BUSINESS S JUNE-ST-P1-QPand Memo_hlayiso.com_.pdf

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Downloaded from hlayiso.com SECTION A: COMPULSORY QUESTION ONE 1.1. i i fe Lid, 143. 1.1.4. 1.1.5, CHOOSE THE CORRECT ANSWER FROM THE OPTIONS PROVIDED. ONLY WRITE THE CORRECT ALPHABET NEXT TO THE NUMBER, FOR EXAMPLE: 1.1.6. B This is the process of conceiving, pricing, promoting and distributing products for sale to consumers. A) Human resources B) Administrating C) Marketing D) Financing When a rating/ label is given to products to show what quality they are, this is known as..... A) Grading B) Five star C) Excellence D) Standardisation Issues relating to a group of individuals such as race, age, social/economic class is referred to as: A) Recruitment B) Communication C) Psychographics D) Demographics An exclusive right granted to an inventor for a limited period of time. A) Patent B) Trademark C) Symbol D) Registration means that businesses in a sector buys goods/services from another sector or from businesses within the same sector. A) Forward link B) Backward link C) Forward and backward link D) Infinite link (5x2=10) P.T.0/ QUESTION 1.2. 2

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Downloaded from hlayiso.com SECTION B ANSWER ANY TWO (2) QUESTIONS FROM THIS SECTION QUESTION TWO: BUSINESS ENVIRONMENTS 2.1. identify which element of Porters Five Forces applies to each of the following statements below: (10) 2.1.1. Customers prefer fashionable sneakers to more expensive, formal shoes. 2.1.2. Due to an increase in petrol price, the supplier, Tracy Stores increased their prices. 2.1.3. Trinity Ltd wants to start an exclusive fashion boutique that sells exquisite garments. 2.1.4. The Chetty’s bakery store created a new flavour of cupcakes that is selling more than the Govender’s bakery. 2.1.5. Toy Zone attracts more customers than Toys R Us. 2.2. Complete the table on business sectors by filling in the missing aspects: (10) | SECTOR DESCRIPTION INDUSTRY | EXAMPLE OF BUSINESS | | 2.2.1. Extracts raw materials 2.2.2 Mondi Paper Mill | from nature Secondary 2.2.3. 2.2.4 Toyota | Tertiary 2.2.5 ~~ Financial 2.2.6 | 2.3. Read the scenario below and answer the following questions LUXURIOUS STAR HOTEL (LSH) | time employees. Ten casual workers are employed during peak season to meet the demands of the | | cu; | LSH is situated in the West Coast close to a number of popular tourist attractions. They employ 30 full { | | hotel. \ Recently the hotel is experiencing a decline in tourist bookings which resulted in the laying off, of some | Regular customers are now staying at other accommodations, where there is tighter security and other | full-time staff. Crime in the area is also increasing. Some guest have been robbed in their hotel rooms. | | services like conference facilities. i 2.3.1. Classify LSH’s challenges to the THREE business environment. Motivate your answer by quoting from the scenario. Draw the table below to present your answer. (9) BUSINESS ENVIRONMENT ~ MOTIVATION T | | 4 P.T.O/ QUESTION 2.3.2

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Downloaded from hlayiso.com 3.5. Read the scenario below and answer the following questions James is in charge of promoting the goods in his store. He is so good at his job, that he won the title of | best salesperson for the month. One of the tactics he used when promoting, is offering free gifts. 3.5.1. Mention TWO other examples of sales promotion that James could use other than the one mentioned in the scenario. {2) 3.5.2. Recommend ways James can create publicity for his business. (4) (40 MARKS} QUESTION FOUR: MISCELLANEOUS BUSINESS ENVIRONMENTS 4.1. Identify the PESTLE elements/components illustrated in each scenario below: (10) 4.1.1. The South African reserve bank decided to keep the repo rate unchanged. 4.1.2. The government introduced the affirmative action policy to address past imbalances. 4.1.3. Companies are implementing nature conservation programmes to reduce pollution. 4.1.4. Businesses are promoting online trading to reduce paperwork. 4.4.5. The introduction of the Consumer Protection Act eliminates consumer exploitation by businesses. 4.2. “When labour strikes occur, workers stop working and forfeit their pay to make an impact on their employers. Trade unions are responsible for this industrial action. ” 4,2.1. Define trade unions (2) 4.2.2. Recommend possible solutions to strikes. (4) 4.2.3, Discuss the negative impact of a strike on a business. (4) BUSINESS OPERATIONS 4.3. identify the type of pricing technique below: (8) 4.3.1. When prices are set above the break-even point in order to earn a profit. 4.3.2. This is when the cost price of a product and a percentage of that cost price are added together to Arrive at the selling price. 4.3.3. Prices are set to achieve a specific profit for a specific volume of sales. 4.3.4. The amount of profit is added to the cost of manufacturing the product. P.T.0/ QUESTION 4.4 6

