BUS STUDIES P2 GR10 MEMO NOV2019 English

NATIONAL SENIOR CERTIFICATE GRADE 10 NOVEMBER 2019 BUSINESS STUDIES P2 MARKING GUIDELINE MARKS: 150 This marking guideline consists of 23 pages.

2 BUSINESS STUDIES P2 (EC/NOVEMBER 2019) NOTES TO MARKERS 1. Candidates’ responses for SECTIONS B and C must be in full sentences; however, this would depend on the nature of the question. 2. A comprehensive marking guideline has been provided but this is by no means exhaustive. Due consideration should be given to an answer that is correct but:  Uses a different expression from that which appears in the marking guideline  Comes from another source  Original  A different approach is used NOTE: SECTION A:  There are no alternative answers.  Each question has only one correct answer. 3. Take note of other relevant answers provided by candidates and allocate marks accordingly. (In cases where the answer is unclear or indicates some understanding, part-marks should be awarded, for example, one mark instead of the maximum of two marks.) 4. The word ‘sub-max’ is used to facilitate the allocation of marks within a question or sub-question. 5. The purpose of circling marks (guided by ‘max.’ in the breakdown of marks) on the right-hand side is to ensure consistency and accuracy in the marking of scripts. 6. In an indirect question, the theory as well as the response must be relevant and related to the question. 7. Incorrect numbering of questions or sub-questions in SECTIONS A and B will be severely penalised. Therefore, correct numbering is strongly recommended in all sections. 8. No additional credit must be given for repetition of facts. Indicate with an R. 9. Subtotals to questions must be written in the right-hand margin. Circle the subtotals as indicated by the allocation of marks. This must be guided by ‘max’ in the marking guideline. Only the total for each question should appear in the left-hand margin next to the appropriate question number. Copyright reserved Please turn over

(EC/NOVEMBER 2019) BUSINESS STUDIES P2 3 10. SECTION B 10.1 If, for example, FIVE facts are required, mark the candidate’s FIRST FIVE responses and ignore the rest of the responses. Indicate by drawing a line across the unmarked portion or use the word ‘Cancel’. NOTE: This only applies to questions where the number of facts is specified. 10.2 If two facts are written in one sentence, award the candidate FULL credit. Point 10.1 still applies. 10.3 If candidates are required to provide their own examples/views, brainstorm this to come up with alternative answers. 11. USE OF THE COGNITIVE VERB AND ALLOCATION OF MARKS 11.1 Where the number of facts are specified questions that require candidates to ‘explain/discuss/describe’ will be marked as follows:  Heading 2 marks  Explanation 1 mark (or as indicated in the marking guideline). The ‘heading’ and ‘explanation’ are given separately to facilitate mark allocation. 11.2 If the number of facts is not specified, the candidate must be informed by the nature of the question and the maximum marks allocated. 11.3 ONE mark will be awarded for answers that are easy to recall, requires one-word answers, or is quoted directly from scenario/case study. This applies to SECTIONS B and C in particular. 12. SECTION C 12.1 The breakdown of the mark allocation for the essays is as follows: Introduction Content Maximum: 32 Conclusion Insight 8 TOTAL 40 Copyright reserved Please turn over

4 BUSINESS STUDIES P2 (EC/NOVEMBER 2019) 12.2 Insight consists of the following components: Layout/ Is there an introduction, a body and a 2 Structure conclusion? Analysis and Is the candidate able to break down the interpretation question into heading/sub-headings/ interpret it correctly to show understanding of what is being asked? 2 Marks to be allocated using this guide: All headings addressed: 1 (One ‘A’) Interpretation (16 to 32 marks): 1 (One ‘A’) Synthesis Are there relevant decisions/facts/responses made based on the question? Marks to be allocated using this guide: No relevant facts: 0 (Two ‘_S’) Some relevant facts: 1 (One ‘_S’) Only relevant facts: 2 (No ‘_S’) Option 1: Where a candidate answers 50% or more of the question with only relevant facts; no ‘-S ‘appears in the left margin. Award the maximum of TWO (2) marks for synthesis. Option 2: Where a candidate answers less than 50% of the question with only OR some relevant facts; one ‘-S’ appears in the left margin. Award a maximum of ONE (1) mark for synthesis. Option 3: Where a candidate answers less than 50% of the question with no relevant facts; two ‘-S’ appear in the left margin. Award a ZERO mark for synthesis. Originality Is there evidence of examples, recency of information, current trends and developments? 2 TOTAL FOR INSIGHT: 8 TOTAL MARKS FOR FACTS: 32 TOTAL MARKS FOR ESSAY (8 + 32) 40 NOTE: 1. No marks will be awarded for contents repeated from the introduction and conclusion. 2. The candidate forfeits marks for layout if the words INTRODUCTION and CONCLUSION are not stated. 3. No marks will be allocated for layout, if the headings ‘INTRODUCTION and CONCLUSION are not supported by an explanation. Copyright reserved Please turn over

