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NATIONAL
SENIOR CERTIFICATE
GRADE 11
BUSINESS STUDIES P1
NOVEMBER EXAMINATION 2026 (MOCK)
MARKING GUIDELINES
MARKS: 150
These marking guidelines consist of 24 pages.
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Business Studies Grade 11 P1 November Mock Exam 2 2026 Memo
Grade 11 Business Studies Paper 1 memorandum from the November Mock Exam 2 2026 (English), 24 pages. Read online or download the free PDF.
Business Studies · Grade 11 · November Mock Exam 2 · 2026 · English. Memorandum, 24 pages. Read online or download the PDF.
- Subject
- Business Studies
- Grade
- Grade 11
- Language
- English
- Document type
- Memorandum
- Year
- 2026
- Exam period
- November Mock Exam 2
- Paper
- 1
- Publisher
- Hlayiso
- Curriculum
- CAPS
- Pages
- 24
- File size
- 182.2 KB
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Business Studies/P1 2 Hlayiso/Mock 2026
NSC – Marking Guidelines
NOTES TO MARKERS
These notes are provided to ensure fair, consistent and reliable marking of this mock
examination.
1. Candidates’ responses must be in full sentences for SECTIONS B and C, depending
on the nature of the question.
2. The marking guidelines are comprehensive but not exhaustive. Give credit to answers
that are correct but use a different expression, come from another credible source, are
original, or use a different approach. There is only ONE correct answer for each item in
SECTION A.
3. Where an answer is unclear or shows some understanding, award part-marks (e.g. one
mark instead of two).
4. The word ’Sub-max’ is used to allocate marks within a question or sub-question. The
word ’Max’ shows the maximum marks for the question; circle the subtotal on the
right-hand side as guided by ’Max’.
5. In an indirect question (scenario-based), the theory and the response must be relevant
and related to the question. Responses that must be quoted from a scenario receive
ONE mark each.
6. Do not give credit for repeated facts. Indicate repetition with an ’R’.
7. Cognitive verbs:
(a) Name, state, give, list, outline, quote, identify, motivate,
√√ recommend, suggest and
advise do not usually require much depth; the marks ( ) appear at the end of each
fact.
(b) Define, describe, explain, discuss, elaborate, distinguish, differentiate, analyse and
evaluate require a greater depth of√understanding; ticks are separated, e.g. ’Product
development is a √ growth strategy , where businesses introduce new products into
existing markets.’
8. Where a specific number of facts is required (e.g. ’any FOUR’), mark only the FIRST
responses up to that number and draw a line through the rest. Mark only the FIRST
answer where a question requires ONE answer.
9. Where the number of facts is specified for describe/discuss/explain questions in
SECTION B: fact (2 marks) and explanation (1 mark). In SECTION C the explanation
earns 2 marks.
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Business Studies/P1 3 Hlayiso/Mock 2026
NSC – Marking Guidelines
10. SECTION C: The breakdown of essay marks is as follows:
Introduction, Content, Conclusion Max 32
Insight 8
TOTAL 40
Insight (LASO) consists of the following components:
Layout/ Is there an introduction, a body with 2
Structure (L) paragraphs/sub-headings and a conclusion? The
words INTRODUCTION and CONCLUSION must be
stated and supported by an explanation.
Analysis and Can the candidate break down the question into 2
interpretation headings/sub-headings and interpret it correctly? All
(A) headings addressed: 1 mark. Interpretation (16 to 32
marks for facts): 1 mark.
Synthesis (S) Are relevant decisions/facts/responses made? Only 2
relevant facts in two or more sub-questions: 2 marks
(no ’-S’). Some irrelevant facts/only one sub-question
with relevant facts: 1 mark (one ’-S’). No relevant facts:
0 marks (two ’-S’).
Originality (O) Is there evidence of examples, based on recent 2
information/current trends and developments (not older
than two years), in any TWO of the four sub-questions?
TOTAL FOR INSIGHT 8
11. Indicate insight in the left-hand margin with a symbol (L, A, -S and/or O).
Mark all relevant facts until the SUB-MAX/MAX in a subsection is reached, write
SUB-MAX/MAX, but continue reading for originality (’O’). At the end of each essay
show the allocation as follows:
CONTENT MARKS
Facts 32 (max.)
