GRADE 11 NOVEMBER 2015 BUSINESS STUDIES · NATIONAL SENIOR CERTIFICATE GRADE 11 NOVEMBER 2015 BUSINESS STUDIES MARKS: 300 TIME: 3 hours This question paper consists of 12 pages. IBUSTE

NATIONAL SENIOR CERTIFICATE

GRADE 11

NOVEMBER 2015

BUSINESS STUDIES

MARKS: 300 TIME: 3 hours

This question paper consists of 12 pages.

*IBUSTE*

2 BUSINESS STUDIES (EC/NOVEMBER 2015)

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INSTRUCTIONS AND INFORMATION Read the following instructions carefully before answering the questions. 1. This question paper consists of THREE sections. SECTION A: COMPULSORY SECTION B: Consists of FIVE questions.

Answer any THREE questions of the five questions in this section.

SECTION C: Consists of FOUR questions.

Answer any TWO of the four questions from this section.

2. Take the time allocation into account when answering questions. 3. Read the instructions for each question carefully and take particular note of

what is required.

4. Except where other instructions are given, answers must be written in FULL

SENTENCES.

5. Number the answers correctly according to the numbering system used in

this question paper.

6. Use the mark allocation and the nature of each question to determine the

length of each answer.

7. Start each answer to EACH question on a new page, for example;

QUESTION 2 – NEW PAGE, QUESTION 3 – NEW PAGE, etc.

8. Use the table below as guide to mark and time allocation when answering

each question.

SECTION QUESTION MARKS TIME A Multiple-choice questions

Choose the correct word Matching items COMPULSORY

1 40 30 minutes

B Answer any THREE of the five questions.

2 60 30 minutes 3 60 30 minutes 4 60 30 minutes 5 60 30 minutes 6 60 30 minutes

C Essay questions Answer any TWO of the four questions.

7 40 30 minutes 8 40 30 minutes 9 40 30 minutes

10 40 30 minutes TOTAL 300 180 minutes

(EC/NOVEMBER 2015) BUSINESS STUDIES 3


SECTION A (COMPULSORY) QUESTION 1 1.1 FOUR possible options are provide as answers to the following questions.

Choose the correct answer and write only the letter (A–D) next to the question number (1.1.1–1.1.10) in the ANSWERBOOK, for example 1.1.11 E.

1.1.1 Economic crimes include … A piracy. B shoplifting. C money laundering. D armed robbery. 1.1.2 Which of the following does not form part of marketing mix? A Price B Product C Personnel D Place 1.1.3 Pauline’s Pizza is an example of a business which forms part of the

… sector. A food and beverage B primary C secondary D tertiary 1.1.4 A trade union’s main function is to … A negotiate on behalf of the employees for better pay and

conditions. B organise trade agreements with other countries. C be a political mouthpiece for the country. D organise strikes and go-slows and other forms of protest. 1.1.5 Kentucky Fried Chicken and McDonalds are examples of … A chain stores. B franchises. C retailers. D outsourcing businesses. 1.1.6 The biggest trade union in South Africa is known as the … A Congress of South African Trade Unions. B Conference of South African Trade Unions. C South African Democratic Teachers Union. D Congress of Trade Unions in South Africa.



1.1.7 … is an example of a secondary sector industry. A Oil drilling B Milk production C Yoghurt production D An orchard garden 1.1.8 Pro bono work ... A is a means of solving problems or dealing with difficult

situations. B is work undertaken without charge, especially for a client on

low income. C means things given in order to help achieve or provide. D is training, counselling and guiding someone who is less

experienced in something. 1.1.9 The manufacturing of large quantity of a standardised article can be

identified as … production. A batch B mass C job D product 1.1.10 What can employees claim in the event of a work related accident? A Fidelity insurance B Employees insurance C Road Accident Fund D Workmen’s compensation (10 x 2) (20)



1.2 Fill in the missing word(s) for each of the following. Write only the word(s)

next to the question number (1.2.1–1.2.5) in the ANSWER BOOK. 1.2.1 A price deduction given to customers who buy products or services

out of season is known as a … discount. 1.2.2 Means to ensure that a customer base expands and that the service

quality improves. 1.2.3 The … is often used to check if a particular action is ethical. 1.2.4 VAT, SITE and PAYE registration must be completed through … 1.2.5 The … is the name of the act that was introduced to protect

consumers and help prevent them from becoming over-indebted. (5 x 2) (10) 1.3 Choose a description from COLUMN B that matches a term in COLUMN A.

Write only the letter (A–F) next to the question number (1.3.1–1.3.5) in the ANSWER BOOK, e.g. 1.3.6 F.

COLUMN A COLUMN B 1.3.1 Economic

dilemma A Giving a product an initial high price to attract

the top level of the market 1.3.2 Critical path

method B This chart shows how the critical work

elements, called tasks, of a project are related to one another and to the project as a whole

1.3.3 Skimming C When every part of the business works so well

together that they achieve greater outputs 1.3.4 Induction D A step-by-step technique for process planning 1.3.5 Work

Breakdown Structure

E The process by which an employee, whether new to the business or transferred from another position, is introduced to the new job

F Balancing the unlimited needs and wants of

society with the limited resources available to satisfy them

(5 x 2) (10) TOTAL SECTION A: 40



SECTION B Answer any THREE questions from the five questions in the ANSWER BOOK. The answers to EACH question must be on a NEW page. QUESTION 2: BUSINESS ENVIRONMENT 2.1 “Power relationships can make or break a business.” Explain and support this statement with applicable examples. (6) 2.2 Discuss the impact of changes in the income levels of consumers on the

business sector. (4 x 2) (8) 2.3 Distinguish between mergers, takeovers, alliances and acquisitions. (3 x 2) (6) 2.4 Briefly describe how social, cultural, and demographic issues affect business

operations. (6) 2.5 “Outsourcing has become more popular over the years.”

