Gr12 BusinessStudies MIP RevisionTeachersGuide 2017

CURRICULUM GRADES 10-12 DIRECTORATE WINTER AND SPRING MIP REVISION MATERIAL TEACHER GUIDE GRADE 12 BUSINESS STUDIES 2017

AMENDED SENIOR CERTIFICATE : JUNE 2016 SECTION A QUESTION 1 1.1 1.1.1 C√√ 1.1.2 D√√ 1.1.3 C√√ 1.1.4 A√√ 1.1.5 B√√ 1.1.6 D√√ 1.1.7 C√√ 1.1.8 B√√ 1.1.9 D√√ 1.1.10 A√√ (10 x 2) (20) 1.2 1.2.1 providing transport√√ 1.2.2 debenture holders√√ 1.2.3 ten√√ 1.2.4 fronting√√ 1.2.5 environmental√√ (5 x 2) (10) 1.3 1.3.1 E√√ 1.3.2 G√√ 1.3.3 F√√ 1.3.4 B√√ 1.3.5 J√√ (5 x 2) (10) TOTAL SECTION A: 40 BREAKDOWN OF MARKS QUESTION 1 MARKS 1.1 20 1.2 10 1.3 10 TOTAL 40

SECTION B QUESTION 2: BUSINESS ENVIRONMENTS 2.1 Business environment and extent of control BUSINESS ENVIRONMENT EXTENT OF CONTROL 2.1.1 Micro√√ (2) Full control√ (1) 2.1.2 Market√√ (2) Little/Limited control/Influence√ (1) 2.1.3 Macro√√ (2) No control√ (1) Max (9) NOTE: Do not award marks for an extent of control if the business environment is not correctly identified. 2.2 Differences between National Skills Development Strategy and Human Resources Development Strategy National Skills Development Human Resources Development Strategy Strategy - Encourages good quality training in - Addresses skills shortages√ in the the workplace√ to ensure on-going South African workforce.√ development of skills.√ - Provides for the participation of - Aims at achieving faster economic government√, organised business growth/higher employment levels√ and labour.√ and reduced levels of poverty.√ - Improves social development√ - Promotes social development/social through economic development.√ justice√ and helps to alleviate poverty.√ - Indicates how Sector Education and - Develops short term√ and long term Training Authorities (SETAs)√ should workforce skills.√ use the money allocated from the Skills Development Levy.√ - Increases/Improves access√ to - Improves√ the supply of skills.√ training programmes.√ - Builds/Provides√ career/vocational - Increases employee participation√ in guidance/training centres.√ lifelong learning.√ - Any other relevant answer related to - Any other relevant answer related to the National Skills Development Human Resources Development Strategy. Strategy. Sub max (4) Sub max (4) NOTE: The answer does not have to be in tabular format but differences must be clear. Max (8) 3

2.3 Strategic management process OPTION 1 - Have a clear vision, a mission statement√ and measurable/realistic objectives in place.√ - Identify opportunities/weaknesses/strengths/threats√ by conducting environmental scanning/situational analysis.√ - Tools available for environmental scanning√ may include a SWOT/PESTLE/ Porters Five Forces model.√ - Formulate alternative strategies√ to respond to the challenges.√ - Develop (an) action plan(s)√, including the tasks to be done/deadlines to be met/resources to be procured√, etc. - Implement selected strategies√ by communicating it to all stakeholders/ organising the business's resources/motivating staff.√ - Continuously evaluate√, monitor√, measure strategies√ in order to take corrective action.√ - Any other relevant answer related to a description of the strategic management process. OR OPTION 2 - Review√ vision statement.√ - Analyse/Re-examine√ mission statement.√ - Conduct an analysis√ using models such as SWOT/PESTLE/Porter's Five Forces.√ - Formulate a strategy√, such as a defensive/retrenchment strategy.√ - Implement a strategy√, using a template such as an action plan.√ - Control/Evaluate/Monitor the implemented strategy√ to identify gaps/deviations in implementation.√ - Take corrective action√ to ensure goals/objectives are met.√ - Any other relevant answer related to a description of the strategic management process. NOTE: The steps may be in any order. Max (8) 2.4 Porter's Five Forces model Power of buyers√ - Refers to the number of buyers and their ability to influence prices.√ - Customers who buy in bulk can bargain for a price in their favour.√ - Pots-n-Pans Kitchens must assess how easy it is for their buyers/customers to drive prices down.√ - If Pots-n-Pans Kitchens is dealing with a few powerful buyers, they are often able to dictate their terms to the business.√ - If customers can do without Pots-n-Pans' products, then they have more power to determine the prices and terms of sale.√ - The management of Pots-n-Pans Kitchens should conduct a market research to collect more information about their buyers.√ - Any other relevant answer related to the power of buyers. Sub max (2) 4

Threats of new entrants to the market/Barriers to entry√ - It refers to the ability of other/new businesses to enter the market and sell/offer similar goods/services for the first time.√ - Threats of new entrants are determined by high set-up costs/specialised know- ledge/expert skills/trading licence/legal requirements√, etc. - High barriers to entry/Difficulty to enter the kitchenware market will discourage other businesses to enter Pots-n-Pans' market.√ - Any other relevant answer related to the threats of new entrants/barriers to entry the market. Sub max (2) Competitive rivalry√ - Competitors are businesses selling the same/similar products or rendering the same/similar services.√ - Competitive rivalry refers to the number of competitors and their ability to control the market.√ - Pots-n-Pans Kitchens needs to establish the number of other businesses in the area selling similar products and the quality of services offered by competitors.√ - If Pots-n-Pans Kitchens' competitors have unique products or services, they will have greater power to influence the kitchenware market.√ - They should compile a competitor's profile of each kitchenware business in the market to determine their own strength and that of the competitors.√ - Any other relevant answer related to competitive rivalry. Sub max (2) Power of suppliers√ - Suppliers include factories/other providers of goods/services that Pots-n-Pans Kitchens would buy in order to operate their business.√ - Pots-n-Pans Kitchens should assess the power of their suppliers in influencing prices.√ - The more powerful suppliers there are, the less control the business has over them.√ - Suppliers that deliver high quality kitchenware may have power over Pots-n-Pans Kitchens.√ - Any other relevant answer related to the power of suppliers. Sub max (2) Threat of substitutes/alternatives√ - Substitute products/services are different products/services that satisfy the same needs of consumers and can be used to replace one another.√ - Pots-n-Pans Kitchens should establish whether the sellers of substitute products have improved their products/sell lower quality goods at lower prices.√ - If kitchenware is easily substituted, it weakens the power of Pots-n-Pans Kitchens in the market.√ - Substitute products may cause the business to lose its market share.√ - If Pots-n-Pans Kitchens sells unique products they will not be threatened by - substitute products.√ - Pots-n-Pans Kitchens should do a market research to assess if customers are using substitute products/services and determine reasons for using substitutes.√ - It is important that Pots-n-Pans Kitchens changes/improves the design and quality of their products to remain competitive.√ - Any other relevant answer related to the threat of substitutes. Sub max (2) Max (10) 5

2.5 Legislation 2.5.1 Skills Development Act, 1998 (Act 97 of 1998)/Skills Development Act/SDA√ (1) 2.5.2 Actions regarded as discriminatory by the Skill Development Act - '… only young employees are given the opportunity to learn new skills.'√ - 'Female employees are excluded from attending training.'√ NOTE: Only allocate marks for responses that are quoted from scenario. (2 x 1) (2) 2.5.3 Positive impact of the Skills Development Act (SDA) on Thulane Traders/ businesses - Thulane Traders (TT) may have an increased number of skilled employees√ in skills that are scarce.√ - Improves productivity√ in the workplace.√ - TT may be globally√ more competitive.√ - Higher investment in education and training in the labour market√ increases profits/return on investment.√ - TT's focus on social investment√ may be redirected to other challenges.√ - Employees' quality of life may improve√ as they will be more employable/ promoted to senior/managerial positions.√ - Improves work prospects√ and labour mobility.√ - Self-employment√ and entrepreneurship are promoted.√ - On-going skills development, learning and the acquisition of new skills are encouraged√ to sustain the improvement of skills development.√ - Any other relevant answer related to the positive impact of the SDA on businesses. Max (6) 2.6 Implications of BBBEE pillars on businesses 2.6.1 Ownership - Businesses should include black people√ in shareholding/partnerships/ franchises.√ - Exempted microenterprises (EMEs) with a black ownership of 50% or more√ have a better BEE rating/score.√ - More opportunities are created for black people√ to become owners/ entrepreneurs.√ - Businesses sometimes find it difficult√ to attract suitable black business partners/shareholders.√ - Many black people cannot afford shares/contributions√ to partnerships.√ - Any other relevant answer related to the implication of ownership as a BBBEE pillar on businesses. Sub max (4) 2.6.2 Management - Appointing black people√ in senior executive positions/management.√ - Ensuring black female√ representation in management.√ - When businesses sell 25% of their shares to black investors to become directors√, the business will score points in both management and ownership.√ - Due to a shortage of skilled black managers/directors√, some businesses may find it difficult to make appointments.√ - Any other relevant answer related to the implication of management as a BBBEE pillar on businesses. Sub max (4) Max (8) 6

2.7 Impact of COIDA on employers and employees Positives/Advantages - Promotes safety√ in the workplace.√ - Creates a framework√ for acceptable employment practices/safety regulations.√ - Supply administrative guidelines/mechanisms√ for dealing with/processing claims.√ - Eliminates time and costs spent√ on lengthy civil court proceedings.√ - Employers are protected from financial burden should an accident occur in the workplace√ provided that the employer was not negligent.√ - Claiming processes√ are relatively simple.√ - Makes businesses more socially responsible√ as they cannot just employ workers at random in dangerous working conditions.√ - Workers are treated with dignity and respect√ as businesses view them as valuable assets and not just as workers.√ - Covers all employees at the workplace√ if both parties meet all the necessary safety provisions in the Act.√ - Employees do not contribute√ towards this fund.√ - Employees are compensated financially for any injury/disability√ resulting from performing their duties at their workplace.√ - In the event of the death of an employee as a result of a work-related accident/ disease√, his/her dependent(s) will receive financial support.√ - Employees receive medical assistance√ provided there is no other medical assistance.√ - Any compensation to an employee/the family√ is exempt from income tax.√ - Any other relevant answer related to the positive impact/advantages of COIDA on employers and employees. AND/OR Negatives/Disadvantages - Claiming processes/procedures√ can be time-consuming.√ - Processes/Procedures required by this Act may be costly√ as paperwork places an extra administrative burden on businesses.√ - Employers have to register all their workers/make annual contributions to COIDA√, which may result in cash flow problems.√ - Employers may be forced to pay heavy penalties√ if they are found guilty of negligence/not enforcing safety measures.√ - Workers who are temporarily/permanently employed in foreign countries√ are not covered.√ - Domestic/Military workers√ are not covered/may not claim.√ - Any other relevant answer related to the negative impact/disadvantages of COIDA on businesses. Max (8) [60] BREAKDOWN OF MARKS QUESTION 2 MARKS 2.1 9 2.2 8 2.3 8 2.4 10 2.5.1 1 2.5.2 2 2.5.3 6 2.6.1 4 2.6.2 4 2.7 8 TOTAL 60 7

QUESTION 3: BUSINESS VENTURES 3.1 Leadership style 3.1.1 Transactional leadership style√√ (2) 3.1.2 Impact of transactional leadership style on business Positives/Advantages - Encourages employees to work hard√ because they will receive rewards.√ - Improves employees' productivity√ and morale.√ - Business goals and objectives can be achieved√ as employees are motivated.√ - Employees know√ what are expected of them.√ - Disciplinary action procedures√ are well communicated.√ - Any other relevant answer related to the positive impact/advantages of a transactional leadership style. AND/OR Negatives/Disadvantages - Employees may become bored/lose creativity√ as they have to follow rules/ procedures.√ - A transactional leader will have to monitor the work performance of employees√ to ensure that expectations are met.√ - Managing/controlling employees√ may be time-consuming.√ - Some employees may be demoralised/unmotivated√ if they fail to reach/meet targets despite having worked very hard.√ - Not suitable for team work as all team members can be punished√ for poor performance caused by one team member.√ - Any other relevant answer related to the negative impact/disadvantages of a transactional leadership style. Max (8) 8

3.2 Distinction between management and leadership Leadership Management - Influences√ human behaviour.√ - Guides√ human behaviour.√ - Communicates√ by means of inter- - Communicates through management action/behaviour/vision/values/ functions√, e.g. line function√ charisma.√ - Encourages new ideas√ to increase - Administers plans/programs/tasks√ to productivity.√ reach targets.√ - Inspires staff to trust√ and support - Controls systems and procedures√ to each other.√ get the job done.√ - Focuses on what√ and why.√ - Focuses on how√ and when.√ - Does the right things.√ - Does things right.√ - Focuses on the horizon√ to take long- - Focuses on the bottom line√ to take term decisions.√ short-/medium-/long-term decisions.√ - Leaders are born√ with natural/ - A person becomes a manager√ instinctive leadership skills.√ because he/she is appointed in the position/trained/qualified.√ - Guides/Leads people√ to become - Manages the process of getting things active participants.√ done√ by exercising authority.√ - Have power/influence√ because of - Have power/authority√ because of the his/her knowledge/intelligence/skills.√ position into which they are appointed.√ - Always trying to find more efficient - Enforce rules on subordinates√ to ways√ of completing tasks.√ ensure that tasks are completed.√ - Motivational/Inspirational√ in their - Instructional√ in their approach.√ approach.√ - People orientated.√ - Task orientated.√ - Lead by example/trust/respect.√ - Manage by planning/organising/ leading/ control.√ - Any other relevant answer related to - Any other relevant answer related to leadership. management. Sub max (4) Sub max (4) NOTE: 1. The answer does not have to be in tabular format but the distinction must be clear. 2. Award a maximum of FOUR (4) marks if the distinction is not clear. Max (8) 9

3.3 Types of preference shares Participating preference shares √√ Shareholders: - are guaranteed minimum fixed dividends.√ - are entitled to share in any surplus company profits.√ - receive higher dividends when the company performs well.√ - have preferential rights over ordinary shares on repayment when the company closes down.√ - Any other relevant answer related to a description of participating preference shares. Sub max (3) Cumulative preference shares√√ Shareholders are: - entitled to receive minimum fixed dividends.√ - compensated for past dividends that were not paid out when profits were too low to declare dividends/Receive dividends not previously paid out.√ - Any other relevant answer related to a description of cumulative preference shares. Sub max (3) Non-cumulative preference shares√√ - Shareholders are not compensated for past dividends that were not paid out when profits were low.√ - Any other relevant answer related to a description of non-cumulative preference shares. Sub max (3) Redeemable preference shares√√ - Shares can be redeemed/bought back at the option of the issuing company, either at a fixed price on a specified date/over a certain period of time.√ - Any other relevant answer related to a description of redeemable preference shares. Sub max (3) Convertible preference shares√√ - Shares can be converted into a predetermined number of ordinary shares on the date specified when the preference shares were issued.√ - Any other relevant answer related to a description of convertible preference shares. Sub max (3) NOTE: Mark the first TWO (2) types of preference shares only. Types (4) Description (2) Max (6) 10

3.4 Partnership Success or failure factors of a partnership Criteria Success Failure 3.4.1 - Partners are actively involved in - Decision making can be time- Manage- management√ and may use the consuming√ as all partners have ment ideas of other partners.√ to be in agreement.√ - Partners have access to - Some management tasks may be expertise of other partners√ when neglected√, as one partner may tough decisions have to be leave it to others to complete.√ made.√ - Not all partners need to be - Partners may disagree on how to actively involved in management√ run the business√, which may and would rather appoint lead to tension between them.√ competent managers.√ - Partners are agents of the partnership√ and bad management decisions may be forced onto other partners.√ - Any other relevant success factor - Any other relevant failure factor on management of a partnership. on management of a partnership. Sub max (4) 3.4.2 - Partnerships pay VAT only on - High-earning partners pay more Taxation relevant products sold/services tax√, which may discourage other rendered√ which reduces tax partners from joining the administration.√ partnership.√ - The partnership does not pay - Partners may withdraw more income tax√, only the partners in cash to reduce their tax burden√ their personal capacities.√ which may cause cash flow problems for the partnership.√ - Any other relevant success factor - Any other relevant failure factor on taxation of a partnership. on taxation of a partnership. Sub max (4) Max (8) 3.5 Insurance 3.5.1 Average clause√ (1) 3.5.2 Insured amount √ x Loss/Damages√ Market value = 800 000 x 400 000√ 1 000 000 = R320 000√√ (5) NOTE: 1. Allocate full marks (5) if the answer is correct and no workings are shown. 2. If workings were shown correctly, but the final answer is wrong, award a maximum of THREE marks. 3. If the answer is incorrect, award a maximum of TWO marks for the understanding of concept and method. 4. If there are no workings shown and the answer is incorrect, allocate a ZERO mark. 11

3.5.3 Reasons for insurance - Protects business property against storm damage/fire/burglary/any unforeseen insurable circumstances/risks.√ √ - Keeps high re-instatement costs under control.√ √ - Ensures peace of mind as the risk of loss is shifted to the insurer.√ √ - Creditors may require insurance on property prior to the approval of a bond.√ √ - Any other relevant answer related to reasons for insurance on business property. NOTE: 1.Reasons for Insurance must relate to business property. 2. Mark the first TWO reasons for insurance only. (Any 2 x 2) (4) 3.6 Presentation 3.6.1 Advantages of a PowerPoint presentation - Graphic programmes have the capacity to convey ideas and support what the presenter says.√ √ - Easy to combine with sound/video clips.√ √ - Simple/Less cluttered slides may capture the interest of the audience.√ √ - Video clips can provide variety and capture the attention of the audience.√ √ - Variation of colour/background/sound immediately captures the attention of the audience/retains their interest throughout the presentation.√ √ - Slides may be used to enhance facts/summarise information.√ √ - Any other relevant answer related to the advantages of a PowerPoint presentation. NOTE: Mark the first FOUR (4) only. Max (8) 12

3.6.2 Factors to be considered during the actual presentation - Make eye contact with all the audience and face all directions of the audience.√√ - Be audible to all listeners/audience.√√ - Adjust your voice level/tone to avoid monotony.√√ - Add some humour in your presentation.√√ - Use visuals effectively to enhance the presentation.√√ - State the aims/main points of the presentation in the introduction.√√ - Put the most important information first. √√ - Summarise the presentation in the conclusion. √√ - Stand upright during the presentation/ Avoid hiding yourself behind the - equipment. √√ - Pace yourself/Do not rush or talk too slowly/ Keep it short and simple. √√ - Make appropriate use of gestures, e.g. hands to emphasize points.√√ - Any other relevant answer related to factors to be considered during the actual presentation. Max (10) [60] BREAKDOWN OF MARKS QUESTION 3 MARKS 3.1.1 2 3.1.2 8 3.2 8 3.3 6 3.4.1 4 3.4.2 4 3.5.1 1 3.5.2 5 3.5.3 4 3.6.1 8 3.6.2 10 TOTAL 60 13

QUESTION 4: BUSINESS ROLES 4.1 Diversity issues in the workplace - Poverty√ - Inequality√ - Race√ - Gender√ - Language√ - Age√ - Disability√ - Religion/Faith√ - Culture/Diverse background√ - Any other relevant answer related to diversity issues in the workplace. NOTE: Mark first SIX (6) only. (Any 6 x 1) (6) 4.2 Problem solving techniques 4.2.1 Brainstorming√√ 4.2.2 Force-field analysis√√ 4.2.3 Nominal group technique√√ 4.2.4 SCAMPER√√ 4.2.5 Empty-chair technique√√ (10) 4.3 Conflict 4.3.1 Causes of conflict - '… workers find it difficult to tolerate each other's beliefs and values.'√ - 'Many fight over the use of the business's limited resources.'√ - '… some ignore business rules.'√ - 'Management refuses to address the workers' concerns...'√ NOTE: Only allocate marks for responses that are quoted from the scenario. (Any 4 x 1) (4) 4.3.2 Ways to address causes of conflict Difficulty to tolerate each other's beliefs and values - Encourage employees to participate in cultural events organised by the business to raise awareness on others beliefs and values.√√ - TT may organise brainstorming sessions where employees from diverse backgrounds can be exposed to each other's beliefs and values.√√ - Show equal respect for all languages/religion/beliefs/values represented in TT.√√ - Any other relevant answer related to ways Trevor Tyres (TT) may address different beliefs and values as a cause of conflict. Sub max (2) Many workers fight over the use of limited resources - Distribute resources equally/fairly amongst all employees.√√ - Secure funds to buy more resources.√√ - Revise company budget to allocate funds/resources equally/fairly for special/ cultural events.√√ - Any other relevant answer related to ways Trevor Tyres (TT) may address limited resources as a cause of conflict. Sub max (2) Some employees ignore business rules 14

- Enforce strict adherence to the rules of the business by acting on non- compliance.√√ - Take disciplinary measures against employees who break the rules.√√ - Explain the importance of adhering to the business rules/procedures in achieving TT's goals/objectives.√√ - Any other relevant answer related to ways Trevor Tyres (TT) can address ignorance of the business rules as a cause of conflict. Sub max (2) Management refuses to address workers' concerns - Communication channels between management and employees should be open.√√ - Establish structures to handle employee complains/grievances.√√ - Employees' suggestion box should be available for anyone to make inputs/ suggestions anonymously.√√ - Any other relevant answer related to how Trevor Tyres (TT) can address the refusal of management to address workers' concerns as a cause of conflict. Sub max (2) NOTE: The recommendation must be linked to the cause conflict identified in the scenario. Max (8) 4.4 Stages of team development - Forming stage√√ • Individuals gather information/impressions about each other and the scope of the task/how to approach it.√ • This is a comfortable stage to be in.√ • People focus on being busy with routines, such as team organisation, e.g. who does what/when to meet each other√, etc. • Any other relevant answer related to the forming stage of team development. Sub max (3) - Storming stage√√ • Teams go through a period of unease/conflict after formation.√ • Different ideas from team members will compete for consideration.√ • Team members open up to each other and confront each other's ideas/ perspectives.√ • Tension/Struggle/Arguments occur and upset team members/There may be power struggles for the position of the team leader.√ • In some instances storming can be resolved quickly, in others, the team never leaves this stage.√ • Many teams fail during this stage as they are not focused on their task.√ • This phase can become destructive to the team/will lower motivation if allowed to get out of control.√ • This stage is necessary/important for the growth of the team.√ • Some team members tolerate each other to survive this stage.√ • Any other relevant answer related to the storming stage of team development. Sub max (3) 15

- Norming stage/Settling and reconciliation√√ • Team members form agreement and consensus.√ • Roles and responsibilities are clear and accepted.√ • Processes/Working style/Respect develops.√ • Team members have the ambition to work for the success of the team's goals.√ • Conflict may occur, but commitment and unity are strong.√ • Any other relevant answer related to the norming/settling and reconciliation stage of team development. Sub max (3) - Performing stage/Working as a team towards a goal√√ • Team members are aware of strategies/aims of the team.√ • They have direction without interference from the leader.√ • Processes and structures are set.√ • Leaders delegate and oversee the processes and procedures.√ • All members are now competent, autonomous and able to handle the decision making process without supervision.√ • Differences among members are appreciated and used to enhance the team's performance.√ • Any other relevant answer related to the performing stage of team development/ working as a team towards a goal. Sub max (3) - Adjourning/Mourning stage√√ • The focus is on the completion of the task/ending the project.√ • Breaking up the team may be traumatic as team members may find it difficult to perform as individuals once again.√ • All tasks need to be completed before the team finally dissolves.√ • Any other relevant answer related to the adjourning/mourning stage of team development. Sub max (3) NOTE: Mark first the FOUR (4) stages only. Stages (8) Explanation (4) Any (4 x 3) (12) 4.5 Implication of human rights for businesses 4.5.1 Privacy - Businesses may not violate the rights√ of employees and clients.√ - Businesses should not provide personal information√ about employees/clients to anyone else.√ - Information on employees who have disclosed their HIV/Aids status/any chronic illness√ must be kept confidential.√ - It is illegal to read other people's e-mails/record conversations√ unless stated clearly and upfront.√ - Any other relevant answer related to the implication of privacy as a human right on businesses. Sub max (2) 16