L 2
A 2
S 2
O 2
TOTAL 40
12. No marks are awarded for content repeated from the introduction and conclusion.
Award TWO marks for complete sentences and ONE mark for phrases, incomplete
sentences and vague answers.
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Business Studies/P1 4 Hlayiso/Mock 2026
NSC – Marking Guidelines
SECTION A
QUESTION 1
√√
1.1 1.1.1 C
√√
1.1.2 B
√√
1.1.3 C
√√
1.1.4 C
√√
1.1.5 A
(5 x 2) (10)
√√
1.2 1.2.1 no
√√
1.2.2 market
√√
1.2.3 demographics
√√
1.2.4 loading
√√
1.2.5 networking
(5 x 2) (10)
√√
1.3 1.3.1 C
√√
1.3.2 E
√√
1.3.3 G
√√
1.3.4 D
√√
1.3.5 A
(5 x 2) (10)
[30]
BREAKDOWN OF MARKS
QUESTION 1 MARKS
1.1 10
1.2 10
1.3 10
TOTAL 30
TOTAL SECTION A: 30
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Business Studies/P1 5 Hlayiso/Mock 2026
NSC – Marking Guidelines
SECTION B
Mark the answers to the FIRST TWO questions only.
QUESTION 2: BUSINESS ENVIRONMENTS
2.1 Components of the micro environment
√
- Vision and mission statement
√
- Organisational culture
√
- Organisational resources (human, financial, physical, technological)
√
- Management and leadership
√
- Business functions
√
- Organisational structure
Any other relevant answer related to the components of the micro environment.
NOTE: Mark the first THREE (3) only.
(3 x 1) (3)
2.2 Functions of trade unions
- Negotiate with employers
√√ for better wages/salaries and working conditions for
their members.
√√
- Represent employees during disciplinary hearings/grievances/disputes.
√√
- Protect employees against unfair dismissal/unfair labour practices.
√√
- Take part in collective bargaining with employers/employer organisations.
√√
- Organise legal strikes/protest actions when negotiations fail.
√√
- Promote the health and safety of employees in the workplace.
√√
- Keep members informed about labour laws and their rights.
- Influence labour
√√ legislation/economic policy through bodies such as
NEDLAC.
√√
- Provide benefits to members, e.g. funeral cover/bursaries/legal aid.
Any other relevant answer related to the functions of trade unions.
Max (6)
Copyright reserved Please turn over
Business Studies/P1 6 Hlayiso/Mock 2026
NSC – Marking Guidelines
2.3 2.3.1 and 2.3.2: Challenges, business environments and extent of control
CHALLENGES (2.3.1) BUSINESS EXTENT OF
ENVIRONMENT CONTROL (2.3.2)
(2.3.2)
√ √
1. Several packers often arrive late Micro Full control
and ignore the
√ instructions of their
supervisors.
√
2. A new business from Mbombela Market Limited/Partial
√
sells dried mangoes at lower prices control
to the same
√ supermarkets that KAP
supplies.
√ √
3. The government increased the Macro No control
national minimum wage for farm
and packhouse workers, which
√
raised KAP’s labour costs.
Sub-max (3) Sub-max (3) Sub-max (3)
NOTE: 1. Mark the first THREE (3) challenges only.
2. Award marks for the challenges even if the quotes are incomplete.
3. Award marks for the environment and extent of control only if they
match the challenge quoted.
4. Accept some/little/limited/partial control for the market environment.
(3 + 6) (9)
2.4 Purpose of the Labour Relations Act (LRA)
√ √
- Promotes fair labour practices between employers and employees.
√
- Gives effect to the right of employees
√ to join trade unions and of employers to
join employer organisations.
√
- Provides a framework
√ for collective bargaining between trade unions and
employers.
√ √
- Regulates the right to strike and the right of employers to use lock-outs.
- Establishes
√ the Commission for Conciliation,
√ Mediation and Arbitration
(CCMA) to resolve labour disputes.
√
- Provides for the establishment of√bargaining councils/workplace forums to
promote employee participation.
√ √
- Protects employees against unfair dismissal.
√
- Provides for
√ Labour Courts and the Labour Appeal Court to settle labour
disputes.