Discuss FIVE advantages of outsourcing. (10)

2.6 “Every workplace manager should try to ensure that accidents are prevented

in the workplace.” Provide FIVE measures managers can put in place to ensure that accidents do not happen in the workplace. (5 x 2) (10)

2.7 “The importance of the primary sector industries which feeds the sub-sectors

of the secondary sector is over-emphasised in the economy of a developing country, such as South Africa.” Explain this statement by comparing the links between agriculture, forestry, fishery and mining sub-sectors of the primary and secondary sectors in the South African economy. (14)

[60]



QUESTION 3: BUSINESS VENTURES 3.1 Tabulate the differences between a sole proprietorship, close corporation

and private company in terms of the following criteria: 3.1.1 Number of founders (3 x 2) (6) 3.1.2 Liability for the business debts (3 x 2) (6) 3.1.3 Taxation (3 x 2) (6) 3.2 Discuss THREE contractual implications of leasing for the business

undertaking. (3 x 2) (6) 3.3 A business plan is a written document describing the nature of the business,

the sales and marketing strategy and the financial background, and containing a projected profit and loss statement. A business plan is also a road map that provides directions so a business can plan its future and helps it avoid bumps in the road.

3.3.1 A business plan must be transformed into an action plan.

Define the action plan. (2)

3.3.2 Explain the steps that must be followed to transform a business plan

into an action plan. (5 x 2) (10) 3.4 List and explain FIVE functions of the trade union. (5 x 2) (10) 3.5 Name FIVE things to avoid in a question and answer session. (5 x 2) (10) 3.6 What is the difference between verbal and non-verbal formats of presenting

business information? (4) [60]



QUESTION 4: BUSINESS ROLES 4.1 “Force field analysis is a decision making technique that can be used in any

business enterprise.” Name SIX steps to follow when using this technique. (6)

4.2 Name and explain stages that a business management can follow in order to

deal with crises. (10) 4.3 Briefly outline FIVE reasons for resisting change. (5 x 2) (10) 4.4 Name FIVE important characteristics of entrepreneurial businesses. (5 x 2) (10) 4.5 “Micro lenders are not regulated by South African Banking Act.”

Evaluate the nature and function of micro lending. (4)

4.6 Suggest FIVE strategies that can be used to manage stress. (5 x 2) (10) 4.7 Describe the purpose of the Labour Relations Act, 1995 (Act 66 of 1995).

(5 x 2) (10) [60]



QUESTION 5: BUSINESS OPERATIONS 5.1 Read the case study below and answer the questions that follow: ADVERTISING IS MY JOB

James has been acting as the financial manager for six months when it was decided to advertise the job. His manager prepared the advertisement without specifying the required qualifications or experience needed for the job. It was therefore unclear what the selection criteria would be. The line manager decided to advertise the job internally through the notice board to the financial staff. James was the only applicant and was given the permanent post without an interview.

5.1.1 Suggest TWO alternative methods of recruitment the business could

have used to advertise this post. (4) 5.1.2 The business made use of internal recruitment. Explain another

method they could have used. (4) 5.1.3 Why is it necessary to specify qualifications and experience needed

for a job in an advertisement? (4) 5.1.4 Differentiate between a job description and job specification. (4) [16] 5.2 Match each of the following descriptions to the concepts given below.

Write ONLY the number of the question and the concept next to it.

Induction; Recruitment; Placement; Contract of employment; Selection 5.2.1 Provides the conditions of employment, including remuneration and

working hours.

5.2.2 Action of making a decision after interviewing a number of

candidates.

5.2.3 The process of finding suitable employees to perform work. 5.2.4 Introducing the candidate to the policies and procedures and work

processes of the business.

5.2.5 Process of allocating a new employee to a vacant post. (5 x 2) (10) 5.3 Which details should be included in an employment contract? (10) 5.4 Name TWO quality control bodies that ensure that the quality of manufactured

goods is maintained. (2 x 2) (4)



5.5 Read the following case study and answer the questions that follow: Beaux-Arts was founded in 1996 by Linda Lloyd in Kempton Park. Linda

started an art and craft service offered to schools for children from three years of age. She operated as a pilot franchise for a year and thereafter became a member of the Franchise Association of South Africa. By June 2001 she had franchises servicing schools in 101 cities, towns and municipalities throughout the country. She does the training herself, which includes product training, business and marketing skills. Franchisees and their employees also receive on-going training by specialists in their field of pottery, arts and crafts to ensure the use of appropriate skills.

5.5.1 Discuss TWO advantages and TWO disadvantages of a franchise.

(4 x 2) (8) 5.5.2 Linda wants to outsource some activities undertaken by her as a

franchisor. Recommend ONE activity she could outsource and supply a reason for your choice. (4)

5.5.3 Suppose you applied to purchase the right to own a franchise from

Linda, you want to assume all the responsibility for the business yourself. Which form of ownership would you choose? Explain why. (8)

[60]



QUESTION 6: MISCELLANEOUS 6.1 6.1.1 List FOUR causes of conflict in an organisation. (8) 6.1.2 Which strategies can be used to resolve conflict? (8) 6.2 All successful teams share the same four essential elements. Write down

the FOUR elements that make a team successful. (8) 6.3 State any FOUR characteristics of good governance as laid down by the

King Code III. (4 x 2) (8) 6.4 “Packaging must distinguish a product from its competitors’ products.”

Briefly name and describe FOUR different forms of or types of packaging. (4 x 3) (12)

6.5 Identify the problem solving techniques being described below: 6.5.1 Gather information by using a selected panel based on their

knowledge of a specific topic or target area; seek to bring about agreement from differing views by means of a questionnaire. (2)

6.5.2 Method used to list, discuss and assess the various advantages and

disadvantages of a proposed change. (2) 6.6 After all the interventions and meetings, everyone accepted Joseph as a

team member. Everyone is focusing on the big game in the next two weeks. As time flies past, everyone is starting to stress about the game. The coach realised that he needs to teach the team on how to manage stress.

