# Business Studies Grade 11 P1 Eastern Cape November 2022 Memo

> Grade 11 Business Studies Paper 1 memorandum from the Eastern Cape November 2022 (English), 31 pages. Read online or download the free PDF.

- Page: https://www.hlayiso.com/library/business-studies-p1-memo-gr11-nov2022-english/84d39a27-e091-45ee-b2a2-28465e3f6b0b
- Updated: 2026-09-27
- Subject: Business Studies
- Grade: Grade 11
- Language: English
- Document type: Memorandum
- Year: 2022
- Exam period: Eastern Cape November
- Paper: 1
- Curriculum: CAPS
- Pages: 31

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## About this document

Business Studies · Grade 11 · Eastern Cape November · 2022 · English. Memorandum, 31 pages. Read online or download the PDF.

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                         NATIONAL
                    SENIOR CERTIFICATE

                              GRADE 11

                      NOVEMBER 2022

                  BUSINESS STUDIES P1
                  MARKING GUIDELINE

MARKS:   150

                  This marking guideline consists of 31 pages.

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2                                    BUSINESS STUDIES P1                       (EC/NOVEMBER 2022)

 NOTES TO MARKERS

 1.    PREAMBLE

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

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

 2.    Candidates’ responses must be in full sentences for SECTIONS B and C.
       However, this would depend on the nature of the question.
 3.    A comprehensive marking guideline has been provided but this is by no
       means exhaustive. Due consideration should be given to an answer that is
       correct but:
       •     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 relevant answers provided by candidates and allocate
       marks accordingly. (In cases where the answer is unclear or indicates some
       understanding, part-marks should be awarded, for example, one mark instead
       of the maximum of two marks.)
 5.    The word ‘Sub-max’ is used to facilitate the allocation of marks within a
       question or sub-question.
 6.    The purpose of circling marks (guided by 'max' in the breakdown of marks)
       on the right-hand side is to ensure consistency and accuracy in the marking
       of scripts as well as for calculation and moderation purposes.
 7.    Subtotals to questions must be written in the right-hand margin. Circle the
       subtotals as indicated by the allocation of marks. This must be guided by ‘max’
       in the marking guidelines. Only the total for each question should appear in the
       left-hand margin next to the appropriate question number.

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

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

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(EC/NOVEMBER 2022)                 BUSINESS STUDIES P1                                         3

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

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

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

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

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

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

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

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

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

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4                                 BUSINESS STUDIES P1                        (EC/NOVEMBER 2022)

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 specified.
                       2. 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 to finalise alternative answers.

       14.4 Use of the cognitive verbs and allocation of marks:

              14.4.1   If the number of facts are specified, questions that require
                       candidates to ‘describe/discuss/explain’ may be marked as
                       follows:
                       •   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).

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(EC/NOVEMBER 2022)               BUSINESS STUDIES P1                                     5

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
     15.2 Insight consists of the following components:
             Layout/Structure Is there an introduction, a body, and a conclusion?         2
             Analysis and        Is the candidate able to break down the question into 2
             interpretation      headings/subheadings/interpret it correctly to show
                                 understanding of what is being asked?
                                 Marks to be allocated using this guide:
                                 All headings addressed:             1 (One ‘A’)
                                 Interpretation (16 to 32 marks): 1 (One ‘A’)
             Synthesis           Are there relevant decisions/facts/responses made 2
                                 based on the questions?
                                 Marks to be allocated using this guide:
                                 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 OR 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
                                              questions, but one sub-question of the
                                              question with no relevant 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 no relevant facts; two '-S'
                                              appear in the left margin. Award a ZERO
                                              mark for synthesis.
             Originality         Is there evidence of examples based on recent 2
                                 information, current trends and developments?
                                                                  TOTAL FOR INSIGHT: 8
                                                           TOTAL MARKS FOR FACTS: 32
                                                  TOTAL MARKS FOR ESSAY (8 + 32): 40
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6                                  BUSINESS STUDIES P1                         (EC/NOVEMBER 2022)

