# Business Studies Grade 11 P1 2020 Memo (Eng)

> Grade 11 Business Studies Paper 1 memorandum from the National Exemplar November Exam 2020 (English), 40 pages. Read online or download the free PDF.

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- Updated: 2026-09-27
- Subject: Business Studies
- Grade: Grade 11
- Document type: Memorandum
- Year: 2020
- Exam period: National Exemplar November Exam
- Paper: 1
- Curriculum: CAPS
- Pages: 40

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Business Studies · Grade 11 · National Exemplar November Exam · 2020. Memorandum, 40 pages. Read online or download the PDF.

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                           NATIONAL
                      SENIOR CERTIFICATE

                             GRADE 11

                        NOVEMBER 2020

                   BUSINESS STUDIES P1

MARKS:   150

TIME:    2 hours

                               *IBUSTE1*

                   This question paper consists of 9 pages.

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2                                     BUSINESS STUDIES P1                   (EC/NOVEMBER 2020)

    INSTRUCTIONS AND INFORMATION

    Read the following instructions carefully before answering the questions.

    1.    This question paper consists of THREE sections and covers TWO main topics.

          SECTION A:     COMPULSORY
          SECTION B:     Consists of THREE questions
                         Answer any TWO of the three questions in this section.
          SECTION C:     Consists of TWO questions
                         Answer any ONE of the two questions in this section.

    2.    Read the instructions for each question carefully and take particular note of what
          is required.

          Note that ONLY the first TWO questions in SECTION B and the FIRST question
          in SECTION C will be marked.

    3.    Number the answers carefully according to the numbering system used in this
          question paper. NO marks will be awarded for answers that are numbered
          incorrectly.

    4.    Except where other instructions are given, answers must be written in full
          sentences.

    5.    Use the mark allocation and nature of each question to determine the length and
          depth of an answer.

    6.    Use the table below as a guide for mark and time allocation when answering
          each question.

                                                                                   TIME
                      SECTION                   QUESTION        MARKS
                                                                                 (minutes)
          A:   Objective-type questions
               COMPULSORY                            1             30                20
          B:   THREE direct/indirect type            2             40                35
               questions
               CHOICE:                               3             40                35
               Answer any TWO.
                                                     4             40                35

          C:   TWO essay-type questions              5             40                30
               CHOICE:
               Answer any ONE.                       6             40                30
                      TOTAL                                       150                120

    7.    Begin the answer to EACH question on a NEW page, e.g. QUESTION 1 – new
          page, QUESTION 2 – new page.

    8.    You may use a non-programmable calculator.

    9.    Write neatly and legibly.

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(EC/NOVEMBER 2020)                    BUSINESS STUDIES P1                                   3

  SECTION A (COMPULSORY)
  QUESTION 1
  1.1 Various options are provided as possible answers to the following questions.
      Choose the answer and write only the letter (A–D) next to the question
      numbers (1.1.1 to 1.1.5) in the ANSWER BOOK, e.g. 1.1.6 D.

        1.1.1    The business has … control over the micro environment.

                 A     some
                 B     full
                 C     no
                 D     less

        1.1.2    Competitors is one of the components of the … environment.

                 A     micro
                 B     macro
                 C     market
                 D     economic

        1.1.3    The agreement between Fuma Furniture and Cuma Chairs to work
                 together to achieve their objectives, is known as …

                 A     merger.
                 B     takeover.
                 C     acquisition.
                 D     alliance.

        1.1.4    Sweet Tooth uses … when sweets and biscuits are packaged
                 together.

                 A     combination packaging
                 B     speciality packaging
                 C     packaging for double use
                 D     unique packaging

        1.1.5    The process of matching a new employee's skills and abilities with the
                 requirements of a job is known as ...

                 A     selection.
                 B     recruitment.
                 C     placement.
                 D     induction.
                                                                                (5 x 2)   (10)

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4                                  BUSINESS STUDIES P1                       (EC/NOVEMBER 2020)

    1.2 Complete the following statements by using the word(s) provided in the list
        below. Write only the word(s) next to the question numbers (1.2.1 to 1.2.5) in
        the ANSWER BOOK.

           quality; psychographics; promotional; piecemeal; primary; production;
                     secondary; penetration; time related; demographics

         1.2.1   The … sector is responsible for changing the raw materials into useful
                 products.

         1.2.2   Suki Stationers studied the attitudes and tastes of their target market.
                 This is an example of …

         1.2.3   Fast Shoes uses … pricing when they have an end-of-range sale.

         1.2.4   The setting of targets, measuring performance and taking corrective
                 measures are known as … control.

         1.2.5   A … salary determination method is used when workers are paid
                 according to the number of items produced.
                                                                        (5 x 2)             (10)

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(EC/NOVEMBER 2020)                   BUSINESS STUDIES P1                                     5

  1.3 Choose a description from COLUMN B that matches a term in COLUMN A.
      Write only the letter (A–J) next to the question numbers (1.3.1 to 1.3.5) in the
      ANSWER BOOK, e.g. 1.3.6 K.

