Business Studies Grade 12 P1 Western Cape November 2022 Memo

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. com WESTERN CAPE EDUCATION DEPARTMENT GRADE 12 BUSINESS STUDIES PREPARATORY EXAMINATION PAPER 1 2022 MARKS: 150 TIME: 2 HOURS This question paper consists of 9 pages.

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 INSTRUCTIONS AND INFORMATION Read the following instructions carefully before answering the questions. 1. This question paper consists of THREE sections and covers TWO main topics SECTION A: COMPULSORY for all the candidates. SECTION B: Consists of THREE questions. Answer any TWO of the three questions in this section. SECTION C: Consists of TWO questions. Answer ONE of the two questions in this section. 2. Read the instructions for each question and take careful note of what is required. Note that only the first TWO questions in SECTION B and the FIRST question in SECTION C will be marked. 3. Number the answers correctly according to the numbering system used in this question paper. NO marks will be awarded for incorrectly numbered answers. 4. Except where other instructions are given, answers must be in FULL SENTENCES. 5. Use the mark allocation and nature of each question to determine the length and depth of an answer. 6. Use the table below as a guide for mark and time allocation when answering each question. TIME SECTION QUESTION MARKS (minutes) A: Objective type of questions 1 30 20 COMPULSORY B: THREE direct / indirect types of 2 40 35 questions 3 40 35 CHOICE: Answer any TWO 4 40 35 C: TWO essay type questions 5 40 30 CHOICE: Answer any ONE. 6 40 30 TOTAL 150 120 minutes 7. Start the answer to EACH question on a NEW page, for example QUESTION 1 - new page, QUESTION 2 - new page 8. You may use a non-programmable calculator. 9. Write neatly and legibly. 10. Use a BLUE / BLACK pen. Copyright reserved 2 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 SECTION A - COMPULSORY QUESTION 1 1.1 Various options are given as possible answers to the following questions. Choose the answer and write only the letter (A ‒ D) next to the question numbers (1.1.1 to 1.1.5) in the ANSWER BOOK, e.g. 1.1.6 D 1.1.1 A/An … agreement includes practical work experience that can lead to a recognised occupational qualification. A. human resource development strategy B. internship C. learnership D. national skills development strategy 1.1.2 Dolby Ltd adds new products that are unrelated to existing products which may appeal to new groups of customers. This strategy is known as … diversification. A. concentric B. conglomerate C. divestiture D. horizontal 1.1.3 Pearson Finance (Pty)Ltd operates in the … sector as they specialise in offering financial services. A. informal B. primary C. secondary D. tertiary 1.1.4 Bergsig Construction uses modern production technology to ensure their products are in line with the latest innovations. It is an example of … as an TQM element A. continuous skills development B. adequate financing and capacity C. monitoring and evaluation of quality processes D. continuous improvement of processes and systems 1.1.5 The purpose of an interview is to… A. evaluate the skills and personal characteristics of the applicant B. avoid asking of discriminative type of questions C. prepare the venue for the interview D. invite possible candidates to apply for the vacant post (5 x 2) (10) Copyright reserved 3 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 1.2 Complete the following statements by using the word(s) provided in the list below. Write only the word(s) next to the question numbers (1.2.1 to 1.2.5) in the ANSWER BOOK time-related; PESTLE; unemployment insurance; 45; internal; piecemeal; SWOT; external; 60; housing allowance 1.2.1 Workers may not work more than … hours per week. 1.2.2 Berry Fruit Farms compiled a … analysis to identify challenges that internal and external factors posed to their business. 1.2.3 Amanda is entitled to... as a compulsory benefit. 1.2.4 Steel Welding used the … salary determination method when they paid Anele according to the number of items he produced. 1.2.5 The process of obtaining potential candidates from outside the company is called... recruitment. (5 x 2) (10) Copyright reserved 4 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 1.3 Choose a term from COLUMN A that matches the description in COLUMN B. Write only the letter (A – J) next to the question number (1.3.1 to 1.3.5) in the answer book, e.g. 1.3.6 K COLUMN A COLUMN B A. is a benefit provided by the business in 1.3.1 Rights of employees addition to a salary 1.3.2 Porters Five Forces model B. may form bargaining council for collective bargaining purposes 1.3.3 Screening C. refers to the ability of a product/service 1.3.4 Fringe benefit to satisfy the needs of consumers 1.3.5 Quality D. allows businesses to analyse the challenges in the macro-environment E. attempts to invite candidates to attend the interview F. refers to the control carried out during and after the production process G. may refer unresolved workplace disputes to the CCMA H. is a mandatory benefit required by law. I. allows businesses to analyse their position in the market J. attempts to eliminate unsuitable applicants (5 x 2) (10) TOTAL SECTION A: [30] Copyright reserved 5 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 SECTION B Answer ANY TWO questions in this section. NOTE: Clearly indicate the QUESTION NUMBER of each question you select. The answer to EACH question must start on a NEW page, e.g. QUESTION 2 on a NEW page, QUESTION 3 on a NEW page. QUESTION 2: BUSINESS ENVIRONMENTS 2.1 Name any FOUR rights of consumers in terms of the NCA. (4) 2.2 Outline how SETAs are funded. (4) 2.3 Read the scenario below and answer the questions that follow. MAMELA STATIONERS (MS) Mamela Stationers specialises in selling stationery. MS decided to merge with Mandla Bookstores in East London. that also sells stationery, to expand their business and to increase market share. 2.3.1 Identify the type of integration strategy used by Mamela Stationers in the scenario above. (2) 2.3.2 Explain the advantages of diversification strategies. (4) 2.4 Discuss the strategic management process. (6) 2.5 Read the scenario below and answer the questions that follow: PAPER FACTORY (PF) Paper Factory is a large paper manufacturing business that employs many employees. They refused to accept a valid medical certificate of a sick worker. 2.5.1 Identify the Act that is being violated by PF in the scenario above. (2) 2.5.2 Discuss other actions that may be considered non-compliance with the Act identified in QUESTION 2.5.1 (4) 2.6 Explain how the following PESTLE elements/factors may pose challenges to businesses: 2.6.1 Environmental (4) 2.6.2 Technological (4) 2.7 Recommend practical ways in which businesses may comply with the Employment Equity Act, (EEA) 1998 (Act 55 of 1998). (6) [40] Copyright reserved 6 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 QUESTION 3: BUSINESS OPERATIONS 3.1 Name any TWO sources of internal recruitment. (2) 3.2 Outline the quality indicators of the marketing function. (4) 3.3 Define placement as a human resources activity. (4) 3.4 Read the scenario below and answer the questions that follow: GEORGE NURSERY (GN) George Nursery (GN) expanded by starting a coffee shop as part of the nursery. The human resources department has identified a positio for an administrative assistant. The position will be advertised in the local newspaper to recruit suitable applicants. 