Business Studies Grade 12 12 Business Studies Learner’s Book Module 1 - 3 Page 22 of 236 (i) To do strategic planning in an unpredictable environment, management

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Table of ontents C

Page

number Module 1 Unit 1 The business environments Chapter 1 The macro-environment 4 Chapter 2 Managing change and challenges in the

business environment 22 Unit 2 Social responsibility and legislation Chapter 1 The concept of social responsibility 27 Chapter 2 Corporate social investments and BEE 38 Chapter 3 Legislation for redress and equity 48 Unit 3 Business sectors and environments Chapter 1 Business sectors and environments 52 Unit 4 Human Resources Chapter 1 Employing staff 54 Chapter 2 Employee contracts 62 Chapter 3 Induction and placement 72 Chapter 4 Salary administration 75 Chapter 5 Employee benefits 80 Module 2 Unit 1 Human resources Chapter 1 The human resources legal environment 83 Chapter 2 Industrial relations 95 Chapter 3 Training and development as a human resource

function 104 Chapter 4 Legislation, training and skills development 109 Unit 2 Ownership Chapter 1 Entrepreneurial qualities 115 Chapter 2 What makes a business successful? 120 Chapter 3 Presentation of business information 131 Chapter 4 Business investment 139 Chapter 5 Assurance and insurance 142 Chapter 6 Forms of business ownership 147

Grade 12 Business Studies Learner’s Book Module 1 - 3 Page 2 of 236


Module 3 Chapter 1 Creative thinking 159 Chapter 2 Decision making 163 Chapter 3 Business Ethics 170 Chapter 4 Challenges to ethical and professional business

practice 175 Chapter 5 Management styles 178 Chapter 6 Leadership styles 190 Chapter 7 Conflict management 198 Chapter 8 Working together 210 Chapter 9 Business careers and career paths 220 Glossary 233

Unit 1

Activity 2

Planning

Documents

SUBJECT FRAMEWORK: YEAR PLAN SUBJECT FRAMEWORK: YEAR PLAN

School: Year: Term/Weeks:

Grade 10: Module 1 Grade 11: Module 1 Grade 12: Module 1 Duration of

module: 36 hours Learning outcomes: 10.1, 10.3 Duration of

module: 36

hours Learning

outcomes: 11.1 Duration of module:

36 hours

Learning outcomes: 12.1, 12.4

Learning Outcomes Assessment standard Content Learning

Outcomes Assessment standard Content Learning Outcomes Assessment standard Content

12.1: Business environments: The learner is able to demonstrate knowledge and analyse the impact of changing and challenging environments on business practice in all sectors. 12.4: Business operations: The learner is able to demonstrate and apply a range of management skills and specialised knowledge to perform business operations successfully

12.1.2: Devise strategies for how a business can respond to the challenges of the macro business environment, critically evaluate such strategies and make recommendations as required. 12.1.3: Critically examine the concept of social responsibility and its implications for both business and communities. 12.1.4: Analyse the impact on small and big business operations of recent legislation developed in response to demands for redress and equity. 12.1.5: Select a business from each sector, and describe the three environments related to these sectors and the extent to which a business can control these environments. 12.4.3: Analyse and discuss relevant legislation and the following aspects of the human resource function. (a): Recruitment and selection. (b): Employee contracts. (c): Induction and placement. (d): Salary administration. (e): Employee benefits. (f): Skills development.

10.1: Business environments: The learner is able to demonstrate knowledge and analyse the impact of changing and challenging environments on business practice in all sectors. 10.3: Business roles: The learner is able to demonstrate and apply contemporary knowledge and skills to fulfil a variety of business roles.

10.1.1: Identify the various components of micro (internal), market and macro business environments, and discuss the relationship between the environments. 10.1.2: Analyse and explain the features of the micro (internal), market and macro business environments in detail. 10.1.3: Identify and discuss contemporary socio-economic issues that impact on business. 10.1.5: Investigate the nature of business being conducted in the vicinity and classify it into primary, secondary and tertiary enterprises. 10.3.10: Identify ways in which a business can contribute responsibly towards its immediate community.

