# Business Studies Grade 12 P1 NSC June 2022 Memo (English)

> Grade 12 Business Studies Paper 1 memorandum from the NSC June Exam 2022 (English), 25 pages. Read online or download the free PDF.

- Page: https://www.hlayiso.com/library/business-studies-p1-may-june-2022-mg-eng/f94ac880-4a17-44d4-8c78-0c636307522a
- Updated: 2026-10-29
- Subject: Business Studies
- Grade: Grade 12
- Document type: Memorandum
- Year: 2022
- Exam period: NSC June Exam
- Paper: 1
- Curriculum: CAPS
- Pages: 25

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Business Studies · Grade 12 · NSC June Exam · 2022. Memorandum. Read online or download the PDF.

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             SENIOR CERTIFICATE EXAMINATIONS/
         NATIONAL SENIOR CERTIFICATE EXAMINATIONS

                               BUSINESS STUDIES P1

                                          2022

                                MARKING GUIDELINE

                                                                      MARKS: 150

                       This marking guideline consist of 25 pages.

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Business Studies/P1                          2                                      DBE/2022
                                  SC/NSC – Marking Guideline

NOTES TO MARKERS

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

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

1.       For marking and moderation purposes, the following colours are recommended:

         Marker:                       Red
         Senior Marker:                Green
         Deputy Chief Marker:          Black/Blue
         Chief Marker:                 Pink
         Internal Moderator:           Orange
         DBE Moderator:                Turquoise

2.       Candidates' responses must be in full sentences for SECTIONS B and C.
         However, this would depend on the nature of the question.
3.       A comprehensive marking guideline has been provided but this is by no means
         exhaustive. Due consideration should be given to an answer that is correct but:
            Uses a different expression from that which appears in the marking
             guideline
            Comes from another credible source
            Original
            A different approach is used
          NOTE: There is only ONE correct answer in SECTION A.

4.       Take note of other answers, provided by candidates, which relate to a particular
         question 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 'Submax' is used to facilitate the allocation of marks within a question
         or sub-question.

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

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

8.       In an indirect question, the theory as well as the response must be relevant and
         related to the question.
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Business Studies/P1                             3                                        DBE/2022
                                     SC/NSC – Marking Guideline

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

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

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

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

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

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

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

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

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

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

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Business Studies/P1                                4                                     DBE/2022
                                        SC/NSC – Marking Guideline

14.      SECTION B

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

         NOTE: 1.         This applies only to questions where the number of facts is
               2.         specified.
                          The above also applies to responses in SECTION C. (where
                          applicable)

14.2     If two facts are written in one sentence, award the candidate FULL credit.
         Point 14.1 above still applies.

14.3     If candidates are required to provide their own examples/views, brainstorm this
         at the marking centre and refer to the DBE internal moderator to finalise the
         alternative answers in consultation with the UMALUSI external moderators.

14.4     Use of the cognitive verbs and allocation of marks:

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

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

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

15.      SECTION C

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

          Introduction
                                            Maximum:
          Content
                                               32
          Conclusion
          Insight                               8
          TOTAL                                 40

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Business Studies/P1                          5                                    DBE/2022
                                  SC/NSC – Marking Guideline

15.2      Insight consists of the following components:
          Layout/Structure Is there an introduction, paragraphs and a conclusion?          2
          Analysis and     Is the candidate able to break down the question into           2
          interpretation   headings/subheadings/interpret it correctly to show
                           understanding of what is being asked?
                           Marks to be allocated using this guide:
                           All headings addressed:            1 (One 'A')
                           Interpretation (16 to 32 marks): 1 (One 'A')
          Synthesis          Are there relevant decisions/facts/responses made based       2
                             on the questions?
                             Marks to be allocated using this guide:
                             Option 1:    Only relevant facts: 2 marks (No '-S')
                                          Where a candidate answers 50% or more
                                          (two to four sub-questions) of the question
                                          with only relevant facts; no '-S' appears in the
                                          left margin. Award the maximum of TWO (2)
                                          marks for synthesis.
                             Option 2:    Some relevant facts: 1 mark (One '-S')
                                          Where a candidate answers less than 50%
                                          (only one sub-question) of the question with
                                          only/some relevant facts; one '-S' appears in
                                          the left margin. Award a maximum of ONE (1)
                                          mark for synthesis.
                             Option 3:    Some relevant facts: 1 mark (One '-S')
                                          Where a candidate writes FOUR sub-
                                          questions, but one/two/three sub-question
                                          with irrelevant facts; one '-S' appears in the
                                          left margin. Award a maximum of ONE (1)
                                          mark for synthesis.
                             Option 4:    No relevant facts:      0 marks (Two '-S')
                                          Where a candidate answers less than 50%
                                          (only one sub-question) of the question with
                                          irrelevant facts; two '-S' appear in the left
                                          margin. Award a ZERO mark for synthesis.
          Originality        Is there evidence of one or two examples, not older than      2
                             two (2) years, that are based on recent information,
                             current trends and developments?
                                                                   TOTAL FOR INSIGHT: 8
                                                           TOTAL MARKS FOR FACTS: 32
                                                   TOTAL MARKS FOR ESSAY (8 + 32): 40