4.5.2 Equity - Businesses must give equal opportunities/not discriminate against their employees√ on the basis of gender/race/religion/sexual orientation√, etc. - Equal pay√ for work of equal value.√ - Relevant legislation√ should be applied fairly on all levels.√ - Managers should ensure that no employee suffers√ because of discrimination.√ - Any other relevant answer related to the implication of equity as a human right on businesses. Sub max (2) 4.5.3 Freedom of speech and expression - Businesses should allow open communication channels√ between management and employees.√ - Employees should be given a platform to raise their grievances√ without any victimisation.√ - An employee should not be punished/discriminated against√ for voicing his/her opinion.√ - Any other relevant answer related to the implication of freedom of speech and expression as a human right on businesses. Sub max (2) 4.5.4 Safety, security and protection of life - Employees should work in a safe working environment√ free from hazardous products/areas.√ - Provide workers with protective clothing√, e.g. gloves and footwear√, etc. - Comply to safety legislation√ such as OHSA/COIDA√, etc. - Take precautionary measures√ to ensure employees and their belongings are safe in the workplace.√ - Any other relevant answer related to the implication of safety/security and protection of life as a human right on businesses. Sub max (2) Max (8) 4.6 Distinction between decision making and problem solving Decision making Problem solving - It is often done by one person/a - Problems can be solved by a group/ member of senior management√ team√ or an individual team who makes it authoritarian.√ member.√ - Various alternatives are - Alternative solutions are generated/ considered√ before deciding on identified√ and critically evaluated.√ the best one.√ - It is part of the problem solving - Process of analysing a situation√ to cycle√ as decisions need to be identify strategies to bring about taken in each step.√ change.√ - Any other relevant answer related - Any other relevant answer related to to decision making. problem solving. Sub max (2) Sub max (2) NOTE: The answer does not have to be in tabular format but the distinction must be clear. Max (4) 17

4.7 Benefits of Corporate Social Investment (CSI) for businesses - May attract experienced employees/increase the pool of skilled labour which could increase productivity.√√ - The community feels more positive towards a business that cares for its employees/conducts itself in a responsible way.√√ - A business may have a competitive advantage, resulting in good publicity/ an improved reputation.√√ - Promotes customer loyalty resulting in increased sales/profit.√√ - Businesses may use CSI programmes as a marketing strategy to promote their products/image.√√ - May enjoy the goodwill and support of communities/attracts consumers.√√ - CSI programmes promote teamwork within businesses.√√ - CSI helps to attract investors.√√ - Businesses may receive tax advantages, such as tax reduction/rebates.√√ - Assists in solving socio-economic issues like poverty.√√ - If the corporate sector gets voluntarily involved in CSI, it is less likely that government will enforce the issue through legislation.√√ - Employees feel like they are making a difference in working for the business.√√ - It helps to retain staff/lower staff turnover as employees' health and safety are considered.√√ - Improves the health of its employees through focused CSI programmes.√√ - Businesses become more community-based by working closely with the community to roll out skills development projects.√√ - Any other relevant answer related to the benefits of CSI for businesses. Max (8) [60] BREAKDOWN OF THE MARKS QUESTION 4 MARKS 4.1 6 4.2 10 4.3.1 4 4.3.2 8 4.4. 12 4.5.1 2 4.5.2 2 4.5.3 2 4.5.4 2 4.6 4 4.7 8 TOTAL 60 18

QUESTION 5: BUSINESS OPERATIONS 5.1 Recruitment 5.1.1 External recruitment.√ √ (2) Motivation - The business has advertised the vacancy in local newspapers/ on the Internet.√ (1) Identification (2) Motivation (1) Max (3) 5.1.2 Positives/Advantages of external recruitment - New candidates bring new talents/ideas/insight/experience√ that will benefit the business.√ - There are more candidates√ to choose from.√ - Chances are better of finding suitable candidates√ with the right skills/ - qualifications/competencies.√ - Prevents unhappiness/conflict√ between existing employees who have applied for the post.√ - Recruitment agencies may also be used/paid to find candidates√ which saves time/costs.√ - Businesses are able to achieve their equity plan√ by recruiting according to equity targets set.√ - Any other relevant answer related to the positives/advantages of external recruitment. AND/OR Negatives/Disadvantages of external recruitment - External sources may be expensive√, e.g. recruitment agencies' fees/publishing costs of advertisements in newspapers/magazines.√ - Selection process may not be effective√ resulting in an incompetent candidate being chosen.√ - Information on CVs/references√ may not be reliable.√ - Recruitment process takes longer/is more expensive√ as background checks must be conducted.√ - New candidates generally take longer√ to adjust to a new work environment.√ - In-service training may be needed√ which decreases productivity during the time of training.√ - Many unsuitable applications√ can slow down the selection process.√ - Any other relevant answer related to the negatives/disadvantages of external recruitment. Max (8) 19

5.1.3 Internal recruitment√ (1) 5.2 Interviewing 5.2.1 Purpose of the interview - To determine a candidate's√ suitability for the job.√ - Match the information given by the applicant√ with the requirements of the job.√ - To get more information√ from the applicant.√ - Evaluate the skills/personal characteristics√ of the applicant.√ - Provides the applicant with the opportunity to find out more about the job/salary/working conditions√ and the business.√ - Any other relevant answer related to the purpose of an interview. Max (4) 5.2.2 Role of the interviewee/applicant during an interview - Greet the interviewer by name√ with a solid handshake and a friendly smile.√ - Listen carefully to the questions√ before responding.√ - Make eye contact√ and have good posture/body language.√ - Show confidence√ and have a positive attitude.√ - Be inquisitive√ and show interest in the business.√ - Ask clarity√ seeking questions/be assertive.√ - Show respect√ and treat the interview with its due importance.√ - Be honest about mistakes√ and explain how you dealt with it.√ - Know your strengths and weaknesses√ and be prepared to discuss it.√ - Any other relevant answer related to the role of the interviewee/applicant during an interview. Max (6) 5.3 Differences between job description and job specification Job description Job specification - Written description of the job√ and - Written description of specific its requirements.√ qualifications/skills/experience/ characteristics√ required to do the job.√ - Describes duties/responsibilities√ of - Describes the minimum acceptable a specific job√/Summary√ of the personal qualities/skills/ qualify- nature/type of job.√ cations√ needed for the job.√ - Describes key performance areas/ - Describes key requirements of the tasks for a specific job√ e.g. job title/ person who will fill the position√, e.g. duties/working conditions/location of formal qualifications/willingness to the place of work/relationship of the travel/work unusual hours√, etc. job with other jobs in the business√, etc. - Any other relevant answer related to - Any other relevant answer related to job description. job specification. Sub max (2) Sub max (2) NOTE: 1. The answer does not have to be in tabular format but differences must be clear. 2. Award a maximum of TWO (2) marks if differences are not clear. Max (4) 20

5.4 Fringe benefits 5.4.1 Examples of fringe benefits - Pension√ - Medical aid√ - Provident fund√ - Housing/Car/Travelling/Clothing allowances/Allowances√ - Unemployment Insurance Fund/UIF√ - Leave/√ - Employee share option schemes√ - Performance based incentives√ - Issuing of bonus shares√ - Access to discount products/service/company facilities√ - A cafeteria that provides subsidised/free meals√ - Any other relevant examples of fringe benefits. NOTE: Mark the first FOUR (4). (4 x 1) (4) 5.4.2 Impact of fringe benefits on businesses 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.√ - It increases employee satisfaction/loyalty√ as they may be willing to go the extra mile.√ - Improves productivity√ resulting in higher profitability.√ - Any other relevant answer related to the positive impact/advantages of fringe benefits to businesses. AND/OR Negatives/Disadvantages - Fringe benefits are additional costs√ that may result in cash flow problems.√ - Administrative costs increase√ as benefits need to be correctly recorded for tax purposes.√ - Decreases business profits√, as incentive/package/remuneration costs are higher.√ - It can create conflict/lead to corruption√ if allocated unfairly.√ - Workers only stay with the business for fringe benefits√, and may not be committed/ loyal to the tasks/business.√ - Any other relevant answer related to the negative impact/disadvantages of fringe benefits to businesses. Max (6) 5.5 Quality indicators of the marketing function - Acquiring a greater market share.√√ - Attracting customers by satisfying their needs/wants/building positive relationships.√√ - Adhering to ethical advertising practices when promoting products and services.√√ - Identifying the competitive advantage when differentiating products.√√ - Communicating effectively with customers to get feedback about their experiences of products/services sold/rendered.√√ - Making adjustments/changes to products/services based on feedback received from customers.√√ - Co-ordinating distribution with production and advertising strategies.√√ - Using pricing techniques to ensure a competitive advantage.√√ 21

- Measuring gaps between customer expectations and their actual experiences in order to diagnose/address problems regarding the quality of products.√√ - Using aggressive advertising campaigns to sustain/increase the market share.√√ - Any other relevant answer related to the quality indicators of the marketing function. Max (8) 5.6 Benefits of a good quality management system - Effective customer services are rendered√, resulting in increased customer satisfaction.√ - Time and resources√ are used efficiently.√ - Productivity increases√ through proper time management/using high quality resources.√ - Products/Services are constantly improved√ resulting in increased levels of customer satisfaction.√ - Vision/Mission/Business goals√ may be achieved.√ - Business has a competitive advantage√ over its competitors.√ - Regular training√ will continuously improve the quality of employees' skills/know- ledge.√ - Employers and employees will have a healthy working relationship√ resulting in happy/productive workers.√ - Increased market share√ and profitability.√ - Any other relevant answer related to the benefits of a good quality management system. Max (8) 5.7 Advantages of total client satisfaction for large businesses - Large businesses use market research√ to measure/monitor customer satisfaction/ analyse customer needs.√ - Continuously promote√ a positive business image.√ - May achieve a state of total customer satisfaction, if they follow sound business practices√ that incorporate all stakeholders.√ - May keep more customers/Higher customer loyalty√ which make it possible to charge higher prices.√ - May be able to gain access√ to the global market.√ - May lead to increased√ competitiveness/profitability.√ - Any other relevant answer related to the advantages of total client satisfaction as an element of TQM on large businesses. Max (8) [60] BREAKDOWN OF MARKS QUESTION 5 MARKS 5.1.1 3 5.1.2 8 5.1.3 1 5.2.1 4 5.2.2 6 5.3 4 5.4.1 4 5.4.2 6 5.5 8 5.6 8 5.7 8 TOTAL 60 22

QUESTION 6: MISCELLANEOUS TOPICS BUSINESS ENVIRONMENTS 6.1 Business Strategies 6.1.1 Forward integration/Integration√√ 6.1.2 Divestiture/Divestment/Defensive√√ 6.1.3 Market penetration/Intensive√√ 6.1.4 Conglomerate/Diversification√√ (4 x 2) (8) 6.2 Types of leave - Annual leave√√ Workers are entitled to: • 21 consecutive days' annual leave per year/One day for every 17 days worked/One hour for every 17 hours worked.√ Sub max (3) - Sick leave√√ Workers are entitled to: • Six weeks paid sick leave in a period of 36 months/1 day paid sick leave for every 26 days worked during the first six months of employment.√ • A medical certificate may be required before paying an employee who is absent for more than two consecutive days or who is frequently absent.√ Sub max (3) - Maternity leave√√ • A pregnant employee is entitled to four consecutive months' leave.√ • A pregnant employee may not be allowed to perform work that is hazardous to her or her unborn child.√ NOTE: Adoption leave may also be accepted. Sub max (3) - Family responsibility leave√√ • Three to five (3 to 5) days paid leave per year on request√: o when employee's child is born/sick.√ o in the event of the death of the employee's spouse/life partner/parent/ adoptive parent/grandparent/child/adoptive child/grandchild/sibling.√ • An employer may require reasonable proof, before granting this leave.√ • Male employees are entitled to up to three/five day's paternity leave when the child is born.√ Sub max (3) NOTE: Mark the first TWO (2) types of leave only. Types (4) Explanation (2) Max (6) 23

BUSINESS VENTURES 6.3 Insurance 6.3.1 Unemployment Insurance Fund/UIF√√ (2) 6.3.2 Road Accident Fund/RAF√√ (2) 6.4 Examples of insurable and non-insurable risks Insurable risks Non-insurable risks - Theft√ - Nuclear weapons/-war√ - Burglary√ - Changes in fashion√ - Fidelity insurance√ - Improvement in technology√ - Money in transit√ - Irrecoverable debts√ - Fire√ - Financial loss due to bad management√ - Storms/Wind/Rain/Hail√ - Possible failure of a business√ - Damage to/Loss of assets/vehicles/ - Shoplifting during business hours√ equipment/buildings/premises√ - Loss of income if stock is not received - Injuries on premises√ in time√ - Any other relevant example of - Any other relevant example of non- insurable risks. insurable risks. Sub max (2) Sub max (2) NOTE: 1. Mark the first TWO (2) of each type of risk. Max (4) 6.5 Differences between private and public companies Private companies Public companies - May not offer shares√ to the general - Trades its shares publicly√ on the public.√ Johannesburg Securities Exchange.√ - Name must end√ with Proprietary - Name must end√ with Limited/Ltd.√ Limited/(Pty) Ltd.√ - Financial statements must be - Annual financial statements√ need to be independently reviewed√ but they audited.√ need not be audited.√ - Does not need to publish a pros- - Have to register and publish√ a pros- pectus√ as it cannot trade its shares pectus with the CIPRO.√ publicly.√ - The company is not required to - Must raise a minimum subscription raise√ the minimum subscription/ prior√ to commencement of the issue minimum shares.√ company.√ - Any other relevant answer related to - Any other relevant answer related to a a private company. public company. Sub max (4) Sub max (4) NOTE: 1. Answer must be in tabular format. 2. The differences must be clearly linked. 3. Award a maximum of FOUR (4) marks if differences are not clear. Max (8) 24

BUSINESS ROLES 6.6 Characteristics of successful teams - Successful teams share a common goal√ as team members are part of the process of setting goals for the group.√ - Share a set of team values√ and implement group decisions.√ - Teams value the contributions of individual members√ and reach consensus on differences.√ - There is a climate of respect/trust√ and honesty.√ - Team members enjoy open communication√ and deal immediately with conflict.√ - Teams are accountable√ and members know the time frame for achieving their goals.√ - Teams pay attention to the needs√ of the individual team members.√ - Successful teams have sound√ intra-team relations.√ - Creates opportunities where team members can develop√, so that they learn from the experience of working in a team.√ - Regular reviews of team processes and progress√ may help to detect/solve problems sooner.√ - Balance the necessary skills/knowledge/experience/expertise√ to achieve team objectives.√ - Any other relevant answer related to the characteristics of successful teams. Max (6) 6.7 Ways in which businesses can deal with difficult people/personalities OPTION 1 - Get perspective from others who have experienced the same kind of situation to be able to understand difficult employees.√√ - Act pro-actively if possible, as a staff/personnel problem is part of a manager's responsibilities.√√ - Regular meetings with supervisors/departmental heads should help to identify difficult/problem behaviour.√√ - Ask someone in authority for their input into the situation.√√ - Identify the type of personality which is creating the problem.√√ - Meet privately with difficult employees, so that there are no distractions from other employees/issues.√√ - Make intentions and reasons for action known, so that difficult person/people feel at ease.√√ - Employees should be told what specific behaviours are acceptable by giving details about what is wrong/unacceptable and also an opportunity to explain their behaviour.√√ - A deadline should be set for improving bad/difficult behaviour.√√ - The deadline date should be discussed with the difficult employee and his/her progress should be monitored/assessed prior to the deadline.√√ - Guidelines for improvement should be given.√√ - Do not judge the person, but try to understand him/her/Understand his/her intentions and why he/she reacts in a certain way.√√ - Keep communication channels open/Encourage employees to communicate their grievances to management.√√ 25

- Build rapport/sound relations by re-establishing personal connection with colleagues, instead of relying on e-mails/messaging/social media.√√ - Help difficult employees to be realistic about the task at hand.√√ - Remain calm and in control of the situation to get the person(s) to collaborate.√√ - Treat people with respect, irrespective of whether they are capable/competent or not.√√ - Sometimes it may be necessary to ignore and only monitor a difficult person.√√ - Identify and provide an appropriate support program to address areas of weakness.√√ - Any other relevant answer related to how businesses can deal with difficult people/personalities. AND/OR OPTION 2 (Personalities) Type of Strategy to deal with a personality personality - Complainer√ - Listen to the complaints but do not acknowledge them.√ - Interrupt the situation and move to the problem-solving process as soon as possible.√ - Indecisiveness√ - Guide them through alternatives.√ - Stay in control and emphasise the importance of making a decision.√ - Help them make the decision or solve the problem.√ - Over agree√ - Be firm and do not let them make promises that they cannot keep.√ - Follow up on their actions.√ - Negativity√ - Be firm with them and do not let them draw the supervisor into their negativity.√ - Listen to them but do not agree with them.√ - Experts√ - Be firm and assertive.√ - Do not accuse them of being incorrect/Do not get caught in their game.√ - Know your facts.√ - Quiet√ - Do not fill their silence with words.√ - Wait for their response.√ - Prompt them through the process so that they give input.√ - Restrict the time of the discussion.√ - Aggressive√ - Allow them time to speak and blow off steam.√ - Be firm, but do not attack them.√ - Do not allow them to be hostile towards others.√ NOTES (applicable to OPTION 2): 1. Allocate a maximum of THREE (3) marks for only identifying the type of personality without a strategy. 2. Allocate TWO (2) marks for indicating the strategy without identifying the type of the personality/Take particular note of overlap of strategies. Max (8) 26

BUSINESS OPERATIONS 6.8 Distinction between the piecemeal and the time-related salary determination methods Piecemeal Time related - Workers are paid according to the - Workers are paid for the amount of time√ number√ of items/units produced/action they spend at work/on a task.√ performed.√ - Workers are not remunerated for the - Workers with the same experience/ number of hour’s worked√, regardless of qualifications are paid on salary scales√ how long it takes to make the items.√ regardless of the amount of work done.√ - Mostly used in factories√ particularly in - Most private and public sector the textile/technology industries.√ businesses√ use this method.√ - Any other relevant answer related to a - Any other relevant answer related to a piecemeal salary determination method. time related salary determination method. Sub max (2) Sub max (2) NOTE: 1. The answer does not have to be in tabular format, but the distinction must be clear. 2. Award a maximum of TWO (2) marks, if the distinction is not clear. Max (4) 6.9 Business Functions 6.9.1 Public Relations√√ (2) 6.9.2 Financial/Financing function√√ (2) 6.9.3 Administration function (Administration)/Management Information system/ MIS/Information systems√√ (2) 6.10 Application of a PDCA model/cycle - Businesses should identify the opportunity for improvement.√√ - Plan the method and approach.√√ - Decide whether new processes/changes are necessary.√√ - Implement the change on a small scale.√√ - Check whether the processes are working effectively.√√ - Use data to analyse results to determine whether change(s) made a difference.√√ - If the change was successful, implement it on a wider scale and continuously assess results.√√ - Revise the process/Take necessary actions if new systems are not working.√√ - Any other relevant answer related to how businesses can apply the PDCA model/cycle to improve the quality of their products. Max (6) [60] BREAKDOWN OF MARKS QUESTION 6 MARKS 6.1 8 6.2 6 6.3 4 6.4 4 6.5 8 6.6 6 6.7 8 6.8 4 6.9 6 6.10 6 TOTAL 60 TOTAL SECTION B: 180 27

SECTION C QUESTION 7: BUSINESS ENVIRONMENTS (LEGISLATION) 7.1 Introduction - The CPA was promulgated/introduced to redress economic inequalities of the past.√ - It applies to consumers/buyers in South Africa.√ - It promotes the social/economic welfare of consumers in South Africa.√ - The Act impacts on almost every business sector in South Africa.√ - Consumers are regarded as recipients of goods and services.√ - Any other relevant introduction related to the Consumer Protection Act. Max (2) 7.2 Purpose of the Consumer Protection Act (CPA) - Promotes fair/accessible and sustainable places for people to sell their products.√√ - Establishes national standards to protect consumers.√√ - Provides guidelines for better consumer information and to prohibit unfair business practices.√√ - Promotes responsible consumer behaviour.√√ - Promotes consistent laws relating to consumer transaction and agreement.√ √ - Establishes a National Consumer Commission (NCC).√√ - Ensures that consumers have access to information they need to make informed choices.√√ - Promotes the rights and full participation of historically disadvantaged individuals as consumers.√√ - Ensures that consumers are not misled/deceived by suppliers of goods/ services.√√ - Promotes consumer safety by protecting them from hazardous products/ services.√√ - Strengthens a culture of consumer rights and responsibilities.√√ - Empowers consumers to take legal action if their rights are not upheld.√√ - Protects consumers against contracts that include unfair terms which limit the liability of suppliers.√√ - Protects consumers against unscrupulous businesses such as fly-by-night franchisors.√√ - Allows consumers and businesses to resolve disputes fairly.√√ - Any other relevant answer related to the purpose of the Consumer Protection Act. Max (10) 7.3 Consumer rights 7.3.1 Right to choose√√ Consumers have the right to: - choose suppliers√ and goods.√ - shop around√ for the best prices.√ - reject goods that are not the same√ as the sample marketed.√ - cancel/renew√ fixed-term agreements.√ - request written√ quotations/cost estimates.√ - Any other relevant answer related to the consumers' right to choose. Sub max (4) 28

7.3.2 Right to privacy and confidentiality√√ - Consumers have the right to stop/restrict√ unwanted direct marketing.√ - They can object√ to unwanted promotional e-mails/telesales.√ - They have the right to stop/lodge complaints√ about the sharing of their personal details.√ - Any other relevant answer related to the consumers' right to privacy and confidentiality. Sub max (4) 7.3.3 Right to fair and honest dealings√√ - Suppliers may not use√ physical force or harass customers.√ - Suppliers may not give√ misleading/false information.√ - Businesses may not promote pyramid schemes√ and/or chain-letter schemes.√ - Businesses may not overbook/oversell goods/services√ and then not honour the agreement.√ - Any other relevant answer related to the consumers' right to fair and honest dealings. Sub max (4) 7.3.4 Right to information about products and agreements/Right to disclosure and information√√ - Contracts and agreements√ should be in plain language and easy to understand.√ - Businesses should display prices√ which are fully inclusive disclosing all costs.√ - Consumers may request the unit and bulk price√ of the same product.√ - If two prices for the same product are displayed√, consumers should pay the lower price.√ - Businesses should label products√ and trade descriptions correctly.√ - Any other relevant answer related to the consumers' right to information/ disclosure. Sub max (4) 7.3.5 Right to fair/responsible marketing/promotion√√ - Businesses should not mislead consumers√ on pricing, benefits/uses of goods.√ - Consumers may cancel purchases made through direct marketing√ within five working days/cooling off-period.√ - All information related to the country of origin/expiry dates/ingredients of the products √ should be disclosed/clearly labelled.√ - Any other relevant answer related to the consumers' right to fair marketing/ promotion. Sub max (4) 7.3.6 Right to fair value/good quality and safety√√ - Consumers have the right to demand√ quality service or goods.√ - They have the right to return faulty items√ if the fault occurs within six months after purchasing the item.√ - Consumers may receive an implied√ warranty or a written warranty.√ - Any other relevant answer related to the consumers' right to fair value, good quality and safety. Sub max (4) 29

7.3.7 Right to accountability from suppliers√√ - Consumers have the right to be protected√ in lay-bye agreements.√ - Businesses should honour credit vouchers√ and prepaid services.√ - Any other relevant answer related to the consumers' right to accountability from suppliers. Sub max (4) 7.3.8 Right to fair/just/reasonable terms and conditions√√ - Businesses should provide consumers with written notices of clauses √ that may limit consumer rights.√ - Businesses may not market/sell goods√ at unfair prices.√ - Any other relevant answer related to the consumers' right to fair/just/reasonable terms and conditions. Sub max (4) 7.3.9 Right to equality in the consumer market place√√ - Businesses should not limit√ access to goods and services.√ - Quality of goods may not vary√ when supplied to different consumers.√ - Businesses may not charge different prices√ for the same goods/services.√ - No discrimination should occur√ when businesses market products and services in different areas/places.√ - Any other relevant answer related to the consumers' right to equality in the consumer market place. Sub max (4) NOTE: Mark the first FOUR (4) only. Max (16) 7.4 Impact of CPA on businesses Positives/Advantages - Enables businesses to resolve disputes fairly√ through the National Consumer Commission/Consumer Court/Industrial ombudsmen.√ - Businesses may build a good image√ when they ensure that consumer rights are not violated.√ - May gain consumer loyalty√, if they comply with CPA.√ - Businesses are less likely to have court cases against them√ for consumer rights violations.√ - Businesses may be protected√ if they are regarded as consumers.√ - They may be safeguarded√ from dishonest competitors.√ - Prevents larger businesses√ from undermining smaller ones.√ - Any other relevant answer related to the positive impact/advantages of CPA on businesses. AND/OR 30

Negatives/Disadvantages - Businesses have to replace/repair faulty items/refund money√ if the fault occurs within six months after purchase.√ - They must disclose more information√ about their products and processes/ services.√ - Confidential business information√ may become available to competitors.√ - Consumers can take advantage of businesses√ and return goods when it is not necessary to do so.√ - Processes and procedures required by CPA√ can be expensive and time consuming.√ - Businesses may feel unnecessarily burdened√ by legal processes.√ - Penalties for non-compliance√ may be very high.√ - Staff need to be trained/Legal experts need to be consulted√, which can increase costs.√ - Many business documents need to be simplified/revamped at extra cost√, as consumers have a right to receive contracts in simple/understandable language.√ - Administration costs increase√, as legal contracts need to be worded in plain language/pitched at the level of the consumer.√ - Businesses may need insurance√ against claims from consumers√/Provisions in the Act increase the risks for unforeseen claims and law suits√, which also increase the risk for insurance companies in protecting businesses.√ - Supply chain management in stock levels will have to change√, as defective goods have to be replaced within six months at the request of the customer.√ - Information technology systems need to be improved√ as the retailer must keep more detailed records of interactions with consumers/be able to report to the National Consumer Commission.√ - Any other relevant answer related to the negative impact/disadvantages of CPA on businesses. Max (12) 7.5 Practical ways to comply with the CPA - Disclose prices of all products on sale.√√ - Ensure that goods/services offered are standardised/of the same quality.√√ - Comply with the legal requirements of promotional competitions.√√ - Display the name of the business on all business documents, e.g. letterheads/ invoices/contracts.√√ - All agreements must provide for a five-day cooling off period.√√ - Comply with requirements regarding the display of information on labels/ packaging, e.g. smoking is hazardous for pregnant woman.√√ - Bundling of goods/services should benefit consumers, e.g. offering a cell phone and a tablet at a special price.√√ - Provide adequate training to staff on the CPA.√√ - Implement measures that will facilitate complaints, e.g. suggestion boxes.√√ - Any other practical way that business should implement to comply with the CPA. Max (8) 31