6.6.1 Why is it important for the coach to manage stress levels? (5 x 2) (10) 6.7 Define collective bargaining. (2) [60] TOTAL SECTION B: 180



SECTION C Answer any TWO questions from this section. QUESTION 7 Determining a suitable price for a product is one of the key success factors for an enterprise. Due to frequent changes that occur in the business environment, business enterprises sometimes need to adapt their prices in order to either retain existing customers, or attract new customers. Analyse and discuss this statement under the following headings: Pricing Techniques, Pricing Strategies, Price Determination and Factors influencing Price [40] QUESTION 8 Many businesses are facing socio-economic issues directly or indirectly. This speaks to their corporate social responsibility. Discuss the impact of THREE of these contemporary socio-economic issues on a business’s operations: e.g. low income levels; poverty; inflation; demographic/cultural factors and population growth; unemployment and/or economic crime. Recommend possible solutions or contributions that businesses can make to deal with these socio-economic issues. [40] QUESTION 9 A good example of franchising is Kentucky Fried Chicken. They are found in almost every city around the country. A small business owner buys the right to sell the goods and services of a large well established company. The person buying a franchise is known as the franchisee and the person selling the right is known as the franchisor. Elaborate on the above statement and in your discussion include advantages and disadvantages of both franchisor and franchisee and the franchising contract. [40] QUESTION 10 The Labour Relation Act (Act 66 of 1995), the Employment Equity Act 55 of 1998 and BCEA 75 of 1997 was put in place to redress the imbalances of the passed in the labour force. Discuss the nature and purpose of each Act and explain the impact of it on business. [40]

TOTAL SECTION C: 80 GRAND TOTAL: 300

NATIONAL SENIOR CERTIFICATE

GRADE 11

NOVEMBER 2015

BUSINESS STUDIES MEMORANDUM

MARKS: 300

This memorandum consists of 26 pages.



NOTES TO MARKERS 1. Candidates’ responses must be in full sentences for SECTIONS B and C.

This would depend on the nature of the question.

2. A comprehensive memorandum has been provided, but this is by no

means exhaustive. Due consideration should be given to an answer that is correct but:

x Uses a different expression from that which appears in the memorandum

x Comes from another source, x Is correct and original, and x Relates to another applicable topic. NOTE: There are no alternative answers in SECTION A.

3. Take careful note of other relevant answers provided by candidates and

allocate marks accordingly.

SECTION B 4. 4.1 If for example, FOUR facts are required, mark the candidate’s

FIRST FOUR responses supplied by the candidate and ignore the rest of the responses. Indicate this by drawing a line across the unmarked portion or use the word CANCEL.

4.2 If two facts are written in one sentence, award the candidate FULL

credit.

4.3 If candidates are required to provide their own examples/views,

brainstorm this to finalise alternative answers.

4.4 All questions that require candidates to explain/discuss/describe will

be marked as follows:

x Heading (2 marks)

x Explanation (1 mark) or as indicated in the memorandum

4.5 All questions that require candidates to name/list/mention, etc. the

answers of the candidates can be in phrases and not necessarily in full sentences.



SECTION C 5. 5.1 All essay questions should be marked according to the rubric at the

end of each essay question.

5.2 The components of insight are indicated at the end of the suggested answer of each question. NOTE: The components may vary for each question.

5.3 Mark all relevant facts until the MAXIMUM marks for a subsection

have been obtained. Write MAX after the maximum number of marks has been obtained.

5.4 At the end of each essay indicate the allocation of marks for facts

and marks for insight as follows:

CONTENT MARKS Facts 32 L (Layout) 2 A (Analysis) 2 S (Synthesis) 2 O (Originality) 2 Total marks 40 5.5 If the candidate identifies/interprets the question INCORRECTLY,

then he/she still obtains marks for insight.

5.6 Take particular note of the repetition of facts. Indicate with an R. 5.7 Subtotals to questions must be written in the right margin. Only the

total for each question should appear in the left margin next to the appropriate question.



SECTION A (COMPULSORY) QUESTION 1 1.1 1.1.1 C √√ 1.1.2 C √√ 1.1.3 C √√ 1.1.4 A √√ 1.1.5 B √√ 1.1.6 A √√ 1.1.7 C √√ 1.1.8 B √√ 1.1.9 B √√ 1.1.10 D √√ (10 x 2) (20) 1.2 1.2.1 Seasonal discount √√ 1.2.2 Customer Base √√ 1.2.3 Code of Ethics √√ 1.2.4 SARS (South African Revenue Services) √√ 1.2.5 Consumer Protection Act √√ (5 x 2) (10) 1.3 1.3.1 F √√ 1.3.2 D √√ 1.3.3 A √√ 1.3.4 E √√ 1.3.5 B √√ (5 x 2) (10) TOTAL SECTION A: 40



SECTION B QUESTION 2: BUSINESS ENVIRONMENT 2.1 POWER RELATIONSHIP (a) x In South Africa, power relationships are centred on Broad Based

Black Economic Empowerment (BBBEE) and the empowerment of employees. √

x Companies wanting to do business with government need to score adequate points on the BBBEE checklist. √

x These relationships can impact on businesses in all three business environments and include: √

(i) Strategies alliances (ii) The persuasion of large investors (iii) The influence of company representatives (b) Power relationships between government and private enterprise can

be very lucrative √√, e.g. provision of infrastructure to Eskom. √ (Any 2 x 3) (6)

2.2 Impact of changes in the income levels: x Changes in the consumer’s income level impact on the spending patterns

of the households. √√ x During a recession, the general level of income in a country drops as

businesses are unable to sustain salary and wage increases. √√ x Retrenchments, lower salaries and less perks follow. This influences the

consumers’ ability to buy products and services. √√ x Since 1994 there has been a steady increase in the spending power of

the black middle income group and some marginalised families have been able to rise above the breadline since the increase in social grants, which were included in 2008. √√ (4 x 2) (8)

2.3 Distinguish between mergers, takeovers, alliances and acquisitions. x Merger

o Occurs when two or more companies combine to form a new company √√

x Acquisition o Occurs when a business acquire the shares of another company

acquired business continues to operate as a subsidiary of the acquiring business. √√

o Also known as a takeover – when it is against the business’s will. √√ x Alliance o Business starts a venture with another business. √√ o A type of partnership between the two businesses. √√



2.4 Society, culture and demographics are in a constant state of change.√ This

affects the level of available skills √ and the makeup of the workforce in terms of age, gender and race. √ As the population ages, valuable skills and experience are lost and will need to be replaced. √ South Africa is shifting from a labour-based market to a knowledge market √ and this requires more skilled workers with higher levels of education and training. √ (6)

2.5 Advantages of outsourcing: x Access to expertise √ e.g. service providers are specialists in their field

and often have equipment and technical expertise. √ x Concentrating on core processes rather than the supporting ones √ e.g.

