MNE3704 Assignment 6 TEST (ANSWERS) Semester 1 2026 - Due 29 May 2026

MNE3704 Assignment 6 TEST (ANSWERS) Semester 1 2026 - Due 29 May 2026. For assistance, Whats-App 0.8.1..2.7.8..3.3.7.2. Guaranteed distinction quality with trusted academic solutions, clear explanations, professional formatting, and reliable support. .. QUESTION 1 Read the case study and then answer the questions that follow. Case Study: Transfer of Power in a Family Business – Pick n Pay Stores Ltd Pick n Pay Stores Limited is one of South Africa’s largest retail and supermarket groups. The business was purchased in 1967 by Raymond Ackerman and his family. Under his leadership, the company expanded rapidly across South Africa and several African countries. The Ackerman family became strongly associated with the growth and success of the business. For many years, Raymond Ackerman played a central role in strategic decision-making and company culture. His leadership style focused on customer service, employee loyalty, and ethical business practices. As the business grew into a large corporation, questions about succession and continuity became increasingly important. In the early 2000s, leadership responsibilities gradually shifted to the next generation. Raymond Ackerman’s son, Gareth Ackerman, became more involved in the company’s operations and governance. Gareth later served as Chairman of the company, while professional managers were also appointed to oversee daily business operations. The transfer of power was not without challenges. Some shareholders and analysts questioned whether family members should continue leading the business or whether more independent professional executives should take control. Employees were also concerned about whether the company would maintain its founding values during the leadership transition. At the same time, the retail industry in South Africa became more competitive, with rivals such as Shoprite Holdings and Woolworths Holdings Limited increasing pressure on Pick n Pay’s market position. The business needed strong governance structures, effective succession planning, and trust among stakeholders to ensure long-term sustainability. CONFIDENTIAL Page 3 of 5 MNE3704 ASSESSMENT 06 SEMESTER 1_2026 The Ackerman family attempted to balance family involvement with professional management by strengthening the board of directors, appointing experienced executives, and maintaining clear governance systems. Raymond Ackerman gradually reduced his direct involvement while continuing to mentor the next generation and preserve the company’s values. The Pick n Pay case demonstrates how transfer of power in a family business can affect governance, leadership continuity, shareholder confidence, and family relationships. Sources: Pick n Pay Official Website. 2025. Integrated Annual Report 2025. Available at the investor relations section. Accessed 15 May 2026. QUESTIONS: 1.1 Discuss FOUR challenges that family businesses may experience during the transfer of power. Use examples from the Pick n Pay case study. (8) 1.2 Evaluate the importance of succession planning and governance structures in ensuring the continuity of Pick n Pay during leadership transition. (8) 1.3 Explain the different CEO exit styles commonly found in family businesses. Analyse which leadership style best describes Raymond Ackerman during the transfer of power. (8) 1.4 Critically discuss how trust among family members, shareholders, and employees can influence the success of leadership succession in a family business such as Pick n Pay. (6) [30] CONFIDENTIAL Page 4 of 5 MNE3704 ASSESSMENT 06 SEMESTER 1_2026 QUESTION 2 Read the case study and then answer the questions that follow. Case Study: Walmart Inc. and the Walton Family Walmart Inc. is one of the world’s largest retail companies and was founded in 1962 by Sam Walton in Bentonville. Although Walmart has grown into a multinational corporation, the Walton family continues to hold significant ownership and influence over the business. As the company expanded internationally, governance became increasingly important. The Walton family needed to balance family influence with professional management and the expectations of shareholders, employees, and international investors. Walmart established a formal board of directors consisting of both family and independent non-executive directors to improve accountability and strategic oversight. The board became responsible for monitoring executive performance, ensuring ethical governance, approving major business decisions, and protecting shareholder interests. Shareholder meetings were held annually to present financial results, discuss company strategy, and allow shareholders to vote on important matters such as executive compensation and board appointments. Despite these governance structures, Walmart experienced several challenges. Critics argued that the Walton family still exercised significant control over strategic decisions because of their large shareholding. Some investors believed this limited the influence of minority shareholders. In addition, Walmart faced reputational challenges related to labour practices, environmental sustainability, and international expansion decisions. To strengthen governance, Walmart increased the number of independent directors on the board, introduced stricter governance policies, and improved communication with shareholders. The company also focused on transparency and ethical leadership to maintain investor confidence and protect its global reputation. CONFIDENTIAL Page 5 of 5 MNE3704 ASSESSMENT 06 SEMESTER 1_2026 The Walmart case demonstrates the importance of boards of directors and shareholder meetings in ensuring accountability, transparency, and long-term sustainability in large family-controlled businesses. QUESTIONS: 2.1 Explain the role of the board of directors in promoting effective governance in a family-controlled business such as Walmart. (6) 2.2 Discuss THREE governance challenges experienced by Walmart as a family-controlled multinational company. Refer to the case study in your answer. (6) 2.3 Evaluate the importance of shareholder meetings in protecting shareholder interests and promoting accountability in family businesses. (4) 2.4 Recommend TWO governance strategies that Walmart can implement to strengthen transparency and reduce governance conflict between family owners and minority shareholders. (4) [20] QUESTION 3 3.1 What is a family council? (2) 3.2 What can a family council do to help a family in business? (8) [10]