Business Studies Grade 12 EC June 2019 Memo

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE GRADE 12 JUNE 2019 BUSINESS STUDIES MARKING GUIDELINE MARKS: 300 This marking guideline consists of 44 pages.

Downloaded from hlayiso.com 2 BUSINESS STUDIES (EC/JUNE 2019) NOTES TO MARKERS 1. Candidates’ responses must be in full sentences for SECTIONS B and C. However, this would depend on the nature of the question. 2. 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:  Uses a different expression from that which appears in the marking guideline  Comes from another source  Original  A different approach is used NOTE: There is only ONE correct answer in SECTION A. 3. 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.) 4. The word ‘Submax’ is used to facilitate the allocation of marks within a question or sub-question. 5. 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. 6. 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 guideline. Only the total for each question should appear in the left-hand margin next to the appropriate question number. 7. In an indirect question, the theory as well as the response must be relevant and related to the question. 8. Incorrect numbering of answers to questions or sub-questions in SECTIONS A and B will be severely penalised. Therefore, correct numbering is strongly recommended in all sections. 9. No additional credit must be given for repetition of facts. Indicate with an R. 10. Note that no marks will be awarded for indicating Yes/No in evaluation type questions requiring substantiation or motivation. (Applicable to SECTIONS B and C). Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 3 11. The difference 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 guidelines and the context of each question. Cognitive verbs, such as: 12.1 Advise, name, state, mention, 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 Describe, explain, discuss, elaborate, compare, distinguish, differentiate, justify, devise, 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. Copyright reserved Please turn over

Downloaded from hlayiso.com 4 BUSINESS STUDIES (EC/JUNE 2019) 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 and use the word ‘Cancel’. NOTE: This only applies 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 to come up with 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:  Fact 2 marks (or as indicated in the marking guideline)  Explanation 1 mark The ʽfact’ and ʽexplanation’ are given separately in the marking guidelines 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 Content Maximum: 32 Conclusion Insight 8 TOTAL 40 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 5 15.2 Insight consists of the following components: Layout/Structure Is there an introduction, body and a conclusion? 2 Analysis and Is the candidate able to break down the question into interpretation headings/sub-headings/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’) 2 Synthesis Are there relevant decisions/facts/responses made 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. 2 Originality Is there evidence of examples, recency of information, current trends and developments? 2 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 allocated 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’). Copyright reserved Please turn over

Downloaded from hlayiso.com 6 BUSINESS STUDIES (EC/JUNE 2019) 15.4 The breakdown of marks is indicated at the end of the suggested answer/ marking guidelines to each question. 15.5 Mark all relevant facts until the SUBMAX/MAX mark in a subsection has been attained. Write SUBMAX/MAX after maximum marks have been obtained. 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 sub-headings are encouraged and contribute to insight (structuring/logical flow/sequencing) and indicate clarity of thought. (See MARKS 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 memorandum. 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 guideline, will not necessarily apply to each question. This would also depend on the nature of the question. Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 7 SECTION A QUESTION 1 1.1 1.1.1 B √√ 1.1.2 A √√ 1.1.3 D √√ 1.1.4 C √√ 1.1.5 B √√ 1.1.6 B √√ 1.1.7 D √√ 1.1.8 A √√ 1.1.9 C √√ 1.1.10 B √√ (10 x 2) (20) 1.2 1.2.1 R500 000 √√ 1.2.2 leader √√ 1.2.3 bureaucratic√√ 1.2.4 Delphi √√ 1.2.5 performance appraisal √√ (5 x 2) (10) 1.3 1.3.1 F √√ 1.3.2 J √√ 1.3.3 E √√ 1.3.4 G √√ 1.3.5 H √√ (5 x 2) (10) TOTAL SECTION A: 40 BREAKDOWN OF MARKS QUESTION 1 MARKS 1.1 20 1.2 10 1.3 10 TOTAL 40 Copyright reserved Please turn over

Downloaded from hlayiso.com 8 BUSINESS STUDIES (EC/JUNE 2019) SECTION B Mark the FIRST THREE answers only. QUESTION 2: BUSINESS ENVIRONMENTS 2.1 PESTLE analysis model ‐ Political √ ‐ Economical √ ‐ Social √ ‐ Technological √ ‐ Legal √ ‐ Environmental √ NOTE: Mark the first SIX (6) only. (6 x 1) (6) 2.2 Consumer rights 2.2.1 Right to privacy/confidentiality √√ 2.2.2 Right to fair/just/reasonable terms/conditions/disclosure √√ 2.2.3 Right to return goods/have goods replaced/claim a refund/fair value/good quality and safe products √√ 2.2.4 Right to fair/honest dealings/responsible marketing/promotion √√ (4 x 2) (8) 2.3 Advantages of intensive strategies ‐ Increased market share√ reduces the business's vulnerability to actions of competitors.√ ‐ Increase in sales/income√ and profitability.√ ‐ Improved service delivery√ may improve business image.√ ‐ Businesses may have more control√ over the prices of products/services.√ ‐ Gain loyal customers√ through effective promotion campaigns.√ ‐ Decrease in prices√ may influence customers to buy more products.√ ‐ Regular sales to existing customers√ may increase.√ ‐ Eliminate competitors√ and dominate market prices.√ ‐ Enables the business to focus on markets/well researched quality products√ that satisfy the needs of customers.√ ‐ Any other relevant answer related to the advantages of intensive strategies. Max. (4) 2.4.1 Tertiary sector √ (1) Motivation Provide services to the consumers. √√ (2) NOTE: Do not award marks for the motivation if the sector is incorrectly identified. Max. (3) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 9 2.4.2 Purpose of the EEA ‐ This Act states that employees who do the same work (work of equal value) √ must be paid equally (equal pay). √ ‐ No discrimination √ on grounds of gender in the workplace. √ ‐ Promotes equal opportunity √ and fair treatment in the workplace. √ ‐ Protects employees from victimisation √ if they exercise the rights given to them by the EEA. √ ‐ Provides for employees to refer unresolved disputes √ to the CCMA. √ ‐ Any other relevant answer related to the purpose of the EEA. Max. (6) 2.4.3 Discriminatory actions by EEA ‐ Not employing a young woman because she will want to have children. √√ ‐ Refusing to employ a person because he/she has strong religious beliefs/has a disability. √√ ‐ Doing HIV testing unless justified by the Labour Court. √√ ‐ Denying people access to the workforce based on gender/race/culture/etc. and treating them unfairly. √√ ‐ Any other relevant actions that can be regarded as discriminatory by EEA. NOTE: Mark the first TWO (2) only. (Any 2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com 10 BUSINESS STUDIES (EC/JUNE 2019) 2.5 Distinction between BEE and BBBEE BLACK ECONOMIC BROAD BASED BLACK ECONOMIC EMPOWERMENT (BEE) EMPOWERMENT (BBBEE) ‐ It is a government policy √ which ‐ It is an Act √ that is enforced/must may not be enforced. √ be complied with by businesses. √ ‐ Benefits only a few previously ‐ Encourages a wider group of disadvantaged people √ in the previously disadvantaged economy. √ people/black women/people who are physically challenged/youth/people in rural areas √ to participate in the economy. √ ‐ Few previously disadvantaged ‐ Aims at distributing the country's individuals share in the wealth √ wealth √ across a broader of the economy. √ spectrum of society. √ ‐ Focuses only on three pillars √ ‐ Focuses on seven/five pillars √ that did not include all previously which include all sectors of the disadvantaged people. √ society, especially the previously disadvantaged. √ ‐ Any other relevant answer ‐ Any other relevant answer related related to BEE. to BBBEE. Sub-max. (4) Sub-max. (4) NOTE: 1. The answer does not have to be in tabular format, but the distinction must be clear. 2. Award a maximum of FOUR (4) marks if the distinction is not clear/Mark either BEE or BBBEE only. Max. (8) 2.6.1 Compensation for Occupational Injuries and Diseases Act, 1993 (Act 130 of1993)/Compensation for Occupational Injuries and Diseases Amendment Act, 1997 (Act 61 of 1997) √√ NOTE: Also accept COIDA/Compensation for Injuries and Diseases Act. (2) 2.6.2 Quotation ‐ Khaya was rushed to hospital without reporting the accident. √ ‐ Khaya had not been wearing his protective eye goggles despite having often been advised to do so. √ (1) NOTE: Mark the FIRST answer only. Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 11 2.6.3 Impact of COIDA on employers and employees Positives/Advantages ‐ Promotes safety √ in the workplace. √ ‐ Creates a framework √ for acceptable employment practices/safety regulations. √ ‐ Supply administrative guidelines/mechanisms √ for dealing with/processing claims. √ ‐ Eliminates time and costs spent √ on lengthy civil court proceedings. √ ‐ Employers are protected from financial burden should an accident occur in the workplace, √ provided that the employer was not negligent.√ ‐ Claiming processes √ are relatively simple. √ ‐ Makes businesses more socially responsible √ as they cannot just employ workers at random in dangerous working conditions. √ ‐ Workers are treated with dignity and respect √ as businesses view them as valuable assets and not just as workers. √ ‐ Covers all employees at the workplace, √ if both parties meet all the necessary safety provisions in the Act. √ ‐ Employees do not contribute √ towards this fund. √ ‐ Employees are compensated financially for any injury/disability √ resulting from performing their duties at their workplace. √ ‐ In the event of the death of an employee as a result of a work-related accident/ disease, √ his/her dependent(s) will receive financial support. √ ‐ Employees receive medical assistance √ provided there is no other medical assistance option. √/Cannot claim medical assistance from the fund and medical aid ‐ Any compensation to an employee/the family √ is exempt from income tax. √ ‐ Any other relevant answer related to the positive impact/advantages of COIDA on employers and employees. AND/OR Copyright reserved Please turn over

