1.4 Select the option that will NOT be regarded as a correct strategic objective of a company that operates a supermarket chain in South Africa. Their mission is: To be one of the largest in the local industry to meet the needs of all our stakeholders. (a) To become one of the top three supermarket chains in Africa by gaining at least 80% of the market share within the next two years. This increase in market share from the current 40% to 80% will be achieved by taking over 20 existing supermarkets of competitors. (b) To become one of the top five supermarket chains in South Africa by gaining at least 60% of the market share within the next four years. This increase in market share from the current 40% to 60% will be achieved by aggressive marketing and cutting costs by implementing a bulk buying policy. (c) To become one of the top five supermarket chains in South Africa by gaining at least 50% of the market share within the next five years. This increase in market share from the current 40% to 50% will be achieved by taking over 30 identified competitors in South African rural areas. Additionally aggressive marketing and cutting costs by implementing a bulk buying policy will be used to help reach the targeted market share. (d) To become one of the top five supermarket chains in South Africa by gaining at least 50% of the market share within the next five years. This increase in market share from the current 40% to 50% will be achieved by taking over 10 identified competitors in South African townships. The marketing budget will be increased to enable aggressive marketing. The implementation of a bulk buying policy will be used to help cut costs and reach the targeted market share. (2) 1.5 Select the action from the options below that will NOT apply to a secondary external stakeholder group attempting to influence the strategy of an organisation. (a) Extending the ban of smoking in public areas to be applicable to electronic cigarettes. (b) An increase of sugar-tax. (c) An increase of the interest rate on a loan agreement or denial of credit to an organisation when a specific organisation does not comply to their loan agreement due to cash flow constraints. (d) An increase in the minimum allowable emissions of harmful gasses by industries. (2) 1.6 Select the option that is TRUE regarding the dividend growth model. (a) The dividend growth model is not based on the return that the investor is prepared to accept on the investment. (b) The expected growth rate in dividends is predicted by the shareholders. (c) The expected future dividends are uncertain and therefore also the expected growth rate in dividends and it is not realistic to assume that the growth rate will stay constant. (d) The dividend growth model is based on the principle that investors in ordinary shares should be rewarded for the risk they bear. (2)