# Business Studies Grade 12 KZN June 2016 Memo > Grade 12 Business Studies memorandum from the KZN June 2016, 22 pages. Read online or get the free PDF download, question paper linked when available. - Page: https://www.hlayiso.com/library/2016-kzn-june-memo/1c06419d-d289-4107-b0d3-5458e4e08cf8 - Updated: 2026-09-27 - Subject: Business Studies - Grade: Grade 12 - Document type: Memorandum - Year: 2016 - Exam period: KZN June - Curriculum: CAPS - Pages: 22 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 12](https://www.hlayiso.com/library/grade-12) › [Business Studies](https://www.hlayiso.com/library/grade-12/business-studies) › [Business Studies Grade 12 KZN June 2016 Memo](https://www.hlayiso.com/library/2016-kzn-june-memo/1c06419d-d289-4107-b0d3-5458e4e08cf8) ## About this document Business Studies · Grade 12 · KZN June · 2016. Memorandum, 22 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 Downloaded from hlayiso.com > Basic Education KwaZulu-Natal Department of Basic Education REPUBLIC OF SOUTH AFRICA SES SSRGSER SE Soe eee Sa eT NATIONAL 1 SENIOR CERTIFICATE MARKS: 300 TIME: 3 hours N.B. This memorandum consists of 41 pages including this page. Copyright Reserved Please Turn Over Business Studies 2 NSC— Memorandum SECTION A (COMPULSORY) QUESTION 1 14 144 AVY 11.2 CVS 113 Avy 11.4 AVY 115 DYY 11.6 Cv AAT CYY 118 BYY 1.1.9 DYY 1.1.10 CV¥Y 1.2 1.21 Evv 122 FyY 1.23 Gvv 124 Iv 1.25 Ww 13 1.3.1 five hundred thousand randsv “ 1.3.2 Double the normal wagev¥ 1.33 Storming” 1.3.4 Triple bottom linev~ 1.3.5 Job specification’Y ‘Copyright Reserved June 2016 Common Test 40x2 (20) 5x2 (10) 5x2 (10) TOTAL SECTION A: 40 QUESTION 4 MARKS 4.4 20 1.2 10 1.3 10, TOTAL 40 Please Tum Over ### Page 2 Downloaded from hlayiso.com Business Studies 3 ‘Jane 2016 Common Test NSC — Memorandum SECTION B (COMPULSORY) QUESTION 2: BUSINESS ENVIRONMENT 24 214 National Credit Act, 2005 (Act 34 of 2005). 0) NOTE: Accept National Credit Act/(NCA 2.1.2 Credit provider — financial institution’ (bank, loan sharks etc.) who. provides credit to the customer. National Credit Regulator — A body (watchdog) ~ responsible for the registration of credit providers, enforcement of compliance with the NCA, regulates the credit market/industry. ~ 2x2 4) 2.1.3 The credit provider is responsible for ensuring that a consumer can afford the repayment’ before granting a loan or selling goods on credit. ¥ To do this, the credit provider has to carry out a credit risk evaluation. ¥ This involves assessing the consumers” income and expenses. ¥ The credit provider is also responsible for ensuring that the consumer understands ~ the costs of obligations involved in the credit agreement¥ If the credit provider does not meet this responsibilities, “ a court can declare the credit agreement to be reckless and can suspend the credit agreement. ~” Any other relevant answer related to reckless lending Max (4) 2.1.4 Consequences for reckless granting of credit The court may deciare the granting of the credit by the credit provider reckless” and may order clients/consumers not to repay the credit or part thereof. “ Credit provider may not demand payment, ‘sue or attach the clients/customers salary/assets. ¥ Credit provider may not charge any fee/interest/other charges” under that specific credit agreement. ” The National Credit Regulator may impose a fine/penalty (R30 million) “on the business for non-compliance May be deregistered” as an accredited service provider’. Any other relevant answer related to consequences of reckless granting of credit. Max (4) Copyright Reserved Please Tur Over Business Studies 45 2.22 4 June 2046 Common Test NSC — Memorandum FNB can present a consumer with a “Written Proposal to increase the credit limit. “7 If the consumer accepts it, FNB must carry out a new affordable assessment. ¥~ FNB must provide proper pre-agreement documentation before a loanfincrease in credit limit is grantedv¥ Any other relevant answer related fo how FNB should conduet credit assessments. ‘Max (2) Steps in strategy evaluation Examine the underlying basis of a business strategy. v“ Define parameters to be measured. “ Define target values for the parameters. ~W Perform measurements. V¥ Compare expected performance with actual performance. V~ ‘Take corrective action where necessary. VW” NOTE: Accept steps in any order. OR Examine the set objectives/targets that were set. vv" Measure the business performance against the original objectives/ targets. VW ‘Compare expected performance with the actual performance. Vv“ Take correction action where necessary. VV Determine reasons for deviation Vv” NOTE: Accept steps in any order. Max (10) Imptementing defensive strategies Retrenchment: ¥“ ¢ Business is restructured therefore staff numbers are reduced. © Decreasing the number of product lines, may lead to the closing of a department. ¥ Divestiture/Divestment ¥ ~ ° Unprofitable divisions of the business are sold/outsourced fo improve operational efficiency. . ‘Unproductive assets are sold, to improve cash flow. ~ Liquidation: “~~ . Sells all assets/stops operating to pay off debts. Forced liquidation may be used as an option by creditors. ” Any other relevant answer related to the implementation of defensive strategy Strategy (2) Explanation (1) Sub max (3) Max (3x 3) (9) Copyright Reserved Please Tum Over ay ### Page 3 Downloaded from hlayiso.com Business Studies 5 June 2016 Common Test NSC— Memorandum 2.3 Product development vs. Market development Product development Market development ‘* Businesses generate new ‘A process of exploring/finding/ ideas” and develop a new Searching new markets” for product or service.” existing products.” . The introduction of a new . Businesses sell their existing Product or service into products” to new markeisv / existing markets.” Involves targeting consumers in a potential market” that is outside its normal target market ~ * Example: A cell phone © Example: Finding new manufacturer designs a new markets” in other towns and phoney that can also be used cities to make internet phone calls.” © Any other relevant answer © Any other relevant answer related telated to product development. to market development. Sub max (3) Sub max (3) NOTE: 1. The answer does not have to be in tabular form as long as the distinction is clear. 