IT, allows an organisation to focus on and strengthen their core business process. √

x Competitive advantage √ e.g. allows the organisation to develop new competencies and skill-sets pertinent to the core processes, which can be used as a competitive advantage. √

x Reduced costs and streamlining cash flow √ e.g. reduces the company’s financial commitment to technology, infrastructure and people is reduced. √

x More effective and flexible management √ e.g. the service provider is responsible for managing its workforce, which allows the organisation the budget and opportunity to hire the best people to run its core functions. √

x Time zone difference √ e.g. it allows the organisation to provide around the clock customer support.

x Risk distribution √ e.g. rather than use the company’s operational time and money, the manufacturer outsources the translation function to a vendor, giving itself the freedom to focus on other core activities of the business. √ Advantages (Any 5 x 1) (5)

Examples (5 x 1) (5) (10) 2.6 To prevent accidents from happening in the working place:

x Train workers to work with equipment. √√ x Provide workers with protective clothing. √√ x Put up safety procedures in working place. √√ x Clearly mark the exits (show signs). √√ x First aid kit is fully stocked to all workers in the department. √√ x Have a fire procedure in place as well as fire extinguishers at hand. √√ x Encourage safety and tidiness in the workplace. √√ (Any 5 x 2) (10)



2.7 Yes √√ x The agriculture sub-sector of the economy is largely influenced by

environmental, institutional and political factors in the macro environment. √ Agriculture is currently the biggest contributor to the GDP and jobs are provided in this sub-sector. √ South Africa exports large quantities of agricultural products which helps the balance of payments. √ (3)

x Forestry is divided into two categories namely: √ Indigenous forests which add value to the country’s beauty, wildlife and environment. √ Commercial forests which provide jobs and economic opportunities for many people, especially in the rural areas. √ (3)

x South Africa has a well-established fishery sector and is net exporter of fishery products. √ The fishing industry provides an income to a large part of the population √ in both formal and informal sector of the economy. √ (3)

x In the mining sector, South Africa is the world’s third largest producer of gold and the fourth largest diamond industry in the world. √ The mining sector uses considerable services and inputs from the domestic economy √ and it supplies many associate industries with mining products. √ (3)

(14) [60]



QUESTION 3: BUSINESS VENTURES 3.1 Criteria Sole

proprietorship Close

corporation Private company

3.1.1 Number

of founders

1 √√ Between 1 and 10 √√

At least 1, no maximum √√

3.1.2 Liability

for business debts

Owner has unlimited liability for business debts √√

Members have limited liability for business debts √√

Shareholders have limited liability for business debts √√

3.1.3 Taxation Profits taxed

through owner’s income tax √√

Business pays tax in form of company tax √√

Business pays tax in form of company tax √√

3 facts per criteria x 2 marks each (18) 3.2 Contractual implications of leasing: x Document is known as lease agreement. √√

x Must be signed between lessee and lessor. √√ x Normally for a specified period of time, but could also be open-ended. √√ x Stipulates that the assets become the property of the lessee after a

certain period of time. √√ x Lessor agrees to let the lessee assume use of the business for a given

period of time in exchange for an agreed fee. √√ x Content of contract: √√

o Names of parties o Duration of agreement o Conditions of renewal o Any specified conditions for default o Details of costs, up-front payments and instalments

Any other acceptable contractual implication of leasing. Max 6 (6) 3.3 3.3.1 Action Plan x A record of activities showing how those activities will be

organised to achieve the goals set out in the business plan. √√ x A document that identifies the activities and tasks required to get

the work done and assigns responsibility. √√ Any other acceptable definition/description of an action plan.

First fact x 2 marks Max 2 (2)



3.3.2 Steps to follow to transform a business plan into an action plan. x Summary of your vision, mission, long-term goals √ and short-

term objectives. √ x Work breakdown structure √ – identifies what will be done,

organises the plan into manageable stages that can be carried out individually or as part of a group of tasks. √

x Action step chart √ – provides more detail on the Work Package level of the WBS, it provides an outline to what must be done by who and when must it be finished as well as the expected outcome. √

x Timelines indicating key targets and deadlines √ – indicate dates, use a series of dates on a linear scale to indicate the due date or date of completion for each of the short-term objectives and tasks. √

x Gantt chart √ – using information on Action Step Chart and timeline to develop Gantt chart, clearly shows the activities against dates. √ (5 x 2) (10)

3.4 Functions of the trade union x Representing the interest of general society and minority groups through

media and negotiations. √√ x Influencing government decisions. √√ x Influencing management for better working conditions, salaries and

benefits. √√ x Representing employees corporately and individually. √√ x Improving material benefits of their members. √√ x Establishing minimum economic and legal conditions/influencing economic

policy and law. √√ x Playing a role as moral institutions that will uplift the weak and oppressed

and give them the dignity and justice they deserve. √√ x Protect workers from discrimination and abuse. √√ x Protecting workers from unfair labour practices and unfair dismissal. √√ x Take legal action on behalf of members when necessary. √√

Any other acceptable function of the trade union. (Any 5 x 2) (10) 3.5 x Avoid having a standard response ready to answer most questions. √√

x Do not make a second presentation when answering a question. √√ x Do not argue and try to prove that you are right or know best. √√ x Do not get aggressive or defensive. √√ x Take time to think before answering a difficult question. √√ x Be prepared to admit that you do not have the answer to a question. √√ x Do argue with someone who does not agree with you. √√

Any other acceptable avoidance based on the question answer session. (Any 5 x 2) (10)

3.6 Verbal format uses words. √√

Non-verbal uses written information such as reports or graphs. √√ (4) [60]



QUESTION 4: BUSINESS ROLES 4.1 Force field analysis steps to follow when using:

x Identify all possible causes of action. √ x Taking each alternative cause of action in turn, identify and write all

advantages and all disadvantages. √ x Assign a score to each force from one (weak) to five (strong). √ x Draw a diagram showing the forces for and against change.√ x Considering each force-field diagram, you can than choose most

appropriate alternative. √ x Once you have made a decision, you can use the force-field diagram to

work out how to make most of the advantages identified. √ Accept any relevant step on how to use the technique. (6)

4.2 Stages to deal with crises:

x Emergency plan √ – should be prepared in advance as part of a crisis management. The purpose is to minimise the impact of foreseeable event and to plan how the business will resume normal operations after the crises. √

x Identify the type of crises √ – e.g. tight deadlines, financial crisis, life threatening events, etc. √

x Respond to the event √ – the spokesperson for the business needs to prepare a public statement (if necessary) to inform the public about the crisis situation. √

x Evaluate the damage or situation √ – media and stakeholders should be informed about what the business is going to do to turn everything back to normal. √

x Feedback on what worked and on what did not work √ – management evaluate how effective the emergency plan throughout the crises. √