(EC/NOVEMBER 2019) BUSINESS STUDIES P2 5 12.3 Indicate insight in the left-hand margin with a symbol e.g. (‘L,A, -S and or O’). 12.4 The breakdown of marks is indicated at the end of the suggested answer/marking guidelines to each question. 12.5 Mark all relevant facts until the SUB MAX/MAX mark in a subsection has been attained. Write SUB MAX/MAX after maximum marks have been obtained. 12.6 At the end of each essay, indicate the allocation of marks for facts and marks for insight as follows: (L – Layout, A – Analysis, S – Synthesis, O – Originality) as in the table below. CONTENT MARKS Facts 32 (max.) L 2 A 2 S 2 O 2 TOTAL 40 12.7 When awarding marks for facts, take note of the sub-maxima indicated, especially if candidates do not make use of the same subheadings. Remember headings and sub-headings are encouraged and contribute to insight (structuring/logical flow/sequencing) and indicate clarity of thought. (See MARKS BREAKDOWN at the end of each question.) 12.8 If the candidate identifies/interprets the question INCORRECTLY, then he/she may still obtain marks for layout. 12.9 If a different approach is used by candidates, ensure that the answers are assessed according to the mark allocation/subheadings as indicated in the marking guideline. 12.10 12.10.1 Award TWO marks for complete sentences. Award ONE mark phrases, incomplete sentences and vague answers. 12.10.2 With effect from November 2015, the TWO marks will not necessarily appear at the end of each completed sentence. The ticks (√) will be separated and indicated next to each fact, e.g. “Product development is a growth strategy/where businesses aim to introduce new products √ into existing markets”. √ This will be informed by the nature and context of the question, as well as the cognitive verb used. 12.11 With effect from November 2017, the maximum of TWO (2) marks for facts shown as headings in the marking guidelines, will not necessarily apply to each question. This would also depend on the nature of the question. Copyright reserved Please turn over

6 BUSINESS STUDIES P2 (EC/NOVEMBER 2019) SECTION A (COMPULSORY) QUESTION 1 1.1 1.1.1 B √√ 1.1.2 A √√ 1.1.3 D √√ 1.1.4 D √√ 1.1.5 A √√ (5 x 2) (10) 1.2 1.2.1 profit √√ 1.2.2 bar graph √√ 12.3 prospectus √√ 1.2.4 team spirit √√ 1.2.5 co-operatives √√ (5 x 2) (10) 1.3 1.3.1 D √√ 1.3.2 E √√ 1.3.3 A √√ 1.3.4 F √√ 1.3.5 I √√ (5 x 2) (10) TOTAL SECTION A: 30 BREAKDOWN OF MARKS QUESTION 1 MARKS 1.1 10 1.2 10 1.3 10 TOTAL 30 Copyright reserved Please turn over

