Marks: 70
QUESTION 1
Match each description in Column B with the term in Column A. Write down only the letter of the correct answer next to the question number.
COLUMN A | COLUMN B | ||
1.1 | SAT | A | a travel trade show |
1.2 | FEDHASA | B | type of unforeseen occurrence |
1.3 | FTTSA | C | Federated Hospitality Association of SA |
1.4 | WWW | D | South African Tourism |
1.5 | ASATA | E | Fair Trade in Tourism South Africa |
1.6 | WWF | F | World Health Organisation |
1.7 | DST | G | Association of South African Travel Agents |
1.8 | GMT | H | Daylight saving time |
1.9 | Indaba | I | Universal Time, Co-ordinated |
1.10 | UTC | J | World Wild Fund for Nature |
1.11 | visa | K | Global Distribution System |
1.12 | WHO | L | Greenwich Mean Time |
1.13 | tsunami | M | International Air Transport |
1.14 | BCEA | N | World Wide Web |
1.15 | code of conduct | O | Basic Conditions of Employment Act |
P | Travel document | ||
Q | Set of rules |
[15]
QUESTION 2
Find the correct term for each of the descriptions listed below. The answers can be found in the table of letters. Answers can be vertical, horizontal or diagonal from top to bottom or backwards.
Example: A person who likes to travel for longer than twenty-four hours is known as a tourist.
2.1 The monetary unit used by tourists visiting France (1)
2.2 World time is measured from this place (1)
2.3 Physical condition caused by crossing time zones during a flight (1)
2.4 Natural disaster in December 2004 (1)
2.5 Telegraphic transfer system of money from one country to another (1) [5]
QUESTION 3
Read the following headlines and then answer the questions that follow.
3.1 How do unforeseen occurrences like these affect a country's social and economic arenas? Give FIVE examples. (5)
3.2 Can crime be regarded as an unforeseen occurrence of this type? Give a reason for your answer. (2)
3.3 Predict what influence an increase in crime would have on existing and potential tourism in South Africa. (3) [10]
QUESTION 4
Read the following extract carefully and answer the questions that follow.
“ATTACKS WON'T HARM TOURISM” The head of Egypt's main hotel group sought on Sunday to play down the impact of attacks by Islamist militants on his country's vital tourism industry, saying they were "isolated incidents" perpetrated by "isolated people." 01/05/2005 21:28 - (SA) |
4.1 Explain what type of crisis happened in Egypt. Give a reason for your answer. (2)
4.2 Explain what is the meant by "isolated incidents". (2)
4.3 Discuss why the tourism industry is vital for a country. (2)
4.4 Discuss the major impact of a political situation on a country. Give FOUR points. (4) [10]
QUESTION 5
Read the information, background and instructions very carefully before answering the questions that follow.
Background A young couple from England are visiting Durban for a vacation. They will arrive on Tuesday evening and will leave on Monday morning. For calculation purposes, they will be in Durban for six days. During their stay in Durban they want to visit a cultural city. A game reserve tour is definitely part of their itinerary as well as a mountain splendour tour. They also want to go on a city tour. They plan to spend one afternoon buying souvenirs. For Saturday evening they have bought tickets for a live concert, and on Sunday evening they will spend time with friends. UShaka Marine World is a must! The couple will take advantage of the Holiday Inn’s “Rack Rates” special tariffs and they will stay in the Elangeni Holiday Inn. They will hire their car from Hertz. They will get the car on Tuesday and bring it back on Monday morning. The car hire will cost them R 2 330,00 They are budgeting R200,00 each per day for meals, R200,00 each per day for extra entertainment and R500,00 each per day for shopping. |
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Note: Rates quoted are “per persons per night” - subject to top availability. Exclude 1% levy.
Plan a tour and budget for the couple by answering the questions below and using the information provided. Wherever possible show all your calculations.
5.1 During the six days they will travel 750 km around Durban. What would their fuel cost be if their car runs on 10 km/litre and petrol costs R3,90 per litre? (2)
5.2 What will the hotel cost per person per night? (1)
5.3 Explain the phrase “Minimum 2 pax”. (1)
5.4 What will the levy be for a one-night stay at Elangeni Holiday Inn? (2)
5.5 Fill in the missing labels (a) to (j) to show what they will be doing or where they will be going during the week. Write the correct answer next to the appropriate letter.
DAY | AM | PM | PPM |
Tuesday | - | - | Arrive in Durban |
Wednesday | (a) | Leisure time | Romantic dinner |
Thursday | (b) | (c) | Leisure time |
Friday | (d) | (e) | Leisure time |
Saturday | (f) | (g) | (h) |
Sunday | Leisure time | (i) | (j) |
Monday | Depart from Durban | - | - |
(8)
5.6 Copy the table below into your answer book to compile a travel budget for the tourists. (Show all your calculations.)
Accommodation | ? |
Travelling expenses | ? |
Tours | ? |
Entertainment | ? |
Shopping & gifts | ? |
Meals | ? |
Total | R23 555,12 |
(12)
5.7 What will the couple pay for the week in British pound for the tour if one British pound equals R10,38? (2)
5.8 What FOUR travel documents will they need for their visit to South Africa? (2) [30]
[TOTAL: 70 marks]
Marks: 70
QUESTION 1
1.1 Differences exist in working environments and working conditions. Discuss examples of the different working environments and conditions found in the tourism industry. (3)
1.2 Name FOUR ways in which people can develop their careers in the tourism industry. (4)
1.3 Briefly explain what a code of conduct is. Express your opinion on the importance of a code of conduct in the workplace environment. (3) [10]
QUESTION 2
Read the following case study carefully and answer the questions that follow.
UNESCO is a body established within the United Nations Organisation. Its main aims are to recognise places throughout the world that are rich in heritage and to protect and preserve them for future generations. When UNESCO proclaims a World Heritage site there are positive consequences for the tourist industry in the area as it attracts more visitors to the site. What makes the concept of World Heritage exceptional is its universal application. World Heritage sites belong to all the people of the world, irrespective of where they are located. Heritage is our legacy from the past, what we live with today, and what we pass on to future generations. |
2.1 Explain the main aims of UNESCO. (2)
2.2 Give FOUR examples of the advantages of having a World Heritage site in a country. (8)
2.3 Define the following concepts:
2.4 There are 788 World Heritage sites across the globe; six of the sites are in South Africa. Indicate, for each of the following World Heritage sites, the province in which the site is located in South Africa.
2.5 Differentiate between “inbound tourism” and “domestic tourism”. (4)
2.6 Specific criteria must be met for a place to be declared a World Heritage Site. List THREE criteria for a cultural site and TWO criteria for a natural site. (5) [30]
QUESTION 3
Answer the following questions regarding responsible tourism.
3.1 Define each of the following terms in a short sentence:
3.2 Give TWO examples of irresponsible practices in tourism. (2)
3.3 Briefly describe FIVE feature that would benefit responsible tourism? (5)
3.4 Explain what is meant by responsible tourism for the following components:
QUESTION 4
4.1 What is the currency (money used in the country) of each of the following countries:
4.2 Advise a tourist on how and where she can exchange money. (3)
4.3 Explain how a tourist visiting South Africa with US dollars would use the electronic board below, if they want to buy rand and sell rand. (2)
The following table represents an electronic board in South Africa showing buying and selling exchange rates:
Currency | Buy | Sell |
GBP | 11,51 | 11,55 |
USD | 5,71 | 5,73 |
4.4 Look at the exchange rates in the table and answer the questions:
Marks: 70
QUESTION 1
Various possible answers are provided for each of the following questions. Write the letter only of the correct answer next to the corresponding number.
1.1 A computerised banking system which exchanges one monetary unit for another monetary unit against the current rate is known as:
1.2 The monetary unit used in London is:
1.3 Identify the monetary unit used by tourists visiting the Eiffel tower:
1.4 South Africa's prime travel and tourism show organised by a magazine is known as:
1.5 UNESCO is also known as the …
1.6 Which alternative does not fit? You can save the earth by …
QUESTION 2
Decide whether the following statements are TRUE or FALSE. Write down only TRUE or FALSE next to the relevant question.
2.1 A SWIFT transfer is a transfer of money directly into someone’s bank account in another country. (1)
2.2 The monetary unit used in Tokyo, Japan is called the yen. (1)
2.3 Proudly South African is a campaign which promotes South African sport achievers. (1)
2.4 Getaway Road Show is the biggest tourism show in southern Africa displaying tourism products. (1) [4]
QUESTION 3
Match the acronym in COLUMN A with the correct description in COLUMN B. Write only the letter of the correct answer next to the question number.
COLUMN A | COLUMN B | ||
3.1 | FTTSA | A | Tourism Business Council of South Africa |
3.2 | BCEA | B | Basic Conditions of Employment Act |
3.3 | ITB | C | World Travel Market |
3.4 | WTM | D | Fair Trade in Tourism South Africa |
3.5 | TBCSA | E | International Tourism Arts And Culture Project |
F | Internationale Tourismus-Börse |
[5]
QUESTION 4
Tourism organisations that provide poor customer service are likely to suffer from, for example, a decrease in sales and lack of customer loyalty. Name FIVE other elements of poor customer service. [10]
QUESTION 5
Study the Proudly South African logo and the advertisements shown below.
5.1 The aim of the Proudly South African campaign is to help create jobs and encourage economic growth in our country. Who or what does the Proudly South African campaign promote? (2)
5.2 Who is the target market of each advertisement? Give a reason for your answer. (6)
5.3 To what extent are the services and/or experiences offered in the advertisements unique to South Africa? (3)
5.4 Name FOUR ways in which you would promote these services and/or experiences to the international tourist market. (4) [15]
QUESTION 6
The management of Rail Trail, a passenger train business, has decided to improve their service to customers. They want to make sure they meet their clients’ needs. They decide to do a customer satisfaction survey on the Internet. Below is an extract from their survey. Use the extract to answer the questions that follows.
Customer Satisfaction Survey | |||
1 | Are you aware of the sitter class that we offer? | Yes | No |
2 | Do we satisfy your travel needs? | Yes | No |
3 | Are you satisfied with the bedding provided on our trains? | Yes | No |
4 | Do you travel frequently with any type of transport? | Yes | No |
5 | Are you aware of Rail Trail trains? | Yes | No |
6 | Do you travel frequently with a long distance train? | Yes | No |
7 | Are you satisfied with the toilet facilities on our trains? | Yes | No |
8 | Do you usually travel in the sitter class? | Yes | No |
9 | Are you satisfied with assistance by our staff? | Yes | No |
10 | Are you aware of the sleeper class that we offer? | Yes | No |
11 | Do you usually travel in the sleeper class? | Yes | No |
12 | Are you from outside of South Africa? | Yes | No |
13 | Do you travel long distance in South Africa for business purposes? | Yes | No |
14 | Do you enjoy travelling with Rail Trail? | Yes | No |
15 | Are you aware of the First Class option between Pretoria and Cape Town? | Yes | No |
16 | Have you travelled with the First Class? | Yes | No |
17 | Do you feel safe on our long distance trains? | Yes | No |
6.1 Why is it so important for a business that provides a service to tourists to get regular feedback from tourists? (2)
6.2 If a tourist answered no to questions 7, 9 and 17 of the satisfaction survey of Rail Trail, what services could they improve? (3)
6.3 Will a business traveller make use of long distance train travel in South Africa for business purposes? Give reasons for your answer. (3)
6.4 As the customer care manager you must draw up a code of conduct for the employees of Rail Trail to better the service of the company. Draw up a FOUR-point code of conduct. (12) [20]
QUESTION 7
7.1 Explain why good customer service is important for tourism businesses. (4)
7.2 Name and give a short description of THREE ways in which a company can get feedback from customers on their customer service. (6) [10]
[TOTAL: 70 marks]
Marks: 70
QUESTION 1
Various possible answers are provided for each of the following questions. Write the letter only of the correct answer next to the corresponding number.
1.1 The current grading system for accommodation of SAT is known as the:
1.2 The tourist association that tour guides must register with, and sign a code of conduct, is known as:
1.3 Identify the National Department of Tourism guideline that tourism organisations do NOT have to follow to become responsible and sustainable:
1.4 What organisation promotes sustainable tourism development?
1.5 The SA Travel and Tourism Industry Conference and the Indaba are initiatives organised by South African Tourism to promote:
QUESTION 2
Match the concept in COLUMN A with the correct description in COLUMN B. Write the letter of your choice next to the question number.
COLUMN A | COLUMN B | ||
2.1 | Multiplier effect | A | Refuse to deal with a person, group, nation or group of nations to show disapproval |
2.2 | Universal Access | B | A tourism product that allows people to buy a period of time at a resort or hotel at the same time each year |
2.3 | Shift work | C | The total value of the goods and services produced in a country in a year |
2.4 | Regulatory organisation | D | Set of rules to guide behaviour and decisions |
2.5 | Repeat business | E | Takes place when a customer chooses to return to the same business for products and services |
2.6 | SETA | F | The quality of being able to touch and hold something |
2.7 | Service standards | G | Organisation that makes rules to ensure that standards are met in the industry |
2.8 | Prohibited goods | H | Occurs when the body doesn't have enough water in it |
2.9 | Employment equity | I | An increase in tourist numbers can also lead to growth in the economy outside the tourist industry |
2.10 | Consumer loyalty | J | Places, buildings, products or services that can be used by both able-bodied and disabled people |
2.11 | Code of conduct | K | A policy or a programme providing advantages for people of a group, who have previously been discriminated against, with the aim of creating a more fair society |
2.12 | Timeshare | L | Standards that a business must maintain to make sure that it is successful |
2.13 | Tangible | M | Goods that are not allowed into a country |
2.14 | Gross domestic product | N | A person's time, effort or work rather than a physical product |
2.15 | Boycott | O | Sector Education and Training Authority |
P | This is the same as customer loyalty | ||
Q | An employment practice designed to make use of the 24 hours of the day |
[15]
QUESTION 3
Write the following in full.
3.1 SCHSA (2)
3.2 TBCSA (2)
3.3 TOMSA (2)
3.4 SATSA (2)
3.5 EFT (2) [10]
QUESTION 4
Read the following advertisement carefully and answer the questions that follow.
GROUP RESERVATIONS MANAGER Responsible for:
Education, experience and competencies required:
Job description:
|
4.1 List FOUR criteria that must be included in an employment contract. (4)
4.2 Explain how it could impact on an employee’s loyalty to be treated unfairly in terms of payment from the company. (2)
4.3 Compile a FOUR-point code of conduct for the position advertised. (4) [10]
QUESTION 5
Ms Adams, a businesswoman from Los Angeles in the United States, visited Beijing in China, which is in the same time zone as Hong Kong, for a five-day business conference. Answer the following questions about her trip, using the time zone map given on the next page where necessary.
5.1 Explain to Ms Adams why it is important for her to consider the following information before her trip:
5.2 Ms Adams’ flight from Los Angeles departed on Monday 1 July at 19:00. The flying time from Los Angeles to Beijing was 12 hours. Calculate the time and day the flight arrived in Beijing. Ignore DST. Explain ALL your calculations. (4)
5.3 Upon her arrival in Beijing, Ms Adams suffered from jet lag. Besides being tired, name TWO other symptoms she experienced. (2)
5.4 During the conference, she urgently needed documentation to be faxed to her from her office in Los Angeles. She placed a call to her office at 14:00 Beijing time.
