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THE STATE UNIVERSITY OF ZANZIBAR

LECTURER: MR HAJI ALI SULEIMAN

COURSE: COMMERCE AND OFFICE PRACTICE

SUBMISSION DATE: 05/02/2022

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QUESTION ONE

a) Market oriented business involved integrated marketing plan encompassing product,

price, promotion and distribution backed up by adequate environmental scanning,
consumer research and opportunity analysis. Emphasis on services “what can we do
that will make us better than and superior to our competitors in the eyes of consumer”?.

It mainly focuses on customer, and maximizes profits through increased consumer

satisfaction and hence have higher market share.

How Market Orientation Works

Market orientation is a customer-centered approach to product design. It involves

market research aimed at determining what consumers view as their immediate needs,
primary concerns, or personal preferences within a particular product category.

Companies may also employ additional data analysis to reveal trends and consumer
desires that are not specifically expressed. Knowledge of these trends ideally can help
product developers meet or even anticipate consumer needs. They may even inspire
improvements that the consumer was not aware of as being an option.

This allows a company to focus its product development efforts on the characteristics
that are most in-demand. With an increasingly global economy and the proliferation of
choices for consumers, companies that adapt to a market orientation may benefit from a
competitive advantage over other companies.

Examples of market oriented business are:

Amazon

Amazon is an example of a market-oriented company. As it has grown and developed, it

has consistently added processes and features that clearly address concerns and
desires expressed by consumers.
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For example, many consumers, especially city dwellers, worry about getting packages
delivered when they're not at home. The company responded with Amazon Locker, a
network of self-service pickup boxes.

Delivery charges, no matter how reasonable, are a chief irritant to consumers, and a
reason to buy locally instead of ordering online. Amazon Prime charges an annual fee
for the free delivery of most of its products.

Coca-Cola

Coca-Cola is another company that is famous for its market orientation. Considerable
research goes into identifying new flavors that consumers will actually like, such as wild
strawberry and lime. But those new flavors won't help Coca-Cola address the increasing
health consciousness of consumers. That's why the company acquired brands including
Dasani, Honest Tea, Smartwater, Simply Orange, Minute Maid, and Vitaminwater.
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b)

Objective setting is when an organization plans goals and how to meet them on a
realistic timescale. Objectives help define what each department's and employee's
responsibilities are within the organization. Setting objectives is part of establishing
expectations for employees and managing them, which is also called the performance
management process.

If you don't know where you're going, how will you get there? The first question a small
business owner should ask himself is: "What is my vision for the company?" How many
employees will it have? How much profit should the business make? How much does it
need to sell to make those profits? How fast can I grow my new business?.

The answers to all of these questions become the objectives of a business. These
objectives are the pillars of what a business owner wants his company to look like. They
are his long-terms visions. The challenge is how to convert these dream-like visions into
realities. That's where the objectives come in.

The following are the importance of bayeyo ice point in setting business objectives

Objective setting can help a performance management strategy when management

effectively communicates with their employees. When company and department leaders
communicate with employees, they can help learn what employees need to improve
their performance. Managers can accomplish this by encouraging an honest,
communicative work environment. For example, assume that an employee has a
personal issue that results in lowered performance at work. What may help is if
management adjusted the employee's work hours, or temporarily gave them time off to
handle their personal matters. With an open work environment, an employee may
communicate their problems to their manager more often. Management can encourage
communication through monthly meetings with employees. During these, management
can better understand the distractions, motivations and issues that affect an employee.

To control and measure performance. The aim and objectives help to control company’s
activities as they set the boundaries within the company shall operate. They also give
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managers the basis for measuring the performance of the business as a whole, and
evaluate business activities.

Business objectives often create a lot of conflict. Different stakeholder groups, who are
individuals or groups of individuals both internal and external to the business, have their
own objectives. Objectives of different stakeholders (e.g. owners or suppliers) often
differ from one another creating a zero-sum game – if I win, you lose. Hence, the
objectives of business organizations will be shaped by various stakeholders. And,
stakeholders’ objectives will be shaped by the objectives of a business.
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C)

Yes, I think economic growth in a country will lead to increased profitability of bayeyo
ice point

Economic growth means an increase in real GDP – an increase in the value of national
output, income and expenditure. Essentially the benefit of economic growth is higher
living standards.

When economic growth increases the bayeyo ice points output will increase, leading to
the expansion of bayeyo ice point and eventually make employment position to un
employed ones. Hence bayesyo ice point can produce more and reduce the
unemployment rate at the same time.

Higher average income:Economic growth enables consumers to consume more goods

and services and enjoy better standards of living. Economic growth during the Twentieth
Century was a major factor in reducing absolute levels of poverty and enabling a rise in
life expectancy.

Example:

When bayeyo ice point produces and sales more, then his income will increas and will
increase his standard of living and also the standard of living of his employees.

Improved public services. Higher economic growth leads to higher tax revenues and this
enables the government can spend more on public services, such as health care and
education e.t.c. This can enable higher living standards, such as increased life
expectancy, higher rates of literacy and a greater understanding of civic and political
issues.
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Investment. Economic growth encourages firms to invest, in order to meet future
demand. Higher investment increases the scope for future economic growth – creating
a virtuous cycle of economic growth/investment.