√ √
- Promotes labour peace and orderly collective bargaining.
Any other relevant answer related to the purpose of the LRA.
Max (6)
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Business Studies/P1 7 Hlayiso/Mock 2026
NSC – Marking Guidelines
2.5 Socio-economic issues
√√
2.5.1 Corruption/Bribery/Unethical business practice
(2)
√√
2.5.2 Illiteracy/Lack of skills
(2)
√√
2.5.3 Money laundering
(2)
2.6 Link between the primary, secondary and tertiary sectors
√
- The primary sector extracts raw√materials from nature, e.g.
farming/mining/fishing/forestry.
√
- The secondary sector depends √ on the primary sector for raw materials to
manufacture finished products.
√
- The secondary sector turns raw materials into finished/semi-finished
√ products ,
e.g. a sugar mill processes sugar cane into sugar.
√
- The tertiary sector provides services √such as transport/banking/insurance/retail
to the primary and secondary sectors.
√
- The tertiary sector √distributes the finished products from the secondary sector
to the consumers.
√
- The sectors
√ are interdependent ; a problem in one sector affects the other
sectors.
- E.g. a farmer (primary) sells wheat to a mill/bakery (secondary), and the bread is
√√
transported and sold by a supermarket (tertiary).
Any other relevant answer related to the link between the primary, secondary and
tertiary sectors.
NOTE: Award a maximum of TWO (2) marks if only the three sectors are
described without showing the link between them.
Max (6)
2.7 Ways in which businesses can overcome competition in the market
√√
- Improve the quality of products/services.
√√
- Offer better/after-sales service to customers.
√√
- Lower prices/offer discounts where possible without reducing quality.
√√
- Use effective advertising/sales promotions to attract customers.
√√
- Develop new/unique products to differentiate the business from competitors.
√√
- Conduct market research to understand the needs of customers.
√√
- Build customer loyalty through loyalty programmes/rewards.
√√
- Form strategic alliances/merge with other businesses.
√√
- Train employees to improve productivity and service.
Any other relevant answer related to ways to overcome competition in the market.
Max (4)
[40]
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Business Studies/P1 8 Hlayiso/Mock 2026
NSC – Marking Guidelines
BREAKDOWN OF MARKS
QUESTION 2 MARKS
2.1 3
2.2 6
2.3 9
2.4 6
2.5.1 2
2.5.2 2
2.5.3 2
2.6 6
2.7 4
TOTAL 40
QUESTION 3: BUSINESS OPERATIONS
3.1 Marketing activities
√
- Buying
√
- Selling
√
- Transport/Distribution
√
- Storage
√
- Financing
√
- Risk bearing
√
- Standardisation and grading
√
- Market research/information
√
- Product development
Any other relevant answer related to marketing activities.
NOTE: Mark the first FOUR (4) only.
(4 x 1) (4)
3.2 Role of intermediaries in the distribution process
√√
- Buy products in bulk from manufacturers and sell them in smaller quantities.
√√
- Make products available at places that are convenient for consumers.
√√
- Store/Keep stock until consumers need the products.
√√
- Transport products from manufacturers to consumers.
√√
- Provide information/feedback about consumer needs to manufacturers.
√√
- Promote/Advertise the products of the manufacturer.
√√
- Bear some of the risk of damage/theft/products not being sold.
√√
- Offer credit to customers/other intermediaries.
Any other relevant answer related to the role of intermediaries.
Max (4)
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Business Studies/P1 9 Hlayiso/Mock 2026
NSC – Marking Guidelines
3.3 Pricing techniques
√√
3.3.1 Discount/Markdown/Promotional pricing
(2)
√√
3.3.2 Price skimming/Skimming pricing
(2)
3.4 Production control and safety
3.4.1 Aspects of production control applied by SB
- The production
√ manager sets a target of 4 000 loaves of bread for each
shift.
- At the end of every shift the
√ supervisor counts the loaves and compares
the output with the target.
- SB moved part of the order to the√night shift so that the supermarkets
still received their bread on time.
NOTE: 1. Mark the first TWO (2) only.
2. Only award marks for responses quoted from the scenario.
(2 x 1) (2)
3.4.2 Precautionary measures when handling machinery
√√
- Train employees to use the ovens/mixers/machinery correctly.