Downloaded from hlayiso.com 12 BUSINESS STUDIES (EC/JUNE 2019) Negatives/Disadvantages ‐ Claiming processes/procedures √ can be time-consuming. √ ‐ Processes/Procedures required by this Act may be costly, √ as paperwork places an extra administrative burden on businesses. √ ‐ Employers have to register all their workers/make annual contributions to COIDA, √ which may result in cash flow problems. √ ‐ Employers may be forced to pay heavy penalties, √ if they are found guilty of negligence/not enforcing safety measures. √ ‐ Workers who are temporarily/permanently employed in foreign countries √ are not covered. √ ‐ Domestic/Military workers √ are not covered/may not claim. √ ‐ Any other relevant answer related to the negative impact/disadvantages of COIDA on businesses. Max. (6) 2.7 Compliance to NCA ‐ Credit providers must be registered with the National Credit Regulator. √√ ‐ Businesses must submit an annual compliance report to the National Credit Regulator. √√ ‐ Conduct affordability assessment to ensure the consumer has the ability to meet his/her obligation. √√ ‐ Conduct a credit check with a registered credit bureau and could also consult the National Credit Register. √√ ‐ Credit providers must have procedures in place to comply with the provision of the Financial Intelligence Centre Act (FICA). √√ ‐ Verify the identity of clients, report suspicious transactions/train staff on their obligations in terms of FICA. √√ ‐ Any other relevant answer related to ways in which businesses should comply with the NCA. Max. (6) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 13 2.8 Positive impact of the Labour Relations Act (LRA), 1995 (Act 66 of 1995) on businesses Positives/Advantages ‐ LRA provides for the principles of collective bargaining √ and puts structures in place with which disputes in the workplace can be settled. √ ‐ Promotes a healthy relationship √ between the employer and employees. √ ‐ Provides specific guidelines for employers √ on correct and fair disciplinary procedures. √ ‐ Employers and employees have guidelines √ regarding correct and fair dismissal procedures. √ ‐ Provides mechanisms √ such as statutory councils/collective bargaining/CCMA.√ ‐ Labour disputes are settled quicker √ and are less expensive. √ ‐ Provides protection for employers √ who embark on lawful lock- outs. √ ‐ Employers are entitled to compensation from the Labour Court, √ if they suffered damages as a result of unprotected strikes. √ ‐ Workplace forums can add value to businesses √ if it functions properly. √ ‐ Any other relevant answer related to the positive impact/advantages of LRA on businesses. NOTE: Allocate a maximum of TWO (2) marks if the impact is only applicable to unions. Max. (6) Copyright reserved Please turn over

