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NATIONAL
SENIOR CERTIFICATE
GRADE 12
BUSINESS STUDIES
FEBRUARY/MARCH 2015
MEMORANDUM
MARKS: 300
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Business Studies Grade 12 NSC Supplementary 2015 Memo (Eng)
Grade 12 Business Studies memorandum from the NSC Supplementary Exam 2015 (English), 48 pages. Read online or download the free PDF.
Business Studies · Grade 12 · NSC Supplementary Exam · 2015. Memorandum, 48 pages. Read online or download the PDF.
- Subject
- Business Studies
- Grade
- Grade 12
- Document type
- Memorandum
- Year
- 2015
- Exam period
- NSC Supplementary Exam
- Curriculum
- CAPS
- Pages
- 48
- File size
- 630.9 KB
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Business Studies 2 DBE/Feb.–Mar. 2015
NSC – Memorandum
NOTES TO MARKERS
1. For marking and moderation purposes, the following colours are
recommended:
Marker: Red
Senior Marker: Green
Deputy Chief and Chief Marker: Black/Brown/Pink
Internal Moderator: Orange
2. Candidates' responses for SECTIONS B and C must be in full sentences;
however this would depend on the nature of the question.
3. A comprehensive memorandum 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
memorandum
• Comes from another source
• Original
• A different approach is used
NOTE: SECTION A:
- There are no alternative answers.
- Each question has only one correct answer.
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.
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 will be penalised. This is applicable to all
sections of the paper with effect from November 2015. For this paper it
applies to SECTIONS A and B only.
9. No additional credit must be given for repetition of facts. Indicate with an R.
10. 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 memo. Only the total for each question should appear in the left-hand
margin next to the appropriate question number.
11. Note that with effect from 2012 (final examination) no marks will be awarded
for indicating Yes (√√)/No (√√) in evaluation-type questions requiring
substantiation or motivation. (Applicable to SECTIONS B and C.)
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NSC – Memorandum
12. The difference between 'evaluate' and 'critically evaluate' can be explained as
follows:
(a) 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.' √
(b) 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. Mark allocation should also be considered.
2. The above could apply to 'analyse' as well.
13. SECTION B
13.1 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 only applies to questions where the number of facts is specified.
13.2 If two facts are written in one sentence, award the candidate FULL credit.
Point 13.1 above still applies.
13.3 If candidates are required to provide their own examples/views, brainstorm
this at the marking centre to finalise alternative answers.
13.4 USE OF THE COGNITIVE VERB AND ALLOCATION OF MARKS
13.4.1 Where the number of facts are specified questions that require candidates to
'explain/discuss/describe' will be marked as follows:
• Heading/Fact 2 marks
• Explanation 1 mark (or as indicated in the memorandum).
The 'heading' and 'explanation' are given separately to facilitate mark
allocation.
13.4.2 If the number of facts is not specified, the candidate must be informed by the
nature of the question and the maximum marks allocated.
13.5 ONE mark will be awarded for answers that are easy to recall, requires
one-word answers or is quoted directly from scenario/case study. This
applies to SECTIONS B and C in particular.
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Business Studies 4 DBE/Feb.–Mar. 2015
NSC – Memorandum
14. SECTION C
14.1 The breakdown of the mark allocation for the essays is as follows:
Introduction
Content Maximum: 32
Conclusion
Insight 8
TOTAL 40
14.2 Insight consists of the following components:
Layout/Structure: (Is there an introduction, body, proper paragraphs and
a conclusion?) 2
Analysis and (Learners' ability to break down the question/interpret
interpretation: it correctly to show understanding of what is being 2
asked.)
Synthesis: (What parts of the question would you have included
in the answer? Are there decisions made from a 2
combination of relevant points) Marks to be allocated
using this guide:
Mostly irrelevant facts/No relevant facts: 0
Some irrelevant facts/Some relevant facts: 1
No irrelevant facts/Only relevant facts: 2
Originality: (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, Conclusion,' etc. in 'Insight' is not supported
by an explanation.
14.3 Indicate insight in the left-hand margin with a symbol e.g. ('L, A, S and/or O')
14.4 The components of insight are indicated at the end of the suggested answer
for each question.
14.5 Mark all relevant facts until the MAXIMUM mark in a subsection has been
attained. Write MAX after maximum marks have been obtained.
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Business Studies 5 DBE/Feb.–Mar. 2015
NSC – Memorandum
14.6 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
14.7 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 MARKS BREAKDOWN at the end of each question.)
14.8 If the candidate identifies/interprets the question INCORRECTLY, then he/she
may still obtain marks for layout.
14.9 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.
14.10 (a) Award TWO marks for complete sentences. Award ONE mark for
phrases, incomplete sentences and vague answers.
(b) 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.' √
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Business Studies 6 DBE/Feb.–Mar. 2015
NSC – Memorandum
SECTION A
QUESTION 1
1.1 1.1.1 C√√
1.1.2 A√√
1.1.3 C√√
1.1.4 B√√
1.1.5 D√√
1.1.6 B√√
1.1.7 C√√
1.1.8 D√√
1.1.9 B√√
1.1.10 A√√ (10 x 2) (20)
1.2 1.2.1 ten√√
1.2.2 Net√√
1.2.3 National Skills Development Strategy√√
1.2.4 Debenture√√
1.2.5 Jungian√√ (5 x 2) (10)
1.3 1.3.1 D√√
1.3.2 C√√
1.3.3 H√√
1.3.4 A√√
1.3.5 G√√ (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
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NSC – Memorandum
SECTION B
QUESTION 2: BUSINESS ENVIRONMENT
2.1 PESTLE elements
2.1.1 Economic.√√
2.1.2 Political/Legislation.√√
2.1.3 Environment(al)/Political.√√
2.1.4 Technological/Technology/Environmental.√√
2.1.5 Legislation.√√ (5 x 2) (10)
2.2 Economic Sectors
2.2.1 Primary.√ (1)
2.2.2 Mondi/Sappi.√√
(Any other relevant example/name of a forestry business) (2)
2.2.3 Conversion of raw materials√ into finished products.√ (2)
2.2.4 Manufacturing/Production.√ (1)
2.2.5 Tertiary.√ (1)
2.2.6 Holiday Inn Hotel/Sunrise Guest house or B&B/Spur Restaurant.√√
(Any other relevant example/name of a hospitality industry
business) Max (2)
(9)
2.3 Strategies
2.3.1 Vertical Integration
- BB Potato Farm can take over/buy majority shares√ from Zimba
Ltd, who manufactures and supplies crisp chips nationwide.√
- BB Potato Farm can take over√ the local vegetable shops/retail
shops selling potatoes.√
(Any 1 x 2) (2)
- Forward integration.√√ (2)
Max (4)
2.3.2 Vertical Integration
- Zimba Ltd can take over√ BB Potato Farm/their supplier of
potatoes.√ (2)
- Backward integration.√√ (2)
Max (4)
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NSC – Memorandum
2.3.3 Horizontal Integration vs. Horizontal Diversification
Horizontal Integration Horizontal Diversification
- A business takes control of√/ - A business includes new
incorporates other products/services√, which
businesses in the same may appeal to existing
industry/which produce/sell customers.√
the same goods/services.√
- To reduce the threat of - To expand their product
competition√/acquire range for their current
complementary/substitute market√/supply a wider
products/services.√ variety of goods in order to
retain existing customers.√
- Example: a potato farm takes - Example: a potato farm also
over other potato farms.√ producing peanuts.√
- Any other relevant answer, - Any other relevant answer,
with an explanatory example, with an explanatory
related to horizontal example, related to
integration. horizontal diversification.
Explanation (2) Explanation (2)
Example (1) Example (1)
Sub max (3) Sub max (3)
Max (6)
2.4 Basic Conditions of Employment Act, 1997 (Act 75 of 1997) (BCEA)
2.4.1 Leave
- Annual leave√√
• Workers are entitled to:
21 consecutive days' annual leave per year/One day for
every 17 days worked/One hour for every 17 hours
worked.√
Type (2)
Explanation (1)
Sub max (3)
- Sick leave√√
• Workers are entitled to:
Six weeks' paid sick leave in period of 36 months/1 day's
paid sick leave for every 26 days worked during the first six
months of employment.√
• A medical certificate may be required before paying an
employee who is absent for more than two consecutive days
or who is frequently absent.√
Type (2)
Explanation (1)
Sub max (3)
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- Maternity leave√√
• A pregnant employee is entitled to four consecutive months'
leave.√
• A pregnant employee may not be allowed to perform work
that is hazardous to her or her child.√
NOTE: Adoption leave may also be accepted
Type (2)
Explanation (1)
Sub max (3)
- Family responsibility leave√√
• Three to five (3 to 5) days paid leave per year on request,
when:
o the employee's child is born/sick.√
o in the event of the death of the employee's
spouse/life partner/parent/adoptive parent/
grandparent/child/adoptive child/grandchild/sibling.√
• An employer may require reasonable proof, before
granting this leave.√
• Male employees are entitled to up to three/five day's
paternity leave when the child is born.√
Type (2)
Explanation (1)
Sub max (3)
NOTE: Mark the first THREE only.