             COLUMN A                                   COLUMN B
        1.3.1 Inflation          A     the total salary amount before deductions

        1.3.2    Go slow         B     consumers buy these goods after putting in
                                       time and effort to compare similar goods

        1.3.3    Convenience     C     ensure the involvement and co-operation of the
                 goods                 management in improving the quality of
                                       products

        1.3.4    Total quality D       general increase in the prices of goods and
                 management            services in a country

        1.3.5    Gross salary    E     workers temporary and collectively refuse to
                                       work

                                 F     the total salary amount after deductions

                                 G general increase in the population of a country

                                 H     consumers buy these goods regularly without
                                       hesitation

                                 I     workers collectively continue with their duties
                                       at a slower pace than normal

                                 J     integrated system which ensures each
                                       employee is responsible for quality work
                                                                                  (5 x 2)   (10)

                                                                  TOTAL SECTION A:           30

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6                                  BUSINESS STUDIES P1                        (EC/NOVEMBER 2020)

 SECTION B
 Answer ANY TWO questions in this section.
 NOTE:       Clearly indicate the QUESTION NUMBER of each question that you
             choose. The answer to EACH question must start on a NEW page, e.g.
             QUESTION 2 on a new page, QUESTION 3 on a NEW page.

 QUESTION 2: BUSINESS ENVIRONMENTS

 2.1    Name TWO types of lobbying that businesses can use to adapt to the
        challenges of the business environment.                                            (2)

 2.2    Outline the functions of trade unions.                                             (8)

 2.3    Identify the socio-economic issues faced by Wild Print Textiles in EACH
        statement below:
        2.3.1    Some employees cannot read the patterns or instructions to make
                 the clothing.                                                             (2)

        2.3.2    The employees are considering refusing to work, due to an
                 unresolved dispute with the management.                                   (2)
        2.3.3    China exports their clothing that they are unable to sell in their own
                 country to South Africa, at very low prices.                              (2)

 2.4    Explain the purpose of the Labour Relations Act.                                   (8)

 2.5    Read the scenario below and answer the questions that follow.

                            ESSENTIAL SUPERMARKET (ES)

        The employees of Essential Supermarket don’t want to cooperate and work
        together as a team. Recently the management also could not find a regular
        provider of all the products they need.

        Use the table below as a GUIDE to answer QUESTION 2.5.1 and 2.5.2 that
        follow.

                     CHALLENGES                    BUSINESS ENVIRONMENTS
                        (2.5.1)                             (2.5.2)
        1.
        2.

        2.5.1    Quote TWO challenges from the scenario above that ES have to
                 deal with.                                                                (2)
        2.5.2    Classify EACH challenge quoted in QUESTION 2.5.1 according to
                 the business environment.                                                 (4)
        2.5.3    Suggest TWO ways in which businesses can adapt to ONE of the
                 challenges quoted in QUESTION 2.5.1.                                      (4)

 2.6    Recommend projects that can be undertaken by businesses as part of
        social responsibility.                                                             (6)
                                                                                          [40]
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(EC/NOVEMBER 2020)                 BUSINESS STUDIES P1                                         7

 QUESTION 3: BUSINESS OPERATIONS

 3.1    State FOUR employee benefits.                                                    (4)

 3.2    Outline THREE aspects of the employment contract.                                (6)

 3.3    Discuss the purpose of induction as a human resources activity.                  (6)

 3.4    Identify the factors considered by Core Clothing that influence their pricing
        in EACH statement below:

        3.4.1    The number of consumers wanting to buy their clothing                   (2)

        3.4.2    An increase of 20% in their labour and transportation costs             (2)

 3.5    Explain the purpose of packaging.                                                (6)

 3.6    Read the scenario below and answer the questions that follow.

                                BRIGHT SNEAKERS (BS)

        Bright Sneakers manufactures a variety of brightly coloured sneakers.
        Steve, the production manager, has to set up the actual route which the
        materials must follow in the factory. He also has to calculate the time
        required to perform each activity in the manufacturing process.

        3.6.1    Quote from the scenario TWO aspects that must be considered by
                 BS during production planning.                                          (2)

        3.6.2    Explain to the management of BS the advantages of production
                 planning.                                                               (6)

 3.7    Recommend precautionary measure that businesses should take when
        handling machinery.                                                              (6)
                                                                                        [40]

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8                                 BUSINESS STUDIES P1                      (EC/NOVEMBER 2020)

 QUESTION 4: MISCELLANEOUS TOPICS
 BUSINESS ENVIRONMENTS

 4.1    Give TWO examples of contemporary legislation that may affect business
        operations.                                                                     (2)

 4.2    Elaborate on the meaning of networking.                                         (4)

 4.3    Explain ways businesses can form power relationships.                           (6)

 4.4    Read the scenario below and answer the questions that follow.

                                   ELITE MUSIC (EM)

        Elite Music sells CDs and DVDs in East London. Recently they discovered
        that more and more people are making illegal copies of the CDs and DVDs
        that they are selling. Therefore, that would explain the decrease in sales
        and profits that they have been experiencing.