Downloaded from hlayiso.com 14 BUSINESS STUDIES (EC/JUNE 2019) BREAKDOWN OF MARKS QUESTION 2 MARKS 2.1 6 2.2 8 2.3 4 2.4.1 3 2.4.2 6 2.4.3 4 2.5 8 2.6.1 2 2.6.2 1 2.6.3 6 2.7 6 2.8 6 TOTAL 60 QUESTION 3: BUSINESS ROLES 3.1 Components of Corporate Social Responsibility (CSR) ‐ Environment √ ‐ Ethical corporate social investment √ ‐ Health and safety √ ‐ Corporate governance √ ‐ Business ethics √ ‐ Employment equity √ ‐ Supply chain/Distribution channel √ ‐ Customers √ ‐ Community √ ‐ Any other relevant answer related to the components of CSR. NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 3.2 Problem-solving techniques 3.2.1 Empty-chair technique √√ 3.2.2 Force-field analysis √√ 3.2.3 SCAMPER √√ 3.2.4 Brainstorming √√ (4 x 2) (8) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 15 3.3 Ways in which businesses could contribute to the wellbeing of their employees ‐ Pay fair wages/salaries to the workers √ based on the nature of their work/the prevailing economic conditions in the market. √ ‐ Working conditions should include safety/medical/canteen facilities/benefits √ like housing/leave/retirement, √ etc. ‐ Pay fair bonuses, √ based on business earnings, as acknowledgement for hard work and commitment.√ ‐ Provide for employees’ participation in decision-making √ that affects them. √ ‐ Provide recreational facilities √ for employees. √ ‐ Offer annual physical/medical assessments √ to workers. √ ‐ Make trauma debriefing/counselling/assistance available √ to any employee who requires these services.√ ‐ Offer financial assistance √ in the case of any hardship caused by unexpected medical costs. √ ‐ Allow flexible working hours, √ to enhance productivity.√ ‐ Offer support programmes for employees infected √ and affected by HIV/Aids. √ ‐ Make childcare facilities available √ on the premises for working mothers in the business. √ ‐ Start a nutritional programme √ so that employees can enjoy one good meal per day to keep them in a healthy condition. √ ‐ 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.√ ‐ Provide transport for employees √ who work unusually long hours.√ ‐ Establish coaching and mentoring programmes √ for junior employees.√ ‐ Conduct team-building sessions √ to improve employees’ morale.√ ‐ Encourage employees to attend capacity-building workshops/training programmes √/ staff-development programmes/team-development programmes. √ ‐ Any other relevant recommendations related to ways in which businesses could contribute to the wellbeing of their employees. Max. (4) 3.4 3.4.1 Quotation ‐ The local newspaper reported the possibility of liquidation resulting from the lack of management skills of the directors. √ ‐ The management of MFS denies these allegations. √ NOTE: Mark the first TWO (2) only. (2 x 1) (2) 3.4.2 King Code principle ‐ Transparency √√ ‐ Accountability √√ NOTE: Mark the first TWO (2) only. (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com 16 BUSINESS STUDIES (EC/JUNE 2019) 3.4.3 Application of transparency ‐ Regular audits should be done to determine the effectiveness of the business. √√ ‐ Auditing and other reports must be accurate / available to shareholders/employees. √√ ‐ Business deals should be conducted openly so that there is no hint/sign of dishonesty/ corruption. √√ ‐ Staffing and other processes should be open and transparent.√√ ‐ Employees/Shareholders/Directors should be aware of the employment policies of the business. √√ ‐ Any other relevant application of transparency as a King Code principle. Sub-max. (2) Application of accountability ‐ There must be regular communication between management and stakeholders like shareholders. √√ ‐ Company should appoint internal and external auditors to audit financial statements. √√ ‐ The board should ensure that the company's ethics are effectively implemented. √√ ‐ Any other relevant application of accountability as a King Code principle. Sub-max. (2) NOTE: 1. Award a maximum of TWO (2) marks if application is based on the examples of poor corporate governance quoted in QUESTION 3.4.1. 2. Award TWO (2) marks for the King Code principle identified in QUESTION 3.4.2, if the example of poor corporate governance was not directly quoted but based on the scenario. 3. The application in QUESTION 3.4.3 must link to the correct King Code principle in QUESTION 3.4.2. (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 17 3.5 Benefits/Advantages of creative thinking ‐ Better/Unique/Unconventional ideas/solutions √ are generated.√ ‐ May give the business a competitive advantage √ if unusual/unique solutions/ ideas/strategies are implemented. √ ‐ Complex business problems √ may be solved.√ ‐ Productivity increases √ as management/employees may quickly generate multiple ideas which utilises time and money more effectively.√ ‐ Managers/Employees have more confidence √ as they can live up to their full potential.√ ‐ Managers will be better leaders √ as they will be able to handle/manage change(s) positively and creatively.√ ‐ Managers/Employees can develop a completely new outlook, √ which may be applied to any task(s) they may do.√ ‐ Leads to more positive attitudes √ as managers/employees feel that they have contributed towards problem-solving. √ ‐ Improves motivation √ amongst staff members. √ ‐ Managers/Employees have a feeling of great accomplishment √ and they will not resist/obstruct the process once they solved a problem/contributed towards the success of the business. √ ‐ Management/employees may keep up √ with fast changing technology. √ ‐ Stimulates initiative from employees/managers, √ as they are continuously pushed out of their comfort zone. √ ‐ Creativity may lead to new inventions √ which improves the general standard of living.√ ‐ Any other relevant answer related to the advantages of creative thinking in the workplace. Max. (6) Copyright reserved Please turn over

Downloaded from hlayiso.com 18 BUSINESS STUDIES (EC/JUNE 2019) 3.6 Procedure for dealing with grievances in the workplace - An aggrieved employee must verbally report the incident/grievance to his/her supervisor/manager, √ 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/meeting √ must be held with all relevant parties present. √ ‐ 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, √ then he/she could refer the matter to the highest level of management. √ - Top management should organise a meeting with all relevant parties. - Minutes of this meeting should be filed/recorded √ and the outcome/decision must be recorded on the formal grievance form. √ - Should the employee still not be satisfied, he/she may refer the matter to the CCMA, √ who will make a final decision on the matter. √ - Any other relevant answer related to the correct procedure to deal with grievances in the workplace. NOTE: The procedure may be in any order. Max. (8) 3.7 3.7.1 Responsibilities of workers in promoting human health and safety in the workplace - Must take care of their own health √ and safety in the workplace. √ - Co-operate and comply with the rules and procedures √ e.g. wear prescribed safety clothing. √ - Report unsafe √ or unhealthy conditions. √ - Report accidents √ to the employer by the end of the shift. √ - Use prescribed √ safety equipment. √ - Take reasonable care√ of their own safety. √ - Inform the employer of any illness √ that may affect the ability to work. √ - Any other relevant answer related to the responsibilities of employees in protecting the workplace environment. Max. (4) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 19 3.7.2 Roles of the health and safety representative in the workplace ‐ Investigate incidents/complaints √ from workers about health and safety. √ ‐ Responsible for checking √ the effectiveness of the business’s health and safety measures. √ ‐ Identify the potential dangers √ in the workplace. √ ‐ Initiate/Promote/Maintain/Review measures √ for ensuring the health and safety of the workers. √ ‐ Attend to any formal inquiry/investigation √ into an accident/health related incident in the workplace. √ ‐ Ensure that protective clothing √ is provided/available to all workers.√ ‐ Ensure that all equipment that is necessary to perform work √ are provided/maintained regularly. √ ‐ Promote safety training √ so that employees may avoid potential dangers/act pro-actively. √ ‐ Ensure that dangerous equipment is used √ under the supervision of trained/qualified workers.√ ‐ Ensure that workers’ health and safety is not endangered √ by hazards resulting from production/processing/ storage/transportation of material/equipment.√ ‐ Co-operate with the employer to investigate any accidents/complaints from the workers √ concerning health and safety in the workplace. √ ‐ Ensure that employers comply √ with COIDA. √ ‐ Any other relevant answer related to the roles of health and safety representatives in the workplace. Max. (8) Copyright reserved Please turn over