       NOTE:     1. No marks will be awarded for contents repeated from the
                    introduction and conclusion.
                 2. The candidate forfeits marks for layout if the words
                    INTRODUCTION and CONCLUSION are not stated.
                 3. No marks will be awarded for layout, if the headings
                    INTRODUCTION and CONCLUSION are not supported by an
                    explanation.
       15.3      Indicate insight in the left-hand margin with a symbol e.g.
                 (‘L, A, -S and/or O’).
       15.4      The breakdown of marks is indicated at the end of the suggested
                 answer/ marking guideline to each question.
       15.5      Mark all relevant facts until the SUB MAX/MAX mark in a subsection
                 has been attained. Write SUB MAX/MAX after maximum marks have
                 been obtained, but continue reading for originality “O”.
       15.6      At the end of each essay indicate the allocation of marks for facts and
                 marks for insight as follows: (L – Layout, A – Analysis,
                 S – Synthesis, O – Originality) as in the table below.
                          CONTENT                    MARKS
                            Facts                   32 (max.)
                              L                         2
                              A                         2
                              S                         2
                             O                          2
                           TOTAL                        40

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

                     (See MARK BREAKDOWN at the end of each question.)

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

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

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

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(EC/NOVEMBER 2022)                  BUSINESS STUDIES P1                                     7

                     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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8                                   BUSINESS STUDIES P1            (EC/NOVEMBER 2022)

 SECTION A

 QUESTION 1

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

 1.2    1.2.1    no control √√
        1.2.2    merger √√
        1.2.3    industrial relations √√
        1.2.4    personal selling √√
        1.2.5    interview √√
                                                                       (5 x 2) (10)

 1.3    1.3.1    F √√
        1.3.2    G √√
        1.3.3    I √√
        1.3.4    J √√
        1.3.5    B √√
                                                                       (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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(EC/NOVEMBER 2022)                BUSINESS STUDIES P1                                     9

SECTION B
Mark the FIRST TWO answers only.
QUESTION 2: BUSINESS ENVIRONMENTS

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

2.2    Meaning of power relationships
       - Power relations can be described as a measurement of a business’s ability √
         to control its environment and the behaviour of other businesses. √
       - A business forms relationships √ with its environment and markets. √
       - The power that the business has on the environment √ determines the status
         it holds within its industry. √
       - Any other relevant answer related to the meaning of power relationships.
                                                                              Max.     (4)

2.3    Ways in which businesses are adapting to challenges from the
       scenario

             WAYS TO ADAPT TO                           MOTIVATIONS
                CHALLENGES
       1. Information management √√      Ulna Manufacturers (UM) invested a
                                         large amount of capital into an
                                         information technology system to update
                                         their business operations. √
       2. Organisation     design  and UM changed how their business is
          flexibility √√                 structured to compete in a changing
                                         market. √
                            Sub-max. (4)                             Sub-max. (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 ways adapting to challenges even if
                    the quotes were incomplete.
                 4. Do not award marks for the motivations if the ways
                    adapting to challenges were incorrectly identified.
                                                                        Max.           (6)

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10                                BUSINESS STUDIES P1                    (EC/NOVEMBER 2022)

 2.4 Link between the primary, secondary and tertiary sector
     - The primary sector depends on the secondary sector √ for manufactured
        goods such as machinery/equipment/fertilisers. √
     - The primary sector is dependent on the tertiary sector √ for its customer
        needs. √
     - The primary sector depends on other primary sectors √ for raw
        materials/feed e.g. a farmer may require seeds from another farm. √
     - The secondary sector processes the raw materials obtained from the
        primary sector into more useful products. √
     - The secondary sector depends on the primary sector √ for raw materials
        and products. √
     - The secondary sector depends on other secondary industries for
        manufactured products needed to be used in the manufacturing of their
        product. √
     - Secondary sector needs the tertiary sector √ to sell their processed or
        manufactured goods and also for services such as banks, insurance,
        transport and communication. √
     - The tertiary sector depends on the primary sector √ for raw materials that
        do not need processing by the secondary sector. √
     - The tertiary sector depends on the secondary sector √ for manufactured
        goods such as office machines/office furniture/stationery etc. √
     - Any other relevant answer related to the link between the primary,
        secondary and tertiary sector.
                                                                            Max.       (4)