(Any 3 x 3) (9)
Max (9)
2.4.2 Disadvantages of BCEA
- Developing/Drafting√ a formal/legal employment contract√ may
be time-consuming/costly.√
- Businesses may regard employment contracts as
restrictive/negative√ and may refrain from implementing it,√
which result in non-compliance/penalties.√
- No employer may force an employee√ to work more than 45
hours in a week/nine hours in a five-day (or less) work
week/eight hours in a six-day work week.√ This may result in
low productivity.√
- Hiring cheap labour√ is no longer possible,√ so businesses
cannot exploit workers.√
- BCEA forces businesses to comply with many legal√
requirements,√ which may increase labour costs.√
- Businesses not complying to the Act√, may be charged with
high penalties,√ which may affect their cash flow negatively.√
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- Businesses may consider the provisions of the BCEA as
unimportant√ and an unnecessary administrative burden√ that
increase operating costs.√
- Any other relevant answer related to the disadvantages of the
BCEA to businesses.
NOTE: Mark the first TWO only.
Fact (2)
Discussion (1)
(Any 2 x 3) (6)
Max (6)
2.5 Impact of the Compensation for Occupational Injuries and Diseases
Act), 1997 (Act 61 of 1997) (COIDA)
Positive impact on businesses
- Promotes safety√ in the workplace.√
- Creates a framework for acceptable employment practices√ and safety
regulations.√
- Supply administrative guidelines/mechanisms√ for dealing
with/processing claims.√
- Eliminates time and costs spent√ on lengthy civil court proceedings.√
- Any other relevant answer related to the positive impact of COIDA on
businesses.
Negative impact on businesses
- 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.√
- Implementation processes/procedures required by the Act√ may be
expensive.√
- Employers have to register all their workers and 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.√
- Any other relevant answer related to the negative impact of COIDA on
businesses.
Sub max (8)
Positive impact on employees
- Covers all employees at the workplace√ if both parties meet all the
necessary safety provisions in the Act.√
- 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 dependant(s) will receive financial support.√
- Any other relevant answer related to the positive impact of COIDA on
employees.
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Negative impact on employees
- Workers who are temporarily/permanently employed in foreign countries√
are not covered.√
- Domestic/Military workers√ are not covered.√
- Any other relevant answer related to the negative impact of COIDA on
employees.
Sub-max (8)
Max (12)
[60]
BREAKDOWN OF MARKS
QUESTION 2 MARKS
2.1 10
2.2.1 1
2.2.2 2
2.2.3 2
2.2.4 1
2.2.5 1
2.2.6 2
2.3.1 4
2.3.2 4
2.3.3 6
2.4.1 9
2.4.2 6
2.5 12
TOTAL 60
QUESTION 3: BUSINESS VENTURE
3.1 Leadership
3.1.1 Qualities of a successful leader
- Have high standards of leadership.√
- Have a clear direction.√
- Not afraid of criticism.√
- Upfront.√
- Precise on what they want to achieve.√
- Everyone must contribute ideas.√
NOTE: Mark the first THREE only.
(Any 3 x 1) (3)
3.1.2 Democratic leader (quoted from the case study)
- Every month he meets with his team, with the aim of getting
feedback and inputs.√
- I ask two things of everyone …√
- Everyone must contribute ideas.√
- Viable ideas are then implemented.√
NOTE: Mark the first THREE only.
(Any 3 x 1) (3)
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3.1.3 Democratic leadership style
Positives
- Creates a positive work environment√ for both employers and
employees.√
- Employees contribute toward the decision making process,√
which minimises conflict.√
- Encourages creative thinking amongst employees√ as they
contribute towards decision making.√
- Productivity increases,√ as happy workers have better work
ethics.√
- Staff turnover is reduced√ because job satisfaction is high
amongst workers.√
- Any other relevant answer related to a positive evaluation of a
democratic leadership style.
Negatives
- Consulting all stakeholders/participants for decision making is
time consuming√ as everyone is expected to agree.√
- Can only be effective in situations where employees are skilled
and eager to share ideas√ in order to make informed
decisions.√
- Profitable opportunities may be missed√ due to slow decision
making.√
- Poor leadership skills may result in not achieving business
objectives√ and this may lead to conflict.√
- Contributions by participants may not be considered by the
leader in his/her final decision√ as he/she has the final
responsibility for making decisions.√
- Leader may make poor decisions√ based on misleading
contributions by participants.√
- Any other relevant answer related to a negative evaluation of
democratic leadership style.
Max (8)
3.2 Co-operatives
3.2.1 Types of Co-operatives
- Housing.√
- Worker.√
- Agricultural.√
- Co-operative burial society.√
- Financial services.√
- Consumer.√
- Transport.√
- Primary.√
- Secondary.√
- Tertiary.√
- Any other relevant answer related to the types of co-operatives
(Any 4 x 1) (4)
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3.2.2 Advantages
- Formed by persons√ having a common interest√ to allow more
members to work as a team.√
- Members may cast their votes to elect committee
representatives√ that will deal with day-to-day administration√
and can elect the most trustworthy members.√
- Liability√ to members is limited√ to an amount equal to the
nominal value of the share for which the member has not paid
and what he/she holds in the co-operative.√
- Personal properties of members√ are free from risk√ because
of limited liability.√
- There is no middleman√ between the co-operative and its
suppliers/customers/clients√ which may lead to profit
maximisation.√
- Easy and less complicated√ to form this business√ as there is
very little/simple legal requirements.√
- Registered co-operatives formed by previously disadvantaged
people√ may obtain support from the government√ in the form
of government tenders.√
- It is a legal person√ apart from its members√ and can enter
into contracts in its own name.√
- Auditing financial statements√ is legally required√, so
trustworthy reports are prepared in accordance with co-
operative principles.√
- Any other relevant answer related to the advantages of co-
operatives.
NOTE: Mark the first THREE advantages only.
Fact (2)
Explanation (1)
(Any 3 x 3) (9)
3.3 Simple interest
- Calculated on the original/principal amount√ invested.√
- Accumulated interest from prior periods√ is not used in calculations for
the following period.√
- Money charged by the lender√ on the fixed amount for a certain period of
time.√
- Interest charged remain fixed√ for the full period of investment.√
- Any other relevant answer related to the definition of simple interest.
Sub max (2)
Compound interest
- Calculated each period on the original/principal amount√ including all
interest accumulated during past periods.√
- Based on the concept of adding accumulated interest to the original/
principal amount√ and interest is earned on interest.√
- Any other relevant answer related to the definition of compound interest.
Sub max (2)
NOTE: The answer must show the difference.
Max (4)
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3.4 3.4.1 R11 800 – R10 000 = R1 800√
R1 800/R10 000 x 100 = 18%√
18% / 3√ = 6%√√ (5)
NOTE: 1. Award full marks (5) if the answer is correct and
no workings are shown.
2. If calculations were shown correctly, but the final
answer is wrong, award the maximum of THREE
(3) marks.
3. If the answer is incorrect, allocate a maximum of
TWO (2) marks for the correct understanding of
the concept and method.
4. If there are no workings shown and the answer is
incorrect, award a ZERO mark.
3.4.2 R3 600/R10 000√ x 100 = 36%√
36% / 3√ = 12%√√ (5)
NOTE: 1. Award full marks (5) if the answer is correct and
no workings are shown.
2. If calculations were shown correctly, but the final
answer is wrong, award the maximum of THREE
(3) marks.
3. If the answer is incorrect, allocate a maximum of
TWO (2) marks for the correct understanding of
the concept and method.
4. If there are no workings shown and the answer is
incorrect, award a ZERO mark.
3.4.3 Option 1:
Re-investing the fixed deposit.√
- Risk√ is low.√
- Earn passive√ income√/income√ without effort.√
- Interest rates may increase√ which will benefit Annette.√
- Any other relevant answer related to the reasons for re-
investing.
Investment option (1)
Reasons (4)
Max (5)
OR
Option 2:
Expanding the business.√
- Rate of return is higher√ in comparison to the fixed deposit√/
6% from the investment in the bank is lower√ than 12% from
the business.√
- Possibilities of growth/expansion√ may increase profitability.√
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- Annette has full control over her business√ and she can
minimise risk.√
- Any other relevant answer related to the reason for expanding
the business.