Downloaded from hlayiso.com 20 BUSINESS STUDIES (EC/JUNE 2019) 3.7.3 Ways in which businesses can protect the environment and human health ‐ Adhere to laws/regulations so that profits are not generated at the expense of the environment. √√ ‐ Consider pollution/other environmental issues in all business activities, e.g. safe disposal of waste/dumping of toxic waste, √√ etc. ‐ Become involved in environmental awareness programs. √√ ‐ Businesses protects the environment by altering production techniques in favour of cleaner and greener technologies. √√ ‐ Water for human consumption is tested before it is used. √√ ‐ Promote nature conservation by looking after natural resources. √√ ‐ Minimise pollution by re-using/reducing/recycling. √√ ‐ Reduce consumption of goods/services which are environmentally unfriendly. √√ ‐ Register/Engage with recognised institutions/bodies that promote green peace. √√ ‐ Ensure that physical working conditions are worker friendly/safe/adequate/ functional/promoting occupational health. √√ ‐ Maintain/Service machines regularly. √√ ‐ Educate people about hygiene/health issues. √√ ‐ Encourage employees to do regular health checks. √√ ‐ Any other relevant answer related to ways in which businesses can protect the environment and human health. NOTE: Mark the first TWO (2) only. (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 21 3.8 Ways in which businesses could promote social rights in the workplace ‐ Business should ensure that employees have access to clean water/social security. √√ ‐ Encourage employees/Provide opportunities for skills training/basic education. √√ ‐ Register workers with UIF to provide adequate protection in the event of unemployment/illness. √√ ‐ Encourage employees to participate in special events, e.g. World Aids Day. √√ ‐ Provide health care services by establishing site clinics to give employees access to basic medical examinations. √√ ‐ Any other relevant answer related to the ways in which businesses could promote social rights in the workplace. NOTE: Do not accept ways that promote human and/or economic rights. Max. (4) BREAKDOWN OF MARKS QUESTION 3 MARKS 3.1 4 3.2 8 3.3 4 3.4.1 2 3.4.2 4 3.4.3 4 3.5 6 3.6 8 3.7.1 4 3.7.2 8 3.7.3 4 3.8 4 TOTAL 60 QUESTION 4: BUSINESS OPERATIONS 4.1 Examples of fringe benefits - Medical Aid Fund/Health Insurance Fund √ - Pension Fund √ - Provident Fund √ - Funeral benefits √ - Car/Travel/Housing/Cellphone/Clothing allowance √ - Performance based incentives √ - Issuing of bonus shares √ - Staff discount/Free or low cost meal/Canteen facilities √ - Any other relevant example related to fringe benefits in the workplace. NOTE: Mark the first FOUR (4) only. (4 x 1) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com 22 BUSINESS STUDIES (EC/JUNE 2019) 4.2 Purpose of the interview ‐ To determine a candidate is suitability√ for the job. √ ‐ Match the information given by the applicant √ with the requirements of the job. √ ‐ To get more information √ from the applicant. √ ‐ Evaluate the personal/skills characteristics √ of the applicant. √ ‐ Provides the applicant with the opportunity to find out more about the job/working conditions/salary √ and the business. √ ‐ Any other relevant answer related to the purpose of an interview. Max. (6) 4.3 4.3.1 JOB DESCRIPTION JOB SPECIFICATION ‐ Report writing √ ‐ Grade 12 Certificate √ ‐ Verbal and written ‐ Excellent computer skills √ communications √ ‐ Willing to work extra hours √ ‐ Time management √ Sub-max. (2) Sub-max. (2) NOTE: Mark the first TWO (2) of each only. (2 x 2) (4) 4.3.2 External recruitment √√ (2) 4.3.3 Sources of external recruitment ‐ Electronic media, e.g. radio/TV √ ‐ Social media/Social networks/Internet/Business websites √ ‐ Recruitment agencies √ - Walk-ins √ - Head-hunting √ - Professional associations √ - Networking √ - Educational/Training institutions √ - Posters/Bill boards just outside the business √ ‐ Any other relevant answer related to the sources of external recruitment. NOTE: Mark the first TWO (2) only. (2 x 1) (2) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 23 4.3.4 Placement procedure ‐ HGL should outline the specific responsibilities of the new position, √ including the expectations/skills required for this position.√ ‐ Determine the successful candidate’s strengths/weaknesses/interests/skills √ by subjecting him/her to a range of psychometric tests.√ ‐ Determine the relationship between the position √ and the competencies of the new candidate.√ ‐ Any other relevant answer related to the placement procedure. Max. (6) 4.4 Implication of the Skills Development Act (SDA) on the Human Resources function ‐ The human resources function should interpret the aims and requirements of the SDA √ and adapt workplace skills training programmes accordingly.√ ‐ Identify the training needs of the employees √ and provide them with training opportunities so that they will perform their tasks efficiently.√ ‐ Use the National Qualification Framework/NQF √ to assess the skills levels of employees.√ ‐ Interpret/Implement the aims/requirements of the framework √ for the National Skills Development Strategy.√ ‐ Assist managers in identifying skills/training needs √ to help them to introduce learnerships.√ ‐ Businesses should contribute 1% of their salary bill √ to the Skills Development Levy/SDL.√ ‐ Ensure training in the workplace √ is formalised /structured.√ ‐ Appoint a full/part time consultant √ as a Skills Development Facilitator.√ ‐ Any other relevant answer related to the implications of the Skills Development Act on the Human Resources function. Max. (8) 4.5 Business functions 4.5.1 Administrative √√ 4.5.2 Production √√ 4.5.3 Purchasing √√ 4.5.4 Human resources √√ (4 x 2) (8) Copyright reserved Please turn over

Downloaded from hlayiso.com 24 BUSINESS STUDIES (EC/JUNE 2019) 4.6 Advantages of total client satisfaction for large businesses ‐ Large businesses use market research √ to measure/monitor customer satisfaction/ analyse customer needs.√ ‐ Continuously promote √ a positive business image.√ ‐ May achieve a state of total customer satisfaction, if they follow sound business practices √ that incorporate all stakeholders.√ ‐ Ensure that cross functional teams understand their core competencies√ and they develop and strengthen them. √ ‐ May keep more customers/Higher customer loyalty √ which makes it possible to charge higher prices.√ ‐ May be able to gain access √ to the global market. √ ‐ May lead to increased √ competitiveness/profitability. √ ‐ Any other relevant answer related to the advantages of total client satisfaction on large businesses. Max. (8) 4.7 Differences between quality performance and quality management QUALITY OF PERFORMANCE QUALITY MANGEMENT ‐ Total performance of each ‐ It is a technique/tool √ used to department measured √ against design/improve the quality of a specified standards. √ product.√ ‐ Can be obtained if all ‐ Can be used for accountability √ departments work together √ within each of the business towards the same quality functions. √ standards. √ ‐ Quality is measured √ through ‐ Aims to ensure that the quality of physical product/statistical output goods/service√ is of processes/surveys of users consistent./Focus on the means and/or buyers of √ to achieve consistency. √ goods/services.√ ‐ Any other relevant answer ‐ Any other relevant answer related to quality performance. related to quality management. Sub-max. (4) Sub-max. (4) NOTE: 1. The answer does not have to be in tabular format, but the differences must be clear. 2. Award a maximum of FOUR (4) if the difference is not clear/Mark either quality performance or quality management. Max. (8) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 25 4.8 Ways in which businesses could improve the quality of performance within the human resource function ‐ Appoint right person where his or her abilities, skills and initiative can benefit the business. √√ ‐ Employees are the key element in assuring quality, implementing processes and systems, building and maintaining standards. √√ ‐ On-going training and staff development is of a high standard.√√ ‐ Incentivise employees to increase morale and productivity. √√ ‐ Employees are positive about the business through motivation and job satisfaction. √√ ‐ Employees stay at the business for a long time due to the implementation of performance management systems. √√ ‐ Adherence to policies to ensure the safety of employees and quality of the product. √√ ‐ Any other relevant answer related to the ways in which businesses could improve the quality of performance within the human resource function. Max. (4) BREAKDOWN OF MARKS QUESTION 4 MARKS 4.1 4 4.2 6 4.3.1 4 4.3.2 2 4.3.3 2 4.3.4 6 4.4 8 4.5 8 4.6 8 4.7 8 4.8 4 TOTAL 60 Copyright reserved Please turn over