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Downloaded from hlayiso.com SECTION C ANSWER ANY ONE ESSAY FROM THIS SECTION QUESTION FIVE: BUSINESS ENVIRONMENTS Chris has been a pharmacist for 20 years. He wants to establish his own pharmacy in Durban. He is not | | familiar with the challenges of the macro environment for his new business. Chris seeks your advice regarding the challenges mentioned in the scenario above. Inclucle the following in your response: e Identify and expiain the challenges in the macro environment other than GLOBALISATION. e Discuss the challenges of globalisation ° Differentiate between lobbying and networking ® Recommend the benefits of networking for a business (40 MARKS) QUESTION SIX: BUSINESS OPERATIONS | Carey is in charge of the production function in her store. She is stressed about her deadlines. She thinks | she needs some training on her job. in your response include the following: e Identify the stages of production planning e identify and explain the THREE types of production systems, (namely MASS, BATCH AND JOB PRODUCTION) e Evaluate the effectiveness of the three types of production systems. ( ADVANTAGES AND DISADVANTAGES) e Discuss the processes that should be followed when an employee is injured at work. {40 MARKS) ALL THE BESTIH

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Downloaded from hlayiso.com SECTION B QUESTION TWO: BUSINESS ENVIRONMENTS 2.1.1. Power of buyers ~ 2.1.2. Power of suppliers 2.1.3. Threat of a new entra 2.1.4. Threat of substitution nt 2.1.5. Competitive rivalry (10) 2.25 SECTOR DESCRIPTION INDUSTRY EXAMPLE OF BUSINESS 2.2.1. PRIMARY SECTOR | Extracts raw materials 2.2.2. FORESTRY ~ Mondi Paper Mill from nature Secondary 2.2.3. MANUFACTURES 2.2.4, Toyota OR PROCESSES RAW MANUFACTURING. MATERIALS INTO FINISHED GOODS | Tertiary 2.2.5. SELLS FINISHED Financial 2.2.6. NEDBANK | GOODS TO CONSUMERS AND PROVIDES SERVICES. | (10) 2.3.1. BUSINESS ENVIRONMENT MOTIVATION MICRO ENVIRONMENT ~~ Recently the hotel is experiencing a decline in tourist bookings which resulted in the laying off some full-time staff. — MARKET ENVIRONMENT ~ facilities. Regular customers are now staying in other accommodations, whom are offering tighter security and other services like conference MACRO ENVIRONMENT their hotel rooms.*~ a Crime in the area is also increasing*Some guest have been robbed in \ feet aay on) 1 (9)

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Downloaded from hlayiso.com QUESTION THREE: BUSINESS OPERATIONS 3.1. Choose the correct word/ phrase from the list below: mtoy (4) 3.1.1. Intermediaries ~ 3.1.2. Loading 3.1.3. Quality assurance ~ - 3.1.4, Routing ~ 3.2.1. Tabulate the difference between direct and indirect distribution. (4) DIRECT INDIRECT When the manufacturer sells the product directly to the | When the manufacturer uses an intermediary to sell | end user. 7 | the product to the end user.” et 3.2.2. Discuss the advantages of direct and indirect distribution. (8) | DIRECT INDIRECT ¢ Better profit margin’ as more goods are sold. e Reaches larger market through different media e@ Can demonstrate’product so consumers will resources used.” have better knowledge of the product sold.” e Capital is availablé for promotion” e Can ensure active selling’as the manufacturer ° Intermediaries specialising in customer servicé direct contact with the target market ~ © Consumers benefiting from wider variety of goods © Time-saving’as intermediaries understand how the market operates. ” oo e Large order placed’By intermediaries make production less risky for the manufacturer. | ¢ Information available on customers. 3.3. Explain the benefits of foreign marketing for a business. thes (6) e Itcan reach’é larger target market ~ ; ¢ It can increase market sharé, as there are possibilities for international business relationships. e It can increase profits’ as products can be advertised and obtained all year round to people in international countries.” e |t can mean that downswings in the domestic economy have less of an impact on the business e There can be tax advantage for exporters ~ e The business may be able to take advantages of better transport and communication systems” e The business may be able to use climate differences’to its advantages.

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Downloaded from hlayiso.com QUESTION FOUR: MISCELLANEOUS BUSINESS ENVIRONMENTS 4.1.1. Economic ~ 4.1.2. Political 4.1.3. Environmental 4.1.4. Technological 4.1.5. Legal 4.2.1. Define trade unions e An organisation of employees that is controlled, paid for and run by employees to support and represent them.<~ (2) 4.2.2. Recommend possible solutions to strikes. e Ensure ongoing, clear and effective communication to prevent strike action. e Consider retrenchment of staff as an option to reduce costs. “ frce® (4) Accept any other relevant answer 4.2.3. Discuss the negative impact of a strike on a business pie ® e Strikes can cause a decrease in productivity ~ © Cost of subsequent negotiations’ create another expenses. (Accept any other relevant response) BUSINESS OPERATIONS 4.3.1. Break-even pricing” 4.3.2. mark-up pricing oe 7, 4.3.3. Target pricing ~ 4.3.4. Cost-plus pricing ~ (8) 4.4.1. From the scenario, quote TWO steps of the product design process. Copy and complete the table below in your answer book. (6) PRODUCT DESIGN STEP QUOTE | Identify a need fora product Mzizi stated that he spends a lot of time identifying a need for a product before spending time on the design. ~ Test the product .~, He also added that testing the product in the | marketplace is vital to ensure that money is not wasted on a design that customers do not prefer. 4.5. Discuss Transportation as an essential element of marketing function. recat (6) © It is important to consider the time that transporting goods will take and the conditions the goods will have to endure, especially for perishable goods. “ ¢ The weight of the item will influence the price and the kind of transportation that is chosen. e The availability and the price of transportation will have an impact on the final price of the good.”