        4.4.1    Quote the impact of piracy on EM from the scenario above.              (2)

        4.4.2    Suggest ways in which EM can deal with piracy.                         (6)

 BUSINESS OPERATIONS

 4.5    State TWO types of recruitment.                                                 (2)

 4.6    Name any TWO quality control bodies.                                            (2)

 4.7    Outline the purpose of the Occupational Health and Safety Act.                  (6)

 4.8    Read the scenario below and answer the question that follows.

                                CUMA ENTERPRISE (CE)
        Cuma Enterprise is a large retail business that provides a variety of
        products. They allow their workers to belong to a trade union. The human
        resources department regularly identify the training needs of their workers.

        Identify TWO acts that are applicable to CE. Motivate your answer by
        quoting from the scenario above.

        Use the table below as a GUIDE to answer QUESTION 4.8

                       ACTS                              MOTIVATIONS
        1.
        2.                                                                              (6)

 4.9    Recommend ways in which the human resources function can comply
        with the Basic Conditions of Employment Act (BCEA), 1997 (Act 75 of
        1997).                                                                          (4)
                                                                                       [40]
                                                              TOTAL SECTION B:           80
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(EC/NOVEMBER 2020)                BUSINESS STUDIES P1                                      9

  SECTION C

  Answer ONE question in this section.

  NOTE:      Clearly indicate the QUESTION NUMBER of each question chosen.
             The answer to the question must start on a NEW page, e.g.
             QUESTION 5 on a NEW page or QUESTION 6 on a NEW page.

  QUESTION 5: BUSINESS ENVIRONMENTS

  The macro environment consists of many components and poses many
  challenges to businesses. Businesses should be involved in the macro
  environment which in return can benefit them.

  With reference to the above, write an essay on the following aspects:

  x Outline FOUR components of the macro environment.
  x Explain FIVE challenges of the macro environment.
  x Discuss the advantages of businesses that are involved in the macro
    environment.
  x Recommend ways in which businesses can be involved in the macro
    environment.                                                                       [40]

  QUESTION 6: BUSINESS OPERATIONS

  Super Bags (SB) is a newly established company that specialises in the
  manufacturing of quality school bags. SB realises that the distribution of their
  products and their marketing communication policy will determine their success.
  The management is looking into using different types of intermediaries and are
  considering using personal selling to promote their products.

  As an expert in distribution and communication, write an essay on the following
  aspects:

  x Outline the different types of intermediaries.
  x Explain the reasons why SB, as a manufacturer, may prefer to make use of
    direct distribution methods.
  x Discuss the following components of the marketing communication policy:
    o Advertising
    o Publicity
    o Personal selling
  x Advise SB on the effectiveness of personal selling in promoting their
    products.                                                                          [40]

                                                            TOTAL SECTION C:            40
                                                               GRAND TOTAL:            150

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                        NATIONAL
                   SENIOR CERTIFICATE

                             GRADE 11

                       NOVEMBER 2020

                 BUSINESS STUDIES P1
                  MARKING GUIDELINE

MARKS: 150

                 This marking guideline consists of 29 pages.

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2                                   BUSINESS STUDIES P1                     (EC/NOVEMBER 2020)

 NOTES TO MARKERS

 1.     PREAMBLE

        The notes to markers are provided for quality assurance purposes to ensure the
        following:

        (a)     Fairness, consistency and reliability in the standard of marking
        (b)     Facilitate the moderation of candidates' scripts at the different levels
        (c)     Streamline the marking process considering the broad spectrum of markers
                across the country
        (d)     Implement appropriate measures in the teaching, learning and
                assessment of the subject at schools/institutions of learning

 2.     Candidates' responses must be in full sentences for SECTIONS B and C. However,
        this would depend on the nature of the question.

 3.     A comprehensive marking guideline has been provided but this is by no means
        exhaustive. Due consideration should be given to an answer that is correct but:

         x    Uses a different expression from that which appears in the marking guideline
         x    Comes from another credible source
         x    Original
         x    A different approach is used

         NOTE: There is only ONE correct answer in SECTION A.

 4.     Take note of other relevant answers provided by candidates and allocate marks
        accordingly. (In cases where the answer is unclear or indicates some
        understanding, part-marks should be awarded, for example, one mark instead of
        the maximum of two marks.)

 5.     The word 'Sub-max' is used to facilitate the allocation of marks within a question or
        sub-question.

 6.     The purpose of circling marks (guided by 'max' in the breakdown of marks) on the
        right-hand side is to ensure consistency and accuracy in the marking of scripts as
        well as for calculation and moderation purposes.

 7.     Subtotals to questions must be written in the right-hand margin. Circle the subtotals
        as indicated by the allocation of marks. This must be guided by 'max' in the marking
        guidelines. Only the total for each question should appear in the left-hand margin
        next to the appropriate question number.

 8.     In an indirect question, the theory as well as the response must be relevant and
        related to the question.

 9.     Correct numbering of answers to questions or sub questions is recommended in
        SECTIONS A and B. However, if the numbering is incorrect, follow the sequence
        of the candidate's responses. Candidates will be penalised if the latter is not clear.