Any other relevant answer to the stages of the crisis. Description (5 x 1) (5)

Explanation (5 x 1) (5) (10) 4.3 Reasons for resisting changing:

x Loss of security: √ workers feel secure with what they know and with an old manager. √

x Fear of economic loss: √ workers may disapprove a new production process because they feel that it will lead to retrenchment. √

x Loss of power and control: √ when a business restructures, some people may not have as much power as they had before. √

x Reluctance to change old habits: √ people get into the habit of making the same decisions. √

x Awareness of weakness in the proposed change: √ when employees resist change. √

x Peer pressure: √ when groups of people pressurise others to resist change. √

x Time and scope of change: √ change should happen when people are receptive and well prepared for it. √

x Misunderstanding: √ when management proposes a change that benefits everyone, people may resist because they do to fully understand its purpose. √

Accept any relevant reason for resisting change. (Any 5 x 2) (10)



4.4 Characteristics of an entrepreneurial business.

x Business encourages new ideas √ and innovation. √ x There is culture of openness √ and transparency. √ x The business is adaptable √ and flexible to change. √ x The business is prepared √ to take calculated risks. √ x There is an optimistic mood in the organisation √ where people see

opportunity. √ x The working environment is energetic, √ dynamic and flexible. √ x The business is open to input √ and ideas from outside environment. √

Accept any relevant characteristic of entrepreneurial business. (5 x 2) (10) 4.5 Micro lenders are not regulated by the South Africa Banking Act.

x The practice of granting small loads to those in need. √ x For people who cannot gain access to credit granted by banks.√ x Many people fail to meet the minimum credit requirements set by

financial institutions. √ x Interest rates can be extremely high as they are not regulated.√ x Risk is very high, no proof that they can pay back the loan. √

Accept any relevant fact to the nature and function of micro lending. (Any 4 x 1) (4)

4.6 How to manage stress

x Become aware of your stressors. √√ x Recognise what you can change. √√ x Reduce the intensity of your emotional reactions to stress. √√ x Learn to control your physical reactions to stress. √√ x Build your physical reserves. √√ x Maintain your emotional reserves. √√

Accept any relevant ways of managing stress. (Any 5 x 2) (10) 4.7 Purpose of the Labour Relations act, 1995

x Advance economic development, social justice, labour peace and the democratisation of the workplace. √√

x Formulates industrial policy and promotes orderly collective bargaining. √√

x Promotes the effective resolution of labour disputes. √√ x Allows for the formation of workplace forums. √√ x Incorporates third party interventions by trade unions and the CCMA. √√

x Provides a framework within which workers and trade unions, employers and employers’ organisations can collectively bargain to determine wages, terms and conditions of employment and other matters of mutual interest. √√

Any other purpose of the Labour Relations Act. (Any 5 x 2) (10) [60]



QUESTION 5: BUSINESS OPERATIONS 5.1 5.1.1 Alternative methods of recruitment x Adverts in the media through newspapers. √√

x Adverts in the electronic media/website. √√ x Employment agencies or consultants. √√ x Verbal announcements by senior staff. √√ x Recommendations by senior employees. √√ x Approaching tertiary institutions for newly qualified recruits. √√

(Any 2 x 2) (4) 5.1.2 External recruitment √√ the business appoints staff from outside the

business. √√ (4) 5.1.3 x Qualifications and experience stipulate the minimum

requirements for the job. √√ x Without this information, unsuitable candidates will apply. √√

(2 x 2) (4) 5.1.4 Job description and job specification

x Job description describes the job in terms of tasks and requirements including duties and responsibilities. √√

x Job specification describes the requirements for the employees’ qualifications, skills and abilities. √√ (2 x 2) (4)

5.2 Human resource 5.2.1 Contract of employment √√ 5.2.2 Selection √√ 5.2.3 Recruitment √√ 5.2.4 Induction √√ 5.2.5 Placement √√ (5 x 2) (10) 5.3 Details in the employment contract x Name and address of the employer and the employee. √√

x Detailed job description. √√ x The employee’s place of work. √√ x Basic salary, working hours, and overtime. √√ x Deductions from the salary – income tax, pension, UIF etc. √√ x Housing and car allowances. √√ x Termination of contract. √√ x Code of conduct. √√

Any other relevant answer related to employment contracts. (Any 5 x 2) (10)

5.4 TWO quality control bodies x South African Bureau of Standards (SABS) √√

x The Council for Scientific and Industrial Research (CSIR) √√ x International Standards Organisation ISO 9000 √√ x South African National Standards √√ x South African Quality Institute √√ (Any 2 x 2) (4)



5.5 5.5.1 Discuss TWO advantages and TWO disadvantages of a franchise. Advantages of a franchise business: x The business is a proven one. Other successful franchises can be

studied before making a commitment. √√ x The business will use a recognised brand name and

trademarks. √√ x The franchisor gives the business support in the form of training;

setting up the business and how to run the business. √√ x Can obtain exclusive rights in certain geographical area. √√ x Financing the business may be easier. √√ x Relationships with suppliers have already been established. √√

(Any 2 x 2) (4) Disadvantages of a franchise: x Costs may be higher than expected. √√

x There may be restrictions in the franchise agreement on how you can run the business. √√

x The franchisor may go out of business. √√ x Other franchisees could give the brand a bad reputation. √√ x May be difficult to sell the business as a franchise. √√ x All profits are usually shared with the franchisor. √√ (Any 2 x 2) (4) (8)

5.5.2 Recommendation on outsourcing and reason for your choice x Linda could outsource the account of her business. √√

x If the business does their own accounts they will need auditors, a debt collector and will have to incur the costs of their salaries. √√

x It is less risky if qualified accountants are contracted to do accounts. √√ Accept any suitable relevant answer. (Any 2 x 2) (4)

5.5.3 Which form of ownership would you choose? Explain why. x Sole trader √√

x The business does not require much capital √√ x In a sole trader the owner makes all the decisions. √√ x All profits are kept by the owner. √√ x Formation is simple and easy. √√ (Any 4 x 2) (8)

[60]



QUESTION 6: MISCELLANEOUS 6.1 6.1.1 Causes of conflict in an organisation x Scarcity of resources. √√

x Different attitudes, values, and perceptions. √√ x Disagreements about needs, goals, priorities, and interest. √√ x Poor communication. √√ x Poor or inadequate organisational structure.√√ x Lack of team work. √√ x Lack of clarity in roles and responsibilities. √√ x Lack of understanding of how to get best out of teams. √√ x Inconsistency in leadership decisions. √√