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Downloaded from hlayiso.com on the profitability and survival of the | business.” | MAX4 LABOUR RESTRICTIONS ~ e Employment protection legislation ; | addresses the collective rights of employees and protects individual employees in a number of ways. — MAX 4 MICRO-LENDING e People who do not have access to loans from commercial banks, borrow money from micro lenders. MAX 4 2. DISCUSS THE CHALLENGES OF GLOBALISATION e A level of competition’ that disadvantages some developing countries. e Countries taking loans that they struggle to pay back. ® Strong nations advancing their interest at the cost of weaker nations. a e Foreign investors taking advantages of exchange rates at the cost of locals?” ® Financial crisis’spreading of dangerous diseases. ® The spread of invasive alien plants‘and animals. “ MAX 10 3. DIFFERENTIATE BETWEEN LOBBYING AND NETWORKING. LOBBYING NETWORKING A process where a business intentionally send out a representative to influence high-level decision makers. MAX 2 A process by which individuals or groups exchange information with other influential people or groups in order to achieve some benefit. MAX 2 4. RECOMMEND THE BENEFITS OF NETWORKING FORA BUSINESS e Networking can influence ‘Customer behaviour. oe e Businesses can become aware” “Of their “competition _ e Businesses are easily able to create-product awareness and market for new products. e They are able to gain ideasfrom other people and find new customers aa e By networking businesses can try to predict how inflation will affect the business and what precautions to take. ~ CONCLUSION MAX 8 Every entrepreneur must scan the environments thoroughly before starting a business venture. The success of a business will rely heavily on how you can overcome challenges. ~ MAX2

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Downloaded from hlayiso.com QUESTION SIX: BUSINESS OPERATIONS INTRODUCTION Producing goods requires a lot of precision. If goods are not produced according to specifications, it could lead to decline in demands. BODY 1. IDENTIFY THE STAGES OF PRODUCTION PLANNING e Decide on the final product ~ e Break down the manufacturing stages of the final product ~ e Specify the quality of raw materials and intermediate goods. e Decide on the sequence of the production stages. - e Decide ona production system e Decide ona control mechanism e Analyse production reports and give feedback MAX 2 MAX 7 2. DIFFERENTIATE BETWEEN THE THREE TYPES OF PRODUCTION SYSTEMS. MASS PRODUCTION BATCH PRODUCTION JOB PRODUCTION Uses specialised machinery to create large volumes of identical products. ~ MAX 3 Produces goods in batches of limited quantities. All the items in a batch are identical, but there are differences between batches. MAX 3 Produces individual items according to the specific requirements and specifications of a particular client. - ; MAX 3 3. EVALUATE THE EFFECTIVENESS OF THE THREE TYPES OF PRODUCTION SYSTEMS. ADVANTAGES | DISADVANTAGES apt MASS PRODUCTION e Larger volumes of goods produced at one time. ~ e Faster production can be done as goods are. oe produced in bulk. e Cheaper production cost§as the same specifications are used . a“ on all the items. e Items cost less’per unit because the unit cost of the product is e Start-up capital is required to buy " " a expensive machinery e Machinery is expensive to maintain and replace e Small varietyof goods as every product produced is identical. 7 e Inflexible process, and innovative ideas and a implement. changes are difficult to |

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Downloaded from hlayiso.com The production process is flexible and can be adapted to the requirements of the buyer’ Fewer delays that are due to machinery breakdowns. ~ Machinery is not as | expensive as mass production and do not need such skilled operators. Quantities can be changed’easily which reduces wastage. Batch production can make use of less skilled labour. - MAX6 MAX 6 Requires storage of | larger quantities of raw materials Longer production process as there could be time delays in waiting for one batch to finish before the | next one can get started.” The goods and services do not always meet the exact specifications of the customers.” JOB PRODUCTION Workers are highly skilled’ which adds to the quality of the product. ~ Excellent quality a each product is made to its own specifications. Easy to control asa group of workers are only focusing on a Requires highly specialised skilled employees who are very creative. ~ High cost per item produced as raw materials are costly | and cannot be bought in bulk.

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Downloaded from hlayiso.com MARK ALLOCATION Introduction 2 1. Stages of production planning 7 7 2. Difference between three production 9 systems 3. Effectiveness of production systems 30 4. Process to follow if a worker is injured 6 Conclusion 2 Analysis 2 Layout 2 Synthesis 2 Originality 2 TOTAL 40