          NOTE: 1. No marks will be awarded for contents repeated from the
                   introduction and conclusion.

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

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

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Business Studies/P1                            6                                       DBE/2022
                                    SC/NSC – Marking Guideline

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

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

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

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

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

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

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

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

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

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

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

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

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Business Studies/P1                         7                                  DBE/2022
                                 SC/NSC – Marking Guideline

SECTION A

QUESTION 1

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

1.2      1.2.1    strategic management√√
         1.2.2    National Skills√√
         1.2.3    piecemeal√√
         1.2.4    SWOT √√
         1.2.5    do√√
                                                                              (5 x 2)        (10)

1.3       1.3.1   G√√
          1.3.2   E√√
          1.3.3   F√√
          1.3.4   B√√
          1.3.5   I√√
                                                                              (5 x 2)     (10)

                                                                 TOTAL SECTION A:         30

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

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Business Studies/P1                          8                                      DBE/2022
                                  SC/NSC – Marking Guideline

SECTION B

Mark the FIRST TWO answers only.

QUESTION 2: BUSINESS ENVIRONMENTS

2.1     Provisions of the Basic Conditions of Employment Act/BCEA
        - Regulation of working time/Ordinary hours of work/overtime/meal intervals and
           rest periods/Sunday work/public holidays. √
        - Leave/annual/sick/family responsibility/maternity/paternity/parental. √
        - Particulars of employment and remuneration. √
        - Termination of employment. √
        - Prohibition of employment of children and forced labour. √
        - Any other relevant answer related to the provisions of the BCEA.
        NOTE: Mark the first FOUR (4) only.
                                                                                  (4 x 1) (4)

2.2     Meaning of learnerships
        - Agreement between a learner/trainee and an employer/a training provider√ to
          use the workplace as an active learning environment. √
        - Theoretical/Practical training opportunities√ that can lead to a recognised
          occupational qualification. √
        - Structured learning programme√ completed during work hours for a specified
          period of time. √
        - May include employment for a specified period√ after a learnership is
          completed. √
        - Includes a training course with learning material√ as well as practical work
          experience. √
        - Any other relevant answer related to the meaning of learnerships.
                                                                                    Max (4)

2.3   PESTLE factor
2.3.1 Technological√√                                                                    (2)

2.3.2    Ways in which businesses can deal with challenges posed by the
         technological factors
        - Conduct continuous research√ on the latest available technology/equipment in
           the market. √
        - Train existing/appoint new employees√ to maintain/use new equipment√/Provide
           employees with necessary knowledge and skills√ needed to provide services. √
        - Compare prices/Select suitable suppliers√ for new equipment at reasonable
           prices. √
        - RT/Businesses must be geared√ for online trading/e-commerce. √
        - Any other relevant answer related to ways in which RT/businesses can deal with
           the challenges posed by technology as a PESTLE factor.
        NOTE: Accept relevant facts if the PESTLE factor was incorrectly identified as
               an answer in QUESTION 2.3.1.
                                                                                Max (4)

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Business Studies/P1                             9                                  DBE/2022
                                     SC/NSC – Marking Guideline