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(EC/NOVEMBER 2020)                   BUSINESS STUDIES P1                                         3

 10.      No additional credit must be given for repetition of facts. Indicate with an 'R'.

 11.      The differentiation between 'evaluate' and 'critically evaluate' can be explained
          as follows:

          11.1       When 'evaluate' is used, candidates are expected to respond in either a
                     positive/negative manner or take a neutral (positive and negative)
                     stance, e.g. Positive: 'COIDA eliminates time and costs spent¥ on
                     lengthy civil court proceedings.'¥

          11.2       When 'critically evaluate' is used, candidates are expected to respond
                     in either a positive/negative manner or take a neutral (positive and
                     negative) stance. In this instance candidates are also expected to
                     support their responses with more depth, e.g. 'COIDA eliminates time
                     and costs spent¥ on lengthy civil court proceedings¥, because the
                     employer will not be liable for compensation to the employee for injuries
                     sustained during working hours as long as it can be proved that the
                     business was not negligent.'¥

          NOTE: 1. The above could apply to 'analyse' as well.
                2. Note the placing of the tick (¥) in the allocation of marks.

 12.      The allocation of marks must be informed by the nature of the question, cognitive
          verb used, mark allocation in the marking guideline and the context of each
          question.

          Cognitive verbs, such as:

          12.1       Advise, name, state, outline, motivate, recommend, suggest, (list not
                     exhaustive) do not usually require much depth in candidates' responses.
                     Therefore, the mark allocation for each statement/answer appears at the
                     end.

          12.2       Define, describe, explain, discuss, elaborate, distinguish, differentiate,
                     compare, tabulate, justify, analyse, evaluate, critically evaluate (list not
                     exhaustive) require a greater depth of understanding, application and
                     reasoning. Therefore, the marks must be allocated more objectively to
                     ensure that assessing is conducted according to established norms so
                     that uniformity, consistency and fairness are achieved.

 13.      Mark only the FIRST answer where candidates offer more than one answer for
          SECTION B and C questions that require one answer.

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4                                      BUSINESS STUDIES P1                     (EC/NOVEMBER 2020)

 14.      SECTION B

 14.1     If for example, FIVE facts are required, mark the candidate's FIRST FIVE
          responses and ignore the rest of the responses. Indicate by drawing a line across
          the unmarked portion or use the word 'Cancel'.

          NOTE:          This applies only to questions where the number of facts is specified.

 14.2     If two facts are written in one sentence, award the candidate FULL credit. Point
          14.1 above still applies.
 14.3     If candidates are required to provide their own examples/views, brainstorm this
          at the marking centre to finalise alternative answers.

 14.4     Use of the cognitive verbs and allocation of marks:

          14.4.1 If the number of facts are specified, questions that require candidates to
                 'describe/discuss/explain' may be marked as follows:
                     x     Fact             2 marks (or as indicated in the marking guidelines)
                     x     Explanation      1 mark (two marks will be allocated in Section C)
                     The 'fact' and 'explanation' are given separately in the marking guideline
                     to facilitate mark allocation.

          14.4.2 If the number of facts required is not specified, the allocation of marks
                 must be informed by the nature of the question and the maximum mark
                 allocated in the marking guideline.

 14.5     ONE mark may be awarded for answers that are easy to recall, requires one
          word answers or is quoted directly from a scenario/case study. This
          applies to SECTIONS B and C in particular (where applicable).

 15.      SECTION C

 15.1     The breakdown of the mark allocation for the essays is as follows:

            Introduction
                                           Maximum:
            Content
                                              32
            Conclusion
            Insight                             8
            TOTAL                               40

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(EC/NOVEMBER 2020)                 BUSINESS STUDIES P1                                       5

 15.2      Insight consists of the following components:

            Layout/Structure Is there an introduction, a body, and a conclusion?            2
            Analysis and     Is the candidate able to break down the question into          2
            interpretation   headings/subheadings/interpret it correctly to show
                             understanding of what is being asked?
                             Marks to be allocated using this guide:
                             All headings addressed:            1 (One 'A')
                             Interpretation (16 to 32 marks): 1 (One 'A')
            Synthesis         Are there relevant decisions/facts/responses made             2
                              based on the questions?
                              Marks to be allocated using this guide:
                              No relevant facts:    0 (Two '-S')
                              Some relevant facts: 1 (One '-S')
                              Only relevant facts: 2 (No '-S')

                              Option 1:   Where a candidate answers 50% or more
                                          of the question with only relevant facts; no
                                          '-S' appears in the left margin. Award the
                                          maximum of TWO (2) marks for synthesis.
                             Option 2:    Where a candidate answers less than 50%
                                          of the question with only OR some relevant
                                          facts; one '-S' appears in the left margin.
                                          Award a maximum of ONE (1) mark for
                                          synthesis.
                             Option 3:    Where a candidate answers less than 50%
                                          of the question with no relevant facts; two
                                          '-S' appear in the left margin. Award a
                                          ZERO mark for synthesis.
           Originality       Is there evidence of examples based on recent             2
                             information, current trends and developments?
                                                               TOTAL FOR INSIGHT: 8
                                                       TOTAL MARKS FOR FACTS: 32
                                               TOTAL MARKS FOR ESSAY (8 + 32): 40
           NOTE: 1. No marks will be awarded for contents repeated from the
                       introduction and conclusion.

                     2. The candidate forfeits marks for layout if the words
                        INTRODUCTION and CONCLUSION are not stated.