Investment option (1)
Reasons (4)
Max (5)
3.5 Forms of Investment
3.5.1 Preference shares
Positives
- Shareholders obtain proportional ownership√ in a company.√
- Investment in preference shares has a lower risk than ordinary
shares√ as preference shareholders have preferential claims
on the assets of a company at liquidation.√
- Dividends are paid out√ before any other shareholders receive
theirs.√
- Preference shareholders receive a fixed dividend
amount/percentage√ per year.√
- Accumulated preference shareholders may be compensated
for past dividends√ not paid out in previous years.√
- Shareholders may also share in surplus profits√ that remain
after all other shareholders have received their dividends.√
- Shareholders have limited liability to the debt of the company,√
therefore they stand to lose what they have invested.√
- Shareholders will receive their claim on company assets after
creditors have been paid,√ but before ordinary shareholders
receive their claims when the company is liquidated.√
- Any other relevant answer related to a positive analysis of
preference shares.
Negatives
- Shareholders have no voting rights√ at the Annual General
Meeting (AGM).√
- Shareholders may receive less dividends√ when company
profits are high as their dividends are fixed.√
- Convertible preference shares may be converted into ordinary
shares,√ in which case preferential rights on dividends/assets
are lost.√
- Non-cumulative preference shareholders have no cumulative
rights√ on past dividends not paid out.√
- Risk may be high,√ as investment may be lost when
companies are liquidated.√
- Any other relevant answer related to a negative analysis of
preference shares.
Max (8)
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3.5.2 RSA Retail Savings Bonds
Positives
- Guaranteed returns as interest rate is fixed√ for the whole
investment period.√
- Interest rates√ are market related.√
- Investment may be easily accessible,√ as cash may be
withdrawn after the first twelve months, subject to penalties.√
- Low risk/Safe investment,√ is made with the South African
Government which cannot be liquidated.√
- Retail bonds are easily/conveniently obtained√
electronically/from any Post Office/any Pick 'n Pay
shop/directly from National Treasury.√
- No charges/costs/commissions payable√ on this type of
investment.√
- Interest is usually higher√ than on fixed deposits.√
- Retail bonds are listed√ on the capital bond markets/on the
JSE.√
- Any other relevant answer related to a positive analysis of
RSA retail savings bonds.
Negatives
- Retail bonds cannot be ceded to banks√ as security on loans.√
- A minimum of R1 000 must be invested,√ which may be
difficult for some small investors to accumulate.√
- Retail bonds are not freely transferable√ amongst investors.√
- Any other relevant answer related to a negative analysis of
RSA retail savings bonds.
Max (6) [60]
BREAKDOWN OF MARKS
QUESTION 3 MARKS
3.1.1 3
3.1.2 3
3.1.3 8
3.2.1 4
3.2.2 9
3.3 4
3.4.1 5
3.4.2 5
3.4.3 5
3.5.1 8
3.5.2 6
TOTAL 60
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QUESTION 4: BUSINESS ROLE
4.1 Creative thinking
4.1.1 Strategies (quoted from the case study)
- All the floor tiles in their offices were replaced with artificial
grass.√
- Staff may work barefoot while working.√
- Staff may choose their own flexible office hours√/Staff may
choose their own working hours as long as they meet their
deadlines. √
(Any 1 x 1) (1)
4.1.2 Barriers to creative thinking
- Lack of creativity.√√
- Financial barriers.√√
- Poor working conditions.√√
- Lack of resources/infrastructure.√√
- Social barriers.√√
- Lack of motivation/low morale.√√
- Lack of skilled employees/managers.√√
- Not easy to supervise staff working flexible hours.√√
- Flexible working hours can cause delays in meeting
deadlines.√√
- Any other relevant answer related to barriers of creative
thinking for CC Creative Design/Sam Mamabulo.
(Any 4 x 2) (8)
4.2 Professional business behaviour
4.2.1 - Block social websites on business computers/networks.√√
- Take disciplinary action against managers who are found
guilty.√√
- Train managers to understand the impact of their actions on
the business.√√
- Create a culture of professionalism.√√
- Any other relevant answer related to methods of addressing
unprofessional behaviour.
Any (1 x 2) (2)
4.2.2 - Train him/her in good telephone practice.√√
- Suggest how he/she can improve his/her behaviour.√√
- Discuss the importance of good public relations with all
stakeholders.√√
- Any other relevant answer related to methods of addressing
unprofessional behaviour.
Any (1 x 2) (2)
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NSC – Memorandum
4.2.3 - Introduce board meeting policies that clearly lay out
procedures to follow when any board member is late for
meetings.√√
- CEO should let someone know that he/she will be late, giving
an acceptable reason, so that the meeting may continue. Less
urgent matters may then be discussed in his/her absence.√√
- Any other relevant answer related to methods of addressing
unprofessional behaviour.
Any (1 x 2) (2)
Max (6)
4.3 Ethical behaviour
- Includes the acceptable/moral principles√ of right and wrong.√
- It determines√ human behaviour.√
- It has a positive influence√ on businesses and communities.√
- It defines√ right/fair/good/honest actions.√
- Any other relevant answer related to the description of ethical behaviour.
Max (4)
4.4 Unique South African workplace diversity issues
- Poverty√√
• Supply free uniforms/working clothes.√
• Provide low priced meals at canteens.√
• Offer training to improve skills for better positions in the business.√
• Any other relevant answer related to addressing poverty in the work
place.
Issue (2)
Strategy (1)
Sub max (3)
- Inequality√√
• Implement equal opportunity policies when appointing new staff.√
• Equal opportunities should be considered when promoting staff.√
• Implement an Employment Equity Plan for the business.√
• Any other relevant answer related to addressing inequality in the work
place.
Issue (2)
Strategy (1)
Sub max (3)
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NSC – Memorandum
- Race√√
• Implement affirmative action policies as required by law.√
• No discrimination should be made based on skin colour.√
• Any other relevant answer related to addressing race in the work
place.
Issue (2)
Strategy (1)
Sub max (3)
- Gender√√
• Male and female workers should be paid the same salary/wage for
equal work performed.√
• All posts should be accessible to male and female workers.√
• Targets may be set for gender employment.√
• Any other relevant answer related to addressing gender in the work
place.
Issue (2)
Strategy (1)
Sub max (3)
- Language√√
• Workplace policies should be prepared in more than one language so
that it can be understood by all workers.√
• No worker should feel excluded in meetings conducted in one
language only.√
• Any other relevant answer related to addressing language in the work
place.
Issue (2)
Strategy (1)
Sub max (3)
- Age√√
• The ages of permanent workers should vary from 18 to 65 to include
all age groups.√
• Promotions should not be linked to a certain age group.√
• Any other relevant answer related to addressing age in the work
place.
Issue (2)
Strategy (1)
Sub max (3)
- Disability√√
• Provide easy access to the building/offices for workers in
wheelchairs.√
• Ensure that workers with special needs are not marginalised/feel
excluded from workplace activities.√
• Any other relevant answer related to addressing disability in the work
place.
Issue (2)
Strategy (1)
Sub max (3)
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Business Studies 20 DBE/Feb.–Mar. 2015
NSC – Memorandum
- Culture√√
• Be sensitive to special requirement for different cultural groups, e.g.
allow day(s) off for cultural holiday/festivals.√
• Cater for special food/preparation methods in the workers' canteen.√
• Any other relevant answer related to addressing culture in the work
place.
Issue (2)
Strategy (1)
Sub max (3)
NOTE: Mark the first FOUR only.
(Any 4 x 3) (12)
Max (12)
4.5 Steps/ Procedures in handling grievances
- Verbal complaint√ - the employee states his problem to his supervisor.√
- Investigation√ - the supervisor listens, investigates the problem and
suggests solutions.√
- Formal written complaint√ - if the employee is not satisfied with the
suggested solution(s), he/she can make a formal written complaint to the
next level of management.√
- Further investigation by next management level√ - this level investigates
the problem again, suggests a solution and makes a recommendation.√
- Resolution of problem/grievance√ - grievance is solved and the employee
is happy.√
- If employee is not satisfied, he/she declares a dispute√ - the matter is
referred for mediation and arbitration/CCMA/Labour court.√
- Any other relevant answer related to steps/actions in grievance
procedures.
NOTE: 1. Accept steps in any order.