 2.5 Challenges of the market environment

       2.5.1    Shortage of supply of stock
                - Any shortage √ can have a seriously negative effect on production
                  and profits. √
                - Dissatisfied customers can damage the reputation √ and threaten
                  the future of the business. √
                - Poor stock control by the business √ will result in customers not
                  getting their orders/products needed. √
                - Country-wide labour strikes in the manufacturing industry √ will
                  result in orders/products not reaching consumers. √
                - Raw material may be unavailable √ due to droughts and
                  interruptions. √
                - Any other relevant answer related to shortage of supply as a
                  challenge in the market environment.
                                                                              Max.     (4)

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(EC/NOVEMBER 2022)                BUSINESS STUDIES P1                                 11

       2.5.2    Changes in customer behaviour
                - Changes in customer behaviour means that products/services no
                  longer suit the target market √ and sales decrease. √
                - Consumers’ preferences and tastes can change √ as fashions
                  change and as technology advances. √
                - Keeping up with changes in consumer tastes and demand √ by
                  doing    research/finding     ways     to    influence consumer
                  demand/conducting advertising campaigns adds to the challenge. √
                - Any other relevant answer related to changes in consumer
                  behaviour as a challenge in the market environment.
                                                                             Max.     (4)

 2.6 Ways businesses are involved in the macro environment

       2.6.1    Ways businesses are involved in the macro environment from
                the scenario
                - Anela Shoes (AS) expanded their businesses to other African
                   countries by opening a store in Botswana. √
                - They are also spending money on research in the development of
                   their shoes. √
                NOTE: Mark the first TWO (2) only.
                                                                          (2 x 1)     (2)

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12                                BUSINESS STUDIES P1                      (EC/NOVEMBER 2022)

     2.6.2   Other ways that businesses can be involved in the macro
             environment
             - Collective bargaining/lobbying, √ representatives of business
               community use opportunity to discuss matters of mutual interest with
               government officials. √
             - Private-public partnership, √ business can enter into mutually
               beneficial partnerships with the government and business can
               benefit from government policies. √
             - Privately owned services to the community or country √ business
               make use of a government owned assets (harbour) and decide to
               keep the area clean (service). √
             - Job creation√, by businesses will receive a subsidy or tax reduction
               and have more trained workers. √
             - Increased involvement in social responsibility initiatives √ business
               gets involved in socio-economic issues through training and
               communication in the workplace project. √
             - Government tenders √ offered by the government and in response
               businesses will submit a formal offer to supply specified goods and
               services. √
             - Working within the laws and regulations √ set up by the government
               can assist businesses to prosper/set up contracts. √
             - Taking advantage of economic changes √ such as seasonal price
               changes/changes in exchange rate/government tax breaks. √
             - Preventing environmental damage √ by being sustainable and
               environmentally aware. √
             - Moving towards more environmentally friendly products √ such as
               solar-powered geysers, lights and environmentally friendly cleaning
               products. √
             - Any other relevant answer related to the ways in which businesses
               can be involved in the macro environment.

             NOTE:    Do not award marks for responses that were quoted from
                      the scenario in QUESTION 2.6.1.
                                                                        Max.             (4)

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(EC/NOVEMBER 2022)                BUSINESS STUDIES P1                                    13

2.7    Advantages of businesses that are involved in the macro environment
       - Preventing environmental change/damage √ by being sustainable and
         environmentally aware/decreasing carbon footprint. √
       - Entering global markets, using the internet, √ increases markets and can
         source cheaper/better raw materials internationally. √
       - Knowing peoples age, gender, customs, traditions and preferences √ will
         make it easier for businesses to appeal to people. √
       - Laws regulate industries, control trade with other countries √ and protect
         industries, consumers and employees. √
       - Businesses are aware of the impact of foreign exchange currency and
         taxes √ are flexible in supplying the products and services relevant to the
         current economic situation. √
       - Keeping up with the latest technology √ ensures reaching the largest
         possible market. √
       - Ensures that the business keep abreast/work within √ policies, laws and
         regulations that govern businesses. √
       - The business can more accurately predict √ future events, threats and
         opportunities that may arise. √
       - Any other relevant answer related to the advantages of businesses that
         are involved in the macro environment.
                                                                                 Max.   (6)

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14                                BUSINESS STUDIES P1                     (EC/NOVEMBER 2022)

