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Business management
1A/Management Principles and Practices
Human Resources Management
NQF Level 6
Individual Assignment
Tasneem Samuels
23 th August 2019
Simone Rustin
201814699
Index Page
Statutory contractual arr angements .. ……….. 1
Commercial contractual arrangements ………………………….2
General legal requirements ………………. .3
A systems view with input processes, output outcomes and
feedback .. 4
What is franchising 5
What is the process of franchising. ……… .. 6
What are the advan tages of franchising? ………. …….. . 7
The guidelines for an organisation to ensure communication is
effe ctive .. 8
In my assignment I will be discussing statutory contractual arrangements ,
commercial contractual arrangements, general legal requirements and a systems
view with input processes, output outcomes and feedback.
I will also discuss what a
franchise is, its process and advantages as well as the guidelines for an organisation
to communicate effectively .
Statutory contractual agreements
Statutory requ irements th at is recommended by the law are constantly altered and
are guidelines that en trepreneurs must at all times seek to attain the most up to date
relevant information (Gideon Nieman, Alf Bennet, 2014 ).
South African Revenue Service ( SARS , n.d ), is a government service agency in
charge of administration tax and customs legislation in South Africa (SARS, 2019).
This means that e very business must be registered with SARS for tax related
purposes regarding income (Gideon Nieman, Alf Bennet, 2014). Ac cording to the
law, a business should be registered with SARS within 60 days before the business
operates (Caxton Central n. d ). For a business that earns R300 000 per year and
more, value added tax (VAT) will required (Gideon Nieman, Alf Bennet, 2014). If
youre an employee in a business, the employer can deduct , income tax (Gideon
Nieman, Alf Bennet, 2014).
Industrial and Trade R egulat ions , v arious companies or businesses has different
sorts of legislation depending on the type of business for example a liquor store is
required to follow a Liquor Act. When having a business, an entrepreneur should
bear in mind the following acts (Gideon Nieman, Alf Bennet, 2014).
The Basic Conditions of Employment Act (BCEA), the Employment Act and the
Labour Relations all control different areas of employment in a business (Gideon
Nieman, Alf Bennet, 2014). The Factories Act control different aspects of
manufacturing, for instance safety conditions inside factories (Gideon Nieman, Alf
Bennet, 2014). The Liquor Act i s related to businesses that produce or exchange
alcoholic products (Gideon Nieman, Alf Bennet, 2014). The Machinery and Building
Works Act, relates to safety rules or regulations on building sites for example the
wearing of hard hats or heavy clothing gear (Gideon Nieman, Alf Bennet, 2014). The
Mines and Works Act, relates to businesses that are engaged in mining and digging
procedures (Gideon Nieman, Alf Bennet, 2014). The Shops and Offices Act , applies
to different aspects of safety regulations and other regulatory procedures that applies
to office buildings and retail stores (Gideon Nieman, Alf Bennet, 2014). The Business
Names Act does not allow the use of words such as government or United
Nations as part of the business or organisations name and also words that are
offensive (Gideon Nieman, Alf Bennet, 2014).
Licence is needed from the authorities for specific businesses for instance casinos,
bottle stores, restaurants , and shebeens . Entrepreneurs will usually be helped out by
local authorities to make sure that their businesses receives the required licences
(Gideon Nieman, Alf Bennet, 2014).
Commerci al contractual agreement
When a business is created, various business arrangements needs to be
implemented in order to ensure smooth operations (Gideon Nieman, Alf Bennet,
2014). The se arrangements are indicated to business contracts (Gideon Nieman, Alf
Bennet, 2014). The level of these contracts will vary from business to business
varying on its size and nature (Gideon Nieman, Alf Bennet, 2014).
According to Gideon Nieman, Alf Bennet (2014) Licensing agreements, refers to
agreements that allows a busine ss to use patented designs, trademarks and
processes that belong to a party outside the venture . Licensing is mostly confused
with franchise agreements for example Amstel Lager is a well -recognised beer brand
in South Africa and it is manufactured unde r licence (Gideon Nieman, Alf Bennet,
2014). This signifies that the owner of the Amstel patent has made knowledge
obtainable to the South African brewery which allows it to brew the beer locally
(Gideon Nieman, Alf Bennet, 2014). Licencing varies from fra nchising since licencing
is a plain transfer of information (Gideon Nieman, Alf Bennet, 2014). Licensee does
not have strict regulations on how to manage his or her business but to ensure that
the owner or manufacturer does not lessen the quality of the pr oduct manufactured
under licence (Gideon Nieman, Alf Bennet, 2014).