2. Mark the first FOUR only.
(Any 4 x 2) (8)
Max (8)
4.6 Principles of professionalism
- Respect yourself and the dignity and rights of others√√ e.g. respecting
other languages/cultures.√
- Respect the image of the business/your profession√√ e.g. adhere to the
dress code of the business/profession.√
- Act with integrity/honesty/reliability√√ e.g. keep to working hours even if
no other workers are around/do not use the business resources for
personal gain.√
- Be committed to quality√√ apply your skills and knowledge to the benefit
of the business/society at large.√
- Adhere to confidentiality measures√√ by not disclosing sensitive
information about customers/business.√
- Remain objective, act fairly and justly to all√√ without being bias or
showing favouritism.√
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NSC – Memorandum
- Continually improve/develop your skills and knowledge√√ e.g.
attending refresher courses and seminars.√
- Share your knowledge by investing your time and expertise in junior
staff members√√ e.g. uplifting/empowering others.√
- Any other relevant answer related to the principles of professionalism.
Principle (2)
Discussion (1)
NOTE: Mark the first THREE only.
(Any 3 x 3) (9)
Max (9)
4.7 Benefits of CSI projects
- Job opportunities√ - provide jobs for unemployed members√ of the
communities.√
- Educational bursaries√ - employee's family and/or community
members√ receive bursaries to further their studies.√
- Welfare of workers/society√ - provide rehabilitation centres√ to
employees/community members who have addiction problems.√
- Medical facilities√ - improve the health of workers/communities by
providing medical infrastructure,√ e.g. building of clinics.√
- Upliftment of the standard of living,√ e.g. skills should be developed√
that will lead to the empowerment of previously disadvantaged
communities.√
- Any other relevant answer related to the benefit of CSI projects for the
community.
NOTE: Mark the first FOUR only.
(Any 4 x 3) (12)
Max (12)
[60]
BREAKDOWN OF MARKS
QUESTION 4 MARKS
4.1.1 1
4.1.2 8
4.2.1 2
4.2.2 2
4.2.3 2
4.3 4
4.4 12
4.5 8
4.6 9
4.7 12
TOTAL 60
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Business Studies 22 DBE/Feb.–Mar. 2015
NSC – Memorandum
QUESTION 5: BUSINESS OPERATION
5.1 Human Resources activities
5.1.1 Job specification
- Qualifications required for the post/job.√
- Expertise and skills required.√
- Personal characteristics needed for the post/job.√
- Physical requirements.√
- Training required.√
- Minimum experience required.√
- Any other relevant answer related to the contents of a job
specification for a workshop manager.
(Any 3 x 1) (3)
5.1.2 Name/Address/Contact details of Employer.√
- Personal details/Address of Employee.√
- Job title.√
- Job description.√
- Working hours.√
- Overtime.√
- Salary/Remuneration package.√
- Normal place of work.√
- Leave.√
- Date of commencement of employment/Starting date.√
- Probation period.√
- Code of conduct and/or Code of ethics.√
- Termination of the contract.√
- Disciplinary policy.√
- Any other relevant answer related to the contents of the
employment contract.
(Any 3 x 1) (3)
5.1.3 Procedure of Selection
- Determine fair assessment criteria√ on which selection will be
based.√
- Use the assessment criteria to assess all CV's/application
forms√ received during recruitment.√
- Screening:√determine which applications meet the minimum
job requirements and separate these from the rest.√
- Compile a shortlist√ of potential candidate's identified.√
- Inform unsuccessful applicants√ about the outcome of their
application.√
- Reference checks should be made to verify the contents of
CV's,√ e.g. contact previous employers to check work
experience.√
- Invite shortlisted candidates√ for an interview.√
- Shortlisted candidates may be subjected to various types of
selection tests√ e.g. skills tests.√
- Any other relevant answer related to the procedure of
selection.
Max (6)
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NSC – Memorandum
5.2 Remuneration
Piecemeal/Piece-rate/Piecework Time-related
- Remunerated for a specific piece of - Remunerated for the time/
work,√ regardless of hours worked/ period worked√, usually
time taken to produce items.√ monthly or weekly.√
- Calculation based on√ the piece of - Calculation based on√ an
work/number of items produced.√ agreed hourly rate.√
- Any other relevant answer related to - Any other relevant answer
piecemeal/piece rate/piece work related to time related
remuneration. remuneration.
Sub max (2) Sub max (2)
NOTE: The distinction must be clear.
Max (4)
5.3 Conditions for termination of Employment contract
- Dismissal√√ - contract terminated for valid reason(s), e.g. unsatisfactory
job performance.√
- Redundancy/Restructuring√√ - employer no longer has work for
employees and cannot fulfil the contract.√
- Retrenchment√√ - job stated in the contract is no longer necessary, as
the employer has become insolvent and may not be able to pay the
employees.√
- Resignation√√ - employees decided to leave and resign voluntarily.√
- Any other relevant answer related to the conditions for termination of an
employment contract.
NOTE: Mark first TWO only.
Reason (2)
Explanation (1)
(Any 2 x 3) (6)
Max (6)
5.4 Elements of TQM
5.4.1 Continuous skills development/Education and training
- A skills audit should be conducted√ to determine the
qualifications and competence of staff that can influence the
quality of products/processes.√
- Workers who lack skills√ should be trained in line with their job
descriptions.√
- Regular evaluation of training material√ improves the
effectiveness of the training.√
- Suitable induction programmes√ promoting quality should be
implemented.√
- Quality guidelines for managers√ should be used to monitor
continuous skills development.√
- Any other relevant answer related to continuous skills
development/education and training.
Max (6)
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NSC – Memorandum
5.4.2 Total client/customer satisfaction
- The business should understand√ current and future customer
needs.√
- Provide quality products and services√ to satisfy customer's
needs and expectations.√
- Customers will be satisfied√ if products and services meet their
needs, requirements and expectations.√
- Businesses need to conduct effective market research√ to
determine customer's needs or to develop products and
services that will meet or exceed those needs.√
- Businesses need to implement√ efficient, friendly customer
services and customer care systems.√
- Any other relevant answer related to total client satisfaction.
Max (6)
5.4.3 Continuous improvement to systems and processes
- Processes and systems are the flow of activities implemented√
to create or deliver products and services to customers.√
- Businesses that have quality processes and systems in place√
will produce good quality products and can provide excellent
customer services.√
- It should be easy for customers to understand processes√ so
that they do not waste their time with long and complicated
procedures.√
- Employees need to understand√ the operating system and the
service delivery system.√
- Identify problem areas of the business√ to be able to devise
relevant solutions thereof.√
- Encourage team work√ by introducing the idea of corporate
culture change.√
- Give detailed and specific instructions√ on improvement
strategies.√
- Encourage team work√ and delegate responsibilities.√
- Any other relevant answer related to continuous improvement
to systems and processes.
Max (6)
5.5 Quality of performance
5.5.1 Marketing
- Increasing√ their market share.√
- Winning customers by satisfying their needs/wants√ and
building positive relationships.√
- Adhering to ethical advertising practices√ when promoting
products/services.√
- Identifying a competitive advantage√ to focus/improve on
marketing strengths.√
- Differentiating products√ in order to attract more customers.√√
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- Constantly reviewing√ value issues.√
- Communicating effectively with customers√ to get feedback
about their experiences of products/services sold.√
- Co-ordinating distribution√ with production and advertising
strategies.√
- Using pricing techniques√ to ensure a competitive advantage.√
- Measuring gaps between customer expectations and actual
experiences,√ so that problems/unhappiness may be
diagnosed and addressed.√
- Making adjustments and changes to products/services√ based
on feedback from customers/results of market research.√
- Using aggressive advertising campaigns√ to sustain/increase
the market share.√
- Any other relevant answer related to the quality of
performance within the marketing function.
Max (6)
5.5.2 Purchasing
- The purchasing and procurement department has the
responsibility for obtaining goods/services√ that will support
the business in meeting its performance goals.√
- Ensuring that purchases are of the right quality/price/quantity√
and are available at the right time and place.√
- Identifying suitable suppliers√ who will be able to source and
deliver goods and services.√
- Maintaining and implementing√ an effective stock control
system.√
- Ensuring that suppliers are paid√ on time.√
- Involving suppliers√ in strategic planning/product
design/material selection/quality control process.√
- Ensuring that there is no break in production/shortages√ due to
stock outs.√
- Minimising cash flow problems√ due to overstocking.√
- Building relationships with suppliers√ so that they are in
alignment with the business's vision/mission/values.√
- Having a thorough understanding√ of supply chain
management.√
- Any other relevant answer related to the quality of
performance within the purchasing function.