2.4   Funding of SETAs
       - Skills Development levies are paid by employers√ to SARS as a collecting agency
         for the government. √
       - Employers who have a salary bill that exceeds R500 000 per annum, √ should
         pay one percent (1%) of their annual salaries as a levy. √
       - The different SETAs receive eighty percent (80%) of the levy for organisational
         expenses√ and the remaining twenty percent (20%) is paid to the National Skills
         Fund. √
       - Donations/grants received √ from the public/businesses/CSI programmes. √
       - Surplus funds received √ from government institutions. √
       - Funds received√ from rendering their services. √
       - Any other relevant answer related to how SETAs are funded.
                                                                                 Max (4)
2.5    Positive impact of the Employment Equity Act/EEA
       - Encourages consultation√ between employer and employees. √
       - Promotes equal opportunity√ and fair treatment in the workplace√
       - Impacts positively√ on BEE ratings for businesses. √
       - Appointment process is clearly defined√, so all parties are well informed. √
       - Motivates employees because the workforce √ is more diverse/representative/
         inclusive. √
       - Motivates employees because everyone has√ the same employment
         opportunities. √
       - Promotes the implementation of affirmative action measures√ to redress the
         imbalances in employment. √
       - Provides employees with legal recourse√ if they have been unfairly discriminated
         against. √
       - Provides all employees with an equal opportunity√ to be selected/appointed/
         promoted in a position. √
       - Prevents unfair discrimination√ as it ensures that the workforce represents the
         demographics of the country. √
       - Creates a framework√ of acceptable employment practices/affirmative action
         measures. √
       - Encourages diversity in business√ by employing people from various racial
         backgrounds. √
       - Businesses are in a better position√ to negotiate contracts with the government. √
       - Certified psychometric tests may be used√ to assess applicants/employees to
         ensure that they are suitable for the vacancy. √
       - Any other relevant answer related to the positive impact of the EEA on
         businesses.
                                                                                  Max (6)
2.6   Strategy evaluation
2.6.1 Steps in strategy evaluation from the scenario
      - The management of JE set specific dates for control and follow up as part of their
         inspection programme. √
      - They also implement corrective actions when deviations occur. √

        NOTE:        1.   Mark the first TWO (2) only.
                     2.   Only award marks for responses that are quoted from the
                          scenario.
                                                                               (2 x 1) (2)

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Business Studies/P1                           10                                   DBE/2022
                                    SC/NSC – Marking Guideline

2.6.2 Other steps in strategy evaluation
      - Examine the underlying basis√ of a business strategy. √
      - Look forward and backwards√ into the implementation process. √
      - Compare the expected performance√ with the actual performance. √
      - Determine the reasons for deviations√ and analyse these reasons. √
      - Draw up a table of the advantages and disadvantages√ of a strategy. √
      - Decide on the desired outcome√ that will result in the achievement of business
        goals. √
      - Consider the impact of the strategic implementation√ in the internal and external
        environments of the business. √
      - Any other relevant answer related to other steps in strategy evaluation.
        NOTE:        1.   Accept the steps in any order.
                     2.   Do not award marks for responses that are quoted from the
                          scenario in QUESTION 2.6.1.
                                                                                 Max (6)

2.7   Application of Porter's Five Forces model
2.7.1 Power of suppliers
      - Suppliers that deliver high quality products may have power over the
        business. √√
      - Assess the power of the suppliers in influencing prices. √√
      - The more powerful the suppliers, the less control the business has over
        them. √√
      - The smaller the number of suppliers, the more powerful they may be as the
        choice of suppliers may be limited. √√
      - Assess the kind of power suppliers' have in terms of quality
        services/reliability/ability to make prompt deliveries. √√
      - Any other relevant answer related to how businesses could apply power of
        suppliers as a force of Porter's Five Forces model to analyse their position in the
        market environment.
                                                                                   Max (4)

2.7.2 Power of competitors/Competitive rivalry
      - Competitors selling the same/similar products/services may have a greater
        impact on the market of the business. √√
      - If competitors have a unique product/service, then they will have greater
        power. √√
      - A business with many competitors in the same market has very little power in
        their market. √√
      - Some businesses have the necessary resources to start a price war and to
        continue selling at a loss until some/all competitors leave the market. √√
      - Competitors using various pricing and marketing strategies, are likely to have
        power over the business. √√
      - Any other relevant answer related to how businesses could apply power of
        competitors/competitive rivalry as a force of Porter's Five Forces model to
        analyse their position in the market environment.
                                                                                   Max (4)
                                                                                      [40]