5.5 Ms Adams would like to undertake a five-day independent tour of Beijing and China after the conference. State TWO elements of tour planning she should consider when planning her tour. (2)
5.6 Name one world icon she could visit while in China. (1)
5.7 Ms Adams took $3 000.00 with her on her trip. The exchange rate at the time was 1 US dollar = 6.3485 Chinese Yuan. Calculate how many Yuan she will receive in China. (4)
5.8 When she returns to the USA she has 2 850 Yuan remaining. Use the information below to calculate how many dollars she will receive for her Yuan from the bank.
Bank buying rate: 1$: 6.352 Yuan Bank selling rate: 1$: 6.410 Yuan |
(4) [30]
[TOTAL: 70 marks]
QUESTION 1
1.1 D ✓
1.2 C ✓
1.3 E ✓
1.4 N ✓
1.5 G ✓
1.6 J ✓
1.7 H ✓
1.8 L ✓
1.9 A ✓
1.10 I ✓
1.11 P ✓
1.12 F ✓
1.13 B ✓
1.14 O ✓
1.15 Q ✓ [15]
QUESTION 2
2.1 Euro ✓ (1)
2.2 Prime meridian ✓ (1)
2.3 Jetlag ✓ (1)
2.4 Tsunami ✓ (1)
2.5 SWIFT ✓ (1) [5]
QUESTION 3
3.1
3.2 Yes, crime can be seen as a crisis. ✓ The results of crime have a negative impact on our social and economic environment ✓ (2)
3.3
QUESTION 4
4.1 Political instability✓. Attacks by Islamist militants ✓ (2)
4.2 The attacks will not be repeated ✓✓ (2)
4.3 Tourism creates the multiplier effect ✓ which is vital for a country’s economic growth ✓ (2)
4.4
QUESTION 5
5.1 750 km / 10 = 75 litres x R3,90 per litre = R292,50 ✓✓ (2)
5.2 R330,50 ✓ (1)
5.3 No fewer than two passengers / There have to be at least two passengers ✓ (1)
5.4 R330,50 x 1% = R3.31 ✓✓ (2)
5.5
5.6
Accommodation [(R330,50 x 6) + R3,31] x 2 | ✓✓✓ R3 972,62 |
Travelling expenses [R2 330,00 + R292,50] | ✓✓ R2 622,50 |
Tours [(R400 + R960 + R220 + R1190 + R310) x 2] | ✓✓✓✓ R6 160,00 |
Entertainment [(R200 x 2) x 6] | ✓ R2 400,00 |
Shopping & gifts [(R500 x 2) x 6] | ✓ R6 000,00 |
Meals [(R200 x 2) x 6] | ✓ R2 400,00 |
Total | R23 555,12 |
(12)
5.7 R23 555,12 / R10,38 = R2 269,27 ✓✓ (2)
5.8
QUESTION 1
1.1
1.2
1.3 A code of conduct is a set of rules to guide behaviour and decisions. ✓✓ The value of a code of conduct is that it ensures common standards. ✓ (3) [10]
QUESTION 2
2.1
2.2 Any four of the following:
2.3
2.4
2.5 Inbound tourism: a tourist visiting a country from another country. Travel with a passport ✓✓ (2)
Domestic tourism: a tourist travelling in the country where he/she stays ✓✓ (2)
2.6 Cultural site: any three of the following:
Natural site: any two of the following:
QUESTION 3
3.1
3.2 Any two acceptable answers such as:
3.3
3.4
QUESTION 4
4.1
4.2 Exchanging money:
4.3 If a tourist has arrived in South Africa with US dollars and she wants to buy rands, the US dollar "buy" price is what she should check. ✓
If she wants to sell rands back to the bank when she leaves the country, the US dollar "sell" price is the guide. ✓ (2)
4.4
QUESTION 1
1.1 D ✓ (1)
1.2 B ✓ (1)
1.3 A ✓ (1)
1.4 D ✓ (1)
1.5 B ✓ (1)
1.6 D ✓ (1) [6]
QUESTION 2
2.1 True ✓ (1)
2.2 True ✓ (1)
2.3 False ✓ (1)
2.4 False ✓ (1) [4]
QUESTION 3
3.1 D ✓ (1)
3.2 E ✓ (1)
3.3 F ✓ (1)
3.4 C ✓ (1)
3.5 A ✓ (1) [5]
QUESTION 4
Any five of the following:
QUESTION 5
5.1 SA companies, ✓ products and services ✓ (2)
5.2
5.3
5.4 Any four suitable answers such as:
QUESTION 6
6.1 Without regular feedback, companies would not know if they were lacking in any part of their service delivery ✓.
With regular feedback they can rectify and prevent bad service delivery ✓ (2)
6.2 Rail Trail l could better their toilet facilities, ✓ assistance of their staff ✓ and safety precautions. This would ensure that they satisfy tourists’ needs ✓ (3)
6.3 No ✓. Travelling by train is too slow for a business traveller in South Africa ✓✓ (3)
6.4 Any four suitable answers such as:
QUESTION 7
7.1 Good customer service is important as it creates a positive impression of the business. ✓
Customers will be happier and will return. ✓
Customers will tell other people about the good service and more clients will come to the business. ✓
The business will earn more money and will grow expand. ✓ (4)
7.2 Any three methods and appropriate short descriptions:
QUESTION 1
1.1 B ✓ (1)
1.2 D ✓ (1)
1.3 C ✓ (1)
1.4 B ✓ (1)
1.5 A ✓ (1) [5]
QUESTION 2
2.1 I ✓ (1)
2.2 J ✓ (1)
2.3 Q ✓ (1)
2.4 G ✓ (1)
2.5 P ✓ (1)
2.6 O ✓ (1)
2.7 L ✓ (1)
2.8 M ✓ (1)
2.9 K ✓ (1)
2.10 E ✓ (1)
2.11 D ✓ (1)
2.12 B ✓ (1)
2.13 F ✓ (1)
2.14 C ✓ (1)
2.15 A ✓ (1) [15]
QUESTION 3
3.1 Sectoral Determination for the Hospitality Sector Act ✓✓ (2)
3.2 Tourism Business Council of South Africa ✓✓ (2)
3.3 Tourism Marketing Levy South Africa ✓✓ (2)
3.4 Southern Africa Tourism Services Association ✓✓ (2)
3.5 electronic fund transfers ✓✓ (2) [10]
QUESTION 4
4.1 Any four suitable answers such as: salary ✓, leave ✓, working hours ✓, place of work ✓, job description ✓, bonus ✓, code of conduct. ✓ (4)
4.2 Any two suitable answers such as: Employees’ loyalty could decrease ✓ because they feel undervalued by their employer ✓. They may not want to work as hard ✓ and may speak negatively about the company. ✓ (2)
4.3 Any four suitable answers such as:
QUESTION 5
5.1
5.2 Los Angeles is at -8 and Beijing is at +8, so there is a 16 hour time difference. ✓ Flying time is 12 hours so plane lands at 19.00 plus 12 is 07:00 Los Angeles time. ✓ Beijing is ahead, so subtract 16 hours from 07:00 is 15:00 ✓ in Beijing the next day✓. (4)
5.3 disorientation, nausea, headache (any 2) ✓✓ (2)
5.4
5.5 Transport, accommodation, attractions and activities (any 2) ✓✓ (2)
5.6 Great Wall of China ✓ (1)
5.7 $3 000 x 6.348 ✓✓ = 19 044 Yuan ✓✓ (4)
5.8 2 850 Yuan/ 6.352 ✓✓ = $448.65 ✓✓ (4)
[30]
[TOTAL: 70 marks]
THE IMAGE OF THE COMPANY
PRODUCT PACKAGING
THE IMAGE OF THE COMPANY
CUSTOMER SERVICE POLICIES
Customer service policy
Covers:
INTERACTION WITH CUSTOMERS
COMMUNICATION SKILLS
CONDITIONS OF EMPLOYMENT
REFERS TO THIS:
Basic Conditions of Employment Act (No 75 of 1997)
The Act regulates the following employment conditions:
Professional image in the tourism industry
THE IMAGE OF THE STAFF
Uniform Allowance
PERSONAL HYGIENE & GROOMING
Grooming refers to the things that people do to keep themselves clean and make their face, hair, and skin look nice.
Employment Contract
BY ALISON DOYLE | Updated January 06, 2020
What is an employment contract, and how does having an employment agreement impact your status as an employee?
An employment contract is a signed agreement between an individual employee and an employer or a labor union. It establishes both the rights and responsibilities of the two parties: the worker and the company.
Review information on what to expect when you're asked to sign a contract, other types of agreements that cover employees in the workplace, and the pros and cons of contracts.
PROFESSIONAL APPEARANCE
Normal working hours
Flight Attendant
FRINGE BENEFITS
BCEA (Leave I)
BCEA (Leave II)
Annual leave
JOB DESCRIPTIONS
CORE DUTIES
BCEA (Leave III)
Sick leave
BCEA (Leave III)
Family responsibility leave
SERVICE ETHICS
ETHICS AND ETHICAL BEHAVORIAL
Ethics
ACTIVITY 1:
QUESTION 7
Study the pictures of employees at a travel agency below and answer the questions that follow.
7.1 Explain the importance of a code of conduct at a travel agency.
7.2 Discuss TWO ways in which the unprofessional behaviour of the staff members in the pictures above can impact negatively on the work ethics of
the other staff members at the travel agency with regard to:
7.2.1 Harassment
7.2.2 Laziness
7.3 Explain TWO ways in which the employer can deal effectively with the above cases of unprofessional behaviour to ensure productivity at the travel agency.[14]
7.2 Study the advertisement below and answer the questions that follow.
ACTIVITY 2:
Study the information below and answer the questions that follow.
7.1 Good communication is a key consideration for businesses when it comes to maintaining a professional image.
The manager of the A1 Hotel received an e-mail in which a hotel guest complained about the poor work ethic of some of the staff members at the hotel and the lack of good service delivery.
MANAGER'S RESPONSE TO THE COMPLAINT
7.2.1 Refer to the advertisement above, name TWO values expected from the person applying for this position. (2)
7.2.2 Name TWO communication skills that are required for this position. (2) [14]
7.1.1 Name the document employees have to sign when accepting a position in the hospitality industry.
7.1.2 Explain why the owner of this hotel can take disciplinary action against the manager after seeing the e-mail above.
7.1.3 Explain ONE reason why the hotel's slogan ' We put you first' will be included in the hotel's customer feedback policy.
7.1.4 The manager of the A1 Hotel has poor business writing skills.
ACTIVITY 3:
7.1 Refer to the extract from the website of South African National Parks below and answer the questions that follow.
Choose an item from the extract that matches a description below. Write only the question number (7.1.1-7.1.4) and the letter (A-D) in the ANSWER BOOK, for example 7.1.5 E.
7.1.1 The logo of South African National Parks (1)
7.1.2 ONE aim of South African National Parks (1)
7.1.3 Information on South African National Parks (1)
7.1.4 Availability of accommodation at South African National Parks (1)
7.2 Study the photograph below and answer the questions that follow.
7.2.1 State TWO aspects of Nkosi Xaba's dress code that show the professional image of South African National Parks (SANParks). (2)
7.2.2 Refer to Nkosi's words in the speech bubble.
Discuss ONE way in which routine patrols show that SANParks has an environmental policy in place.
ACTIVITY 5
Study the brand images of companies below and answer the questions that follow.
The professional image of a company is more than just a recognisable and trustworthy brand. It is portrayed (shown) in many ways other than the physical appearance of the buildings and the staff."
7.1 Identify TWO tourism companies above where the staff must have excellent telephone skills and e-mail writing skills when making transport bookings.(2)
7.2 Give ONE reason for your choice in QUESTION 7.1 (2)
7.3 List FOUR elements that must appear on the letterhead of Sunset Air that will project a professional image. (4)
7.4 Give ONE example of how the companies in QUESTION 7.1 may improve their e-mail writing skills to promote their professional image. (2) [10]
ACTIVITY 4:
Study the picture below and answer the questions that follow.
7.1 Identify the tourism industry sector shown in the picture.(2)
7.2 Explain the importance of personal appearance in the sector identified in QUESTION 7.1. (2)
7.3 The employee in the picture above does not comply with the code of conduct of the Palms Hotel. Identify THREE examples of unprofessional appearance/conduct by the employee in the picture. (6)
7.4 Suggest THREE intervention strategies to management that will improve this employee's conduct. (6) [16]
SECTION B | |
QUESTION 2: MAP WORK AND TOUR PLANNING | |
Itinerary |
|
World Health Organisation |
|
Vaccination |
|
Compulsory vaccination |
|
Recommended vaccination |
|
Malaria precautions |
|
Valid passport |
|
Visa |
|
Health certificate |
|
International Driver’s Permit (IDP) |
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Duty free goods |
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Prohibited goods |
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Green channel |
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Red channel |
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To declare |
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Daylight Savings Time | A practice of turning the clock one hour ahead of standard time at the beginning of summer to gain extra daylight hours
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Time Zone | A region of the Earth where all the countries have adopted the same standard time |
Steps to follow when doing time zone calculations: |
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Jet lag | Jet lag is a physical condition related to flying long distances over many time zones (flying from east to west or west to east). It is related to the number of time zones a traveller crosses and not to the length of the flight. SYMPTOMS OF JET LAG:
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Jet fatigue |
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SECTION B | |
QUESTION 3: FOREIGN EXCHANGE | |
GDP |
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Multiplier effect | The multiplier effect is when money, spent by tourists, filters down through the economy benefitting other organisations |
The buying power of the Rand |
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If the Rand is strong |
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If the Rand is weak |
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Bank Selling Rate |
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Bank Buying Rate | The rate at which the foreign exchange dealers e.g. commercial banks, will buy foreign currency |
When doing a foreign exchange calculation always look at it from the Bank’s position | What is the Bank doing with the foreign currency?