                     3. No marks will be awarded for layout, if the headings
                        INTRODUCTION and CONCLUSION are not supported by
                        an explanation.

 15.3      Indicate insight in the left-hand margin with a symbol e.g. ('L, A, -S and/or
           O').

 15.4      The breakdown of marks is indicated at the end of the suggested answer/
           marking guideline to each question.

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6                                  BUSINESS STUDIES P1                       (EC/NOVEMBER 2020)

 15.5      Mark all relevant facts until the SUB MAX/MAX mark in a subsection has been
           attained. Write SUB MAX/MAX after maximum marks have been obtained, but
           continue reading for originality “O”.

 15.6      At the end of each essay indicate the allocation of marks for facts and marks
           for insight as follows: (L – Layout, A – Analysis, S – Synthesis, O – Originality)
           as in the table below.

                     CONTENT                             MARKS
                       Facts                            32 (max.)
                         L                                  2
                        A                                   2
                        S                                   2
                        O                                   2
                      TOTAL                                 40

 15.7      When awarding marks for facts, take note of the sub-maxima indicated,
           especially if candidates do not make use of the same subheadings.
           Remember, headings and subheadings are encouraged and contribute to
           insight (structuring/logical flow/sequencing) and indicate clarity of thought.
           (See MARK BREAKDOWN at the end of each question.)

 15.8      If the candidate identifies/interprets the question INCORRECTLY, then he/she
           may still obtain marks for layout.

 15.9      If a different approach is used by candidates, ensure that the answers are
           assessed according to the mark allocation/subheadings as indicated in the
           marking guideline.

 15.10     15.10.1 Award TWO marks for complete sentences. Award ONE mark for
                   phrases, incomplete sentences and vague answers.

           15.10.2    With effect from November 2015, the TWO marks will not
                      necessarily appear at the end of each completed sentence. The ticks
                      (¥) will be separated and indicated next to each fact, e.g. 'Product
                      development is a growth strategy ¥, where businesses aim to
                      introduce new products into existing markets.'¥

                     This will be informed by the nature and context of the question, as
                     well as the cognitive verb used.

 15.11     With effect from November 2017, the maximum of TWO (2) marks for facts
           shown as headings in the marking guidelines, will not necessarily apply to each
           question. This would also depend on the nature of the question.

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(EC/NOVEMBER 2020)               BUSINESS STUDIES P1                           7

 SECTION A

 QUESTION 1

 1.1      1.1.1   B ¥¥
          1.1.2   C ¥¥
          1.1.3   D ¥¥
          1.1.4   A ¥¥
          1.1.5   C ¥¥
                                                                  (5 x 2) (10)

 1.2      1.2.1   secondary ¥¥
          1.2.2   psychographics ¥¥
          1.2.3   promotional ¥¥
          1.2.4   quality ¥¥
          1.2.5   piecemeal ¥¥
                                                                  (5 x 2) (10)

 1.3      1.3.1   D ¥¥
          1.3.2   I ¥¥
          1.3.3   H ¥¥
          1.3.4   J ¥¥
          1.3.5   A ¥¥
                                                                  (5 x 2) (10)

                                                        TOTAL SECTION A: 30

                                                  BREAKDOWN OF MARKS
                                                   QUESTION 1   MARKS
                                                      1.1         10
                                                      1.2         10
                                                      1.3         10
                                                     TOTAL        30

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8                                BUSINESS STUDIES P1                     (EC/NOVEMBER 2020)

    SECTION B

    Mark the FIRST TWO answers only.

    QUESTION 2: BUSINESS ENVIRONMENTS

    2.1    Types of lobbying
           - Hedging against inflation ¥
           - Bargaining sessions between management and unions ¥
           - Influencing supervisory body/regulators ¥
           NOTE: Mark the first TWO (2) only.
                                                                             (2 x 1)     (2)

    2.2    Functions of a trade union
           - Protecting the interest of workers. ¥¥
           - Representing the interest of general society and minority groups
             through media and negotiations. ¥¥
           - Influencing government decisions. ¥¥
           - Influencing management for better working conditions, salaries and
             benefits. ¥¥
           - Representing employees corporately and individually. ¥¥
           - Improving the material benefits of their members. ¥¥
           - Advancing the interest of members. ¥¥
           - Providing legal and financial advice. ¥¥
           - Providing benefits and educational facilities to its members. ¥¥
           - Supporting gender equality. ¥¥
           - Protecting members in times of retrenchments and disciplinary
             hearings. ¥¥
           - Protecting the interest of their members during disciplinary
             procedures.¥¥
           - Any other relevant answer related to the functions of trade unions.
                                                                                Max.     (8)

    2.3    Socio-economic issues
           2.3.1 Illiteracy ¥¥                                                           (2)
           2.3.2 Strike ¥¥                                                               (2)
           2.3.3 Dumping ¥¥                                                              (2)

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(EC/NOVEMBER 2020)               BUSINESS STUDIES P1                                     9