Franchise agreements, allows a franchisee (the person who bought a franchise ) to
utilise the comprehensive business system of a franchisor (the person who sole the
franchise) (Gideon Nieman, Alf Bennet, 2014). This kind of agreement is far more
widespread than licensing agreement (Gideon Nieman, Alf Bennet, 2014). Usually,
the franchisor will supply the franchisee with a complete package to establish the
business, using developed busin ess package that involves a product, managing
assistance, preparations procedures, accounting and administrative procedures
(Gideon Nieman, Alf Bennet, 2014). Even though franchising is an independent
business, the franchisee joins other franchisees in the proce ss of promoting a sin gle
brand (Gideon Nieman, Alf Bennet, 2014). In South Africa, the South African
Franchise Association (SAFA) keeps an eye on the ethical behaviour of franchises
(Gideon Nieman, Alf Bennet, 2014).
Agency agreements, an agency occu rs when one person and the agent closes a
legal act with a thir d party on behalf of a principal (Gideon Nieman, Alf Bennet,
2014). A legal affiliation is created between the principal and the third party (Gideon
Nieman, Alf Bennet, 2014). Agency agreeme nts are firmly operated since the agent
can bind the first and third parties to a legal agreement (Gideon Nieman, Alf Bennet,
2014).
Renal agreements, when a business venture is created, various rental agreements
can be entered into (Gideon Nieman, Alf Be nnet, 2014). Rentals such as an office
space, shop or factory forms part of the basic rental agreements (Gideon Nieman,
Alf Bennet, 2014). These rental agreements needs many types of security that has
an influence on the choice of business ownership (Gideo n Nieman, Alf Bennet,
2014).
Supply agreements, when a business is created, the entrepreneur should always
enter into agreements with different types of suppliers (Gideon Nieman, Alf Bennet,
2014). For example if an entrepreneur creates a retail store, var ious suppliers should
be secured such as soft drinks or types of food (Gideon Nieman, Alf Bennet, 2014).
The entrepreneur must purchase these products through a credit agreement with the
supplier (Gideon Nieman, Alf Bennet, 2014).
Internal contractual agre ement, means agreements that is extended with employees,
representatives organisations and labour relations (Gideon Nieman, Alf Bennet,
2014). If these agreements are not met in the establishment phase then this can
cause the venture to collapse which can lead to the crippling labour strikes and other
forms of legal action that employees can possibly take against the business (Gideon
Nieman, Alf Bennet, 2014).
General legal requirements
The Promotion of Access to Information Act, was created in 2013 and needed all
businesses to uphold specific records (Gideon Nieman, Alf Bennet, 2014). The
important part of this act is t o respect and promote Human Rights (Gideon Nieman,
Alf Bennet, 2014). Usually these records involve knowledge a bout the incorporation
of business, documents involving taxation, employee contracts, share option
schemes and bank details (Gideon Nieman, Alf Bennet, 2014). The rule about this is
that these documents are only obtainable to offices that represents formal authority
for instance a tax officer or a building inspector (Gideon Nieman, Alf Bennet, 2014).
If an employee believes that him or her Human Rights has been violated then they
may access the documents in order to contact the owner of the business (Gideon
Nieman, Alf Bennet, 2014).
National Credit Act 34 of 2005, tries to promote a fair and non – discriminatory market
place so that consumer credit can be accessed, to provide general regulation of
consumer credit and develop standards of consumer information (Gideon Nieman,
Alf Bennet, 2014). The National Credit Regulator ( NCR ) involves the registration of
credit providers, credit bureaus, debt counsellors and which means that they have to
obey by this act (Gideon Nieman, Alf Bennet, 2014).
South African B ureau of Standards (SABS ), is a government agency that involves
the minimum requirements of specific products mostly where safety and health are
concerned (Gideon Nieman , Alf Bennet, 2014). Usually products that are controlled
by the SABS which are vehicle brakes, electrical appliances and food products for
instance canned products (Gideon Nieman, Alf Bennet, 2014).
Product Liability, A business should make sure that all its products are safe to use
(Gideon Nieman, Alf Bennet, 2014). The entrepreneur should also take the
necessary actions to protect himself against any lawsuits just in case the product
causes any harm or damages (Gideon Nieman, Alf Bennet, 2014). If the p roduct
affects the persons health due to product failure then he or she can sue the supplier
for the damage (Gideon Nieman, Alf Bennet, 2014). An entrepreneur should put
suitable warnings on product labels for any dangers or harm to consumers and also
pr ovide conditions such as warnings on chemical containers like detergents and so
on (Gideon Nieman, Alf Bennet, 2014).
Environmental Legislation, There are various regulations relating to environmental
protection which was increasing due to reckless action s of entrepreneurs who dump
their toxic waste in rivers or pollute the air with toxic radiations (Gideon Nieman, Alf
Bennet, 2014). To ensure this does not happen, entrepreneurs should ensure that all
laws are obeyed regarding the disposal of waste or air pollution since this can lead to
fines or disclosure of the business (Gideon Nieman, Alf Bennet, 2014).
Consumer Protection Act 68 of 2008, the aim of this act is to promote a fair,
accessible and bearable market place for consumer products and to create n ational
norms and standards concerning consumer protection (Gideon Nieman, Alf Bennet,
2014).
