# Business Studies Grade 12 P1 Western Cape November 2022 Memo

> Grade 12 Business Studies Paper 1 memorandum from the Western Cape November 2022, 36 pages. Read online or download the free PDF.

- Page: https://www.hlayiso.com/library/wc-business-studies-grade-12-sept-2022-p1-and-memo/c5ad5e9e-284d-4b06-81d4-bc96e38300e2
- Updated: 2026-09-27
- Subject: Business Studies
- Grade: Grade 12
- Document type: Memorandum
- Year: 2022
- Exam period: Western Cape November
- Paper: 1
- Curriculum: CAPS
- Pages: 36

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Business Studies · Grade 12 · Western Cape November · 2022. Memorandum, 36 pages. Read online or download the PDF.

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           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.

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       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.

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         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)

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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)

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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]

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        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]

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        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]

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        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]

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        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]

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           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.

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 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.

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 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.

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 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

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 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.

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 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.

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         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]

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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)

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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)

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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]

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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)

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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

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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. ✓
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        •   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]

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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. ✓

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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)

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