7.6 Conclusion - The CPA forces both businesses and consumers to act responsibly when doing business.√√ - Non-compliance by businesses may result in penalties/legal action.√√ - Any other relevant conclusion related to the CPA. Max (2) [40] QUESTION 7: BREAKDOWN OF MARK ALLOCATION Details Maximum Total Introduction 2 Purpose of CPA 10 Consumer rights 16 Max Impact of CPA on businesses 12 32 Compliance by businesses 8 Conclusion 2 INSIGHT Layout 2 Analysis, interpretation 2 8 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO - For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if some requirements are met. Allocate 0 marks where requirements are not met at all. 32

QUESTION 8: BUSINESS VENTURES (INVESTMENTS) 8.1 Introduction - Investors have a range of investment opportunities to choose from.√ - They measure these investment opportunities against criteria for good investment.√ - Investors set financial goals and consider different factors when making these decisions.√ - The Johannesburg Security Exchange (JSE) is a formal market comprising of all the public companies that have been listed.√ - The National Treasury of South Africa issues RSA Retail Savings Bonds/ Government Retail Bonds to the general public.√ - Any other relevant introduction related to investment in shares on the JSE/RSA Retail Savings Bonds/Government Retail Bonds. Max (2) 8.2 Factors to be considered when making investment decisions 8.2.1 Return on Investment (ROI) √√ - Refers to income from the investment√, namely interest, dividends or capital appreciation (growth/increase) on the original amount invested.√ - Generally, there will be a direct link√ between risk and return.√ - The return should be expressed√ as net after-tax gains on the investment.√ - Returns can be in the form of capital gains√ where the asset appreciates in value.√ - The net after-tax return should be higher√ than the inflation rate.√ - Any other relevant answer related to ROI. Sub max (4) 8.2.2 Risk√√ - Refers to the chance that the invested amount may reduce in value/lost in total over a period of time√, due to unforeseen circumstances.√ - The higher the potential return√, the higher the risk of a potential loss.√ - Example: investing in shares has a higher risk√ than investing in a fixed deposit.√ - Any other relevant answer related to risk. Sub max (4) 8.2.3 Liquidity√√ - An amount of capital could be invested in a type of investment√ that can easily be converted to cash.√ - The term liquidity is used to describe the ease and speed√ with which investors can convert an investment into cash.√ - Example: an investment in a savings account will be easier to convert into cash√ than an investment in a fixed deposit which is usually deposited for a fixed period of time.√ - Any other relevant answer related to liquidity . Sub max (4) 8.2.4 Taxation√√ - A good investment√ will yield good after-tax returns.√ - Income tax implications must be considered√ in order to ensure a high net after-tax return.√ - Tax rates are not necessarily the same√ for different investments.√ - Any other relevant answer related to taxation. Sub max (4) 8.2.5 Inflation rate√√ 33

- Inflation refers to a decrease√ in the value of money due to rising prices.√ - People are affected by a high inflation rate√, because their money/purchasing power decreases.√ - The return on investment should be higher√ than the inflation rate.√ - Inflation has a positive effect on some investments√ such as property and shares where the income will increase as inflation increases.√ - Any other relevant answer related to inflation rate. Sub max (4) 8.2.6 Investment period√√ - This refers to the duration of the investment√ which may influence the return on investment.√ - It can be short, medium√ and/or long term.√ - The investment period will depend√ on a customer's personal needs.√ - Any other relevant answer related to the investment period. Sub max (4) 8.2.7 Investment planning factors√√ - Investors should always consider the safest√ possible investment opportunities.√ - Some investments offer a low income on invested capital√, but it could be a safer investment than one that promises a higher income.√ - Examine opportunities√ with a history of good return.√ - Divide investments√ between various investment options.√ - The method of calculating√ the interest/return on investment should be considered.√ - Any other relevant answer related to investment planning factors. Sub max (4) 8.2.8 Budgets√√ - Investors can determine the amount of surplus money√ that can be invested.√ - Investors must budget√ for unforeseen costs.√ - Budget should provide√ for contingency plans/investments/savings.√ - Any other relevant answer related to budgets. Sub max (4) 8.2.9 Volatility/Fluctuations on investment markets√√ - Fluctuation in national√ and international economic trends should be considered.√ - The level of volatility√ will determine the amount of returns.√ - Any other relevant answer related to the volatility/fluctuations of the market. Sub max (4) Max (16) 34

8.3 Functions of the Johannesburg Security Exchange (JSE) - Gives opportunities to financial institutions√, e.g. insurance companies to invest their access funds in shares.√ - Serves as a barometer/indicator√ of economic conditions in South Africa.√ - Keeps investors informed√ by publishing share prices daily.√ - Acts as a link√ between investors and public companies.√ - Shares are valued√ and assessed by experts.√ - Small investors√ are invited to take part in the economy of the country through the buying/selling of shares.√ - Venture capital market√ is made possible.√ - Strict investment rules√ ensure as a disciplined/orderly market for securities.√ - Encourages√ new investments.√ - Mobilises the funds√ of insurance companies and other institutions.√ - Raises√ primary capital.√ - Regulates the market√ for dealing with shares.√ - Plans, researches and advises√ on investment possibilities.√ - Ensures that the market√ operates in a transparent manner.√ - Provides protection√ for investors.√ - Encourages short-term√ investment.√ - Facilitates electronic trading√ of shares/STRATE.√ - Any other relevant answer related to the functions of the JSE. Max (12) 8.4 Distinction between compound and simple interest Compound interest Simple interest - Interest earned on original amount - Interest earned on the original amount√ invested√, as well as interest earned and not on the interest accrued.√ in previous period(s).√ - The principal amount grows√ with the - The principal amount remains the same√ addition of interest to it.√ over the entire period of investment.√ - Interest is calculated on the higher - The interest is kept separate√ unless it is principal amount√ and again added to reinvested.√ it.√ - Yields high√ return on investment.√ - Yields less√ return on investment.√ - Total amount of interest earned on - Total amount of interest earned on investment√ is high.√ investment√ is less.√ - Any other relevant answer related to - Any other relevant answer related to compound interest. simple interest. Sub max (4) Sub max (4) NOTE: 1. The answer does not have to be in tabular format, but the distinction must be clear. 2. Award a maximum of FOUR (4) marks, if the distinction is not clear. Max (6) 35

8.5 Impact of RSA Retail Savings Bonds/ Government Retail Bonds on investors Positives/Advantages - Guaranteed returns√, as interest rate is fixed for the whole investment period.√ - Interest rates√ are market related.√ - Investment may be easily accessible√, as cash may be withdrawn after the first twelve months, subject to penalties.√ - Low risk/Safe investment√, as it is invested with the South African Government which cannot be liquidated.√ - It is an affordable type of investment√ for all levels of income earners including pensioners.√ - Retail bonds are easily/conveniently obtained√ electronically/from any Post Office/ Pick 'n Pay shop/directly from National Treasury.√ - No charges/costs/commissions payable√ on this type of investment.√ - Interest is usually higher√ than on fixed deposits.√ - Retail bonds are listed√ on the capital bond markets/on the JSE.√ - Investors younger than 18 years/Minors may invest with the help of a legal guardian√, which encourages saving from a young age.√ - Any other relevant answer related to the positive impact/advantages of RSA Retail Savings Bonds/Government Retail Bonds on investors. AND/OR Negatives/Disadvantages - Retail bonds cannot be ceded to banks√ as security for obtaining loans.√ - A minimum of R1 000 must be invested√, which may be difficult for some small investors to accumulate.√ - Retail bonds are not freely transferable√ amongst investors.√ - Investors need to have valid SA identification/should be older than 18 years√ which may discourage foreigners/young people to invest.√ - Penalties are charged for early withdrawals√, if the savings is less than 12 months old.√ - Any other relevant answer related to the negative impact/disadvantages of RSA Retail Savings Bonds/Government Retail Bonds on investors. Max (12) 8.6 Conclusion - After considering the various investment opportunities and risk factors, investors can make a calculated decision.√√ - Investors should make investments from an early age to reap the benefits of wealth creation.√√ - Any other relevant conclusion related to investments in shares on the JSE/RSA Retail Savings Bonds/Government Retail Bonds. Max (2) [40] 36

QUESTION 8: BREAKDOWN OF MARK ALLOCATION Details Maximum Total Introduction 2 Investment decision factors 16 Functions of the JSE 12 Max Distinction between compound and 32 simple interest 6 Impact of RSA Retail savings bonds 12 Conclusion 2 INSIGHT Layout 2 Analysis, interpretation 2 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO – For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if only some of the requirements are met. Allocate 0 marks where requirements are not met at all. 37

QUESTION 9: BUSINESS ROLES (ETHICS AND PROFESSIONALISM) 9.1 Introduction - Ethical behaviour and business practice are expected from every employee in the business.√ - Ethical and professional behaviour means that the highest legal and moral standards are upheld when dealing with stakeholders.√ - Businesses that adopt professional, responsible and ethical business practices will remain profitable/sustainable over a long period of time.√ - Any other relevant introduction related to ethical and professional business practices. Max (2) 9.2 Professional, responsible and ethical business practices - Businesses should treat all employees equally.√√ - Plan properly and put preventative measures in place.√√ - Pay fair wages/salaries which is in line with the minimum requirements of the BCEA/Remunerate employees for working overtime and during public holidays.√√ - Engage in environmental awareness programmes/Refrain from polluting the environment, e.g. by legally disposing of toxic waste.√√ - Refrain from starting a venture using other businesses' ideas that are protected by law.√√ - Business decisions and actions must be clear/transparent to all stakeholders.√√ - Businesses should be accountable/responsible√ for their decisions and actions/ patents rights.√√ - Pay tax regularly/Register with SARS to comply with the law.√√ - Any other relevant answer related to how professional, responsible and ethical business practice should be conducted. NOTE: Mark the first FIVE only. (Any 5 x 2) (10) 9.3 Distinction between professional and ethical behaviour Professional behaviour Ethical behaviour - Refers to what is right/wrong/accept- - Refers to the principles of right and able√ in a business.√ wrong/acceptable√ in society.√ - Set of standards√ of expected - Conforms to a set of values√ that are behaviour.√ morally acceptable.√ - Applying a code of conduct√ of a - Forms part of a code of conduct√ to profession or business.√ guide employees to act ethically.√ - Focuses on developing a moral - Focuses on upholding the reputation√ compass√ for decision making.√ of a business/profession.√ - Includes guidelines√ on employees' - Involves following the principles of appearance/communication/attitude/ right or wrong√ in business responsibility√, etc. activities/practices/dealings.√ - Any other relevant answer related to - Any other relevant answer related to professional behaviour in a business. ethical behaviour in a business. Sub max (4) Sub max (4) NOTE: 1. The answer does not have to be in tabular format, but the distinction must be clear. 2. Award a maximum of FOUR (4) marks, if the distinction is not clear. Max (6) 38

9.4 Issues that could challenge ethical and professional behaviour in a business. 9.4.1 Pricing of goods in rural areas - Some businesses in the rural areas exploit their customers√ by adding much more than necessary to their prices.√ - Some consumers in rural areas have little economic power√ and are vulnerable to exploitation.√ - Business may form monopolies in rural areas√ and increase their prices unilaterally.√ - It may be common practice to pay higher prices for goods√ of inferior quality in rural areas.√ - Prices of goods in these areas are generally based√ on the personal characteristics of the consumer.√ - Any other relevant answer related to pricing of goods in rural areas as a challenge for ethical and professional business practice. Sub max (4) Recommendations - Businesses should be fair and apply reasonable pricing.√√ - Access to rural areas should be increased, so that more products and a bigger variety is available.√√ - Consumers in rural areas should insist on prices being fair and report any unfair pricing.√√ - Entrepreneurship should be encouraged in these areas.√√ - Cost effective ways of transporting the products can be investigated.√√ - Suppliers can work together when delivering products to remote rural area.√√ - Any other relevant recommendation related to prices in rural areas as a challenge for ethical and professional business practice. Sub max (6) 9.4.2 Sexual harassment - A violation of basic human rights that normally happen when someone in power abuses his/her power/position√, e.g. gesture/remark/action/suggestive behaviour which victimises the worker.√ - Sexual harassment is forbidden by law√, as a victim may charge someone who has victimised him/her in a sexual manner.√ - The affected party is normally reluctant to report the incident√ due to fear of victimisation.√ - Manager promises an increase in salary/ a promotion/Quid pro quo harassment√ in exchange for sexual favours.√ - Any other relevant answer related to sexual harassment as a challenge for ethical and professional business practice. Sub max (4) 39

Recommendations - Implement internal complaints and disciplinary procedures.√√ - Educate employers on sexual harassment matters.√√ - Formulate a policy regarding sexual harassment.√√ - Create a good working environment where all employees' rights and dignity are respected.√√ - Internal investigation should be made in order to determine the seriousness of the harassment.√√ - Serious cases/matters on sexual harassment should be reported to the appropriate institutions such as the South African Police Services (SAPS).√√ - Ensure compliance with the law/business code of conduct.√√ - Any other relevant recommendation related to sexual harassment as a challenge for ethical and professional business practice. Sub max (6) 9.4.3 Unauthorised use of funds - This form of fraud is the misuse of money without prior authorisation√ from a senior manager.√ - Fraud increases the cost of doing business/affects competition/discourages investors√ when prices are increased to absorb the losses.√ - Use of company assets√ for private use/personal gain.√ - Any other relevant answer related to unauthorised use of funds as a challenge for ethical and professional business practice. Sub max (4) Recommendations - Limit the number of employees having access to business funds/assets.√√ - Identify risk areas/ vulnerable areas.√√ - Implement/Introduce fraud prevention strategies.√√ - Conduct regular audits.√√ - Businesses must educate employees about the impact of fraud.√√ - Fraud prevention should be a collective responsibility of business and workers.√√ - Clear policies should be in place so that employees are aware of what is considered to be fraud.√√ - Any other relevant recommendation related to unauthorised use of funds as a challenge for ethical and professional business practice. Sub max (6) Description: Max (12) Recommendation: Max (18) Max (30) 9.5 Conclusion - A business code on ethics and conduct should improve relationships and eliminate unethical business practices.√√ - Employees who do not adhere to a code of ethics and conduct should be disciplined.√√ - Businesses can make use of good corporate governance to address issues that challenge ethical and professional behaviour.√√ - Any other relevant conclusion related to ethical and professional business practices. Max (2) [40] 40

QUESTION 9: BREAKDOWN OF MARK ALLOCATION Details Maximum Total Introduction 2 Professional, responsible and 10 ethical business practice Distinction between ethical and 6 Max professional behaviour Three Unethical issues: 32 12 Description Recommendations 18 Conclusion 2 INSIGHT Layout 2 Analysis, interpretation 2 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO – For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if only some of the requirements are met. Allocate 0 marks where requirements are not met at all. 41

QUESTION 10: BUSINESS OPERATIONS (HUMAN RESOURCES) 10.1 Introduction - The objective of selection is to choose applicants who are more likely to succeed in the advertised positions.√ - The employer and the employee must draw up a legal/binding employment contract.√ - A good induction programme will enable the new employee to quickly settle in.√ - All appointment procedures should be conducted within the framework of the Employment Equity Act (EEA) to ensure fairness.√ - Any other relevant introduction related to selection/employment contract /induction programme and compliance with the EEA. Max (2) 10.2 Selection process - Determine fair assessment criteria√ on which selection will be based.√ - Use the assessment criteria to assess all CVs/application forms√ received during recruitment√/Preliminary screening√ is done by sorting the applications received according to the criteria for the job.√ - Check that applicants are not submitting false documents√ such as forged certificates/degrees.√ - Make a preliminary list of all applicants√ who qualify for the post.√ - Screen and check references√, e.g. check applicants' criminal records/credit history/social media√, etc. - Conduct preliminary interviews√ to identify suitable applicants.√ - Inform all applicants√ about the outcome of the application.√ - Compile a shortlist√ of approximately five people.√ - Invite the shortlisted applicants/candidates√ for an interview.√ - Shortlisted candidates√ may be subjected to various types of selection tests, e.g. skills test.√ - A written offer is made√ to the chosen candidate.√ - Any other relevant answer related to the selection process. NOTE: Procedure can be in any order. Max (12) 10.3 Legal requirements of the employment contract - Employment contract is the written agreement√ between the employer and the employee.√ - It is a legally binding document√ even though certain aspects of the contract are negotiable.√ - It may not contain any requirements√ that are in conflict with the BCEA.√ - Parties’ involved√ must have contractual capacity.√ - The employer and the employee must both be satisfied√ with the conditions in the employment contract.√ - Neither the employee nor the employer may unilaterally√ change aspects of the employment contract.√ - It should include a code of conduct and/or a code of ethics√ for employees.√ - Specific details of the job/remuneration package√ should be clearly explained to employees/stipulated in the contract.√ - The human resources manager must explain the terms and conditions√ of the employment contract to employees if deemed necessary.√ - It should set out clearly√ the conditions of employment/duties/responsibilities of the employees.√ - It must stipulate what employee would receive√ in terms of benefits and labour legislation.√ 42

- All business policies/procedures/disciplinary codes√ should form part of the employment contract.√ - Employers must allow employees to read through the conditions of service and code of conduct√ before they sign the contract.√ - New employees may also consult legal experts√ to help them understand the terms and conditions of the contract.√ - Any other relevant answer related to the legal requirements of the employment contract. Max (14) 10.4 Aspects that should be included in the induction programme - Safety regulations and rules.√√ - Overview of the business.√√ - Information about the business products/services.√√ - Tour of the premises and introduction to key people and close colleagues.√√ - Conditions of employment including working hours/leave application process/ disciplinary procedures√√, etc. - Administration details including systems/processes/logistics.√√ - Meeting with senior management who will explain the company's vision/values/ and job description/daily tasks.√√ - Discussion of the employment contract and conditions of service.√√ - Discussion on personnel policies, e.g. private phone calls/Internet use√√, etc. - Discussion on employees' benefits.√√ - Corporate social responsibility programmes.√√ - Any other relevant answer related to aspects that should be included in the induction programme. Max (12) 10.5 Compliance with the Employment Equity Act (EEA) - Joe must guard against discriminatory appointments.√√ - Assess the racial composition of all employees, including senior management.√√ - Ensure that there is equal representation of all racial groups in every level of employment.√√ - He must promote equal opportunities and fair treatment.√√ - Appointment process must be clearly defined, so that all parties are well informed.√√ - He may use certified psychometric tests to assess applicants/employees to ensure that suitable candidates are appointed.√√ - He must ensure that diversity/inclusivity in the workplace is achieved.√√ - Implement affirmative action measures to redress disadvantages experienced by designated groups.√√ - Prepare an employment equity plan in consultation with employees.√√ - Implement an employment equity plan.√√ - Submit the employment equity plan to the Department of Labour.√√ - Assign one or more senior managers to ensure implementation and monitoring of the employment equity plan.√√ - Eliminate barriers that have an adverse impact on designated groups.√√ - Reasonable accommodation of people from designated groups.√√ - Retain/Develop/Train designated groups, including skills development.√√ - Regular report to the Department of Labour on progress in implementing the plan.√√ - Any other relevant answer related to how Joe can comply with the Employment Equity Act (EEA) when making new appointments. Max (8) 43

10.5 Conclusion - Employees are the most important resource in any business and its success is strongly influenced by a good selection process and induction programme.√√ - An employment contract serves as proof of employment in the case of a dispute which ends up in a court of law.√√ - The EEA not only promotes and regulates affirmative action, but also gives guidance in conducting a fair appointment process.√√ - Any other relevant conclusion related to selection, employment contract, induction programme and compliance with EEA. Max (2) [40] QUESTION 10: BREAKDOWN OF MARK ALLOCATION Details Maximum Total Introduction 2 Selection process 12 Legal requirements of the 14 Max employment contract 32 Induction programme 12 Compliance with EEA 8 Conclusion 2 INSIGHT Layout 2 Analysis, interpretation 2 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO - For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if some requirements are met. Allocate 0 marks where requirements are not met at all. TOTAL SECTION C: 80 GRAND TOTAL: 300 44

NOVEMBER 2016 SECTION A QUESTION 1 1.1 1.1.1 D√√ 1.1.2 A√√ 1.1.3 B√√ 1.1.4 C√√ 1.1.5 A√√ 1.1.6 B√√ 1.1.7 D√√ 1.1.8 D√√ 1.1.9 C√√ 1.1.10 A√√ (10 x 2) (20) 1.2 1.2.1 interview√√ 1.2.2 preference√√ 1.2.3 CCMA√√ 1.2.4 fronting√√ 1.2.5 dismissed√√ (5 x 2) (10) 1.3 1.3.1 H√√ 1.3.2 E√√ 1.3.3 A√√ 1.3.4 F√√ 1.3.5 J√√ (5 x 2) (10) TOTAL SECTION A: 40 BREAKDOWN OF MARKS QUESTION 1 MARKS 1.1 20 1.2 10 1.3 10 TOTAL 40 45

SECTION B QUESTION 2: BUSINESS ENVIRONMENTS 2.1 Provisions of the Basic Conditions of Employment Act (BCEA) - Overtime.√ - Working hours.√ - Meal breaks and rest periods.√ - Leave conditions.√ - Working on public holidays.√ - Legal requirements of the employment contract.√ - Termination conditions of the employment contract.√ - Remuneration.√ - Provision for compliance.√ - Any other relevant answer related to the provisions of the BCEA. NOTE: 1. Mark the first FOUR (4) only. 2. Allocate a maximum of ONE (1) mark for an example of a specific provision. (4 x 1) (4) 2.2 Role of SETAs - Develop skills plans in line with the National Skills Development Strategy.√√ - Draw up skills development plans for their specific economic sectors.√√ - Approve workplace skills plans and annual training reports.√√ - Allocate grants to employers, education and training providers.√√ - Pay out grants to companies that are complying with the requirements of the Skills Development Act.√√ - Monitor/Evaluate the actual training by service providers.√√ - Promote and establishes learnerships.√√ - Register learnership agreements/learning programmes.√√ - Provide training material/programmes for skills development facilitators.√√ - Provide accreditation for skills development facilitators.√√ - Oversee training in different sectors of the South African economy.√√ - Promote learnerships and learning programmes by identifying suitable workplaces for practical work experience.√√ - Collect levies and pays out grants as required.√√ - Report to the Director General.√√ - Any other relevant answer related to the role of SETAs. Max (8) 2.3 Consumer rights 2.3.1 Right to return goods/have goods replaced/claim a refund/fair value/good quality and safe products√√ 2.3.2 Right to privacy/confidentiality√√ 2.3.3 Right to fair/honest dealings/responsible marketing/promotion√√ 2.3.4 Right to accountability from suppliers√√ 2.3.5 Right to fair/just/reasonable terms/conditions/disclosure√√ (5 x 2) (10) 46

2.4 Difference between National Skills Development Strategy and Human Resources Development Strategy NATIONAL SKILLS HUMAN RESOURCES DEVELOPMENT STRATEGY DEVELOPMENT STRATEGY - Encourages good quality training in - Addresses skills shortages√ in the the workplace√ to ensure on-going South African workforce.√ development of skills.√ - Provides for the participation of - Aims at achieving faster economic government√, organised business growth/ higher employment levels√ and labour.√ and reduced levels of poverty.√ - Improves social development√ - Promotes social development and through economic development.√ social justice√ which helps to alleviate poverty.√ - Indicates how Sector Education and - Develops short term√ and long term Training Authorities (SETAs) √ should workforce skills.√ use the money allocated from the Skills Development Levy.√ - Improves access√ to training - Improves the supply√ of skills.√ programmes.√ - Provides career/vocational guidance/ - Increases employee participation√ in training centres.√ lifelong learning.√ - Any other relevant answer related to - Any other relevant answer related to the National Skills Development the Human Resources Development Strategy. Strategy. Submax (4) Submax (4) NOTE: 1. The answer does not have to be in tabular format but differences must be clear. 2. Award a maximum of FOUR (4) marks, if differences are not clear. Max (8) 2.5 Business sectors/Business environments 2.5.1 Secondary sector√√ Motivation - TBW manufactures bricks/Sand & Stone is a supplier.√ Sector (2) Motivation (1) Max (3) 47