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Currency rate sheet |
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Convert a major currency to the South African Rand (ZAR) | MULTIPLY by the Rate of Exchange e.g. USD150 × 14,83 = R2 224,50 |
Convert the South African Rand (ZAR) to a major currency | DIVIDE by the Rate of Exchange e.g. R15 000 ÷ 16,65 с € 900,90 |
SECTION C | ||||
QUESTION 4: TOURISM ATTRACTIONS | ||||
Tourist attraction | A tourist attraction is a place, an area, a building or an event of interest that tourists visit for its historical significance, cultural value, natural or human-made beauty or entertainment opportunities. | |||
Icon | An icon in the tourism context is an attraction or feature that is world famous, has symbolic value and is closely associated with a particular destination. | |||
PICTURE OF WORLD ICON | NAME OF WORLD ICON | NAME OF COUNTRY | NAME OF CITY/TOWN/ AREA | WHY IS IT AN ICON |
![]() | Sydney Opera House | Australia | City: Sydney | It is universally recognised as an architectural masterpiece of the 20th century because of its design and construction |
![]() | Ayers Rock / Uluru-Kata Tjuta National Park | Australia | State: Northern Territory | Uluru or Ayers Rock is a unique, massive, round rock formation composed of hard, red sandstone. It also known as an “island mountain” and two-thirds of the rock is buried 5 km underground. |
![]() | The statue of Christ the Redeemer | Brazil | City: Rio de Janeiro | With its outstretched arms overlooking the city of Rio de Janeiro it is one of the most famous statues in the world and is known not only for its dramatic location and size, but also as a symbol of Christianity and peace. |
Niagara Falls | Canada and USA | Cities: Niagara Falls, Ontario (Canada) and Niagara Falls, New York (USA) | The Niagara Falls is the most famous waterfall in the world. It is one of the biggest and most powerful and receives more visitors than any other waterfall. | |
![]() | Colosseum | Italy | City: Rome | The Colosseum is the largest amphitheatre constructed during the Roman Empire and is regarded as the greatest example of Roman engineering and architecture. It is nearly 2 000 years old. |
![]() | Leaning Tower of Pisa (Piazza del Duomo) | Italy | City: Pisa | Because of its beauty and the fact that it has tilted, this freestanding bell tower or campanile, known as the Leaning Tower of Pisa, is one of the most recognisable structures in the world. |
PICTURE OF WORLD ICON | NAME OF WORLD ICON | NAME OF COUNTRY | NAME OF CITY/TOWN/ AREA | WHY IS IT AN ICON |
![]() | Venice | Italy | City: Venice | Venice, a city built on 118 small islands linked by canals and bridges is one of the most beautiful cities in the world and famous for its architecture and art. |
![]() | Vatican City | Italy | City: Rome | Vatican City, also known as the Vatican, is the world’s smallest independent city state, the seat of the Roman Catholic Church and is ruled by its head, the pope. |
![]() | The Great Pyramids of Giza | Egypt | City: Giza | The Pyramids of Giza were constructed over 4 500 years ago as massive tombs for the Egyptian pharaohs. The pyramids are symbols of Egypt’s history and culture. They serve as evidence of the ancient Egyptians’ technical advancement. |
![]() | The Sphinx | Egypt | City: Giza | The Sphinx is a huge statue of a creature with the body of a lion and the head of a human. It is carved out of a single block of limestone and is one of the largest and most recognisable statues in the world, and a symbol of Egypt. |
![]() | Berlin Wall | Germany | City: Berlin | Built in 1961, the Berlin Wall was a concrete wall separating West Berlin from East Berlin in East Germany. It symbolised the division between democracy and communism during the Cold War. |
![]() | Black Forest | Germany | State: Baden-Württemberg | The Black Forest is known for its beautiful scenery consisting of mountains covered with pine and fir trees, valleys, lakes, mineral springs and picturesque villages. |
![]() | The Dome of the Rock | Israel | City:Jerusalem | The Dome of the Rock is an Islamic shrine built on a sacred rock. It is the third most holy site in the world for Muslims after Mecca and Medina. The Prophet Muhammad, the founder of Islam, is believed to have ascended to heaven from this site. |
PICTURE OF WORLD ICON | NAME OF WORLD ICON | NAME OF COUNTRY | NAME OF CITY/TOWN/ AREA | WHY IS IT AN ICON |
![]() | The Wailing Wall | Israel | City: Jerusalem | The Wailing Wall, located on the west of the Temple Mount in the old city of Jerusalem, is the holiest Jewish site in the world. |
![]() | The Great Wall of China | China | City: Beijing | The Great Wall of China dates back 2 000 years and is the world’s longest human-made defensive structure. It is not only a symbol of China’s history and culture, but it is testament to ancient Chinese determination and engineering skills. |
![]() | The Parthenon | Greece | City: Athens | The Parthenon is the remains of a 2 500-year-old temple located on the Acropolis, a hill overlooking the city of Athens, Greece. It is a symbol of ancient Greek civilisation and its most famous surviving building. |
![]() | The Taj Mahal | India | City: Agra | The Taj Mahal is constructed of white marble. It was built by an Indian ruler as a symbol of his everlasting love for his deceased wife. The Taj Mahal is regarded as an architectural masterpiece and one of the most beautiful buildings in the world. |
![]() | The Blue Mosque | Turkey | City: Istanbul | The Blue Mosque in Istanbul, Turkey, with its cascading domes, decorated with ceramic blue tiles on the inside, its courtyards and six minarets, is considered one of the most beautiful mosques in the world. |
![]() | The Eiffel Tower | France | City: Paris | The Eiffel Tower is the world’s most famous tower and a symbol of Paris. It is the tallest structure in Paris and the most-visited tourist attraction in the world that charges an admission fee. |
![]() | The French Riviera | France | City: Nice | The French Riviera or Côte d’ zur is one of the most famous and luxurious coastal resort areas in the world. It lies on the Mediterranean coast of south-eastern France on the border with Italy. |
PICTURE OF WORLD ICON | NAME OF WORLD ICON | NAME OFCOUNTRY | NAME OF CITY/TOWN/AREA | WHY IS IT AN ICON |
![]() | Mount Fuji | Japan | City: Tokyo | Mount Fuji is the highest mountain in Japan. This volcanic mountain is world famous for its near perfect symmetrical cone shape and is recognised as a symbol of Japan. |
![]() | Chichen Itza | Mexico | Region: Yucatán Peninsula | Chichen Itza is the ruined remains of a large, ancient Mayan city. It is one of the best-preserved archaeological sites of the ancient Mayan civilization. |
![]() | Petra | Jordan | City: Wadi Musa | This desert city, hidden in a narrow valley between by mountains, has been carved from solid rock, making it one of the most spectacular ancient cities in the world. Petra, which means “rock” in Greek, was constructed around 100 BC as the capital city of the Nabateans, an Arab tribe. |
![]() | Mount Everest | Nepal | City: Kathmandu | Mount Everest is the highest mountain in the world. The peak is 8 848 m above sea level. |
![]() | Mecca | Saudi Arabia | City: Mecca | Mecca, the most sacred city of the Islam faith, is the spiritual centre of all Muslims. It is the birthplace of the Prophet Muhammad, the founder of the Islamic faith, and the focal point of Muslim pilgrimage. |
![]() | The Swiss Alps Jungfrau-Aletsch | Switzerland | Area: Cantons of Berne and Valais | The Swiss Alps Jungfrau- Aletsch is a protected area in south-western Switzerland. This beautiful region has high mountain peaks that are permanently covered in snow, glaciers and valleys. |
![]() | Windmills | The Netherlands | Area: All over the Netherlands | Windmills are one of the main symbols associated with the Netherlands. Not only are they characteristic of the Dutch landscape, they are also a symbol of the Dutch struggle against water. |
PICTURE OF WORLD ICON | NAME OF WORLD ICON | NAME OF COUNTRY | NAME OF CITY/TOWN/AREA | WHY IS IT AN ICON |
![]() | Machu Picchu | Peru | City: Cuzco | Machu Picchu, an ancient Inca city in the Andes Mountain in Peru, is one of the most important and mysterious archaeological sites in the world. It is also known as The Lost City of the Incas. |
![]() | Auschwitz | Poland | City: Auschwitz | Auschwitz was Nazi Germany’s largest concentration camp, forced labour and extermination camp complex in Europe from 1940 to 1945. Today it serves as a symbol of the Holocaust and humanity’s cruelty to its fellow humans during World War II. |
![]() | The Algarve | Portugal | City: Faro | The lgarve is Portugal’s most popular tourist region and one of Europe’s favourite holiday destinations. This region is renowned for the natural beauty of its dramatic coastline, sunny weather, excellent beaches, opportunities for outdoor activities and great food. |
![]() | Alcázar of Segovia | Spain | City: Segovia | The Alcázar of Segovia is the most recognisable fortress castle in Spain. It is built on top of a huge rocky hill and shaped like the bow of a ship. This fortress dates back centuries and is one of the most visited monuments in Spain. |
![]() | Bullfights | Spain | Cities: Madrid, Seville and Pamplona | The practice of bullfighting, in which a bullfighter in a public display provokes and then kills a bull with a sword, is universally associated with Spain’s history and culture. |
![]() | Floating markets | Thailand | City: Bangkok | The colourful and vibrant floating markets where traders sell their goods from their boats on the rivers and canals have become a symbol of the traditional way of life in Thailand. |
PICTURE OF WORLD ICON | NAME OF WORLD ICON | NAME OF COUNTRY | NAME OF CITY/TOWN/AREA | WHY IS IT AN ICON |
![]() | The Kremlin | Russia | City: Moscow | The Kremlin is a fortified complex of buildings in the city of Moscow. The monumental walls, towers, cathedrals and palaces that make up the Kremlin form a living museum of Russian history, culture and architecture. It is also a symbol of the Russian state. |
![]() | The Red Square | Russia | City: Moscow | The Red Square in the centre of Moscow, Russia is a large public square surrounded by significant buildings. It has been the site of many historical events since the 15th century and is considered to be the most famous tourist attraction in Moscow. |
![]() | Big Ben | United Kingdom | City: London | Popularly referred to as Big Ben, the Elizabeth Tower of the Palace of Westminster is recognised worldwide as a symbol of the city of London and the United Kingdom. |
![]() | Buckingham Palace | United Kingdom | City: London | Buckingham Palace is the official residence and administrative headquarters of the British monarch. It is a major tourist attraction in London. |
![]() | Tower of London | United Kingdom | City: London | The Tower of London is an ancient fortress palace complex and one of the oldest buildings in London. It is a symbol of royal power dating back to the 11th century. |
![]() | Tower Bridge | United Kingdom | City: London | London's Tower Bridge is one of the most recognizable bridges in the world. Tower Bridge (built 1886-1894) is a combined bascule and suspension bridge in London which crosses the River Thames. It is close to the Tower of London, from which it takes its name, and has become an iconic symbol of London. |
PICTURE OF WORLD ICON | NAME OF WORLD ICON | NAME OF COUNTRY | NAME OF CITY/TOWN/ AREA | WHY IS IT AN ICON |
![]() | The Statue of Liberty | United States of America | City: New York | The Statue of Liberty was a gift from France to the USA. It has become one of the most recognisable landmarks in the world and a universal symbol of freedom because it stands in New York Harbour which is where all immigrants to the United States used to arrive by boat. |
![]() | The Grand Canyon | United States of America | State: Arizona | The Grand Canyon is one of the largest gorges in the world. With its overwhelming size and magnificent landscape, it is one of the most spectacular natural wonders and best examples of erosion in the world. |
LOCATION OF ICONS ON A MAP | |
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Factors contributing to the success of a tourist attraction |
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Characteristics of a successful tourist attraction |
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SECTION C | |||
QUESTION 5: CULTURE AND HERITAGE TOURISM | |||
World Heritage Sites |
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The role of UNESCO |
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World Heritage Sites in South Africa | NAME OF WHS | PROVINCE | TYPE |
Cradle of Humankind (1999) | Gauteng | Cultural | |
Mapungubwe Cultural Landscape (2003) | Limpopo | Cultural | |
Robben Island (1999) | Western Cape | Cultural | |
Richtersveld Cultural and Botanical Landscape (2007) | Northern Cape | Cultural | |
Khomani Cultural Landscape (2017) | Northern Cape | Cultural | |
Cape Floral Region Protected Areas (2004) | Western Cape | Natural | |
iSimangaliso Wetland Park (1999) | KwaZulu Natal | Natural | |
Vredefort Dome (2005) | Free State | Natural | |
Barberton Makhonjwa Mountains (2018) | Mpumalanga | Natural | |
uKhahlamba-Drakensberg Park (2000) | KwaZulu Natal | Mixed | |
The value of World Heritage Sites to South Africa |
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LOCATION OF WORLD HERITAGE SITES ON A MAP OF SOUTH AFRICA | |||
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SECTION C | |
QUESTION 6: MARKETING | |
The importance of marketing South Africa internationally |
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The core business of SA Tourism |
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Opportunities for marketing SA internationally |
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Funding for SA Tourism’s international marketing initiatives |
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Branding |
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Opportunities to promote SA and the southern African region to the world |
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SECTION D | |
QUESTION 7: TOURISM SECTORS | |
Factors that contribute to a professional image in the tourism industry |
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Contract of employment | The contract of employment describes the basic conditions of employment such as:
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Code of Conduct |
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SECTION D | |
QUESTION 8: SUSTAINABLE AND RESPONSIBLE TOURISM | |
The three pillars of sustainable tourism |
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Responsible tourism and tourists |
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SECTION E: | |
QUESTION 9: DOMESTIC, REGIONAL AND INTERNATIONAL TOURISM | |
Global events |
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The main economic benefits of global events |
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The advantages a global event holds for the host country |
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Disadvantages of global events for a host country |
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Political situations |
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Unforeseen occurrences |
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The impact of unforeseen occurrences |
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Forms of payment when travelling internationally |
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Foreign market share |
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Land markets |
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Air markets |
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SECTION E | |
QUESTION 10: COMMUNICATION AND CUSTOMER CARE | |
The purpose of obtaining customer feedback |
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Methods to obtain customer feedback |
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Positive impact of excellent service delivery |
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Overview
This topic introduces you to tourism and the impact of global events on the tourism industry as well as the positive and negative effects for a country of hosting an event of global significance.
In this topic you will learn about:
Global events of international significance
Political situations and unforeseen occurrences of international significance
The concepts
Examples of recent political situations
Examples of unforeseen occurrences
The impact of political situations and unforeseen occurrences on international tourism and the economy of the affected country
A global event is an organised event involving people from countries from around the world. There are many different types of global events and they can attract a lot of media attention.
1.1 Sporting events
Sports tourism refers to travel which involves either viewing or participating in a sporting event staying apart from their usual environment. Sport tourism is a fast growing sector of the global travel industry and equates to 600 billion dollars a year. Sport event tourism refers to the visitors who visit a city to watch events. An example of this would be during the Olympics. Each Olympic host city receives an immense amount of tourism.
Examples of major international sporting events include:
1.2 Other events
The G8 Summit: This forum is for the governments of eight of the world's largest economies France, the United States of America, the United Kingdom, Russia, Germany, Japan, Italy, and Canada (It excludes, however, two of the actual eight : China, 2nd, and Brazil, 7th). In recent years the ‘Plus Five’ countries Brazil, the People’s Republic of China, India, Mexico, and South Africa, have participated as guests.
Summits on climate change: Summits on climate change try to find ways to cut down on global carbon emissions and pollution. In 2000 the Southern African Economic Summit was held in Durban. In 2011 the UN Climate Change Summit was also held in Durban.
Tourism Indaba: The word indaba is an isiZulu word meaning ‘a meeting of elders’ but is used as a general term for meetings, exhibitions, and conferences. The Tourism Indaba is South Africa’s tourism showcase. It is the largest incoming travel trade exhibition in Africa and is held annually.
2.1 Positive impacts
2.2 Negative impacts
The legacy left behind after the event can improve the long-term well-being and lifestyle of citizens in the host country. This contributes enormously to nation building as we saw in South Africa when we hosted the 2010 FIFA World Cup.
3.1 Impact on domestic tourism in the host country
Domestic tourism slows down in the host country during a major global event such as the Olympic Games, FIFA World Cup or Tour de France because during a global event foreign tourists displace local tourists from the most popular tourist attractions.
3.2 The impact on the economy of the host country
Hosting global events can have the following positive impacts:
Hosting global events can have the following negative impacts:
1.1 Political situations
Political situations are events that are linked to the political circumstances within a country or region for example civil war or terrorism.
1.2 Unforeseen occurrences
Unforeseen occurrences are events that happen without any warning such as earthquakes and natural disasters.
A tourists perceptions of political instability and safety in a country will affect their decisions about whether or not to travel there.
2.1 Civil war
A civil war is a war between opposing groups of citizens of the same country. Civil wars have recently occurred in Libya, Egypt, Somalia and Kenya.
2.2 Terrorism
Terrorism is the use of violent acts to achieve a political goal. One of the most significant terrorist attacks in recent years was the September 11, 2001 attacks on the World Trade Centre in New York.
