MNM3705 - ASSIGNMENT 3 RETAIL
MANAGEMENT (UNIVERSITY OF SOUTH AFRICA)
Semester 2 – 2025 Due Date: 18 October 2025
Total Marks: 100 | Word Limit: 3,000 words (excluding references & appendices)
INTRODUCTION
Assignment 3 is the capstone assessment for MNM3705. It requires you to integrate
module themes—retail strategy, consumer insights, supply-chain design,
store/merchandising operations, digital commerce and financial control—within a
complex, African-centred retail case. Tasks blend applied essays, analytical calculations
and a synoptic case study. All questions are original and mapped to 2025 UNISA level-7
outcomes: critical analysis, evidence-based decision-making and professional
communication.
TASK 1 – ESSAY (20 marks)
“Retailers in Africa increasingly adopt ‘hybrid positioning’—simultaneously
pursuing cost-leadership and differentiated service. Using one South African and
one East-African example, critically evaluate the strategic logic, required
capabilities and performance outcomes of this dual positioning.”
Model Answer (≈800 words)
Hybrid positioning blends operational cost discipline with non-price value drivers
(experiential, ethical or convenience-based). Shoprite South Africa and Quick Mart
Kenya illustrate contrasting logics.
1. Strategic Logic
• Market context: Price-sensitivity coexists with rising experiential expectations
(Deloitte Africa Retail, 2024). Hybridity allows mass-market reach while
insulating margins.
• Resource-based view: Cost-leadership demands scale, lean systems and private-
label depth; differentiation requires human capital, design capabilities and agile
merchandising. Congruence is achieved via digital platforms that lower cost and
enrich experience (e.g., Shoprite’s Xtra Savings app offering personalised
coupons and gamified engagement).
2. Capabilities
• Supply-chain ambidexterity: Shoprite’s RDC network cuts logistics cost 12 %
while enabling same-day click-and-collect (differentiation).
pg. 1
, • Data analytics: Quick Mart’s cloud-based POS identifies price-elastic SKUs and
triggers tailored promotions for loyalty members.
• People capabilities: Cross-trained staff switch between cost tasks (shelf
packing) and experiential roles (product demos).
3. Performance Outcomes
• Financial: Shoprite’s grocery margin improved 80 bps (2024) despite 3.5 %
basket deflation—attributed to private-label penetration (+4 pp) and premium
service tier uptake.
• Customer: Quick Mart Net Promoter Score +11, basket size +6 % while
maintaining EDLP index <1.05 vs. competitors.
• Risk: Brand dilution if cost cuts erode service quality; continuous capability
investment is required.
Conclusion
Hybrid positioning is viable when retailers build integrative capabilities (data, agile ops,
people) that simultaneously drive cost efficiency and perceived value. African markets
reward this duality, but success hinges on disciplined capability renewal rather than
tactical price-service balancing.
Key Assessment Criteria
• Depth of strategic theory application (10 marks)
• Use of contemporary African evidence (5 marks)
• Critical evaluation of outcomes/risks (5 marks)
TASK 2 – ANALYTICAL PROBLEM (15 marks)
“Omni-channel fulfilment economics”
Data: UNISA Sportswear (Pty) Ltd, September 2025
• Average on-line order value: R580
• Store-pick fulfilment cost: R45 per order
• Dark-store fulfilment cost: R35 per order
• Home-delivery last-mile cost: R60 per order
• On-line return rate: 18 % (reverse-logistics cost R55 per return)
• Store conversion uplift from click-and-collect visitors: 4 % (average in-store
spend R320)
pg. 2
MANAGEMENT (UNIVERSITY OF SOUTH AFRICA)
Semester 2 – 2025 Due Date: 18 October 2025
Total Marks: 100 | Word Limit: 3,000 words (excluding references & appendices)
INTRODUCTION
Assignment 3 is the capstone assessment for MNM3705. It requires you to integrate
module themes—retail strategy, consumer insights, supply-chain design,
store/merchandising operations, digital commerce and financial control—within a
complex, African-centred retail case. Tasks blend applied essays, analytical calculations
and a synoptic case study. All questions are original and mapped to 2025 UNISA level-7
outcomes: critical analysis, evidence-based decision-making and professional
communication.
TASK 1 – ESSAY (20 marks)
“Retailers in Africa increasingly adopt ‘hybrid positioning’—simultaneously
pursuing cost-leadership and differentiated service. Using one South African and
one East-African example, critically evaluate the strategic logic, required
capabilities and performance outcomes of this dual positioning.”
Model Answer (≈800 words)
Hybrid positioning blends operational cost discipline with non-price value drivers
(experiential, ethical or convenience-based). Shoprite South Africa and Quick Mart
Kenya illustrate contrasting logics.
1. Strategic Logic
• Market context: Price-sensitivity coexists with rising experiential expectations
(Deloitte Africa Retail, 2024). Hybridity allows mass-market reach while
insulating margins.
• Resource-based view: Cost-leadership demands scale, lean systems and private-
label depth; differentiation requires human capital, design capabilities and agile
merchandising. Congruence is achieved via digital platforms that lower cost and
enrich experience (e.g., Shoprite’s Xtra Savings app offering personalised
coupons and gamified engagement).
2. Capabilities
• Supply-chain ambidexterity: Shoprite’s RDC network cuts logistics cost 12 %
while enabling same-day click-and-collect (differentiation).
pg. 1
, • Data analytics: Quick Mart’s cloud-based POS identifies price-elastic SKUs and
triggers tailored promotions for loyalty members.
• People capabilities: Cross-trained staff switch between cost tasks (shelf
packing) and experiential roles (product demos).
3. Performance Outcomes
• Financial: Shoprite’s grocery margin improved 80 bps (2024) despite 3.5 %
basket deflation—attributed to private-label penetration (+4 pp) and premium
service tier uptake.
• Customer: Quick Mart Net Promoter Score +11, basket size +6 % while
maintaining EDLP index <1.05 vs. competitors.
• Risk: Brand dilution if cost cuts erode service quality; continuous capability
investment is required.
Conclusion
Hybrid positioning is viable when retailers build integrative capabilities (data, agile ops,
people) that simultaneously drive cost efficiency and perceived value. African markets
reward this duality, but success hinges on disciplined capability renewal rather than
tactical price-service balancing.
Key Assessment Criteria
• Depth of strategic theory application (10 marks)
• Use of contemporary African evidence (5 marks)
• Critical evaluation of outcomes/risks (5 marks)
TASK 2 – ANALYTICAL PROBLEM (15 marks)
“Omni-channel fulfilment economics”
Data: UNISA Sportswear (Pty) Ltd, September 2025
• Average on-line order value: R580
• Store-pick fulfilment cost: R45 per order
• Dark-store fulfilment cost: R35 per order
• Home-delivery last-mile cost: R60 per order
• On-line return rate: 18 % (reverse-logistics cost R55 per return)
• Store conversion uplift from click-and-collect visitors: 4 % (average in-store
spend R320)
pg. 2