2.8    Ways in which businesses can overcome competition in the market
       - Offering different products and services than the competitors to satisfy
         the customer’s needs and wants. √√
       - Offering more personal services by being responsive to the customer’s
         needs/expectations. √√
       - Offering low-cost extras such as improved credit terms/discounts/loyalty
         schemes etc. √√
       - Charging lower prices than that of the other businesses. √√
       - Selling products of a superior quality/new products/services that the
         customers might be interested in. √√
       - Well trained/knowledgeable staff members that create a better working
         atmosphere. √√
       - Stepping up the marketing of the business by using promotional ideas
         such as posters or campaigns on social media. √√
       - Updating the image of the business such as painting the front of the
         premises/ making the business looking modern/inviting. √√
       - Keeping up with developments in the sector of the business sector,
         following consumer trends/investing in new technology. √√
       - Improving customer services and ensuring client satisfaction. √√
       - Any other relevant answer related on ways in which businesses can
         overcome competition in the market.
                                                                               Max.    (4)
                                                                                      [40]

                                                     BREAKDOWN OF MARKS
                                                      QUESTION 2  MARKS
                                                          2.1       2
                                                          2.2       4
                                                          2.3       6
                                                          2.4       4
                                                         2.5.1      4
                                                         2.5.2      4
                                                         2.6.1      2
                                                         2.6.2      4
                                                          2.7       6
                                                          2.8       4
                                                        TOTAL       40

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(EC/NOVEMBER 2022)                BUSINESS STUDIES P1                                    15

QUESTION 3: BUSINESS OPERATIONS
3.1    Factors influencing pricing
       - Input costs √
       - Demand for the product √
       - Target market √
       - Type of product √
       - Pricing technique used to determine the price. √
       - Competitive and substitute products √
       - The economic climate and availability of goods and services √
       - Forms of markets √
       - Any other relevant answer related to factors influencing pricing.
       NOTE: Mark the first TWO (2) only.
                                                                              (2 x 1)   (2)

3.2    Requirements of a good trademark
       - Trademarks must be attractive and promote the product. √√
       - Make it easy for consumers to recognise the product. √√
       - Easy to recognise, remember and pronounce. √√
       - Helps build brand familiarity. √√
       - Must suit the product. √√
       - Suitably designed for the target market. √√
       - Must be different from its competitors. √√
       - Must promote the image of the enterprise. √√
       - Link the product to its promotion strategy. √√
       - Draw the attention of consumers. √√
       - Any other relevant answer related to the requirements of a good
         trademark.
                                                                               Max.     (6)

3.3    Types of intermediaries from statements

       3.3.1     Retailer √√
       3.3.2     Agent √√
                                                                              (2 x 2)   (4)

3.4    Total Quality Management as part of quality management systems
       - It is a management philosophy that seeks to integrate √ all organisational
         functions such as marketing/finance/customer services etc. √
       - The focus is on improving the quality of products and services √ in order to
         satisfy the needs of customers. √
       - Total Quality Management refers to all aspects of quality √ within the
         business. √
       - It is the responsibility of everyone in the organisation √ from top
         management to general workers. √
       - Businesses strive to get it right the first time √ by implementing the
         elements of TQM. √
       - It is a thought revolution in management, √ where the entire business is
         operated with customer orientation in all business activities. √
       - Any other relevant answer related to total quality management (TQM) as a
         part of quality management systems.
                                                                                Max.    (6)

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16                                 BUSINESS STUDIES P1                    (EC/NOVEMBER 2022)

 3.5    Role of public relations in publicity
        - Public relations aim to present a favourable image of the business √ and
           its products or service. √
        - Many businesses outsource the PR function to an outside agency √ to
           take advantage of their specialised knowledge. √
        - The PR department builds good relationships √ with representatives of
           the media and press. √
        - They keep the media informed of news √ about product launches and
           opening of new factories or shops for the attention of the public. √
        - The PR function supports marketing efforts √ to establish and build a
           brand identity. √
        - Any other relevant answer related to the role of public relations in
           publicity.
                                                                                Max.    (6)

 3.6    Salary determination methods from a scenario

          SALARY DETERMINATION                           MOTIVATIONS
                 METHODS
        1. Piecemeal √√                Abie gets paid R5000 for each set of
                                       financial statements he completes.√
        2.Time-related √√              Isa gets paid R380/hour for performing
                                       her duties. √
                          Sub-max. (4)                            Sub-max. (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 salary determination methods even
                        if the quotes were incomplete.
                     4. Do not award marks for the motivations if the salary
                        determination methods were incorrectly identified.
                                                                             Max.       (6)