2.5.2 Classification of challenges and the extent of control BUSINESS EXTENT OF CHALLENGE ENVIRONMENT CONTROL - Sand & Stone/The supplier is - Market environment√ - Limited/Little sometimes out of stock.√ influence√ - Employees are regularly absent - Micro-environment√ - Full control√ from work.√ - A high interest rate.√ - Macro-environment√ - No control√ Submax (3) Submax (3) Submax (3) NOTE: Do not award marks for business environments and extent of control if they are not linked to the challenges. Max (9) 2.6 Practical ways on how businesses can comply with EEA - Promote/Provide equal opportunities in the workplace.√√ - Compile employment equity plans that indicate how they will implement affirmative action.√√ - Ensure that affirmative action measures promote diversity in the workplace.√√ - Assign a manager to ensure that the employment equity plan will be implement- ted/regularly monitored.√√ - Display a summary of the Act where employees can clearly see it/have access to it.√√ - Report to the Department of Labour on the progress in the implementation of the equity plan.√√ - Conduct medical/psychological tests fairly to employees/when deemed necessary.√√ - Equal pay for work of equal value.√√ - Ensure that the workplace represents the demographics of the country at all levels.√√ - Appointment process should be clearly defined to inform all parties.√√ - Restructure/Analyse current employment policies/practices/procedures to accommodate designated groups.√√ - Retrain/Develop/Train designated groups through skills development programmes.√√ - Any other relevant answer related to practical ways on how businesses can comply with the EEA. Max (6) 2.7 Ways in which to apply BBBEE pillars 2.7.1 Enterprise development - Businesses should invest in/support black owned SMME’s.√√ - Contributions may be monetary/non-monetary.√√ - Monetary contributions could include offering SMME’s interest-free loans/ investments/donations√√, etc. - Non-monetary contributions could include consulting services/advice/ entrepreneurial programmes/scarce competencies/skills/expertise√√, etc. - Encourage SMME’s to use their own business initiatives and make it sustainable.√√ - Any other relevant recommendations related to ways in which businesses may apply enterprise development as a BBBEE pillar. Max (4) 48

2.7.2 Management - Appoint black people in senior executive positions/management.√√ - Ensure black female representation in management.√√ - Implement transformation at all levels of management. √√ - Ensure that black people are involved in decision making processes.√√ - Any other relevant recommendations related to ways in which businesses may apply management as a BBBEE pillar. Max (4) 2.7.3 Preferential procurement - Outsource services to suppliers that are BBBEE compliant.√√ - Support suppliers with diversity in their ownership.√√ - Use suppliers who have a high BBBEE rating.√√ - Identify black owned suppliers that are able to supply goods and services.√√ - Develop business skills of small/black owned suppliers, e.g. sales, legal advice √√, etc. - Support the cash flow of small suppliers by offering them preferential terms of payment.√√ - Develop and implement a supplier development plan/supply chain.√√ - Any other relevant recommendations related to ways in which businesses may apply preferential procurement as a BBBEE pillar. Max (4) [60] BREAKDOWN OF MARKS QUESTION 2 MARKS 2.1 4 2.2 8 2.3 10 2.4 8 2.5.1 3 2.5.2 9 2.6 6 2.7.1 4 2.7.2 4 2.7.3 4 TOTAL 60 49

QUESTION 3: BUSINESS VENTURES 3.1 Insurance - Insurance refers to cover for a possible event√ that may cause a specified loss/ damage.√ - An agreement whereby the insurer undertakes to indemnify√ the insured in the event of a specified loss/damage.√ - The insured has to pay a premium√ for specified losses/damages covered.√ - A contract between a person/business/insured requiring insurance cover√ and the insurance company/insurer bearing the financial risk.√ - Any other relevant answer related to the definition of insurance. Submax (2) Examples of insurable risks - Fidelity insurance√ - Money in transit√ - Theft√ - Burglary√ - Fire√ - Damage to/Loss of buildings/premises/equipment/vehicles/assets√ - Natural disasters√ - Injuries on premises√ - Life√ - Any other relevant examples of insurable risks. NOTE: Mark the first TWO (2) only. (2 x 1) (2) Submax (2) Max (4) 3.2 Factors to consider when making investment decisions. - Return on investment (ROI)√ - Risk√ - Investment term/period√ - Tax implications/Taxation√ - Inflation rate√ - Fluctuations/Volatility of investment markets√ - Liquidity√ - Personal budget√ - Track record/History/Performance of the business√ - Any other relevant answer related to factors that must be considered when making investment decisions. NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 3.3 Advantages of ordinary shares - Holding a higher number of shares may result in higher proportional dividends.√√ - Shares of listed companies can be freely transferred/traded on the JSE.√√ - Shareholders’ liability for company debts is limited to the amount invested in shares/Shareholders have limited liability for the debts of the company.√√ - Shareholders have voting rights at the annual general meeting (AGM).√√ 50

- Rate of return on investment (ROI) is linked to the performance of the company.√√ - Ordinary shares are usually cheaper than preference shares on the open market.√√ - Ordinary shareholders can track the value of their investment through published information/different media.√√ - Any other relevant answer related to the advantages of ordinary shares. NOTE: Mark the first THREE (3) only. Max (6) 3.4 Investments 3.4.1 Simple interest (Andries) FORMULA: Interest = P x R x T √ Option 1 R3 000√ x 10% x 2 years√ = R600√ OR Option 2 R3 000√ x 10% x 6/12 √ = R150 R150 x 4 = R600√ OR Option 3 R3 000√ x 10% x 6/12 x 4√ = R600√ Max (3) NOTE: 1. Allocate full marks (3) if the answer is correct and no workings are shown. 2. If workings were shown correctly, but the final answer is wrong, award a maximum of TWO marks. 4. If the answer is incorrect, award a maximum of ONE mark for the understanding of concept and method. 4. If there are no workings shown and the answer is incorrect, allocate a ZERO mark. 51

3.4.2 Compound interest (Tshidi) Option 1 Year 1: R3 000√ x 10% = R300 √ Year 2: R3 300√ x 10% = R330√ Total interest = R630 √ OR Option 2 FORMULA: P x (1 + r)n√ R3 000√ x (1+10/100)2 √ R3 000 x (1.1)2 =R3 630√ Total interest = R3 630 – R3 000 = R630√ Max (4) NOTE: 1. Allocate full marks (4) if the answer is correct and no workings are shown. 2. If workings were shown correctly, but the final answer is wrong, award a maximum of THREE marks. 3. If the answer is incorrect, award a maximum of ONE mark for the understanding of concept and method. 4. If there are no workings shown and the answer is incorrect, allocate a ZERO mark. 3.4.3 Better investment option Tshidi’s investment option/flexi-deposit account/An investment on compounded/ compound interest is better.√ Motivation Tshidi receives more interest/R30 more interest/has a higher return on her investment over 2 years/earns interest on interest accrued.√√ Identification (1) Motivation (2) Max (3) 3.5 Visual aids 3.5.1 Visual aids identified from the scenario - Electronic slides/PowerPoint/Slide show√ - Printed copies/Hand-outs/Notes√ Max (2) 3.5.2 Effectiveness/Advantages/Positives of ONE of the visual aids OPTION 1 Electronic slides/PowerPoint/Slide Show - Graphic programmes have the capacity to convey ideas√ and support what the presenter says.√ - Easy to combine√ with sound/video clips.√ - Simple/Less cluttered slides√ may capture the interest of the audience.√ - Video clips can provide variety√ and capture the attention of the audience.√ - Variation of colour/background/sound√ retains the interest of the audience throughout the presentation.√ 52

- Slides should only be used√ where it can enhance the facts/summarise information.√ - It is cost effective√, as printing costs are minimised.√ - Any other relevant answer related to the effectiveness/advantages/positives of electronic slides/PowerPoint/slide show presentation. Max (8) OR OPTION 2 Printed copies/Hand-outs/Notes - It can be handed out at the end of a presentation√ as a reminder of the key facts of the presentation.√ - Meaningful hand-outs may be handed out√ at the start of the presentation to attract attention.√ - Extra/Useful information may be handed out√, e.g. contact details/price lists/ feedback questionnaires/financial reports√, etc. - Notes may be compared with the electronic slides/presentation√ to validate the accuracy of information.√ - Detailed facts may be included in notes/printed copies√ for additional information.√ - Any other relevant answer related to the effectiveness/advantages/positives of printed copies/hand-outs/notes. NOTE: 1. Mark only the FIRST option. 2. Accept effectiveness/advantages/benefits for the presenter as well as the audience. Max (8) 3.5.3 Factors to be considered when presenting - Establish credibility by introducing yourself at the start.√√ - Mention/Show most important information first.√√ - Make the purpose/main points of the presentation clear at the start of the presentation.√√ - Use suitable section titles/headings/sub-headings/bullets.√√ - Summarise the main points of the presentation to conclude the presentation.√√ - Stand in a good position/upright, where the audience can clearly see the presenter/presentation.√√ - Avoid hiding behind equipment.√√ - Do not ramble on at the start, to avoid losing the audience/their interest.√√ - Capture listeners’ attention/Involve the audience with a variety of methods, e.g. short video clips/sound effects/humour√√, etc. - Maintain eye contact with the audience.√√ - Be audible to all listeners/audience.√√ - Vary the tone of voice/tempo within certain sections to prevent monotony.√√ - Make the presentation interesting with visual aids/anecdotes/examples/Use visual aids effectively.√√ - Use appropriate gestures, e.g. use hands to emphasize points.√√ - Speak with energy and enthusiasm.√√ - Pace yourself/Do not rush or talk too slowly.√√ - Keep the presentation short and simple.√√ - Conclude/End with a strong/striking ending that will be remembered.√√ 53

- Ensure that the audience will leave with/take away specific information/benefits.√√ - Include a statement/quote that will allow a graceful/striking ending.√√ - Manage time effectively to allow time for questions.√√ - Any other relevant answer related to factors to be considered while presenting. NOTE: Only accept factors to be considered DURING the presentation. Max (10) 3.6 Role of personal attitude in successful leadership - Positive attitude releases√ leadership potential.√ - A leader's good/bad attitude√ can influence the success/failure of the business.√ - Leaders must know their strengths and weaknesses√ to apply their leadership styles effectively.√ - Great leaders understand that the right attitude√ will set the right atmosphere.√ - Leaders' attitude may influence√ employees'/teams' thoughts/behaviour.√ - Leaders should model the behaviour√ that they want to see in team members.√ - Successful leaders consider the abilities/skills of team members√ to allocate tasks/roles effectively.√ - Enthusiasm√ produces confidence in a leader.√ - A positive attitude is critical for good leadership√ because good leaders will stay with the task regardless of difficulties/challenges.√ - Successful employees and leaders have a constant desire to work√ and achieve personal/professional success.√ - Leaders with a positive attitude know√ that there is always more to learn/space to grow.√ - Any other relevant answer related to the role of personal attitude in successful leadership. Max (8) 54

3.7 Success and/or failure factors of a partnership SUCCESS FAILURE 3.7.1 - Partners are actively involved in - Decision making can be time Manage- management√ and may use the consuming√ as all partners have to ment ideas of other partners.√ be in agreement.√ - Partners have access to expertise - Some management tasks may be of other partners√ when difficult neglected√, as one partner may leave decisions have to be made.√ it to others to complete.√ - Not all partners need to be - Partners may disagree on how to run actively involved in the business√, which may lead to management√ and would rather tension between them.√ appoint competent managers.√ - Partners are agents of the partnership√ and bad management decisions may be forced onto other partners.√ - Different personalities/opinions√ could lead to conflict/ disagreements.√ - Any other relevant answer related - Any other relevant answer related to to the contribution of management the contribution of management to to the success of a partnership. the failure of a partnership. Submax (4) Submax (4) Max (4) SUCCESS FAILURE 3.7.2 - Partnerships only pay VAT on - High earning partners pay more tax√, Taxation relevant products sold/services which may discourage other partners rendered√ which reduces tax from joining the partnership.√ administration.√ - The partnership does not pay - Partners may withdraw more cash to income tax√, only the partners in reduce their tax burden√ which may their personal capacities.√ cause cash flow problems for the partnership.√ - Any other relevant answer related - Any other relevant answer related to to the contribution of taxation to the contribution of taxation to the the success of a partnership. failure of a partnership. Submax (4) Submax (4) Max (4) NOTE: The answers do not have to be in tabular format. [60] 55

BREAKDOWN OF MARKS QUESTION 3 MARKS 3.1 4 3.2 4 3.3 6 3.4.1 3 3.4.2 4 3.4.3 3 3.5.1 2 3.5.2 8 3.5.3 10 3.6 8 3.7.1 4 3.7.2 4 TOTAL 60 QUESTION 4: BUSINESS ROLES 4.1 Causes of conflict in the workplace - Differences in backgrounds/cultures/values/beliefs/language√ - Limited business resources√ - Different goals/objectives for group/individuals√ - Personality differences between group/individuals√ - Different opinions√ - Unfair workload√ - Ill-managed stress√ - Unrealistic expectations√ - Poor organisation/leadership/administrative procedures and systems√ - Confusion about scheduling/deadlines√ - Ignoring rules/procedures√ - Misconduct/Unacceptable behaviour√ - High/Intense competition/Competitiveness√ - Poor communication√ - Unclear responsibilities√ - Distracted by personal objectives√ - Constant changes in the workplace√ - Unfair treatment of workers/Favouritism by management/Discrimination√ - Lack of trust amongst workers√ - Any other relevant answer related to causes of conflict in the workplace. NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 56

4.2 Diversity 4.2.1 Diversity issues DIVERSITY ISSUES MOTIVATION - Gender/Inequality√√ - EP employs more males than females.√ - Disability/Physically - Their building does not have facilities for people challenged/People living who use wheelchairs/with disabilities.√ with disability√√ - Language√√ - English is the only medium of communication allowed/Some employees cannot speak and/or understand it.√ Submax (4) Submax (2) NOTE: 1. The answer does not have to be in tabular format. 2. Mark the first TWO (2) diversity issues only. 3. Do not award marks for motivation without the correct identification of the diversity issue. Max (6) 4.2.2 Dealing with identified diversity issues in the workplace Gender/Inequality - Males and females should be offered equal employment opportunities.√√ - EP’s directors should promote both men and women in managerial positions.√√ - Women should be employed to comply with EEA.√√ - Targets may be set for gender equity in the business.√√ - New appointments should be based on skills and ability.√√ - Introduce affirmative action by ensuring that male/female employees are remunerated fairly/equally.√√ - Any other relevant answer related to ways on how EP should deal with gender as a diversity issue in the workplace. Submax (4) Disability/Physically challenged/People living with disability - EP should provide employment opportunities for people with disabilities.√√ - Accommodate people with disabilities by providing facilities/ramps for wheel- chairs√√, etc. - Ensure that workers with special needs are not marginalised/feel excluded from workplace activities.√√ - EP should be well informed with how to deal with disabled employees.√√ - Policies and programs should accommodate the needs of people with disabilities.√√ - Create an organisational culture and climate that is conducive for people with disabilities.√√ - Employees should be trained to deal with colleagues with disabilities.√√ - EP should bring in external experts to help with disability and accommodation issues.√√ - Ensure that employees with disabilities are treated fairly.√√ - Focus on skills/work performance of the disabled worker, rather than his/her disability/possible problems he/she may pose in future.√√ - Any other relevant answer related to ways on how EP should deal with disability as a diversity issue in the workplace. Submax (4) 57

Language - EP may specify that all communications must be in one specific language only and would expect employees to have a certain level of fluency in that language.√√ - Provide training in the official language of the business.√√ - It may sometimes be necessary to employ an interpreter so that everyone can fully understand what is being said in a meeting.√√ - All business contracts should be in easy-to-understand language and should be available in the language of choice for the relevant parties signing.√√ - No worker should feel excluded in meetings conducted in one language only.√√ - Any other relevant answer related to ways on how EP should deal with language as a diversity issue in the workplace. Submax (4) NOTE: 1. Mark the first TWO (2) recommendations of each diversity issue identified in QUESTION 4.2.1. 2. Award full marks for recommendations on the diversity issues if motivation was given without identifying diversity issues in QUESTION 4.2.1. 3. If QUESTION 4.2.1 was not answered (left blank): • Allocate ONE (1) mark for a recommendation if the diversity issue was not identified in QUESTION 4.2.2, but was based on the case study. • If the diversity issue/motivation was identified in QUESTION 4.2.2, allocate full marks for recommendation. Max (8) 4.3 How to promote cultural rights in the workplace - Provide the environment in which employees are free√ to use their own language when interacting with others during their free time.√ - Encourage employees√ to participate in cultural activities.√ - Allow employees to provide solutions to challenges√ from their own cultural perspective.√ - Regular cultural information sessions√ will help employees to respect each other’s culture in the workplace.√ - Make provision for different cultures√, such as food served in the canteen/ entertainment at staff functions.√ - Employ people√ from various cultural backgrounds.√ - Employees should be trained√ on cultural tolerance.√ - Any other relevant answer related to ways on how to promote cultural rights in the workplace. Max (6) 4.4 Role of health and safety representatives in the workplace - Ensure that protective clothing√ is provided/available to all workers.√ - Identify√ potential dangers in the workplace.√ - Initiate/Promote/Maintain/Review measures√ to ensure the health and safety of workers.√ - Check/Monitor the effectiveness of health and safety measures√ with management.√ - Ensure that all equipment that is necessary to perform work√ are provided/ maintained regularly.√ - Promote safety training√ so that employees may avoid potential dangers/act pro- actively.√ 58

- Ensure that dangerous equipment is used√ under the supervision of trained/qualified workers.√ - Ensure that workers’ health and safety is not endangered√ by hazards resulting from production/processing/storage/transportation of material/equipment.√ - Working together with the employer, to investigate any accidents/complaints from the workers√ concerning health and safety in the workplace.√ - Ensure that employers comply√ with COIDA.√ - Any other relevant answer related to the role of health and safety representatives in ensuring a healthy and safe working environment. Max (6) 4.5 Social responsibility 4.5.1 Ways of advancing the well-being of employees - MCC provides subsidised housing to their employees.√ - Provides accommodation for their employees.√ - Encourages employees to stay fit and healthy by involving them in stress reduction activities.√ NOTE: Only award marks for direct quotes from the scenario. (2 x 1) (2) 4.5.2 Other ways of contributing to the well-being of the employees - MCC should improve the general quality of life of employees, e.g. pay fair wages/skills development√√, etc. - Start a nutritional programme so that employees may enjoy at least one meal per day to keep them healthy.√√ - Allow staff to use some working time to get involved/participate in projects of their choice.√√ - Provide transport to employees who work unusually long hours.√√ - Establish coaching/mentoring programmes for junior employees.√√ - Conduct team-building sessions to improve employees' morale.√√ - Encourage employees to attend capacity-building workshops/training/staff- development/team-development programmes.√√ - Offer counselling sessions to employees with personal/emotional challenges.√√ - Working conditions should include safety/medical/canteen facilities/benefits like leave, retirement√√, etc. - Pay fair bonuses based on the earnings/returns of the business.√√ - Allow for employees' participation in decision making.√√ - Provide recreational facilities for employees.√√ - Make annual assessment by a medical doctor/practitioner available.√√ - Offer financial support in the case of any hardship caused by unforeseen personal costs, e.g. medical costs.√√ - Allow for flexible working hours to enhance productivity.√√ - Offer support programmes to employees infected/affected by HIV/Aids.√√ - Any other relevant advice related to other ways on how MCC may contribute to the wellbeing of their employees. NOTE: 1. Mark the first THREE (3) 'other ways'. 2. Do not allocate marks for responses quoted in QUESTION 4.5.1. 3. Do not accept 'other ways' that are related to 'subsidised housing/ accommodation' and 'fitness/health'. Max (6) 59

4.6 Stages of team development 4.6.1 Storming√√ (2) 4.6.2 Performing√√ (2) 4.6.3 Forming√√ (2) 4.7 Negative impact of Corporate Social Investments (CSI) on communities - Businesses are not always equipped√ to address social problems/challenges.√ - Communities can avoid taking responsibility for themselves√, because they depend/rely on a business's CSI initiatives√/’Hand-outs’ discourage locals from taking their own initiatives√ by making them dependent on CSI- programmes.√ - Distribution of scarce resources to selected beneficiaries in the community√ may cause problems such as discrimination.√ - Some businesses only participate in CSI initiatives to raise profit√ and do not really care for the community in which they operate.√ - Businesses may not meet√ the longer term needs of society√/Businesses cannot deliver√ sustainable CSI projects.√ - The benefits of the programmes may not filter√ to the intended persons within the community.√ - Spending money on CSI means the business has to recover expenses through higher prices√ which have a negative impact on the economy.√ - Businesses tend to focus on CSI projects√ that do not directly benefit the community.√ - Less money is available for community projects√ during unfavourable economic conditions.√ - Consumers are not easily convinced√ that a business is acting in the best interest of the community/environment.√ - A business often appears to benefit more from the CSI expenditure√ than the perceived benefits to the communities.√ - Any other relevant answer related to the negative impact of CSI on communities. Max (6) 4.8 Strategies to deal with abuse of work time - Speak directly to those employees who abuse work time.√√ - Code of conduct/ethics should contain clear rules about abuse of work time.√√ - Conduct training on the contents of the code of conduct/ethics.√√ - Code of conduct/ethics should be signed by all employees so that they are aware of its contents.√√ - Monitor employees to ensure that tasks are completed.√√ - Structure working hours in such a way that employees have free/flexible time for personal matters.√√ - Create a culture of responsibility/strengthen team spirit in order for all employees to feel responsible for what has to be achieved.√√ - Any other relevant answer related to strategies to deal with employees who abuse work time. Max (10) [60] 60

BREAKDOWN OF MARKS QUESTION 4 MARKS 4.1 4 4.2.1 6 4.2.2 8 4.3 6 4.4 6 4.5.1 2 4.5.2 6 4.6. 6 4.7 6 4.8 10 TOTAL 60 QUESTION 5: BUSINESS OPERATIONS 5.1 Recruitment 5.1.1 Job analysis COMPONENTS EXAMPLES A. Job description√√ 1. The receptionist is responsible for making bookings and arranging transport for guests.√ 2. He/She manages the system for the safe-keeping of the guests’ valuables.√ B. Job specification√√ 1. Applicants must have a Diploma in Administration Management.√ 2. Speaking, reading and writing in English are compulsory.√ 3. Three years’ experience in the hospitality industry will be an advantage.√ Submax (4) Submax (4) NOTE: Do not allocate marks for examples that are not linked to components. Max (8) 5.1.2 External recruitment√√ Motivation The post has been advertised in the local newspaper.√ Identification (2) Motivation (1) Max (3) 61

5.1.3 Role of the interviewee/applicant during the interview - Greet the interviewer by name√ with a solid handshake and a friendly smile.√ - Listen carefully to the questions√ before responding.√ - Make eye contact√ and have good posture/body language.√ - Show confidence√ and have a positive attitude/and be assertive.√ - Be inquisitive√ and show interest in the business.√ - Ask clarity seeking√ questions.√ - Show respect√ and treat the interview with its due importance.√ - Be honest about mistakes√ and explain how you dealt with it.√ - Know your strengths and weaknesses√ and be prepared to discuss them.√ - Any other relevant answer related to the role of the interviewee/applicant during the interview. Max (8) 5.2 Screening - Check application documents√ against the requirements of the job.√ - Candidates who meet the minimum requirements√ are separated from others.√ - Do background/credit/reference checks of applicants√ who qualify for the job.√ - Prepare a shortlist√ of suitable candidates after screening.√ - Any other relevant answer related to screening as part of the selection procedure. Max (4) 5.3 Benefits of a good quality management system - Effective customer services are rendered√, resulting in increased customer satisfaction.√ - Time and resources√ are used efficiently.√ - Productivity increases√ through proper time management/using high quality resources.√ - Products/Services are constantly improved√ resulting in increased levels of customer satisfaction.√ - Vision/Mission/Business goals√ may be achieved.√ - Business has a competitive advantage√ over its competitors.√ - Regular training√ will continuously improve the quality of employees' skills/know- ledge.√ - Employers and employees will have a healthy working relationship√ resulting in happy/productive workers.√ - Increased market share/more customers√ improves profitability.√ - Improves business image√, as there is less defects/returns.√ - Any other relevant answer related to the benefits of a good quality management system. Max (8) 62