- Provide√√protective clothing, e.g. heat-resistant gloves/aprons/safety
shoes.
√√
- Service and maintain machinery regularly.
√√
- Display safety instructions/warning signs next to the machines.
√√
- Install safety guards/emergency stop buttons on machines.
√√
- Switch off/unplug machines before cleaning or repairing them.
√√
- Only trained/authorised employees may operate the machines.
- Provide
√√fire extinguishers and first-aid kits, and train employees in their
use.
√√
- Keep the area around the machines clean and free of obstacles.
Any other relevant answer related to precautionary measures when
handling machinery.
Max (4)
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Business Studies/P1 10 Hlayiso/Mock 2026
NSC – Marking Guidelines
3.5 Total quality management (TQM) as part of the quality management system
√
- TQM is an integrated√system that involves all employees and all departments
in improving quality.
√ √
- Every employee is responsible for the quality of his/her own work.
√ √
- Focuses on continuous improvement of products, services and processes.
√ √
- Aims to satisfy/exceed the needs and expectations of customers.
√
- Management√ is committed to quality and leads the quality improvement
process.
√ √
- Employees are trained to improve their skills and the quality of their work.
√ √
- Uses quality circles/teamwork to identify and solve quality problems.
√
- Quality√is built into every stage of production , which reduces waste and
costs.
Any other relevant answer related to TQM as part of the quality management
system.
Max (6)
3.6 Recruitment
3.6.1 Recruitment method used by MA
√√
External recruitment
Motivation
- MA placed√an advertisement in a regional newspaper and on an online
job portal.
√
- It also asked a recruitment agency to find suitable candidates.
NOTE: 1. Mark the first quote only.
2. Award marks for the method even if the quote is incomplete.
3. Do not award marks for the motivation if the method was
incorrectly identified.
(2 + 1) (3)
3.6.2 Recruitment procedure
√
- Identify the√vacancy and decide whether to fill it internally or
externally.
√
- Do a job analysis
√ to draw up the job description and job
specification.
√
- Decide on the recruitment sources/media
√ , e.g.
newspapers/websites/agencies.
√
- Draw up an advertisement √ with the job title, duties, requirements,
salary and closing date.
√ √
- Place the advertisement in the selected media.
√ √
- Applicants send CVs/application forms before the closing date.
√ √
- Keep a record of all applications received for the selection process.
Any other relevant answer related to the recruitment procedure.
NOTE: The steps do not have to be in sequence.
Max (6)
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Business Studies/P1 11 Hlayiso/Mock 2026
NSC – Marking Guidelines
3.7 Difference between piecemeal and time-related salary determination
PIECEMEAL TIME-RELATED
Employees are paid according
√ to the Employees
√ are paid according to the
number of√units/items that they time spent at work, e.g.√ per
produce. hour/day/week/month.
√
Encourages
√ employees√to work Employees earn the same√amount
faster to earn more. regardless of their output.
√ √
Quality may suffer because√ Employees may work slowly , √ as
employees focus on quantity. payment is not linked to output.
Used in factories/agriculture,
√√e.g. Used for most permanent employees,
√√
sewing shirts/picking fruit. e.g. teachers/receptionists.
Sub-max (2) Sub-max (2)
Any other relevant answer related to the difference between piecemeal and
time-related salary determination.
NOTE: 1. The answer does not have to be in tabular format.
2. The difference must be clear.
3. Award a maximum of TWO (2) marks if the difference is not clear/only
one method is explained.
Max (4)
3.8 Employee benefits
√
- Unemployment Insurance Fund (UIF)
√
- Compensation Fund (COIDA)
√
- Pension/Provident fund
√
- Medical aid
√
- Housing/Home-owner’s allowance
√
- Travel/Car allowance
√
- Funeral benefits/Group life insurance
√
- Bonuses/Thirteenth cheque
Any other relevant answer related to employee benefits.
NOTE: Mark the first THREE (3) only.