2.3 General unrest
Unrest is an uneasy or troubled condition. General unrest in Zimbabwe has stopped almost all of the tourism into that country.
3.1 Tsunamis
A tsunami is a series of very large ocean waves caused by an underwater earthquake or volcanic eruption which damage infrastructure, buildings, attractions, ports, coastlines and beaches.
3.2 Earthquakes
An earthquake is a sudden and violent shaking of the ground caused by movements within the earth’s crust or volcanic activity, and can cause great destruction.
3.3 Natural disasters
A natural disaster is an event caused by the forces of nature such as a tornado and can cause great destruction.
3.4 Global recession
A global recession is a period of general economic decline around the world and has a direct impact on tourism demand because people have less disposable income to spend.
3.5 Diseases
A disease is an abnormal condition which interrupts the normal bodily functions leading to feelings of pain and weakness. Diseases such as malaria, yellow fever, and more recently bird flu and swine flu, not only make travelling fearful of visiting certain areas.
3.6 Accidents
Transport accidents can have a negative impact on tourist numbers as they affect the safety image of a destination.
3.7 Economic upsets
Tourism establishments such as hotels and tourist attractions can experience economic upsets when they have financial trouble or difficulty as a result of low visitor numbers.
The impact of reduced tourism on a country’s economy can be disastrous: it may lead to increased unemployment, homelessness, deflation, crime, and other social and economic problems. Examples include:
Questions
Planning is very important in any industry and more so in the tourism industry than most because attention to detail makes the difference between a successfully planned our and an unsuccessful one.
In this topic you will learn about:
Tour plans and route planning
Compiling a tour budget
Travel documentation
World time zones
Compiling a day by day itinerary
2. Safety of tourists
Calculations of world times when travelling between countries
People travel for many different reasons. Whatever the reason if it is well planned it is more likely to be successful.
1.1 What is a tour plan?
A good tour plan should indicate:
1.1.1 Types of tours
Packaged tour: Is also known as an inclusive tour because the price is all-inclusive. The itinerary for a packaged tour is planned in advance.
Escorted packaged tour: A tour guide escorts the tour and takes care of all services from the beginning to the end of the tour.
Group packaged tour: These tours are popular with first time travellers and for tourists who prefer to travel in a group. The itinerary is set and cannot be changed and because the tour was organised for large groups of tourists makes the tour more affordable.
Independent packaged tour: These tours are planned to meet the individual needs of the tourist and are flexible and can be changed if necessary.
Scheduled tours: Scheduled tours have a timetable with set departure and arrival times.
1.3 Tourists profiles
A tourist profile is a summary of personal information and facts relevant to the tourist’s wants and expectations. The tourist profile helps the travel agent plan a tour and make sure that the needs of the tourist are met.
1.4 Available budget
A tour budget is calculated using the costs of the different tour components. They include:
1.5 Available time
When developing a tour plan, it is important to consider how much time a tourist has available.
Steps need to be taken to avoid wasting time while also ensuring tourists have adequate leisure and relaxation time.
Route planning involves choosing the best way to travel to all the destinations identified in the tour plan. The distances between the places visited en route must be taken into account.
The following will help to develop a logical route plan:
3.1 Transport
Tour plans use a variety of transport options for each leg of a tour. Examples include cars, buses, planes, etc...
A customer’s choice of transport may also be influenced by how environment friendly they are. They might take into account by these facts:
3.2 Accommodation
Most countries offer a wide range of accommodation options ranging from luxury safari lodges to backpackers hostels. The type of establishment chosen by the tourist is influenced by a combination of factors, including:
4.1 Attractions
When planning a tour the interests and preferences of the customers will determine the choice of attractions. The attractions offered on a tour plan are often one of the main reasons why a customer will select one tour plan above another.
4.2 Activities
The popularity of a tour plan depends on the activities that are available at the attraction sites and destinations. Tourists enjoy and remember a tour if they participate in and experience these activities.
A tour plan gives general information about a tour. The specific, detailed information is presented in an itinerary which is a written day-by-day schedule of the dates, times, transport, accommodation, and activities that will make up the trip.
There are three different types of itineraries:
The main aspects to be considered in an itinerary are:
Factors to consider when drawing up an itinerary include:
3.1 Presentation of an itinerary
3.2 Format of an itinerary
A general itinerary may be presented in paragraph form or in tabular form.
A tour budget is a document that specifies all the costs of a tour and helps you plan accordingly.
Establishing what the tour will cost is important as the cost will determine who will be able to afford
to go on it.
The development of a tour budget is dependent on a combination of factors such as:
A basic tour budget shows what the tour will cost, what this includes and excludes and the cost of the optional extras.
In order to reduce the risk of contracting a disease, tourists should obtain advice on the possible health risks in the areas to which they are travelling. Other possible health risks include the effects of unusual climatic conditions, contact with insects and animals, and physical injuries.
1.1 World Health Organisation (WHO)
The WHO is a specialized agency of the United Nations (UN) that is concerned with international public health. It was established on 7 April 1948, with headquarters in Geneva, Switzerland. Since its creation, WHO has been responsible for playing a leading role in the eradication of smallpox. Its current priorities include communicable diseases, in particular, HIV/AIDS, malaria and tuberculosis; the mitigation of the effects of non-communicable diseases; sexual and reproductive health, development, and aging; nutrition, food security and healthy eating; occupational health; substance abuse; and drive the development of reporting, publications, and networking.
1.2 Health certificates
Global travel on this scale exposes tourists to a range of health risks. Many of these risks can be reduced by taking precautions before the start of a journey.
A health certificate is an official document that is issued and signed by a health authority. It confirms that an individual has received the vaccine or prophylactic as indicated on the certificate.
1.3 Travel clinics
The spread of infectious diseases from one part of the world to another is not something new but it remains a concern. Travel clinics providing up-to-date specialised international travel healthcare.
1.4 Vaccinations
Millions of deaths have been avoided because of worldwide immunisation programmes against infectious diseases. For tourists this is important as safe and effective vaccines help to reduce the possibility of contracting a disease when travelling to high-risk destinations.
Compulsory vaccinations: The WHO decides which vaccinations are compulsory.
Recommended vaccinations: These vaccinations are not enforced but are recommended as a precaution.
Destinations are considered high-risk if they are in regions that pose a threat to the health of the tourist. Areas where malaria, bilharzia and cholera are found are high-risk destinations.
2.1 A region known to have malaria
Malaria is a potentially fatal disease transmitted by the bite of mosquitoes.
Precautions that can take when travelling in malaria-infested areas include:
2.2 A region known to have bilharzia
Bilharzia is also known as schistosomiasis and is caused by parasites that contaminate fresh water, especially when infected people urinate or defecate in the water.
Precautions are necessary when travelling in areas known to have bilharzia:
2.3 A region known to have cholera
Cholera is a bacterial disease transmitted mainly through contamination of food and water in areas where there is poor sanitation and hygiene.
Tourists in areas where cholera has occurred should observe the following precautions:
Proof of vaccination is often required for tourists travelling into or from countries with a high risk of an infectious disease. An example is a yellow fever vaccination.
4.1 The risk of TB for inbound tourists
Tuberculosis (TB) is a preventable and curable infectious bacterial disease. It is prevalent in South Africa. Examples of behaviours of inbound tourists that increase their likelihood of being exposed to the risk of TB include:
4.2 The risk of HIV and AIDS for inbound tourists
Tourists must be aware of the risk of HIV and AIDS when they travel as there is no vaccine available to prevent infection.
The WHO recommends six general health precautions for tourists visiting health risk areas. Their six ‘I’s’ are:
The safety of tourists when they are in South Africa is important for the following reasons:
Tourists need travel documents to gain entry into a country for security, health, safety, and identification. These documents change from country to country.
The following travel documents are required for entry into a country:
1.1 Valid passport
A passport is an official government document that certifies one's identity and citizenship and permits a citizen to travel abroad.
There are different kinds of passports:
An official passport is issued to someone who is travelling internationally on official business for the country and is usually a different colour from regular passports. A diplomatic passport is issued to someone who will travel internationally on official state business such as diplomats and consuls when they are posted to foreign countries. A temporary passport is issued to South African citizens who have applied for a regular passport but need to travel urgently before the regular passport can be issued.
1.2 Visa
A visa is an endorsement on a passport indicating that the holder is allowed to enter, leave, or stay for a specified period of time in a country. A visa application must usually be made before departure as visas are not often issued at ports of entry.
Examples of different kinds of visas are:
1.3 Health certificates
A health certificate is an official document that is issued and signed by a health authority which confirms that an individual has received the vaccine as indicated on the certificate.
1.4 Requirements for tourists travelling between countries
Tourists must have proof of the following before travelling between countries:
An IDP is a document recognized by many countries which allows the permit-holder to drive a private motor vehicle in that country. The Automobile Association of South Africa (AA) has the authority to issue the permit. An IDP can be obtained directly from any AA Autoshop or AA Travel Experience Store in South Africa.
3.1 Requirements for obtaining a passport
To apply for a passport the following is required in South Africa:
4.1 Requirements for obtaining a visa
The basic requirements to qualify for a visa include:
All travellers arriving at South Africa’s ports of entry, whether by land, sea or air, are required to pass through immigration control before collecting their baggage. The South African Department of Home Affairs provides this service. Travellers then pass through customs control where their baggage may be X-rayed or examined by customs officers. After passing through immigration control travellers collect their baggage. They then have a choice of two channels. By selecting the green channel, a traveller indicates that they have no goods to declare, in other words, they have no prohibited or restricted goods, and no goods in excess of the duty free allowances.
5.1 Duty free goods
Duty free goods are those goods that travellers are allowed to bring into South Africa without paying customs duty or value-added tax (VAT).
5.2 Prohibited goods
Prohibited goods refer to those goods that travellers are not allowed, by law, to bring into South Africa such as illegal drugs.
5.3 Travel allowances
This refers to how much money a traveller is allowed to take out of South Africa. These transactions are subject to exchange control regulations, governed by the South African Reserve Bank.
1.1 Time zone
The phrase time zone refers to any of the 24 longitudinal divisions of the earth's surface in which a standard time is kept, the primary division being that bisected by the Greenwich meridian. Each zone is 15° of longitude in width, with local variations, and observes a clock time one hour earlier than the zone immediately to the east.
Most countries have only one time zone, for example, South African. More than one time zone may apply if countries extend across many degrees of longitude.
1.2 UTC (Universal Time Coordinate)
UTC is the primary time standard by which the world regulates clocks and time. It is one of several closely related successors to Greenwich Mean Time (GMT).
1.3 Greenwich
The 0º line of longitude passes through Greenwich in London, England. This line divides Earth into the Western and Eastern Hemispheres and is also known as the prime meridian.
1.4 Hemispheres
Earth is divided into the Northern and Southern Hemispheres by the equator, and the Eastern and Western Hemispheres by the Greenwich Meridian.
1.5 Equator
The equator is the 0º line of latitude. It is located at equal distance from the North and South Poles and divides Earth into the Northern and Southern Hemispheres.
1.6 Seasons
Seasons are the four divisions of the year: spring, summer, autumn and winter. The four seasons are the result of Earth’s changing position with the sun.
1.7 Standard time
The local time at the standard meridian of a country is called standard time. Standard time is the same for all places in that particular country and is calculated from Greenwich.
1.8 Local time
Local time is the specific time at any given place. is the time everyone in an area agrees upon as the local time.
1.9 The International Date Line (IDL)
The International Date Line (IDL) is an imaginary line on the Earth’s surface at 180° longitude.
1.10 The 24-hour clock
The 24-hour clock is a convention of time keeping in which the day runs from midnight to midnight and is divided into 24 hours, indicated by the hours passed since midnight, from 0 to 23. This system is the most commonly used time notation in the world today.
1.11 Latitude and longitude
A geographic coordinate system is a coordinate system that enables every location on the Earth to be specified by a set of numbers. They lie east and west of the Greenwich Meridian and divide the world into 24 time zones.
The map shows the different time zones around the world.
DST is a way of making better use of daylight by setting the clock ahead during summer months (thus losing one hour) when DST starts, and setting it back again one hour in the winter months (thus gaining one hour) when DST ends.
Reasons for implementing daylight saving time are:
Time zone differences must be taken into account during long flights eastward or westward because an hour is lost for each time zone that is crossed when flying eastwards.
Travellers must be familiar with the time changes, especially when flying east or west across time zones. They must know when a country has DST and whether they will be crossing the International Date Line as this can affect the times of flight changes, catching trains, etc...
1.1 Determining the time and day in a different time zone
Step 1: Locate the place for which you already know the time and day on a time zone map.
Step 2: Locate the place for which you wish to know the time and the day of the week on a time zone map.
Step 3: Count the time zones between the two places
Step 4: Calculate the time by either adding or subtracting an hour for each time zone, depending on whether you are moving east or west.
Step 5: If you have crossed the International Date Line, identify the day.
1.2 Calculating arrival, departure and flying time
Time difference calculations are also important when calculating arrival, departure, and flying times.
1.3 Calculating time using DST
When DST applies to countries one has to add an hour to the time zone for countries to the east and subtract an hour for countries to the west.
2.1 Definition of jet lag
Jet lag is a general feeling of fatigue and disorientation often experienced by travellers by jet aircraft who cross several time zones in relatively few hours.
2.2 Symptoms of jet lag
The main cause of jet lag is the inability of the body to immediately adjust to the time in a different zone.
Other factors that contribute to jet lag are:
2.3 How to minimise and ease the effects of jet lag
Before the flight, travellers should make sure:
During the flight, travellers should make sure:
After the flight travellers should make sure:
Questions
This topic examines the different world famous icons of different countries, their locations and why they are tourist attractions.
In this topic you will learn about:
Units 1-4 Famous world icons and attractions
Successful tourist attractions
In your learner book units 1-4 of topic 1 term 2 deal with the different icons that are tourist attractions in different countries. You need to make sure that you know what icon belongs to which country.
Tourist attractions are places that tourists like to visit, such as national parks and heritage sites. An icon is a tourist attraction that is world famous and comes to
represent or be symbolic of the country or city in which it is located. Icons can be human-made or natural. A World Heritage Site is a place such as a forest, mountain, lake, desert, monument, building, complex, or city that is listed by UNESCO as being of special cultural or physical significance.
Icons are unique and tourists find them fascinating because they are the only one of their kind in the world. Many icons are also proclaimed as World Heritage Sites by UNESCO because of their special cultural or physical significance. Sometimes an icon provides a sense of identity, such as the Vatican City to people of the Catholic faith. An icon may be linked to famous people such as Robben Island and Nelson Mandela.
2.1 The economic significance of icons for a country
Tourism icons are used by the tourism industry as pull factors and are often included in tour packages and can therefore make a significant economic contribution to a country or region where they are located. Businesses involved in the tourism industry are interrelated and dependent on each other. For this reason the economic benefits of tourism reach almost everyone in the region in some way. This is called the multiplier effect which is an effect in economics in which an increase in spending produces an increase in national/regional income and consumption greater than the initial increase.
Different types of tourists will visit different types of icons, depending mainly on their interests, age, professions and income. A young adventurous tourist might climb Mount Everest while an older wealthier tourist might relax on the beaches of the French Rivera.
The numbers of tourists visiting icons are used to plan:
Examples of famous world icons include:
Australia: Sydney Opera House, Ayers Rock/Uluru-Kata Tjuta National Park.