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Business Studies/P1                        11                                      DBE/2022
                                 SC/NSC – Marking Guideline

                                                               BREAKDOWN OF MARKS
                                                                 QUESTION 2 MARKS
                                                                     2.1       4
                                                                     2.2       4
                                                                    2.3.1      2
                                                                    2.3.2      4
                                                                     2.4       4
                                                                     2.5       6
                                                                    2.6.1      2
                                                                    2.6.2      6
                                                                    2.7.1      4
                                                                    2.7.2      4
                                                                   TOTAL      40

QUESTION 3: BUSINESS OPERATIONS
3.1    Sources of external recruitment
       - Recruitment agencies√
       - Bill boards √
       - Printed media such as newspapers/flyers/pamphlets/magazines/posters/
         government gazette√
       - Electronic media such as radio/Internet/TV √
       - Social media/Social networks/Business websites√
       - Walk-ins√
       - Head hunting√
       - Professional associations√
       - Networking√
       - Educational/Training institutions√
       - Word-of-mouth √
       - Any other relevant answer related to sources of external recruitment.
       NOTE: Mark the first TWO (2) only.
                                                                               (2 x 1) (2)
3.2    Placement procedure
       - Businesses should outline the specific responsibilities of the new position,
          including the expectations/skills required for this position. √√
       - Determine the successful candidate's strengths/weaknesses/interests/skills by
          subjecting him/her to a range of psychometric tests. √√
       - Determine the relationship between the position and the competencies of the
          new candidate. √√
       - Any other relevant answer related to the placement procedure as a human
          resource activity.
                                                                                   Max (4)
3.3   Selection procedure
3.3.1 Selection procedure from the scenario
      - They conducted preliminary interviews as there were many applicants. √
      - KCF gave a written offer for the job to the successful candidate. √
       NOTE 1. Mark the first TWO (2) only.
               2. Only award marks for responses that are quoted from the
                   scenario.
                                                                            (2 x 1) (2)

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Business Studies/P1                       12                                     DBE/2022
                                SC/NSC – Marking Guideline

3.3.2 Other steps in the selection procedure
      OPTION 1
      - Determine fair assessment criteria√ on which selection will be based. √
      - Receive the application forms/curriculum vitae√ and certified copies of personal
         documents/IDs/proof of qualifications. √
      - Sort the received documents/CVs√ according to the assessment/selection
         criteria. √
      - Screen/Determine which applications meet the minimum job requirements√ and
         separate these from the rest. √
      - Reference checks should be made√ to verify the content of CVs such as
         contacting previous employers to check on their work experience. √
      - Compile a shortlist√ of potential candidate’s identified. √
      - Shortlisted candidates may be subjected√ to various types of selection tests
         such as skills tests. √
      - Invite shortlisted candidates√ for an interview. √
      - Inform unsuccessful applicants√ about the outcome of their application√/Some
         adverts indicate the deadline√ for informing only successful candidates. √
      - Any other relevant answer related to other steps in the selection procedure.

                                          OR
         OPTION 2
       - Receive documentation√ such as application forms and sort it according to the
         criteria of the job. √
       - Evaluate CVs √ and create a shortlist/screen the applicants. √
       - Check information in the CVs√ and contact references. √
       - Assess/Test candidates who have applied for senior positions√ to ensure the
         best candidate is chosen. √
       - Conduct interviews√ with shortlisted candidates. √
       - Any other relevant answer related to other steps in the selection procedure.
        NOTE: 1. The procedure may be in any order.
                 2. Do not award marks for responses that are quoted from the
                       scenario in QUESTION 3.3.1.
                                                                                 Max (6)

3.4    Impact of fringe benefits
       Positives/Advantages
       - Attractive fringe benefit packages√ may result in higher employee
          retention/reduces employee turnover. √
       - Attracts qualified/skilled/experienced employees√ who may positively contribute
          towards the business goals/objectives. √
       - Improves productivity√ resulting in higher profitability. √
       - It increases employee satisfaction/loyalty√ as they may be willing to go the
          extra mile. √
       - Businesses save money√ as benefits are tax deductible. √
       - Fringe benefits can be used as leverage√ for salary negotiations. √
       - Any other relevant answer related to the positive impact/advantages of fringe
          benefits on businesses.
                                           AND/OR