Max (6)
5.6 Impact of Total Quality Management (TQM) on large businesses
Positives
- More√ satisfied customers√/Increased√ customer satisfaction.√
- Resources and time√ are used efficiently.√
- Costs are reduced√ as wastage is lower.√
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- Productivity increases√ through good time management and high quality
resources.√
- Products and services are continuously√ improving.√
- Business vision/mission may be reached√ more successfully.√
- Increased competitiveness√ as high quality products/services are
provided.√
- Employee skills and knowledge are improved√ by constant training.√
- Large multi-national companies may adopt systems√ which have been
proven successful elsewhere in the world.√
- Any other relevant answer related to the positive impact of TQM on large
businesses.
Negatives
- Large quality management structures√ may become ineffective/difficult to
control.√
- Mass production may complicate quality control√ as too many steps/
processes need to be controlled.√
- Large TQM systems are costly√ and may require additional administrative
duties/staff.√
- Lack of training/skills development√ may result in lower productivity.√
- Decline in productivity,√ because of stoppages.√
- Investors might withdraw investment,√ if there is a decline in profits.√
- Bad publicity√ due to poor quality products supplied.√
- Decline in sales,√ as returns from unhappy customer's increase.√
- High turnover of staff,√ because of poor skills development.√
- Undocumented quality control systems/processes could result in error or
deviations√ from pre-set quality standards.√
- Any other relevant answer related to the negative impact of TQM on large
businesses.
Max (8)
[60]
BREAKDOWN OF MARKS
QUESTION 5 MARKS
5.1.1 3
5.1.2 3
5.1.3 6
5.2 4
5.3 6
5.4.1 6
5.4.2 6
5.4.3 6
5.5.1 6
5.5.2 6
5.6 8
TOTAL 60
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Business Studies 27 DBE/Feb.–Mar. 2015
NSC – Memorandum
QUESTION 6: MISCELLANEOUS
6.1 Problem-solving
6.1.1 Challenges
- Motorists refusing to pay.√
- Fake registration plates.√
- Problems in collecting outstanding e-toll-fees.√
Max (2)
6.1.2 Problem solving steps
- Identify the problem.√√
- Define the problem.√√
- Identify possible solutions to the problem.√√
- Facilitate the discussions amongst the persons involved with
problem/evaluate each solution.√√
- Select the most appropriate alternative.√√
- Develop an action plan.√√
- Implement the suggested solution.√√
- Monitor the implementation of the action plan.√√
- Evaluate the chosen solution to the problem.√√
NOTE: 1. Accept steps in any order.
2. Use the above as marking guidelines if another
approach is used.
Max (10)
6.2 Steps in strategy evaluation
- Examine the underlying basis of a business strategy.√√
- Define parameters to be measured.√√
- Define target values for the parameters.√√
- Perform measurements.√√
- Compare expected performance with actual performance.√√
- Take corrective action where necessary.√√
NOTE: Accept steps in any order.
OR
- Examine the set objectives/targets that were set.√√
- Measure the business performance against the original objectives/
targets.√√
- Compare expected performance with the actual performance.√√
- Take correction action where necessary.√√
NOTE: Accept steps in any order.
Max (8)
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NSC – Memorandum
6.3 Benefits of a quality control system
- Effective customer services will be rendered, resulting in an increase in
customer satisfaction.√√
- Time and resources are used efficiently.√√
- Productivity increases through proper time management and use of high
quality resources.√√
- Products and services are constantly improved.√√
- Vision and mission may be achieved.√√
- The business may achieve competitive advantage over its competitors.√√
- Continuous training will improve employees' skills and knowledge.√√
- Increase in market share and profitability of the business.√√
- Any other relevant answer related to the benefits of a quality control
system.
Max (10)
6.4 Concept protected strike
- An authorised/legal strike√ where all the necessary procedures required
by the Labour Relations Act have been followed.√
- Employees cannot be dismissed√ for embarking on a strike/industrial
action.√
- When a deadlock√ in a Bargaining Council/Collective Bargaining
Chamber has been reached.√
- Any other relevant answer related to the concept of protected strike.
Max (6)
6.5 Functions of JSE
- Serves as a link√ between investors and entrepreneurs.√
- Keeps investors informed√ through newspapers and other media by
publishing share prices daily.√
- Regulates market√ for dealing with shares.√
- Serves as a barometer/indicator√ of economic conditions.√
- Mobilises the funds√ of insurance companies and other institutions.√
- Raises√ primary capital.√
- Venture capital market√ is made possible.√
- Provides protection√ for investors.√
- Has strict listing requirements√ which increase liquidity for investors.√
- Creates a safe environment√ for exchanging securities.√
- Forces listed companies to improve their reporting,√ and provide better
information for decision-making by investors.√
- Encourages√ short term investments.√
- Allows small investors to buy shares√ in large companies.√
- Enables financial institutions to invest√ their surplus funds in shares.√
- Enables companies to offer share option incentives,√ which increases
their ability to attract and retain high-quality investment talent.√
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- Monitors change√ in listed companies.√
- Monitors the activities√ of the stockbrokers.√
- Uses STRATE√ to facilitate share transactions.√
- Promotes the JSE to the general public√ and educates the public about
the stock exchange.√
- Plans, researches and advises√ on investment possibilities.√
- Allows shareholders to realise the value of their investments√ through a
public trading platform.√
- Any relevant answer related to the functions of the JSE.
Max (8)
6.6 Employees' well-being
- Pay fair wage/salary to the workers√ based on the nature of work
involved and the prevailing economic conditions in the market.√
- The working conditions must not only consider safety, medical and
canteen facilities√ but also benefits like housing, leave and retirement
etc.√
- Give fair bonuses√ based on the business earnings.√
- Allows for employees' participation√ in decision making.√
- Provide recreational facilities√ for employees.√
- Offer their employees a physical assessment√ by a medical doctor/
practitioner once a year.√
- Offer trauma debriefing/counselling or assistance√ to any employee who
requires these services.√
- Give financial assistance in the case of any hardship√ caused by
unexpected costs, e.g. unforeseen medical costs.√
- Offer flexible working hours√ to enhance productivity.√
- Organise support programmes for employees√ infected and affected by
HIV/Aids.√
- Offer childcare facilities√ at its premises.√
- Any other relevant answer related to the well-being of employees.
(Any 4 x 2) (8)
6.7 Evaluation of PowerPoint
Positives/Advantages
- Has the capacity to convey ideas and support√ what the presenter says.√
- Video clips can provide variety√ and capture the attention of the
audience.√
- It can also include sounds√ to capture the interest of the audience.√
- Most suitable for illustrations√ and demonstrations during presentations.√
- Variation of colour and background immediately capture the attention of
the audience√ and retain their interest throughout the presentation.√
- Presentations can be e-mailed√ and stored on a computer.√
- Any other relevant answer related to positive impact/advantages of
PowerPoint presentation.
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NSC – Memorandum
Negatives/Disadvantages
- Unprofessional handling of PowerPoint presentation material√ may result
in the audience losing interest.√
- Less effective to some people√ e.g. those with audio visual impairments.√
- Cannot be used√ when there is no power/electricity.√
- Presentation can be lost√ if the computer breaks down.√
- Any other relevant answer related to negative impact/disadvantages of
PowerPoint presentation.
Max (8)
[60]
BREAKDOWN OF MARKS
QUESTION 6 MARKS
6.1.1 2
6.1.2 10
6.2 8
6.3 10
6.4 6
6.5 8
6.6 8
6.7 8
TOTAL 60
TOTAL SECTION B: 180
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NSC – Memorandum
SECTION C
QUESTION 7: BUSINESS ENVIRONMENT (Porter's Five Forces and Strategies)
7.1 Introduction
- Porter's Five Forces model helps the business to understand both the
strength of its current competitive position and the advantages of
expanding.√
- Porter's Five Forces model is based on five important forces that
determine competitive power in the market environment of a business.√
- Businesses need to conduct intensive strategic management in order to
solve identified challenges.√
- A strategy is a plan of action to address an opportunity or to solve a
problem.√
- Any other relevant introduction related to the Porter's Five Forces model
and implementing intensive strategies. Max (2)
7.2 Porter's Five Forces
7.2.1 Power of Suppliers√√
- Suppliers of Susan's business include the suppliers of bread
and ingredients.√√
- Susan must assess the power of the suppliers in influencing
prices.√√
- The more powerful the suppliers are, the less control Susan
has over them.√√
- Suppliers that deliver quality ingredients daily may decide to
increase delivery cost and thus may have power over Susan's
business.√√
- The fewer the choice of suppliers, the greater the need for
Susan to seek help as they could become more powerful.√√
- Susan should identify the kind of power her suppliers have in
terms of the quality of their products or services, reliability and
their ability to make prompt deliveries.√√
- Any other relevant answer related to the power of suppliers.