(EC/NOVEMBER 2019) BUSINESS STUDIES P2 7 SECTION B Mark only the first TWO answers in this section. QUESTION 2: BUSINESS VENTURES 2.1 Factors impacting on business location  Labour regulations √  Environmental factors √  Transport √  Infrastructure √  Availability of cheaper electricity and water supply √  Potential market √  Raw materials √  Labour market √  Climate √  Government and local regulations √  Taxes √  Crime √ NOTE: Mark only the first FOUR (4). Max. (4) 2.2 Importance of business location  Exposure √ to fair labour regulations. √  To have access to skilled √ and unskilled labour. √  To have access to both the consumers √ and suppliers. √  To determine √ the business profitability. √  Business premises are often very costly √ to rent. √  Not to harm the environment√ of the community. √  To have access to the availability of transport √ in order to bring raw material closer. √  To have sufficient availability of water, √ electricity and communication networks. √  To have access to the proximity of sources √ of raw material. √  Have favourable √ weather conditions. √  Have accessibility to favourable √ government regulations. √  To have access √ to low tax concessions. √  To establish the business in low √ crime rate areas. √  Any other relevant answer related to the importance of business location. Max. (8) Copyright reserved Please turn over

8 BUSINESS STUDIES P2 (EC/NOVEMBER 2019) 2.3 Factors to be considered when preparing verbal presentation quoted from scenario. 2.3.1 When preparing, he considered the following factors: time frame, √ feedback session √ and the objectives of the presentation. √ NOTE: Mark the first THREE only. Max. (3) 2.3.2 Other factors to be considered when preparing verbal presentation  Determine beforehand √ who the audience would be. √  Create visual aids √ to get the points across √  Practise in front of someone √ who will give you an honest opinion of the presentation. √  Your presentation must have an introduction, √ a body and a conclusion. √  Visit the venue √ and ensure visual aids are appropriate for the room. √  Consider external factors, √ e.g. noisy surroundings which may influence the presentation. √  Any other relevant answer related to the steps for preparing verbal presentation. Max. (8) 2.3.3 Preparing support material for presentation  Use large, clear lettering that is easy to read from an appropriate distance. √√  Never have too much writing on the transparency. √√  Provide visual representations of statistics in the form of graphs or charts. √√  Contain the summaries of what you want to convey not the whole text. √√  Be colourful and grab attention. √√  Be meaningful and appropriate. √√  Any other relevant answer related for preparing support material. Max (8) 2.4 Components of a business plan  Cover page and index √  Executive summary √  Description of the business √  SWOT analysis √  Marketing plan √  Financial analysis plan √  Competition √ NOTE: Mark the first FIVE only. (5) Copyright reserved Please turn over

(EC/NOVEMBER 2019) BUSINESS STUDIES P2 9 2.5 Elements of internal market research  Keep track of what goods get returned and watching for patterns. √√  Visit your competitors and comparing prices. √√  Watching customers and seeing how they shop and what they buy. √√  Asking employees to keep track of items customers ask for and things they complain about.  Talking to your customers. √√  Analyse credit application to obtain information to assess what they might buy. √√  Finding out where your customers live so as to understand their lifestyles. √√  Any other relevant answer related to the elements of internal market research. Max. (4) BREAKDOWN OF MARKS QUESTION 2 MARKS 2.1 4 2.2 8 2.3.1 3 2.3.2 8 2.3.3 8 2.4 5 2.5 4 TOTAL 40 Copyright reserved Please turn over

10 BUSINESS STUDIES P2 (EC/NOVEMBER 2019) QUESTION 3: BUSINESS ROLES 3.1 Meaning of adaptability The ability to react and manage √ different situations appropriately. √ Max. (2) 3.2 Criteria for a successful team 3.2.1 Clear objectives and agreed goals √√ 3.2.2 Openness and expression √√ 3.2.3 Commitment to achieve √√ 3.2.4 Sound inter-team relationships √√ (4 x 2) (8) 3.3 Advantages of team work Synergy √√  The combined effort of team members is much more than the sum of each member’s individual effort. √ Sub-max. (3) Creativity √√  Team members are capable of generating more creative solutions. √ Sub-max. (3) Quality √√  Team members are committed to perform at their best when they are part of a team and this impacts favourably on the quality of work delivered. √ Sub-max. (3) Productivity √√  Teams that work together will be able to complete tasks in the shortest possible time. √ Sub-max. (3) Motivation √√  Team members help to keep each other motivated. √ Sub-max. (3) Involvement √√  Teamwork increases employees’ involvement. √ Sub-max. (3) Heading (2) Explanation (1) Max. (6) Copyright reserved Please turn over