Brazil: The Statue of Christ the Redeemer
Canada: Niagara Falls
Italy: The Colosseum, The Leaning Tower of Pisa, Venice, Vatican City
Egypt: The Great Pyramids of Giza, The Sphinx
Germany: Berlin Wall and the Brandenburg Gate, The Black Forest
China: The Great Wall of China
Israel: The Dome of the Rock, The Wailing Wall
Greece: The Parthenon
India: The Taj Mahal
Turkey: The Blue Mosque
France: The Eiffel Tower, The French Riviera
Japan: Mount Fuji
Mexico: Chichén Itzá (Yucatan)
Jordan: Petra
Nepal: Mount Everest
Saudi Arabia: Mecca
Switzerland: The Swiss Alps
Netherlands: Mill Network at Kinderdijk, Elshout Peru: Machu Picchu (Cuzcu)
Poland: Auschwitz Concentration Camp
Portugal: The Algarve
Spain: Alcazar of Segovia, Bullfights
Thailand: Floating markets
Russia: The Kremlin, Red Square
United Kingdom: Big Ben, Buckingham Palace, Tower of London, London Bridge
United States of America: The Statue of Liberty, The Grand Canyon.
Attractions form a key component of the tourism industry. They draw local and international tourists to cities and regions and motivate tourists to visit a destination.
Successful tourist attractions are those that:
The five main areas in attraction management that impact on the success of an attraction are:
1.1 Marketing of tourism products locally and /or internationally
Successful marketing strategies are key to the success of tourist attractions. It is important that the marketing technique that is used will improve visitor numbers, and stimulate out of season and seasonal visits. Furthermore, the strategy must create a brand awareness and help to reach the budgeted income. The strategy must make the tourist attraction stand out from all other available options.
1.2 Sustainable and responsible management plans
Sustainable and responsible management entails sound management of both the financial and environmental aspects of the tourist attraction.
1.2.1 Environmental management
The environment on which the attraction is dependent for its existence must be looked after and developed.
1.2.2 Financial management
Financial management issues that must be well managed to ensure the success of an attraction are:
1.3 Efficiency and ethical behaviour of staff and management
Labour costs will make up a significant portion of the budgeted costs. It is therefore important that staff are managed well and that they are efficient and behave ethically. To ensure this, good staff planning and training are needed. Good induction programmes and continuous training are important to make sure that staff obtains the skills needed.
1.4 Positive experience of visitors
To ensure positive visitor experiences it is important that:
1.5 Safety and crime prevention
The safety and security of tourists is the highest priority of any tourist attraction and a well co-ordinated strategy must be developed to protect tourists and make them feel safe.
1.6 General appearance and upkeep of the attraction
A successful attraction should have a pleasing and clean appearance. This means that regular maintenance of the facilities must take place.
1.7 Considering the needs of people with disabilities
Tourism attractions should be accessible to all including people with disabilities.
1.8 Universal access
Tourists have different needs. To be successful an attraction should have universal access. In other words it must be accessible to a wide range of tourists.
Key aspects that make an attraction accessible include:
These include:
Questions
When tourists travel to another country they have to exchange their own currency for that of the country they are visiting in order to buy things such as food, gifts or pay for accommodation. The rate at which one currency can be exchanged for another affects not only the decisions made by tourists to visit a particular country but also the amount of foreign currency earned by a country.
In this topic you will learn about:
Exchange rate conversions
Exchange rates and the economy
The impact of exchange rates on tourism
The phrase foreign exchange refers to the exchange of one currency for another, or the conversion of one currency into another currency. Foreign exchange also refers to the global market where currencies are traded virtually around-the-clock. The term foreign exchange is usually abbreviated as "forex".
The GDP is a measure of a country’s national income. GDP is a measure of all the goods and services produced domestically, usually in a period of one calendar year. The components included are consumer spending, investment made by industry, value of exports minus value of imports, and government spending.
Our economy is diversified with key economic sectors contributing to the GDP, including:
If there are more goods and services produced in a year than in the previous year, we say there has been growth in the GDP. If GDP is increasing the economy is in good health and the nation is progressing and standards of living are improving.
The multiplier effect refers to the increase in final income arising from any new injection of spending. Every time there is an injection of new demand into the circular flow there is likely to be a multiplier effect. This is because an injection of extra income leads to more spending, which creates more income, and so on.
2.1 The tourism multiplier effect
Tourism not only creates jobs in the tourism industry, it also encourages growth in other sectors of industry. This is known as the tourism multiplier effect. Simply stated, this is how many times money spent by a tourist circulates through a country’s economy.
2.2 The multiplier effect and the GDP
The multiplier effect is an effect in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent. Therefore the tourism multiplier affects GDP and is very important for South Africa because we need to grow the economy and create more jobs.
Strong currency, also known as a hard currency, refers to a currency when it is worth more relative to other currencies. A weak currency, also known as a soft currency, is a currency whose value has depreciated significantly over time against other currencies and will fluctuate erratically or depreciate against other currencies. A weak currency is often the result of political or fiscal instability in the country. The terms strong rand and weak rand are used in the foreign exchange
market to describe the value and strength of the South African Rand against other currencies. When one unit of our currency trades for more units of another currency, it is known as a strong rand.
Some of the effects of a weak currency:
Effects of a strong currency:
Currency rates, also known as foreign exchange rates or simply exchange rates, tell how much of one currency you need to purchase a unit of another currency.
In order to calculate a foreign exchange rate follow these steps:
7. Differentiation between bank selling rate and bank buying rate
In the trading world of the currency exchange markets, a different buying rate and selling rate will be quoted. Exchange rates are quoted in two different rates:
The buying rate (BBR) is the rate at which the exchange bank will buy a currency. The selling rate (BSR) is the rate at which the exchange bank will sell a currency.
The quoted rates will include an allowance for a dealer’s margin (profit) in trading. Alternatively the profit may be recovered in the form of a commission. Banks perform a vital role in foreign currency exchange transactions. Banks trade in international currencies in order to make a profit.
8. Effect of exchange rates on international tourism and its influence on South African travel patterns
Exchange rates can impact the tourism industry either negatively or positively. A fall in the value of the South African rand has a twofold effect:
Tourist travel patterns are influenced by the exchange rates as they affect the tourist’s purchasing power. Tourists visiting South Africa from another country will have more or less money to spend depending on the exchange rate.
9. Fluctuations in the exchange rate
Factors that determine exchange rates are:
Questions
In this topic you will learn about:
Forms of payment when travelling internationally
Foreign Market Share
Concepts
Foreign arrivals to South Africa
Most visited provinces in South Africa
Length of stay in each province
Average expenditure per tourist
Activities undertaken whilst in South Africa
There are several methods tourists can use to pay for goods and services when travelling in a foreign country. Each method of payment has its advantages and disadvantages and tourists need to do research before deciding which method is best suited to them.
1. Electronic fund transfers (EFT)
An EFT is the electronic exchange, transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems.
Its advantages are:
Its disadvantages are:
2. Telegraphic transfers (SWIFT transfers)
Telegraphic transfers are a method of electronic funds transfer from one person or institution to another. A wire transfer can be made from one bank account to another bank account or through a transfer of cash at a cash office. Wire transfer systems are intended to provide more individualized transactions than bulk payment systems.
Its advantages are:
Its disadvantages are:
3. Bank drafts
A banker's draft (also called a cashier's check) is a cheque where the funds are taken directly from the financial institution rather than the individual drawer's account.
Its advantages are:
Its disadvantages are:
4. Internet payments
Internet payments describe any online payment (on the internet) for a product or service. Its advantages are:
Its disadvantages are:
5. Foreign Bank notes
Foreign bank notes are cash (coins and notes) that the tourist uses in the country that they are visiting.
Its advantages are:
Its disadvantages are:
6. Credit Cards
A card issued by a financial company giving the holder an option to borrow funds, usually at point of sale. Credit cards charge interest and are primarily used for short-term financing. Interest usually begins one month after a purchase is made and borrowing limits are pre-set according to the
individual's credit rating.
Its advantages are:
Its disadvantages are:
7. Preloaded foreign currency debit cards
These cards, issued by all major banks, are preloaded with foreign currency before tourists travel and are also known as ‘cash passports’.
Its advantages are:
Its disadvantages are:
8. Traveller’s cheques
A traveller’s cheque is a cheque issued by a financial institution that can be used as a form of payment and, if necessary, exchanged for cash.
Its advantages are:
Its disadvantages are:
1.1 Inbound tourists
Inbound tourists are incoming tourists, ie - people travelling to South Africa.
1.2 Foreign market share
Foreign market share is the portion of the inbound tourism market that a specific country controls and includes both the number of tourists and the amount they spend.
The two main categories of foreign markets are:
1.3 Arrival statistics
Arrival statistics indicate the numbers of international tourists that arrive in South Africa. These numbers are collected, classified, analysed and interpreted.
Foreign tourist arrivals vary from year to year. We use the phrase source markets to describe the main areas from which these tourists come from. One of South
Africa's source markets is Europe. Examples of emerging foreign markets are India and China.
Questions
International tourists visiting South Africa form a vital part of our economy. In this topic you will learn about:
Marketing South Africa
1. The importance of marketing South Africa internationally
Tourism is a very important part of South Africa’s economy. In order to ensure that tourism continues to grow, South Africa must be actively marketed to international tourists as a tourism destination. There are two main objectives in marketing South Africa as a destination:
2. The core business of South African Tourism (SAT)
SAT has been specifically tasked with marketing South Africa as a destination, both domestically and internationally and can be described as a National Destination Marketing Organisation (DMO).
2.1 Marketing South Africa internationally as a tourism destination of choice
SAT undertakes a number of marketing activities. These include:
SAT divides the international market into segments to identify the most important markets on which to focus. SAT categorises market segments as core markets, investment markets, tactical markets, watch-list markets, markets of strategic importance and strategic air link or hub markets. Core markets are the most important and receive the most attention.
2.2 Maintaining and enhancing the standard of facilities and services in the industry
The product aspect of marketing is one of the five Ps of the marketing mix. Since facilities and services form the basis of the tourism product, the quality of these facilities and services needs to be maintained or, if necessary, improved. One of the ways in which SAT can do this is through the Tourism Grading Council of South Africa (TGCSA). The TGCSA evaluates accommodation establishments, such as guesthouses and hotels, and awards them a star grading.
Other initiatives to ensure that the standard of facilities and services are improved include:
2.3 Coordinating the marketing activities of role players in the industry
SAT spends a large amount of time and money on marketing South Africa as a destination. Other tourism organisations should use the marketing done by SAT as a platform for their own marketing initiatives. Marketing efforts should be coordinated so that they align with the strategy and positioning of South African Tourism. For this reason SAT works closely with other Direct Marketing Organisations (DMOs) at both provincial and local levels. SAT coordinates the marketing efforts of the different provinces and cities with the national marketing efforts.
3. Opportunities for marketing South Africa internationally
Tourism intermediaries are very important in generating tourism business for a destination.
International travel trade shows and expos are hosted around the world. The two best known of these are the International Tourism Exchange (ITB) in Berlin and the World Travel Market (WTM) in London.
3.1 ITB (Berlin)
The ITB takes place annually in March. ITB draws more than 170 000 visitors, including 108 000 trade visitors, and over 10 000 exhibitors from 180 countries.
3.2 World Travel Market (London)
The idea is to create opportunities for a wide variety of people from the global travel trade to meet, network, negotiate and conduct business under one roof. This is an annual event that normally takes place in November.
4. Funding SAT’s international marketing initiatives: the role of Tourism Marketing Levy South Africa (TOMSA)
SAT needs a great deal of funding because international marketing is expensive. Tourism Marketing Levy South Africa (TOMSA) was set up in 1998 to raise additional funds for the marketing of destination South Africa. It is a private sector initiative. South African Tourism (SAT) makes use of these funds to promote the country as a preferred tourist destination, both locally and internationally.
The TOMSA levy is 1% of each confirmed booking. The collection of the TOMSA levy by tourism businesses is voluntary. The amounts paid are not the same as paying a tax to the business. The tourist pays the levies and the business just acts as a collector of the levies. These levies are paid to the Tourism Business Council of South Africa (TBCSA), which administrates TOMSA.
5. South Africa’s brand logo
South African Tourism’s logo and corporate identity were redeveloped in 2009 in collaboration with the International Marketing Council (IMC). The logo uses the colours of the South African flag and the inspiration for the logo is the pride in South Africa that South African Tourism strives to nurture among all South Africans.
6. Opportunities to promote South Africa and the Southern African region to the world
6.1 Tourism Indaba
This is owned by SAT and is one of the largest tourism marketing events on the African calendar.
Indaba can be compared to other ‘must visit’ events of its kind on the global calendar, such as the WTM and ITB. This tourism trade event showcases a wide variety of Southern Africa’s best tourism products, and attracts international visitors and media from across the world. Indaba takes place annually over four days normally in mid-May. It attracts well over 13 000 delegates from the travel, tourism, and related industries.
6.2 The Getaway Show
The Getaway Show takes place annually both in the Western Cape, usually during March/April, and in Gauteng during August/September. The show is organised by the publishers of Getaway magazine and includes a wide variety of exhibitors, including outdoor equipment companies, safari tour
operators, and tourist destinations in Southern Africa.
Questions
In this topic you will learn about:
The three pillars of sustainable tourism
Responsible tourism and tourists
The phrase bottom line refers to the bottom line of a financial statement, called the income statement. This line shows how much profit a company has made in a particular period.
As international tourism continues to grow, governments have realised that tourism has more than just an economic impact on a country. Tourism also has social (people) and environmental (planet) impacts. These two aspects are added to the economic (profit) aspect to form the triple bottom line approach.
If profit was the only objective, human and natural resources could be exploited so balanced approach is required.
2.1 Resource management (energy and water)
Resource management refers to the way in which scarce and limited resources are managed. It is important that tourism businesses reduce their energy usage to help reduce pollution and protect our limited resources. Simple things like switching off unused appliances and lights that have been left on help conserve electricity. The supply of fresh water is limited and large parts of South Africa receive little rain and are very dry. We need to conserve water to ensure that there is enough water for everyone. Simple things like fixing leaking taps help conserve water.
2.2 Waste management
Waste management refers to the management of the amount of waste generated by a tourism business. It is important that tourism businesses manage their waste since waste has a negative environmental impact. The three Rs can be applied to manage waste - reduce, re-use and re-cycle.
2.3 Litter control
Litter control is the reduction or avoidance of litter. Tourists should be encouraged not to litter.
Tourism organisations should ensure that they provide enough rubbish bins, and encourage tourists to place litter in the correct bins for recycling. They should also encourage tourists to reduce, re-use and recycle.
2.4 Pollution control
Tourism organisations should use environmentally friendly products where possible. This is done through pollution control. Pollution should be reduced or completely avoided. This will ensure that fewer harmful chemicals that pollute the ground and water are produced. Certain types of waste, for example, used motor oil and fluorescent tube lights, should be handled by professional waste management companies.
2.5 Environmentally friendly building
Environmentally friendly building is the construction and design of new buildings, such as hotels, which are designed to have the minimal negative impact on the environment both during building and once operational.
2.6 Promotion of indigenous flora and control of alien invasive plants in grounds and gardens
Alien invasive plants are plants that do not naturally occur in a particular area. They often grow out of control, affecting the indigenous flora. It is better to use indigenous plants when planning a garden, for example, for a new hotel, as they use less water and are part of our natural heritage.