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(EC/NOVEMBER 2022)                BUSINESS STUDIES P1                                     17

3.7    Recruitment procedure
       - The human resource manager (HRM) should evaluate the job/prepare a
         job analysis, √ that includes the job specification/job description. √
       - The human resources manager (HRM) should prepare the job
         description √ in order to identify recruitment needs. √
       - HRM should indicate the job specification/key performance areas √ to
         attract suitable candidates. √
       - Choose the method of recruitment, e.g. internal/external, √ to
         reach/target the suitable applicants/candidates. √
       - Vacancies can be internally advertised √ via internal e-mail/word of
         mouth/posters/ staff notices. √
       - External recruitment should be considered √ if internal recruitment was
         unsuccessful. √
       - If the external recruitment is done, the relevant recruitment method
         should be selected, √ e.g. recruitment agencies, tertiary institutions,
         newspapers, √ etc.
       - The advertisement should be prepared with the relevant information √,
         e.g. the name of the company, contact details, contact person √, etc.
       - Place the advertisement in the selected media √ that will ensure that the
         best candidates apply. √
       - Any other relevant answer related to the recruitment procedure.
                                                                                Max.     (6)

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18                               BUSINESS STUDIES P1                    (EC/NOVEMBER 2022)

3.8    Legal requirements of the employment contract
       - Employment contract is an agreement between the employer and the
          employee √ and is legally binding. √
       - Employer and employee must agree √ to any changes to the contract. √
       - Aspects of the employment contract can be renegotiated, √ during the
          course of employment. √
       - No party may unilaterally √ change aspects of the employment
          contract. √
       - The employer and the new employee must both √ sign the contract. √
       - The employment contract should include a code of conduct √ and code
          of ethics. √
       - The employer must explain the terms and conditions of the employment
          contract √ to the employee. √
       - It may not contain any requirements that are in conflict √ with the
          BCEA. √
       - Conditions of employment/duties/responsibilities of the employees √
          must be stipulated clearly. √
       - The remuneration package/including benefits √ must be clearly
          indicated. √
       - All business policies, procedures and disciplinary codes/rules can form
          part √ of the employment contract. √
       - The employer must allow the employee to thoroughly read through the
          contract √ before it is signed. √
       - Any other relevant answer related to the legal requirements of the
          employment contract.
                                                                             Max.    (4)
                                                                                    [40]

                                                   BREAKDOWN OF MARKS
                                                    QUESTION 3   MARKS
                                                       3.1         2
                                                       3.2         6
                                                       3.3         4
                                                       3.4         6
                                                       3.5         6
                                                       3.6         6
                                                       3.7         6
                                                       3.8         4
                                                      TOTAL        40

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(EC/NOVEMBER 2022)                BUSINESS STUDIES P1                                    19

QUESTION 4: MISCELLANEOUS TOPICS
BUSINESS ENVIRONMENTS

4.1    Components of the macro environment
       - Physical/Natural environment √
       - Economic environment √
       - Social/Cultural/Demographic environment √
       - Technological environment √
       - Legal environment √
       - Political environment √
       - International/Global environment √
       - Institutional environment √
       NOTE: Mark the first TWO (2) only.                                    (2 x 1)    (2)

4.2    Challenges of the micro environment

       4.2.1    Challenges of the micro environment from the scenario
                - The managers at BT lack adequate management skills. √
                - Difficult employees also make the daily running of the business a
                  challenge. √
                NOTE: Mark the first TWO (2) only.                           (2 x 1)    (2)

       4.2.2    Other challenges of the micro environment
                - Lack of vision and mission √
                - Unions √
                - Strikes and go slows √
                - Skills shortages among employees √
                - High employee turnover √
                - Employee absenteeism √
                - Any other relevant answer related to other challenges of the micro
                   environment.
                NOTE: 1. Mark the first TWO (2) only.
                         2. Do not award marks for responses that were
                             quoted from the scenario in QUESTION 4.2.1
                                                                               Max.     (2)

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20                                 BUSINESS STUDIES P1                       (EC/NOVEMBER 2022)