5.4 Distinction between quality control and quality assurance QUALITY CONTROL QUALITY ASSURANCE - Inspection of the final product√ to - Carried out during and after the ensure that it meets the required production process√ to ensure standards.√ required standards have been met at every stage of the process.√ - Includes setting targets/measuring - Ensure that every process is aimed at performance√ and taking corrective getting the product right first time√ measures.√ and prevent mistakes from happening again.√ - Any other relevant answer related to - Any other relevant answer related to quality control. quality assurance. Submax (2) Submax (2) NOTE: 1. The answer does not have to be in tabular format. 2. The distinction must be clear. Max (4) 5.5 Business functions 5.5.1 Quality indicators for the general management function - Develop/Implement/Monitor effective strategic plans.√√ - Efficient organisation/allocation of business resources to provide for the successful achievement of long-term and short-term plans.√√ - Structured standards/norms are in place to implement control mechanisms.√√ - Continuously aware of/Understand changes in the business environment.√√ - Establishes priorities to give clear direction.√√ - Shared vision, mission and values are communicated effectively.√√ - The general management sets an example of the behaviour that is expected from employees in terms of ethics as well as productivity.√√ - Employees have the necessary resources needed to do their work/Effective allocation of resources.√√ - The business is proactive and always seeks to improve competitive advantage over competitors.√√ - Ensure that all departments/the business meet their deadlines/targets.√√ - Management must plan/organise/control/lead effectively.√√ - Any other relevant answer related to the quality indicators of the general management function. Max (4) 5.5.2 Quality indicators for purchasing function - Buying raw materials in bulk at lower prices.√√ - Required quantities are delivered at the right time and place.√√ - Selecting reliable suppliers that render the best quality raw materials/capital goods at reasonable prices.√√ - Placing orders timeously and ensuring regular follow-ups so that goods are delivered on time.√√ - Effective co-ordination between purchasing and production departments so that purchasing staff understand the requirements of the production process.√√ - Implementing and maintaining stock control systems to ensure the security of stock.√√ 63

- Maintaining optimum stock levels to avoid overstocking/reduce out-dated stock.√√ - Monitoring/Reporting on minimum stock levels to avoid stock-outs.√√ - Effective use of storage space/Maintain product quality while in storage.√√ - Involving suppliers in strategic planning/product design/material selection/quality control process.√√ - Ensuring that there is no break in production due to stock shortages.√√ - Establishing relationships with suppliers so that they are in alignment with the business's vision/mission/values.√√ - Having a thorough understanding of supply chain management.√√ - Any other relevant answer related to the quality indicators for the purchasing function. Max (4) 5.6 Total Quality Management (TQM) 5.6.1 Total client/customer satisfaction√√ (2) Motivation - The marketing department conducted customer surveys to analyse the needs of customers.√ - Customers were requested to comment on the quality of CL’s bags/after sale services.√ (1) Identification (2) Motivation (1) Max (3) 5.6.2 Impact of Total client/customer satisfaction on CL as a large business Positives/Advantages - Market research/Customer surveys√ measure/monitor customer satisfaction/ analyse customers' needs to keep customers informed.√ - Increased competitiveness√ as CL is aware of market changes.√ - Increased profitability√ as more goods and services are sold/sales increase.√ - Continuously promote√ a positive business image.√ - Achieve a state of total customer satisfaction, as CL applies sound business practices√ that include all stakeholders.√ - Align cross-functional teams across critical processes√ to fulfil customer expectations.√ - Higher customer loyalty/retention√ as CL satisfies more needs.√ - Charge higher prices√ as high quality products/services are rendered.√ - Gain access√ to the global market.√ - Any other relevant answer related to the positives/advantages of total client/customer satisfaction on CL as a large business. AND/OR 64

Negatives/Disadvantages - Employees often do not have a clear idea of what will satisfy customers’ needs√, as they seldom come into contact with them.√ - Monopolistic companies have increased bargaining power√, as they do not necessarily have to please customers.√ - Not all employees√ may be involved in/committed to total client satisfaction.√ - Any other relevant answer related to the negatives/disadvantages of total client/customer satisfaction on CL as a large business. Max (6) 5.6.3 PDCA model/cycle in the continuous improvement to processes and systems - Plan√ o CL should identify the problem.√ o Develop a plan for improvement to processes and systems.√ o Answer questions such as 'what to do' and 'how to do it'.√ o Plan the method and approach.√ Submax (2) - Do√ o CL should implement the change on a small scale.√ o Implement the processes and systems.√ Submax (2) - Check/Analyse√ o Use data to analyse the results of change.√ o Determine whether it made a difference.√ o Check whether the processes are working effectively.√ o CL should assess, plan and establish if it is working/if things are going according to plan.√ Submax (2) - Act as needed√ o Institutionalise the improvement.√ o Devise strategies on how to continually improve.√ o If the change was successful, implement it on a wider scale.√ o Continuously revise the process.√ Submax (2) - Any other relevant answer related to how CL can use the PDCA model/cycle to continuously improve their processes and systems. NOTE: 1. Do not award marks for the impact of continuous improvement to processes and systems. 2. The step could be integrated in the explanation. Step (1) Explanation (1) Max (8) [60] 65

BREAKDOWN OF MARKS QUESTION 5 MARKS 5.1.1 8 5.1.2 3 5.1.3 8 5.2 4 5.3 8 5.4 4 5.5.1 4 5.5.2 4 5.6.1 3 5.6.2 6 5.6.3 8 TOTAL 60 QUESTION 6: MISCELLANEOUS TOPICS BUSINESS ENVIRONMENT 6.1 Business legislation 6.1.1 Compensation for Occupational Injuries and Diseases Act, 1993 (Act 130 of 1993)/ Compensation for Occupational Injuries and Diseases Amendment Act, 1997 (Act 61 of 1997) √√ NOTE: Accept COIDA/Compensation for Injuries and Diseases Act (2) 6.1.2 Discriminatory actions - Employers who bribe/prevent employees from reporting the accident/injury.√√ - Providing false information about previous serious accidents/occupational - diseases/employee information.√√ - Employers who do not contribute to the Compensation fund.√√ - Employers who do not allow claims for injuries, discriminates against injured employees.√√ - Employers that take too long to process claims/delay the claiming process.√√ - Compensation that is set off against any debt of the person entitled to the compensation.√√ - Any other relevant answer related to discriminatory actions under COIDA. NOTE: Mark the first THREE (3) only. (3 x 2) (6) 66

6.2 Strategic management process OPTION 1 - Have a clear vision, a mission statement√ and measurable/realistic objectives in place.√ - Identify opportunities/weaknesses/strengths/threats√ by conducting environ-mental scanning/situational analysis.√ - Tools available for environmental scanning√ may include a SWOT/PESTLE/ Porter's Five Forces model/industrial analysis tools.√ - Formulate alternative strategies√ to respond to the challenges.√ - Develop (an) action plan(s)√, including the tasks to be done/deadlines to be met/resources to be procured√, etc. - Implement selected strategies√ by communicating it to all stakeholders/organising the business's resources/motivating staff.√ - Continuously evaluate/monitor/measure strategies√ in order to take corrective action.√ - Any other relevant answer related to a description of the strategic management process. OR OPTION 2 - Review√ the vision statement.√ - Analyse/Re-examine√ mission statement.√ - Conduct an analysis√ using models such as PESTLE/PORTER'S/SWOT.√ - Formulate a strategy√ such as a defensive/retrenchment strategy.√ - Implement a strategy√, using a template such as an action plan.√ - Control/Evaluate/Monitor the implemented strategy√ to identify gaps/deviations in implementation.√ - Take corrective action√ to ensure goals/objectives are met.√ - Any other relevant answer related to a description of the strategic management process. NOTE: The steps may be in any order. Max (8) BUSINESS VENTURES 6.3 Types of compulsory insurance - Unemployment Insurance Fund/UIF√ - Road Accident Fund/RAF/Road Accident Beneficiary Scheme/RABS√ - Compensation for Occupational Injuries and Diseases Fund/COIDA√ NOTE: Mark the first THREE (3) only. (3 x 1) (3) 6.4 Investments 6.4.1 RSA Retail Savings bond/Government Retail Bonds√√ (2) 6.4.2 Unit trusts√√ (2) 67

6.5 Differences between a private and public company PRIVATE COMPANY PUBLIC COMPANY - May not offer shares√ to the general - Trades its shares publicly√ on the public.√ Johannesburg Securities Exchange.√ - Name must end√ with Proprietary - Name must end√ with Limited/Ltd.√ Limited/(Pty) Ltd.√ - Financial statements must be - Annual financial statements√ need to independently reviewed√ but not be audited.√ necessarily audited.√ - Does not need to publish a pros- - Have to register and publish√ a pros- pectus√ as it cannot trade its shares pectus with CIPRO.√ publicly.√ - The company is not required to - Must raise a minimum subscription raise√ the minimum subscription/ prior√ to the commencement of the issue minimum shares.√ company.√ - Managed by a minimum√ of 1 or 2 - Managed by a minimum√ of 3 directors√. directors.√ - Any other relevant answer related to - Any other relevant answer related to a a private company. public company. Submax (4) Submax (4) NOTE: 1. The answer must be in tabular format. 2. The differences must be clearly linked. Max (8) BUSINESS ROLES 6.6 Strategies that deal with difficult personalities 6.6.1 Aggressive - Allow them time to speak and blow off some steam/aggressiveness.√√ - Be firm, but do not confront them.√√ - Do not allow them to be hostile towards others.√√ - Any other relevant answer related to strategies that could be used when handling aggressive personalities. (1 x 2) (2) 6.6.2 Complainer - Listen to the complaints but do not acknowledge them.√√ - Interrupt the situation/move to the problem-solving process as soon as possible.√√ - Any other relevant answer related to strategies that could be used when handling complainer personalities. (1 x 2) (2) NOTE: Mark only the first strategy for each personality. 6.7 Characteristics of successful teams - Successful teams share a common goal√ as team members are part of the process of setting goals for the group.√ - Share a set of team values√ and implement group decisions.√ - Teams value the contributions of individual members√ and reach consensus on differences.√ - There is a climate of respect/trust√ and honesty.√ - Team members enjoy open communication√ and deal with items of conflict immediately.√ 68

- Teams are accountable√ and members know the time frame for achieving their goals.√ - Teams pay attention to the needs√ of the individual team members.√ - Successful teams have sound√ intra-team relations/interpersonal attitudes and beliefs.√ - Creates an environment where team members are given opportunities to develop√ so that team members grow and learn from the experience of working in a team.√ - Regular reviews of team processes√ and progress may detect/solve problems sooner.√ - Balance the necessary skills/knowledge/experience/expertise√ to achieve the objectives.√ - Any other relevant answer related to the characteristics of successful teams. Max (4) 6.8 Professional, responsible, ethical and effective business practices - Businesses should treat all employees equally.√√ - Plan properly and put preventative measures in place.√√ - Pay fair wages/salaries which is in line with the minimum requirements of the BCEA/Remunerate employees for working overtime/during public holidays.√√ - Engage in environmental awareness programmes/Refrain from polluting the environment, e.g. by legally disposing of toxic waste.√√ - Refrain from starting a venture using other businesses' ideas that are protected by law.√√ - Business decisions and actions must be clear/transparent to all stakeholders.√√ - Businesses should be accountable /responsible for their decisions and actions/ patents rights.√√ - Hiring honest/trustworthy accountants/financial officers with good credentials.√√ - Regular/Timeous payment of taxes.√√ - Draw up a code of ethics/conduct.√√ - Ongoing development and training for all employees.√√ - Performance management systems/Appraisals should be in place.√√ - Adequate internal controls/monitoring/evaluation.√√ - Any other relevant answer related to ways in which businesses can conduct themselves professionally, responsibly and ethically. Max (6) BUSINESS OPERATIONS 6.9 Business Functions 6.9.1 Administration function (Administration)/Management Information system/MIS/ Information systems√√ 6.9.2 Marketing function√√ 6.9.3 Production function√√ (3 x 2) (6) Max (6) 69

6.10 Ways in which TQM can reduce the cost of quality - Introduce quality circles to discuss ways of improving the quality of work/workman- ship.√√ - 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 role in quality management.√√ - Develop work systems that empower employees to find new ways of improving quality.√√ - Work closely with suppliers to improve the quality of raw materials/inputs.√√ - Improve communication about quality challenges/deviations, so that everyone can learn from experience.√√ - 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 (9) [60] BREAKDOWN OF MARKS QUESTION 6 MARKS 6.1.1 2 6.1.2 6 6.2 8 6.3 3 6.4 4 6.5 8 6.6.1 2 6.6.2 2 6.7 4 6.8 6 6.9 6 6.10 9 TOTAL 60 TOTAL SECTION B: 180 70

SECTION C QUESTION 7: BUSINESS ENVIRONMENTS (BUSINESS STRATEGIES) 7.1 Introduction - Businesses need to identify/develop and implement business strategies to improve performance/respond to challenges presented by business environments.√ - Intensive and defensive strategies enable business to solve the challenges that are posed by the market and macro environment.√ - Porter's Five Forces model helps the business to understand both the strength of its current competitive position and the advantages of expanding.√ - Porter's Five Forces model is based on five important forces that will determine competitive power in the market environment of a business.√ - The aim of strategy evaluation is to determine whether the chosen strategy will resolve the identified challenges.√ - Any other relevant introduction related to the Porter's Five Forces model/ implementing defensive and intensive strategies/evaluation of strategies. Max (2) 7.2 Porter’s Five Forces 7.2.1 Power of suppliers√√ - Suppliers include factories/providers of goods/services√ that businesses would obtain/buy from in order to operate their business.√ - A business must assess the power of the suppliers√ to influence 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.√ - The business should identify the kind of power its suppliers have√ in terms of the quality of products/services/reliability/ability to make prompt deliveries,√etc. - Any other relevant answer related to the power of suppliers. Force (2) Explanation (2) Submax (4) 7.2.2 Power of buyers√√ - Buyers are the final users√ of the product/services.√ - Buyers buying in bulk√ can bargain for prices in their favour.√ - The business must assess how easy it is for buyers/customers√ to drive prices down.√ - This will depend on the number of buyers/the importance of each buyer to the business√ and the cost of switching to other products.√ - If a business is dealing with a few powerful buyers√, they are often able to dictate their terms to the business.√ - If buyers can do without the business’s products√ then they have more power to determine the prices and terms of sale.√ - Businesses must conduct market research√ so that they can get more information about their buyers.√ - Any other relevant answer related to the power of buyers. Force (2) Explanation (2) Submax (4) 71

7.2.3 Power of competitors/Competitive rivalry√√ - Competitors selling the same/similar products/services√ may have a greater impact on the market of the business.√ - Competitive rivalry refers to the number of competitors√ and their ability to influence/control the market.√ - 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.√ - Businesses must draw up a competitor's profile√ so that they can determine their own strength as well as that of competitors.√ - Some competitors have the necessary resources to start price wars√ and continue selling at a loss until other competitors leave the market.√ - Any other relevant answer related to the power of competitors/competitive rivalry. Force (2) Explanation (2) Submax (4) 7.2.4 Threat of substitution/ substitutes√√ - Substitute products or services are different products/services that at least partly satisfy the same needs of consumers√ and can be used to replace one another.√ - Businesses should determine whether the sellers of substitute products have improved their products√ or sell lower quality goods at lower prices.√ - If the business’s product can be easily substituted√, it weakens the power of the business in the market.√ - Substitute products may cause the business√ to completely lose its market share.√ - Unique products√ will not be threatened by substitute products.√ - Businesses should do market research√ to assess if customers using substitute products/services have reasons for using these alternatives.√ - It is important that businesses change√ or improve their products to remain competitive.√ - Any other relevant answer related to the threat of substitution/substitutes/ alternatives. Force (2) Explanation (2) Submax (4) 7.2.5 Threat/Barriers of new entrants to the market√√ - New entrants are other businesses that are selling the same/similar products√ in the existing market for the first time.√ - The power will depend on how easy it is√ for new businesses to enter the market.√ - If the business is highly profitable√, it will attract potential competitors that want to benefit from high profits.√ - If the barriers to enter the market are low√, then it is easy for new businesses to enter the market/industry.√ - New competitors can quickly/easily enter the market√, if it takes little time/ money to enter the market.√ 72

- If there are a few suppliers of a product/service but many buyers√, it may be easy to enter the market.√ - Any other relevant answer related to the threats/barriers of new entrants. Force (2) Explanation (2) Submax (4) NOTE: 1. The 'force' must be stated in full to get the maximum of TWO (2) marks. 2. No part marks must be awarded for the naming of the 'force'. Max (20) 7.3 Types of defensive strategies 7.3.1 Divestiture/ Divestment√√ - The business disposes/sells some assets/divisions√ that are no longer profitable/ productive.√ - Businesses may sell off divisions/product lines√ with slow growth potential.√ - The business sells ownership√ by decreasing the number of shareholders.√ - Unproductive assets are sold√ to pay off debts.√ - Process used to withdraw its investment√ in another business (divesting).√ - Any other relevant answer related to divestiture/divestment as a defensive strategy. Strategy (2) Explanation (2) Submax (4) 7.3.2 Liquidation√√ - All assets are sold to pay creditors√ due to a lack of capital.√ - Selling the entire business√ in order to pay shareholders a fair price for their shares.√ - Creditors may apply for forced liquidation√ in order to have their claims settled.√ - Any other relevant answer related to liquidation as a defensive strategy. Strategy (2) Explanation (2) Submax (4) 7.3.3 Retrenchment√√ - Terminating the employment contracts of employees√ for operational reasons.√ - Decreasing the number of product lines/Closing certain departments√ may result in some workers becoming redundant.√ - Any other relevant answer related to retrenchment as a defensive strategy. Strategy (2) Explanation (2) Submax (4) Note: Mark the first THREE (3) only. (3 x 4) (12) Max (12) 73

7.4 Effectiveness/Advantages of intensive strategies - Increased market share√ reduces the business’s vulnerability to actions of competitors.√ - Control over prices√ may increase/improve.√ - Increase in sales/income√ and profitability.√ - Improved service delivery√ may positively impact/increase sales√ - Businesses can have more control√ over the prices of products/services.√ - Gain customer loyalty√ through effective promotion campaigns.√ - Decrease in price√ could influence customers to buy more products.√ - Regular sales to existing customers√ may increase.√ - Eliminate competitors√ and dominate market prices.√ - Enables the business to focus on markets/well researched quality products√ that satisfy the needs of consumers.√ - Any other relevant answer related to the effectiveness/advantages of intensive strategies. Max (6) 7.5 Steps in evaluating a strategy - Examine the underlying basis of a business strategy.√√ - Formulate strategies to meet objectives favourably.√√ - Implement strategies using action plans√√, etc. - Look forward and backwards into the implementation process.√√ - Compare the expected performance with the actual performance.√√ - Measure business performance in order to determine the reasons for deviations and analyse these reasons.√√ - Take corrective action so that deviations may be corrected.√√ - Set specific dates for control and follow up.√√ - Draw up a table of the advantages and disadvantages of a strategy.√√ - Decide on the desired outcome.√√ - Consider the impact of the strategic implementation in the internal and external environments of the business.√√ - Any other relevant answer related to the steps in evaluating a strategy. NOTE: Accept steps in any order. Max (8) 7.6 Conclusion - With a clear understanding of where power lies, the business can take advantage from a position of strength, improve a situation of weakness and avoid taking any wrong steps.√√ - Porter's Five Forces is useful for analysing the power of the business in order to effectively manage market environmental challenges.√√ - This model makes it possible for businesses to determine how to shift the power of the forces in their favour.√√ - Although implementing intensive and defensive strategies may be costly, it usually results in growth and continuous improvement.√ - Businesses must continuously evaluate strategies in order to change/adapt it according to current demands of their markets. - Any other relevant conclusion related to defensive/intensive strategies/Porters Five Forces/evaluating strategies. Max (2) [40] 74

QUESTION 7: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Porters Five Forces 20 Types of defensive strategies 12 Max Effectiveness of intensive 6 32 strategies Strategy evaluation 8 Conclusion 2 INSIGHT Layout 2 Analysis, interpretation 2 8 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO - For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if some requirements are met. Allocate 0 marks where requirements are not met at all. QUESTION 8: BUSINESS VENTURES (LEADERSHIP AND MANAGEMENT) 8.1 Introduction - Good leaders can also be good managers, as both can inspire/energise people and bring about change.√ - Leaders and managers can create opportunities and motivate people to be productive which lead to successful businesses.√ - Many managers are also good leaders with excellent management skills.√ - Some managers are task driven which may result in conflict if employees' interests are neglected.√ - Managers who ignore their leadership role will not be able to motivate people to get the job done successfully.√ - Theories of leadership and management guide leaders/managers on how to address/manage certain situations.√ - Any other relevant introduction related to management and leadership styles/theories. Max (2) 75

8.2 Differences between leadership and management LEADERSHIP MANAGEMENT - Influences human behaviour.√√ - Guides human behaviour.√√ - Communicates by means of inter- - Communicates through management action/behaviour/vision/values/ functions, e.g. line function.√√ charisma.√√ - Encourages new ideas to increase - Administers plans/programs/tasks to productivity.√√ reach targets.√√ - Inspires staff to trust and support each - Controls systems and procedures to other.√√ get the job done.√√ - Focuses on what and why.√√ - Focuses on how and when.√√ - Does the right things.√√ - Does things right.√√ - Focuses on the horizon to take long - Focuses on the bottom line to take term decisions.√√ short/medium/long term decisions.√√ - Leaders are born with natural/ - A person becomes a manager instinctive leadership skills.√√ because he/she is appointed in the position.√√ - Guides/Leads people to become active - Manages the process of getting things participants.√√ done by exercising authority.√√ - Have power/influence because of - Have power/authority because of the his/her knowledge/intelligence/skills.√√ position into which they are appointed.√√ - Always trying to find more efficient - Enforce rules on subordinates to ways of completing tasks.√√ ensure that tasks are completed.√√ - Motivational/Inspirational in their - Instructional in their approach.√√ approach.√√ - People orientated.√√ - Task orientated.√√ - Lead by example/trust/respect.√√ - Manage by planning/organising/ leading/ control.√√ - Any other relevant answer related to - Any other relevant answer related to leadership. management. Submax (4) Submax (4) NOTE: 1. The answer does not have to be in tabular format but differences must be clear. 2. Mark the first TWO differences only. 3. Award a maximum of FOUR (4) marks if differences are not clear. Max (6) 8.3 Leadership theories Situational leadership theory - Different leadership characteristics√ are needed for different situations.√ - The task/situation dictates the leadership style that should be applied√, so leaders are adaptable/flexible/self-assured.√ - Effective application of this theory may enable leaders√ to accomplish their goals.√ - Relationships between leaders and employees√ are based on mutual trust/ respect/loyalty/integrity/honesty.√ - Leaders have the ability to analyse the situation/get the most suitable people in the right positions√ to complete tasks successfully.√ 76

- Leaders analyse group members/objectives/time constraints√, to adopt a suitable/relevant leadership style.√ - May lead to conflict√ when leaders use different leadership styles/when managing employees in different situations.√ - The success of this theory depends on the kind of relationship that exists√ between the leader and followers/subordinates/employees.√ - The maturity levels of team members determine the type of leadership style.√√ - Any other relevant answer related to a situational leadership theory. Submax (8) Transformational leadership theory - Suitable for a dynamic environment√, where change could be drastic.√ - The passion/vision/personality of leaders inspire followers√ to change their expectations/perceptions/motivation to work towards a common goal.√ - Strategic thinking leaders develop a long term vision for the organisation√ and sell it to subordinates/employees.√ - Leaders have the trust/respect/admiration√ of their followers/subordinates.√ - Promotes intellectual stimulation/creative thinking/problem solving√ which result in the growth/development/success of the business.√ - Followers are coached/led/mentored/emotionally supported through transformation/change√ so that they can share their ideas freely.√ - Encourages followers√ to explore/try new things/opportunities.√ - Leaders lead by example√ and make workers interested in their work.√ - Leaders have strong, charismatic personalities√ and are very good at motivating staff to achieve results.√ - Enable employees to take greater ownership for their work√ and to know their strengths and weaknesses.√ - Any other relevant answer related to the transformational leadership theory. Submax (8) NOTE: Award marks if examples demonstrate understanding of the leadership theory which could be integrated in the answer. Max (16) 8.4 Impact of Autocratic and Transactional leadership styles on businesses 8.4.1 Autocratic leadership style Positives/Advantages - Quick decisions can be taken√ without consulting/followers/employees.√ - Work gets done√ in time/on schedule.√ - Line of command/communication is clear√ as it is top-down/followers know exactly what to do.√ - Direct supervision/Strict control√ ensures high quality products/service.√ - Provides strong leadership√ which makes new employees feel confident and safe.√ - Works well in large businesses√ where consultation with every employee is impractical.√ - Clear guidance can be given√ to low-skilled/inexperienced/new staff.√ - Any other relevant answer related to the positives/advantages of the autocratic leadership style. AND/OR 77

Negatives/Disadvantages - Leaders and followers may become divided/may not agree√ on ways to solve problems/no effective communication.√ - Workers can be demotivated√ as their opinions/ideas are not considered.√ - De-motivated workers√ impact negatively on productivity.√ - New/Creative/Cost reducing ideas√ may not be used/implemented/never be considered.√ - Followers may feel that they are not valued√ resulting in high absenteeism/high employee turnover.√ - Experienced/Highly skilled workers will resist an autocratic leadership style√ as it results in lower personal growth/participation/creativity.√ - Any other relevant answer related to the negatives/disadvantages of the autocratic leadership style. Submax (8) 8.4.2 Transactional leadership style Positives/Advantages - Encourages employees to work hard√ because they will receive rewards.√ - Improves employees’ productivity√ and morale.√ - The goals and objectives of the business can be achieved√ as workers are motivated.√ - Employees know√ what is expected of them.√ - Disciplinary actions/procedures√ is well communicated.√ - Any other relevant answer related to the positives/advantages of the transactional leadership style. AND/OR Negatives/Disadvantages - Employees can become bored√ because they have to follow rules/procedures/ there is no creativity in the workplace.√ - A transactional leader will have to monitor the work performance of employees/ ensure that expectations are met√ which can be time-consuming.√ - Some employees may be demoralised/unmotivated√, if they fail to reach/meet targets despite having worked very hard.√ - Usually not suitable for team work√, because all team members can be punished for poor performance caused by a member of a team.√ - Any other relevant answer related to the negatives/disadvantages of the transactional leadership style. Submax (8) Max (16) 8.4.3 Situations in which the autocratic leadership style can be applied - In crisis situations, e.g. in the case of unforeseen challenges/accidents.√√ - When all the information is available to solve the problem.√√ - In emergencies, where there is a shortage of time.√√ - When employees are motivated and the leader has already earned the trust of the followers.√√ - When dealing with employees who are not cooperative.√√ - When employees are new/not fully trained.√√ - Any other relevant suggestions of situations in which the autocratic leadership style can be applied. Submax (4) 78