2. Allocate TWO (2) marks each when candidates use an example to. distinguish between the strategies . Max (6) 24 24.1 Non-compliance actions Unfairflllegal dismissal of employees.v “ Cancellation of employees’ contracts by a new ownerfemployer when a business is sold/transferred. “” Refusing the formation/recognition of workplace forums. vv” Refusing to give workplace forum members time off with pay for attending meetings during working hours. “W” Forcing employees to give up trade union membership. “~~ Preventing employees from joining trade unions. vv Refusing leave to trade union representatives to attend trade union activities. v~ Breaching of collective agreements/resolution mechanisms by employer, “~~ Not allowing employees to take part in legal strikes. YW” Not adhering to the right of employees to strike when legalised, vv” Any other relevant answer related to actions that are non-compliant to the LRA. NOTE: Mark the first FOUR (4) only. Any (4x2) (8) Copyright Reserved Please Turn Over June 2016 Common Test 6 NSC— Memorandum 2.4.2. Impact on employers/businesses Positives / Advantages Protects the rights/interests of businesses in labour related issues. Protects employers who embark on lawful lock-outs “ when negotiations between parties fail. Ensures participation of all parties in collective bargaining decision making v’ which leads to reducing conflict in the workplace. ” Labour disputes are settled quicker and are less expensive. ~ Workplace forums can be tasked to resolve workplace issues Vv as they take part in decision making. ” Provides for dispute resolution through consensus” between ‘organized labour, the business and the state. 7 Provides mechanisms, v e.g, statutory councils, collective bargaining and CCMA to settle labour disputes. Prevents unfair discrimination in the work place, “as all employees should be given the same opportunities. ” The Act gives the employers the right to dismiss employees v who engage in unprotected strikes. 7 Employers may claim compensation” via the Labour Court for losses suffered as a result of unprotected strikes. ” Any other relevant answer related to a positive impact of the LRA on businesses/employers. AND/OR: Negatives/ disadvantages Productivity/Profitability may decrease, ~ if employees are allowed to participate in the activities of trade unions during work time. ” Quick decision making may be affected’ as workplace forum Tepresentatives may put the interest of employees above that of the business. Dispute resolution through consensus may be time-consuming, When a business is transferred/sold to new owners, the new employer has to take-over/continue with existing employees’ contracts. v Incompetent emplayees may be inherited. Information about work place issues may be disclosed to trade union representatives, “ which may be leaked to competitors, Cost of labour increases, “ because of legal strikes. “ Labour consultants may be employed to deal with labour related issues, “ which may be costly. “ Reduced global competitiveness” due to lower productivity. “ Any other relevant answer related to the negative impact of the LRA on businesses/employers. Max (10) [60] Copyright Reserved Ptease Tum Over ### Page 4 Business Studies Downloaded from hlayiso.com 7 June 2016 Common Test NSC— Memorandum BREAKDOWN OF MARKS: QUESTION 2 | MARKS 241 4 242 4 213 4 214 6 215 2 2.2.1 40 2.2.2 g 2.3 6 244 8 24.2 10 TOTAL 60 QUESTION 3: BUSINESS ROLES 34 3.1.1. Meaning of Corporate Social Investment When businesses willingly take steps/make plans to contribute to the upliftment of communities/their quality of life. “~~” Refers to time/money/skilis/experience invested in communities and/or environment. ““ Any strategy used by business to take responsibility for their impact on the community/environment. ~~ Long term obligation of businesses to always act ethical/ to contribute to economic development to improve the standard of living of employees/ their families/ the local community and in general ¥~ Any other relevant explanation of CSI Fact (1) Explanation (1) Max (2) 32 3.1.2 Challenges for ISIDINGO Builders: (Disadvantages/Negatives for Copyright Reserved business) ; Community may not support the business by not buying the business's products. vv CSI activities may take focus away from core business resulting to lower profitability. “” Detailed reports can be time consuming. VY” : Social expenditure reduces the business's ability to be efficient and may result in lower competitiveness. Financial risks increase as programmes cost a lot and may not have the expected results. VW” itis difficult to determine the effectiveness of CSI programs/investments. 7” Many managers are rot skilled to manage social programmes. v~ Please Tum Over Business Studies Copyright Reserved & June 2016 Common Test NSC - Memorandum ‘Some shareholders/stakeholders may withdraw their support, as they feel that social issues are the responsibility of the government and not that of the business. Shareholders may be negatively affected as their retun on investment can be lower. YW" Workers spend more time on CSI projects than on their core duties. “¥ Any other relevant challenge/disadvantages of CS! to businesses. 5x2 (10) Mark the first five 3.1.3. Projects that ISIDINGO Builders could implement to address each key problem area listed in the scenario Unemployment Set up an entrepreneurial programme to teach entrepreneurial skills and to mentor new business owners. v~ Start a job creation programme. VW Introduce an apprenticeship programme. ~~” Any other relevant project io address unemployment Sub max (2) Lack of housing Teach community members to make bricks. VY Run a community programme to teach building skills. vi“ Any other relevant project to address lack of housing. Sub max (2) Poorfinadequate education Establish early learning centers “¥ Set up a teacher enrichment programme. v~ Adult training centers. “W” Any other relevant project to address poor education ‘Sub max (2) Note: Allocate a max of one project (“V) per key problem area Max (6) Procedure for dealing with grievances in the workplace ‘An aggrieved employee must verbally report the incident/grievance to his/her supervisor/managerv’, who needs to resolve the issue within 3 to 5 working days. ” Should the employee and supervisor not be able to resolve the grievance’, the employee may take it to the next level of management. “ The employee may move to a more formal process’ where the grievance must be lodged in writing/completes a business grievance form. “ He/She must receive a written reply” in response to the written grievance. A grievance hearing/meetingy must be held with all relevant parties present “ Please Turn Over ### Page 5 Business Studies Copyright Reserved Downloaded from 9 June 2016 Common Test NSC Memorandum