Business Environment. The world of business. The micro- business environment. The market business environment. The elements of the macro- environment. Socio-economic factors. Political factors, the demographical environment, cultural and social environment. The interrelationship of business environments. Socio-economic issue of Aids. Socio-economic issue of poverty. Socio-economic issue of crime. Socio-economic issue of unemployment, gambling, inequality and diversity. The production process. The primary sector. The secondary sector. The tertiary sector. The public and private sectors. The formal and informal sector.

11.1: Business environments: The learner is able to demonstrate knowledge and analyse the impact of changing and challenging environments on business practice in all sectors.

11.1.1: Compare and describe the extent to which a business can control and influence the micro (internal), market and macro business environments. 11.1.2: Identify and discuss how a business constantly needs to adapt to the challenges of the micro (internal), market and macro business environments. 11.1.3: Analyse and interpret the impact and challenges of contemporary socio-economic issues on business operations, and make decisions for specific business situations. 11.1.5: Identify and investigate the links between various primary, secondary and tertiary enterprises.

Business environments. Control over the business environments. Power relationships, networking and lobbying. Challenges in the micro- environment. Challenges in the market environment. Challenges in the macro- environment. Socio-economic issues. Impact of socio-economic issues on business activities. Tertiary, primary and secondary industries. Links between production enterprises.

Challenges in the macro environment Managing change and challenges in the business environment Social responsibility Corporate social investments and BEE Legislation for redress and equity Business sectors and environments Recruitment and selection Employee contracts Induction and placement Salary administration Employee benefits

.

Grade 12 Business Studies Teacher’s Book Module 1 – 3 Page 58 of 83

WORK SCHEDULE

Week: Date

started:

Date ended:

Module Unit

and/or chapter

numbers

Time Learning

Outcomes andAssessment Standards

Content Assessment Tasks

Module 1

Unit 1 Chap. 1 – 2

6 hours 12.1.2

The macro environment Managing change and

challenges in the business environment

n/a

Week: Date

started:

Date ended:

Module Unit

and/or chapter

numbers

Time Learning



Module 1


11 hours

12.1.3 12.1.4

The concept of social responsibility

Corporate social investments and BEE

Legislation for redress and equity

Research on social

responsibility

Week: Date

started:

Date ended:

Module Unit

and/or chapter

numbers

Time Learning



Module 1

Unit 3 Chap.

1

3 hours 12.1.5 Business sectors and

environments n/a

Week: Date

started:

Date ended:

Module Unit

and/or chapter

numbers

Time Learning



Module 1


16 hours 12.4.3 (a) – (f)

Employing staff Employee contracts

Induction and placement Salary administration

Employee benefits

n/a


LESSON PLANS Module 1 Unit number: 1 Chapter number: 1

Duration of chapter:

3 hours

Planned date:

Actual date:

Learning Outcomes and Assessment Standards: 12.1.2 Content: The macro business environment Activity: Read the information and article and answer questions Resources: Internet Assessment Tasks:

n/a

For assessment by the teacher: Remedial: Enrichment: Reflection: Homework: Unit number: 1 Chapter number: 2

Duration of chapter:

3 hours

Planned date:

Actual date:

Learning Outcomes and Assessment Standards: 12.1.2 Content: Managing change and challenges in the business environment Activity: Read the information and develop strategic plan for FE Textiles Resources: Articles from Chapter 1 Assessment Tasks:

n/a

For assessment by the teacher: Remedial: Enrichment: Reflection: Homework:


P

Learning and Teaching Support

Material (LTSM)

2

Managing change and challenges in the business environment 1. Read the following information and complete the activities that follow. A. Managing the challenges It is clear from the discussion in Chapter 1 that there are many challenges from

the macro-environment that businesses have to face. No business could exist without a strategy for dealing with the influences and changes that originate in the macro-environment. We have learned that there must be a management strategy for the overall operations and day-to-day running of the business, and now it is clear that it is vital that there should also be a strategy for the business as a whole in its environment. Management must keep the business in tune with its macro-environment and must constantly realign business operations as changes happen in this environment. Management has to devise strategies to deal with environmental change by using the process of change management.