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Business Studies/P1                           13                                   DBE/2022
                                    SC/NSC – Marking Guideline

       Negatives/Disadvantages
       - Businesses which cannot offer fringe benefits√ fails to attract skilled workers. √
       - Businesses which offer employees different benefit plans√ may create
         resentment√/Employees who receive less benefit may not be motivated√
         resulting in lower productivity. √
       - It can create conflict/lead to corruption√ if allocated unfairly. √
       - Fringe benefits are additional costs√ that may result in cash flow problems. √
       - Decreases business profits, √ as incentive/package/remuneration costs are
         higher. √
       - Administrative costs increase√ as benefits need to be correctly recorded for tax
         purposes. √
       - Workers only stay with the business for fringe benefits, √ and may not be
         committed/loyal to the tasks/business. √
       - Businesses have to pay advisors/attorneys√ to help them create benefit plans
         that comply with legislation. √
       - Errors in benefit plans√ may lead to costly lawsuits/regulatory fines. √
       - Any other relevant answer related to the negative impact/disadvantages of
         fringe benefits on businesses.
                                                                                    Max (6)
3.5    Quality indicators of the administration function
       - Fast and reliable data capturing and processing systems. √√
       - Make reliable information available to management on time. √√
       - Make relevant information available for quick decision-making. √√
       - Handle complaints quickly and effectively. √√
       - Use modern technology efficiently. √√
       - Implement effective risk management policies to minimise business losses. √√
       - Quality assurance/Control/Evaluation is recorded accurately. √√
       - All documentation is kept neatly and orderly in a safe place. √√
       - Easy to recall and find information/documentation. √√
       - Financial documents are kept up to date and recorded accurately. √√
       - All systems and processes are documented. √√
       - Any other relevant answer related to quality indicators of the administration
         function.
       NOTE: Mark the first TWO (2) only.
                                                                             (2 x 2) (4)

3.6   Total quality management/TQM
3.6.1 TQM elements from the scenario
            TQM ELEMENTS                             MOTIVATIONS
      1. Total client/customer     MML always request their buyers to provide
         satisfaction√√            feedback on their purchasing experience. √
      2. Monitoring and evaluation They conduct regular quality checks to avoid
         of quality processes√√    replacing machinery unnecessarily. √
                        Submax (4)                                         Submax (2)
        NOTE:        1.   Mark the first TWO (2) only.
                     2.   Award marks for the TQM elements even if the motivations
                          were incomplete.
                     3.   Do not award marks for the motivations if the TQM elements
                          were incorrectly identified.
                                                                                 Max (6)

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Business Studies/P1                          14                                      DBE/2022
                                   SC/NSC – Marking Guideline

3.6.2    Impact of TQM if poorly implemented by businesses
        -  Setting unrealistic deadlines√ that may not be achieved. √
        -  Employees may not be adequately trained√ resulting in poor quality products. √
        -  Decline in productivity√ because of stoppages. √
        -  Businesses may not be able to make the necessary changes to
           products/services√ in order to satisfy the needs of customers. √
        - The reputation/image of the business may suffer√ because of poor
           quality/defective goods. √
        - Customers will have many alternatives to choose from√ and the impact could
           be devastating to businesses. √
        - Investors might withdraw investments√, if there is a decline in profits. √
        - Decline in sales√ as more goods are returned by unhappy customers. √
        - High staff turnover√ because of poor skills development. √
        - Undocumented/Uncontrolled quality control processes/systems √ could result in
           errors/deviations from pre-set quality standards. √
        - Any other relevant answer related to the impact of TQM if poorly implemented
           by businesses.
                                                                                     Max (4)