  2.4      Purpose of the LRA
           - Provides a framework where the employees, trade unions and
             employers work together ¥ to discuss matters relating to employment,
             e.g. wages, conditions of employment. ¥
           - Promotes orderly negotiations and employee participation ¥ in decision
             making in the workplace. ¥
           - Promotes resolution ¥ of labour disputes. ¥
           - Promotes fair ¥ employment practices. ¥
           - Outlines the relationship ¥ between employees and employers. ¥
           - Provides simple procedures ¥ for the registration of trade unions and
             employers’ organisations. ¥
           - Regulates the rights of trade unions and facilitates ¥ collective
             bargaining. ¥
           - Regulates the effectiveness of bargaining councils ¥ and statutory
             councils. ¥
           - Allows workplace forums ¥ where employees may participate in
             decision making. ¥
           - Establishes the Commission for Conciliation, Mediation and Arbitration
             (CCMA) to resolve labour disputes ¥ through statutory conciliation,
             mediation and arbitration. ¥
           - Endorses the right to strike against retrenchments, ¥ and facilitates
             labour disputes. ¥
           - Clarifies the transfer ¥ of contracts of employment procedures. ¥
           - Establishes Labour Courts and Labour Appeal Courts ¥ to deal with
             labour issues. ¥
           - Offers codes ¥ of good practice. ¥
           - Deals with ¥ strikes and lockouts and workplace forums. ¥
           - Establishes workplace forums to promote ¥ the interest of all employees
             in the workplace whether they belong to the trade union or not. ¥
           - Any other relevant answer related to the purpose of the Labour
             Relations Act.
                                                                                Max.    (8)

  2.5      Challenges and environments from the scenario
                        CHALLENGES                   BUSINESS ENVIRONMENTS
                            2.5.1                             2.5.2
           1. The employees at Essential             Micro ¥¥
              Supermarket don’t want to cooperate
              and work together as a team.¥
           2. Recently the management also could Market ¥¥
              not find a regular provider of all the
              products they need.¥
                                       Sub max (2)                  Sub max (4)

           NOTE:     Do not award marks for the business environment, if the
                     challenge was incorrectly identified.
                                                                           Max.         (6)

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10                                BUSINESS STUDIES P1                      (EC/NOVEMBER 2020)

  2.5.3    Ways in which businesses can adapt to difficult employees
           - Businesses can deal with difficult employees by revisiting the
             recruitment & induction policies. ¥¥
           - Businesses need to develop strategies to deal with different types of
             personalities. ¥¥
           - Businesses must offer counselling sessions to employees with personal
             problems. ¥¥
           - Any other relevant answer related to ways in which businesses can deal
             with difficult employees.
           NOTE: Mark the first TWO (2) only.
                                                                             (2 x 2)       (4)

                                               OR

           Ways in which businesses can adapt to shortage of supply
           - Select suppliers which are reputable/trustworthy and reliable. ¥¥
           - Maintain a good relationship with suppliers. ¥¥
           - Enter into contracts with suppliers to secure raw materials of good
             quality in sufficient quantities. ¥¥
           - Take over suppliers to ensure continuity of its supply. This is called
             backwards integration. ¥¥
           - Any other relevant answer related to ways in which businesses can deal
             with shortage of supplies.
           NOTE: Mark the first TWO (2) only.
                                                                               (2 x 2)     (4)

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(EC/NOVEMBER 2020)               BUSINESS STUDIES P1                                   11

  2.6      Projects undertaken by businesses as part of social responsibility
           - Charitable contribution towards NGOs/Businesses can donate blankets
             to old age homes/run soup kitchens. ¥¥
           - Involvement in community education/Build schools in communities/
             Offer bursaries to needy students/Donate old computers to less
             privileged schools/Provide/Support adult education and training in the
             local community. ¥¥
           - Teach entrepreneurial skills/Offer support to individuals starting new
             business ventures. ¥¥
           - Conduct skills development/job creation projects/Offer bricklaying
             courses. ¥¥
           - Sponsor art and cultural programmes, such as school choirs. ¥¥
           - Support youth programmes, such as sport/recreational activities. ¥¥
           - Address issues like HIV/Aids or COVID-19 pandemic. ¥¥
           - Any other relevant answer related to projects that can be undertaken by
             business as part of social responsibility.
                                                                               Max.     (6)
                                                                                       [40]

                                                     BREAKDOWN OF MARKS
                                                      QUESTION 2   MARKS
                                                          2.1         2
                                                          2.2         8
                                                          2.3         6
                                                          2.4         8
                                                         2.5.1        2
                                                         2.5.2        4
                                                         2.5.3        4
                                                          2.6         6
                                                        TOTAL        40

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12                                BUSINESS STUDIES P1                     (EC/NOVEMBER 2020)

  QUESTION 3: BUSINESS OPERATIONS

  3.1      Examples of employee benefits
           - Medical Aid Fund/Health Insurance Fund ¥
           - Pension Fund ¥
           - Provident Fund ¥
           - Funeral benefits ¥
           - Car/Travel/Housing/Cell phone/Clothing allowance ¥
           - Performance-based incentives ¥
           - Issuing of bonus shares ¥
           - Staff discount/Free or low cost meal/Canteen facilities ¥
           - Any other relevant answer related to examples of employment benefits.
           NOTE: Mark the first FOUR (4) only.
                                                                           (4 x 1)         (4)