(EC/NOVEMBER 2019) BUSINESS STUDIES P2 11 3.4 Factors that influence team relationships 3.4.1  We therefore should accept our diversity √ and try not to discriminate against each other. √ Max. (2) 3.4.2 Discussion of the factors that influence team relationships Diversity  Workplace diversity refers to the variety of people √ in an organisation. √  Any workforce √ includes people of different gender, ethnic groups, ages, religion, personalities, and level of education. √  Sometimes, these differences create conflict √ in the workplace. √  Employees must focus on respecting √ one another’s differences. √  Diverse workforce can supply greater variety of solutions √ to challenges. √  Any other relevant answer related to discussion of diversity. Sub-max. (4) Discrimination  To discriminate means to treat someone who is different from us in an unfair manner. √  People can, for example, differ in terms of values, attitudes, beliefs, race, gender, religion and many other grounds. √  Unfair discrimination can lead to unfair √ labour action, such as strikes. √  In business anyone who is willing and able to do the job and who has the necessary qualifications / skills √ and experience should be considered. √  Any other relevant answer related to the discussion of discrimination. Sub-max. (4) Max. (8) 3.5 Ways to manage stress  Be aware of your needs and wants. √√  Predicts stressful situations and make changes where possible. √√  Manage your time. √√  Avoid conflict. √√  Get enough sleep. √√  Find a relaxation technique that works for you. √√  Follow a balanced lifestyle. √√  Find creative ways to balance work with relaxation. √√  Do not procrastinate. √√  Any other relevant answer related to the ways to manage stress. Max. (8) Copyright reserved Please turn over

12 BUSINESS STUDIES P2 (EC/NOVEMBER 2019) 3.6 Ways in which employees can project a professional image  Being trustworthy and dependable. √√  Be punctual. √√  Dress appropriately. √√  Speaking politely. √√  Producing neat work and presentations. √√  Maintain the skills and knowledge needed for the job. √√  Asking the line manager for guidance when necessary. √√  Any other relevant answer related to the elements of professional image Max. (6) [40] BREAKDOWN OF MARKS QUESTION 3 MARKS 3.1 2 3.2 8 3.3 6 3.4.1 2 3.4.2 8 3.5. 8 3.6 6 TOTAL 40 Copyright reserved Please turn over

(EC/NOVEMBER 2019) BUSINESS STUDIES P2 13 QUESTION 4: MISCELLANEOUS TOPICS BUSINESS VENTURES 4.1 Forms of ownership 4.1.1 Partnership √√ 4.1.2 Public company √√ 4.1.3 Private company √√ Max. (6) 4.2 Characteristics of personal liability company  One (1) or more persons (including juristic persons) may incorporate a personal liability company. √  The board of a personal liability company must comprise at least one director √ or more directors. √  Personal liability companies are subject to fewer disclosure √ and transparency requirements. √  The directors are jointly and severally liable √ with the company for all company debts and liabilities incurred. √  Certain professional persons, such as attorneys and accountants, who are statutorily prohibited from enjoying limited liability, √ often incorporate a personal liability company to regulate their affairs. √  The company has the benefit of corporate existence √ and perpetual succession. √  These companies are identified by the suffix √ ‘Incorporated’ or ‘Inc.’. √  A personal liability company is prohibited by MOI from offering its shares to the public √ and the transferability of its shares is restricted. √  A personal liability company must prepare annual financial statements, √ but is not required to lodge its annual financial statements with the commission. √  Annual financial statements need to be either audited or independently reviewed, unless prescribed by regulation. √  Shareholders of a personal liability company have a right of pre-emption √ in respect of the issue of new securities unless the MOI provides otherwise. √  A personal liability company has a separate legal personality; √ shareholders have limited liability. √  A personal liability company is required to give 10 business days’ notice √ for shareholder meetings. √  Any other relevant answer related to the characteristics of personal liability company. Max. (6) Copyright reserved Please turn over