(3 x 1) (3)
[40]
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Business Studies/P1 12 Hlayiso/Mock 2026
NSC – Marking Guidelines
BREAKDOWN OF MARKS
QUESTION 3 MARKS
3.1 4
3.2 4
3.3.1 2
3.3.2 2
3.4.1 2
3.4.2 4
3.5 6
3.6.1 3
3.6.2 6
3.7 4
3.8 3
TOTAL 40
QUESTION 4: MISCELLANEOUS TOPICS
BUSINESS ENVIRONMENTS
4.1 Examples of contemporary legislation
√
- Labour Relations Act (LRA)
√
- Basic Conditions of Employment Act (BCEA)
√
- Employment Equity Act (EEA)
√
- Skills Development Act (SDA)
√
- Occupational Health and Safety Act (OHSA)
√
- Compensation for Occupational Injuries and Diseases Act (COIDA)
√
- Unemployment Insurance Act (UIA)
√
- Consumer Protection Act (CPA)
√
- National Credit Act (NCA)
√
- Broad-Based Black Economic Empowerment Act (B-BBEE)
Any other relevant answer related to contemporary legislation.
NOTE: Mark the first TWO (2) only.
(2 x 1) (2)
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Business Studies/P1 13 Hlayiso/Mock 2026
NSC – Marking Guidelines
4.2 Solutions to piracy
SOLUTIONS TO MOTIVATIONS
PIRACY
√√
1. Patent TWF registered its new filter invention with the
CIPC, so that no other√business may make, use
4.2.1 or sell it for 20 years.
√√
2. Trademark TWF also registered its name and blue raindrop
logo so that
√ customers can easily recognise its
products.
Sub-max (4) Sub-max (2)
NOTE: 1. Mark the first TWO (2) only.
2. Award marks for the solutions even if the quotes are
incomplete.
3. Do not award marks for the motivation if the solution was
incorrectly identified.
Max (6)
4.3 Difference between a strike and a go-slow
STRIKE GO-SLOW
√
Employees
√ collectively refuse to Employees continue working, but √
work to force √the employer to meet deliberately work slower than usual.
their demands.
√ √ √
Production stops completely. Production
√ continues at a lower
rate.
√
A protected strike
√ must follow the LRA
√ A go-slow is not a protected strike
procedures, e.g. a strike notice. and employees
√ may face disciplinary
action.
√
Employees are not paid for √ the days Employees
√ usually still receive their √
on strike (no work, no pay). wages, although less work is done.
Sub-max (2) Sub-max (2)
Any other relevant answer related to the difference between a strike and a go-slow.
NOTE: 1. The answer does not have to be in tabular format.
2. The difference must be clear.
Max (4)
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Business Studies/P1 14 Hlayiso/Mock 2026
NSC – Marking Guidelines
4.4 Benefits of being involved in the macro environment
√ √
- Businesses can influence government policies/legislation in their favour.
√ √
- They are informed early about changes in laws/economic conditions.
√ √
- They can plan ahead to reduce the negative impact of macro challenges.
√
- Social responsibility
√ projects improve the image of the business and attract
customers.
√
- Businesses may receive √ government incentives/tenders/tax benefits for
community involvement.
√
- Investing in
√ the community creates a skilled workforce/stable market for the
business.
√
- Involvement
√ in other countries/exports opens new markets and increases
sales.
Any other relevant answer related to the benefits of being involved in the macro
environment.
Max (4)
4.5 Information management as a way of adapting to challenges
√
- Businesses gather
√ relevant, up-to-date information about changes in their
environments.
√
- Information is used to identify challenges/opportunities
√ early so that the
business can respond quickly.
√
- Businesses invest √in information technology/systems to store, process and
share information.
√
- Market research provides information
√ on the changing needs of customers and
the actions of competitors.
√ √
- Information must be communicated to the decision-makers in the business.
√
- Good information
√ management leads to better decisions and strategic
planning.
Any other relevant answer related to information management as a way of adapting.
Max (4)
BUSINESS OPERATIONS
4.6 Categories of consumer goods
√√
4.6.1 Convenience goods
(2)
√√
4.6.2 Unsought goods
(2)
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Business Studies/P1 15 Hlayiso/Mock 2026
NSC – Marking Guidelines
4.7 Difference between quality control and quality assurance
QUALITY CONTROL QUALITY ASSURANCE
√
Inspection of the final product to Checks are carried out √
during and after
check that it√meets the required the production process
√ to ensure that
standards. standards are met.