3.7     Importance of quality circles
        - Solve problems related to quality and implement improvements. √√
        - Investigate problems and suggest solutions to management. √√
        - Ensure that there is no duplication of activities/tasks in the workplace. √√
        - Make suggestions for improving processes and systems in the workplace. √√
        - Improve the quality of products/services/productivity through regular reviews of
           quality processes. √√
        - Monitor/Reinforce strategies to improve the smooth running of business
           operations. √√
        - Increase employees' morale and motivation. √√
        - Quality circles discuss ways of improving the quality of work/workmanship. √√
        - Contribute towards the improvement and development of the organisation. √√
        - Reduce costs of redundancy/wasteful efforts in the long run. √√
        - Increase the demand for products/services of the business. √√
        - Create harmony and high performance in the workplace. √√
        - Build a healthy workplace relationship between the employer and employee. √√
        - Improve employees' loyalty and commitment to the organisational goals. √√
        - Improve employees' communication at all levels of the business. √√
        - Develop a positive attitude/sense of involvement in decision-making processes
           of the services offered. √√
        - Any other relevant answer related to the importance of quality circles as part of
           continuous improvement to processes and systems.
                                                                                       Max (6)
                                                                                          [40]

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Business Studies/P1                            15                                  DBE/2022
                                     SC/NSC – Marking Guideline

                                                                  BREAKDOWN OF MARKS
                                                                    QUESTION 3 MARKS
                                                                        3.1      2
                                                                        3.2      4
                                                                       3.3.1     2
                                                                       3.3.2     6
                                                                        3.4      6
                                                                        3.5      4
                                                                       3.6.1     6
                                                                       3.6.2     4
                                                                        3.7      6
                                                                      TOTAL      40
QUESTION 4: MISCELLANEOUS TOPICS
BUSINESS ENVIRONMENTS
4.1    Business environments and extent of control

             BUSINESS ENVIRONMENTS                 EXTENT OF CONTROL
        1. Micro environment√             Full control√
        2. Market environment√            Partial/Some/Limited/Less/Little control√
        3. Macro environment√             No control√
                               Submax (2)                               Submax (2)

        NOTE:        1.   Mark the first TWO (2) only.
                     2.   The answer does not have to be in tabular format.
                     3.   Award marks for the business environments even if the extent of
                          control was not indicated/incorrect.
                     4.   The extent of control must be linked to the business
                          environment.
                     5.   Do not award marks for the extent of control if the business
                          environment is not mentioned.
                     6    Responses can be in any order.
                                                                                    Max (4)
4.2   Broad-Based Black Economic Empowerment Act/BBBEE pillars from the
      scenario
           BBBEE PILLARS                              MOTIVATIONS
      1. Management control√√ Zako Wholesaler recently appointed Zandile as their
                                 chief operating officer (COO). √
      2. Enterprise and supplier They requested Mandla Electricians to render
          development (ESD)√√    maintenance services on their electrical equipment. √
                     Submax (4)                                             Submax (2)
        NOTE:        1.   Mark the first TWO (2) only.
                     2.   The answer does not have to be in tabular format.
                     3.   Award marks for the BBBEE pillars even if the motivations were
                          incomplete.
                     4    Do not award marks for the motivations if the BBBEE pillars
                          were incorrectly identified
                                                                                  Max (6)

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                                   SC/NSC – Marking Guideline

4.3      Types of intensive strategies
         Market penetration√√
         - Existing products penetrate the market at lower prices but later prices are
            increased. √
         - Businesses focus on selling existing products into existing markets to increase
            their market share. √
         - Businesses use market research on existing clients to decide on how to
            improve their marketing mix. √
         - Aggressive marketing campaigns such as reducing prices are used to attract
            potential/existing clients. √
         - Businesses use this strategy to increase awareness of the products and
            customer loyalty. √
         - Any other relevant answer related to market penetration as a type of intensive
            strategy.
                                                                                 Strategy (2)
                                                                             Explanation (1)
                                                                                 Submax (3)

         Market development√√
         - It is a growth strategy where businesses aim to sell their existing products in
           new markets. √
         - Businesses target consumers in a potential market that is outside of its normal
           target market. √
         - Increasing sales of existing products by finding new ways to develop new
           markets. √
         - Any other relevant answer related to market development as a type of intensive
           strategy.
                                                                                  Strategy (2)
                                                                              Explanation (1)
                                                                                  Submax (3)