Force: (2)
Discussion: (4)
Max (6)
7.2.2 Power of Buyers (including Intermediaries)√√
- Buyers are the final users of the product/services.√√
- Susan must assess how easy it is for her buyers/customers to
drive prices down.√√
- This will depend on the number of buyers, the importance of
each buyer to her business and the cost of switching to
someone else's products.√√
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NSC – Memorandum
- If Susan's business is dealing with a few powerful buyers, they
are often able to dictate terms to the business.√√
- If Susan's customers can do without her products then they
have more powers to determine the prices and terms of
sales.√√
- Susan must conduct a market research so that she can get
more information about her buyers.√√
- Any other relevant answer related to the power of buyers.
Force: (2)
Discussion: (4)
Max (6)
7.2.3 Power of Competitors√√
- Competitors are businesses selling the same/similar products
or rendering the same/similar services.√√
- Susan must find out how many competitors are there and how
influential they are.√√
- If Susan's competitors/other fast food restaurants have a
unique product or services, then they have greater
strengths.√√
- If Susan has many competitors with similar products then her
business has very little power in the fast food market.√√
- Susan must draw up a competitor's profile of each fast food
restaurant in the area so that she can determine their
strength.√√
- Some competitors have the necessary resources to start price
wars and continue selling at a loss until other competitors
leave the market.√√
- Any other relevant answer related to the power of competitors.
Force: (2)
Discussion: (4)
Max (6)
7.2.4 Threat of Substitution/Substitutes√√
- Substitute products or services are different products/services
that at least partly satisfy the same needs of the consumers
and can be used to replace one another.√√
- Susan must check the sellers of substitute products who have
improved their products or sell lower quality goods at lower
prices.√√
- If Susan's sandwiches can easily be substituted, this weakens
the power of her business in the market.√√
- Substitute products can cause Susan's business to lose its
market share completely.√√
- If Susan's products are unique then she will not be threatened
by substitute products.√√
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- Susan's business operates in an industry where the buyers
tend to switch regularly between different products, so the
threat of substitution is high.√√
- Susan should do a market research to assess if customers are
using substitute products/services and reasons for using these
alternatives.√√
- It is important that Susan changes or improves her sandwiches
to remain competitive.√√
- Any other relevant answer related to the threat of substitution.
Force: (2)
Discussion: (4)
Max (6)
7.2.5 Threat/Barriers of New Entrants to the market√√
- New entrants are other businesses that are selling the
same/similar products in the existing market for the first
time.√√
- The power Susan's business has in the market will depend on
how easy it is for new competitors to enter the market.√√
- If Susan's business is highly profitable, it will attract potential
competitors that want to benefit from high profits.√√
- If the barriers to enter Susan's market are low, then it is easy
for new businesses to enter the market/industry.√√
- New competitors can quickly and easily enter the market, if it
takes little time or money to enter the market.√√
- If there are few suppliers of the product/service but many
buyers then it is easy to enter the market.√√
- Any other relevant answer related to the threats/barriers of
new entrants.
Force: (2)
Discussion: (4)
Max (6) [30]
7.3 Intensive strategies
7.3.1 Market Penetration√√
- New products enter/penetrate an existing market at a low
price, until it is well known to the customers and then the
prices increases.√√
- It is a growth strategy where businesses focus on selling
existing products to existing markets.√√
- Susan should do market research on existing clients to decide
how to improve her marketing mix.√√
- Reduce prices to increase sales.√√
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- Embark on an intensive advertising campaign to increase
awareness and customer loyalty.√√
- Employ more sales staff to improve sales services.√√
- Any other relevant answer related to market penetration.
Strategy: (2)
Discussion: (2)
Sub max (4)
7.3.2 Market Development√√
- It is a growth strategy where businesses aim to sell its existing
products in new markets.√√
- Susan should implement her idea of expanding/selling to other
office blocks in the area.√√
- Find new ways of distributing her sandwiches to other office
blocks, e.g. setting up sandwich stalls outside the other office
blocks.√√
- Restructure pricing policies to cater for customers of all income
levels.√√
- Any other relevant answer related to market development.
Strategy: (2)
Discussion: (2)
Sub max (4)
7.3.3 Product Development√√
- It is a growth strategy where businesses aim to introduce new
products into existing markets.√√
- Susan should improve her product line by adding different
types of sandwiches or related products.√√
- Conduct test marketing/market research to establish whether
new products will be accepted by existing customers.√√
- Ensure that new products are different/of a higher quality/
reasonably priced than those of competitors.√√
- Any other relevant answer related to product development.
Strategy: (2)
Discussion: (2)
Sub max (4)
Max (12)
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NSC – Memorandum
7.4 Conclusion
- With a clear understanding of where power lies, the business can take
advantage from a position of strength, improve a situation of weakness
and avoid taking any wrong steps.√√
- Porter's Five Forces is useful for analysing the power of the business to
yield a favourable return on investment.√√
- This model makes it possible for businesses to analyse how to shift the
power of the forces in their favour.√√
- Although implementing intensive strategies may be costly, it usually
results in growth and continuous improvement.√√
- Any other relevant conclusion related to Porter's Five Forces and
intensive strategies.
(Any 1 x 2) (2)
[40]
BREAKDOWN OF MARK ALLOCATION
DETAILS MAXIMUM TOTAL
Introduction 2
Porter's Five Forces 5 x 6 = 30 Max
Intensive strategies 12 32
Conclusion 2
INSIGHT
Layout 2
Analysis/interpretation 2
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 requirement are not met at all.
QUESTION 8: BUSINESS VENTURE (Insurance)
8.1 Introduction
- Insurance is extremely beneficial to businesses as it provides financial
relief in times of unforeseen financial losses.√
- Business owners should have a clear understanding of the financial
impact of accidents and disasters on their business operations, so that
they can make provision for that in advance.√
- Business owners should be aware of the benefits of contributing towards
compulsory insurance, e.g. UIF and RAF.
- It is important for business owners to understand the difference between
insurable and non-insurable risks.√
- Any other relevant introduction related to insurance.
Max (2)
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8.2 Importance of insurance to businesses
- Transfers the risk from the business/insured to an insurance company/
insurer.√√
- The transfer of the risk is subject to the terms and conditions of the
insurance contract.√√
- Protects the business against theft and loss of stock and/or damages
caused by natural disasters such as floods, storm damage, etc.√√
- The business will be compensated for insurable losses, e.g. destruction
of property through fire.√√
- Business assets, e.g. vehicles/equipment/buildings need to be insured
against damage and/or theft.√√
- Business is protected against the loss of earnings e.g. strikes by
employees result in losses worth millions of rands.√√
- Protects the business against deeds of dishonesty by employees.√√
- Insurance can be taken against the life of partners in a partnership.√√
- Should the services of key personnel be lost due to accidents or death,
the proceeds of an insurance policy can be paid out to the business/
beneficiaries.√√
- Replacement costs for damaged machinery and equipment are very high,
therefore, insurance can reduce/cover these costs.√√
- Any other relevant answer related to the importance of insurance to
businesses.
Max (10)
8.3 Differences between insurance and assurance
INSURANCE ASSURANCE
- Provides short term cover.√√ - Provides long term cover.√√
- Event may occur.√√ - Event will definitely occur.√√
- E.g. Insures a building against fire, - E.g. to provide for financial
storm damage etc.√√ security after retirement or
death, etc.√√
- Amount of compensation is - Amount is pre-determined when
determined by the extent of the agreement is drawn up.√√
damage and insured amount.√√
- Compensation may/may not be - Compensation will be paid
paid out.√√ out.√√
- Any other relevant answer related - Any other relevant answer
to insurance. related to assurance.
Sub max (4) Sub max (4)
Max (8)
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8.4 Principles of Insurance
Indemnification/Indemnity√√
- Applicable to short term insurance.√√
- Insured is restored to almost the same financial position as before the
loss occurred.√√
- Neither the insurer nor the insured may profit from insurance.√√
- Principle of re-instatement may be applied if the item was over-insured.√√
- In the case of under-insurance only a portion of the loss will be
refunded.√√
- Any other relevant answer related to the principle of indemnification/
indemnity.
Sub max (4)
Security√√
- Applicable to long/short term insurance/life assurance.√√
- Insurer undertakes to pay out a pre-determined amount in the event of
the death/reaching a certain age/personal injury of the insured.√√
- Aim is to provide financial security to the insured at retirement/the
dependants of the deceased.√√
- Any other relevant answer related to the principle of security.
Sub max (4)
Utmost good faith√√
- Insured has to be honest in supplying details when entering into the
insurance contract.√√
- Details/Information supplied when claiming should be accurate/true.√√
- Any other relevant answer related to the principle of utmost good faith.