14 BUSINESS STUDIES P2 (EC/NOVEMBER 2019) 4.3 The importance of a business plan  It is a step-by-step guide that helps √ to convert a business idea into real business. √  The business plan will indicate √ whether your business is likely to be successful. √  It will help you to determine if there is a big enough market √ for the product / service you intend selling. √  It will help you to determine √ prices. √  It will give you an indication √ of when your business will start showing a profit. √  If you need to borrow money from the bank to start your business, √ you will have to present your business plan to the bank manager. √  You can use it to attract investors √ and employees because it communicates your vision for the business. √  You can use your business plan as a tool √ to measure your business performance. √  Explains all the requirements that the business will have to meet in terms of registration √ and other legal matters. √  It helps you to analyse √ the potential strengths, weaknesses, opportunities and threats. √  Any other relevant answer related to the importance of the business plan. Max. (8) BUSINESS ROLES 4.4 4.4.1 Definition of social responsibility Is the concept that individuals and organisations have an obligation √ to contribute to society. √ Max. (2) 4.4.2 Initiatives businesses can take to address socio-economic issues  Providing quality goods and services to people. √√  Ensuring that the production process has no negative impact on the environment. √√  Sponsor equipment and products going to non-profit organisations and other needy groups. √√  Assist with the development of infrastructure (such as building health clinics and schools). √√  Sponsor educational material (such as textbooks, computers and other technological material). √√  Sponsor school feeding scheme. √√  Sponsor school sports teams. √√  Sponsor volunteers from the company taking part in community events. √√  Form partnership with government. √√  Any other relevant answer related to the initiatives taken to address socio-economic issues. Max. (8) Copyright reserved Please turn over

(EC/NOVEMBER 2019) BUSINESS STUDIES P2 15 4.5 Importance of setting goals  Determine how many personal goals you would like to achieve. √  Set your career goals. √  Enrich yourself, never stop learning. √  Spend time with your family. √  It is important to have financial goals. √  Check your physical and mental health. √  Have time to do things you enjoy. √  Any other relevant answer related to setting of goals. Max. (4) 4.6 The importance of recognising one’s strengths and weaknesses  Help you understand weaknesses in order to manage them properly. √√  Help you to explore your interests which could open up new careers and opportunities. √√  Help you uncover your hidden talents that you might otherwise not have discovered. √√  Help you to use your strengths to the best of your ability to advance your career. √√  Any other relevant answer related to the importance of recognising one’s strength. Max. (6) [40] BREAKDOWN OF MARKS QUESTION 4 MARKS 4.1 6 4.2 6 4.3 8 4.4.1 2 4.4.2 8 4.5 4 4.6 6 TOTAL 40 TOTAL SECTION B: 80 Copyright reserved Please turn over

16 BUSINESS STUDIES P2 (EC/NOVEMBER 2019) SECTION C Mark only the FIRST answer from this section. QUESTION 5: BUSINESS VENTURES 5.1 Introduction  One of the main purposes of market research is to identify what consumers need and want. √  With this knowledge in hand you can start to explore different business opportunities. √  Contracts are important for the operation of the business as many interactions are based on the terms of an agreement of one kind or another. √  The very existence of a business depends on its constant interaction with employees, suppliers and consumers. √  Any other relevant introduction to business opportunity and related factors. Max. (2) 5.2 Meaning of business opportunity  A business opportunity is an idea for a product or a service √ that will meet needs and/or desires. √  It can be sold or leased √ to earn an income. √  Identifying business opportunities is a continuous process √ because the needs and wants of people change. √  Any other relevant answer related to the meaning of business opportunity. Max. (4) 5.3 Protocol/Procedure for conducting a research  It is an accepted code of conduct that should be followed √ when conducting market research. √  The research should be conducted √ with the willing co-operation of participants only. √  If research is taking place within the organisation, √ it must be approved first. √  A time and place must be agreed upon √ with the organisation. √  The person conducting research should not try to influence the opinions √ of the participants. √  Participants should always be free to refuse √ to answer a particular question. √  No information collected about the individual should be disclosed √ to anyone else without the participant’s approval. √  The response should not be used for any purpose other than the market research √ being conducted. √  Participants should be told the reason for the research √ and approximately how long it will take to complete the questions. √  Research findings must be reported accurately, √ and not be used to mislead anyone. √  Any other relevant answer related to protocol and ethics for conducting research. Max. (14) Copyright reserved Please turn over