        Product development√√
        - It is a growth strategy where businesses aim to introduce new products into
           existing markets/modify an existing product. √
        - Businesses generate new ideas/develop new products/services. √
        - Businesses conduct test marketing/market research to establish whether new
           products will be accepted by existing customers. √
        - New products may be different/of a higher quality than those of competitors. √
        - Any other relevant answer related to product development as a type of
           intensive strategy.
                                                                              Strategy (2)
                                                                           Explanation (1)
                                                                             Submax (3)
      NOTE: Mark the first TWO (2) only.
                                                                                  Max (6)

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Business Studies/P1                        17                                     DBE/2022
                                 SC/NSC – Marking Guideline

4.4    Ways in which businesses can comply with the Labour Relations Act/LRA
       - Employees should not be unfairly/illegally√ dismissed. √
       - Support the establishment/formation of trade unions/workplace forums√ to
         enhance labour peace in the workplace. √
       - Employers should not breach/ignore√ any collective agreement. √
       - Businesses must allow employees to participate in union activities√ such as
         legal strikes/elections. √
       - Disclose all relevant information required by trade union representatives√ to do
         their jobs effectively. √
       - Any other relevant answer related to ways in which businesses can comply with
         the LRA.
                                                                                   Max (4)

BUSINESS OPERATIONS

4.5    Examples of fringe benefits
       - Pension fund√
       - Medical aid fund/Health insurance fund√
       - Funeral benefit √
       - Provident fund√
       - Car/Travel/Housing/Cell phone/Clothing allowances√
       - Performance based incentives√
       - Issuing of bonus shares√
       - Staff discount/Free or low cost meal/Canteen facilities√
       - Any other relevant examples of fringe benefits.
       NOTE: Mark the first TWO (2) only.
                                                                                 (2 x 1) (2)
4.6   Induction
4.6.1 Aspects of the induction programme from the scenario
      - The management of FL took their employees on a tour of the premises. √
      - They also highlighted all the necessary safety regulations and rules. √
       NOTE: 1 Mark the first TWO (2) only.
                2 Only award marks for responses that are quoted from the
                  scenario.
                                                                                (2 x 1) (2)
4.6.2 Benefits of induction for businesses
      - Allows new employees to settle in quickly√ and work effectively. √
      - Ensures that new employees understand the rules√ and restrictions in the
        business. √
      - New employees may establish relationships√ with fellow employees at different
        levels. √
      - Make new employees feel at ease in the workplace, √ which reduces anxiety/
        insecurity/fear. √
      - The results obtained during the induction process√ provide a base for focussed
        training. √
      - Increases quality of performance/productivity√ as employees are familiar with
        the work processes. √
      - Minimises the need for on-going training√ and development. √
      - Employees will be familiar with organisational structures√ such as their
        supervisors/low level managers. √

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                                     SC/NSC – Marking Guideline

       -    Opportunities are created for new employees√ to experience/explore different
            departments. √
       -    New employees will understand their role/responsibilities√ concerning safety
            regulations and rules. √
       -    New employees will know the layout of the building/factory/offices, √ which
            saves production time. √
       -    Learn more about the business so that new employees understand their roles/
            responsibilities√ in order to be more efficient. √
       -    Company policies are communicated, √ regarding conduct and
            procedures/safety and security/employment contract/conditions of employment/
            working hours/leave. √
       -    Realistic expectations for new employees√ as well as the business are
            created. √
       -    New employees may feel part of the team√ resulting in positive morale and
            motivation. √
       -    Employees may have a better understanding of business policies√ regarding
            ethical/professional conduct/procedures/CSR. √
       -    Reduces the staff turnover√ as new employees have been inducted properly. √
       -    Any other relevant answer related to the benefits of induction for businesses.
                                                                                      Max (6)

4.7    Difference between quality management and quality performance
                QUALITY MANAGEMENT                   QUALITY PERFORMANCE
        - Techniques/tools√ used to design/     - Total      performance       of    each
            improve the quality of a product. √   department measured√ against the
                                                  specified standards. √
        - Can be used for accountability√       - Can be obtained if all departments
            within each of the business           work together√ towards the same
            functions. √                          quality standards. √
        - Aims to ensure that the quality of    - Quality is measured√ through
            goods/services√ is consistent√/       physical product/statistical output of
            Focuses on the means√ to achieve      processes/surveys of the users
            consistency. √                        and/or buyers of goods/services. √
        - Any other relevant answer related to  - Any other relevant answer related to
            quality management.                   quality performance.
                                         Submax (2)                                Submax (2)