Minutes of the meeting must be recorded” and any resolution passed must be recorded on the formal grievance form. ” ‘Should the employee not be satisfied, v then he/she could refer the matter to the highest level of management. “ Top management should arrange a meeting with ali relevant parties concemed, ¥ Minutes of this meeting should be filed/recorded~’ and the outcomes decision must be recorded on the formal grievance form. “ Should the employee still not be satisfied, he/she may refer the matier to the CCMAY who will make a final decision on the matter. Any other relevant answer retated to the correct procedure to deal with grievances in the workplace. NOTE: The procedure may be in any order. Max (8) Poverty vv Supply free uniforms/working clothes. ¥ Provide low priced meals at canteens. ~ Offer training to improve skills for better positions in the business. ¥ Any other relevant answer related to addressing poverty in the work place, Issue (2) Strategy(1) ‘Sub max (3) Inequality “v. Implement equal opportunity policies when appointing new staff. ¥ Equal opportunities should be considered when promoting staff. Implement an Employment Equity Plan for the business. 7” Any other relevant answer related to addressing inequality in the work place. Issue (2) ‘Sub max (3) Race ¥~ Implement affirmative action policies as required by law. v7 No discrimination should be made based on race. ~ Any other relevant answer related to addressing race in the work place. issue (2) Strategy(1) ‘Sub max (3) Please Tum Over hlayiso.com Business Studies 10 June 2016 Common Test NSC— Memorandum Gender v¥ Male and female workers should be paid the same salary/wage for equal work performed. 7 All posts should be accessible to male and female workers. ~ Targets may be set for gender employment, Any other relevant answer related to addressing gender in the work place. Issue (2) Strategy(1) ‘Sub max (3) Language vv Workplace policies should be prepared in more than one language so that it can be understood by all workers. “ No worker should feel excluded in meetings conducted in one language only. ” Any other relevant answer related to addressing language in the work place. Issue {2) Strategy(1) ‘Sub max (3) Agevv The ages of permanent workers should vary from 18 to 65 to inciude all age groups. Promotions should not be linked to a certain age group. ” Any other relevant answer related to addressing age in the work place. Issue (2) Strategy(1) Sub max (3) Disability vv Provide easy access to the building/offices for workers in wheelchairs. “ Ensure that workers with special needs are not marginalised/feel excluded from workplace activities. “ Any other relevant answer related to addressing disability in the work place. Issue (2) Strategy(1) Sub max (3) Copyright Reserved Please Tum Over ### Page 6 Downloaded from hlayiso.com Business Studies. 1 ‘June 2016 Common Test NSC— Memorandum Culture YY Be sensitive to special requirement for different cultural groups, e.g. allow day(s) off for cultural holidayffestivals. Cater for special food/preparation methods in the workers’ canteen. ¥ Any other relevant answer related to addressing culture in the work place, Issue (2) Sub max (3) NOTE: Mark the first FOUR only. 4x3 (12) 3.4 Ways to deal with the following personalities in the workpiace/business 3.4.4 Complainer Listen to the complaints but do not acknowledge them. “~~ Interrupt the situation and move to the problem-solving process as soon as possible. ¥~ Any other relevant answer related to how to deal with the complainer ‘Sub max (2) 3.4.2 indecisive Guide them through alternatives. V~ Stay in control and emphasise the importance of making a-decision, “WV Help them make the decision or solve the problem. VY Any other relevant answer related to how to deal with an indecisive person ‘Sub max (2) 3.4.3 Expert Be firm and assertive. “ Do not accuse them of being incorrect and do not get Gaught in their game. “7 Know your facts. “¥” Any other relevant answer related to how to deal with the expert. ‘Sub max (2) Copyright Reserved Please Tum Over Business Studies 2 June 2016 Common Test NSC~ Memorandum 3.4.4 Quiet Do not fill their silence with words. “” Wait for their response. “” Prompt them through the process so that they give input. “~” Restrict the time of the discussion. Any other relevant answer related to deal with the quite person ‘Sub Max (2) 3.4.5 Aggressive Allow them time fo speak and blow off. “v” Be firm, but do not attack them. ““ Do not allow them to be hostile towards others. “~” Any other relevant answer related to deal with the aggressive person ‘Sub max (2) Max (10) 3.5 Criteria for team performance Interpersonal attitudes and behaviour Vv” Has a positive attitude of support and motivation towards co-team members. ¥ Has a positive attitude and passion to achieve team objectives. There must be clear objectives and agreed goal. Team members must be committed to achieve the team objectives. “ Critetia: (2) Discussion: (1) ‘Sub Max: (3) Shared values VW“ ‘Shows loyalty and respect towards team members despite differences. ¥ Perform team tasks with integrity, responsibility and meetingy” team deadlines with the necessary commitment io team goals” Discussion: (1) ‘Sub Max: (3) Communication VV Speaks clearly and listens attentively. Communicates with team members and allows for feedback¥ Encourage discussions about problems so that solutions can be found” Criteria: (2) Discussion: (1) ‘Sub Max: (3) Copyright Reserved Please Tum Over ~ ### Page 7 Downloaded from hlayiso.com : | = Business Suidies 3 June 2016 Common Test NSC— Memorandum Co-operation’ Willing to co-operate in the team to achieve team objectives. Willingness to co-operate with management to achieve team and business objectives” Any other relevant answer related to criteria that individuals can use to assess themselves against team performance. Criteria: (2) Discussion: (1) Sub Max: (3) Max (12) 160] BREAKDOWN OF MARKS QUESTION 2 | MARKS 3.4.1 2 3.1.2 10 31.3 6 3.2 8 33 12 34 10 35. 