(EC/NOVEMBER 2019) BUSINESS STUDIES P2 17 5.4 Discussion of different contracts 5.4.1 Employment contract √√  Regulates terms and conditions of employment √ between the employer and employee. √  Sets out what the employer will provide according to labour law √ and in terms of company benefits. √  Also regulates the behaviour of the employee in the workplace √ in accordance with the labour law / and in terms of company policies. √  Any other relevant answer related to discussion of employment contract. Sub-max. (6) 5.4.2 Insurance contract √√  Contract between the insurer and the insured √ in which the insurer undertakes to pay the insured for losses suffered. √  Insured undertakes to pay √ a monthly premium to the insurer. √  Aims to cover the insured for losses that may be incurred √ as a result of unforeseen circumstances. √  Any other relevant answer related to discussion of insurance contract. Sub-max. (6) 5.4.3 Lease agreement √√  Agreed between lessor √ and a lessee. √  The lessor grants √ the lessee the right to let a property at a set price. √  The lessee does not acquire ownership √ of the property. √  The lessee acquires the right to the temporary use and enjoyment √ of the property for the period agreed. √  Businesses will enter into lease agreements √ if they are interested in leasing machinery or property. √  It is the duty of the lessor √ to maintain the property. √  The lessee is obliged √ to pay the rent to the lessor √  The property must be returned √ in good condition. √  Any other relevant answer related to discussion of lease agreement. Sub-max. (6) Copyright reserved Please turn over

18 BUSINESS STUDIES P2 (EC/NOVEMBER 2019) 5.4.4 Credit agreement / Hire purchase √√  Credit agreements enable consumers to purchase products √ without having to pay cash for these items. √  The National Credit Act requires consumers to pay a deposit √ when credit purchases are made. √  The customer can take the products home √ and start paying monthly in instalments/over an agreed period of time. √  The business owner is entitled to charge interest, √ not exceeding prescribed rates, because he/she has to wait for payment. √  The customer becomes the owner of the products √ once the last payment has been made. √  Any other relevant answer related to the discussion of credit agreement. NOTE: Mark the first THREE (3) only Sub-max. (6) Identification (2) Discussion (4) Max. (3 x 6) (18) 5.4.5 Legal requirements of contracts  Parties must be of legal age and of sound mind (have contractual capacity). √√  There must be an agreement between the parties. √√  There must be an intention by both parties to enter into the contract. √√  The terms of the contract must be clear. √√  Conditions stated in the contract must be reasonable. √√  Parties must be able to comply with the conditions. √√  The agreement must be possible to perform. √√  The meeting must be free and voluntary. √√  The agreement must comply with the required formalities. √√  The agreement must be lawful. √√  Any other relevant answer related with the legal requirements of contracts. Max. (10) 5.5 Conclusion  Contracts are drawn up to satisfy two parties and are worded to avoid any misunderstanding later on. √√  Contracts are binding and are enforceable. √√  A SWOT analysis is a useful business aid to help you choose the best business options. √√  Any other relevant answer related to the conclusion of the legal requirements of contracts. Max. (2) [40] Copyright reserved Please turn over

(EC/NOVEMBER 2019) BUSINESS STUDIES P2 19 BREAKDOWN OF MARKS QUESTION 5 MARKS TOTAL Introduction 2 Definition of business opportunity 4 Protocol for conducting research 14 Employment contract 6 Insurance contract 6 Lease agreement 6 Credit agreement 6 Max. 32 Advice on the legal requirements of contracts 10 Conclusion 2 INSIGHT Layout 2 Analysis/Interpretation 2 8 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 Copyright reserved Please turn over