3.4.1 Quote TWO steps of the recruitment procedure from the scenario above. (2) 3.4.2 Explain the role of the interviewee/applicant during the interview. (6) 3.5 Discuss the impact of internal recruitment on businesses. (6) 3.6 Read the scenario below and answer the questions that follow: ANCHOR MANUFACTURERS (AM) A number of regular customers of Anchor Manufacturers (AV) cancelled their orders because they claim that they no longer receive high quality products. In response, a group of AV employees made suggestions to management about how and what should be done to improve the quality processes and systems. AV must assess and determine whether the changes are working and if everything are going according to plan. 3.6.1 Identify TWO steps of the PDCA-model that Anchor Manufacturers applied. Motivate your answers by quoting from the scenario above. (6) Use the table below as a GUIDE to answer QUESTION 3.6.1. PDCA STEPS MOTIVATION 1. 2. 3.6.2 Explain the importance of quality circles as part of the continuous improvement of processes and systems in a business. (4) 3.7 Advise businesses on the impact of TQM if it is poorly implemented. (6) [40] Copyright reserved 7 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 QUESTION 4: MISCELLANEOUS TOPICS BUSINESS ENVIRONMENTS 4.1 Name any TWO types of intensive strategies. (2) 4.2 Identify the force of Porter’s Five Forces model that applies to Bobby’s Barbershop in EACH statement below: 4.2.1 A new barbershop, Billy's Barbershop Boutique, offering services at lower prices than Bobby's Hairdresser. opened. 4.2.2 Bobby’s Barbershop only needed a small amount of capital to start with business. (4) 4.3 List TWO business environments and state the extent of control that businesses have over EACH environment. (4) Use the table below as a GUIDE to answer QUESTION 4.3. BUSINESS ENVIRONMENTS EXTENT OF CONTROL 1. 2. 4.4 Discuss TWO types of defensive strategies. (6) 4.5 Advise businesses on the consequences for non-compliance with COIDA. (4) BUSINESS OPERATIONS 4.6 Name any TWO aspects of an employment contract. (2) 4.7 Read the scenario below and answer the questions that follow. BIG BANG TRADERS (BBT) Big Bang Traders has hired two new employees. The employees must complete an induction program of 10 days. The management took the employees on a tour of the premises. The employees were also introduced to their colleagues and supervisors. 4.7.1 Quote TWO aspects of the induction program from the scenario above. (2) 4.7.2 Discuss the benefits of induction for businesses. (6) 4.8 Explain the reasons for terminating an employment contract. (4) 4.9 Advise businesses how quality of performance can contribute to the success of the administration function. (6) [40] TOTAL SECTION B: [80] Copyright reserved 8 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 SECTION C Answer ONE question in this section. NOTE: Clearly indicate the QUESTION NUMBER of each question you select. The answer to EACH question must start on a NEW page, for example QUESTION 5 on a NEW page or QUESTION 6 on a NEW page. QUESTION 5: BUSINESS ENVIRONMENTS (LEGISLATION) The Broad-Based Black Economic Empowerment Act (BBBEE), 2003 (Act 53 of 2003)(amended in 2013) was introduced to overcome the challenges of Black Economic Empowerment (BEE). Businesses who do not comply with this Act will be penalised for non-compliance. Businesses must ensure that they understand the implications of the BBBEE pillars and are now compelled to comply with this Act. Write an essay on BBBEE In which you include the following aspects: • Outline the difference between BEE and BBBEE. • Explain the penalties/consequences of non-compliance with BBBEE. • Discuss the implications of FOUR revised pillars of BBBEE on businesses. • Suggest ways in which businesses can comply with this Act. [40] QUESTION 6: BUSINESS OPERATIONS (QUALITY OF PERFORMANCE) Businesses must focus on quality management and quality of performance in order to reduce the cost of quality. A good quality management system not only benefits the business, but also the workers and their customers. The advantages of a good quality management system contribute to continuous skills development and satisfied customers. Write an essay on quality of performance in which you address the following aspects: • Outline the differences between quality management and quality performance. • Discuss the impact of the following TQM elements on large businesses: o Total client satisfaction o Continuous skills development • Explain the benefits of a good quality management system. • Suggest ways in which TQM can reduce the cost of quality. [40] TOTAL SECTION C: [40] TOTAL: [150] Copyright reserved 9 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. com WESTERN CAPE EDUCATION DEPARTMENT GRADE 12 BUSINESS STUDIES PREPATORY EXAMINATION PAPER 1 2022 MARKING GUIDELINE MARKS: 150 TIME: 2 HOURS This question paper consists of 27 pages.

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 NOTES TO MARKERS PREAMBLE The notes to markers are provided for quality assurance purposes to ensure the following: (a) Fairness, consistency and reliability in the standard of marking (b) Facilitate the moderation of candidates' scripts at the different levels (c) Streamline the marking process considering the broad spectrum of markers across the country (d) Implement appropriate measures in the teaching, learning and assessment of the subject at schools/institutions of learning 1. For marking and moderation purposes, the following colours are recommended: Marker: Red Senior Marker: Green Deputy Chief Marker: Brown Chief Marker: Pink Internal Moderator: Orange DBE Moderator: Turquoise 2. Candidates' responses must be in full sentences for SECTIONS B and C. How- ever, this would depend on the nature of the question. 3. A comprehensive marking guideline has been provided but this is by no means exhaustive. Due consideration should be given to an answer that is correct but: • Uses a different expression from that which appears in the marking guide- line • Comes from another credible source • Original • A different approach is used NOTE: There is only ONE correct answer in SECTION A. 4. Take note of other responses provided by candidates, that are relevant within the context of a particular question, and allocate marks accordingly. (In cases where the answer is unclear or indicates some understanding, part-marks should be awarded, for example, one mark instead of the maximum of two marks.) 5. The word 'Submax' is used to facilitate the allocation of marks within a question or sub-question. 