A systems view of business
Inputs
Teachers
Learners
Knowledge
School Fees
School Buildings
Technology
Business adds its value here
Source: Adapted from Gideon Nieman, Alf Bennet ( 2014 , p. 12 )
What is franchising?
It is an agreement whereby the franchisor allows a person or franchisee to market
products or services according to rules and procedures of the franchisor meaning the
franchisor allows one or more franchisees to work under the franchisors trade name
Organisation s
Processes
Classes
Assignments
Examinations
Excursions
Term papers
Outputs
Learners
progressing
to the next
grade
and ut ilise the franchisors developed methods and procedures through a franchise
agreement (Gideon Nieman, Alf Bennet, 2014). . It generally means that one party
(a franchisor) gives another party (a franchisee) th e right to carry on a specific name
or trade ma rk (Anita Campbell, 2012). (Chandra S. Mishra , 2017) Stated that
Franchising is a business model decision . This means that the franchisee will
obtain training and support as part of the franchise package (Gideon Nieman, Alf
Bennet, 2014)
What is the pro cess of franchising ?
The procedure of purchasing a franchise is similar to purchasing another business
(Gideon Nieman , Alf Bennet, 2014 ). Find your skills and desires, (Gideon Nieman,
Alf Bennet, 2014) Select a product or service (Gideon Nieman, Alf Bennet, 2014)
Research possible franchisors (Gideon Nieman, Alf Bennet, 2014) Examine the
franchisors and their systems (Gideon Nieman, Alf Bennet, 2014) Compare
franchisors and choose the best one (Gideon Nieman, Alf Bennet, 2014) Obtain
disclosure docum ents (Gideon Nieman, Alf Bennet, 2014) Get a lawyer to set up the
franchise agreement (Gideon Nieman, Alf Bennet, 2014) . Once everything is in order
regarding how your franchise will operate, you need to get your legal documents in
order to complete the pa perwork of franchising (Carol Tice n.d)
What are the advantages of franchising?
The franchisor will allow one or more franchisees the right to manage the franchise
under the owners trade name, utilise methods and well -developed procedures within
a franch ise agreement (Gideon Nieman, Alf Bennet, 2014). Clients will be
acquainted with the franchise location, a n established customer base will be present
and employees who are experienced will join the franchise (BJ Erasmus, JW
Strydom, S Rudansky – Kloppers, 2015). The franchisees will receive training and
support as part of the franchise platform (Gideon Nieman, Alf Bennet, 2014).
Pl anning and preparation will be built on past knowledge and data, supplier relations
will be in order, the stock and equipment will be in order and the owner will ensure
that financing accessible (BJ Erasmus, JW Strydom, S Rudansky – Kloppers, 2015)
The guidelines for an organisation to ensure communication is effective
Inside an organisation, communication is a very v ital activity. Effective
communication has to take place in order for the organisation to achieve its goals
and objectives (Gideon Nieman, Alf Bennet, 2014). Below are some guidelines that
will ensure communication to be effective in a work place (Gideon N ieman, Alf
Bennet, 2014).
Select a suitable medium, make sure that the medium you decide on is profitable for
example some clients might not like speaking on a cell phone so an email will be
suitable for them (Gideon Nieman, Alf Bennet, 2014). Ensure that messages are
readable and understandable for clients meaning ensure that the communication is
in a language that the clients will understand (Gideon Nieman, Alf Bennet, 2014 ).
This also means that you should speak or communi cate clearly and audibly so that
the person can have a clear understanding of what is being said (Janse Maritz
Mcom, PHeD, Moira Bender and Philip Kotze, 2015) . Keep your emotions separate
from the messages meaning if you in a bad mood then dont respond immediately to
the message (Gideon Nieman, Alf Bennet, 2014 ). Be a good listener (Gideon
Nieman, Alf Bennet, 2014 ). This means listen carefully to what is being said by t he
other person (Janse Maritz Mcom, PHeD, Moira Bender and Philip Kotze, 2015) and
do not respond unless you completely understand what is being said (Gideon
Nieman, Alf Bennet, 2014 ).
In my assignment I discussed statutory contractual arrangements , commercial
contractual arrangements, general legal requirements and a systems view with input
processes, output outcomes and feedback. I will also discuss ed what a franchise is,
its process and advantages as well as the guidelines for an organisation to
communicate effectively .
References
(G ideon Nieman, Alf Bennet , 2014) – Business Management, A
Value Chain Approach – Van Schaik Publishers, A division of
Media24 Books, 1059 Francis Baard Street, Hatfield, Pretoria
South Africa
(BJ Erasmus, JW Strydom, S Rudansky – Kloppers, 2015) –
Business Management – Oxford Univer sity Press Southern
A frica (Pty) Limited – Cape Town, South Africa
(Janse Maritz Mcom, PHeD, Moira Bender and Philip Kotze,
2015) – Business communic ations – EDGE learning me dia (Pty)
Ltd – Cape Town, South Africa
(SARS, Saebassy.org/south -africa -revenue -service/
(Caxton Central n.d )- –
your -business/companies/
(Carol Tice n.d) –