           NOTE:     1.   The answer does not have to be in tabular format.
                     2.   The difference does not have to link, but must be clear.
                     3.   Award a maximum of TWO (2) marks if the difference is not
                          clear/Mark either quality management or quality performance
                          only.
                                                                                   Max (4)

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Business Studies/P1                        19                                      DBE/2022
                                 SC/NSC – Marking Guideline

4.8    Ways in which total quality management/TQM can reduce the cost of quality
       - Introduce quality circles to discuss ways of improving the quality of their
         work/workmanship. √√
       - Schedule activities to eliminate duplication of tasks. √√
       - Share responsibility for quality output amongst management and workers. √√
       - Train employees at all levels, so that everyone understands their roles in quality
         management. √√
       - Develop work systems that empower employees to find new ways of improving
         quality. √√
       - Work closely with suppliers to improve the quality of raw materials/inputs. √√
       - Improve communication about the quality challenges/deviations, so that everyone
         can learn from past experiences. √√
       - Reduce investment on expensive, but ineffective inspection procedures in the
         production process. √√
       - Implement pro-active maintenance programmes for equipment/machinery to
         reduce/eliminate breakdowns. √√
       - Any other relevant answer related to ways in which TQM can reduce the cost of
         quality.
                                                                                     Max (6)
                                                                                        [40]

                                                               BREAKDOWN OF MARKS
                                                                 QUESTION 4 MARKS
                                                                     4.1      4
                                                                     4.2      6
                                                                     4.3      6
                                                                     4.4      4
                                                                     4.5      2
                                                                    4.6.1     2
                                                                    4.6.2     6
                                                                     4.7      4
                                                                     4.8      6
                                                                   TOTAL      40

                                                                  TOTAL SECTION B: 80

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Business Studies/P1                         20                                      DBE/2022
                                  SC/NSC – Marking Guideline

SECTION C

Mark the FIRST question only.

QUESTION 5:           BUSINESS ENVIRONMENTS (LEGISLATION)

5.1    Introduction
       - The National Credit Act regulates the terms and conditions for all goods and
          services that are sold/delivered on credit. √
       - The Act enables businesses and consumers to enter into transparent credit
          agreements. √
       - Businesses must receive assistance from legal experts to ensure compliance
          with the NCA. √
       - Penalties/Consequences for non-compliance compel businesses to put systems
          in place that will improve their compliance status. √
       - Any other relevant introduction related to the rights of consumers in terms of the
          NCA/impact of the NCA/ways to comply with NCA/penalties for non-compliance
          to the NCA.
                                                                             Any (2 x 1) (2)

5.2    Rights of consumers in terms of the National Credit Act/NCA
       Consumers have a right to:
       - Apply for credit and to be free from discrimination. √√
       - Obtain reasons for credit being refused. √√
       - Receive pre-agreement documentation/credit quote that is valid for 7 days
         before concluding any credit transaction. √√
      - Fair and responsible marketing. √√
       - Surrender/Return goods to the credit provider in order to settle the outstanding
         amount/debt. √√
       - Apply for debt review/counselling if the consumers cannot afford to repay their
         debts. √√
       - Receive information in plain and understandable language. √√
       - Receive documents/statements as required by the Act. √√
       - Access and challenge credit records and information. √√
       - Receive protection of their personal information. √√
       - Receive protection from being held accountable for the use of their credit facility
         after they reported the loss/theft. √√
       - Refuse a credit limit increase. √√
       - Any other relevant answer related to the rights of consumers in terms of the
         NCA.
                                                                                    Max (10)
5.3    Impact of the National Credit Act/NCA on businesses
       Positives/Advantages
       - The whole credit process is transparent√ as both businesses and customers
         know their responsibilities. √
       - Lower bad debts√ resulting in better cash flow. √
       - Protects businesses√ against non-paying consumers. √
       - Increases cash sales√ as credit can only be granted to qualifying customers/
         more customers are buying in cash. √
       - Stamps out reckless lending√ and prevents businesses from bankruptcy. √

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