6. The purpose of circling marks (guided by 'max' in the breakdown of marks) on the right-hand side is to ensure consistency and accuracy in the marking of scripts as well as for calculation and moderation purposes. 7. Subtotals to questions must be written in the right-hand margin. Circle the sub- totals as indicated by the allocation of marks. This must be guided by 'max' in the marking guidelines. Only the total for each question should appear in the left- hand margin next to the appropriate question number. 8. In an indirect question, the theory as well as the response must be relevant and related to the question. Copyright reserved 2 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 9. Correct numbering of answers to questions or sub questions is recommended in SECTIONS A and B. However, if the numbering is incorrect, follow the sequence of the candidate's responses. Candidates will be penalised if the latter is not clear. 10. No additional credit must be given for repetition of facts. Indicate with an 'R'. 11. The differentiation between 'evaluate' and 'critically evaluate' can be explained as follows: 11.1 When 'evaluate' is used, candidates are expected to respond in either a positive/negative manner or take a neutral (positive and negative) stance, e.g. Positive: 'COIDA eliminates time and costs spent√ on lengthy civil court proceedings.'√ 11.2 When 'critically evaluate' is used, candidates are expected to respond in either a positive/negative manner or take a neutral (positive and neg- ative) stance. In this instance candidates are also expected to support their responses with more depth, e.g. 'COIDA eliminates time and costs spent√ on lengthy civil court proceedings√, because the employer will not be liable for compensation to the employee for injuries sustained during working hours as long as it can be proved that the business was not negligent.'√ NOTE: 1. The above could apply to 'analyse' as well. 2. Note the placing of the tick (√) in the allocation of marks. 12. The allocation of marks must be informed by the nature of the question, cognitive verb used, mark allocation in the marking guideline and the context of each ques- tion. Cognitive verbs, such as: 12.1 Advise, name, state, outline, motivate, recommend, suggest, (list not ex- haustive) do not usually require much depth in candidates' responses. Therefore, the mark allocation for each statement/answer appears at the end. 12.2 Define, describe, explain, discuss, elaborate, distinguish, differentiate, compare, tabulate, analyse, evaluate, critically evaluate (list not exhaus- tive) require a greater depth of understanding, application and reason- ing. Therefore, the marks must be allocated more objectively to ensure that assessment is conducted according to established norms so that uniformity, consistency and fairness are achieved. 13. Mark only the FIRST answer where candidates offer more than one answer for SECTION B and C questions that require one answer. Copyright reserved 3 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 14. SECTION B 14.1 If for example, FIVE facts are required, mark the candidate's FIRST FIVE re- sponses and ignore the rest of the responses. Indicate by drawing a line across the unmarked portion. NOTE: 1. This applies only to questions where the number of facts is speci- fied. 2. The above also applies to responses in SECTION C. (where appli- cable) 14.2 If two facts are written in one sentence, award the candidate FULL credit. Point 14.1 above still applies. 14.3 If candidates are required to provide their own examples/views, brainstorm this at the marking centre to finalise alternative answers and consult with the Internal Moderator at DBE for approval. 14.4 Use of the cognitive verbs and allocation of marks: 14.4.1 If the number of facts are specified, questions that require candidates to 'describe/discuss/explain' may be marked as follows: • Fact 2 marks (or as indicated in the marking guide- lines) • Explanation 1 mark (two marks will be allocated in Section C) The 'fact' and 'explanation' are given separately in the marking guide- line to facilitate mark allocation. 14.4.2 If the number of facts required is not specified, the allocation of marks must be informed by the nature of the question and the maximum mark allocated in the marking guideline. 14.5 ONE mark may be awarded for answers that are easy to recall, requires one-word answers or is quoted directly from a scenario/case study. This applies to SECTIONS B and C in particular (where applicable). 15. SECTION C 15.1 The breakdown of the mark allocation for the essays is as follows: Introduction Maximum: Content 32 Conclusion Insight 8 TOTAL 40 Copyright reserved 4 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 15.2 Insight consists of the following components: Layout/Structure Is there an introduction, a body, and a conclusion? 2 Analysis and Is the candidate able to break down the question into 2 interpretation headings/subheadings/interpret it correctly to show under- standing of what is being asked? Marks to be allocated using this guide: All headings addressed: 1 (One 'A') Interpretation (16 to 32 marks): 1 (One 'A') Synthesis Are there relevant decisions/facts/responses made based 2 on the questions? Option 1: Only relevant facts: 2 (No '-S') Where a candidate answers 50% or more of the question with only relevant facts; no '-S' ap- pears in the left margin. Award the maximum of TWO (2) marks for synthesis. Option 2: Some relevant facts: 1 (One '-S') 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: Some relevant facts: 1 (One '-S') Where a candidate answers less than 50% of the question with no relevant facts; two '-S' ap- pear in the left margin. Award a ZERO mark for synthesis. Option 4: No relevant facts: 0 mark (Two '-S') Where a candidate answers less than 50% (only one sub-question) of the questions with no relevant facts; two '-S' appears in the left margin. Award a ZERO mark synthesis Originality Is there evidence of one example per topic/subtopic based 2 on recent information, current trends and developments not older than one (1) year? 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 in- troduction and conclusion. 2. The candidate forfeits marks for layout if the words INTRO- DUCTION and CONCLUSION are not stated. 3. No marks will be awarded for layout, if the headings INTRO- DUCTION and CONCLUSION are not supported by an expla- nation. Copyright reserved 5 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 15.3 Indicate insight in the left-hand margin with a symbol e.g. ('L, A, -S and/or O'). 15.4 The breakdown of marks is indicated at the end of the suggested answer/ mark- ing guideline to each question. 15.5 Mark all relevant facts until the SUBMAX/MAX mark in a subsection has been attained. Write SUBMAX/MAX after maximum marks have been obtained, but continue reading for originality “O”. 