Chapter 10: Assistance with Section C

Business Overview:
- Inkinga Ltd is a South African retailer specializing in African Arts and Crafts.
- The demand for these products is primarily from international tourists.
- Inkinga decides to sell imported, cheap toys to boost sales.
Issues with Imported Toys:
- The toys are of poor quality.
- Materials may be toxic to young children, although not definitively proven.
- Child laborers are used for assembly due to small parts.
- The manufacturer claims the child laborers are orphans who need the money to survive.
Ethical Concerns and Conflict:
- Marketing Manager Barbara objects to the association with these products, fearing brand damage.
- The Board of Directors prioritizes financial survival, threatening to fire 60% of employees if the toys aren't sold.
- They suggest ignoring ethical considerations like child labor, citing the company's CSR efforts in South Africa.
Barbara's Response:
- Barbara resigns and starts her own business, Ubuhle Retailers.
- Ubuhle Retailers sells South African-made arts, crafts, and high-quality toys.

Tourism Trends:
- International tourist visits to South Africa and globally are key.
- Events hosted by South Africa and the impact of events canceled due to factors like COVID-19.
Economic Factors:
- Exchange rate depreciation makes South Africa cheaper for tourists.
- Interest rates affect consumer spending (credit cards) and Barbara's capital for Ubuhle Retailers.
Unemployment:
- South Africa's high unemployment rate (>30%) raises the question of why import goods instead of manufacturing locally to create jobs.
Branding and Economic Growth:
- Registering Ubuhle as a Proudly South African business can strengthen its brand.
- Forecasted negative economic growth in South Africa impacts tourism and sales of luxury goods.
Cost Factors:
- E-toll increases business costs.
- Strikes disrupt production, impacting supply and customer disposable income (due to