If tourism businesses do well, they have a positive economic impact on a destination. Tourism businesses have an important role to play in the responsible and sustainable management of tourism.
3.2 Responsible attitude of a tourism business towards the people and the environment it affects
Tourism businesses must realise that their businesses are about more than just profit. They have a responsibility towards the community and the environment in which they operate. The most important aspect of this responsible attitude of a tourism business is that they do not exploit people or the environment for profit.
3.3 Ways to manage economic impacts
4.1 Positive and negative effects of tourism on local communities, culture and heritage
Tourism can have both positive and negative impacts on communities, and their culture and heritage.
Examples of positive effects include:
Examples of negative effects include:
4.2 Corporate social investment (CSI)
Corporate social investment involves a contribution by a business (corporate) to the community in which it operates and can take many forms.
Most responsible tourism guidelines and handbooks focus on what tourism businesses should do to be more sustainable. There are also several organisations that have created lists of ways in which tourists can be more responsible travellers.
People all over the world are becoming more concerned with sustainability. As a result, tourists are more concerned about whether tourism businesses are implementing responsible tourism practices. Tourism destinations can attract the right type of tourists by marketing the destination as a
responsible tourism destination.
Fair Trade in Tourism South Africa (FFTSA) is a nongovernmental organisation (NGO) that promotes sustainable tourism development and responsible tourism management.
FFTSA promotes sustainable and responsible tourism by:
Questions
In this topic you will learn about:
World Heritage Sites
Heritage is the legacy preserved by past generations for future generations. In order to be given World Heritage status, sites must have outstanding natural, cultural or historical value and meet at least one of UNESCO’s ten selection criteria. A country can apply to the UNESCO World Heritage Committee for a site to be proclaimed a World Heritage Site. A place that is declared a World Heritage Site is proclaimed by the Minister of Environmental Affairs and Tourism by notice in the Government Gazette and thereafter included in the World Heritage List. An example is Robben Island.
The United Nations Educational, Scientific and Cultural Organisation (UNESCO) is a leading international organisation responsible for the protection and development of heritage.
2.1 UNESCO logo and main functions
The main functions of UNESCO are in five major areas. These are:
Examples of UNESCO sponsored projects include literacy and teacher-training programs.
The three types of World Heritage Sites are:
Cultural: Sites accorded the status on the basis of their tangible and intangible cultural heritage
Natural: Sites accorded status on the basis of their natural heritage
Mixed: Sites accorded status on the basis of both cultural and natural heritage.
There are eight heritage sites in the country that are inscribed in the World Heritage List because of their unique cultural and natural value to all humanity.
They are:
They are valuable in the following ways:
Questions
In this topic you will learn about:
Methods of obtaining customer feedback and measuring customer feedback
Customer feedback is information coming directly from customers about the satisfaction or dissatisfaction they feel with a product or a service. Customer comments and complaints given to a company are an important resource for improving and addressing the needs and wants of the customer. The information is procured through written or oral surveys, online forms, emails, letters, or phone calls from the customer to the company.
The top four reasons for getting customer feedback are:
There are a number of methods available for companies to use to do this, such as:
The following steps can be taken to analyse customer feedback:
The impacts that good service delivery have on an organisation’s business profitability include:
Questions
In this topic you will learn about:
Professional image in the tourism industry
Conditions of employment
The purpose and value of a code of conduct
It is important that people in the tourism industry portray a professional image. The image of a tourism business and its staff is of great importance when dealing with tourists from various countries, cultures and personal backgrounds.
The following factors contribute towards the professional image of a company:
Tourists expect professionalism from tourism employees, who must be presentable, efficient and well trained. If service providers are unprofessional, it creates a poor image.
Staff must have a professional image which includes:
Conditions of employment refer to the terms under which an employer has employed a person.
Conditions of employment cover a broad spectrum of work related issues. Employees should read these conditions very carefully before signing a contract to avoid any misunderstandings or disagreements.
The Employment Act applies to all employers and workers, but excludes:
The following details are normally included in an employment contract:
The Basic Conditions of Employment Act stipulates that:
A code of conduct is a set of rules outlining the responsibilities of or proper practices for an individual, party or business. The code of conduct thus takes the aims and objectives of the organisation into account. The code of conduct contains procedures to follow in certain situations and requires certain behaviours.
A code of conduct:
A code of conduct:
3.1 South African National Parks
The Board of SANParks is highly committed to a policy of fair dealing and integrity in the conduct of their business. Their commitment is based on the belief that all activities should be conducted honestly, fairly and legally. The primary purpose of the code is a positive one: to promote exemplary conduct.
3.2 Southern Africa Tourism Services Association (SATSA)
The SATSA Code of Conduct aims to ensure that the public receive the best possible service from members. The association wishes to maintain and enhance their reputation, standing and good name.
Questions
Topic 1
Topic 2
Topic 1
Topic 2
Topic 1
Topic 2
Topic 3
Topic 4
Topic 5
Topic 1
Title | Author | Page |
Remember | C. Rossetti | 2 |
First Day after the war | K. Mazisi | 6 |
The Zulu Girl | R. Campbell | 8 |
Motho ke motho ka batho babang | J. Cronin | 14 |
A Hard Frost | CD Lewis | 16 |
An African thunderstorm | D. Rubadiri | 20 |
An African Elegy | Ben Okri | 22 |
Somewhere I have never travelled | ee cummings | 26 |
The garden of Love | W. Blake | 28 |
Felix Randal | GM Hopkins | 30 |
Vultures | Chinua Achebe | 32 |
QUESTION 2: POETRY – CONTEXTUAL QUESTION
Read the poem below and then answer the questions that follow.
REMEMBER – Christina Rossetti
2.1 Account for the repetition of the word, 'remember' throughout the poem. (2)
2.2 Refer to lines 5–8: 'Remember me when … then or pray.'
Explain what these lines suggest about the speaker's relationship with her loved one. (2)
2.3 Comment on the significance of the reference to 'the darkness and corruption' (line 11) in the context of the poem. (3)
2.4 Refer to lines 13–14: 'Better by far … and be sad.'
Critically comment on how the speaker's tone in these lines reinforces the central idea of the poem. (3) [10]
QUESTION 2: POETRY – CONTEXTUAL QUESTION
'REMEMBER' – Christina Rossetti
2.1 The repetition highlights the speaker's desire to be remembered after her death as she fears being forgotten. Initially, she wants to be in her loved one’s memory constantly. Later, she wants to be remembered only if it does not cause her loved one pain.
Candidates might refer to the repetition as reflecting the imperative tone to create a forceful and urgent appeal. They might also comment on how the repetition emphasises the depth of love the speaker feels for her loved one.
[Award 2 marks for any two relevant and distinct points.] (2)
2.2 The lines suggest a close, intimate relationship where plans are made for a shared future. The lines also allude to the active role the loved one plays in the plans; this possibly suggests his significant role in the relationship. The speaker's reminder to her loved one that a time will come when he will not be able to 'counsel' or 'pray' for her suggests that he offers her guidance, support, advice and comfort.
[Award 2 marks for any two relevant and distinct points.] (2)
2.3 Darkness suggests death and the unknown. It conveys her fear of death and a sense of foreboding of the desolation/despair that her passing might bring. The word, 'corruption' refers to the dreadful physical effects of illness which may alter the body; it also refers to the decay of the body after death. The speaker is concerned that witnessing the harsh physical manifestations of the illness will leave a sad memory of what she used to be. This might lead to a distorted image of her that would bring pain to her loved one. It is for this reason that she would rather he forget her.
[Award 3 marks only if ‘darkness’ and ‘corruption’ are discussed.] (3)
2.4 A reconciliatory, consoling and comforting tone is used. The speaker is at peace with her impending death and separation from the physical world. The two contrasting ideas, 'forget and smile' and 'remember and be sad', help to reinforce the tone of acceptance. The speaker wants her lover to be happy and continue to live a fulfilled life and not be melancholic when he remembers her.
[Award 3 marks only if the tone and central idea are fully discussed.] (3) [10]
QUESTION 2: POETRY – CONTEXTUAL QUESTION
Read the poem below and then answer the questions that follow.
REMEMBER – Christina Rossetti
2.1 Refer to lines 1–2: 'gone away,/Gone far away'. How do these words set the initial mood of the poem? (2)
2.2 Explain what the use of the phrase, 'the silent land' (line 2) conveys about the speaker's state of mind. (2)
2.3 Refer to line 4: 'Nor I half turn to go yet turning stay.' Discuss the significance of this description in the context of the poem. (3)
2.4 The speaker of this poem is self-centred. Do you agree with this statement? Justify your response by referring to imagery and/or diction. (3) [10]
QUESTION 2: POETRY – CONTEXTUAL QUESTION
'REMEMBER' – Christina Rossetti
2.1 The speaker’s impending death, anticipated by these words, creates a melancholic/sombre/sad/sorrowful mood./This mood creates a sense of loss and finality.
Candidates might refer to the repetition and use of long vowel sounds that create a sad mood.
[Award 2 marks only if mood is discussed.] (2)
2.2 'the silent land' is used euphemistically for death/the afterlife. She might be fearful/apprehensive of the unknown and the isolation she might experience./She might be fearful of being alone and forgotten. The speaker might also see death as mysterious and eerie. Alternatively, she might see it as a peaceful escape from her pain.
[Award 2 marks for two relevant and distinct points.] (2)
2.3 This image signifies the speaker's suspended state/state of limbo. She knows that she is going to die yet tries to prolong her life for as long as possible. For her, death is merely a 'half turn' away. However, her innate strength/determination enables her to turn toward life in order to remain with her beloved for as long as she can.
[Award 3 marks for two ideas well discussed OR three ideas.] (3)
2.4 [Candidates should recognise that a mixed response is the most appropriate response as the speaker's feelings undergo a change in the course of the poem.]
The speaker's concern with self is evident when she commands her beloved to remember her after she dies ('Remember me when I am gone away'). She implores him to remember her when he can no longer discuss their planned future together ('Remember me ... you planned'). The use of the ‘I’ pronoun indicates her self-absorption.
However, in the sestet, her focus shifts from her selfish need to be remembered to a concern for her beloved's happiness ('Better by far ... be sad'). The use of ‘you’ and the transitional ‘Yet’ reflects this change in attitude.
[A cogent 'Agree' or 'Disagree' response is unlikely; however, treat all responses on their merits.]
[Award 3 marks only if reference is made to imagery and/or diction.] (3) [10]
SECTION A: POETRY
PRESCRIBED POETRY
Answer any TWO of the following questions.
QUESTION 1: POETRY – ESSAY QUESTION
Read the poem below and then answer the question that follows.
FIRST DAY AFTER THE WAR – Mazisi Kunene
In 'First Day after the War', the speaker focuses on the celebration of new beginnings.
With close reference to diction, imagery and tone, critically discuss the validity of this statement.
Your response should take the form of a well-constructed essay of 250–300 words (about ONE page). [10]
SECTION A: POETRY
PRESCRIBED POETRY
QUESTION 1: POETRY – ESSAY QUESTION
'FIRST DAY AFTER THE WAR' – Mazisi Kunene
The poem is a celebration of the end of apartheid and of new beginnings.
SECTION A: POETRY
PRESCRIBED POETRY
Answer any TWO of the following questions.
QUESTION 1: POETRY – ESSAY QUESTION
Read the poem below and then answer the question that follows.
THE ZULU GIRL – Roy Campbell
With close reference to the diction, imagery and tone used in this poem, discuss how the speaker explores issues of endurance and hope for the future.
Your response should take the form of a well-constructed essay of 250–300 words (about ONE page). [10]
SECTION A: POETRY
PRESCRIBED POETRY
QUESTION 1: POETRY – ESSAY QUESTION
'THE ZULU GIRL'– Roy Campbell
Despite the oppression and hardship experienced by the tribe, there is a sense of optimism for a better life in the future.
QUESTION 3: POETRY – CONTEXTUAL QUESTION
Read the poem below and then answer the questions that follow.
THE ZULU GIRL – Roy Campbell
3.1 Refer to line 1: 'When in the sun the hot red acres smoulder'. How does this line set the initial mood of the poem? (2)
3.2 Explain what the word, 'flings' (line 3) suggests about the girl's state of mind. (2)
3.3 Refer to line 11: 'Through his frail nerves her own deep languors ripple'. Discuss the significance of this description in the context of the poem. (3)
3.4 The concluding stanza offers visions of the future. Do you agree with this statement? Justify your response by referring to imagery and/or diction. (3) [10]
QUESTION 3: POETRY – CONTEXTUAL QUESTION
'THE ZULU GIRL' – Roy Campbell
3.1 The mood is oppressive/unforgiving/foreboding/unbearable/stifling because of the extreme heat and discomfort experienced by the girl and the labourers.
[Award 2 marks only if mood is discussed.] (2)
3.2 The girl is part of a gang of labourers working under extreme conditions, and this action can be viewed as exasperated and an act of defiance against authority. The girl is exhausted by her physical activity and her exhaustion is compounded by having to carry her child while she works.
[Award 2 marks for two relevant and distinct points.] (2)
3.3 The act of breast feeding not only provides nourishment for the child but also transmits to him the mother's feelings and attitude. The word, 'languors' suggests that the mother is weary and despairing of the situation in which she finds herself. It might suggest that the mother transmits her strength to the child so that one day he will free his people from oppression.
Alternatively, it might be suggested that there is a sense of calmness/tenderness, at least for the present. Her innermost emotions are conveyed during this time of intimacy.
[Award 3 marks for two ideas well discussed OR three distinct ideas.] (3)
3.4 YES.
The mother represents the two visions the oppressed people of South Africa have. As the 'hill', she 'looms' over them, protecting her people who are 'a village ... at rest', implying that they will remain quietly accepting of their position. Alternatively, she is 'the cloud', bringing a 'terrible' storm which will result in a 'coming harvest'. This implies the rising up of the people against their oppressors.
OR
NO.
[A 'No' response is unlikely. However, treat all responses on their merits.]
[Award 3 marks only if reference is made to imagery and/or diction.] (3) [10]
QUESTION 7: POETRY – CONTEXTUAL QUESTION
Read the poem below and then answer the questions that follow.
FUNERAL BLUES – WH Auden
7.1 Account for the speaker's desire to 'Stop all the clocks' (line 1). (2)
7.2 Suggest a reason for the use of capital letters in 'He Is Dead' (line 6). (2)
7.3 Refer to line 9: 'He was my North, my South, my East and West'. Discuss the effectiveness of this image in the context of the poem. (3)
7.4 Critically comment on how the images in the final stanza convey the speaker's attitude toward the death of his loved one. (3) [10]
QUESTION 7: POETRY – CONTEXTUAL QUESTION
'FUNERAL BLUES' – WH Auden
7.1 The clocks indicate normality and the passing of time. By stopping the clocks, he wants other people's normality to cease so that they can relate to his situation. The death of his loved one is so momentous that he feels the world cannot continue.
It was tradition to stop the clocks from ticking when someone in the house had died. The speaker wants the world to acknowledge the death of his loved one.
[Award 2 marks for any one idea well discussed OR any two relevant and distinct points.] (2)
7.2 The capital letters indicate the importance of the loved one in the speaker's life and emphasise the intensity of the grief he is experiencing./It creates the impression that the person who has died is a person of significance within society and thus deserving of outpourings of public grief./Capital letters draw the reader's attention to the stark finality of death.