Any relevant answer related to conflict in an organisation. √√ (Any 4 x 2) (8)

6.1.2 Strategies that can be used to try to resolve conflict x Collaborating theory: win-win theory. √√

x Compromising: Win some, lose some theory. √√ x Accommodating: lose-win theory. √√ x Competing: win-lose theory. √√ x Avoiding: no winners-no losers theory. √√ (Any 4 x 2) (8)

6.2 Four elements of successful teams x Purpose and goals √√

x Interdependence √√ x Commitment √√ x Accountability √√ (Any 4 x 2) (8)

6.3 Characteristics of good governance x Discipline √√

x Transparency √√ x Independence √√ x Accountability √√ x Responsibility √√ x Fairness √√ x Social Responsibility √√ (Any 4 x 2) (8)



6.4 Types of packaging - Speciality packaging √ – creates an image of exclusiveness for the

product √ e.g. unique perfumes, jewellery, etc.√ - Re-usable packaging (double use) √ – containers can be used for other

purpose, √ e.g. Plastic bottles can be reused to contain water. √ - Kaleidoscopic packaging √ – certain aspects of the packaging are

changed regularly, √ e.g. changing of packaging of breakfast cereals or collector photos or other images are printed on the packaging. √

- Combination (multiple) packaging √ – several products that are closely related are packed in one container, √ e.g. pencils, ruler and eraser in one container. √

- Packaging for immediate consumption/unit packaging √ – this is suitable for products that are used immediately and the packaging is then thrown away after use, √ e.g. packet of sweets. √ (Any 4 x 3) (12)

6.5 Problem solving techniques 6.5.1 Delphi technique √√ (2) 6.5.2 Force field analysis √√ (2) 6.6 6.6.1 How to manage stress

x Be aware of your stress levels √ – recognise and identify its causes √

x Balance all that you do √ – moderation, stability and order create a balance that helps us to feel calm. √

x Exercise regularly √ – regular exercise has many positive effects √

x Eat a balanced diet √ – stays healthy and helps a person to deal with the demands of modern life. √

x Get plenty of sleep √ – essential for good health and reducing stress in your life. √

x Meditate or do relaxation exercises √ – deep breathing and systematic relaxation of muscles reduce the tension and relieve stress/visualise yourself in a relaxing place. √

x Affirm yourself with positive self-talk √ – replace negative self-talk with positive self-talk, affirm yourself. √

x Do something that you enjoy every day √/spend time with family and friends. √

x Focus on things that you can control √ – it is pointless to worry about things which ate beyond your control √ – it only increases your stress levels/do not procrastinate. √

x Have a set daily routine. √√ Any acceptable method to manage stress levels. (Any 5 x 2) (10)

6.7 Collective bargaining x The process that allows for discussions and negotiations between

management and trade unions to reach agreement on remuneration, working conditions or other issues related to the workplace. √√ Any other acceptable definition for collective bargaining. (2)

[60] TOTAL SECTION B: 180



SECTION C QUESTION 7 Introduction x Price is the second of the four P’s being the policy instrument of the marketing

function. x The price of the product refers to the amount of money that must be paid in

order for the buyer to experience the advantages of the product. (2) Body Pricing techniques A business can adopt different pricing strategies for several reasons, such as: x To try to break into a new market x To try to increase its market shares x To try to increase its profits x To make sure all its costs are covered and a particular profit is earned. Pricing strategies

Strategy Definition Cost-plus pricing

Involves estimating how many products will be produced, then calculating the total cost of producing this output and finally adding a percentage mark-up for a profit.

Penetration pricing

Used when trying to enter a new market. The product is sold at a low price and therefore the sales revenue may be low.

Price skimming

A product that is either a new invention or a new version of an old product is sold on the market at a high price. People will pay this high price. People will pay this because of the newness of this product.

Competitive pricing

This involves putting prices in line with your competitor’s prices or just below their prices.

Promotional pricing

Would be used when you want to price the product at a low price for a period to attract new customers.

Differential pricing

Used when different prices are set for different segments of the market.

Prestige pricing

Prices are artificially high to prove prestige or maintain a certain image. The product is a status symbol.

Odd pricing Used to give the impression that products are cheaper. Discount pricing

Suppliers offer a discount off a price to encourage customers to purchase more of the goods.



Price Determination To determine prices, the business must make sure the customer is happy with price and will buy the product at that price. It is also important to make sure that you can make a profit from selling the product at that price.

The following steps are followed when marketers determine price. x Determine cost price √ x Determining the market price √ x Determining the target market √ x Determining the final price (selling price) √

Factors influencing pricing x Different forms of market √√ x Nature of demand and consumer behaviour √√ x Availability of substitute goods √√ x Fixed prices of products √√ x Normal trade practices, such as allowing discounts √√ x Attitude of distributors √√ x Production and distribution costs √√ (Any 3 x 2) (6) Conclusion x A business should have a pricing policy that will enable it to maintain and

increase profit, maintaining its market, share increase sales and remain competitive.

BREAKDOWN OF MARK ALLOCATION Marks Subtotal Maximum Introduction 2

32

Body Pricing techniques 7

27

Pricing strategies 7 Price determination 7 Factors influencing pricing 6 Conclusion 2 Insight (LASO) Layout 2 Analysis, interpretation 2 Synthesis 2 Originality, examples 2 TOTAL 40 [40]



QUESTION 8 Introduction x Socio-economic issues have a huge impact on businesses. √ x It is in their best interest to try to lessen the impact by understanding these issues

and the challenge that they create. √ x It influences the efficiency of the business, the way products are marketed and

distributed, the level of revenue and the cost of doing business. √ Any other acceptable introduction relating to socio-economic issues. (Any 2 x 1) (2)