Downloaded from hlayiso.com 26 BUSINESS STUDIES (EC/JUNE 2019) QUESTION 5: MISCELLANEOUS TOPICS BUSINESS ENVIRONMENTS 5.1 BCEA provision for leave 5.1.1 Sick √√ 5.1.2 Annual √√ 5.1.3 Maternity √√ 5.1.4 Family responsibility √√ (4 x 2) (8) 5.2 Porter’s Five Forces 5.2.1 Competitive rivalry/Power of competitors ‐ Competitors are businesses √ selling the same/similar products or rendering the same/similar services.√ ‐ If the competitors have unique products/services √ they have greater power.√ ‐ The business must draw up a competitor's profile of each similar business in the area√ to determine its strength √/Business should determine how many competitors there are √ and how influential they are in the market.√ ‐ If a business has many competitors with similar products, √ the business will have very little power in the market.√ ‐ Some businesses have the necessary resources to start price wars √ and continue selling at a loss until some/all competitors leave the market.√ ‐ Any other relevant answer related to competitive rivalry as one of Porter’s Five Force. Max. (4) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 27 5.2.2 Power of buyers ‐ Buyers are the final users √ of products/services.√ ‐ Business must assess how easy it is for its buyers/customers √ to drive prices down.√ ‐ This will depend on the number of buyers/the importance of each buyer to the business √ and the cost of switching to other products.√ ‐ A few powerful buyers √ are often able to dictate terms to the business.√ ‐ If customers can do without the business’ products, √ they may have more power to determine the prices and terms of sale.√ ‐ Businesses should conduct market research √ to gather more information about its buyers.√ ‐ Any other relevant answer related to the power of buyers as a Porter’s Five Force. Max. (4) BUSINESS VENTURES 5.3 Leadership style 5.3.1 Laissez-faire/Free reign √√ (2) 5.3.2 Reasons to why employees may prefer a laissez-faire leadership style ‐ Employees take decisions, √ especially when they are experienced within the framework of the business policy.√ ‐ Leader delegates authority to subordinates√ and becomes involved only on request.√ ‐ The leader is responsible √ and accountable for the employees’ decisions and actions.√ ‐ Employees are left on their own √ with minimal interference. √ ‐ This may lead to frustration on the part of employees √ when they lack experience or have not earned the trust of the leader.√ ‐ Subordinates are experts √ and know what they want/can take responsibility for their actions.√ ‐ It can be empowering for competent followers √ as they are completely trusted to do their job.√ ‐ Any other relevant answer related to the reasons why employees may prefer the laissez-faire/free reign leadership style. Max. (6) Copyright reserved Please turn over

Downloaded from hlayiso.com 28 BUSINESS STUDIES (EC/JUNE 2019) 5.3.3 Application of laissez-faire leadership style ‐ Subordinates are experts and know what they want/can take responsibility for their actions. √√ ‐ The leader is very busy, and delegation of tasks will increase productivity. √√ ‐ Team members need to improve/develop leadership skills.√√ ‐ Suitable when employees are highly experienced and know more about the task than the leader. √√ ‐ Any other relevant answer related to a situation in which laissez- faire/free-reign leadership style may be applied in the workplace. Max. (6) BUSINESS ROLES 5.4 Economic rights of employees ‐ No forced labour √ ‐ Free to accept/choose a job √ ‐ Fair salaries and wages/Equal pay √ ‐ Fair/Reasonable working hours √ ‐ Safe and healthy working conditions √ ‐ Right to form/belong to a trade union √ ‐ Right to participate in a legal strike √ ‐ Any other relevant answer related to the economic rights of employees. NOTE: 1. Mark the first FOUR (4) only. 2. Do not allocate marks for human and/or social rights. (4 x 1) (4) 5.5 Differences between decision making and problem solving DECISION MAKING PROBLEM SOLVING ‐ It is often done by one person/a ‐ Problems can be solved by a member of senior group/team √ or an individual team management √ which makes it member.√ authoritarian. √ ‐ Alternative solutions are ‐ Various alternatives are generated/ identified √ and critically considered √ before deciding evaluated. on the best one.√ ‐ Process of analysing a situation √ ‐ It is part of the problem-solving to identify strategies to bring about cycle √ as decisions need to be change.√ taken in each step.√ ‐ Any other relevant answer related ‐ Any other relevant answer to problem-solving. related to decision making. Sub-max. (2) Sub-max. (2) NOTE: 1. The answer does not have to be in tabular format, but the distinction must be clear. 2. If the distinction is not clear, award a maximum of TWO (2) marks/Mark either decision-making or problem-solving only. Max. (4) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 29 5.6 Strategies that businesses may use to manage the following socio- economic issues 5.6.1 Unemployment ‐ Encourage growth by keeping interest rates low√ for funds available to start own businesses.√ ‐ Encourage entrepreneurship√ that can promote self- employment. √ ‐ Offer bursaries to the community√ to improve the level of education. √ ‐ Make courses available for entrepreneurs√ to learn business skills. √ ‐ Reduce number of hours worked√ and increase shift work. √ ‐ Train unemployed in the skills√ that are needed. √ ‐ Encourage businesses to run training√ and apprentice programmes. √ ‐ Support existing small businesses√ to create more employment. √ ‐ Any other relevant strategy that businesses may use to manage unemployment as a socio-economic issue. NOTE: Mark the first TWO (2) only. (2 x 2) (4) 5.6.2 HIV/Aids ‐ Develop counselling programmes√ for infected/affected persons/employees. √ ‐ Conduct workshops√ on HIV/Aids programmes/campaigns. √ ‐ Roll out anti-retroviral (ARV) treatment programmes (ART) √ for the infected employees. √ ‐ Encourage employees√ to join HIV/Aids support groups. √ ‐ Develop strategies√ to deal with stigma and discrimination. √ ‐ Participate in the HIV/Aids prevention programmes√ implemented in the community. √ ‐ Support√ non-governmental organisational/community based organisation/NPC HIV/Aids initiatives. √ ‐ Any other relevant strategies that businesses may use to manage HIV/Aids as a socio-economic issue. NOTE: Mark the first TWO (2) only. (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com 30 BUSINESS STUDIES (EC/JUNE 2019) BUSINESS OPERATIONS 5.7.1 Employment contract ‐ It is a legally binding/written √ agreement between the employer and the employee.√ ‐ The employment contract states various terms and procedures √ etc. regarding his/her conditions of service and code of conduct.√ ‐ Any other relevant definition/explanation of the employment contract. Max. (2) 5.7.2 Termination of a contract ‐ Employee resigns voluntarily. √√ ‐ Employer terminates/dismisses the employee due to misconduct. √√ ‐ Employer has no work for the employee any longer/business is closing down. √√ ‐ Employee reaches the retirement age as stipulated in the contract. √√ ‐ If the employee dies. √√ ‐ By mutual agreement between the employer and employee.√√ ‐ Any other relevant answer related to the reasons for terminating an employment contract. NOTE: 1. Mark the first THREE (3) only. 2. Award a maximum of TWO (2) marks for examples that illustrate the same fact. (3 x 2) (6) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 31 5.8 Importance of quality circles in TQM ‐ Solve problems related to quality and implement improvements. √√ ‐ Investigate problems and suggest solutions to management. √√ ‐ Ensure that there is no duplication of activities/tasks in the workplace. √√ ‐ Make suggestions for improving systems and processes in the workplace. √√ ‐ Improve the quality of products/services/productivity through regular reviews of quality processes. √√ ‐ Monitor/Reinforce strategies to improve the smooth running of a business’ operations. √√ ‐ Reduce costs of redundancy in the long run. √√ ‐ Increase employees’ morale/motivation. √√ ‐ Quality circles discuss ways of improving the quality of work/workmanship. √√ ‐ Contribute towards the improvement and development of the organisation. √√ ‐ Reduce costs/wasteful efforts in the long run. √√ ‐ Increase the demand for products/services of the business. √√ ‐ Create harmony and high performance in the workplace. √√ ‐ Build a healthy workplace relationship between the employer and employee. √√ ‐ Improve employees’ loyalty and commitment to the business and its goals. √√ ‐ Improve employees’ communication at all levels of the business. √√ ‐ Develop a positive attitude/sense of involvement in decision making processes of the services offered. √√ ‐ Any other relevant answer related to the importance of quality circles in TQM. Max. (6) BREAKDOWN OF MARKS QUESTION 5 MARKS 5.1 8 5.2 8 5.3.1 2 5.3.2 6 5.3.3 6 5.4 4 5.5 4 5.6 8 5.7.1 2 5.7.2 6 5.8 6 TOTAL 60 Copyright reserved Please turn over