4.3    Purpose of the LRA
       - Provides a framework where the employees, trade unions and employers
         work together √ to discuss matters relating to employment, e.g. wages,
         conditions of employment. √
       - Promotes orderly negotiations and employee participation √ in decision-
         making in the workplace. √
       - Promotes resolution of labour disputes, √ through the establishment of the
         Commission for Conciliation, Mediation and Arbitration (CCMA). √
       - Promotes fair √ employment practices. √
       - Provide a framework/structure for labour relations √ between employer and
         employees. √
       - Provides simple procedures √ for the registration of trade unions and
         employers’ organisations. √
       - Regulates the rights of trade unions and facilitates √ collective
         bargaining. √
       - Regulates the effectiveness of bargaining councils √ and statutory
         councils. √
       - Allows workplace forums √ where employees may participate in decision-
         making. √
       - Establishes the Commission for Conciliation, Mediation and Arbitration
         (CCMA) to resolve labour disputes √ through statutory conciliation,
         mediation and arbitration. √
       - Endorses the right to strike against retrenchments, √ and facilitates labour
         disputes. √
       - Clarifies the transfer √ of contracts of employment procedures. √
       - Establishes Labour Courts and Labour Appeal Courts √ to deal with labour
         issues. √
       - Provide fair labour practice√ between the employer and employee. √
       - Deals with √ strikes and lockouts and workplace forums. √
       - Establishes workplace forums to promote √ the interest of all employees in
         the workplace whether they belong to the trade union or not. √
       - Advances economic development/social justice/labour peace√ to ensure
         the workplace maintain the basic rights of employees. √
       - Any other relevant answer related to the purpose of the Labour Relations
         Act.
                                                                                 Max.      (6)

4.4    Hedging against inflation as a type of lobbying
       - The business use hedging by buying bonds, shares, property or buying
         precious metals like gold √ to protect capital from the effects of inflation. √
       - Businesses invest surplus fund √ so that its value grows at a faster rate
         than inflation. √
       - Businesses use hedging to protect their financial investments √ by
         spreading the risk. √
       - Any other relevant answer related to hedging against inflation as a type
         of lobbying.
                                                                                   Max.    (4)

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(EC/NOVEMBER 2022)               BUSINESS STUDIES P1                                   21

4.5    Ways in which businesses can have a direct influence on the
       environment
       - Businesses need to be flexible by getting involved in research/
         development so that they can continue to operate. √√
       - Influence its suppliers by signing long term contracts. √√
       - Create new uses for a product by finding new customers. √√
       - Influence regulators through lobbying and bargaining. √√
       - Initiate bargaining sessions between management and unions. √√
       - Influence its owners’ using information contained in annual reports. √√
       - Negotiate strategic alliance agreement through contractual
         processes. √√
       - Any other relevant answer related to ways in which businesses can have
         a direct influence on the environment.
                                                                               Max.   (4)

BUSINESS OPERATIONS

4.6    Aspects that must be considered during production planning
       - Planning √
       - Routing √
       - Loading
       - Scheduling √
       NOTE: Mark the first TWO (2) only.
                                                                            (2 x 1)   (2)

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

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22                                 BUSINESS STUDIES P1                     (EC/NOVEMBER 2022)

4.8    Stages of the product design

       4.8.1    Stage of the product design from the scenario
                Design and development of product ideas √√                    (2 x 1)    (2)

       4.8.2    Other stages of the product design that would be followed
                - Selecting and sifting √ of product ideas/ Idea screening. √
                - Development and testing of the product concept √ which should
                   happen before a product is developed. √
                - Analysis of the profitability √ of the product concept √/Business
                   analysis. √
                - Design and test √ the physical product √/a real product is made for
                   the first time. √
                - Consumer responses must be tested √ using a small sample of
                   the product/Market testing. √
                - Technical implementation√/Systems and processes are put in the
                   production planning and control process. √
                - Commercialisation √/The product is launch and
                   marketing/advertising campaigns implemented. √
                - New product pricing √/The product is priced and forecasts worked
                   out. √
                - Any other relevant answer related to the other stages of the
                   product design that would be followed.
                NOTE: Do not award marks for responses that were quoted
                           from the scenario in QUESTION 4.8.1.
                                                                                Max.     (6)

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(EC/NOVEMBER 2022)                 BUSINESS STUDIES P1                                      23

4.9    Placement procedure as a human resource activity
       - 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)
                                                                                         [40]

                                                      BREAKDOWN OF MARKS
                                                       QUESTION 4   MARKS
                                                           4.1        2
                                                          4.2.1       2
                                                          4.2.2       2
                                                           4.3        6
                                                           4.4        4
                                                           4.5        4
                                                           4.6        2
                                                           4.7        6
                                                          4.8.1       2
                                                          4.8.2       6
                                                           4.9        4
                                                         TOTAL        40
                                                               TOTAL SECTION B:            80

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24                                BUSINESS STUDIES P1                      (EC/NOVEMBER 2022)

SECTION C

Mark the FIRST question only.