Situations in which the transactional leadership style can be applied - When the business wants to maximise employee performance.√√ - When deadlines have to be met on short notice/under pressure.√√ - When workers have a low morale.√√ - When the strategies/business structures do not have to change.√√ - When productivity levels are very low/not according to targets.√√ - Any other relevant suggestion of situations in which the transactional leadership style can be applied. Submax (4) Max (8) 8.5 Conclusion - A leader who is positive/enthusiastic/energetic will inspire his followers to improve/empower/uplift themselves to achieve their own personal goals.√√ - Managers can also be successful leaders if they not only focus on the task at hand, but also the people/workers who will execute the task.√√ - Leaders who understand various leadership styles and theories may be able to lead effectively and handle any situation.√√ - Any other relevant conclusion related to leadership styles/theories of manage- ment and leadership that will ensure the success of any business. Max (2) [40] QUESTION 8: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Differences between manage- 6 ment and leadership Situational and transformational 16 leadership theories Max Autocratic and Transactional 32 leadership styles: Impact 16 Recommendations of situations 8 Conclusion 2 INSIGHT Layout 2 Analysis, interpretation 2 8 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO – For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if only some of the requirements are met. Allocate 0 marks where requirements are not met at all. 79

QUESTION 9: BUSINESS ROLES (CREATIVE THINKING) 9.2 Introduction - Solving problems requires businesses to apply creative and critical thinking skills.√ - Businesses have to solve many problems as they confront the challenges of dynamic and complex business environments.√ - Mojo Paints may use creative thinking techniques to solve business problems.√ - Creative thinking is the thought process that leads to original/novel/new ideas.√ - Businesses need to find ways to break out from routine thinking.√ - Any other relevant introduction related to problem solving/decision making/ creative thinking. Max (2) 9.3 Distinction between decision making and problem solving DECISION MAKING PROBLEM SOLVING - It is often done by one person/a - Problems can be solved by a group/ member of senior management√ team√ or an individual team who makes it authoritarian.√ member.√ - Various alternatives are - Alternative solutions are generated/ considered√ before choosing the identified√ and critically evaluated.√ best one.√ - It is part of the problem solving - Process of analysing a situation√ to cycle√ as decisions need to be identify strategies to bring about made in each step.√ change.√ - Any other relevant answer related - Any other relevant answer related to to decision making. problem solving. Submax (4) Submax (4) NOTE: 1. The answer does not have to be in tabular format but distinction must be clear. 2. Award a maximum of FOUR (4) marks if the distinction is not clear. Max (8) 9.3 Application of the Delphi and Nominal-group techniques 9.3.1 Delphi technique - Mojo Paints must invite a panel of experts√ to research the complaints from customers.√ - Experts do not have to be in one place√ and will be contacted individually.√ - Design a questionnaire consisting of questions on how to improve the quality of their paints √ and distribute it to the panel members/experts.√ - Request the panel to individually respond to the questionnaire/suggest improvements to the products√ and return it to Mojo Paints.√ - Summarise the responses from the experts√ in a feedback report.√ - Send the feedback report and a second set of questions/questionnaire√ based on the feedback report to the panel members.√ - Request panel members to provide further input/ideas on how to improve the quality of Mojo’s paints√ after they have studied the results/documentation.√ - Distribute a third questionnaire√ based on previous feedback from the second round.√ 80

- Prepare a final summary/feedback report√ with all the methods to improve the quality of Mojo’s paints.√ - Mojo Paints should choose the best solution/proposal√ after reaching consensus.√ - Any other relevant answer related to the application of the Delphi technique by Mojo Paints. NOTE: Do not allocate marks for advantages and disadvantages as the question focuses on the process/application of the technique. Submax (8) 9.3.2 Nominal-group technique - Encourage group to clearly define the problem/to improve the quality of their products due to various complaints√ so that all the small groups can work on the same problem.√ - Mojo Paints divide the employees√ into smaller groups.√ - Request each employee to silently brainstorm /generate many ideas on his/her own, on how the quality of their paint can be improved√ and to write it down.√ - Each employee in the small group has the opportunity√ to give one of his/her idea/solution with a short explanation.√ - Appoint one employee√ to write the ideas/solutions on a large sheet of paper/ capture solutions electronically on computer for all to see.√ - Allow each employee to give a second solution√ until all possible solutions have been recorded.√ - Encourage employees√ to ask clarity seeking questions.√ - Discourage criticism of ideas/solutions√ as this may prevent others from giving their solutions.√ - Mojo Paints eliminate ideas√ that are duplicated/similar.√ - Each employee must read through all the suggestions√ and anonymously rate them giving the highest points for the best solution.√ - Collect the ratings√ and calculate total points.√ - Small groups must present one solution to the large group√ that was deemed best according to the scores/votes in their small groups.√ - Any other relevant answer related to the application of the Nominal- group technique by Mojo Paints. NOTE: Do not allocate marks for advantages and disadvantages as the question focuses on the process/application of the technique. Submax (8) Max (16) 9.4 Advantages of creative thinking - Better/Unique/Unconventional ideas/solutions√ is generated.√ - May give the business a competitive advantage√ if unusual/unique solutions/ ideas/strategies are implemented.√ - Complex business problems√ may be solved.√ - Productivity increases√ as management/employees may quickly generate multiple ideas which utilises time and money more effectively.√ - Managers/Employees have more confidence√ as they can live up to their full potential.√ 81

- Managers will be better leaders√ as they will be able to handle/manage change(s) positively and creatively.√ - Managers/Employees can develop a completely new outlook√, which may be applied to any task(s) they may do.√ - Leads to more positive attitudes√ as managers/employees feel that they have contributed towards problem solving.√ - Improves motivation√ amongst staff members.√ - Managers/Employees have a feeling of great accomplishment√ and they will not resist/obstruct the process once they solved a problem/contributed towards the success of the business.√ - Management/employees may keep up√ with fast changing technology.√ - Stimulates initiative from employees/managers√, as they are continuously pushed out of their comfort zone.√ - Creativity may lead to new inventions√ which improves the general standard of living.√ - Any other relevant answer related to the advantages of creative thinking. Max (12) 9.5 Practical ways to create an environment that stimulates creative thinking - Mojo Paints must emphasise the importance of creative thinking to ensure that all staff know that their ideas will be heard.√√ - Encourage staff to come up with new ideas/opinions/solutions.√√ - Make time for brainstorming sessions to generate new ideas, e.g. regular workshops/follow up sessions to build on one another's ideas.√√ - Place suggestion boxes around the workplace and keep communication channels open for new ideas.√√ - Mojo Paints should train staff in innovative techniques/creative problem solving skills/mind-mapping/lateral thinking.√√ - Encourage job swops within the organisation/studying how other businesses are doing things.√√ - Encourage alternative ways of working/doing things.√√ - Respond enthusiastically to all ideas and never let anyone feel less important.√√ - Reward creativity with reward schemes for teams/individuals that come up with creative ideas.√√ - Provide a working environment conducive to creativity, free from distractions.√√ - Any other relevant recommendations of practical ways in which Mojo Paints can stimulate creative thinking in the workplace. NOTE: The emphasis is on 'practical ways', not advantages, of how Mojo Paints can create an environment that stimulates creative thinking. Max (10) 9.6 Conclusion - Constant changes in the market impact on business operations and so they need to adapt to it quickly and make quick/creative decisions.√√ - Creative thinking can help to solve business problems successfully.√√ - Businesses must know how to deal with problems that arise.√√ - Any other relevant conclusion related to problem solving/decision making/creative thinking. Max (2) [40] 82

QUESTION 9: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Differences between decision 8 making and problem solving Application of Delphi and 16 Max Nominal group technique 32 Advantages of creative thinking 12 Ways to promote creative 10 thinking in a workplace. Conclusion 2 INSIGHT Layout 2 Analysis, interpretation 2 8 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO – For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if only some of the requirements are met. Allocate 0 marks where requirements are not met at all. QUESTION 10: BUSINESS OPERATIONS (HUMAN RESOURCES) 10.1 Introduction - Induction is the process of introducing new employees to a business/work environment.√ - A good induction programme will enable the new employee to settle in quickly.√ - Businesses should ensure that induction is done before the employee starts in his/her new position.√ - Placement is the process of assigning employees in/to a vacant position where they will function optimally.√ - All training programmes should be conducted within the framework of the Skills Development Act to develop the skills of the employees.√ - Employers and employees should adhere to the terms and conditions of the employment contract.√ - Any other relevant answer related to induction/placement/Skills Development Act/employment contract. Max (2) 83

10.2 Purpose of induction/Content of an induction programme 10.2.1 Purpose of induction - 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 of Sipho Traders.√ - 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 work space.√ - 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. Submax (10) 10.2.2 Aspects to be included in an induction program - Safety regulations and rules.√√ - Overview of the business.√√ - Information about the business products/services.√√ - Meeting with senior management who will explain the company’s vision/values/job descriptions/daily tasks.√√ - Tour of the premises.√√ - Introduction to key people and immediate colleagues.√√ - Conditions of employment, e.g. working hours/leave application process/ disciplinary procedures√√, etc. - Administration details on systems/processes/logistics.√√ - Discussion of the employment contract and conditions of service.√√ - Discussion on personnel policies, e.g. making private phone calls/using the internet√√, etc. - Discussion on employee benefits.√√ - Corporate social responsibility programmes.√√ - Any other relevant answer related to aspects that should be included in the induction program. NOTE: Mark the first FIVE (5) only. (5 x 2) (10) Max (20) 84

10.3 Placement procedure - Sipho Traders should outline specific responsibilities/expectations of Kobie’s new position.√√ - Determine the employee’s strengths/weaknesses/skills/ interests by subjecting him to various psychometric tests.√√ - Sipho Traders should determine the relationship/similarities between the expectations of the position and the competencies of Kobie.√√ - Any other relevant answer related to the placement procedure. Max (6) 10.4 Implication of the Skills Development Act (SDA) on the Human Resources function - The human resources function should interpret the aims and requirements of the SDA√ and adapt workplace skills training programmes accordingly.√ - Identify the training needs of the employees√ and provide them with training opportunities so that they will perform their tasks efficiently.√ - Use the National Qualification Framework/NQF√ to assess the skills levels of employees.√ - Interpret/Implement the aims/requirements of the framework√ for the National Skills Development Strategy.√ - Assist managers in identifying skills/training needs√ to help them to introduce learnerships.√ - Sipho Traders should contribute 1% of their salary bill√ to the Skills Development Levy/SDL.√ - Ensure training in the workplace√ is formalised /structured.√ - Appoint a full/part time consultant√ as a Skills Development Facilitator.√ - Any other relevant answer related to the implications of the Skills Development Act on the Human Resources function. Max (8) 10.5 Aspects to be included in the employment contract - Personal details of the employee.√√ - Details of the business/employer e.g. name/address√√, etc. - Job title/Position.√√ - Job description.√√ - Job specification.√√ - Date of employment/commencement of employment.√√ - Place where employee will spend most of his/her working time.√√ - Hours of work, e.g. normal time/overtime.√√ - Remuneration, e.g. weekly or monthly pay.√√ - Benefits/Fringe benefits/Perks/Allowances.√√ - Leave, e.g. sick/maternity/annual/adoption leave.√√ - Employee deductions (compulsory/non-compulsory).√√ - Period of contract/Details of termination.√√ - Probation period.√√ - Signatures of both the employer and employee.√√ 85

- List of documents that form part of the contract, e.g. appointment letter/code of conduct/ethics.√√ - Disciplinary policy, e.g. rules and disciplinary procedure for unacceptable behaviour.√√ - Any other relevant answer related to the aspects of the employment contract. NOTE: 1. Mark the first SIX (6) aspects only. 2. Allocate a maximum of TWO (2) marks for each aspect when examples are used as recommendations. Max (12) 10.6 Conclusion - Employees are one of the most important resources in any business, therefore their success should be guaranteed by an effective induction programme.√√ - Effective placement procedures will ensure that skilled and competent employees are retained.√√ - The human resources function has to co-ordinate and facilitate skills development in the workplace to ensure a competent staff.√√ - It is important that the employer and employees sign the employment contracts.√√ - Any other relevant conclusion related to induction/placement/Skills Development Act/employment contract. Max (2) [40] QUESTION 10: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Induction: Purpose/Aspects 20 Placement procedure 6 Implication of the SDA on the Max 8 Human Resources Function 32 Aspects in the employment 12 contract Conclusion 2 INSIGHT Layout 2 Analysis, interpretation 2 8 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO - For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if some requirements are met. Allocate 0 marks where requirements are not met at all. TOTAL SECTION C: 80 GRAND TOTAL: 300

MARCH 2017 SECTION A QUESTION ONE 1.1 1.1.1 B√√ 1.1.2 D√√ 1.1.3 A√√ 1.1.4 D√√ 1.1.5 B√√ 1.1.6 C√√ 1.1.7 A√√ 1.1.8 A√√ 1.1.9 C√√ 1.1.10 D√√ (10 x 2) (20) 1.2 1.2.1 Consumer Protection Act√√ 1.2.2 Managers√√ 1.2.3 Retrenchment√√ 1.2.4 Problem-solving√√ 1.2.5 Piecemeal√√ (5 x 2) (10) 1.3 1.3.1 E√√ 1.3.2 J√√ 1.3.3 F√√ 1.3.4 I√√ 1.3.5 H√√ (5 x 2) (10) TOTAL SECTION A: 40 BREAKDOWN OF MARKS QUESTION 1 MARKS 1.1 20 1.2 10 1.3 10 TOTAL 40 87

SECTION B QUESTION 2: BUSINESS ENVIRONMENTS 2.1 PESTLE analysis - Political√ - Economical√ - Social√ - Technological√ - Legal√ - Environmental√ NOTE: Mark the first SIX (6) only. (6 x 1) (6) 2.2 Business Environments and the extent of control BUSINESS ENVIRONMENT EXTENT OF CONTROL Micro environment√ - Full control√√ Macro environment√ - No control√√ Market environment√ - Limited/Little control/influence√√ Sub max (3) Sub max (6) NOTE: The extent of control must be linked to the business environment. Max (9) 2.3 Learnerships - 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.√ - Agreement√ between a learner/trainee, employer and a training provider.√ - May include employment for a specified period√ after learnership is completed.√ - Includes a training course with learning material√ as well as practical work experience.√ - Any other relevant answer related to the explanation of learnerships. Max (4) 2.4 Integration strategies 2.4.1 Backward integration/Backward√√ Motivation GSS merged with Clear Beverages/a supplier of soft drink.√ NOTE: Do not award marks for motivation without the correct identification of the integration strategy. Identification (2) Motivation (1) Max (3) 2.4.2 Other types of integration strategies - Forward integration√ - Horizontal integration√ (2) 88

2.4.3 Reasons why businesses use integration strategies - Businesses use integration strategies when they want to expand their scope of operations.√√ - Distribution channels of products are shortened/middleman is eliminated, therefore supply/distribution challenges are managed more effectively/Gain more control over the distribution channel.√√ - Gain direct distribution by obtaining franchise/mergers/Take control of other businesses which produce/sell similar products/services.√√ - Access new markets.√√ - New/Different products can be offered.√√ - Creates an opportunity for synergy, e.g. two businesses achieve more when combining resources.√√ - Reduce operating costs.√√ - Less competition, as similar businesses in the market were taken over/ eliminated.√√ - Ensure reliable flow of raw materials/finished goods at competitive prices.√√ - Any other relevant answer related to reasons why businesses may use integration strategies. NOTE: Mark the first THREE (3) only. (3 x 2) (6) 2.5 National Credit Act 2.5.1 Non-compliance by QCF - QCF makes loans available to anyone who needs cash at short notice.√ - QCF encourages people to apply for loans regardless of their financial status.√ - QCF uses misleading and deceptive methods to attract potential clients.√ NOTE: 1. Only allocate marks for responses relating to non-compliance with the NCA. 2. Responses must be quoted from the scenario. (2 x 1) (2) 2.5.2 Ways in which QCF can comply with the National Credit Act (NCA) - QCF should register with the National Credit Regulator.√√ - Submit an annual compliance report to the National Credit Regulator.√√ - Obtain credit records/checks of clients before granting loans.√√ - Conduct credit affordability assessments to ensure that clients are able to meet their obligations on time.√√ - Offer applicants pre-agreement statements.√√ - Disclose all costs of a loan/No hidden costs should be charged/added.√√ - Any other relevant answer related to ways in which QCF can comply with NCA. Max (8) 2.6 Impact of BBBEE on businesses Positives/Advantages - Previously disadvantaged workers will be skilled√ because businesses are compelled to send them for skills training.√ - Compliance with BBBEE regarding the pillars√ will be rated high on the BEE score card/may get government tenders.√ - Encourages businesses to address the demands for redress√ and equity directly.√ 89

- Provides a variety of business codes√ to improve employment equity.√ - Provides opportunities for/empowers previously disadvantaged employees/ employers√ through uplifting socio-economic programmes.√ - Provides for human resources development√ through training.√ - Promotes enterprise development√, by developing entrepreneurial skills of designated people/supporting them to start their own businesses.√ - Businesses will have a good overview on how it is performing√ with regard to BBBEE requirements.√ - A good BEE rating√ will improve the image of the business.√ - By focusing on BBBEE, the business will show commitment√ towards social/ educational/economic development in the community/country.√ - Once rated, the business will understand how to develop strategies√ that will increase its BEE ratings on an annual basis.√ - Fronting is discouraged√, as it may lead to the disqualification of a business's entire score card/BEE status.√ - Share prices of BBBEE compliant businesses are likely to increase√ as they attract more business.√ - Businesses that support Small, Micro, Medium Enterprises (SMMEs)√, may increase their own BEE ratings.√ - Complying with BBBEE requirements gives businesses experience/exposure√ to be able to provide better employment opportunities/staff development.√ - Any other relevant answer related to the positive impact of BBBEE on businesses. AND/OR Negatives/Disadvantages - Businesses have to go through the process of having their BBBEE compliance measured/verified√ by an independent BBBEE verification agency.√ - Businesses that want to do business with the government√, must have their BEE status assessed annually.√ - Provides for preferential procurement√, so certain businesses may be excluded from supplying goods/services.√ - Processes may lead to corruption/nepotism√, if not monitored properly.√ - Many businesses have been disadvantaged due to BEE ratings√ as they may not be able to meet all the criteria for scoring.√ - Processes and procedures may be costly√ as there are many legal requirements for scoring enough points to be compliant.√ - Large financial implications/penalties may be imposed √ if businesses do not comply with BBBEE.√ - Expenditure increases in areas covered by the seven/five pillars of BBBEE√ to obtain a good BEE rating.√ - Investment/Ownership issues√ can cause unhappiness amongst existing share- holders/owners.√ - Any other relevant answer related to the negative impact of BBBEE on businesses. Max (10) 90

2.7 Effectiveness of the Employment Equity Act (EEA) on businesses - Promotes equal opportunity√ and fair treatment in the workplace.√ - Ensures the implementation of affirmative action measures√ to redress the imbalances in employment.√ - Encourages diversity in business √ by employing people from various racial/ cultural/religious backgrounds.√ - Provides all employees with an equal opportunity√ to be selected/appointed/ promoted in a position.√ - Prevents unfair discrimination against employees√ in any employment policy/ practice on one/more grounds, including race/gender/disability/language√, etc. - Creates a framework of acceptable employment practices√ and affirmative action measures.√ - Provides employees with legal recourse√ if they believe they have been unfairly discriminated against.√ - Encourages consultation√ between employer and employees.√ - Compels businesses to develop/implement√ an employment equity plan.√ - Any other relevant answer related to the effectiveness of EEA on businesses. Max (10) [60] BREAKDOWN OF MARKS QUESTION 2 MARKS 2.1 6 2.2 9 2.3 4 2.4.1 3 2.4.2 2 2.4.3 6 2.5.1 2 2.5.2 8 2.6 10 2.7 10 TOTAL 60 91

QUESTION 3: BUSINESS VENTURES 3.1 Responding to questions at the end of a presentation - Ensure that you understand each question/what is being asked.√√ - Comment/Rephrase questions if uncertain, before responding.√√ - Listen carefully to each question/Think carefully before responding.√√ - Address questions and not the person.√√ - Acknowledge good questions.√√ - Remain professional/polite/calm/open/non-aggressive.√√ - Do not get involved in a debate/argument.√√ - Do not allow one member of the audience to dominate the discussion/session and ask all the questions.√√ - Avoid answering difficult questions when the answer is not known.√√ - Apologise for an error and promise to provide everyone with the correct details.√√ - Address the whole audience and not only the person asking the question.√√ - Promise to follow up on answers you do not know/unsure about.√√ - Any other relevant answer related to factors to be considered when responding to questions at the end of a presentation. NOTE: Mark the first FOUR (4) only. Max (8) 3.2 Types of shares 3.2.1 Bonus shares√√ 3.2.2 Preference shares√√ 3.2.3 Founder shares√√ 3.2.4 Ordinary shares√√ Max (8) 3.3 Functions of JSE - Gives opportunities to financial institutions such as insurance companies to invest their funds in shares.√√ - Serves as a barometer/indicator of economic conditions in South Africa.√√ - Keeps investors informed on share prices by publishing the share prices daily.√√ - Acts as a link between investors and public companies.√√ - Shares are valued and assessed by experts.√√ - Small investors are invited to take part in the economy of the country through the buying/selling of shares.√√ - Venture capital market is made available on the open market.√√ - Orderly market for securities/serves as a disciplined market for securities.√√ - Encourages new investments.√√ - Mobilises the funds of insurance companies and other institutions.√√ - Raises primary capital.√√ - Regulates the market for dealing with shares.√√ - Plans, researches and advises on investment possibilities.√√ - Ensures that the market operates in a transparent manner.√√ - Provides protection for investors.√√ - Encourages short-term investment.√√ - Facilitates electronic trading of shares/STRATE.√√ - Any other relevant answer related to the functions of the Johannesburg Securities Exchange (JSE). Max (8) 92

3.4 Importance of investing in fixed deposits - Interest is earned at a fixed rate√ regardless of changes in the economic climate.√ - The period of investment√ can be over a short/medium/long term.√ - Ensures financial discipline√ as investors cannot withdraw their funds before the maturity date.√ - Investors can choose√ the investment period that suits them.√ - Investors earn a better return on investment√ than on an ordinary savings account.√ - Principal amount plus interest earned√ is paid out on the maturity date.√ - It has a low risk√ as investors are guaranteed of the final payment.√ - The higher the principal amount/The longer the investment period√, the higher the interest rate offered by a financial institution.√ - Any other relevant answer related to the importance of investing in fixed deposits. Max (3) 3.5 Differences between simple and compound interest Compound interest Simple interest - Interest earned on original amount - Interest earned on the original amount√ invested√, as well as interest earned in and not on the interest accrued.√ previous period(s).√ - The principal amount grows√ with the - The principal amount remains the addition of interest to it.√ same√ as interest is not re-invested/ added.√ - Interest is calculated on the higher - The interest is calculated on the original/ principal amount√ and again added to principal amount√ and added at the end it.√ of the investment period.√ - Yields high√ return on investment.√/ - Yields lower√ return on investment.√/ Total interest earned on investment√ is Total interest earned on investment√ is high.√ lower.√ - Any other relevant answer related to - Any other relevant answer related to compound interest. simple interest. Sub max (4) Sub max (4) NOTE: 1. The answer should be in tabular format/differences listed in an organised way. 2. The differences must be clearly linked. 3. Award a maximum of FOUR (4) marks if the differences are not clear/Mark either compound or simple interest only. Max (8) 3.6 Leadership styles 3.6.1 Democratic√√ NOTE: Accept Participative/Consultative leadership style. Motivation: - Ms Green regularly requests her employees to contribute ideas on how to improve business profits/Employees are involved in decision making.√ NOTE: Do not award marks for motivation without the correct identification of the leadership style. Identification (2) Motivation (1) Max (3) 93