Downloaded from hlayiso.com 32 BUSINESS STUDIES (EC/JUNE 2019) SECTION C QUESTION 6: BUSINESS ENVIRONMENTS (STRATEGIES) 6.1 Introduction ‐ SWOT analysis is used to identify and evaluate the factors in the internal and external environment that can influence the business. √ ‐ Businesses must devise strategies to address the identified challenges.√ ‐ SWOT analysis assesses how a strategy can be best implemented. √ ‐ The aim of strategy evaluation is to determine whether the chosen strategy will resolve the identified challenge.√ ‐ Any other relevant introduction related to applying the SWOT analysis, defensive strategies and strategy evaluation. (Any 2 x 1) (2) 6.2 SWOT analysis STRENGTH WEAKNESS ‐ Highly skilled workers √√ ‐ Decline in sales √√ Sub-max. (2) Sub-max. (2) OPPORTUNITY THREAT ‐ Franchise opportunity √√ ‐ Theft and burglaries Sub-max. (2) Sub-max. (2) Max. (8) 6.3 Strategies to handle weakness and threat WEAKNESS RECOMMENDATIONS Decline in sales ‐ Do regular promotions and discounts. √√ ‐ Improve customer service.√√ ‐ Improve packaging/branding/trademarks.√√ ‐ Know your competitor and draw up competitor’s profile.√√ ‐ Any other relevant strategy which can address weakness in sales decline. Sub-max. (6) THREAT RECOMMENDATIONS Theft and ‐ SEL should install security systems/hire more burglaries security to safeguard the business.√√ ‐ Engage in CSR/CSI programmes that are aimed at reducing crime in the community.√√ ‐ Relocate the business to other areas where the crime rate is minimal.√√ ‐ Provide employment opportunities for local people/the community.√√ ‐ Any other relevant strategy which can address threats and burglary. Sub-max. (6) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 33 NOTE: 1. Do not award marks for strategies that are not linked to the identified threat or weakness. 2. Do not award marks for the weakness/threat. Max. (12) 6.4 Defensive strategies Divestiture √√ ‐ The business disposes/sells some assets/divisions √ that are no longer profitable/ productive.√ ‐ Businesses may sell off divisions/product lines√ with slow growth potential.√ ‐ The business sells ownership √ by reducing the number of shareholders ‐ Unproductive assets are sold √ to pay off debts/reduce operational costs. √ ‐ Process used to withdraw its investment √ in another business.√ ‐ Aims at acquiring √ additional capital. √ ‐ Any other relevant answer related to divestiture as a defensive strategy. Strategy (2) Explanation (4) Sub-max. (6) NOTE: Accept divestment/disinvestment/unbundling as an alternative answer. Liquidation √√ ‐ All assets are sold to pay creditors √ due to a lack of capital/cash flow.√ ‐ Selling the entire business √ in order to pay all liabilities/close down the business.√ ‐ Creditors may apply for forced liquidation √ in order to have their claims settled.√ ‐ Companies in financial difficulty may apply for business rescue √ to avoid liquidation.√ ‐ Any other relevant answer related to liquidation as a defensive strategy. Strategy (2) Explanation (4) Sub-max. (6) Copyright reserved Please turn over

Downloaded from hlayiso.com 34 BUSINESS STUDIES (EC/JUNE 2019) Retrenchment √√ ‐ Terminating the employment contracts of employees √ for operational reasons. √ ‐ Decreasing the number of product lines/Closing certain departments √ may result in some workers becoming redundant.√ ‐ Any other relevant answer related to retrenchment as a defensive strategy. Strategy (2) Explanation (4) Sub-max. (6) NOTE: Mark the first THREE (3) responses as they may include incorrect defensive strategies. Strategies (6) Explanation (12) Max. (18) 6.5 Evaluation strategies ‐ Examine the underlying basis of a business strategy. √√ ‐ Formulate strategies to meet objectives favourably. √√ ‐ Implement strategies using action plans, √√ etc. ‐ Look forward and backwards into the implementation process. √√ ‐ Compare the expected performance with the actual performance. √√ ‐ Measure business performance in order to determine the reasons for deviations and analyse these reasons. √√ ‐ Take corrective action so that deviations may be corrected. √√ ‐ Set specific dates for control and follow up. √√ ‐ Draw up a table of the advantages and disadvantages of a strategy. √√ ‐ Decide on the desired outcome. √√ ‐ Consider the impact of the strategic implementation in the internal and external environments of the business. √√ ‐ Any other relevant answer related to the steps in strategy evaluation. NOTE: Accept steps in any order. Max. (8) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 35 6.6 Conclusion ‐ SWOT analysis requires the combination of quantitative and qualitative information to improve the business level of planning, policy making and enhance decision making. √√ ‐ SWOT analysis also improves communication and helps to co-ordinate business operations. √√ ‐ Businesses must continuously evaluate the effectiveness of the implemented strategies. √√ ‐ Any other relevant conclusion related to the SWOT analysis, defensive strategies and strategy evaluation. (Any 1 x 2) (2) [40] QUESTION 6: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 SWOT analysis 8 Max Handling of weakness and threat 12 32 Defensive strategies 18 Evaluation strategy 8 Conclusion 2 INSIGHT Layout 2 Analysis/Interpretation 2 Synthesis 2 8 Originality/Examples 2 TOTAL MARKS 40 LASO–For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if some requirements are met. Allocate 0 marks where requirements are not met at all. QUESTION 7: BUSINESS ROLES (TEAM PERFORMANCE AND CONFLICT MANAGEMENT) 7.1 Introduction ‐ Teamwork refers to a number of people collaborating/working together effectively in order to reach a common goal. √ ‐ Successful teams go through different stages of team development in order to become successful/effective. √ ‐ Managers should be well conversant with the causes of conflict in order to develop relevant strategies on how to deal with conflict in the workplace.√ ‐ Poor conflict management may lead to team failure or the dissolution of a team. √ ‐ Any other relevant introduction related to team performance and conflict in the workplace. (Any 2 x 1) (2) Copyright reserved Please turn over