72 TOTAL 60. Copyright Reserved Please Tum Over Business Studies 14 June 2016 Common Test NSC— Memorandum QUESTION 4: BUSINESS OPERATIONS 44 4.44 412 413 444 Employment Equity Act (EEA) “¥ c) Steven is protected by the Employment Equity Act (EEA), which states that employers must not treat an applicant less favourably because of his disability. VW The act also states that the applicants can decide whether or not to disclose their disability when applying for a job. ~~” It regulates affirmative action that people from designated groups for example the disabled who have the relevant qualifications are given opportunities for employmentv Any 2x2(4) The committee appeared not to be aware of Steven's disability and were not prepared to employ someone with a disability. vv They were unfairly discriminating against Steven because they thought he may not be able to perform the job. vv” They saw him as a liability because they may have to spend money to provide special facilities for him. “~” They were unable to deal with his disability as they did not have any policies in place for a disabled person. Vv” The panel could not reach consensus to accept Steven as a candidate, so they ended the interview. v~ Any other relevant answer related to why you think the committee terminated the interview Max (2) People with disabilities want to be viewed with dignity and respect “and are afraid of the stigma attached to their disability if they inform the company beforehand. They feel that employers would consider them as a liability” and may not want to consider their credentials. 7 They do not want to be employed because of their disability” they want to be considered for their competencies and qualifications. v They do not want fo feel that someone is doing them a favour/ or that someone is feeling sorry for them because of their disability/they want to get the job on their own merit, “ Some advertisements do not require disclosure of disability” hence applicants choose not to disclose it.” Any other relevant answer related to why people with disabilities do not.disciose their status when applying for a job. Max (4) Mark the first two reasons. Copyright Reserved Please Tum Over ### Page 8 Downloaded from hlayiso.com Business Studies 6 June 2016 Common Test NSC — Memorandum 4.1.5 Compliance with Employment Equity Act Discriminatory appoiniments should be discouraged. vv” Promote equal opportunities and fair treatment V“ The appointment process should be clearly defined, so all parties are well informed. v¥ Use certified psychometric tests to assess applicants / so that suitable candidates are appointed. ¥~ Apply affirmative action measures to redress past injustices. vv” Ensure that diversity/inclusivity in the workplace is achieved. v~ Encourage consultation between employer and employees.v “ Draw up an employment equity plan in consultation with employees’ ~ Any other rélevant answer related to how the Human Resources manager can comply with EEA, Max (6) 4.1.6 Guidelines to recruitment committee When advertising positions the recruitment committee should refer to their employment equity policy or values and indicate their position on affirmative action. VY When advertising positions, employers may state that preference will be given to members of designated groups. “ Ensure that the information received from job applicants focuses on the requirements of the job and does not result in indirect unfair discrimination, we When shortlisting, an employer could include applicants from designated groups who meet most but not all the minimum requirements. ~~ The interview committee should be sensitive, objective and unbiased towards people with disabilities. vY They should ask applicants to indicate how they would accomplish the inherent requirements of the job and how they needed to be accommodated in the work environment in order to fulfill the requirements of the job. “ Employers should seek guidance from the code of good practice on the employment of people with disabilities and the technical assistance guidelines on the employment of people with disabilities. “7” Any other relevant answer related to how the that the recruitment committee should consider when dealing with the principles of equity in the workplace, regarding applicants with disabilities Any 3x2(6) Mark the first 3 An employment contract conditions usually contains the following: The full name and address of the employer. “~ The name of the employee and his/ her occupation. “~ ‘The employee's place of work. YY The date of commencement of the employment relationship and details of a probationary period, if applicable. “¥ Ordinary days and hours of work plus arrangements pertaining to overtime. Details of deductions to be made. V¥ Any other relevant information to be included in the employment contract Any 5x2 (10) Mark first five only Copyright Reserved Please Turn Over Business Studies 16 June 2016 Common Test NSC— Memorandum 43.1 Quality indicators for Public Relations function Management deals quickly with negative publicity. “¥ Less/Litte/No incidents of negative publicity. vv Regular positive press releases. V7 Implement sustainable Corporate Social Investment (CS!) programmes. v Good results of public surveys on business image. V¥ High standard of intemal publicity/Appearance of building(syProfessional way of answering telephones/Appearance of correspondence. v¥ Deliver quality goods/services that promote the brand/image with key stakeholders, €.g. customers/suppliers/government/service providers. “¥ Compliance with recent legislation, e.g. BEE compliant. ~V" Any other relevant answer related to quality indicators for the Public Relations function. Max (8) 4.3.2 Quality indicators for Administration function Fast and reliable data capturing and processing systems. VY” ‘Supply reliable information to management on time. VY" Make relevant information available for quick decision-making. VW Handle complaints quickly and effectively. Vv Use modem technology efficiently. “v” Implement effective risk management policies to minimise business losses. vv Quality assurance and control evaluations are recorded accurately. YY Any other relevant answer related to quality indicators for the ‘Administration function. Max (8) 44.1 Top management involvement Management has a clear visionY and mission statement with regards to TOM. ¥ Manageient is responsible for giving strategic guidance’ with regards to quality management. ¥ Top management always support” all TOM activities. ~ ‘Supervisors have been appointed to control and oversee” all stages of TQM processes” Customer feedback and complaintsy are taken into consideration. v Quality reviews” are regularly conductedY’ Ensure that shareholders are totally satisfied ~ with the standards of quality” Any other relevant answer related how total client satisfaction will positively impact on a business Max (6) Copyright Reserved Please Turn Over ### Page 9 Downloaded from hlayiso.com Business Studies June 2016 Common Test Business Studies 7 18 June 2016 Common Test NSC— Memorandum NSC~ Memorandum 