Money can be spent on protecting the environment. With higher economic growth a
society can devote more resources to promoting recycling and the use of renewable
resources. The Kuznets curve suggests that initially economic growth worsens the
environment, but after a certain point of growth, the damage to the environment will fall.
This theory is controversial. But, it is possible for higher growth to be consistent with
improved environmental outcomes.
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QUESTION 2.

Partnership deed is a partnership agreement between the partners of the firm on which
outlines the terms and conditions of the partnership between partners.

This is a legal written document which helps ensure that parties, overtime do not end up
in some misunderstanding, conflicts or harassment.

It is always suggested that there must be a partnership deed among the partners before
getting into any partnership business. But sometimes a partnership is started without
signing any such document. In case the partnership deed is absent, then treatments will
be applicable as per the provisions of the Partnership Act.

For Tanzania the law that governs partnership is part X of the Law of contract Act, Cap
345.

The following are the provisions that are relevant to the partnership accounts in
absence of partnership deed.

Profit/loss Sharing Ratio:

When a partnership deed is not made or even if it is made and is silent on sharing of
profit or losses among the partners of a firm, then according to the Partnership Act,
profits and losses is to be shared equally among all the partner of the firm.

This is regardless of the capital contributed by partners, each partner will get equally
share.

Example if the Residual profit obtained for the year was TZS 30 million, then the
share on profit to Bayeyo, Dydah and AsmaB will be TZS 10 million each.

Interest on Capital:

When there is absence of partnership deed or the partnership deed is silent on the
issue related to interest on partner’s capital, then according to the Partnership Act,
no interest on partners’ capital will be provided. However, if they mutually agree on
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the rate of the interest on capital, then they are free to give interest on capital out of
the profit of the firm.

Interest on Drawings:

If there is no partnership deed the issue related to the interest on drawing will be
handled according to the provisions Partnership Act,

The Act states that no Interest on drawings will be charged from the partners.

Example if Bayeyo withdraws TZS 1 million for personal use, then only withdrawn
amount will be debited to Bayeyo’s Current or Capital account

Interest on Partner’s Loan:

When there is no partnership deed among the partners or the partnership deed is
silent on interest on partner’s loan, then according to the Partnership Act, The
partners are entitled for 6% p.a interest on the loan forwarded by them to the firm

Example if Dydah provided Loan of TZS 20 million to their partnership, then Dydah
is entitled to receive 6% of 20 million per annum which is TZS 1.2 million. Such
amount will be credited to the Dydah’s Currrent or Capital account.

Salary to Partner:

When partnership deed is not there or it is silent on the issue related to salary to a
partner, then as per the rules of the partnership Act.. No partner will be entitled to
any salary.

This means that in absence of the partnership deed, it doesn’t matter if the partner is
Active or dormant, they shall not receive salary.

Capital contribution:

If there is no partnership deed, then not every partner must have contributed his
share of capital. Some partners like READ partners does not contribute any capital
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to the partnership but allows the business to use his/her name as means of
popularity and take advantage of the name to earn more customers

Right to inspect books of account.

On the absence of the partnership deed, The partnership Act allows and gives right
all partners to inspect books of account of the partnership and query and demand
answers if need be.

Minor:

On the absence of the partnership deed,The partnership act allows Minor (18 age
and below) to be admitted in the partnership by consent off all existing partners.

Settlement of disputes:

If there is no partnership deed, then any partner can settle disputes to the external
parties related to the partnership.

Example if Dydah caused a dispute with customer due to overpricing, then Bayeyo
or AsmaB can settle this on behalf of the partnership.

Court Final decision:

If the partnership somehow ends up in a courtroom, usually partnership deed serves

as a legal document that can influence the final decision served.

However if the partnership deed is absent, then the Partnership Act will be used
instead.
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QUESTION 3

Countries debt is the accumulation of annual budget deficits. It's the result of years of
government leaders spending more than they take in via tax revenues. A nation’s deficit
affects its debt and vice-versa.

Countries debt can be obtained through many sources such as:

1. From individuals- by issue of bonds-reduce consumption

2. From Non Banking Financial Institutions insurance companies, unit trusts etc.

3. From Commercial banks- own funds, credit creation

4. From Central Banks creation of fresh money

The countries debt has influence to commercial activities due to the following main
reasons:

 Debts tend to get the country extra funds to invest in their economic growth such
as development projects and public investments. This gives out opportunities for
traders for the supply of the projects requirements like cements, woods etc. The
commercial activities are positively influenced as well as commerce in general.

 Also as the economic grows, the per capita income grows hence the purchasing
power increases and this directly increases the influence of commercial activities
and commerce in general because of the Demand and Supply laws.

 Furthermore, if borrowed funds are effectively and appropriately utilized to the

development of the country for instance, some debts are used in the market
expansion projects like in ZANZIBAR. This creates more opportunities for traders
to conduct their business in an appropriate environment and effectively.

 Additionally, Country’s debts helps in loaning funds to low level entrepreneurs to

get funds from the government so as to maintain and grow their businesses.
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Although, the debts helps in many commercial activities but also hinders the commerce
in general, because the higher the debts the higher the risk of being over credited.

In order for the government to decrease the debts then they will have to increase the tax
rates and other charges to traders which will negative influence the commercial
activities and commerce in general