15.6 At the end of each essay indicate the allocation of marks for facts and marks for insight as follows: (L – Layout, A – Analysis, S – Synthesis, O – Originality) as in the table below. CONTENT MARKS Facts 32 (max.) L 2 A 2 S 2 O 2 TOTAL 40 15.7 When awarding marks for facts, take note of the submaxima indicated, espe- cially if candidates do not make use of the same subheadings. Remember, headings and subheadings are encouraged and contribute to insight (structur- ing/logical flow/sequencing) and indicate clarity of thought. (See MARK BREAKDOWN at the end of each question.) 15.8 If the candidate identifies/interprets the question INCORRECTLY, then he/she may still obtain marks for layout. 15.9 If a different approach is used by candidates, ensure that the answers are as- sessed according to the mark allocation/subheadings as indicated in the mark- ing guideline. 15.10 15.10.1 Award TWO marks for complete sentences. Award ONE mark for phrases, incomplete sentences and vague answers. 15.10.2 With effect from November 2015, the TWO marks will not neces- sarily appear at the end of each completed sentence. The ticks (√) will be separated and indicated next to each fact, e.g. 'Product de- velopment is a growth strategy √, where businesses aim to introduce new products into existing markets.'√ This will be informed by the nature and context of the question, as well as the cognitive verb used. 15.11 With effect from November 2017, the maximum of TWO (2) marks for facts shown as headings in the marking guidelines, will not necessarily apply to each question. This would also depend on the nature of the question. Copyright reserved 6 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 SECTION A - COMPULSORY QUESTION 1 1.1.1 C ✓✓ 1.1.2 B ✓✓ 1.1.3 D ✓✓ 1.1.4 D ✓✓ 1.1.5 A ✓✓ (5 x 2) (10) 1.2.1 45 ✓✓ 1.2.2 SWOT ✓✓ 1.2.3 unemployment insurance ✓✓ 1.2.4 piecemeal ✓✓ 1.2.5 external ✓✓ (5 x 2) (10) 1.3.1 G ✓✓ 1.3.2 I ✓✓ 1.3.3 J ✓✓ 1.3.4 A ✓✓ 1.3.5 C ✓✓ (5 x 2) (10) TOTAL SECTION A: [30] Copyright reserved 7 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 SECTION B Mark the first TWO (2) questions answered. QUESTION 2: BUSINESS ENVIRONMENTS 2.1 Rights of consumers in terms of the NCA. • Apply to take credit and be free from discrimination. ✓ • Get reasons for refusing credit. ✓ • Receive pre-agreement documentation before entering into any credit transaction. ✓ • Receive fair and responsible marketing. ✓ • Return goods to the credit provider to share the outstanding amount / debt. ✓ • Apply for debt review / debt counselling if the consumers cannot afford to repay their debt. ✓ • Receive information in a simple and understandable language. ✓ • Receive documents / statements as required by the Act. ✓ • To access and challenge credit records and information. ✓ • Receive protection of their personal information. ✓ • Protection to be held responsible for the use of their credit facility after theft / loss has been reported. ✓ • Refuse to increase their credit limit. ✓ • Any other relevant answer related to rights of consumers in terms of the NCA. NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 2.2 How SETAs are funded. • Skills Development levies are paid by employers to SARS as a collecting agency for the government. ✓✓ • Employers who have a salary bill that exceeds R500 000 per annum, should pay one percent (1%) of their annual salaries as a levy. ✓✓ • The different SETAs receive 80% of the levy for organisational expenses and the remaining 20% is paid to the National Skills Fund. ✓✓ • Donations/Grants received from the public/businesses/CSI programmes. ✓✓ • Surplus funds from government institutions. ✓✓ • Funds received from rendering their services. ✓✓ • Any other relevant answer related to how SETAs are funded. Max (4) 2.3 Integration strategy 2.3.1 Horizontal integration ✓✓ (2) Copyright reserved 8 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 2.3.2 Advantages of diversification strategies. • Increase sales✓ and business growth. ✓ • Improves the business brand✓ and image. ✓ • Reduces the risk✓ of relying only on one product. ✓ • More products can be sold to existing customers✓ and additional more new markets can be established. ✓ • Businesses gain more technological capabilities ✓ through product modification.✓ • Diversification into a number of industries or product line✓ can help create a balance during economic fluctuations. ✓ • Business produce more output using less inputs✓ as one factory may be used to manufacture more products. ✓ • Any other relevant answer related to advantages of diversification strategies. Max (4) 2.4 Strategic management process. 2.4.1 • A business should review/analyse ✓their vision/mission statement. ✓ • Conduct an environmental analysis ✓using models such as SWOT/PESTLE. ✓ • Formulate a strategy, ✓such as a defensive/retrenchment strategy. ✓ • Implement a strategy, ✓ using a template such as an action plan. ✓ • Control, monitor and evaluate the implemented strategy✓ to identify gaps / deviations in implementation. ✓ • A business should take corrective action✓ to ensure goals/objectives are met.✓ • Any other relevant answer related to the strategic management process. Max (6) 2.5 Legislation 2.5.1 Basic Conditions of Employment Act / BCEA ✓✓ (2) 2.5.2 Other actions that could be regarded as non-compliance to BCEA • Forbidding workers to discuss wages/salaries ✓ with co-workers. ✓ • Preventing workers from having access ✓ to employment contracts. ✓ • Refusing to grant a worker family responsibility leave✓ to support a sick family member. ✓ • Any other relevant answer related to actions that could regarded as non- compliant to BCEA. NOTE: Do not accept: Refusing to accept a valid medical certificate of a sick worker. Max (4) Copyright reserved 9 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 2.6 PESTLE elements/factors 2.6.1 Environmental • Chemicals/Ingredients in business’ products✓ may be harmful to customers. ✓ • Measures to dispose of business waste✓ may be expensive. ✓ • Packaging of some products ✓may not be environmentally friendly / may not be recyclable. ✓ • Any other relevant answer related to environmental factors posing a challenge to businesses. Max (4) 2.6.2 Technological • Businesses may not keep up with / be aware of✓ the latest technology. ✓ • Employees may not be skilled✓ to operate / maintain new technology / equipment. ✓ • Businesses may not be able to afford✓ new technology. ✓ • May not be able to cater for / afford✓ online transactions/e-commerce. ✓ • Any other relevant answer related to technological factors posing a challenge to businesses. Max (4) 2.7 Practical ways in which businesses may comply with the EEA. • Businesses must guard against discriminatory appointments. ✓✓ • Assess the racial composition of all employees, including senior management.