√ √
Defects are found√ after the product Aims to prevent defects/mistakes
√
has been made. before they occur.
Usually done by inspectors/the
√√ quality All employees are responsible
√√ for
control department. quality at every stage.
Sub-max (2) Sub-max (2)
Any other relevant answer related to the difference between quality control and
quality assurance.
NOTE: 1. The answer does not have to be in tabular format.
2. The difference must be clear.
Max (4)
4.8 Human resources activities
√√
4.8.1 Placement
NOTE: Do not accept selection/recruitment/induction.
(2)
4.8.2 Selection procedure
√√
- Receive all applications/CVs and sort them.
- Screen the applications
√√ against the job specification/minimum
requirements.
√√
- Draw up a shortlist of suitable candidates.
- Check the references/qualifications/criminal
√√ record of shortlisted
candidates.
- Conduct√√preliminary interviews/tests, e.g. skills/aptitude/practical
tests.
√√
- Invite the shortlisted candidates for an interview.
√√
- Conduct medical examinations where required by the job.
- Choose the most
√√ suitable candidate and make a written offer of
employment.
√√
- Inform unsuccessful candidates of the outcome.
Any other relevant answer related to the selection procedure.
NOTE: The steps do not have to be in sequence.
Max (6)
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Business Studies/P1 16 Hlayiso/Mock 2026
NSC – Marking Guidelines
4.9 Ways in which businesses can comply with the BCEA
√√
- Do not allow employees to work more than 45 ordinary hours per week.
- Pay√√overtime at the correct rate, i.e. 1.5 times the normal wage/agreed time
off.
- Give employees at least 21√√ consecutive days of annual leave per year/one day
for every 17 days worked.
√√
- Allow employees sick leave of 30 days in a three-year cycle.
√√
- Grant at least four consecutive months of maternity leave.
- Grant family responsibility
√√ leave, e.g. when a child is born/ill or a close family
member dies.
- Give employees
√√ a meal interval of at least one hour after five hours of continuous
work.
√√
- Pay double the normal wage for work on a Sunday/public holiday.
- Give employees
√√ written particulars of employment/a contract when they start
working.
√√
- Give the correct notice period before termination of employment.
√√
- Do not employ children under the age of 15.
√√
- Keep records of the working hours and remuneration of each employee.
Any other relevant answer related to ways to comply with the BCEA.
Max (4)
[40]
BREAKDOWN OF MARKS
QUESTION 4 MARKS
4.1 2
4.2.1 6
4.3 4
4.4 4
4.5 4
4.6.1 2
4.6.2 2
4.7 4
4.8.1 2
4.8.2 6
4.9 4
TOTAL 40
TOTAL SECTION B: 80
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Business Studies/P1 17 Hlayiso/Mock 2026
NSC – Marking Guidelines
SECTION C
Mark the answer to the FIRST question only.
QUESTION 5: BUSINESS ENVIRONMENTS (ADAPTING TO CHALLENGES OF THE
BUSINESS ENVIRONMENTS)
5.1 Introduction
- Businesses√ lobby to influence the decisions and policies that affect their
industry.
√
- Businesses form power relationships to strengthen their position in the market.
- Lobbying allows businesses
√ to influence the decisions of
government/authorities.
- Businesses √can have a direct influence on the business environment to reduce
challenges.
Any other relevant answer related to reasons for lobbying/power relationships/types
of lobbying/direct influence on the environment.
Any (2 x 1) (2)
5.2 Reasons why businesses lobby
- To influence government
√√ legislation/policies in favour of the
business/industry.
- To√√protect the interests of the industry against laws/regulations that may harm
it.
- To obtain√√favourable tariffs/import duties, e.g. protection against cheap
imports.
- To get early √√
knowledge of changes in legislation/policy so that the business can
plan ahead.
√√
- To obtain government support/incentives/subsidies/tenders.
√√
- To create awareness of the problems/challenges that the industry faces.
√√
- To build relationships with decision-makers/government representatives.
- To reduce√√ the negative impact of macro environment challenges on the
business.
Any other relevant answer related to the reasons why businesses lobby.
Max (8)
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NSC – Marking Guidelines
5.3 Ways in which businesses can form power relationships
Strategic alliance agreements
√
- Two or more √ businesses agree to work together to achieve common
objectives.