44.2 Teamwork QUESTION 5: MISCELLANEOUS Management ensures that everyone “ works effectively in a team” Quality circles solve problems related to quality” and to implement 5 54 improvements” ; 5.1.1. Agriculture/Farmingy Quality circles give/suggest solutions~ to top management. ~ Any other relevant answer related how team work will positively impact on a business Max (4) 5.1.2 Secondary” [60] 5.1.3 Toyota factoryfproduction plant. (accept any other relevant example name of factory) ¥ BREAKDOWN OF MARKS: QUESTION2 |_MARKS 541.4 Tertiary ~ 4.1.1 2 412 4 5.1.5 Rendering of services/intermediary services. ¥ 4.13 2 “et 4 5.1.6 Standard Bank (accept any other relevant example/name of bank) ¥ ® 416 6 42 10 6.2 Strategic management process 431 8 mea Pros 4.3.2 8 444 6 OPTION 1 442 4 © Have a clear vision, a mission statementand measurable/realistic TOTAL 60 objectives in place. VY * Identify opportunities/weaknesses/strengths/threats by conducting environmental scanning/situational analysis. ““ ° Tools available for environmental scanning may include a SWOT/ PESTLE /Porters Five Forces analysis. v¥ * Formulate altemative strategies to respond to the challenges! scanning results. v~ Develop (an) action plan(s), including the tasks to be done/deadlines to be met/resources to be procured, etc. ¥~ ¢ Implement selected strategies by communicating it to all stakeholders/ “organising the business's resources/motivating staff. “” * Continuously evaluate, monitor, measure strategies in order to take corrective action. “¥ . Any other relevant answer related to how the strategic management process can be applied. Max (8) OR Copyright Reserved Please Turn Over Copyright Reserved Please Tum Over ### Page 10 Business Studies Downloaded from hlayiso.com 19 June 2018 Common Test NSC~— Memorandum OPTION 2 * Review vision statement. V¥ Analyse/Re-examine mission statement. “~ Conduct an analysis using models such as PESTLE/PORTERS. ¥¥ Formulate strategy, referring to strategies such as defensivefretrenchment. ¥¥ Implement strategy, using templates such as action plans. ¥ Control of strategy to identify gaps in planning. ¥ Evaluate strategy to identify deviations in implementation. Take corrective action to ensure goals/objectives are met. ¥~ Any other relevant answer related to how the strategic management process can be applied. eeoee Max (8) NOTE: The steps may be in any order. Copyright Reserved Please Turn Over Business Studies 53 5.4 20 June 2016 Common Test NSC- Memorandum Distinguish between leadership and management MANAGEMENT LEADERSHIP Demands respect”, authority and Invites and motivates freedom of wants to control, v speech and inspires trust. ~ Gives orders/instructions to the sub- ‘Seeks to empower/facilitates”” ordinates. V employees. Thinks that they know allY the ‘Asks the right questions” to get to the answers. ¥ right answers.“ Focuses” on the task. Focuses” on individuals/groups. ¥” Focuses Yon the implementation of _ | Focuses on motivating workers #70 help policies. with the implementation processes. v Follows/implemenis “the vision of the | Provides a vision” for the enterprise 7 enterprise. V Minimises “and controls risk: ‘Always on the lookout” for business. opportunities, “ Ensures that profit targets” are met, “| Strategises ~to increase profitability. ‘Administer to delegate” Innovate “to bring about changey Have a short-term view 7 Have a long-term ¥ view 7 Monitor” people Inspire’ people ~ Implement “plans 7 Developy goals 7 Maintain “and monitor 7 Challenge staff “and managers "Asks questions which include“ : when, | Asks why “a task is done v/ fewer how, where and who v/ more details” | detallsv’are required” are required” ‘Any other relevant distinction between management and leadership. ‘The distinction need not be in tabular form as long as the distinction is clear. Max (8) Discuss the role of personal attitude in successful leadership: Enthusiasm V— passionate involvement ¥ Self-confidence and believing” — belief in yourself as a leader “ Desire and drive v— strong feeling of wanting to have something Courage ~ never gives up” the strength to take on challenges “” Persistence” — dedication and commitment to overcome obstacles” Belief in others” — see the good in others and recognize their abilities ~ ‘Taking personal responsibility/accountability” — see your role in situations! don't blame others. Perseverancey— not giving up/, being patient” Optimism — v’seeing opportunities /possibilities~ Reliability, “ honesty/ professional ethics. Aleader's good/bad attitudev can influence the success/failure of the business.V Copyright Reserved Please Tum Over ### Page 11 Business Studies Copyright Reserved Downloaded from hlayiso.com a June 2016 Common Test NSC Memorandum 56 Leaders must know their strengths and weaknessesv to apply their leadership style effectively.V Great leaders understand that the right attitude’ will set the right atmosphere. Leaders’ attitude can influence employees'/teams’ thoughts and behaviour.V Leaders should model the behaviourY that they want to see In team members. Leaders must know/understand their teamsv to be able to allocate tasks/roles effectively.V Enthusiasm produces confidence in a leader.V A positive attitude is critical for good leadershipV because good leaders will stay with the task regardless of difficulties/challenges.v Successful employees and leaders have a constant desire to workv and achieve personal and professional success. Leaders with a positive attitude know that there is always more to leamv and 57 space to grow.v Any other relevant answer relating to the role of personal attitude in successful leadership Any 3x2 (6) 5.5.1. Force field analysis vv @) 5.5.2 Application of Forced-field analysis Describe the current situation” and the desired situation “ Identify what will happenw if no action is taken.” List all the driving” and restraining forces for change” Allocate a score to each using a numerical scale, “ where 1 is very weak and 10 is very strong ” List the forces according to strength, the driving forces on the left “ and the restraining forces on the right V Analyse the restraining forces ~ and the best way to address them “ Analyse the driving forces ~ and the best way of advancing them v Identify priorities v and produce an action plan “ Any other relevant answer related to the application of Forced-field analysis, Max (8) Please Turn Over Business Studies Copyright Reserved 7 June 2016 Common Test NSC - Memorandum Wellbeing of employees Businesses can improve the general quality of life