[Award 2 marks for any one idea well discussed OR any two relevant and distinct points.] (2)
7.3 The deceased was like the points on a compass to the speaker. He provided him with guidance and played a significant role in the speaker's life. The image is effective because, like a compass, the deceased was dependable and one on whom the speaker could always rely. Now that he is dead, the speaker feels lost and without direction. The four compass points emphasise that the deceased was an important part of every aspect of the speaker's life.
[Award 3 marks for any two ideas well discussed OR three ideas.] (3)
7.4 The speaker is devastated/distraught/despondent because he sees no future. He wants the entire universe to come to an end. All sources of light need to be extinguished because to him, everything is now dark and depressing. He wants all of nature to disappear as it is now inconsequential to him. The hyperbolic statements emphasise the intensity of his pain at the death of his loved one.
[Award 3 marks for any two ideas well discussed OR three ideas.] (3) [10]
QUESTION 8: POETRY – CONTEXTUAL QUESTION
Read the poem below and then answer the questions that follow.
MOTHO KE MOTHO KA BATHO BABANG – Jeremy Cronin
(A Person is a Person Because of Other People)
8.1 Explain the significance of the 'mirror' to the prisoners. (2)
8.2 Suggest a reason for the reference to 'person' (line 3) and then 'prisoner' (line 4). (2)
8.3 Refer to lines 13–14: 'Two fingers are … like two antennae.' Discuss the effectiveness of this image in the context of the poem. (3)
8.4 Refer to line 28: 'A black fist.' In your view, is this line an appropriate conclusion to the poem? Justify your response. (3) [10]
AND
QUESTION 8: POETRY – CONTEXTUAL QUESTION
'MOTHO KE MOTHO KA BATHO BABANG' – Jeremy Cronin
8.1 The mirror is used as a means of communication and allows the prisoners to bond with one another./The mirror is a reminder that there is no direct contact between the prisoners, and reinforces their isolation and deprivation.
[Award 2 marks for any one idea well discussed OR any two relevant and distinct points.] (2)
8.2 In 'person', the speaker acknowledges the humanity of the man before referring to his institutionalised state. However, in 'prisoner', the authorities merely view him as a criminal who has no worth. The prisoner is dehumanised by the authorities.
[Award 2 marks for two relevant and distinct points.] (2)
8.3 The 'antennae' are the two fingers used for communication. The description is effective because the wiggling fingers are like moving feelers. Just as insects move their antennae, using them as a sensory organ, the prisoner wiggles his fingers to show he is being watched.
Candidates might refer to the ‘antennae’ being compared to radio/TV antennae that are necessary for the reception of communication signals.
[Award 3 marks for any two ideas well discussed OR three ideas.] (3)
8.4 YES
The poem is about togetherness/ubuntu/solidarity/power in spite of the oppression caused by apartheid policies. The black fist is a symbol of freedom, human rights and solidarity. It is an appropriate conclusion to the poem because the prisoners have been incarcerated as a result of their political activity to champion human rights. The fist is a reminder that the people's human rights have been violated but the people will not give up the fight against oppression. The solidarity of the prisoners is conveyed by the fist.
[A cogent 'No' response is unlikely. However, treat all responses on their merits.]
[Award 3 marks for any two ideas well discussed OR three ideas.] (3) [10]
QUESTION 5: POETRY – ESSAY QUESTION
Read the poem below and then answer the question that follows.
A HARD FROST – Cecil Day Lewis
The poem describes how frost plays a role in the transformation of the landscape.
By close reference to DICTION, IMAGERY and TONE, critically discuss the validity of this statement.
Your response should take the form of a well-constructed essay of 250–300 words (about ONE page). [10]
QUESTION 5: POETRY – ESSAY QUESTION
'A HARD FROST' – Cecil Day Lewis
VALID
The speaker depicts a winter's morning that has been transformed into an image of spring by the harsh winter frost. Despite spring's early arrival being an illusion, the frost plays a powerful transformative role in nourishing new life below the surface of the ground.
QUESTION 3: POETRY – CONTEXTUAL QUESTION
Read the poem below and then answer the questions that follow.
A HARD FROST – Cecil Day Lewis
3.1 Refer to line 1: 'A frost came in the night and stole my world'. What impression of the frost is created in this line? (2)
3.2 Refer to line 3: 'Image of spring, too brilliant to be true'. How do these words contribute to your understanding of the speaker's feelings? (2)
3.3 Refer to lines 11–14: 'Mockery spring …'/'aconite and snowdrop!' Discuss how the imagery in these lines conveys the speaker's tone. (3)
3.4 Refer to lines 17–19: 'But deep below …'/'our future breathe.' Comment on how these lines capture the central idea of the poem. (3) [10]
QUESTION 3: POETRY – CONTEXTUAL QUESTION
'A HARD FROST'– Cecil Day Lewis
3.1 The personification/comparison of the frost to a thief is disturbing: it suggests that the frost works silently and stealthily, taking that which does not belong to it.
[Award 2 marks for one idea well discussed.] (2)
3.2 While the speaker is delighted at the transformation of his world from the bleak harsh landscape of winter, he is equally pensive in that he knows that this transformation is temporary/effectively illusory.
[Award 2 marks for two relevant and distinct points.] (2)
3.3 The winter landscape is metaphorically compared to a plain/an unattractive country maid who is transformed on her wedding day by her bright and beautiful bridal outfit. Her beauty is short-lived since after her wedding she will return to her old self, as will the landscape after the frost has melted. The speaker's tone is of disappointment that this beauty is short-lived, and perhaps, he is disparaging of the frost's trickery.
[Award 3 marks only if tone is discussed.] (3)
3.4 The speaker looks forward to the new cycle of life as the frost nudges the earth to release the seeds that will sprout in Spring, which will signify an end to the hardships of winter. The transformation in nature might possibly be equated to transformation in the life of people who experience hardship but can still look forward to a future that has the potential for a better life.
[Award 3 marks for two ideas/interpretations well discussed.] (3) [10]
QUESTION 4: POETRY – CONTEXTUAL QUESTION
Read the poem below and then answer the questions that follow.
AN AFRICAN THUNDERSTORM – David Rubadiri
4.1 Refer to line 9: 'Like a madman chasing nothing.' What impression of the wind is conveyed by this description? (2)
4.2 Suggest how the word, 'sinister' (line 13) contributes to the mood of the poem. (2)
4.3 Refer to lines 20–24: 'Women – /Babies clinging … In and out/Madly'. Discuss how these lines convey the attitude of the women towards the storm. (3)
4.4 Refer to lines 30–33: 'As jaggered blinding …'/'of the storm.' Comment on whether these lines are an appropriate conclusion to the poem. (3) [10]
AND
QUESTION 4: POETRY – CONTEXTUAL QUESTION
'AN AFRICAN THUNDERSTORM' – David Rubadiri
4.1 The impression is that the wind is unpredictable/out of control and dangerous, bringing with it chaos and disruption.
[Award 2 marks for one idea well discussed.] (2)
4.2 'Sinister' has connotations of something that is evil, frightening and destructive. The mood is oppressive, ominous and foreboding.
[Award 2 marks only if mood is discussed.] (2)
4.3 The women's panicked state and anxiety reflect their fearful attitude toward the storm. Their rushing about gathering their possessions and their children creates a sense of urgency. The children's having to cling to their mothers' backs intensifies the agitation of the mothers and their determination to protect their children. They dread the havoc that the storm might cause.
[Award 3 marks for two ideas well discussed OR three ideas.] (3)
4.4 The conclusion is appropriate because the title creates the expectation that the poem is about a thunderstorm. The poem's focus is on the build-up to the storm. By focusing on the elements of the wind and the clouds, the speaker gives them a significance and power of their own. They are the harbingers alerting people to the approach of the storm. The lightning flash and the rumbling thunder create tension as the reader anticipates the final eruption of the storm.
Candidates might see the thunderstorm as an extended metaphor for the destructive effects of colonialism. Credit such responses on their merits.
Candidates might suggest that the conclusion is not appropriate since the storm does not actually break, despite its build-up having been described throughout the poem. It ends anti-climactically.
[Award 3 marks for two ideas well discussed OR three ideas.] (3) [10]
QUESTION 4: POETRY – CONTEXTUAL QUESTION
Read the poem below and then answer the questions that follow.
AN AFRICAN ELEGY – Ben Okri
4.1 Refer to line 8: 'Do you see the mystery of our pain?' Suggest a reason for the inclusion of the rhetorical question. (2)
4.2 Refer to line 9: 'That we bear poverty'.
Explain what the word, 'bear' implies about the local people. (2)
4.3 Refer to lines 16–17: 'That is why … the air remember.' Comment on the significance of the music's being 'so sweet' that it 'makes the air remember'. (3)
4.4 Refer to the final stanza. Critically comment on how the speaker's tone conveys the central idea of the poem. (3) [10]
AND
QUESTION 4: POETRY – CONTEXTUAL QUESTION
'AN AFRICAN ELEGY' – Ben Okri
4.1 The rhetorical question emphasises the inexplicable nature of the people's reaction to their suffering. The mystery lies in their ability to 'sing and dream sweet things' despite their hardship. The speaker is puzzled by their magnanimous reaction.
Candidates might refer to the reaction of the people's being paradoxical as they are able to express joy despite their pain.
[Award 2 marks for any one point well discussed.] (2)
4.2 The local people's problems are a burden which they put up with without anger. They endure and tolerate their hardship without distress or annoyance. They are accepting of their suffering and are prepared to live with it. The word conveys the extent and relentlessness of their suffering.
[Award 2 marks for any two relevant and distinct points.] (2)
4.3 The music is gratifying/rewarding/pleasurable/harmonious. It is significant because it is an expression of the people's optimistic attitude to life. The air 'remembers' because people are aware of the music even after it has ended. Its impact on the surroundings resonates and the feeling of upliftment endures.
Candidates might refer to the sounds carried by the air as being a reminder of the close spiritual connection between nature and the ancestors.
[Award 3 marks for any two ideas well discussed OR three ideas.] (3)
4.4 The tone is optimistic/contemplative/meditative/thoughtful. The speaker is in awe of the magical quality of nature and life. He focuses on the promise of a better life and the need to be in harmony with our world. The speaker's tone reflects his amazement at the people's faith and endurance. The message of the poem is that Africans are eternally hopeful in spite of hardship. They are able to find positives even in difficult situations.
[Award 3 marks only if the tone and central idea are fully discussed.] (3) [10]
QUESTION 6: POETRY – CONTEXTUAL QUESTION
Read the poem below and then answer the questions that follow.
AN AFRICAN ELEGY – Ben Okri
6.1 Refer to line 3: 'We are precious.' Account for the use of the word, 'precious' in the context of the first stanza. (2)
6.2 Suggest a reason for the repetition of the word, 'And' throughout the poem. (2)
6.3 Refer to line 13: 'Or the lights that bounce gently on the waters?' Discuss the effectiveness of this image in the context of the poem. (3)
6.4 Refer to lines 22–24: 'This life is good …gently/With fire'. Critically comment on the contradictory advice given to the speaker by the ancestors. (3) [10]
QUESTION 6: POETRY – CONTEXTUAL QUESTION
'AN AFRICAN ELEGY' – Ben Okri
6.1 The word conveys how valuable, special and unique the African people are./ They endure hardship without complaint and remain hopeful. The speaker praises and motivates the people to remain optimistic.
[Award 2 marks for one idea well discussed OR any two relevant and distinct points.] (2)
6.2 The word, 'and' conveys the never-ending suffering. One problem is compounded and followed by another. There is no respite for the people. The repetition also conveys the people's resilience. They remain optimistic and never become despondent. The word also suggests that when the people are released from their suffering, there will be multiple rewards.
[Award 2 marks for any two relevant and distinct points.] (2)
6.3 The lights and gentleness of the image convey the people's sense of hope, optimism and forgiveness. In spite of their hardships, the people see and appreciate the beauty around them. They remain tolerant and are not bitter. The word, 'bounce' conveys lightness. The people are able to set their burdens and suffering aside and appreciate nature and the goodness in their lives.
[Award 3 marks for any two ideas well discussed OR three ideas.] (3)
6.4 The speaker is advised to live life 'gently'. He should be kind, have compassion and show sensitivity and understanding. However, he is also urged to live life with 'fire'. He should be spirited/passionate, never surrender and stand up to oppression. This advice is uplifting and inspiring because it encourages people to live life to the full while not allowing their animosities to overpower their humanity.
[Award 3 marks for any two ideas well discussed OR three ideas.] (3) [10]
QUESTION 3: POETRY – CONTEXTUAL QUESTION
Read the poem below and then answer the questions that follow.
somewhere i have never travelled,gladly beyond – ee cummings
3.1 Refer to lines 1–2: 'somewhere i have never travelled,gladly beyond/any experience'. What impression of the speaker is created by the use of 'gladly' (line 1)? (2)
3.2 'Spring' (line 7) is the only word that is capitalised in the poem. Explain the effect of this capitalisation in context. (2)
3.3 Refer to line 4: 'or which i cannot touch because they are too near'. Discuss the significance of the paradox in this line. (3)
3.4 Refer to lines 17–19: '(i do not … than all roses)'. Critically comment on how the speaker's tone in these lines reinforces the central idea of the poem. (3) [10]
QUESTION 3: POETRY – CONTEXTUAL QUESTION
'somewhere i have never travelled, gladly beyond' – ee cummings
3.1 The speaker is enthusiastic about, and open to, the new possibilities in his life. Although it is the unknown, the anticipation fills him with excitement. He welcomes the thought of the adventure and looks forward to the experience.
[Award 2 marks for any two relevant and distinct points.] (2)
3.2 By capitalising the word, the importance and power of Spring is recognised. Spring is the giver of life and transforms the winter landscape into something of beauty. Like Spring, his beloved has transformed him by bringing love into his life.
[Award 2 marks for any two relevant and distinct points.] (2)
3.3 The speaker's inability to touch something despite its nearness is contradictory. His feelings for his beloved are 'too near' to his heart/an intimate part of him and he is reluctant to expose himself as he is afraid that his love makes him vulnerable/defenceless to potential heartbreak and pain.
[Award 3 marks for any two ideas well discussed OR three ideas.] (3)
3.4 The speaker's tone is of admiration/awe/wonder/reverence. He finds it amazing that her mere presence can overwhelm his senses, thoughts and emotions. The expression in her eyes conveys the intensity of her love for him. The unusual connection the speaker makes between the senses suggests that even without words, there is communication and understanding between the lovers. The description conveys the idea of love's being inexplicable, mysterious and spiritual. There is no logic to explain why his beloved is able to exert absolute power over him yet instinctively he is willing to accede to her.
[Award 3 marks only if the tone and central idea are discussed.] (3) [10]
QUESTION 2: POETRY – CONTEXTUAL QUESTION
Read the poem below and then answer the questions that follow.
THE GARDEN OF LOVE – William Blake
2.1 Refer to line 1: 'I went to the Garden of Love'. How does the word, 'Garden' create an expectation in the mind of the reader? (2)
2.2 Refer to lines 3–4: 'A Chapel was …'/'on the green.' Explain the significance of these lines in the context of the poem. (2)
2.3 Refer to lines 5–6: 'And the gates …'/'over the door'. Discuss how the diction in these lines contributes to the speaker's tone. (3)
2.4 Refer to the final stanza: 'And I saw ...'/'joys and desires.' Comment on how these lines convey the central idea of the poem. (3) [10]
QUESTION 2: POETRY – CONTEXTUAL QUESTION
'THE GARDEN OF LOVE' – William Blake
2.1 The reader will expect the speaker to enter an area/state of being that is open, free and beautiful. It is a place of peace and tranquillity./The allusion to the Biblical Garden of Eden creates the expectation of spiritual perfection and natural beauty.