✓✓ • Prepare an employment equity plan in consultation with employees. ✓✓ • Clearly define the appointment process, so that all parties are well informed. ✓✓ • Compile employment equity plans that indicate how they will implement affirmative action. ✓✓ • Implement an employment equity plan. ✓✓ • Implement affirmative action measures to redress disadvantages experienced by designated groups. ✓✓ • Submit the employment equity plan to the Department of Labour. ✓✓ • Display a summary of the Act where employees can clearly see/have access to the document. ✓✓ • Assign one or more senior managers to ensure implementation and monitoring of the employment equity plan. ✓✓ • Use certified psychometric tests to assess applicants/employees to ensure that suitable candidates are appointed. ✓✓ • Conduct medical/psychological tests fairly to employees/when deemed necessary. ✓✓ • Regularly report to the Department of Labour on progress in implementing the plan. ✓✓ • Any other relevant answer related to practical ways in which businesses comply with EEA Max (6) [40] Copyright reserved 10 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 QUESTION 3: BUSINESS OPERATIONS 3.1 TWO sources of internal recruitment • Internal emails/intranet/websites to staff ✓ • Word of mouth✓ • Business newsletters/Circulars to staff✓ • Internal/management referrals ✓ • Office notice boards✓ • Internal bulletins ✓ • Recommendation of current employees✓ • Headhunting within the business/organisational database✓ • Any other relevant answer related to the sources of internal recruitment. NOTE: Mark the first TWO (2) only. (2 x 1) (2) 3.2 Outline the quality indicators of marketing function • Acquire a greater market share through good / effective / efficient customer service. ✓✓ • Gain customers’ loyalty by satisfying / meeting / exceeding their needs / wants / building positive relationships. ✓✓ • Adhere to ethical advertising practices when promoting products/services.✓✓ • Identify competitive edge/gaps in the market and conduct regular market research. ✓✓ • Differentiate products from competitors to increase the target market / profitability. ✓✓ • Use different pricing techniques such as promotional / penetration pricing, and so on, to ensure a competitive advantage. ✓✓ • Use aggressive advertising campaigns to sustain the market share. ✓✓ • Any other relevant answer related to the quality indicators of the marketing function. Max (4) 3.3 Define placement as a human resource activity • Selected candidates are placed/positioned where they will function optimally ✓ and add value to the business. ✓ • A specific job is assigned to the ✓ selected candidate. ✓ • The qualifications/skills/personality of the selected candidate are matched ✓ with the requirements of the job. ✓ • Any other relevant answer related to placement as a human resource activity. Max (4) Copyright reserved 11 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 3.4.1 Quote steps of the recruitment procedure • The human resources department has identified a position for an administrative assistant. ✓ • The position will be advertised in the local newspaper to recruit suitable applicants. ✓ NOTE: 1. Mark the first TWO (2) only. 2. Do not award marks for quotes that are incomplete. Max (2) 3.4.2 Explain the 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/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 them✓. • Know your strengths and weaknesses ✓ and be prepared to discuss them. ✓ • Thank the interviewer for the opportunity given ✓ to be part of the interviews ✓ • Any other relevant answer related to role of applicant/interviewee during interview. Max (6) 3.5 Discuss the impact of internal recruitment on businesses Positives / Advantages • The business recruits existing employees through promotions/transfers ✓ from inside the business.✓ • Opportunities for promotion rewards good work ✓and motivates current employees. ✓ • Reliable/key staff members are retained✓ if they are promoted/transferred within the business. ✓ • Staff morale and productivity increases ✓ if suitable staff members are promoted regularly. ✓ • Current employees understand the operations/functions✓ of the business. ✓ • The business knows the personality, ✓strengths and weaknesses of the candidate. ✓ • The recruitment process is faster/less expensive✓ if the candidates are known to the business. ✓ AND/OR Copyright reserved 12 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 Negative / Disadvantages • Current employees may not bring new ideas into the business✓./ Limited idea generation from current employees. ✓ • Promoting a current employee may cause resentment✓ amongst existing/ other employees. ✓ • The number of applicants is limited ✓ to current staff only. ✓ • Employees who do not have the required skills for the new job may be promoted. • Current employees may need to be trained/developed before they can be promoted, ✓ which can be expensive/time-consuming. ✓ • Employees who are not promoted may feel demotivated, ✓ which may hamper productivity/reduce morale. ✓ • Any other relevant answer related to impact of internal recruitment on businesses. Max (6) 3.6 PDCA-model 3.6.1 PDCA STEPS MOTIVATION 1. Plan ✓✓ In response, a group of AV employees made suggestions to management about how and what should be done to improve the quality processes and systems ✓ 2. Check✓✓ AV must assess and determine whether the changes are working and if everything are going according to plan. ✓ Sub max (4) Sub max (2) NOTE: 1. The answer does not have to be in tabular format. 2. Award marks for the correct step of the PDCA model even if the quote is incomplete. 3. Do not award marks for the motivation, if the steps of the PDCA model were incorrectly identified. 4. Mark the first TWO (2) steps of the PDCA model with the corresponding motivation only. Max (6) 3.6.2 Explain the importance of quality circles as part of the continuous improvement of processes and systems in a business • Solve problems related to quality ✓ and implement improvements. ✓ • Investigate / identify problems ✓ and suggest management solutions. ✓ • Ensure that there is no duplication of activities/tasks ✓ in the workplace. ✓ • Make suggestions for improving systems and processes ✓ in the workplace. ✓ • Improve the quality of products / services / productivity ✓ through regular reviews of quality processes. ✓ • Monitor/Reinforce strategies ✓ to improve the smooth running of business operations. ✓ Copyright reserved 13 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 • Reduce costs of redundancy ✓ in the long run. ✓ • Discuss ways of improving the quality ✓ of work / workmanship. ✓ • Contribute towards the improvement ✓ and development of the organisation. ✓ • Improve employees’ loyalty and commitment to the business ✓ and its goals. ✓ • Any other relevant answer related to the importance of quality circles as part of the continuous improvement of processes and systems in a business. Max (4) 3.7 Advise businesses on the impact of TQM if it is poorly implemented • Setting unrealistic deadlines that may not be achieved. ✓✓ • Employees may not be adequately/efficiently trained, resulting in poor quality product. ✓✓ • The decline in productivity because of stoppages / delays. ✓✓ • 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 