20 BUSINESS STUDIES P2 (EC/NOVEMBER 2019) QUESTION 6: BUSINESS ROLES 6.1 Introduction  Creative thinking means being able to think of new and original ideas. √  Businesses could use creative thinking techniques to solve business problems. √  Solving problems requires businesses to apply creative and critical thinking skills. √  Any other relevant answer related to the introduction of creative thinking. Max. (2) 6.2 Differences between problem-solving and decision-making DECISION-MAKING PROBLEM-SOLVING  Aimed at a choice between  Aimed at finding solutions to alternatives. √√ problems. √√  Alternatives are obvious. √√  Possible solutions are not obvious. √√  Normally done by one person. √√  Often done by a group of people. √√  Timeline with definite beginning  It is an ongoing process. √√ and ending. √√  It involves strategic decision. √√ Decision making is often part of the stages of problem solving. √√  Any other relevant answer  Any other relevant answer related to decision making. related to problem solving. Sub-max. (2) Sub-max. (2) 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 TWO (2) if the distinction is not clear. Mark either decision making or problem solving only. 6.3 Problem-solving cycle Identify the problem √√  Understand what the problem is by collecting as much information as possible. √ Sub-max. (3) Define the problem √√  Once you have an in-depth knowledge and understanding of the problem you need to generate a definition that is as concrete as possible. √ Sub-max. (3) Copyright reserved Please turn over

(EC/NOVEMBER 2019) BUSINESS STUDIES P2 21 Formulate a strategy √√  Think of various solutions to the problem considering the limitations available to you. √ Sub-max. (3) Allocate resources √√  You need to make sure that necessary equipment is available and is allocated to the right people. √ Sub-max. (3) Monitor problem-solving √√  Keep a careful watch on the implementation of the strategy. √ Sub-max. (3) Evaluate problem-solving √√  Work through the problem-solving cycle √ until the desired outcome is reached. √  Evaluate the entire process √ to see whether what you have done is right and which step needs improvement. √ Sub-max. (3) Heading (2) Explanation (1) Max. (16) 6.4 Problem-solving techniques 6.4.1 Delphi technique  The Delphi technique was originally conceived as a way to obtain the opinion of experts √ without necessarily bringing them together face-to-face. √  It is a procedure that uses a series √ of questionnaires. √  The purpose is to gain feedback √ from a variety of people √  Compare the feedback, √ so that the joint effort can give direction where there is no correct answer. √  These opinions are then shared amongst a group of experts √ for a set number of rounds. √  Until the group reaches consensus √ on the opinions expressed. √  Any other relevant answer related to the discussion of Delphi technique. Sub-max. (10) Copyright reserved Please turn over

22 BUSINESS STUDIES P2 (EC/NOVEMBER 2019) 6.4.2 Nominal group technique  This technique is used in teams to generate ideas √ on a particular subject. √  Team members are asked to silently come up with as many ideas as possible √ and to write these ideas down. √  Each member is then asked to share one idea, √ which is written down on a flipchart. √  No idea must be criticised √ during this stage √  When all the ideas are written down, √ the group looks at each idea separately. √  Each idea is then criticised √ and defended. √  The group then prioritise the ideas in order √ from most important to least important. √  Any other relevant answer related to the discussion of nominal group technique. Sub-max. (10) Max. (20) 6.5 Benefits of creative thinking  Better/unique ideas/unconventional ideas or solution is generated. √√  May give the business a competitive advantage. √√  Complex business problems may be solved. √√  Productivity may increase. √√  Leads to more positive attitudes. √√  Staff morale may improve. √√  Any other relevant answer related to benefits or advantages of creative thinking. Max. (6) 6.6 Conclusion  Constant changes in the market impact on business operations and so they need to adapt to them 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 answer related to the conclusion of creative thinking. Max. (2) Copyright reserved Please turn over

(EC/NOVEMBER 2019) BUSINESS STUDIES P2 23 BREAKDOWN MARKS QUESTION 6 MARKS TOTAL Introduction 2 Difference between decision-making and problem- 4 solving Problem-solving cycle 16 32 Problem-solving technique 20 Benefits of creative thinking 6 Conclusion 2 INSIGHT Layout 2 Analysis 2 8 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved Please turn over