3.6.2 Impact of democratic leadership style on Baloyi Traders/business Positives/Advantages - Ms Green allows her employees to participate in the decision-making process√, so they feel empowered/positive.√ - Staff gives a variety of ideas/inputs/feedback/viewpoints√ that can lead to innovation/improved production methods/increased sales.√ - Clear/Two way communication√ ensures group commitment to final decision(s).√ - Authority is delegated√ which can motivate/inspire workers to be more productive.√ - Complex decisions can be made√ with inputs from specialists/skilled workers.√ - Any other relevant answer related to a positive impact of the democratic leadership style on Baloyi Traders/business. AND/OR Negatives/Disadvantages - Incorrect decisions may be made√ if staff is inexperienced/not fully informed.√ - Decision making may be time consuming√ as all stakeholders have to be consulted.√ - Employees may feel discouraged√ if their opinions/inputs are not considered.√ - Ms Green may rely too much on the inputs of her followers√ and fail to make a final decision.√ - Not effective in times of crisis√ when quick decisions need to be made.√ - Some employees only pretend to participate in decision making√ and their feedback may not always be accurate.√ - Any other relevant answer related to a negative impact of the democratic leadership style on Baloyi Traders/business. NOTE: 1. Accept relevant facts, if the democratic leadership style was incorrectly identified as answer in QUESTION 3.6.1 2. Accept Participative/Consultative leadership style. Max (8) 3.6.3 Benefits of the situational leadership theory - Different leadership characteristics are needed for different situations.√√ - The task/situation dictates the leadership style that should be applied, so leaders are adaptable/flexible/self-assured.√√ - Effective application of this theory may enable Ms Green to accomplish her goals.√√ - Relationships between leaders and employees are based on mutual trust/respect/ loyalty/integrity/honesty.√√ - She may have the ability to 'read' the situation/get the most suitable people in the right positions to complete tasks successfully.√√ - Leaders analyse group members/objectives/time constraints, to adopt a suitable/ relevant leadership style.√√ - Any other relevant answer related to benefits of using the situational leadership theory. Max (6) 94

3.7 Success and/or failure of non-profit companies (NPC) SUCCESS FACTORS AND/OR FAILURE FACTORS 3.7.1 - Unlimited number of founders√ - Founders may contribute limited Capital may contribute more capital to capital/may not contribute capital√ the company. √ which may not be sufficient for the establishment/operation of the company.√ - More capital may be raised√ - The company depends/relies on through donations/sponsorships donations as their main source of for operation/expansion.√ capital√ which may hamper its operation/expansion.√ - It is easy to raise funds/capital√, - NPC may struggle to raise enough as donors enjoy tax benefits.√ capital/funds√ if they fail to convince donors/donations are misused.√ - Any other relevant answer - Any other relevant answer related to related to the contribution of the contribution of capital to the failure capital to the success of a NPC. of a NPC. Max (4) SUCCESS FACTORS AND/OR FAILURE FACTORS 3.7.2 - A NPC may be well managed√ - Large management structure√ can Manage- as it requires a minimum of three complicate/delay decisions.√ ment directors.√ - More directors may be appointed - Directors may mismanage business to bring more skills/ideas/ funds√ as they may not have a direct innovations/expertise√ to the interest in the NPC.√ NPC.√ The legally prescribed Directors are liable√ for any loss/ management structure√ ensures damage/cost sustained by the a well-organised company.√ company.√ - Any other relevant answer - Any other relevant answer related to related to the contribution of the contribution of management to the management to the success of a failure of a NPC. NPC. Max (4) NOTE: The answer does not have to be in tabular format. [60] BREAKDOWN OF MARKS QUESTION 3 MARKS 3.1 8 3.2 8 3.3 8 3.4 3 3.5 8 3.6.1 3 3.6.2 8 3.6.3 6 3.7.1 4 3.7.2 4 TOTAL 60 95

QUESTION 4: BUSINESS ROLES 4.1 Economic rights of employees in the workplace - Freedom from forced labour.√ - Freedom to choose/accept work.√ - Fair wages/Equal pay.√ - Reasonable/Legal limitation of working hours.√ - Safe and healthy working conditions.√ - Right to join/form a trade union.√ - Right to participate in a legal strike.√ - Right to training/improvement of skills for career advancement.√ - Any other relevant answer related to the economic rights of employees in the workplace. NOTE: Mark the first FIVE (5) only. (5 x 1) (5) 4.2 Handling conflict in the workplace - Acknowledge√ that there is conflict in the workplace.√ - Identify the cause√ of the conflict√/Evaluate√ the situation objectively.√ - Make intentions for intervention clear√, so that parties involved may feel at ease.√ - Arrange a meeting√ between the conflicting parties and management.√ - Blame shifting should be avoided√ and joint team solutions must be found.√ - Devise/Suggest strategies√ to solve the conflict.√ - Parties must agree√ on the best solution.√ - Direct conflicting parties√ towards finding/focusing on solutions.√ - Select the appropriate solution√ and implement it.√ - Expertise on handling conflict√ may be sourced from outside the business.√ - Any other relevant answer related to how businesses should handle conflict in the workplace. NOTE: If problem-solving steps do not demonstrate the handling of conflict (explanation), award a maximum of 4 marks. Max (8) 4.3 Unethical or unprofessional business practices 4.3.1 Pricing of goods in the rural areas.√√ 4.3.2 Unauthorised use of funds.√√ 4.3.3 Abuse/Misuse of work time.√√ Max (6) 4.4 Application of the brainstorming technique - State/Define the business problem clearly√, so that all participants/stake-holders understand the problem.√ - Members state possible causes√ of the business problems.√ - Set a time limit√ for each brainstorming session.√ - Record/Write ideas down√, where all participants can see it.√/Ideas may also be shared online√ during an e-brainstorming session.√ - Use each suggestion√, to inspire new thoughts/ideas.√ - Do not judge/criticise/discuss the ideas√, so that many ideas could be generated as quickly as possible.√ 96

- All members of the group√ randomly make suggestions.√ - The group rates ideas√ according to its usefulness/success/difficulty/cost to implement.√ - The group evaluates all ideas√, and combines similar ones/draw up a refined list.√ - Discuss a plan of action√ on how to implement the best ideas.√ - Any other relevant answer related to the application of the brainstorming technique to solve business problems. NOTE: 1. Do not allocate marks for advantages and disadvantages. 2. Steps could be in any order. Max (8) 4.5 Criteria for assessing team performance 4.5.1 Interpersonal attitude and behaviour - Members have a positive attitude of support√ towards each other.√ - Good/Sound interpersonal relationships√ will ensure job satisfaction/increase productivity of the team.√ - Members are committed/passionate√ towards achieving a common goal/ objectives.√ - Team leader acknowledges/gives credit to members√ for positive contributions.√ - Team members must respect each other's√ skills and knowledge.√ - Any other relevant answer related to interpersonal attitudes and behaviour as criteria for assessing team performance. Max (2) 4.5.2 Communication - A clear set of processes/procedures for team work√, ensures that every team member understands his/her role.√ - Effective communication between team members√ can lead to quick decisions.√ - Quality feedback√ improves the morale of the team.√ - Open communication√ allows for effective solutions to problems.√ - Continuous review of team progress√ ensures that team members can rectify mistakes/act pro-actively to ensure that goals/targets are reached.√ - Any other relevant answer related to communication as criteria for assessing team performance. Max (2) 4.6 Importance of team dynamic theories - Team dynamic theories explain√ how effective teams work/operate.√ - Businesses are able to allocate tasks√ according to the roles of team members.√ - Team members can maximise performance√ as tasks are allocated according to their abilities/skills/attributes/personalities.√ - Team members with similar strengths√ may compete for team tasks/ responsibilities that best suit their abilities/competencies.√ - Theories assist team leaders to understand the personality types of team members√ so that tasks are assigned more effectively.√ - Conflict may be minimised√ when team members perform different roles.√ - Any other relevant answer related to the importance of team dynamic theories in improving team performance. Max (4) 97

4.7 Benefits of diversity in the workplace - Workforce diversity improves the ability of a business√ to solve problems/ innovate/cultivate diverse markets.√ - Employees value each other's diversity√ and learn to connect/communicate across lines of difference.√ - Diversity in the workforce√ improves morale/motivation.√ - Employees demonstrate greater loyalty to the business√ because they feel respected/accepted/understood.√ - Diversified workforce can give businesses a competitive advantage√, as they can render better services.√ - Being respectful of differences/demonstrating diversity√ makes good business sense/improves profitability.√ - Diverse businesses ensure that its policies/practices√ empower every employee to perform at his/her full potential.√ - Stakeholders increasingly evaluate businesses√ on how they manage diversity in the workplace.√ - Employees from different backgrounds√ can bring different perspectives to the business.√ - A diversified workforce stimulates debate√ on new/improved ways of getting things done.√ - Employees represent various groups√ and are therefore better able to recognise customer needs and satisfy consumers.√ - Businesses with a diverse workforce are more likely to have a good public image√ and attract more customers.√ - Any other relevant answer related to the benefits of diversity in the workplace. Max (8) 4.8 Professional, responsible and ethical business practice BUSINESS PRACTICE QUOTE FROM SCENARIO - Regular payment of value- - The financial manager ensures that VAT is added tax (VAT).√√ paid over to SARS on time.√ - Payment of fair wages.√√ Employees are paid according to the amount of effort and time spent at work.√ - Not starting/operating a - ND does not use identical ideas from their business at the expense of competitors to benefit their own business.√ some-one else.√√ Sub max (6) Sub max (3) NOTE: 1. Only allocate marks for responses that are quoted from the scenario 2. The business practice must be linked to the quote from the scenario. 3. Do not allocate marks if quotes are mentioned only. Max (9) 98

4.9 Ways to promote creative thinking in the workplace - Emphasise the importance of creative thinking to ensure that all staff know that you want to hear their ideas.√√ - Encourage staff to come up with new ideas/opinions/solutions.√√ - Make time for brainstorming sessions to generate new ideas, e.g. regular workshops/generate more ideas/build on one another's ideas.√√ - Place suggestion boxes around the workplace and keep communication channels open for new ideas.√√ - Train staff in innovative techniques/creative problem-solving skills/mind- mapping/ lateral thinking.√√ - Encourage job swops within the organisation/studying how other businesses are doing things.√√ - Encourage alternative ways of working/doing things.√√ - Respond enthusiastically to all ideas and never let anyone feel less important.√√ - Reward creativity by introducing reward schemes for teams/individuals who come up with creative ideas.√√ - Provide a working environment that is free from distractions.√√ - Any other relevant recommendations related to ways in which businesses can promote creative thinking in the workplace. NOTE: The emphasis is on 'ways', not necessarily advantages. Max (8) [60] BREAKDOWN OF MARKS QUESTION 4 MARKS 4.1 5 4.2 8 4.3 6 4.4 8 4.5.1 2 4.5.2 2 4.6 4 4.7 8 4.8 9 4.9 8 TOTAL 60 99

QUESTION 5: BUSINESS OPERATIONS 5.1 Methods of external recruitment - Printed media, e.g. newspapers/flyers√ - Electronic media, e.g. radio/TV√ - Social media/Social networks/Internet/Business websites√ - Recruitment agencies√ - Walk-ins√ - Head hunting√ - Professional associations√ - Networking√ - Educational/Training institutions√ - Posters/Bill boards just outside the business√ - Any other relevant answer related to the methods of external recruitment. NOTE: 1. Mark the first FIVE (5) only. 2. Allocate a maximum of ONE (1) mark for examples on each method (5 x 1) (5) 5.2 Aspects to be included in an induction programme - Safety regulations and rules.√√ - Overview of the business.√√ - Information about business products/services.√√ - Tour of the premises.√√ - Introduction to management and close colleagues.√√ - Conditions of employment, e.g. working hours/leave application process/ disciplinary procedures√√, etc. - Administration details, e.g. systems/processes/logistics.√√ - Meeting with senior management who will explain the company's vision/values/ and job description/daily tasks.√√ - Discussion of the employment contract and conditions of service.√√ - Discussions on staff policies, e.g. making private calls/using the internet√√, etc. - Discussion on employees' benefits.√√ - Information on CSR/CSI programmes.√√ - Any other relevant answer related to aspects that should be included in an induction programme. NOTE: Mark the first THREE (3) only. (3 x 2) (6) 100

5.3.1 Employment contract CHALLENGES RECOMMENDATION - It only bears Mr Du Preez's - Both TF (employer) and Mr. Du Preez must signature/is signed by Mr Du sign the employment contract.√√ Preez only.√ Sub max (1) Sub max (2) - Mr Du Preez is expected to - TF/The employer and Mr. Du Preez/the work twelve hours overtime per employee must both be satisfied with the week.√ provisions included in the employment contract.√√ - Employees can work overtime for a maximum period as per legislation and agreed upon/ten hours per week.√√ - Overtime must be a mutual agreement between the employer and employee.√√ Sub max (1) Sub max (2) Mr Du Preez is expected to - The contract should clearly set out the perform other duties which are conditions of employment/duties/ not listed in his contract.√ responsibilities of the employees.√√ - Specific details of the job should be clearly explained/stipulated in the contract.√√ Sub max (1) Sub max (2) - Any other relevant recommendation for improvement on the challenges related to Mr Du Preez's employment contract. Sub max (3) Sub max (6) NOTE: 1. The answer does not have to be in tabular format. 2. The recommendations must be linked to the scenario/challenges. 3. Do not award marks for recommendations that are changed into positives unless it is linked to the legal requirements. Challenges (3) Recommendation (6) Max (9) 101

5.3.2 Other legal requirements of the employment contract - The employment contract is a legally binding document even though certain aspects of the contract are negotiable.√√ - Neither Mr Du Preez/employee nor TF/employer may unilaterally change aspects of the employment contract.√√ - TF/Employer must explain the terms and conditions of the employment contract to Mr Du Preez/employee, if deemed necessary.√√ - Employers must allow employees to read through the conditions of service and code of conduct before they sign the contract.√√ - Mr Du Preez may also consult legal experts to help him understand the terms and conditions of the contract.√√ - Both parties involved must have contractual capacity.√√ - It should include a code of conduct and/or a code of ethics for employees.√√ - Specific details of the remuneration package should be clearly explained to employees/stipulated in the contract.√√ - It must stipulate what employees would receive in terms of benefits and labour legislation.√√ - All business policies/procedures/disciplinary codes should form part of the employment contract.√√ - Any other relevant answer related to other legal requirements of the employment contract. NOTE: 1. Mark the first TWO (2) only. 2. Do not award marks for legal requirements that are stated in QUESTION 5.3.1. (2 x 2) (4) 5.4 Selection procedure - Determine fair assessment criteria√ on which selection will be based.√ - Applicants must submit the application forms/curriculum vitae√ and certified copies of personal documents/IDs/proof of qualifications√, etc. - 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.√ - Preliminary interviews are conducted√ if many suitable applications were received.√ - Reference checks should be made to verify the contents of CV's√, e.g. contact previous employers to check work experience.√ - Compile a shortlist√ of potential candidate's identified.√ - Shortlisted candidates may be subjected to various types of selection tests√ e.g. skills tests√, etc. - Invite shortlisted candidates√ for an interview.√ - A written offer is made√ to the selected candidate.√ - 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 the selection procedure. NOTE: Procedure may be in any order. Max (8) 5.5 TQM elements 5.5.1 Total client/customer satisfaction√√ 5.5.2 Continuous skills development/Education and training√√ 5.5.3 Continuous improvement to processes and systems√√ 5.5.4 Involvement of all employees/People based management√√ 5.5.5 Adequate financing and capacity√√ (5 x 2) (10) 102

5.6 Reduction of cost of quality through TQM - Introduce quality circles/small teams of five to ten employees√, who meet regularly to discuss ways of improving the quality of their work.√ - Schedule activities to eliminate√ duplication of tasks/activities.√ - Share responsibility for quality output√ between management and workers.√ - Train employees at all levels√, so that everyone understands their role in quality management.√ - Develop work systems that empower employees√ to find new ways of improving quality.√ - Work closely with suppliers√ to improve the quality of raw materials/inputs.√ - Improve communication about the quality challenges/deviations√, so that everyone can learn from past experiences.√ - Reduce investment√ on expensive, but ineffective inspection procedures in the production process.√ - Implement pro-active maintenance programmes for equipment/machinery√ to reduce/eliminate breakdowns.√ - Any other relevant answer related to ways in which business can reduce the cost of quality through TQM. Max (6) 5.7 Distinction between quality performance and quality management QUALITY PERFORMANCE QUALITY MANAGEMENT - Total performance of each - It is techniques/tools√ used to design/ department measured√ against the improve the quality of a product.√ specified standards.√ - Can be obtained if all departments - Can be used for accountability√ work together√ towards the same within each of the business quality standards.√ functions.√ - Quality is measured√ through - Aims to ensure that the quality of physical product/statistical output of goods/services√ is consistent√/ processes/surveys of the users Focuses on the means√ to achieve and/or buyers of goods/services.√ consistency.√ - Any other relevant answer related - Any other relevant answer related to to quality performance. quality management. Sub max (2) Sub max (2) NOTE: 1. The answer does not have to be in tabular format. 2. The distinction must be clear. Max (4) 5.8 Business functions 5.8.1 Quality indicators of the marketing function - Acquire a greater market share through good customer service.√√ - Win customers loyalty by satisfying their needs and wants/building positive relationships.√√ - Adhere to ethical advertising practices when promoting products and services.√√ - Identify competitive edge and conduct regular market research.√√ - Differentiate products to increase the target market/profitability.√√ - Constantly review value issues.√√ - Communicate effectively with customers to get their feedback about their experiences of the products and services sold.√√ 103

- Ensure that the production and advertising strategies are aligned.√√ - Use pricing techniques to ensure a competitive advantage.√√ - Measure the gaps between customer expectations and their actual experiences so that problems regarding quality of products can be diagnosed and addressed.√√ - Make adjustments and changes to products and services based on feedback received from customers.√√ - Use aggressive advertising campaigns to sustain the market share.√√ - Any other relevant answer related to quality indicators of the marketing function. NOTE: Mark the first TWO (2) only. (2 x 2) (4) 5.8.2 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/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) [60] BREAKDOWN OF MARKS QUESTION 5 MARKS 5.1 5 5.2 6 5.3.1 9 5.3.2 4 5.4 8 5.5 10 5.6 6 5.7 4 5.8.1 4 5.8.2 4 TOTAL 60 104

QUESTION 6: MISCELLANEOUS TOPICS BUSINESS ENVIRONMENT 6.1 Swot analysis and business strategies 6.1.1 Swot analysis STRENGTH WEAKNESS - DDS employs qualified sound - DDS does not have sufficient capital/ engineers.√ cannot buy and sell sound systems that - DDS specialises in selling radios cater for large functions.√ and car sound systems.√ Sub max (1) Sub max (1) OPPORTUNITY THREAT - Businesses in the same industry - Operates in a high crime area.√ are closing down due to ineffective marketing campaigns.√ Sub max (1) Sub max (1) Max (4) 6.1.2 Strategies to handle the weakness and threat WEAKNESS STRATEGY - DDS does not have sufficient - DDS should negotiate with a supplier for capital/cannot buy sound systems better prices/Buy sound systems on that cater for large functions. credit.√√ - Lease big sound systems from suppliers and hire to customers when needed.√√ - Apply for a loan to increase the capital of the business.√√ - Increase shareholders/Change form of ownership to raise more capital.√√ - Any other relevant strategy on how DDS can address the weakness/capital/ sound system issues. Sub max (2) 105

THREATS STRATEGY - Operates in a high crime area. - DDS should install security systems/hire more security to safeguard the business.√√ - Engage in CSR/CSI programmes that are aimed at reducing crime in the community.√√ - Provide employment opportunities for local people/the community.√√ - Relocate the business to other areas where the crime rate is minimal.√√ - Work together with the Community Policing Forums (CPF).√√ - Any other relevant strategy on how DDS may address the threat of the high crime area in which it operates. Sub max (2) NOTE: 1. Do not award marks for strategies that are not linked to the identified threat or weakness in QUESTION 6.1.1. 2. Mark the FIRST strategy for each weakness and threat. 3. Do not award marks for the weakness/threat. Max (4) 6.2 Advantages of COIDA - Promotes safety√ in the workplace.√ - Creates a framework√ for acceptable employment practices/safety regulations.√ - Supply administrative guidelines/mechanisms√ for dealing with/processing claims.√ - Eliminates time and costs spent√ on lengthy civil court proceedings.√ - Employers are protected from financial burden should an accident occur in the workplace√ provided that the employer was not negligent.√ - Claiming processes√ are relatively simple.√ - Makes businesses more socially responsible√ as they cannot just employ workers at random in dangerous working conditions.√ - Workers are treated with dignity and respect√ as businesses view them as valuable assets and not just as workers.√ - Covers all employees at the workplace√ if both parties meet all the necessary safety provisions in the Act.√ - Employees do not contribute√ towards this fund.√ - Employees are compensated financially for any injury/disability√ resulting from performing their duties at their workplace.√ - In the event of the death of an employee as a result of a work-related accident/ disease√, his/her dependent(s) will receive financial support.√ - Employees receive medical assistance√ provided there is no other medical assistance option.√/Cannot claim medical assistance from the fund√ and medical aid.√ - Any compensation to an employee/the family√ is exempt from income tax.√ - Any other relevant answer related to the advantages of COIDA. Max (6) 106

BUSINESS VENTURES 6.3 Examples of non-verbal presentation methods - Tables√ - Graphs/bar graph/line graph/histogram/pie graph√ - Diagrams√ - Illustrations/Pictures/Photographs/Scenarios√ - Written/Business reports√ - Flip charts√ - Handouts√ - Slide shows - √ - Any other relevant examples of non-verbal presentation methods. NOTE: Mark the first TWO (2) only. (2 x 1) (2) 6.4 Investment in shares Return on investment (ROI) - ROI/Pay out/Declaration of dividends√ depends on the decision of directors.√ - Dividends are paid in cash√ or in the form of additional/bonus shares.√ - Investors have to pay tax√ on dividends earned.√ - Higher dividends paid out by some companies√ attract more potential investors.√ - Holders of ordinary shares√ may receive higher dividends when the company performs well.√ - Any other relevant answer related to how the return on investment may influence the decision to invest in shares. Sub max (2) Risk - Shares have low/medium risk√ over a longer investment period.√ - Shares with higher risks√ have a greater potential for higher returns.√ - Ordinary shares have the highest risk√ as the investor may lose the full/part of the investment when the company is dissolved/bankrupt/liquidated.√ - Preference shareholders' risk is lower√, as they have preferential claims on the assets of the liquidated company/may receive some compensation before ordinary shareholders.√ - Share prices are linked to factors that investors cannot control√, e.g. economic conditions, operational success of the company√, etc. - Share prices are volatile/unstable/unpredictable/may increase/ decrease sharply within hours√ which contribute to the uncertainty of the value of an investment in shares on the short term.√ - Any other relevant answer related to how the level of risk may influence the decision to invest in shares. Sub max (2) Max (4) 107

6.5 Comparison between a partnership and personal liability company (PLC) CRITERIA PARTNERSHIPS PERSONAL LIABILITY COMPANY 6.5.1 Continuity - If one partner dies or - If one shareholder dies/ retires√, the remaining retires√, the company will partners need to draw up a still continue to exist/ new agreement/ continuity.√ no continuity.√ - Any other relevant comparison between a partnership and personal liability company in terms of continuity. Max (4) 6.5.2 Taxation - Partners pay tax√ in their - Companies and personal capacity.√ shareholders√ are taxed separately/double taxation.√ Any other relevant comparison between a partnership and personal liability company in terms of taxation. Max (4) NOTE: 1. The comparison must be clearly linked. 2. Award a maximum of FOUR (4) marks, if the comparison is not clear. BUSINESS ROLES 6.6 Problem-solving steps - Identify the problem.√ - Define the problem.√ - Identify alternative solutions.√ - Evaluate alternative solutions.√ - Choose the best solution.√ - Formulate/Develop an action plan/strategy.√ - Implement the action plan/strategy.√ - Evaluate the action plan/strategy/final solution.√ - Any other relevant answer related to the problem-solving steps. NOTE: 1. Mark the first FOUR (4) only. 2. Steps can be in any order. 3. Award marks when different approaches in problem-solving are used, e.g. 3 or 4 steps, etc. (4 x 1) (4) 6.7 King Code principles 6.7.1 Transparency√√ (2) 6.7.2 Accountability√√ (2) 108

6.8 Grievance procedure - An aggrieved employee/Mr Nel must verbally report the incident/grievance to his/her supervisor/manager√, who needs to resolve the issue within 3 to 5 working days.√ - Should the employee and supervisor not be able to resolve the grievance√, the employee may take it to the next level of management.√ - The employee may move to a more formal process√ where the grievance must be lodged in writing/completes a grievance form.√ - Mr Nel must receive a written reply√ in response to the written grievance.√ - A grievance hearing/meeting√ must be held with all relevant parties present.√ - Minutes of the meeting must be recorded√ and any resolution passed must be recorded on the formal grievance form.√ - Should the employee not be satisfied√, then he/she could refer the matter to the highest level of management.√ - Top management should arrange a meeting√ with all relevant parties concerned.√ - Minutes of this meeting should be filed/recorded√ and the outcome/decision must be recorded on the formal grievance form.√ - Should the employee still not be satisfied, he/she may refer the matter to the CCMA√ who will make a final decision on the matter.√ - The matter can be referred to Labour Court on appeal√ if Mr Nel is not satisfied with the decision taken by the CCMA.√ - Any other relevant answer related to the correct procedure to deal with grievances in the workplace. NOTE: The procedure may be in any order. Max (8) BUSINESS OPERATIONS 6.9 Fringe benefits 6.9.1 Examples of fringe benefits - Free accommodation√ - Medical aid√ NOTE: Only allocate marks for examples that are quoted from the scenario. (2 x 1) (2) 6.9.2 Benefits/Advantages of fringe benefits for CB/businesses - Attractive fringe benefit packages√ may result in higher employee retention/ reduces employee turnover.√ - Attracts qualified/skilled/experienced employees√ who may positively contribute towards CB/business goals/objectives.√ - It increases employee satisfaction/loyalty√ as they may be willing to go the extra mile/do more than what is required.√ - Improves productivity√ resulting in higher profitability.√ - Any other relevant answer related to the benefits/advantages of fringe benefits to CB/businesses. Max (6) 109