products. ✓✓ • Customers will have many alternatives to choose from, and the impact could lead to losses for the businesses. ✓✓ • Investors might withdraw investment if there is a decline in profits. • Bad publicity due to poor quality products supplied. ✓✓ • The decline in sales when unhappy customers increasingly return product ✓✓ • High staff turnover because of poor skills development/training. ✓✓ • Any other relevant answer related to the importance of quality circles as part of the continuous improvement of processes and systems in a business. Max (6) [40] Copyright reserved 14 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 QUESTION 4: MISCELLANEOUS TOPICS BUSINESS ENVIRONMENTS 4.1 Name any TWO types of intensive strategies. • Market Penetration ✓ • Market Development ✓ • Product Development ✓ NOTE: Mark the first TWO (2) only. (2 x 1) (2) 4.2 Porter’s Five Forces 4.2.1 Power of competitors / Competitive rivalry ✓✓ (2) 4.2.2 Threat/barriers of new entrants to the market ✓✓ (2) 4.3 Business environments and the extent of control BUSINESS ENVIRONMENTS EXTENT OF CONTROL Micro ✓ Full control ✓ Market ✓ Partial/Limited/Little control ✓ Macro ✓ No control ✓ Sub max (2) Sub max (2) NOTE: 1. The answer does not have to be in tabular format. 2. Award marks for business environments if extent of control is incorrect. 3. Do not award marks for extent of control if business environments is incorrect / not answered. 4. Mark the first TWO (2) only Max (4) 4.4 Types of defensive strategies 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 (1) Sub max (3) DIVESTITURE✓✓ • Disposing / Selling some assets / divisions / departments that are no longer profitable/productive. ✓ • Selling off divisions / product lines with slow growth potential. ✓ • Decreasing the number of shareholders by selling ownership. ✓ • Paying off debts by selling unproductive assets. ✓ Copyright reserved 15 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 • Withdrawing their investment share in another business (divesting). ✓ • Any other relevant answer related to divestiture as a defensive strategy. Strategy (2) Explanation (1) Sub max (3) LIQUIDATION✓✓ • Selling all assets to pay creditors due to a lack of capital. ✓ • Selling the entire business in order to pay shareholders a fair price for their shares. ✓ • Allowing creditors to apply for forced liquidation in order to have their claims settled. ✓ • Businesses in financial difficulty may apply for business rescue to avoid liquidation. ✓ • Any other relevant answer related to liquidation as a defensive strategy. Strategy (2) Explanation (1) Sub max (3) NOTE: Mark the first TWO (2) only. Max (6) 4.5 Advise businesses on consequences for non-compliance with COIDA. • Businesses can be fined for refusing to submit the claim/contravening the Act.✓✓ • Businesses can be forced to make large payments if they have not taken the necessary precautions according to the Act.✓✓ • They may be forced to pay any repair costs required by the Compensation Fund.✓✓ • Employees can take businesses to court because they are not registered with the Commissioner of the Compensation Fund.✓✓ • If businesses are found guilty of any offence, they will face heavy fines / face imprisonment. ✓✓ • Any other relevant answer related to consequences for non-compliance with COIDA. Max (4) Copyright reserved 16 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 BUSINESS OPERATIONS 4.6 Name TWO aspects of an employment contract • personal details of the employee ✓ • details of the business/employer, for example, name/address, etc. ✓ • job title/position ✓ • job description, for example, duties/working conditions/responsibilities✓ • job specification, for example, formal qualifications/experience/willingness to travel ✓ • date of employment/commencement of employment✓ • place where the employee will spend most of his/her working time/conduct work activities ✓ • hours of work, for example, normal time/overtime✓ • remuneration, for example, weekly/biweekly/fortnightly/monthly pay ✓ • benefits / fringe benefits / perks / allowances ✓ • leave, for example, sick/maternity/annual/adoption leave/family responsibility leave ✓ • employee deductions (compulsory / non-compulsory) ✓ • period of contract/details of termination ✓ • probation period ✓ • signatures of both the employer and employee ✓ • list of documents that form part of the contract, for example, appointment letter/code of conduct/ethics ✓ • disciplinary policy, for example, rules and disciplinary procedure for unacceptable behaviour✓ • Any other relevant answer related to aspects of an employment contract. NOTE: Mark the first TWO (2) only. Max (2) 4.7.1 Quote aspects of the induction program • The management took the employees on a tour of the premises. ✓ • The employees were also introduced to their colleagues and supervisors. ✓ NOTE: 1. Mark the first TWO (2) only. 2. Do not award marks for quotes that are incomplete. Max (2) 4.7.2 Discuss the benefits of induction for businesses • New employees who are familiar with the business’s policies/procedures ✓ may easily adapt to their new work environment. ✓ • New employees learn more about the business ✓ and understand their role in the business/expectations of the job. ✓ • Increased productivity / efficiency ✓ and quality of service. ✓ • Minimises the need for ongoing training ✓ and development. ✓ Copyright reserved 17 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 • Improved / Better focused training may be provided ✓ based on the results obtained from the induction process. ✓ • New employees may feel part of the team ✓ resulting in positive morale / motivation. ✓ • Reduces staff turnover ✓ as new employees have been inducted properly. ✓ • Any other relevant answer related to benefits of induction for businesses. Max (6) 4.8 Explain reasons for termination of employment contract • The employer may dismiss an employee for a valid reason/s, ✓ for example, unsatisfactory job performance, misconduct, etc. ✓ • The employer may no longer have work for redundant employees ✓ cannot fulfil the contract / is restructuring. ✓ • An employee could decide to leave for a better job opportunity✓ by resigning voluntarily. ✓ • The employer may retrench some employees ✓ because of insolvency/may not be able to pay the employees/operational reasons. ✓ • An employee may have reached the pre-determined age✓ for retirement. ✓ • An employee could become incapacitated ✓ due to illness / injuries. ✓ • The employer and employee may reach a mutual agreement. ✓ • The duration of the employment contract expires / comes to an end. ✓ • Any other relevant answer related to the reasons for termination of employment contract. Max (4) 4.9 Advise businesses how quality of performance can contribute to the success of the administration function • Fast and reliable data capturing and processing systems. ✓✓ • Make reliable information available to management on time. ✓✓ • Make relevant information available for quick decision-making. ✓✓ • Handle complaints quickly and effectively. ✓✓ • Use modern technology efficiently. ✓✓ • Implement effective risk management policies to minimise business losses ✓✓ • Quality assurance/Control/Evaluation is recorded accurately. ✓✓ • All documentation is kept neatly and orderly in a safe place. ✓✓ • Easy to recall and find information/documentation. ✓✓ • Financial documents are kept up to date and recorded accurately. ✓✓ • All systems and processes are documented. ✓✓ • Any other relevant answer related to how the administration function can contribute to the quality of performance in the business. Max (6) [40] TOTAL SECTION B: [80] Copyright reserved 18 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 SECTION C Mark the FIRST question answered. QUESTION 5: BUSINESS ENVIRONMENTS (LEGISLATION) 5.1 INTRODUCTION • BBBEE was introduced to bring the majority of the South Africans into the mainstream of the economy.