  3.2      Aspects of the employment contract
           - Personal details of the employee ¥¥
           - Details of the business/employer, e.g. name/address ¥¥, etc.
           - Job title/Position ¥¥
           - Job description ¥¥
           - Job specification ¥¥
           - Date of employment/commencement of employment ¥¥
           - Place where employee will spend most of his/her working time ¥¥
           - Hours of work, e.g. normal time/overtime ¥¥
           - Remuneration, e.g. weekly or monthly pay ¥¥
           - Benefits/Fringe benefits/Perks/Allowances ¥¥
           - Leave, e.g. sick/maternity/annual/adoption leave ¥¥
           - Employee deductions (compulsory/non-compulsory) ¥¥
           - Period of contract/Details of termination ¥¥
           - Probation period ¥¥
           - Signatures of both the employer and employee ¥¥
           - List of documents that form part of the contract, e.g. appointment
             letter/code of conduct/ethics ¥¥
           - Disciplinary policy, e.g. rules and disciplinary procedure for
             unacceptable behaviour. ¥¥
           - Any other relevant answer related to the aspects that must be included
             in the employment contract of the selected candidate.
           NOTE: Mark the first THREE (3) only.                               (3 x 2)      (6)

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(EC/NOVEMBER 2020)                BUSINESS STUDIES P1                                   13

  3.3      Purpose of induction as a human resources activity
           - Introduce new employees to management/colleagues ¥ to establish
              relationships with fellow colleagues at different levels. ¥
           - Create opportunities for new employees ¥ to experience/explore
              different departments. ¥
           - Explain safety regulations and rules, ¥ so that new employees will
              understand their role/responsibilities in this regard. ¥
           - Communicate information ¥ about the products/services. ¥
           - Allow new employees the opportunity to ask questions ¥ that will put
              them at ease/reduce insecurity/anxiety/fear. ¥
           - Make new employees feel welcome ¥ by introducing them to their
              physical workspace. ¥
           - Give new employees a tour/information ¥ about the layout of the
              building/office. ¥
           - Improve skills ¥ through in-service training. ¥
           - Familiarise new employees ¥ with the organisational structure/their
              supervisors. ¥
           - Ensure that employees understand their roles/responsibilities ¥ so that
              they will be more efficient/productive. ¥
           - Communicate business policies ¥ regarding ethical/professional
              conduct/procedures/employment contract/conditions of employment, ¥
              etc.
           - Any other relevant answer related to the purpose of induction as a
              human resources activity.
                                                                               Max.       (6)

  3.4      Factors that influence pricing
           3.4.1 Demand ¥¥                                                                (2)
           3.4.2 Input costs ¥¥                                                           (2)

  3.5      Purpose of packaging
           - Physically protect ¥ the product from any harm. ¥
           - Promote the marketing ¥ of a product. ¥
           - Prevent a product ¥ from getting spoilt. ¥
           - Prevent tampering ¥ or theft of a product. ¥
           - Improve convenience ¥ in use or storage of a product. ¥
           - Makes it easier ¥ to identify products. ¥
           - Differentiate the product ¥ from other competing goods. ¥
           - Contribute to the profitability of the business ¥ through sales and use
              of resources. ¥
           - Attracts attention to show value of the product ¥ as a marketing tool. ¥
           - Links the product to the promotion strategy ¥ used to promote the
              product. ¥
           - Any other relevant answer related to the purpose of the packaging of
              products.
                                                                                 Max.     (6)

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14                                BUSINESS STUDIES P1                      (EC/NOVEMBER 2020)

  3.6      Production planning

           3.6.1 Aspects during production planning from the scenario
           - Steve, the production manager, has to set up the actual route which the
              materials must follow in the factory. ¥
           - He also has to calculate the time required to perform each activity in the
              manufacturing process. ¥
           NOTE: Mark the first TWO (2) only.
                                                                                (2 x 1)     (2)
           3.6.2 Advantages of production planning
           - Production planning allows a business to ensure that every machine and
              worker ¥ is used to their full capacity. ¥
           - Business can ensure that it has the correct amount of supplies ¥ and
              stock/inventory control at a given time. ¥
           - Improved inventory control reduces wastage ¥ and unnecessary storage
              cost. ¥
           - Production planning will prevent time being wasted ¥ and increases the
              number of final products thus increasing productivity. ¥
           - Production planning process involves quality checks ¥ which will
              improve quality. ¥
           - Any other relevant answer related to the advantages of production
              planning.
                                                                                  Max.      (6)
  3.7      Precautionary measure businesses should take when handling
           machinery
           - All machinery and equipment must be correctly installed and safe to
             use. ¥¥
           - Workers must be properly trained on how to use machinery and must
             be informed about the risks when using the machinery. ¥¥
           - Regular safety checks must be carried out and machinery should be
             maintained and serviced regularly. ¥¥
           - Workers need to wear protective clothing and gear such as overalls,
             hard hats and safety helmets, ear plugs, masks, heavy-duty safety
             boots, welding goggles and gloves when working with machinery and
             equipment. ¥¥
           - Develop a culture of safety in the workplace. ¥¥
           - Familiarise employees with safety procedures. ¥¥
           - Any other relevant answer related to the precautionary measures that
             businesses should take when handling machinery.
                                                                                  Max.     (6)
                                                                                          [40]
                                                      BREAKDOWN OF MARKS
                                                       QUESTION 3   MARKS
                                                           3.1         4
                                                           3.2         6
                                                           3.3         6
                                                           3.4         4
                                                           3.5         6
                                                          3.6.1        2
                                                          3.6.2        6
                                                           3.7         6
                                                         TOTAL        40
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(EC/NOVEMBER 2020)             BUSINESS STUDIES P1                                15

