be used for expansion of Zutshwa Salt production. The tests have indicated that it is 99.9 percent pure salt. Our intention is to expand production so that we can be able to meet market demand in our country. After expansion we foresee increase in our employment rate. Our output will also triple." Mr Molefe said the project currently employed 25 people on rotational basis every three months. He said the expansion project would start by August. He said, "we will start with a minimum of four boreholes which will provide us with more mineral (salt deposit). After that we will increase the ponds from the current 44 by building another 10 bigger ponds. We will also employ more than 45 people on permanent basis. Our output will triple and we will be able to meet the market demand and export. We are working on acquiring certificates of origin in order to be ready for export." Mr Molefe said LEA started working with the trust in 2015 by developing a business plan that led to P1.5 million funding from constituency development fund, which enabled them to increase ponds from 16 to 44. He said Zutshwa Salt supplied all Botswana Agriculture Marketing Board facilities in the southern part of Botswana with salt, together with Maun. Also, Mr Molefe said their salt was safe for consumption by people and livestock. He said their salt was cheap as 50 kg bags cost P54.50 and 65 kg lick blocks cost P70. Zutshwa Salt plant supervisor, Mr Pobiso Kgamatona, said their main challenge was constant breaking of equipment due to corrosive effect of salt. He said they use a simple method of harvesting salty water into ponds and allowing it to crystallise before adding iodine to it 73254943 mail@zutshwasalt.com The above case study is an excerpt from the Botswana Daily News published 20 July 2023 (https://dailynews.gov.bw/news-detail/74160) QUESTION 1 [25 MARKS] Use the case study above on LEA to answer the questions below. You may use other resources to supplement your answers. a. Zutshwa Salt project intends to enter the Namibian market as well as the rest of SADC and you have been tasked to assess its attractiveness. Conduct the analysis using the Porter's Five Forces (PFF) Model. (15 marks) b. Name and rank two cooperative strategies that you would recommend for accessing the market you have chosen in (a) above. (4 marks) c. Explain two (2) characteristics of salt mined at Zutshwa, and argue why each one is a source of its competitive advantage. (4 marks) d. Zutshwa was able to raise capital from SADC, UNDP and RDC. Explain, using examples in the case of Zutshwa, what aspects of the business model do financiers use to decide to fund or not to fund (2 marks)
Chapter17: Organizational Planning And Controlling
Section: Chapter Questions
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