of employees, 2.9. pay fair wagesiskills development, Y etc. Start a nutritional programme so that employees can enjoy one meal per day to keep them in a healthy condition, v~ Provide subsidised housing/accommodation for their employees. VW” Give time to staff to get involved in projects they choose’ Allow staff to use some of the working hours to participate in the projects of their choice, “~ Encourage employees to stay fit and healthy by getting them involved in health activities to minimise stress/substance abuse/obesity. VV Provide transport for employees who work unusually long hours, VY” Establish coaching and mentoring programmes for junior employees. VY Conduct team-building sessions to improve employees’ morale. v~ Encourage employees to attend capacity-building workshops/training programmes/staff-development programmes/team-development programmes. “” Offer counselling sessions to employees with personal/emotional challenges. “” Any other relevant recommendations related in which businesses can Contribute time and effort to advance thé wellbeing of their employees. Max (6) Benefits of a good quality management system Effective customer services will be rendered, resulting in an increased customer satisfaction. Time and resources are used efficiently. Productivity increase through proper time management when using high quality resources. “” Products and services are constantly improved, resulting in greater customer satisfaction. v7 Vision and mission may be achieved. v“ The business may achieve a competitive advantage over its competitors. Continuous training will constantly improve the quality of employees’ skills and knowledge. ~~” Employers and employees will have a healthy working relationship which results in happy workers. v¥ Increased market share and profitability. “” Any other relevant answer related to the benefits of a good quality : management system. Max (6) Piease Tum Over ### Page 12 Downloaded from hlayiso.com Business Studies 23 June 2016 Common Test NSC~ Memorandum 5.8 Impact of fringe benefits Positivesiadvantages Atracve fringe benef packages “ may resitin higher employee retention’ reduces employee tumover. itincreases employee satisfactionfloyalty”,, as they may be willing to work under pressure/improve personal performance. ” Leads to higher productivity”, as workers work for longer hours/more days. “ Attracts good/qualified employees who do not always need extra training. Any other relevant positive aspect related to fringe benefits. ANDIOR Negatives/disadvantages Fringe benefits are additional costs for businesses’, which may result in cash fiow probiems. “ Administrative costs increase “as payments need to be correctly allocated and recorded for tax purposes. Decreases business profits’, as remuneration costs are increasing. “ it may create conflict/lead to corruption Vif allocated unfairly. “ Workers only stay with the business because of fringe benefits”, and may Not bé committed to their tasks/loyai to the business. “ Any other relevant negative aspect related to fringe benefits, Business Studies 2 NSC — Memorandum dune 2016 Common Test QUESTION 6: BUSINESS ENVIROMENT 6.1 INTRODUCTION A strategy is a creative plan for success “ The strategic plan outlines the strategy ¥ ‘The top management team is responsible for the drawing up of a strategic plan ¥ Any other acceptable introduction relating to business environments (Max 2) 6.2 IDENTIFICATION AND CLASSIFICATION OF CHALLENGES CHALLENGE ENVIRONMENT STRATEGY TO OVERCOME THE CHALLENGE Equipment needs replacing | Micro environment” budget and plan to replace we equipment over a period Cause environmental of time vv" damage by creating dust in Employ an environmental the air/ which has left many health officer / research people with respiratory modem methads of mining’ problems vv implement Green Peace Any other acceptable Ww challenge from the case Any other acceptable study strategy to overcome challenge from the case New mine with latest Market environment “~ Upgrade existing machinery and technology machinery and equipment wv vv New mine offers better pay Improve remuneration and working condition “~~ packages and working Transport company environment “7 increased their transport Look for other options e.g. costs VY in Sourcing, rail Consumer are looking for transporty¥ more “green” energy Research safer ways of forms’¥ using coal / altemative forms of energy v~" Any other acceptable Any other acceptable challenge from the case Strategy to overcome study challenge from the case study Max (10) [60] BREAKDOWN OF MARKS QUESTION 2 MARKS 5.1 6 52 8 53 8 5.4 6. 5.5.1 2 55.2 8 5.6 6 Exa 6 5.8 10 TOTAL 60 Copyright Reserved Please Tum Over Environmental damage by | Macro environment 77 Implement systems to creating dustin the air VY reduce / efiminate dust HIV/Aids in the community emissions vv Get involved in an Aids- Price of coal dropped campaign vv intemationally “ Negotiate better deals, find Any other acceptable other countries who are challenge from this case interested in buying coal study vw Any other acceptable strategy to overcome challenges from the case study Copyright Reserved Please Turn Over ~ ### Page 13 Downloaded from hlayiso.com Business Studies June 2018 Common Test 25 NSC — Memorandum Note: Strategies to be linked to the challenges. Identification (6) Challenges (12) Strategies (12) Max (18) 63 PORTER’S FIVE FORCE 6.3.1 THREAT OF NEW ENTRANTSY ~ The power Vusi's business has in the market ~‘will depend on how easy it is for new competitors to enter the market. “ If Vusi's business is highly profitabfe it may attract more investors, “which will put him in a more competitive position. If the barriers to enter Vusi's market are low, “then it will be easy for other businesses to enter the market. New competitors can quickty/easily enter the market’ if it takes little time or money to do so. ” Competitors need to follow Legal regulations” when mining coal ~ Expensive and specialized equipment used in miningv’ —barriers to entry is high “” Due to prices falling in international market “— profitability in coal mining industry will decrease — causing less interest in the industry for competitors “ High capital requirements of mining companies” make it more difficult for competitors to enter ” Any other acceptable answer relating to new entrants to the market Name: (2) Discussion: (2) Max (4) 6.3.2 BARGAINING POWER OF BUYERS’ Vusi must assess how easy it is for his buyers tov drive prices down. ¥ Buyer power will depend on the number of buyers,’ the importance