SOCIO-ECONOMIC ISSUES Low income levels x Unequal distribution of income in South Africa – gap between rich and poor is

very big. √√ x A very small percentage of people earn huge incomes while the majority of

people are poor. √√ x South Africa is classified by The World Bank as an upper middle income

country. √√ x Poverty leads to a wide range of social and economic problems – poor health,

low standard of living and crime. √√ x Have an indirect influence on the business operations. o Workers are hungry and ill – tend to be demotivated and inefficient – has

implications for the level of productivity and output lower profits. √√ x Have a direct influence on the business operations via the demand for goods and

services o Rich people have money to spend because they had a higher level of

disposable income – creates a demand for the goods and services – stimulates economic growth and generates income for the business. √√

o Lower income levels – decrease in demand for goods/services – fall in turnover and lower profits for business. √√

x Have indirect influence on businesses via the levels of savings and investments o Wealthy people can save a portion of their income and make investments –

money available from banks to finance new businesses or the capital growth of existing businesses and build infrastructure of South Africa. √√

o Low income levels – people spend entire income on basic goods – no savings or investments. √√ Any other acceptable answer relating to income levels as a socio-economic issue. √√ (Any 3 x 2) (6)

Inflation x The rate at which the general level of prices for goods and services increases. √√ x Increase in prices leads to decrease in consumer buying power/leads to decrease

in demand for goods/services - decrease in number of goods sold - negative impact on profits. √√

x Measured by CPI (Consumer Price Index) √√



x Impact on business – salaries need to also increase so that people can afford the

increase in the prices of goods and services. √√ x Workers demand increase on salaries – often higher than inflation rate. √√ x Higher salaries mean that businesses have to increase the price of their products

to recover their loss of income due to increase in salaries paid/leads to increase in cost of production since raw materials and labour are more expensive. √√

x Together with increase in fuel price results in negative cycle. √√ Any other acceptable answer relating to inflation as a socio-economic issue.

(Any 3 x 2) (6) Demographic factors and population growth x Demographic factors are defined as the characteristics of the population of a

country, e.g. age distribution, gender ration and racial composition of a country. √√

x Large, rapid increases in the size of the population are considered economically undesirable – additional burdens on the country’s infrastructure like schools and hospitals. √√

x May lead to increase in level of unemployment and poverty. √√ x Create new potential markets and increase the size of the workforce – contribute

towards positive economic growth under the right conditions. √√ x Growth rate in South Africa is decreasing due to declining birth rates and an

increase in HIV/Aids-related deaths. √√ x South Africa is made up of diverse cultures, beliefs and values – manifesting

itself in the workplace – making it difficult to work as a cohesive team – intolerance lead to low morale and increased tension in workplace. √√

Any other acceptable answer relating to demographic factors and population growth as socio-economic issues. (Any 3 x 2) (6) Unemployment x An unemployed person is someone who is willing and available to work and is

looking for a job, but cannot find a job. √√ x Official unemployment rate in South Africa had increase. √√ x Unemployed people do not have money to buy goods/services from businesses

and they may resort to crime.√√ x Reasons for high unemployment rate in South Africa:

o Cyclical unemployment – recession puts a financial strain on businesses and therefore businesses retrench some workers.√√

o Seasonal unemployment – some jobs are only for a specific season and then the position is unavailable. √√

o Structural unemployment – restructuring of the workplace because of new technology – old positions become redundant and workers need to be retrained or retrenched. √√

o Frictional unemployment – normal movement of jobs because of new positions opening elsewhere – one member of a family takes up new position while the other family member is temporarily unemployed. √√ Any acceptable answer relating to unemployment as a socio-economic issue. (Any 3 x 2) (6)



Economic crime x South Africa has one of the highest crime rates in the world. √√ x Reasons for high crime rate – inequality, unemployment and poverty. √√ x South African businesses are mostly affected by the following crimes: √√ o Armed robbery o Burglary o Identity theft o Organised crime o Advance fee fraud o Tax evasion, etc.

x Money is stolen from business through the use of intellectual skill, deception and misrepresentation rather than the physical force or threat of violence. √√

x Involve some form of intentional or unlawful misrepresentation with the goal of extracting money. √√ Any other acceptable answer relating to economic crime as a socio-economic issue. (Any 3 x 2) (6)

SOLUTIONS/CONTRIBUTIONS BY BUSINESSES Low income levels x Basic Conditions of employment Act – sets minimum wages according to

industry – business can adhere to these rates. √√ x Most people in South Africa work for minimum wage because of lack of skills –

contribute to development of skills and knowledge. √√ (Any 2 x 2) (4) Inflation x Businesses might have to retrench workers which increase unemployment and

decrease the buying power even money. √√ x Business can raise the price of its goods/services – leads to further inflation-

vicious cycle of higher consumer prices to higher production and labour costs and lower profits. √√ (Any 2 x 2) (4)

Demographic factors and population growth x Businesses need employees who can see past their differences and recognise

the variety of things that people have in common. √√ x Diversity is an enormous asset in making a business work – different people

provide different perspectives customers will have in a real society where the business wants to operate. √√ (Any 2 x 2) (4)

Unemployment x Retrain workers to operate new technology instead of retrenching them. √√ x Skills development and training of workers. √√

Any other acceptable solution or contribution to unemployment. (Any 2 x 2) (4)



Economic crime x Putting internal control measures and procedures in place. √√ x Individual working with the business’s money must: √√

o Keep records and original documentation of all transactions o Obtain authorisation signatures from management when making payments. Any other acceptable solution or contribution to economic crime. (Any 2 x 2) (4)

Conclusion x Contemporary socio-economic issues have a direct and indirect influence on the

business and therefore the business needs to contribute towards the solution/alleviation of these issues.

x Government helps with many of these socio-economic issues by implementing legislation and providing grants/funding projects to alleviate some of these issues. Any other acceptable conclusion relating to contemporary socio-economic issues. (Any 2 x 2) (4)

BREAKDOWN OF MARK ALLOCATION

Details Marks Subtotal Maximum Introduction 2 Impact of four socio-economic issues 3 x 6 = 18 18 Solution/contribution to socio-economic issues 3 x 4 = 12 12 32 Conclusion 1 x 2 = 2 2 Insight Layout 2 Analysis and interpretation 2 Synthesis 2 Originality and examples 2 TOTAL 40 [40]