√
- The businesses remain separate/independent
√ but share
resources/expertise/costs.
√
- Allows businesses
√ to compete with larger competitors and to enter new
markets.
√√
- E.g. a bank and a retailer agree that customers may withdraw cash at the tills.
Any other relevant answer related to strategic alliance agreements.
Sub-max (4)
Persuasion of large investors
√ √
- Businesses persuade large investors/shareholders to invest in the business.
√
- Large investors may be invited to serve on the board
√ of directors , giving the
business access to their expertise and contacts.
√
- Investors
√ with influence can help the business to obtain credit/finance more
easily.
√ √
- The business gains credibility/power in the market.
Any other relevant answer related to persuasion of large investors.
Sub-max (4)
Influencing government representatives
√
- Businesses build good relationships
√ with government
officials/representatives.
√
- They present their views/needs
√ when government drafts new
policies/legislation.
√
- Businesses can√influence decisions that favour their industry, e.g. tariffs on
cheap imports.
√
- Businesses √ may serve on government advisory bodies/forums, e.g.
NEDLAC.
Any other relevant answer related to influencing government representatives.
Sub-max (4)
Max (12)
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NSC – Marking Guidelines
5.4 Types of lobbying
Hedging against inflation
√
- Businesses √ put pressure on the government/SARB to keep inflation/interest
rates low.
√
- Businesses invest in assets that keep √their value, e.g. property/shares, to
protect themselves against inflation.
Bargaining sessions between management and trade unions
√
- Management and trade unions √ negotiate to reach agreements on
wages/working conditions.
√ √
- This helps to avoid strikes/conflict and promotes labour peace.
Influencing supervisory bodies/regulators
√
- Businesses try to influence √ regulators to make rules/decisions that are
favourable to their industry.
√
- E.g. the mining
√ industry lobbies the regulator on new safety/environmental
regulations.
Influencing large consumers
√
- Businesses √ try to influence large consumers/buyers to support their
products.
√ √
- E.g. offering bulk discounts/long-term contracts to secure large orders.
Influencing company representatives/managers
√
- Businesses try to influence √ the representatives/managers of other businesses
to support their interests.
Any other relevant answer related to the types of lobbying.
NOTE: Mark the first THREE (3) types of lobbying only. Sub-max (4) for each
type.
Max (12)
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5.5 Ways in which businesses can have a direct influence on the business
environment
√
- Businesses can influence the micro
√ environment by changing their
management/structure/policies.
√ √
- They can influence customers through advertising/promotions/good service.
√ √
- They can negotiate with suppliers to obtain better prices/terms.
√
- They can √respond to competitors by improving quality/developing new
products.
√
- They can
√ form strategic alliances/mergers/takeovers to increase their market
power.
√ √
- They can lobby/network to influence decision-makers.
√
- They can undertake √ social responsibility projects to build good relationships
with communities.
√
- They can √conduct research and development to adapt to technological
changes.
Any other relevant answer related to ways in which businesses can have a direct
influence on the business environment.
Max (8)
5.6 Conclusion
- Lobbying protects
√√ the interests of businesses and their industry when decisions
are made.
- Power relationships
√√ and lobbying enable businesses to influence decisions that
affect them.
- Businesses √√that influence their environments directly are better able to survive
challenges.
Any other relevant answer related to reasons for lobbying/power relationships/types
of lobbying/direct influence on the environment.
Any (1 x 2) (2)
[40]
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Business Studies/P1 21 Hlayiso/Mock 2026
NSC – Marking Guidelines
QUESTION 5: BREAKDOWN OF MARK ALLOCATION
DETAILS MAXIMUM TOTAL
Introduction 2
Reasons why businesses lobby 8
Ways to form power relationships 12
Max 32
Types of lobbying 12
Direct influence on the business 8
environment
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.
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NSC – Marking Guidelines
QUESTION 6: BUSINESS OPERATIONS (MARKETING FUNCTION)
6.1 Introduction
- Product development
√ helps businesses to meet the changing needs of
customers.
√
- Packaging protects products and attracts the attention of customers.
√
- Many internal and external factors influence the price of a product.
- Businesses
√ use different pricing techniques to attract customers and make a
profit.