  QUESTION 4: MISCELLANEOUS TOPICS

  BUSINESS ENVIRONMENTS
  4.1   Examples of contemporary legislation that could affect business
        operations
        - Labour Relations Act ¥¥
        - National Credit Act ¥¥
        - Consumer Protection Act ¥¥
        - Employment Equity Act ¥¥
        - Skills Development Act ¥¥
        - Broad Based Black Economic Empowerment Act ¥¥
        - Compensation for Occupational Injuries and Diseases Act ¥¥ /
          OHSA ¥¥
        - Basic Conditions of Employment Act ¥¥
        - Companies Act ¥¥
        - Any other relevant answer related to examples of contemporary
          legislation that could affect business operations.
        NOTE: Mark the first TWO (2) only.
                                                                       (2 x 1)      (2)

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16                                BUSINESS STUDIES P1                     (EC/NOVEMBER 2020)

  4.2      Meaning of networking
           - Networking refers to a coordinated activity where people who have a
             similar objective meet ¥ and exchange information and ideas. ¥
           - The goal of networking is to reach as many people as possible ¥ and to
             make every connection count. ¥
           - Businesses can use networking as a tool ¥ to increase sales/image of
             business. ¥
           - Businesses can become members of chambers of commerce and
             industry/professional business clubs/informal social groupings ¥ to
             meet new contacts. ¥
           - Any other relevant answer related to the meaning of networking.
                                                                              Max.         (4)

  4.3      Ways businesses can form power relationships
           - Build around BBBEE ¥ and empowerment of employees. ¥
           - Ability of a person’s power to influence ¥ others’ thoughts, actions or
             choices. ¥
           - Every party to a relationship possesses a degree of power, ¥ i.e. power
             to strike/demand payment/order material ¥ etc.
           - Strategic alliances/Agreement ¥ between businesses leading to mutual
             benefits. ¥
           - Strategic allies do not want to lose ¥ mutual benefits. ¥
           - Strategic allies consider suggestions ¥ made by businesses in the
             alliance. ¥
           - Persuasion of large investors ¥ has power to influence other
             businesses. ¥
           - Secure goodwill of investors ¥ and listen to suggestions of investors. ¥
           - Influence on company representatives ¥ through agent or
             intermediary. ¥
           - Intermediaries influence customers by handing out free samples ¥ and
             by recommendation of certain products by specialists/investors. ¥
           - Any other relevant answer related to ways in which businesses can
             form power relationships.                                          Max.       (6)

  4.4      Piracy
           4.4.1     Impact of piracy from the scenario
           - Therefore, that would explain the decrease in sales ¥ and profits ¥ that
              they have been experiencing.                                    (2 x 1)      (2)

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(EC/NOVEMBER 2020)                BUSINESS STUDIES P1                                      17

           4.4.2       Ways EM can deal with piracy
           - Patent ¥ /prevents other businesses/people not to produce and sell
              the same product/specific service. ¥
           - EM can take out a patent for new inventions ¥ and include a sample
              of their invention with the application. ¥
           - They can bring legal proceedings against anyone ¥ who uses the
              invention. ¥
           - Trademarks ¥ /identify businesses and their products. ¥
           - They must register their trademarks ¥ with the register of trademarks
              at the companies and intellectual property registration. ¥
           - Copyright ¥ /EM can take legal action against people who copy their
              products. ¥
           - Any other relevant answer related to ways in which EM can deal with
              piracy.                                                         Max.          (6)

  BUSINESS OPERATIONS

  4.5      Types of recruitment
           - Internal recruitment ¥
           - External recruitment ¥
           NOTE: Mark the first TWO (2) only.                                   (2 x 1)     (2)

  4.6      Quality control bodies
           - SABS ¥
           - ISO ¥
           - Quality circles ¥
           - Any other relevant answer related to quality control bodies.
           NOTE: Mark the first TWO (2) only.                                   (2 x 1)     (2)

  4.7      Purpose of the Occupational Health and Safety Act
           - The aim is to provide for the health and safety of employees at work
             and during the use of plants and machinery. ¥¥
           - It outlines the roles and responsibilities of employers, employees,
             designers, importers, suppliers and sellers. ¥¥
           - The Act requires that the main dangers of the workplace be identified
             and eliminated. ¥¥
           - It requires that employees are expected to co-operate and follow the
             necessary instructions and report any unsafe situations. ¥¥
           - Clarifies the roles and duties of the health and safety representatives. ¥¥
           - Any other relevant answer related to the purpose of Occupational
             Health and Safety Act.
                                                                                  Max.      (6)

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