QUESTION 9 Introduction x Franchising is the right granted by a franchiser to franchisee to use a special

business’s name and brands. √ x It is a major contributor to the economy in South Africa. √ x The owner gets profits of the business. √ x Not all entrepreneurs are able to start their own businesses. √ x Franchises offer entrepreneurial and managerial assistance. √ (Any 2 x 1) (2) Body Advantages of a franchise agreement for a franchisee x The use of a well-known trade name and trademark. √√ x The owner gets profits of the business. √√ x Funding is more easily granted to franchises than to new businesses by financial

institutions. √√ x Franchising offers opportunities to everyone. Franchisees do not have to be

specialists in the field of the business. √√ x Franchise learns how to keep proper financial records. √√ (Any 3 x 2) (6) Disadvantages for the franchisee x Initial costs are usually very high which makes the franchise very expensive. √√ x Franchising does not suit all personality types – entrepreneurs with their own

flair. √√ x Franchisees are not always provided with the promised on-going support and

assistance. √√ x Business operations are restricted, for example only specific products may be

sold in specific areas. √√ (Any 3 x 2) (6) Advantages for the franchisor x Rapid expansion of the business. √√ x Franchisees provide start-up capital. √√ x Assume responsibility for the running of the business. √√ x Extra profits for the franchisor. √√ x A positive/popular image leads to increased customer satisfaction. √√ x Franchisees are highly motivated, committed and therefore takes

responsibility. √√ x The success of the business, in turn, improves the image of the franchisor. √√

(Any 3 x 2) (6)



Disadvantages for the franchisor x Income of a franchisor is limited to a fixed amount royalty. √√ x Wide marketing to get national exposure costs a lot of money. √√ x The franchisor has an obligation to train franchisees and pay high costs for

trainers. √√ x In order to protect her/his income and reputation, he/she must exercise light

financial control. √√ x Problems can cause unpleasantness between the franchisor and the

franchisee. √√ (Any 3 x 2) (6) The franchising contract A franchise agreement is a legal document and deals with the following aspects: x Stipulates the specific trade area for franchisee. x Initial fee and royalties payable to franchisor. x Pricing policy to be used. x Specification of products/services. (Any 2 x 2) (4) Obligation of the franchisor x Initial training of the franchisee. √√ x Training of personnel. √√ x Trade period in years. √√ x Option to lengthen the franchise grant period. √√ x Termination clause – usually possible after five years. √√ x Form of ownership to be stipulated e.g. Sole trader/cc. √√ (Any 2 x 2) (4) Conclusion x A franchise enables prospective business persons to start their own business,

but sell the products of a well-known business. √√ x Market research for the product for sale was mostly done and research costs are

very low. √√ x Examples of franchises are: McDonalds, Wimpy, etc. √√ (Any 2 x 1) (2) BREAKDOWN OF MARK ALLOCATION Details Marks Maximum Introduction 2 Body Advantages and disadvantages for franchisee 12

28

Advantages and disadvantages for franchisor 12 Franchising contract 8 Conclusion 2 Insight LASO 8 Layout 2 Analysis, interpretation 2 Synthesis 2 Originality, examples 2 TOTAL 40 [40]



QUESTION 10 Introduction x Labour Relation act regulates the fundamental rights of employers and

employees. √ x Contributes to economic development and social justices. √ x Standardises labour practices in business organisations. √ (2) Body BASIC CONDITIONS OF EMPLOYMENT ACT Nature x Establish/enforcing basic condition in the workplace. √√ x To promote economic and social development. √√

Any relevant answer. (Any 2 x 2) (4) Purpose x Workers are expected to work 45 hours (5 days) per week or 48 hours (6 days)

per week. √√ x Wages for Sunday and public holidays must be double the normal wage rate. √√ x Annual leave – workers must be allowed 21 working days’ leave or on a pro-rata

basis. √√ x Maternity responsibility leave – entitled to 3/5 days per year. √√

Any relevant answer (Any 2 x 2) (4) IMPACT ON THE BUSINESS x Prescribing conditions in writing √√ x Introducing structures such as CCMA √√ x Imposing fines/penalties for non-compliance √√

Any relevant answer. (2 x 2) (4) LABOUR RELATION ACT Nature x To provide the framework were the employees/trade unions/employers can

collectively bargain for wages and other working conditions. √√ x To advance economic development and labour peace. √√

Any relevant answer. (Any 2 x 2) (4)



IMPACT ON THE BUSINESS x Collective bargaining √√ x Trade union activities √√ x Compliance reports √√ x Labour inspectors √√

Any relevant answer √√ (Any 2 x 2) (4)

EMPLOYMENT EQUITY ACT (EEA) Nature x Aims to eliminate all forms of unfair discrimination in the workplace and is the

core of all labour laws. √√ x This act promotes equity in the workplace and corrects the imbalances of the

past through affirmative action. √√ (Any 2 x 2) (4) Purpose x Promoting equal opportunities and fair treatment to all employees. √√ x Eliminating unfair discrimination. √√ x Ensuring equal representation of all population groups in all occupational

categories and levels in the workforce. √√ x To achieve diversity. √√ x To implement affirmative action measures for designated groups. √√ (Any 2 x 2) (4) IMPACT ON THE BUSINESS x The government fines employers for non-compliance to the EEA. √√ x Inspectors are sent to businesses to monitor the implementation of the EEA. √√ x Companies that do not comply with EEA are awarded certificates of

compliance. √√ (Any 2 x 2) (4) Conclusion x Since these Acts has been implemented, employees as well as employers are

benefiting in the workplaces. √√ x In South Africa there is an increasing awareness of contraventions in workplaces

and also employees are being treated fairly. √√ (2)



BREAKDOWN OF MARK ALLOCATION

Details Marks Maximum Introduction 2 Body LABOUR RELATIONS ACT Nature and purpose 8

27 (32)

Impact on the business 4 BASIC CONDITIONS OF EMPLOYMENT ACT Nature and purpose 8 Impact on the business 4 EMPLOYMENT EQUITY ACT Nature and purpose 8 Impact on the business 4 Conclusion 2 Insight (LASO) 8 Layout 2 Analysis and interpretation 2 Synthesis 2 Originality, examples 2 TOTAL 40 [40]

TOTAL SECTION C: 80 GRAND TOTAL: 300

Documents

GRADE 11 NOVEMBER 2015 BUSINESS STUDIES · NATIONAL SENIOR CERTIFICATE GRADE 11 NOVEMBER 2015 BUSINESS STUDIES MARKS: 300 TIME: 3 hours This question paper consists of 12 pages. *IBUSTE*

GRADE 11 NOVEMBER 2015 BUSINESS STUDIES · NATIONAL SENIOR CERTIFICATE GRADE 11 NOVEMBER 2015 BUSINESS STUDIES MARKS: 300 TIME: 3 hours This question paper consists of 12 pages. IBUSTE