6.10 Negative impact of poorly implemented TQM - Setting unrealistic deadlines√ that may not be achieved.√ - Employees may not be adequately trained√ resulting in poor quality products.√ - Decline in productivity√, because of work stoppages.√ - Businesses may not be able to make necessary changes√ to satisfy the needs of customers.√ - The reputation of the business√ may suffer because of faulty goods.√ - Investors might withdraw their investment√, if there is a decline in profits.√ - Bad publicity√ due to poor quality products supplied.√ - Decline in sales√, as returns from unhappy customers' increase.√ - Loss of customers√ may lead to bankruptcy/business closure.√ - High staff turnover√, because of poor skills development.√ - Undocumented quality control systems/processes√ could result in error or deviations from pre-set quality standards.√ - Any other relevant answer related to the negative impact resulting from poorly implemented TQM. Max (8) [60] BREAKDOWN OF MARKS QUESTION 6 MARKS 6.1.1 4 6.1.2 4 6.2 6 6.3 2 6.4 4 6.5.1 4 6.5.2 4 6.6 4 6.7.1 2 6.7.2 2 6.8 8 6.9.1 2 6.9.2 6 6.10 8 TOTAL 60 TOTAL SECTION B: 180 110

SECTION C QUESTION 7: BUSINESS ENVIRONMENTS (LEGISLATION) 7.1 Introduction - The Labour Relations Act regulates the relationship between employees and their trade unions/employers and their organisation.√ - The Act may include amendments/repeal laws related to labour relations in order to promote sound labour relations.√ - The Act promotes employment equity and democracy in the workplace through prevention of unfair labour practices.√ - LRA deals with hiring/disciplining/firing employees/trade union negotiation/ strikes.√ - Labour relations usually involves three parties namely the employer, the employee and the government.√ - Any other relevant introduction related to LRA. Max (2) 7.2 The rights of employees and employers 7.2.1 Rights of employers - Employers have the right to lockout employees who engage in unprotected/illegal strike/labour action.√√ - Form employer organisations.√√ - Form a bargaining council for collective bargaining purposes.√√ - Dismiss employees who are engaged in an unprotected strike/misconduct such as intimidation/violence during a strike action.√√ - Right not to pay an employee who has taken part in a protected strike for services/work they did not do during the strike.√√ - Any other relevant answer related to the rights of employers according to the LRA. Sub max (8) 7.2.2 Rights of employees - Employees may join a trade union of their choice.√√ - Request trade union representatives to assist/represent employees in the grievance/disciplinary hearing.√√ - Trade union representatives may take reasonable time off work with pay, to attend to trade union duties.√√ - Embark on legal strikes as a remedy for grievances.√√ - Refer unresolved workplace disputes to the CCMA.√√ - Refer unresolved CCMA disputes to the Labour Court on appeal.√√ - Any other relevant answer related to rights of employees according to the LRA. Sub max (8) Max (12) 7.3 Purpose of LRA - Provides a framework/structure for labour relations√ between employers/ employees/trade unions/employer organisations.√ - Promotes/Facilitates collective bargaining√ at the workplace/at sectorial level.√ - Promotes workplace forums√ to accommodate employees in decision making.√ - Provides for the right to lock-out by the employer√ as a reaction to lengthy strikes.√ 111

- Promotes fair labour practice√ between the employers and employees.√ - Clarifies the transfer of employment contracts√ between the existing and new employers.√ - Promotes simple procedures√ for the registration of trade unions/employer organisations.√ - Advances economic development/social justice/labour peace√ to ensure that the workplace maintains the basic rights of employees.√ - Establishes the Commission for Conciliation, Mediation and Arbitration (CCMA)√ for dispute resolutions.√ - Establishes Labour Courts√ and Labour Appeal Courts.√ - Any other relevant answer related to the purpose of the LRA. Max (12) 7.4 Impact of LRA on businesses Positives/Advantages - Protects the rights of businesses√ in labour related issues.√ - Protect employers who embark on lawful lockouts√ when negotiations between parties fail.√ - Ensures participation of all parties in collective bargaining/decision making√ which reduces conflict in the workplace.√ - Labour disputes√ are settled quicker√ are less expensive.√ - Workplace forums can also be tasked to resolve workplace issues√ as they take part in decision making.√ - Provides for dispute resolution through consensus√ between organised labour, businesses and the state.√ - Provides mechanisms√, e.g. statutory councils/collective bargaining/CCMA to settle labour disputes.√ - Prevents unfair discrimination in the workplace√ as all employees should be given equal opportunities.√ - Employers can dismiss employees√ who engage in unprotected strikes.√ - Employers may claim compensation√ through the Labour Court for losses suffered as a result of an unprotected strike.√ - Any other relevant answer related to the positive impact of LRA on businesses. AND/OR Negatives/Disadvantages - Productivity may decrease√ if employees are allowed to participate in the activities of trade unions during work time.√ - Profitability may decrease√ due to a decline in sales/production.√ - Quick decision making may be negatively affected√ as some workplace forum representatives may only focus on the interest of employees and neglect that of the business.√ - Dispute resolution through consensus√ may be time consuming.√ - Incompetent employees may be inherited when a business is transferred/sold√, because the new owner has to take over/continue with the existing employees' contracts.√ - Information about workplace issues may be disclosed to trade unions√ which may be leaked to competitors/media.√ - Costs of labour increases√ because of legal strikes.√ 112

- Labour consultants may be employed to deal with labour related issues√ which may be costly.√ - Reduced global competitiveness√ due to lower productivity.√ - Any other relevant answer related to the negative impact of the LRA on businesses. Max (14) 7.5 Ways in which businesses can comply with the LRA - Businesses must allow employees to form trade unions/participate in union activities/legal strikes.√√ - Allow/Support the establishment of workplace forums.√√ - Employees should not be unfairly/illegally dismissed.√√ - Employers should not breach/ignore any collective agreement.√√ - 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 (8) 7.6 Conclusion - LRA provides for conflict resolution mechanisms in the workplace.√√ - Fair labour practices in the workplace may result in efficient business operations with minimal disruptions.√√ - The Act requires agreement through sound labour relations between trade unions and employer organisations.√√ - Businesses need to comply with the Act to promote a healthy working/workplace relationship.√√ - Any other relevant conclusion related to the LRA. Max (2) [40] QUESTION 7: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Rights of employees & employers 12 Purpose of LRA 12 Max Impact of LRA 14 32 Compliance 8 Conclusion 2 INSIGHT Layout 2 Analysis/Interpretation 2 8 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO – For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if some requirements are met. Allocate 0 marks where requirements are not met at all. 113

QUESTION 8: BUSINESS VENTURES (INSURANCE AND PRESENTATION) 8.1 Introduction - Insurance is extremely beneficial to both businesses and individuals.√ - Insurance provides some source of financial relief to the business.√ - Business needs to know which risks are insurable or non-insurable.√ - Presentation methods should be improved regularly to stay abreast with the latest trends.√ - Any other relevant introduction related to insurance and presentations. Max (2) 8.2 Distinction between compulsory and non-compulsory insurance COMPULSORY INSURANCE NON-COMPULSORY INSURANCE - Is required by law/There are legal - Is voluntary/The insured has a choice√ obligations√ for it to be taken out whether to enter into an insurance and paid for.√ contract.√ - It is regulated by Government√ and - Insured will enter into a legal insurance does not necessarily require contract with the insurer√, who may be insurance contracts/brokers.√ represented by an insurance broker.√ - Payment is in the form of a levy/ - Monthly/Annual payments/premiums contribution paid into a common that must be paid√ in order to be fund√ from which benefits may be covered for a nominated risk/insured claimed under certain conditions.√ event.√ - Any other relevant answer related - Any other relevant answer related to to compulsory insurance. non-compulsory insurance. Sub max (4) Sub max (4) - Examples: - Examples: Unemployment Insurance Fund/ Short term insurance√/Multi-peril/ UIF√, Road Accident Fund/ Comprehensive insurance (theft, fire, RAF/Road Accident Benefit etc.)√ Scheme/RABS√, Compensation Long-term insurance√/Life insurance√ for Occupational Injuries and Diseases /COIDA√ - Any other relevant example of - Any other relevant example of non- compulsory insurance. compulsory insurance. (2 x 1) (2) (2 x 1) (2) NOTE: 1. The answer does not have to be in tabular format. 2. The distinction must be clear. 3. Mark the first TWO (2) examples of each type of insurance. Max (12) 114

8.3 Importance of insurance to businesses - Transfers the risk from businesses/insured√ to an insurance company/insurer.√ - Transfer of risk is subject to the terms and conditions√ of the insurance contract.√ - Protects businesses against theft/loss of stock/damages√ caused by natural disasters e.g. floods/storm damage√, etc. - Businesses will be compensated√ for insurable losses.√ - Valuable business assets√ e.g. vehicles/equipment/buildings need to be insured against damage and/or theft.√ - Businesses are protected against the loss of earnings√, e.g. strikes by employees which result in losses worth millions.√ - Protects businesses√ against dishonest employees.√ - Life insurance can be taken on the life of partners in a partnership√ to prevent loss of capital.√ - Should the services of key personnel be lost due to accidents/death√, the proceeds of an insurance policy can be paid out to the business.√ - Replacement costs for damaged machinery/equipment are very high√, therefore insurance can reduce/cover such costs.√ - Protects the business against losses√ due to the death of a debtor.√ - Insurance policies can be ceded to financial institutions√ as security/collateral for loans√. - Any other relevant answer related to the importance of insurance to businesses. Max (8) 8.4 Principles of insurance 8.4.1 Security/Certainty√√ - Applies to long-term insurance√ where the insurer undertakes to pay out an agreed upon amount in the event of loss of life.√ - A predetermined amount will be paid out √ when the insured reaches a pre- determined age/or gets injured due to a predetermined event.√ - Aims to provide financial security√ to the insured at retirement/the dependents of the deceased.√ - Any other relevant answer related to security/certainty as a principle of insurance. Principle (2) Explanation (6) Sub max (8) 8.4.2 Indemnification/Indemnity√√ - Usually applies to short term insurance√, as the insured is compensated for specified/proven harm/loss.√ - Insurer agrees to compensate the insured for damages/losses specified in the insurance contract√, in return for premiums paid by the insured to the insurer.√ - Protects the insured against the specified event√ that may occur.√ - Pay-outs from insurance companies/insurer will only be made√, if there is proof that the specified event took place/if the insured can prove the amount of the loss/ damage.√ - The amount of indemnification/compensation is limited to the amount of provable loss/damage√, even if the amount in the policy/insurance contract is higher.√ 115

- The insured must be placed in the same position√ as before the occurrence of the loss/damage√/The insured√ may not profit from insurance.√ - Any other relevant answer related to indemnification/indemnity as a principle of insurance. Principle (2) Explanation (6) Sub max (8) 8.4.3 Insurable interest√√ - Insured must prove that he/she will suffer a financial loss√ if the insured object is damaged/lost/ceases to exist.√ - An insurable interest must be expressed√ in financial terms.√ - Insured must have a legal relationship√ with the insured object in the contract.√ - Any other relevant answer related to insurable interest as a principle of insurance. Principle (2) Explanation (6) Sub max (8) 8.4.4 Utmost good faith√√ - Insured has to be honest in supplying details√ when entering in an insurance contract.√ - Both parties√ must disclose all relevant facts.√ - Insured must disclose everything√ that may affect the extent of the risk.√ - Details/Information supplied when claiming√ should be accurate/true.√ - Any other relevant answer related to utmost good faith as a principle of insurance. Principle (2) Explanation (6) Sub max (8) NOTE: 1. Mark the first THREE (3) only. 2. Award marks if the example demonstrates understanding of the principles/requirements. Max (16) 8.5 Advice on the improvement of the next presentation - Mr Funa should revise objectives that were not achieved.√√ - Use humour appropriately.√√ - Always be prepared to update/keep the information relevant.√√ - Reflect on any problem/criticism and avoid it in future presentations.√√ - Any information that Mr Funa receives as feedback from a presentation should be analysed and where relevant, incorporated/used to update/amend his presentation.√√ - Reflect on the time/length of the presentation to add/remove content.√√ - Increase/Decrease the use of visual aids or replace/remove aids that do not work well.√√ - Reflect on the logical flow of the format/slides/application of visual aids.√√ - Any other recommendation related to how Mr Funa can improve his next presentation. Max (10) 116

8.6 Conclusion - Insurance plays an important role in securing the future of any business.√√ - The purpose of insurance is to provide businesses with financial peace of mind.√√ - Effective presentation of business information is one of the key elements of communicating with various stakeholders.√√ - Any other relevant conclusion related to insurance and presentations. Max (2) [40] QUESTION 8: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Distinction between compulsory and 12 non-compulsory insurance Importance of insurance 8 Max 32 Principles of insurance 16 Improvement on the next 10 presentation Conclusion 2 INSIGHT Layout 2 Analysis/Interpretation 2 8 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO – For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if only some of the requirements are met. Allocate 0 marks where requirements are not met at all. QUESTION 9: BUSINESS ROLES (SOCIAL RESPONSIBILITY AND CORPORATE CITIZENSHIP) 9.4 Introduction - Corporate Social Responsibility/CSR is the way a business conducts its operations ethically and morally, regarding the use of human, physical and financial resources.√ - CSR programmes help to conserve the environment by ensuring that the community has sustainable resources.√ - Businesses should consider the impact of the business's operations on the environment in their decision making.√ - Businesses are corporate citizens and therefore have a responsibility towards society.√ - CSI is a component of CSR, where social responsibility is the intention and social investment is the action.√ - Business should consider the importance of the wellbeing of the community in relation to profitability and productivity.√ - Any other relevant introduction related to social responsibility and corporate citizenship. Max (2) 117

9.5 Differences between CSR and CSI CSR CSI - Refers to strategies used by business√ - Refers to any project undertaken by to take responsibility for their impact on business√ which is not directly aimed society/the environment.√ at increasing profitability.√ - Aims at improving the quality of life√ for - Regarded as direct investments in the employees/their families and the projects√ that will benefit the community in which the business community.√ operates.√ - It is the way in which companies man- - CSI projects are developmental of age their business operations√ so that it nature√ and business resources are impacts positively on all stakeholders.√ used to benefit/uplift communities.√ - Focus is on the commitment from - CSI focuses on how businesses business to act ethically√ by contributing manage√ their expenditure on CSI to social/economic development.√ projects√ - Any other relevant answer related to - Any other relevant answer related to CSR. CSI. Sub max (4) Sub max (4) NOTE: 1. The answer does not have to be in tabular format, but differences must be clear. 2. Award a maximum of FOUR (4) marks if differences are not clear. Max (8) 9.3 Impact of CSI on businesses Positives/Advantages - May attract experienced employees/increase the pool of skilled labour√ which could increase productivity.√ - Positive/Improved image√ as the business looks after employees/conducts itself in a responsible way.√ - A business may have a competitive advantage√, resulting in good publicity/an improved reputation.√ - Promotes customer loyalty√ resulting in more sales.√ - CSI projects√ may be used as a marketing strategy to promote their products.√ - The business enjoys the goodwill/support√ of communities.√ - CSI projects promote teamwork√ within businesses.√ - CSI helps to attract investors√ because of increased profits/income.√ - Gives businesses tax advantages√ such as tax reduction/-rebates.√ - Assists in solving socio-economic issues√ like poverty/unemployment√, etc. - The government is less likely to enforce issues through legislation√ to businesses that voluntarily participate in CSI projects.√ - Employees feel as if they are making a difference√ in working for the business.√ - It helps to retain staff/lower staff turnover√ as employees' health and safety are considered.√ - Improves the health of its employees√ through focused CSI projects.√ - Businesses become more community-based√ by working closely with the community to roll out skills development projects.√ - Any other relevant answer related to the positive impact of CSI on businesses. AND/OR 118

Negatives/Disadvantages - Business may not be supported/Customers may not buy their products/services√ resulting in a decrease in sales.√ - Small and medium enterprises find it difficult√ to implement CSI programmes.√ - Detailed reports must be drawn up√, which can be time consuming.√ - Social spending reduces business/economic efficiency√ which makes it less competitive.√ - Social involvement is funded from business profits√ which could have been used to the benefit of customers/reduce prices.√ - CSI activities distract business focus√ from its core business functions.√ - Businesses find it difficult√ to adhere to legislation governing CSI.√ - It can increase financial risk√, as programmes cost money and may impact negatively on profits.√ - It is difficult to accurately measure√ the effectiveness of social investment.√ - It is not easy to determine the exact needs of the communities√, which may result in fruitless expenditure on CSI.√ - Most managers are not trained/lack experience√ to handle social programmes.√ - Employees may spend more time working on CSI projects√ instead of focusing on their core duties.√ - Providing goods/services that meet the needs of consumers is√, according to some stakeholders, already socially responsible.√ - Shareholders may receive less dividends√, as some profits are spent on CSI.√ - Some shareholders/stakeholders might withdraw their support from the business√ as they feel that social issues should be the government's responsibility.√ - Any other negative impact of CSI on businesses. Max (16) 9.4 Relationship between triple bottom line and social responsibility 9.4.1 Profit/Economic√√ - Triple Bottom line means that businesses should not only focus on profit/charge high prices√, but should also invest in CSI projects.√ - Businesses should not make a profit√ at the expense of its community.√ - Any other relevant answer related to the relationship between profit/economic and social responsibility. Aspect (2) Explanation (2) Sub max (4) 119

9.4.2 People/Social√√ - Business operations should not have a negative impact on/exploit√ people/ employees/customers/community.√ - Businesses should engage/invest in sustainable community programmes/ projects√ that will benefit/uplift communities.√ - Improve the life style/quality of life√ of their human resources/employees.√ - Any other relevant answer related to the relationship between people/social responsibility. Aspect (2) Explanation (2) Sub max (4) 9.4.3 Planet/Environment√√ - Businesses should not exhaust resources/harm the environment√ for production/profit purposes.√ - They may support energy-efficient/eco-friendly√ products/production methods.√ - Recycle/Re-use waste√, e.g. packaging from recycled material.√ - Any other relevant answer related to the relationship between the planet/environment and social responsibility. Aspect (2) Explanation (2) Sub max (4) NOTE: 1 The relationship should be clear in each of the three P's (people, planet and profit). 2. Award a maximum of SIX (6) marks for listing the aspects without a clear explanation. Max (12) 9.5 Ways of contributing to the well-being of the employees - Businesses should improve the general quality of life of employees, e.g. pay fair wages/skills development√√, etc. - Start a nutritional programme so that employees may enjoy at least one healthy meal per day.√√ - Provide subsidised housing/accommodation for their employees.√√ - Allow staff to use some working time to get involved/participate in projects of their choice.√√ - Provide overtime schedules for fair workload distribution.√√ - Provide transport to employees who work unusually long hours.√√ - Establish coaching/mentoring programmes for junior employees.√√ - Conduct team-building sessions to improve employees' morale.√√ - Encourage employees to attend capacity-building workshops/training/staff development/team-development programmes.√√ - Offer counselling sessions to employees with personal/emotional challenges.√√ - Encourage employees to stay fit/healthy by getting them involved in health activities to minimise stress/substance abuse/obesity.√√ - Any other relevant recommendations related to ways in which businesses may contribute to the well-being of employees. NOTE: Mark the first FIVE (5) only. (5 x 2) (10) 120

9.6 Conclusion - Corporate social responsibility is an obligation required by law and benefits both business and society.√√ - CSI projects allow businesses to influence people's lives in many ways.√√ - Businesses use CSR programmes to comply with laws and ethical business practices.√√ - Any other relevant conclusion on CSR/CSI/social responsibility and corporate citizenship/the well-being of the community. Max (2) [40] QUESTION 9: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Differences between CSR & 8 CSI Impact of CSI on businesses 16 Relationship between social Max responsibility & triple bottom 12 32 line Ways of contributing to the 10 well-being of the employees Conclusion 2 INSIGHT Layout 2 Analysis/Interpretation 2 8 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO – For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if only some of the requirements are met. Allocate 0 marks where requirements are not met at all. 121

QUESTION 10: BUSINESS OPERATIONS (HUMAN RESOURCES AND QUALITY OF PERFORMANCE) 10.1 Introduction - The objective of recruitment is to attract the best possible applicants with the required skills/qualification/competency to fill vacancies.√ - Reliable recruitment procedures and systems should be in place to ensure that businesses achieve their goals.√ - The aim of induction is to introduce the new employee to the job/the new environment.√ - Effective monitoring and evaluating processes may ensure quality products/ services.√ - The general manager should take a lead in ensuring that all activities that are performed by various departments/functions meet the required standards.√ - Any other relevant introduction related to recruitment/induction/monitoring and evaluating processes/quality of performance. Max (2) 10.2 Recruitment procedure - SML/The human resource manager (HRM) should evaluate the job/prepare a job analysis√, that includes the job specification/job description/in order to identify recruitment needs.√/HRM should indicate the job specification/key performance areas√ to attract suitable candidates.√ - Choose the source of recruitment, e.g. internal/external√, to reach/target the suitable applicants/candidates.√ - Vacancies can be internally advertised√ via internal email/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 recruitment procedures. Max (12) 10.3 Benefits of induction - Increases quality of performance/productivity.√√ - Allows new employees to settle in quickly and work effectively.√√ - Ensures that new employees understands rules and restrictions in the business.√√ - The results obtained during the induction process provide a base for focussed training.√√ - Minimises the need for on-going training and development.√√ - New employees may establish relationships with fellow employees at different levels.√√ - Employees will be familiar with organisational structures, e.g. who are their supervisors/low level managers.√√ 122

- 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/where everything is, which saves production time.√√ - Learn more about the business so that new employees understand their roles/ responsibilities in order to be more efficient.√√ - Make new employees feel at ease in the workplace, which reduces anxiety/ insecurity/fear.√√ - 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√√, etc. - Any other relevant answer related to the benefits of induction. Max (12) 10.4 Advantages of monitoring and evaluating quality processes - Monitoring and evaluating quality processes prevent product defects√ and minimises customer complaints.√ - Good quality control checks/procedure minimises√ the replacement/breakdown of items/equipment/machinery on a regular basis.√ - May be better equipped√ to get things right the first time.√ - Improve performance√ and increase productivity/sales/profitability.√ - Improve current and future management√ of quality outputs/outcomes/impact.√ - Provide a clear indication about quality aspects√ that are contributing to the achievement of goals/targets.√ - Modify interventions√ that may improve the efficient use of resources.√ - Support management√ to acquire information needed to make informed decisions about processes.√ - Any other relevant answer related to the advantages of monitoring and evaluating quality processes as a TQM element of SML as a large business. Max (8) 10.5 Ways in which the general manager can contribute to quality of performance - Develop/Implement/Monitor effective strategic plans/goals.√√ - Efficient organisation/allocation of business resources to allow for the successful achievement of long-term/short-term plans.√√ - Ensure that structured standards/norms are in place so that control mechanisms can be implemented.√√ - Learn about/Understand changes in the business environment on an on-going basis.√√ 123

- Set direction and establish priorities for the business.√√ - Communicate shared vision, mission and values effectively.√√ - Set an example of expected behaviour in terms of ethics as well as productivity.√√ - Ensure that employees have the necessary resources to do their work/allocate resources effectively.√√ - Be proactive and always seek to improve the competitive advantage over competitors.√√ - Any other relevant answer related to ways in which the general manager can contribute to the quality of performance of the business. Max (16) 10.6 Conclusion - Recruitment is an on-going process as employees leave their jobs for other jobs/get promoted/retire.√√ - A good induction programme enables new employees to have a basic understanding of what is expected in the new job/position.√√ - An effective monitoring and evaluating quality process may result in higher quality products/customer satisfaction.√√ - The quality of performance of the general manager plays an important role in ensuring that the business produces quality goods and services.√√ - Any other relevant conclusion related to recruitment/monitoring and evaluating processes/quality of performance of general management. Max (2) [40] QUESTION 10: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Recruitment procedure 12 Benefits of induction 12 Advantages of monitoring and Max 8 evaluating quality processes 32 Ways the general manager can 16 contribute to quality of performance Conclusion 2 INSIGHT Layout 2 Analysis/Interpretation 2 8 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO – For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if some requirements are met. Allocate 0 marks where requirements are not met at all. TOTAL SECTION C: 80 GRAND TOTAL: 300