of each buyer for Vusi's business and the cost of switching to other products/services. ” If Vusi's business is dealing with a few powerful buyers, “then they are often able to dictate terms to the business. “ Price sensitivity of buyers“ — buyers are forcing the price down on the international market ¥ Vusi must conduct market research ‘so that he can really know his buyers. “ Any other acceptable answer relating to bargaining power of buyers Name: (2) Discussion: (2) Max (4) Copyright Reserved Piease Tum Over Business Studies. June 2016 Common Test 28 NSC~ Memorandum 63.3 THREAT OF SUBSTITUTION VY ‘Substitute products/-services vare other producis/services that can completely or partly satisfy the same needs of consumers and can be used to replace Vusi’s products/services. If Vusi's product can easily be substituted, this weakens the power of his business in the market. “ Substitute products “can cause Vusi's business to reduce/lose its market share completely. ~ If Vusi's products are unique’ then he will not be threatened by substitute products, “v ‘Vusi must do market research’ to assess if customers are using substitute products/services and why are they choosing these altematives. ” Due to the wide publicity on global warming’, many people are looking for other forms of energy that will not have such a large impact on the environment. It is important that Vusi changes or improves his existing product~/services to remain competitive. ” Any other relevant answer related to the threat of substitution. Name: (2) Discussion: (2) Max (4) Max (12) 6.4 CONCLUSION Using strategies to overcome challenges will improve the business's competitive advantage. “~~ Making use of Porter’s Five Forces Model will help fo improve our competitive advantage. “~ Any other acceptable conclusion relating to strategies to overcome challenges and Porter’s Five Forces Max (2) BREAKDOWN OF MARK ALLOCATION Details Max Total Introduction 2 Identification of environment 6 Challenges 42 Strategies to overcome 12 Max 32 challenges Porter's Five Forces Model 16 Conclusion 2 INSIGHT Layout 2 Analysis and interpretation 2 ‘Synthesis 2 ‘Originality and examples 2 TOTAL 40 LASO - For each component Award 2 marks if ali requirements are met. Award 1 mark if only some of the requirements are met. Award 0 marks where requirements are not met at all. Copyright Reserved Please Turn Over ### Page 14 Business Studies QUESTION 7 INTRODUCTION 7A Downloaded from hlayiso.com a NSC— Memorandum June 2016 Common Test Enterprisés realise that they cannot exist in isolation, and have to interact with the various environments. Many institutions in South Africa have their own code of conduct and code of ethics and a commitment to ethical and professional behavior. ” A code of practice usually addresses professional behaviour/professionalism, whereas a code of ethics contains ethical actions/what is right and accepiable in a business, Any other relevant introduction on the relevant introduction on the Business Studies 28 NSC Memorandum June 2016 Common Test 7.24 Confideniiality Keep clients’ information privatev’ and confidential. Gossip” about dlents. Discuss confidential client Refrain from criticising information” with colleagues. v clients” in front of colleagues |- Use client information’ for own and vice versa. 7 advantage. ¥ Not using clients’ Any other relevant example of information” to own confidentiality to show advantage. ¥ unprofessionalism. Any other relevant example of confidentiality to show professionalism. () Max (2) Max 725 Objectivity Treat peoplev equally. Have special preferences’ for own Apply laws/rules” consistently} benefit. 7 and properly. ” Have one-sided “views. “ Remain objectivey at all Support “destructive ideas. times. ¥ Any other relevant example of Any other relevant example of | objectivity to show objectivity to show unprofessionalism. professionalism. o Max (2) Max (2) 72.8 Development Attend skilis development Refuse” to alfend skills ¥ programmes. “ Leam from senior / “ experienced colleagues, “ development programmes. ¥ Have a ‘know it allv” attitude. Refuse’ to work in teams. ¥ relationship between business ethics and professionalism. “ Any 2x1 (2) 7.2 Distinguish between professionalism and unprofessionalism Aspect Professionalism Unprofessionalism 7.24 Respect” Use polite language” towards Use rude! impolite language. 7 colleagues. ” ‘Swearing Vat a colleague. Help others and listenY to advice Nasty remarks “about other from others, people's ideas/opinions. Acknowledge differences” in Ridiculing differences in language, background / culture / religion. “ “culture or religion. “ Any other relevant example of Inappropriate, “ offensive respect to show professionalism. clothing.” Any other relevant example of a) Max (2)| respect to show unprofessionalism. Max (2) 7.22 Integrity Looking after “equipment. Use business's resources “for Keep to the working” hours. private purposes, Not bending the law” to suit ‘Take without permissionv/Steal oneself, business resources. Engage in open “dealings. ” Make feeble excuses” for work not Any other relevant example of done. integrity to show professionalism. |- Accept “bribery. ¥ Any other relevant example of integrity to show unprofessionalism. Qa) Max (2) Max (2) 72.5 Competency” Doing the best ~ possible job. “” Take shortcuts “with tasks. ~ Work overtime” if Not meeting ‘deadlines, ~” necessary. “ Refuse to work overtime although Going beyond’ job colleagues are doing descriptions. ~ itv Coach’ and mentor Not taking pride in completing colleagues. ” “tasks thoroughly. “ Any other relevant example of Any other relevant example of competency to show ‘competency to show professionalism. unprofessionalism. Q) Max (2) Max (2) Copyright Reserved Please Tum Over Improve knowledge’ through Disregard “the experience of senior reading and conducting workers. “ research. ” Any other relevant example of Any other relevant example of | _ development to show development to show unprofessionalism. professionalism. “ ) Max (2) Max (2) Name: (1) Example/ explanation of professionalism: (2) Example/ explanation of unprofessionalism: (2) Max (15) Copyright Reserved Please Turn Over -~ ### Page 15 Downloaded from hlayiso.com Business Studios 29 June 2016 Common Test 7.3 74 Str NSC Memorandum Taxation The government needs revenue from taxation” to provide essential services such as housing, education, infrastructural development and health care. “ Professional behaviour for the business in this regard would be for the business not to