Sub max (4)
Insurable interest√√
- Insured will suffer a financial loss/liability as a result of an insurable
risk.√√
- Insured must have a legal relationship with the object insured in the
contract, e.g. a man is legally married to his wife, he can insure her life.
√√
- Any other relevant answer related to the principle of insurable interest.
NOTE: Mark first TWO only.
Principle (2)
Description (2)
Max (8)
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8.5 Insurable risks vs. Non-Insurable risks
INSURABLE RISKS NON-INSURABLE RISKS
- Businesses are compensated for - These risks are not insured by
losses arising from specified insurance companies/It remains
risks.√√ the responsibility of the
business.√√
(2) (2)
Any TWO examples: Any TWO examples:
- Fire.√ - Losses caused by war.√
- Theft and burglary.√ - Most risks occurring in the period
- Storm/Damage during natural between placing orders and
disasters.√ receiving goods.√
- Life insurance.√ - Changes in fashion.√
- Vehicle insurance (includes theft, - Shoplifting (recurrent
hi-jacking, accidents, etc.).√ expenditure/risk too high).√
- Public liability insurance.√ - Losses caused by marketing
- Fidelity insurance.√ malpractices on the part of the
- Money-in-transit.√ business.√
- Unemployment insurance.√ - Advancement in technology/new
- Any other relevant answer machinery invention.√
related to examples of insurable - Any other relevant answer
risks. related to examples of non-
insurable risks.
(2 x 1) (2) (2 x 1) (2)
Sub max (4) Sub max (4)
Max (8)
NOTE: 1. Although bad debts are generally not insurable risks, they
can be insured if certain conditions are met.
2. Mark first TWO examples for each one.
8.6 Benefits of UIF and RAF to business
8.6.1 Unemployment Insurance Fund (UIF)
- The UIF provides benefits (such as unemployment, maternity,
etc.) to workers who have been working and become
unemployed for various reasons, so the business is not solely
responsible to make provision in this regard.√√
- Businesses only contribute 1% (of a total of 2%) towards UIF,
therefore reducing the expenses of providing UIF benefits
themselves.√√
- Affordable contributions may make it possible for businesses
to appoint substitute workers in some instances.√√
- As the UIF also pays out to dependants of deceased
contributors, the business cannot be held responsible in this
regard.√√
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- Any other relevant answer related to the benefits to
businesses of contributing to the UIF.
Sub max (6)
8.6.2 Road Accident Fund (RAF)
- The RAF provides compulsory cover for all road users in South
Africa, which include South African businesses.√√
- As drivers of business vehicles are indemnified against claims
by persons injured in vehicle accidents/claims of dependants
of people killed in vehicle accidents, the responsibility for these
claims may be reduced.√√
- The next of kin of workers who are injured or killed in road
accidents, may claim directly from RAF, so businesses cannot
be held totally responsible in this regard.√√
- Any other relevant answer related to the relevance to
businesses of contributions to the RAF.
Sub max (6)
Max (8)
8.7 Conclusion
- Insurance plays an important role in securing the future of businesses as
it provides a guarantee of compensation for specified loss, damage,
illness or death.√√
- Taking out comprehensive insurance on assets and other specified
losses is regarded as sound business practice.√√
- Any other relevant conclusion related to insurance.
(Any 1 x 2) (2)
[40]
BREAKDOWN OF MARK ALLOCATION
DETAILS MAXIMUM TOTAL
Introduction 2
Importance 10
Insurance vs. Assurance 8
Max
Principles 8
32
Insurable vs. Non-insurable 8
Benefits of UIF and RAF 8
Conclusion 2
INSIGHT
Layout 2
Analysis/Interpretation 2
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 requirement are not met at all.
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NSC – Memorandum
QUESTION 9: BUSINESS ROLE (Team performance)
9.1 INTRODUCTION
- Team work refers to a number of people collaborating/working together
effectively in order to reach a common goal.√
- Each team member should contribute towards the success of the team.√
- Successful teams go through different stages of team development in
order to become successful/effective.√
- The success of a business depends on the successful collaboration
within a team to contribute to the objectives of the business.√
- Diversity in teams may lead to better ideas/solutions, but may also cause
conflict.√
- Conflict is a result of differences in values and attitudes.√
- Effective conflict management may have a positive influence on team
performance.√
- Poor conflict management may lead to team failure or the dissolution of a
team.√
- Any other relevant introduction to team work and conflict bearing in mind
Chicky Fried Chicken.
Max (2)
9.2 Stages of team development
- Forming√√
• A team is formed consisting of different individuals, who will have to
work together towards a common goal.√√
• Team members volunteer to work together.√√
• Formed to solve a problem/challenge.√√
• Individuals are driven by the desire to be accepted by the other team
members.√√
• Team members gather information about each other/the objectives of
the team.√√
• This is a good opportunity to see how each member performs as an
individual and how he/she responds to pressure.√√
• Any other relevant answer related to the formation of a team.
Sub max (4)
- Storming√√
• After the team has been formed, it goes through a period of
uneasiness known as storming.√√
• Different ideas are stormed for consideration.√√
• Team members open up to each other and confront each other's
ideas/perspectives.√√
• This stage is necessary/important for the growth of the team.√√
• Team members should be tolerant of/patient with each other to
survive this stage.√√
• Any other relevant answer related to the storming stage of a team.
Sub max (4)
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- Norming√√
Team members:
• Agree on a mutual/common plan for the team.√√
• Consider their own ideas, but agree with others to make the team
perform well.√√
• Take the responsibility/have the ambition to work towards the
success of the team.√√
• May focus too much on preventing conflict that they become reluctant
to share controversial ideas.√√
• Any other relevant answer related to the norming stage of a team.
Sub max (4)
- Performing√√
Team members:
• Know each other and can function as a unit.√√
• Find ways to get the job done smoothly without conflict/external
supervision.√√
• Are motivated/knowledgeable/competent/able to handle the decision
making process in the team.√√
• Will make the most of necessary decisions to work towards a
common goal.√√
• Will go through all four stages many times as they encounter
changing circumstances.√√
• Any other relevant answer related to the performing stage of a team.
Sub max (4)
- Adjourning/Mourning√√
• 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.√√
• Any other relevant answer related to the adjourning/mourning stage
of a team.
Sub max (4)
NOTE: Accept adjourning/mourning as one of the other team stages.
Max (12)
9.3 Possible causes of conflict within a team
- Lack of proper communication between leaders and members.√√
- Ignoring rules/procedures may result in disagreements and conflict.√√
- Leaders and/or members may have different personalities/
backgrounds.√√
- Different values/levels of knowledge/skills/experience of team
members.√√
- Little/no co-operation between internal and/or external parties/
stakeholders.√√
- Lack of recognition for good work, e.g. a leader may not show
appreciation for extra hours worked to meet deadlines.√√
- Lack of member development may increase frustration levels as members
may repeat errors due to a lack of knowledge/skills.√√
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- Unfair disciplinary procedures, e.g. favouritism.√√
- Little/no support from management with regard to supplying the
necessary resources.√√
- Leadership styles used, e.g. autocratic leaders may not consider
members' inputs.√√
- Unrealistic deadlines and 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 members 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 possible causes of conflict.
Max (8)
9.4 Conflict resolution procedure/steps
- Identify/Acknowledge that there is conflict.√√
- Analyse the cause(s) of conflict by breaking it down into different parts.√√
- Pre-negotiations may be arranged where members will be allowed to
state their case/views separately.√√
- Arrange a meeting between conflicting team members.√√
- A time and place for discussion is arranged for negotiations where all
members are present.√√
- Each member has the opportunity to express his/her own opinions/
feelings/Conflicting members may recognise that their views are
different.√√
- Devise/Brainstorm possible ways of resolving the conflict.√√
- Conflicting members agree on criteria to evaluate the alternatives.√√
- The best possible solution(s) is/are selected and implemented.√√
- Evaluate/Follow up on the implementation of the solution(s).√√
- Monitor progress to ensure that the conflict has been resolved.√√
- Any other relevant answer related to a positive analysis of conflict
resolution techniques.