In Grade 11 we defined the concept of change management and showed how it

is an integral part of effective business management. We mentioned that management must understand how change affects the business and must know when and how to set the change process in motion.

I. A change process should include the following steps: • identify and define the need for change • clearly state the desired outcome or result of the change process • identify the causes that necessitated the need for change • choose a change technique • plan for implementation • implementation • evaluation and follow up Closely related to change management is the important management function

of planning, and more specifically, strategic planning. Strategic plans are the plans designed to ensure that the business is aligned with the changing external environment. These plans are formulated by top management. Strategic planning can be defined as the process of reconciling the organisation’s resources (internal environment) with the threats and opportunities caused by changes in the external environment.


(i) To do strategic planning in an unpredictable environment, management

has to ask itself three questions: • Where are we now? • Where do we want to go? • How will we get there? It is very important to note that strategic planning is not a once-off activity,

but it is a process which needs to be monitored and evaluated to ensure that the organisation reaches it long-term goals.

(ii) The characteristics of strategic planning are: • Strategic planning is an ongoing activity, a process. • It requires well-developed conceptual skills and is performed by top

management with input from managers at other levels. • It is future oriented. • It concerns itself with the business’ vision, mission, long-term goals and

strategies. • It aims at integrating all the management functions. • It focuses on opportunities or threats that may arise and that may be dealt with

by using the business’ resources. (iii) The process of strategic planning consists of the following interdependent

components: • Formulating a vision The vision portrays the dream that the organisation has for the future,

promotes change and provides the basis for a strategic plan. • Formulating a mission statement The mission statement aligns the organisation with its dream or vision in terms

of its products, market and technology and answers the following questions: What is our business? Who is our client? How will we provide this product or service?

• Evaluating the organisation’s internal capabilities. Identify strategically important strengths and weaknesses on which the

organisation should base its strategy. • Assessment of the external (macro) environment Select critical environmental variables and anticipate changes and prepare in

advance for these changes. • Choosing a strategy This depends on an organisation’s mission statement and long-term goals and

must be based on a core idea of how the organisation can best compete in the marketplace.


Management must ensure that strategic goals are: • measurable • acceptable to those who have to implement them • flexible enough to allow changes if necessary • motivating to all stakeholders • consistent Once this process has been completed, management will have a formal

document which will cover the following important aspects in terms of how to deal with the external environment:

• Key issues for the business over the next three to five years • How to deal with these issues • The specific objectives that need to be achieved • The teams and/or individuals accountable for achieving each objective II. The external, internal and stakeholder analysis information A business can ‘outperform’ its rivals or competitors only if it can establish a

difference which it can maintain or preserve and this is the essence of strategic planning – choosing to perform activities differently from its rivals.

Food for thought “A corporation without a strategy is like an airplane weaving through stormy skies, hurled up and down, slammed by the wind, lost in the thunder-heads. If lightning or crushing winds don’t destroy it, it will simply run out of gas.” Alvin Toffler

he King Report 2002 deals with corporate governance in

hese issues all relate to planning.

TSA. This report states that the board of directors is responsible for establishing a vision, mission and values for the organisation as well as approving goals, strategy and policy. T


2. FE Textiles is a young South African company producing outdoor clothing. It

was started by two friends, both in their twenties, Piet and Koos, who love the outdoors. They realised that there was an opportunity to manufacture clothes for the adventurous, young consumer market. Their clothes are colourful and funky, yet strong and reliable, and their target market is young people in the age group of 16 to 30. The clothes cater for outdoor activities such as rock-climbing, abseiling, horse-riding, skateboarding, canoeing and hiking. They are based in Welkom in the Free State and distribute the clothes mainly in the Free State. The management of FE Textiles do not have any previous business experience, and, although their business is doing well and they employ 180 people, they sometimes tend to focus too much on the design of the clothes than on managing the company to its full potential. They have done some short business courses, but they realise there is still much for them to learn about management functions and the business environment.