Any other relevant answer related to product development/types of
packaging/factors influencing pricing/pricing techniques.
Any (2 x 1) (2)
6.2 Importance of product development
√√
- Meets the changing needs/tastes of customers.
√√
- Helps the business to stay ahead of/compete with competitors.
√√
- Increases sales and market share.
√√
- Replaces products that are in the decline stage of the product life cycle.
√√
- Allows the business to enter new markets/attract new customers.
√√
- Makes use of new technology/materials to improve products.
√√
- Spreads risk, as the business does not depend on one product.
√√
- Improves the image of the business as an innovative business.
Any other relevant answer related to the importance of product development.
Max (8)
6.3 Types of packaging
Speciality packaging
√
- Used for expensive/luxury/exclusive
√ products , e.g.
jewellery/perfume/watches.
√ √
- The packaging is attractive/of high quality and adds value to the product.
√ √
- Gift wrapping/special boxes are used for special occasions.
Any other relevant answer related to speciality packaging.
Sub-max (4)
Kaleidoscopic packaging
√
- The design/appearance
√ of the packaging changes regularly to keep customers
interested.
√
- Often linked
√ to special events/seasons, e.g. sports tournaments/festive
season.
√ √
- Encourages customers to collect the different designs.
Any other relevant answer related to kaleidoscopic packaging.
Sub-max (4)
Combination packaging
√ √
- Two or more products are packaged together and sold as one unit.
√ √
- E.g. shampoo and conditioner/toothpaste and a toothbrush in one pack.
√
- Encourages customers to buy/try new products together with familiar
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NSC – Marking Guidelines
√
products.
Any other relevant answer related to combination packaging.
Sub-max (4)
Max (12)
6.4 Factors that influence pricing
√
- Production/Input
√ costs : the price must cover all costs of making and selling the
product.
√ √
- Demand : higher demand allows the business to charge higher prices.
√ √
- Competition : prices must be in line with the prices of competitors.
√
- Mark-up/Profit
√ required : the business adds a percentage to cost to make a
profit.
√
- Target √market : the income levels of customers determine what they can
afford.
√
- Economic √ conditions , e.g. inflation/interest rates affect costs and spending
power.
√ √
- Government regulations , e.g. VAT/price controls/levies.
√ √
- Stage of the product life cycle , e.g. new products may be priced high or low.
√ √
- Image/Quality of the product : prestige products may carry higher prices.
Any other relevant answer related to factors that influence pricing.
Max (10)
6.5 Pricing techniques
Cost-based pricing
√
- The price is determined
√ by adding a mark-up/profit percentage to the cost of
the product.
√ √
- The business must calculate all its costs (fixed and variable) accurately.
√ √
- Ensures that all costs are covered and a profit is made.
√
- It may√result in prices that are higher than those of competitors if costs are
high.
Any other relevant answer related to cost-based pricing.
Sub-max (4)
Competition-based pricing
√ √
- Prices are set according to the prices charged by competitors.
√
- The business may charge
√ the same as, slightly below or slightly above the
competitors’ prices.
√ √
- Used in markets with many competitors selling similar products.
√ √
- The business must control its costs to make a profit at the market price.
Any other relevant answer related to competition-based pricing.
Sub-max (4)
Psychological pricing
√ √
- Prices are set to appeal to the emotions/perceptions of customers.
√ √
- E.g. R99,99 instead of R100 makes the product seem cheaper.
√ √
- High prices may be set for prestige products to create an image of quality.
√ √
- Encourages impulse buying and increases sales.
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Any other relevant answer related to psychological pricing.
Sub-max (4)
Max (12)
6.6 Conclusion
√√
- Product development keeps the business competitive and relevant.
√√
- The right type of packaging attracts customers and adds value to products.
- Businesses must consider
√√ all factors that influence pricing and choose suitable
pricing techniques.
Any other relevant answer related to product development/types of
packaging/factors influencing pricing/pricing techniques.
Any (1 x 2) (2)
[40]
QUESTION 6: BREAKDOWN OF MARK ALLOCATION
DETAILS MAXIMUM TOTAL
Introduction 2
Importance of product development 8
Types of packaging 12
Max 32
Factors that influence pricing 10
Pricing techniques 12
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: 40
GRAND TOTAL: 150
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