Downloaded from hlayiso.com 36 BUSINESS STUDIES (EC/JUNE 2019) 7.2 Stages of team development Forming stage √√ ‐ Individuals gather information/impressions about each other and the scope of the task/how to approach it. √ ‐ This is a comfortable stage to be in. √ ‐ People focus on being busy with routines, such as team organisation, e.g. who does what/when to meet each other, √ etc. ‐ Any other relevant answer related to the forming stage of team development. Name (2) Explanation (2) Sub-max. (4) Storming stage √√ ‐ Teams go through a period of unease/conflict after formation. √ ‐ Different ideas from team members will compete for consideration. √ ‐ Team members open up to each other and confront each other's ideas/ perspectives. √ ‐ Tension/Struggle/Arguments occur and upset team members/There may be power struggles for the position of the team leader. √ ‐ In some instances storming can be resolved quickly, in others, the team never leaves this stage. √ ‐ Many teams fail during this stage as they are not focused on their task.√ ‐ This phase can become destructive to the team/will lower motivation if allowed to get out of control. √ ‐ This stage is necessary/important for the growth of the team.√ ‐ Some team members tolerate each other to survive this stage.√ ‐ Any other relevant answer related to the storming stage of team development. Name (2) Explanation (2) Sub-max. (4) Norming stage/Settling and reconciliation √√ ‐ Team members form agreement and consensus. √ ‐ Roles and responsibilities are clear and accepted. √ ‐ Processes, working style and respect develop. √ ‐ Team members have the ambition to work for the success of the team’s goals. √ ‐ Conflict may occur, but commitment and unity are strong. √ ‐ Any other relevant answer related to the norming/settling and reconciliation stage of team development. Name (2) Explanation (2) Sub-max. (4) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 37 Performing stage/Working as a team towards a goal √√ ‐ Team members are aware of strategies/aims of the team. √ ‐ They have direction without interference from the leader. √ ‐ Processes and structures are set. √ ‐ Leaders delegate and oversee the processes and procedures.√ ‐ All members are now competent, autonomous and able to handle the decision-making process without supervision. √ ‐ Differences among members are appreciated and used to enhance the team's performance. √ ‐ Any other relevant answer related to the performing/working as a team towards a goal stage of team development. Name (2) Explanation (2) Sub-max. (4) Adjourning/Mourning stage √√ ‐ The focus is on the completion of the task/ending the project. √ ‐ Breaking up the team may be traumatic as team members may find it difficult to perform as individuals once again. √ ‐ All tasks need to be completed before the team finally dissolves. √ ‐ Any other relevant answer related to the adjourning/mourning stage of team development. Name (2) Explanation (2) Sub-max. (4) NOTE: Mark the first FOUR (4) stages only. Identification (8) Explanation (8) Max. (16) 7.3 The characteristics of successful teams ‐ Successful teams share a common goal √ as team members are part of the process of setting goals for the group. √ ‐ Share a set of team values √ and implement group decisions. √ ‐ Teams value the contributions of individual members√ and reach consensus on differences. √ ‐ There is a climate of respect/trust √ and honesty. √ ‐ Team members enjoy open communication√ and deal immediately with conflict. √ ‐ Teams are accountable √ and members know the time frame for achieving their goals.√ ‐ Teams pay attention to the needs √ of the individual team members. √ ‐ Successful teams have sound √ intra-team relations. √ ‐ Creates opportunities where team members can develop, √ so that they learn from the experience of working in a team. √ ‐ Regular reviews of team processes and progress√ may help to detect/solve problems sooner. √ ‐ Balance the necessary skills/knowledge/experience/expertise √ to achieve team objectives. √ ‐ Any other relevant answer related to the characteristics of successful teams. Max. (10) Copyright reserved Please turn over