A friend of yours who spends a lot of time outdoors with the owners of FE

Textiles has told you about their company and how they manage the business on a ‘day-to-day’ basis, so that they need help to plan for the changes as mentioned in chapter 1. They are concerned about the future of their company and have come to you for help.

In your groups, develop a strategic plan for FE Textiles that they can use to

respond to the changes and challenges that may confront the company in the next three to five years, according to the article and questions of chapter 1.

The following block may help you with your answer:

Remember: Strategic goals are: • measurable • acceptable to those who have to implement them • flexible enough to allow changes if necessary • motivating to all stakeholders • consistent. A strategic plan is a formal document which will cover the following

important aspects in terms of how to deal with the external environment: • Key issues for the business over the next three to five years • How to deal with these issues • The specific objectives that need to be achieved • The teams and/or individuals accountable for achieving each objective • The external, internal and stakeholder analysis information. The essence of strategic planning – choosing to perform activities

differently to one’s rivals.


Name: Grade: No.: 2

CHECKLIST: TEACHER ASSESSMENT 1 2 3 4 5 6 7

MA

RK

S

12.1.2 Devise strategies for how a business can respond to the challenges of the macro business environment, critically evaluate such strategies and make recommendations as required.

•

The group could devise strategies for how FE Textiles can respond to the challenges of the macro- business environment.

• The group could critically evaluate the strategies they devised.

• The group could make recommendations to FE Textiles.

Comments:

TOTAL MARKS


Do you as the teacher the have an opinion on this matter?

2.9 ISO = International Standards Organisation. ISO 9001 2000:

ISO9001 applies to all types of organisations. It doesn’t matter what size they are or what they do. It can help both product and service- oriented organisations achieve standards of quality that are recognized and respected throughout the world.

ISO 9001 2000 has replaced the old ISO 9001 1994 standard. In addition, the old ISO 9002 1994 and ISO 9003 1994 quality standards have been discontinued. They are now obsolete! If a company is now ISO 9001 1994 certified, they are going to have to update their quality management system in order to meet the new ISO 9001 2000 requirements. And if they are now ISO 9002 or ISO 9003 certified, they are going to have to become ISO 9001 2000 certified.

ISO 14001:

An environmental management system that controls an organisation’s activities that have, or could have, an impact on the environment. The key task of ISO14001 is to identify significant environmental impacts, and the elements of operations, materials or products that could cause these impacts.

The global market expects organisations to adhere to high standards. The ISO standards are acknowledged and accepted all over the world and are a good indication of the corporate governance within organisations. Corporate governance addresses the management of the company, its supervision and the accountability to shareholders and other stakeholders.

2 ASSIGNMENT Managing change and challenges in the business environment (12.1.2) 1. Learners read the information and complete the activities that follow. 2. Ideally learners should work in groups, developing a strategic plan for FE

Textiles in response to the changes and challenges that may confront the company in the next three to five years.


http://www.praxiom.com/iso-9001.htm

They could use the industry dealt with in the previous chapter again as learners would be aware of the changes and implications in this industry after completing the previous chapter.

The following are steps to take when developing a strategic plan. It can be discussed with the learners, but they should have gained the knowledge in Grade 11:

The process of strategic planning consists of the following components that

are interdependent: • Formulating a vision The vision portrays the dream that the organisation has for the future,

promotes change and provides the basis for a strategic plan. • Formulating a mission statement The mission statement aligns the organisation with its dream or vision in terms

of its products, market and technology and answers the following questions: What is our business? Who is our client? How will we provide this product or service?

• Evaluate the organisation’s internal capabilities. Identify strategically important strengths and weaknesses on which the

organisation should base its strategy. • Assessment of the external (macro) environment Select critical environmental variables and anticipate changes and prepare in

advance for these changes. • Choosing a strategy This depends on an organisation’s missions statement and long-term goals and

must be based on a core idea on how the organisation can best compete in the marketplace.