QUESTION 5: BUSINESS ENVIRONMENTS (SOCIO-ECONOMIC ISSUES)

5.1    Introduction
        - A trade union is an employee organisation controlled, run and paid for by
          its members to represent workers in negotiations with their
        - management. √
        - Strikes is a refusal to work by two or more employees in an effort to
          pressurise employers to give in to their demands. √
        - Ethical misconduct is any behaviour by employees of the business that is
          not consistent with the values of the business. √
        - Piracy is unauthorised use/reproduction or copying of original music,
          films, books or computer software, patent rights and trademarks without
          the consent of the rightful owner. √
        - Any other relevant introduction related to the function of trade
          unions/negative impact of strikes/types of ethical misconduct/solutions to
          piracy.
                                                                        (Any 2 x 1)      (2)

5.2    Functions of trade unions
       - Protecting the interest of workers. √√
       - Representing the interest of general society and minority groups through
         media and negotiations. √√
       - Influencing government decisions. √√
       - Influencing management for better working conditions, salaries and
         benefits. √√
       - Representing employees corporately and individually. √√
       - Improving the material benefits of their members. √√
       - Advancing the interest of members. √√
       - Providing legal and financial advice. √√
       - Providing benefits and educational facilities to its members. √√
       - Supporting gender equality. √√
       - Protecting members in times of retrenchments and disciplinary
         hearings. √√
       - Protecting the interest of their members during disciplinary
         procedures. √√
       - Any other relevant answer related to the functions of trade unions.
                                                                             Max.      (10)

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(EC/NOVEMBER 2022)                BUSINESS STUDIES P1                                     25

5.3     Negative impact of strikes as a socio-economic issue on businesses
       - Strike actions may lead to production losses √ and decline in sales. √
       - Businesses may be forced to close down operations √ after strike
          actions. √
       - May lead to unhealthy working relationships √ between management
          and workers. √
       - May force businesses to retrench some of its skilled workers √ to
          recover from losses. √
       - Strikes leads to loss of productivity √ and decreases economic
          growth. √
       - Loss of revenue √ and financial loss on business operations. √
       - Looting, destruction of business property/infrastructure √ and
          intimidation of non-striking workers. √
       - Employees can lose their pay √ with the ‘no work no pay’ rule applied
          by the business. √
       - Businesses has to hire employees to replace striking workers √ and
          increases the training costs of new employees. √
       - Businesses may lose market shares/customers to competitors √ during
          the period of a strike. √
       - The image/reputation of the business √ might be damaged. √
       - The supplies of goods and services √ are interrupted. √
       - Prices sometimes increase √ to offset the costs incurred by the strike. √
       - Scares off √ potential investors. √
       - Any other relevant answer related to the impact of strikes as a socio-
          economic issue on businesses.
                                                                             Max.      (12)

5.4     Types of ethical misconduct
        Sexual harassment √√
        - Sexual harassment in the workplace involves unwelcome or unwanted
           conduct √ of a sexual nature from someone at work √
        - It causes discomfort √ and unhappiness at the workplace. √
        - The victim may be severely traumatised √ and affect other
           employees. √
        - Any other relevant answer related to sexual harassment as a type of
           ethical misconduct.
                                                                          Type           (2)
                                                                     Discussion          (2)
                                                                      Sub-max.           (4)

        Corruption √√
        - Refers to any act of dishonesty √ such as bribery/theft/collusion/
          kickbacks etc. √
        - It occurs when two parties enter into an illegal √ but mutually beneficial
          agreement. √
        - Any other relevant answer related to corruption as a type of ethical
          misconduct.
                                                                              Type       (2)
                                                                         Discussion      (2)
                                                                          Sub-max.       (4)

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