Downloaded from hlayiso.com 38 BUSINESS STUDIES (EC/JUNE 2019) 7.4. Causes of conflict in the workplace ‐ Lack of proper communication √ between management and workers.√ ‐ Ignoring of rules/procedures √ may result in disagreements and conflict.√ ‐ Management and/or workers √ may have different personalities/ backgrounds. √ ‐ Different values/levels of knowledge/skills/experience √ of managers/workers. √ ‐ Little/no co-operation √ between internal and/or external parties/stakeholders. √ ‐ Lack of recognition for good work, √ e.g. a manager may not show appreciation for extra hours worked to meet deadlines.√ ‐ Lack of employee development √ may increase frustration levels as workers may repeat errors due to a lack of knowledge/skills.√ ‐ Unfair disciplinary procedures, √ e.g. favouritism/nepotism.√ ‐ Little/no support from management √ with regard to supplying the necessary resources.√ ‐ Leadership styles used, √ e.g. autocratic managers may not consider workers’ inputs. √ ‐ Unrealistic deadlines/Heavy workloads √ lead to stress resulting in conflict.√ ‐ Lack of agreement on mutual matters, √ e.g. remuneration/working hours. √ ‐ Unhealthy competition/Inter-team rivalry √ may cause workers to lose focus on team targets. √ ‐ Lack of commitment √ which may lead to an inability to meet pre-set targets. √ ‐ Any other relevant answer related to the causes of conflict in the workplace. Max. (10) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 39 7.5 Handling of conflict in the workplace ‐ Acknowledge that there is conflict in the workplace. √√ ‐ Identify the causes of the conflict. √√ ‐ Pre-negotiations may be arranged where workers/complainants will be allowed to state their case/views separately. √√ ‐ A place and time is arranged for negotiations where all employees involved are present. √√ ‐ Arrange a meeting between conflicting employers/employees. √√ ‐ Make the intentions of the intervention clear so that parties involved may feel at ease. √√ ‐ Each party has the opportunity to express his/her own opinions/feelings/ Conflicting parties may recognise that their views are different. √√ ‐ Analyse the cause(s) of conflict by breaking it down into different parts/Evaluate the situation objectively. √√ ‐ Blame-shifting should be avoided and a joint effort should be made. √√ ‐ Direct conflicting parties towards finding/focusing on solutions. √√ ‐ Devise/Brainstorm possible ways of resolving the conflict. √√ ‐ Conflicting parties agree on criteria to evaluate the alternatives. √√ ‐ The best possible solution(s) is/are selected and implemented. √√ ‐ Parties must agree to the best solutions. √√ ‐ Evaluate/Follow up on the implementation of the solution(s). √√ ‐ Monitor progress to ensure that the conflict has been resolved. √√ ‐ Expertise on handling conflict may be sourced from outside the business. √√ ‐ Any other relevant answer related to how businesses should handle conflict in the workplace. Max. (10) 7.6 Conclusion ‐ The success of a business depends on the successful collaboration within a team to ensure that the objectives of the business will be met. √√ ‐ Conflict cannot always be resolved/avoided/eliminated, therefore people need to learn how to manage conflict within a team in order to work in harmony. √√ ‐ Any other relevant conclusion related to team performance and conflict management. (Any 1 x 2) (2) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com 40 BUSINESS STUDIES (EC/JUNE 2019) QUESTION 7: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Stages of team development 16 Characteristics of successful 10 teams Max. Causes of conflict in the 10 32 workplace Handling of conflict in the 10 workplace Conclusion 2 INSIGHT Layout 2 Analysis/Interpretation 2 8 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO–For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if some requirements are met. Allocate 0 marks where requirements are not met at all. Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 41 QUESTION 8: BUSINESS OPERATIONS (QUALITY MANAGEMENT) 8.1 Introduction ‐ Quality management should not just be an inspection process, but must become part of the culture of the business. √ ‐ TQM is an integrated system and methodology applied throughout the business to design, produce and provide quality products/quality service to customers. √ ‐ Total quality relates to products that totally satisfy customers’ needs and expectations in every aspect on a continuous basis. √ ‐ Everyone employed in a business has a role to play in ensuring that the needs of customers are satisfied.√ ‐ Any other relevant introduction related to a quality management system. (Any 2 x 1) (2) 8.2 The benefits of a good quality management system ‐ Effective customer services are rendered, √ resulting in increased customer satisfaction. √ ‐ Time and resources √ are used efficiently. √ ‐ Productivity increases √ through proper time management/using high quality resources. √ ‐ Products/Services are constantly improved √ resulting in increased levels of customer satisfaction. √ ‐ Vision/Mission/Business goals √ may be easily achieved. √ ‐ Business has a competitive advantage √ over its competitors. √ ‐ Regular training will continuously improve √ the quality of employees' skills/knowledge. √ ‐ Employers and employees will have a healthy working relationship √ resulting in happy/productive workers. √ ‐ Increased market share √ and profitability. √ ‐ Any other relevant answer related to the benefits of good quality management systems. Max. (10) Copyright reserved Please turn over

Downloaded from hlayiso.com 42 BUSINESS STUDIES (EC/JUNE 2019) 8.3 Reduction of cost of quality through TQM ‐ Introduce quality circles/small teams of five to ten employees, √ who meet regularly to discuss ways of improving the quality of their work.√ ‐ Schedule activities to eliminate √ duplication of tasks/activities.√ ‐ Share responsibility for quality output√ between management and workers. √ ‐ Train employees at all levels, √ so that everyone understands their role in quality management. √ ‐ Develop work systems that empower employees√ to find new ways of improving quality. √ ‐ Work closely with suppliers √ to improve the quality of raw materials/inputs. √ ‐ Improve communication about the quality challenges/deviations, √ so that everyone can learn from past experiences. √ ‐ Reduce investment √ on expensive, but ineffective inspection procedures in the production process.√ ‐ Implement pro-active maintenance programmes for equipment/machinery √ to reduce/eliminate breakdowns. √ ‐ Any other relevant answer related to ways in which a business can reduce the cost of quality through TQM. Max. (10) 8.4 Impact on business if TQM is poorly implemented ‐ Lack of training/skills development √ may lead to poor quality products. √ ‐ Decline in sales, √ as returns from unhappy customer's increase. √ ‐ Decline in productivity, √ because of stoppages. √ ‐ Investors could withdraw their investment, √ if there is a decline in profits. √ ‐ Bad publicity √ due to poor quality products supplied. √ ‐ High staff turnover √, because of poor skills development. √ ‐ Unrealistic deadlines √ may not be achieved. √ ‐ Businesses may not be able to make/afford the necessary changes √ that will satisfy customers’ needs. √ ‐ Loss of customers √ may lead to bankruptcy/closure.√ ‐ Undocumented quality control systems/processes√ could result in error/deviations from pre-set quality standards. √ ‐ Any other relevant answer related to the negative impact on businesses if TQM is poorly implemented. Max. (12) 8.5 Application of PDCA model/cycle in improving the quality of products Plan ‐ Businesses should identify the problem and develop a plan for improvement to processes and systems. √√ ‐ Answer questions such as ʽWhat to do’/ ʽHow to do it’. √√ ‐ Plan the new method and approach in order to improve the quality of their products. √√ Sub-max. (4) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) BUSINESS STUDIES 43 Do ‐ Businesses should implement the change on a small scale. √√ ‐ Implement the processes and systems as planned. √√ Sub-max. (4) Check/Analyse ‐ Use data to analyse the results of change. √√ ‐ Determine whether it made a difference and what needs to be improved. √√ ‐ Check whether the processes are working effectively. √√ ‐ Businesses should assess/test and establish if it is working/if things are going according to plan. √√ Sub-max. (4) Act as needed ‐ Implement the improvement to meet the needs of the business. √√ ‐ Devise strategies on how to continually improve. √√ ‐ If the change was successful, implement it on a wider scale. √√ ‐ Businesses should continuously revise the process until they get it right the first time.√√ ‐ Any other relevant answer related to how businesses can apply the PDCA model/cycle to improve the quality of their products. Sub-max. (4) NOTE: 1. The steps could be integrated in the application. 2. Award a maximum of THREE (3) marks for only mentioning the steps of the PDCA model. Max. (14) 8.6 Conclusion ‐ Businesses should put good quality management systems in place in order to remain sustainable and competitive in the market place. √√ ‐ Businesses that implement the PDCA model have a competitive advantage that keep abreast with the latest developments in the market.√√ ‐ Any other relevant conclusion related to the Total Quality Management. (Any 1 x 2) (2) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com 44 BUSINESS STUDIES (EC/JUNE 2019) QUESTION 8: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Benefits of good quality 10 management Reduction cost of quality 10 Impact on business if poorly 12 Max implemented 32 PDCA model 14 Conclusion 2 INSIGHT Layout 2 Analysis/Interpretation 2 Synthesis 2 8 Originality/Examples 2 TOTAL MARKS 40 LASO – For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if some requirements are met. Allocate 0 marks where requirements are not met at all. TOTAL SECTION C: 80 GRAND TOTAL: 300 Copyright reserved Please turn over

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