√ • It increased the number of black people that manage/own/control the economy.√ • It aims at targeting inequality in the South African economy.✓ • A BEE scorecard is used to determine the BBBEE status of a business.√ • Any other relevant introduction related to BEE/BBBEE / penalties/consequences of non-compliance / impact of the act on businesses / ways to comply with the act. (2 x 1) (2) 5.2 Difference between BEE and BBBEE. BEE BBBEE • It is a government policy which may • It is an act that is enforced/must be not be enforced. ✓✓ complied with by businesses. ✓✓ • Benefits only a few previously • Encourages a wider group of disadvantaged people in the previously disadvantaged people / economy. ✓✓ black women / people who are physically challenged / youth / people in rural areas to participate in the economy. ✓✓ • Few previously disadvantaged • Aims at distributing the country's individuals share in the wealth of the wealth across a broader spectrum of economy. ✓✓ society. ✓✓ • Focuses only on three pillars that • Focuses on five pillars which did not include all previously includes all sectors of the society, disadvantaged people. ✓✓ especially the previously disadvantaged. ✓✓ • Any other relevant answer related to • Any other relevant answer related to BEE BBBEE 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 / Mark either BEE or BBBEE only. Max (8) Copyright reserved 19 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 5.3 Penalties/consequences of non-compliance with BBBEE. • Businesses may face imprisonment ✓ for non-compliance and fronting practices.✓ • The penalty could be a fine✓ of up to 10% of the company’s annual turnover. ✓ • Government will cancel any contract✓ awarded that was based on false information regarding BBBEE status. ✓ • A business can be banned from participating in government contracts✓ for a period of 10 years. ✓ • Business licenses✓ may not be renewed. ✓ • Any other answer relevant to penalties/consequences of non-compliance with BBBEE Max (10) 5.4 Implications of the FIVE pillars of BBBEE on businesses. MANAGEMENT CONTROL✓✓ • Due to a shortage of skilled black managers/directors, ✓some businesses find it difficult to make appointments. ✓ • This limits✓ the growth opportunities for the business. ✓ • Businesses are directly penalised✓ for not implementing this pillar. ✓ BBBEE pillar (2) Explanation (2) Sub max (4) OWNERSHIP✓✓ • Businesses find it difficult to locate black business partners / shareholders ✓ as many black people cannot afford shares. ✓ BBBEE pillar (2) Explanation (2) Sub max (4) ENTERPRISE AND SUPPLIER DEVELOPMENT✓✓ • Smaller businesses that are not BBBEE compliant ✓ lose business. ✓ • Small businesses may not be able to afford ✓ enterprise development investment / support. ✓ • Black owned SMMEs may become too reliant on support ✓ from other businesses. ✓ • BBBEE suppliers ✓ may be without good workmanship. ✓ • Businesses are forced to choose ✓ from a smaller pool of suppliers. ✓ BBBEE pillar (2) Explanation (2) Sub max (4) Copyright reserved 20 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 SKILLS DEVELOPMENT✓✓ • Productivity is compromised ✓ as mentors / coaches have to find the time to participate in learnerships/training. ✓ BBBEE pillar (2) Explanation (2) Sub max (4) SOCIAL RESPONSIBILITY✓✓ • Businesses often are not knowledgeable or experts at societal issues ✓ and social responsibility may result in wastage of financial resources if not investigated correctly. ✓ BBBEE pillar (2) Explanation (2) Sub max (4) • Any other answer relevant to the implications of the five pillars of BBBEE on businesses NOTE: Mark the first VIER (4) only. Max (16) 5.5 Ways in which businesses can comply with the BBBEE • Businesses must appoint black people in managerial positions. ✓✓ • Businesses must sell shares to black employees / people. ✓✓ • Send black people for skill development training. ✓✓ • Outsource services to BEE compliant suppliers. ✓✓ • Implement affirmative action when making appointments. ✓✓ • Improve the standard of living of the communities in which they operate. ✓✓ • Develop small business /SMME’s through ESD.✓✓ • Any other relevant answer related to ways in which businesses can comply with the BBBEE Max (12) 5.6 CONCLUSION • BBBEE enables wealth to be spread more broadly across all population groups.✓✓ • An economy that is not growing cannot integrate all its citizens in a meaningful way. ✓✓ • To obtain a good rating, businesses will have to spend money in the areas covered by the BBBEE pillars. ✓✓ • Any other relevant conclusion related to BEE/BBBEE / penalties/consequences of non-compliance / impact of the act on businesses / ways to comply with the act. (1 x 2) (2) Copyright reserved 21 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 QUESTION 5: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Difference between BEE and BBBEE 8 Penalties for non-compliance of BBBEE 10 Max 32 Impact of BBBEE on businesses 16 Ways to comply with the Act 12 Conclusion 2 INSIGHT Structure / Layout 2 Analysis / Interpretation 2 Max 8 Synthesis 2 Originality / Examples 2 TOTAL POINTS 40 SASO - for each component: Give 2 marks if all the requirements have been met. Give 1 mark if some requirements have been met. Give 0 marks where requirements have not been met at all. Copyright reserved 22 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 QUESTION 6: BUSINESS OPERATIONS (QUALITY OF PERFORMANCE) 6.1 INTRODUCTION • Quality management ensures that the quality of products and services is con- sistent✓ • Businesses use time and resources efficiently✓ • The effective implementation of TQM can give businesses a competitive advantage over other businesses. ✓ • Any other relevant introduction related to differences between quality of management, quality performance, impact of TQM elements, benefits of a good management system and ways TBG can reduce costs in a business. (2x1) (2) 6.2 Outline the differences between quality management and quality performance QUALITY MANAGEMENT QUALITY PERFORMANCE • The process of managing all activi- • The total performance of each de- ties needed to ensure a business partment is measured against the produces products/ services of con- specified standards. ✓✓ sistently high standards. ✓✓ • Refer to techniques/tools used to de- • Quality is measured through physical sign/improve the quality of a product. product/statistical output of ✓✓ processes/ surveys of the users and/or buyers / consumers of products / services.