avoid tax” by falsifying financial records. ” Company tax, VAT and personal income tax” are some of the main sources of income for the government. ” Tax evasion js illegal in South Africa” and is regarded as a crime punishable with a fine or even prison sentence. “ SARS overseesv the collection of tax. “ Any other relevant evaluation on taxation. Sub max (6) Strategies to Address Taxation Employees should report any tax evasion or tax avoidance in a business. “~” Consumers, suppliers and buyers should ensure that all products are correctly invoiced and recorded. v~ The public should report any suspicion of tax fraud to SARS. VY” Businesses should be aware and up to date with the latest SARS regulations and tax laws. Vv” Business should pay their taxes to avoid penalties and interest and even imprisonment. “ Any other relevant answer related to strategies to address taxation. Any 2x2 (4) Max (10) Unauthorised use of funds Evaluation Fraud is a theft, misuse of moneyv that belongs to the employer. Fraud increases the cost of doing business, v’ affects competition and discourages investors by raising prices to absorb the losses. v” This leads up to money laundering which affect the economy and also unethical. Any other relevant evaluation on unauthorised use of funds. ‘Sub max (6) ‘ategies to Address Unauthorised use of Funds The business and management should keep a tight control of company funds. Vv” Only authorized and trustworthy employees should be given access to company money. ““ Management should audit all spending regularly. “” Clear policies should be in place so that employees are aware what is considered to be theft. “~ Limit, to the absolute minimum, the number of employees who have access to funds. Vv“ Formulate a fraud prevention strategy. vv" Identify vuinerable areas. VV” Combat fraud through internal auditing. “~” Any 2x2(4) max (6) Copyright Reserved Please Tum Over Business Studies 30 June 2016 Common Test NSC~ Memorandum 7.5 Ways in which ethical business practice should be conducted 7.5.1 Businesses should not be started at the expense of someone elsevv The aim should never be profit at all cost, as it will always be to the disadvantage of others. VY” Businesses should not use other's ideas to enrich themselves. /¥ Putting Someone else out of business for own gain, is unethical and a poor moral choice. v7 Any other relevant answer related to starting business at the expense of someone else, ‘Sub max (4) 7.5.2 Payment of fair wagesisalaries V~" Workers must not be exploited with low salaries just because it is difficult to find a job. “~ Workers’ rights and dignity should be respected. YW” Employees make a contribution to the success and profitability of the business, therefore they must be remunerated fairly. V~” Remunerate workers for working overtime and on public holidays. VY” Hiring honest and trustworthy accountantffinancial officers with good reputations. ¥¥ Businesses should appoint accountants who are known for their ethical and professional reputation and who can prove it with documentation. “” Any other relevant answer related to payment of fair remuneration ‘Sub max (4) 7.5.3 Regular payment of taxes VV Businesses should complete tax retums in detail and on time. “~~ Businesses should not evade tax and honestly deciare all income eamed. VV Business should pay tax to avoid goverment penalties and fines. “7” Any other relevant answer related to regular tax payments. Sub max (4) 7.54 Transparent processes and procedures VV Staffing and other processes should be open and transparent. “~~ Employees should be aware of the employment policy of the business. v~ All laws that govern employment should be communicated to workers. Vv“ Any other relevant answer related to transparent processes and procedures. ‘Sub max (4) 7.5.5 Draw up a code of ethics vv” Ethical codes of conduct should be communicated to workers, so that they know what is expected and what the company stands for. “” Employees should buy into the expectations for ethical norms/conduct as set out in company's code of ethics. Any other relevant answer related to drawing up a code of ethics. Sub max (4) Copyright Reserved Please Tum Over ### Page 16 Downloaded from hlayiso.com Business Studies 3 June 2016 Common Test NSC- Memorandum 7.56 On-going development and training for all employees “V" Continuous and regular training is necessary to explain the importance of ethical and professional conduct Employees should understand that certain conduct/actions have certain consequences. “¥ Employees should be encouraged to attend training courses and upgrade their skills. VY Employees promote their own career development and also contribute to an increase in productivity. “~ Any other relevant answer related to on-going training and development. Sub max (4) 7.5.7 Performance management system should be in place “V" Business should evaluate employees’ performance against the job description. “~ Employees should be acknowledged for good performance. ‘Training needs can be based on the results obtained from conducting performance appraisals. v~ Management systems should ensure that employees are treated equally to prevent conflict. “ Workers’ rights should also be considered when management systems are introduced.“ Any other relevant answer related to performance management systems. ‘Sub max (4) 7.5.8 Managers must set the tone and example VV Senior management members must act as role models by ensuring that their actions and decisions are in line with the code of ethics. Employees should have a desire to exhibit the behaviour of their managers. “" Any other relevant answer related to the example set by management. ‘Sub max (4) 7.5.9 Adequate internal controls “” Effective monitoring systems should be in place to monitor usage of all resources. V¥ Regular meefings/discussions should identify and address potentials: problems, in order to be pro-active or re-active. vv Workers should understand the purpose and the processes of intemal control. Vv Any other relevant answer related to intemal control measures. ‘Sub max (4) Copyright Reserved Please Tum Over Business Studies 32 June 2016 Common Test NSC— Memorandum 7.5.10 Honesty, accountability and transparency in relationships and transactions V¥ ‘Transactions/Relationships with ail stakeholders, e.g. suppliers, staff, etc. should always be honest and open. “¥ If transactions are properly documented, a paper trail is created that supports accountability. 7 ‘Systems should protect customers, suppliers and employees, especially when