Max (10)
9.5 Criteria for team's success
- Clearly defined and realistic goals are set, so that all the members know
exactly what is to be accomplished.√√
- Commitment by members to the common goal.√√
- Agreement on methods/ways to get the job done effectively without
wasting time on conflict resolution.√√
- A clear set of processes/procedures for team work, will ensure that every
team member understands his/her role.√√
- The team to operate as a co-ordinated/organised unit.√√
- All members to take part in decision making.√√
- Ability to communicate well and make quick decisions.√√
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- Team leader should acknowledge/give credit to members for positive
contributions.√√
- Team members to respect and trust each other.√√
- Passionate/Committed/Focused members will ensure positive results
despite problems/distractions.√√
- Good/Sound interpersonal relationships will ensure job satisfaction and
increased productivity of the team.√√
- Respect the knowledge and skills of other members.√√
- New skills acquired by members may contribute to the success/
effectiveness of the team.√√
- A balanced composition of skills, knowledge, experience and expertise
will ensure that teams achieve their objectives.√√
- Continuous review of the team's progress will ensure that team members
can rectify mistakes/act pro-actively to ensure that goals/targets are
reached/met.√√
- Any other relevant answer related to the criteria for successful teams.
Max (10)
9.6 Conclusion
- Effective team work will contribute to achieving goals and improve
productivity.√
- Continuous team assessment will ensure that teams remain focused on
the tasks/targets.√
- Constructive/Positive conflict should be encouraged to promote creativity
and effective problem solving.√
- Teams generally take longer to arrive at a decision.√
- The use of teams may have greater cost implications.√
- Any other relevant conclusion related to team performance and conflict
management. (Any 1 x 2) (2)
[40]
BREAKDOWN OF MARK ALLOCATION
DETAILS MAKSIMUM TOTAL
Introduction 2
Stages of team development 12
Causes of conflict 8 Max
Conflict resolution techniques 10 32
Criteria for successful teams 10
Conclusion 2
INSIGHT
Layout 2
Analysis/Interpretation 2
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 requirement are not met at all.
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QUESTION 10: BUSINESS OPERATION (Human Resources function)
10.1 Introduction
- The objective of recruitment is to attract the best possible applicants with
the required skills, qualifications and competency to fill vacancies in a
business.√
- All recruitment procedures should be conducted within the framework of
the Employment Equity Act (EEA) to ensure fairness.√
- Shortlisted applicants should be interviewed in order to evaluate their
suitability for the job.√
- Any other relevant introduction related to recruitment, interviewing and the
EEA. Max (2)
10.2 Types of recruitment
10.2.1 Internal Recruitment√√
Positives
- The business recruits from existing employees through
promotions/transfer from inside the business.√√
- Opportunities for promotion reward good work and motivate
current employees.√√
- Staff morale and productivity increases if suitable staff
members are promoted regularly.√√
- Current employees understand how the business operates.√√
- The business knows the candidate, his/her personality,
strengths and weaknesses.√√
- Reliable/Key staff members are retained if they are promoted/
transferred within the business.√√
- Detailed, reliable information on candidates can be obtained
from super-visors/employee records.√√
- Recruitment process is faster and less expensive if the
candidates are known.√√
- Any other relevant answer related to positive aspects of
internal recruitment.
Negatives
- Current employees may not bring new ideas into the
business.√√
- Promoting a current employee may cause resentment
amongst other employees.√√
- The number of applicants is limited to current staff only.√√
- Employees who do not really have the required skills for the
new job may be promoted.√√
- Current employees may need to be trained/developed before
they can be promoted, which can be expensive.√√
- Staff that is not promoted may feel demotivated which may
hamper productivity.√√
- Any other relevant answer related to negative aspects of
internal recruitment. Sub max (10)
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10.2.2 External Recruitment√√
Positives
- The business recruits from other businesses/educational
institutions/advertisements in the media/recruitment agencies/
headhunting, etc.√√
- New candidates bring new talents/ideas/experiences/skills into
the business.√√
- It may help the business to meet affirmative action and BBBEE
plans.√√
- There is a larger pool of candidates to choose from.√√
- There is a better chance of getting a suitable candidate with
the required skills/qualifications/competencies who do not
need much training/development which reduce costs.√√
- Minimises unhappiness/conflict amongst current employees
who may have applied for the post.√√
- Any other relevant answer related to positive aspects of
external recruitment.
Negatives
- External sources can be expensive, e.g. recruitment agencies'
fees and advertisements in newspapers/magazines.√√
- The selection process may not be effective and an
incompetent candidate may be chosen.√√
- Information on CV's or from references may not be reliable.√√
- Recruitment process takes longer/is more expensive as
background checks must be conducted.√√
- New candidates generally take longer to adjust to a new work
environment.√√
- In-service training may be needed which decreases
productivity during the time of training.√√
- Many unsuitable applications can slow down the selection
process.√√
- Any other relevant answer related to negative aspects of
external recruitment.
Sub max (10)
Max (16)
10.3 Interviewing
10.3.1 Purpose
- Obtains information about the strengths and weaknesses of
each candidate.√√
- Helps the employer in choosing/making an informed decision
about the most suitable candidate.√√
- Matches information provided by the applicant to the job
requirements.√√
- Creates an opportunity where information about the business
and applicant can be exchanged.√√
- Any other relevant answer related to the purpose of an
interview. Max (4)
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10.3.2 Role of the Interviewer
- Develop a core set of questions based on the required skills,
knowledge and ability required.√√
- Check the application and verify the CV for anything that may
need to be explained.√√
- Book and prepare the venue for the interview.√√
- Set the interview date and ensure that all interviews take place
on the same date, if possible.√√
- Inform all shortlisted candidates about the date/place of the
interview.√√
- Notify all panel members conducting the interview about the
date/place of the interview.√√
- Allocate the same amount of time to each candidate.√√
- Introduce members of the interviewing panel to each
candidate/interviewee.√√
- Make the interviewee feel at ease.√√
- Explain the purpose of the interview to the panel and the
interviewee.√√
- Do not misinform/mislead the interviewee.√√
- Avoid discriminatory/controversial types of questions, e.g.
asking a female candidate about family planning/having
children.√√
- Provide an opportunity for the interviewee to ask questions.√√
- Close the interview by thanking the interviewee for attending
the interview.√√
- Any other relevant answer related to the role of the interviewer.
Max (8)
10.4 Impact of employment equity act (EEA) on businesses
Positives
- Discriminatory appointments are discouraged.√√
- Equal opportunities and fair treatment are promoted.√√
- Appointment process is clearly defined, so all parties are well informed.√√
- Certified psychometric tests may be used to assess applicants/
employees to ensure that suitable candidates are appointed.√√
- Outlines affirmative action measures to redress past injustices.√√
- Diversity/Inclusivity in the workplace can be achieved.√√
- Consultation between employer and employees are encouraged.√√
- Businesses are in a better position to negotiate contracts with the
government.√√
- Impacts positively on BBBEE ratings for businesses.√√
- Any other relevant positive impact of EEA on making new appointments.
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Business Studies 47 DBE/Feb.–Mar. 2015
NSC – Memorandum
Negatives
- Applying the employment equity quota may not always allow employers
to make the most suitable appointment.√√
- Productivity may decrease, as inexperienced employees may be
appointed into positions where they may not be able to cope.√√
- Other groups may not respect the knowledge, skills and experiences of
an EEA appointee. They think the position was awarded based on race
and not on skills.√√
- Skilled people from designated groups are in strong demand and may
demand higher salaries/do job hopping, which may result in high staff
turnover.√√
- Additional and costly administrative duties are required for implementing/
monitoring the Employment Equity Plan.√√
- The implementation of employment equity can be costly to businesses as
it requires investment in training.√√
- Additional resources should be made available to execute the
Employment Equity Plan, resulting in sufficient funds not being made
available for profit opportunities.√√
- Diversity in the workplace may lead to conflict/unhappiness.√√
- Employers who want to apply for government tenders must apply for a
compliance certificate with the Minister of Labour, resulting in increased
expenses.√√
- Non-compliance with the administrative requirements of the EEA may
result in the payment of heavy penalties.√√
- Position may remain unfilled, because there are no suitable EEA
candidates.√√
- Any other relevant negative impact of EEA on making new appointments.
Max (12)
10.5 Conclusion
- Employees are the most important resource in any business and its
success is strongly influenced by recruiting and appointing quality
employees.√√
- A well prepared and organized interview process will result in identifying
and appointing the most suitable and deserving candidate.√√
- The EEA not only promotes and regulates affirmative action, but also
gives guidance in conducting a fair appointment process.√√
- Any other relevant conclusion related to recruitment, interviewing and
EEA. (Any 1 x 2) (2)
[40]
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NSC – Memorandum
BREAKDOWN OF MARK ALLOCATION
DETAILS MAXIMUM TOTAL
Introduction 2
Types of recruitment 16
Purpose of interviews 4 Max
Role of: Interviewer 8 32
Impact of EEA 12
Conclusion 2
INSIGHT
Layout 2
Analysis/Interpretation 2
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.
TOTAL SECTION C: 80
GRAND TOTAL: 300
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