✓ ✓ • Can be used for accountability within • Can be obtained if all departments each of the business functions. ✓✓ work together towards the same quality standards✓✓ • Aims to ensure that the quality of products/services is consistent. Fo- cuses on the means to achieve con- sistency ✓✓ • Any other relevant answer related to • Any other relevant answer related to quality management. quality performance. Sub max (6) Sub max (6) NOTE: 1. The answer need not be in tabular format, but the distinction should be clear. 2. Award a maximum of FOUR (4) marks if the distinction is not clear. / Mark only Quality Management or Quality Performance. Max (12) Copyright reserved 23 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 6.3 Discuss the impact of the following TQM elements on large businesses: 6.3.1 Total client satisfaction Positives / Advantages • Large businesses use market research/customer surveys ✓ to measure/monitor customer satisfaction / analyse customers’ needs. ✓ • Continuously promote / foster a positive ✓ business image. ✓ • Strive to understand and fulfil customer expectations ✓ by aligning cross- functional teams across critical processes. ✓ • May lead to higher customer retention / loyalty✓ and businesses may be able to charge higher prices. ✓ • Large businesses may be able to gain access ✓ to the global market. ✓ • Any other relevant answer to the impact of total client satisfaction on a large business AND/OR Negatives / Disadvantages • Employees who seldom come into contact with customers often do not have a clear idea ✓ of what will satisfy their needs. ✓ • A large business that is characterised as a monopoly has increased bargaining power ✓ and therefore does not pursue customer satisfaction / does not have to satisfy / meet customer needs. ✓ • Not all employees may be involved/committed ✓ to total client satisfaction. ✓ • Reaction time to changing consumer demand may be influenced ✓ by a delay in market research / information. ✓ • Large businesses that become complacent with (the) existing customer satisfaction / target market ✓ may experience limited long-term growth potential.✓ • Any other relevant answer to the impact of total client satisfaction on a large business Sub max (6) 6.3.2 Continuous skills development Positives / Advantages • Large businesses have a human resources department ✓dedicated to skills training and development. ✓ • Human resources experts ensure that training programmes are relevant✓ /applicable to increased customer satisfaction. ✓ • Ability to afford specialised / skilled ✓ employees. ✓ • May conduct skills audit to establish the competency / education levels of staff performing work ✓ which could affect the quality of products / services / processes positively. ✓ • May be able to hire qualified trainers ✓ to train employees regularly. ✓ • Any other relevant answer to the impact of continuous skills development on a large business Copyright reserved 24 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 AND/OR Negatives/Disadvantages • Poor communication systems in large businesses ✓ may prevent effective training from taking place. ✓ • Trained employees may leave for better jobs ✓ after they have gained more skills. ✓ • Employees may become demotivated ✓ if they do not receive recognition/ acknowledgement for training. ✓ • Employees may not be aware of the level of competency they should meet ✓ to achieve their targets. ✓ • It may be difficult to monitor / evaluate ✓ the effectiveness of training. ✓ • Any other relevant answer to the impact of continuous skills development on a large business Sub max (6) Max (12) 6.4 Explain benefits of a good management system • Effective customer services are rendered ✓ resulting in increased customer satisfaction. ✓ • Time and organisational resources such as finance / raw materials / labour✓ are used efficiently. ✓ • Productivity increases✓ through proper/effective time management/using highquality resources. ✓ • Products/Services are constantly improved ✓resulting in increased levels of customer satisfaction. ✓ • Vision / Mission / Business objectives can be achieved. ✓ • The business has a / improves its competitive advantage ✓ over its competitors.✓ • Regular training will continuously improve the quality ✓ of employees’ skills/ knowledge/competencies. ✓ • Employers and employees will have a healthy working relationship ✓ resulting in happy / productive workers. ✓ • Increased market share✓/more customers improve profitability. ✓ • Improves business image ✓as there are fewer defects/returns. ✓ • Improves the financial sustainability of the business ✓ as customers are retained.✓ • Any other relevant answer related to benefits of a good management system. Max (12) Copyright reserved 25 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 6.5 Suggest ways in which TQM can reduce the cost of quality • Introduce quality circles to discuss ways of improving the quality of work/workmanship. ✓✓ • Schedule activities to eliminate duplication of tasks. ✓✓ • Share responsibility for quality output amongst management and workers. ✓✓ • Train employees 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 in expensive, but ineffective inspection procedures in the production process. ✓✓ • Implement proactive 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 (10) 6.6 CONSLUSION • Quality is important for a business to be sustainable. ✓✓ • It is important that businesses have a proper system to manage quality, e.g. TGB that will reduce costs and increase profits. ✓✓ • Any other relevant fact related to differences between quality of management, quality performance, impact of TGB elements, benefits of a good management system and ways in which TBG can reduce costs in a business. (1x2) (2) Copyright reserved 26 Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. comPREPARATORY EXAMINATION 2022 BUSINESS STUDIES P1 QUESTION 6: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Differences between quality management 12 and quality performance Impact of TQM elements on businesses: • Total client satisfaction 6 • Continuous skills development 6 Max 32 Benefits of a good quality management 10 system Ways in which TQM can reduce the cost of 12 quality Conclusion 2 INSIGHT Structure / Layout 2 Analysis / Interpretation 2 Max 8 Synthesis 2 Originality / Examples 2 TOTAL POINTS 40 SASO - for each component: Give 2 marks if all the requirements have been met. Give 1 mark if some requirements have been met. Give 0 marks where requirements have not been met at all. TOTAL SECTION C: [40] TOTAL: [150] Copyright reserved 27 Please turn over