[Award 2 marks for one idea well discussed.] (2)
2.2 The Chapel should have offered a joyful experience. However, the speaker is indicating how the Chapel and, by implication, organised religion has intruded on his pleasant, carefree childhood memories. The line indicates Blake's disapproval of the invasive and destructive nature of authoritarian religion.
[Award 2 marks for two relevant and distinct points.] (2)
2.3 The words, 'gates' and 'shut' have connotations of restriction and loss of free will. In addition, they suggest a lack of welcome. The admonition, 'Thou shalt not' alludes to the Old Testament/Ten Commandments which forbade certain behaviours and reinforces the sense of restriction. This accounts for the speaker's indignant/angry/disappointed/dismayed tone.
[Award 3 marks only if tone is discussed.] (3)
2.4 Instead of life flourishing ('flowers'), the garden is now associated with death as it is filled with 'graves' and 'tomb-stones'. The priests in black gowns are like sinister figures on patrol. These lines reflect the speaker's criticism of authoritarian religion's depriving one of joy. He sees such religion as cruelly restrictive ('binding with briars my joys and desires') of individual freedom and fulfilment.
[Award 3 marks for two ideas/interpretations well discussed.] (3) [10]
SECTION A: POETRY
PRESCRIBED POETRY
Answer any TWO of the following questions.
QUESTION 1: POETRY – ESSAY QUESTION
Read the poem below and then answer the question that follows.
FELIX RANDAL – Gerard Manley Hopkins
In 'Felix Randal', the speaker contemplates what he sees as significant aspects of the life and death of the farrier.
With close reference to diction, imagery and tone, discuss how the above statement is reflected in the poem.
Your response should take the form of a well-constructed essay of 250–300 words (about ONE page). [10]
SECTION A: POETRY
PRESCRIBED POETRY
QUESTION 1: POETRY – ESSAY QUESTION
'FELIX RANDAL' – Gerard Manley Hopkins
QUESTION 4: POETRY – CONTEXTUAL QUESTION
Read the poem below and then answer the questions that follow.
VULTURES – Chinua Achebe
4.1 Refer to lines 1–3: 'In the greyness/and drizzle of one despondent/dawn'. How do these lines contribute to the mood of the first section? (2)
4.2 What do the words, 'cold/telescopic eyes' (lines 20–21) suggest about the nature of the vultures? (2)
4.3 Refer to lines 30–35: 'Thus the Commandant … his hairy/nostrils'. Discuss the significance of this description in the context of the poem. (3)
4.4 The concluding lines, 'Praise bounteous/providence … perpetuity/of evil' (lines 41–51) offers options for human behaviour.
Do you agree with this statement? Justify your response by referring to imagery and/or diction. (3) [10]
AND
QUESTION 4: POETRY – CONTEXTUAL QUESTION
'VULTURES' – Chinua Achebe
4.1 The dark side of the vultures as described in Section One contributes to the down-hearted/dull/gloomy/hopeless mood.
[Award 2 marks only if mood is discussed.] (2)
4.2 As scavengers, the vultures keep their kill within their sights. 'Cold' might suggest that the vultures are ruthless/calculating/emotionless. ‘Telescopic’ suggests the mechanical/robotic nature of the vultures, giving them the advantage of long-distance vision that ensures the protection of their spoils.
[Award 2 marks only if a discussion of both 'cold' and 'telescopic' is offered.] (2)
4.3 The Commandant ends his day like any ordinary worker returning to his family after work. However, this Commandant has not had an ordinary day at work in that he has been directly involved in the atrocious sins committed against a huge number of people as indicated by the ‘fumes of human roast clinging’.
Candidates might suggest that this shocking/horrifying/repulsive description signifies mankind's inhumanity toward their fellow beings; this is similar to the description of the vultures in Section One. The vultures instinctively feed their bodies to survive however, man kills in order to satisfy his selfish desires.
[Award 3 marks for two ideas well discussed OR three distinct ideas.] (3)
4.4 YES.
The Commandant, who is referred to as the 'ogre', has an element of goodness for which one needs to be grateful/hopeful – 'Praise bounteous providence'. His humanity is seen as a 'tiny glow worm' which suggests that he has the potential for love. However, the reference to the 'icy caverns of a cruel/heart' creates a sense of despair/hopelessness as it is too little to transform the evil 'lodged' within him. Thus he will continue to perpetrate/perpetuate evil.
OR
NO.
[A 'No' response is unlikely. However, treat all responses on their merits.] [Award 3 marks only if reference is made to imagery and/or diction.]
[Award 3 marks only if candidates refer to both options.] (3) [10]
FORMS OF PAYMENT WHEN TRAVELLING INTERNATIONALLY
Type of Payment | Examples | ADVANTAGES | DISDVANTAGES |
ELECTRONIC FUND TRANSFER
| Internet / telephone banking |
|
|
Telegraphic transfers
| Cash send (ABSA) |
|
|
Internet Payments
| Pay pal (FNB), ALERT PAY, Liberty reserve and Pay Fast |
|
|
Bank Drafts | Bank guaranteed cheque |
|
|
Foreign Bank Notes
| Cash |
|
|
Credit Card | Visa, MasterCard, American Express, Diners Club |
|
|
Travellers Cheques
| pre-printed cheques |
|
|
Preloaded Debit Cards
|
|
|
|
The information provided below relates to Brakpan Stationers.
REQUIRED:
1.1 Explain the importance of comparing budgeted figures with actual figures achieved for the same period. (2)
1.2 Calculate the missing amounts (indicated by a, b and c) in the Debtors’ Collection Schedule for the budgeted period March to May 2015. (4)
1.3 Calculate the following budgeted figures:
1.3.1 Total sales for March 2015. (2)
1.3.2 Payments to creditors during May 2015. (4)
1.3.3 Salaries of the shop assistants for April 2015. (3)
1.3.4 The % increase in the salary of the manager expected in May 2015. (3)
1.3.5 Amount of the additional loan expected to be acquired on 1 April 2015. (3)
1.4 An official of the local municipality has offered to recommend Brakpan Stationers supply the municipality with stationery to the value of R500 000.
However, he will only do this if he receives a cash payment of R20 000 from the owner.
What advice would you offer? State TWO points. (4)
1.5 The owner’s wife is angry that he has not been adhering to the cash budget. The owner says that he deliberately did not keep to the budget because he wanted to improve the overall results of the business.
INFORMATION
April 2015 | 70 000 |
May 2015 | 78 750 |
CREDIT SALES R | MARCH R | APRIL R | MAY R | |
February | 31 500 | 11 970 | ||
March | 10 500 | a | 3 990 | |
April | 14 000 | 8 064 | b | |
May | c | |||
18 018 | 12 054 |
RECEIPTS | MARCH | APRIL | MAY | |
Budgeted | Budgeted | Actual | Budgeted | |
Cash sale of stock | 42 000 | 56 000 | 59 200 | 63 000 |
Collections from debtors | 18 018 | 12 054 | 12 800 | ? |
Rent income | 5 600 | 6 160 | 6 160 | 6 160 |
Additional loan acquired | 0 | ? | ? | 0 |
PAYMENTS | ||||
Cash purchase of stock | 9 000 | 12 000 | 28 000 | 13 500 |
Payment to creditors | 58 500 | 21 000 | 21 000 | ? |
Salaries of shop assistants | 102 000 | ? | ? | 110 160 |
Salary of manager | 16 000 | 16 000 | 40 000 | 19 200 |
Interest on loan (14% p.a.) | 6 300 | 7 175 | 7 175 | 7 175 |
Delivery expenses to customers | 9 200 | 9 200 | 0 | 9 200 |
Insurance (paid annually) | 0 | 27 000 | 27 000 | - |
Advertising | 0 | 0 | 0 | 20 000 |
Purchase of vehicle | 0 | 0 | 180 000 | 0 |
Vehicle expenses | 0 | 0 | 4 000 | 4 000 |
Sundry expenses | 5 300 | 5 300 | 5 300 | 5 800 |
You are provided with a partially completed Projected Income Statement for Dawn Distributors for the period 1 October 2015 to 31 December 2015. It was prepared by the bookkeeper.
REQUIRED:
2.1 List TWO items on the Projected Income Statement,that would not appear on a Cash Budget. (2)
2.2 Fill in the missing amounts denoted by A to E on the Projected Income Statement. (16)
2.3 Take the following additional information into account and calculate the following:
2.3.1 The percentage increase in the wages of cleaners in December 2015. (4)
2.3.2 The monthly salary due to the sales manager in December 2015. (4)
2.3.3 Total credit sales expected in December 2015. (3)
2.3.4 The balance of the loan on 1 November 2015. (3)
INFORMATION:
G. INFORMATION FROM THE PROJECTED INCOME STATEMENT FOR OCTOBER TO DECEMBER 2015.
OCTOBER | NOVEMBER | DECEMBER | ||
BUDGETED | ACTUAL | BUDGETED | BUDGETED | |
Sales | 120 000 | 98 400 | 132 000 | ? |
Cost of sales | 75 000 | 58 800 | B | 99 000 |
Gross profit | A | ? | ? | |
Other income | 20 700 | 18 200 | 20 700 | 21 200 |
Rent income | 10 000 | 10 000 | 10 000 | 10 000 |
Discount received | 1 200 | 1 000 | 1 200 | 1 200 |
Commission income | 9 500 | 7 200 | 9 500 | 10 000 |
Gross operating income | ||||
Operating expenses | 48 300 | ? | ? | |
Salaries (managers) | 17 100 | 17 100 | 17 100 | D |
Wages (cleaners) | 3 200 | 3 200 | 3 200 | 3 376 |
Maintenance | 4 000 | 1 650 | 4 000 | 4 000 |
Telephone | 2 000 | 4 280 | 2 000 | 2 500 |
Insurance | 1 800 | 1 800 | 1 800 | 1 800 |
Advertising | 2 400 | 1 900 | C | 3 168 |
Depreciation | 6 200 | 8 000 | 6 200 | 8 000 |
Trading stock deficit | 0 | 680 | 0 | 500 |
Stationery | 3 150 | 3 100 | 3 200 | 3 250 |
Sundry operating expenses | 8 450 | 8 420 | 8 500 | 8 550 |
Operating profit | 17 400 | ? | ? | |
Interest income | 225 | 200 | 200 | 200 |
Profit before interest expense | 17 625 | |||
Interest expense | 585 | 585 | 585 | 435 |
Net profit before income tax | ? | ? | ? | |
Income tax | ? | ? | ? | |
Net profit after tax | E | ? | ? |
Below is information relating to DIY Hardware. The business is owned by John Temba. His inexperienced bookkeeper, Mabel, has prepared a Cash Budget.
REQUIRED:
3.1 Identify TWO items that Mabel has incorrectly entered in the Cash Budget. (4)
3.2 Apart from the items mentioned above, name TWO other items in the Payments Section of the Cash Budget that would NOT appear in a Projected Income Statement. (4)
3.3 After correcting all the errors John has identified the following:
JAN 2013 | FEB 2013 | |
Cash deficit for the month | (14 950) | (52 400) |
Cash at the beginning of the month | 35 350 | |
Cash at the end of the month | A | B |
Identify or calculate A and B. Indicate negative figures in brackets. (3)
3.4 Identify or calculate the missing figures C and D in the extract from the Cash Budget. (7)
3.5 Complete the Debtors’ Collection Schedule for February 2013. (10)
3.6 Calculate the percentage increase in salary and wages from 1 February 2013. (2)
3.7 Calculate the interest on the fixed deposit for January 2013. (2)
3.8 John pays Speedy Deliveries to deliver hardware to his customers free of charge. He budgets for this at a rate of 8% of total monthly sales.
3.8.1 Calculate the delivery expense figure budgeted for January 2013. (2)
3.8.2 John is of the opinion that the delivery service is costing him too much.
Which TWO points should John consider before deciding on whether or not to discontinue this service? (4)
3.9 On 31 January 2013 you identified the figures below. Explain what you would say to John about each of the following items at the end of January 2013. Give ONE point of advice in each case. (9)
JANUARY 2013 | ||||
BUDGETED | ACTUAL | |||
Advertising | 1 600 | 0 | ||
Stationery | 1 000 | 4 400 | ||
Staff training | 2 000 | 700 | ||
3.10 John will have a problem with replacing his old computers and cash registers in March 2013. The cost of these items amounts to R150 000 and he expects them to last 5 years. However, he does not have cash available to pay for this. His options are:
Consider each of these options and explain ONE other advantage and ONE disadvantage of each option. Provide figures to support your answer. (6)
INFORMATION:
JAN 2013 | FEB 2013 | |
RECEIPTS | ||
Cash sales | 96 000 | 84 000 |
Collection from debtors | 70 000 | ? |
Interest on fixed deposit (7% p.a.) | ? | 0 |
Fixed deposit: Magic Bank maturing on 1 Feb. 2013 | 0 | 42 000 |
Commission income | ? | ? |
Rent income | 8 500 | 8 800 |
PAYMENTS | ||
Salary and wages | 15 000 | 16 800 |
Stationery | 1 000 | 1 000 |
Telephone | ? | ? |
Payment to creditors | 71 250 | D |
Cash purchase of stock | C | 52 500 |
Repayment of existing loan | 100 000 | |
Furniture bought on credit | 30 000 | |
Delivery expense for delivery of hardware to customers | ? | 11 200 |
Training of staff | 2 000 | 2 000 |
Advertising | 1 600 | 1 400 |
Depreciation | 12 500 | 12 500 |
Sundry expenses | 3 500 | 3 600 |
Drawings by owner | ? | ? |
Vehicle expenses | 0 | 500 |
4.1 Explain why:
4.1.1 Depreciation and bad debts will not appear in a Cash Budget. (2)
4.1.2 A cash budget is different from a Projected Income Statement. (2)
4.2 KIT KAT DISTRIBUTORS LTD
You are provided with information for the budget period November and December 2018.
REQUIRED:
4.2.1 Complete the Debtors’ Collection Schedule. (12)
4.2.2 Calculate the missing amounts in the Cash Budget denoted by (i) to (iv). (20)
4.2.3 Comment on the internal controls on collection from debtors and payment to creditors. Provide TWO points. (4)
INFORMATION:
A. Cash sales amount to 40% of total sales.
Goods are marked-up by 25% on cost.
B. Debtors are granted credit terms of 30 days. The actual collection trend revealed that:
C. Stock is replaced in the month it was sold, i.e. a base stock is maintained.
D. 80% of stock is bought on credit. Creditors are paid in full in the month following the month the purchase was made.
E. Salaries and wages are expected to remain the same for the budget period. Staff members on leave in December will receive their pay in November - the total amount is R35 600.
F. A loan will be received from a director, Thabo, on 1 November 2018, at 13% interest p.a. Interest is not capitalised. A fixed monthly instalment and interest will be paid at the end of each month.
G. The company will pay an interim dividend in December. H Rent increased by 8% on 1 November 2018.
I. Incomplete Debtors’ Collection Schedule:
MONTH | CREDIT SALES | NOVEMBER | DECEMBER |
September | 180 000 | 32 400* | |
October | 186 000 | 55 800 | * |
November | * | 92 625 | * |
December | 210 000 | * | |
TOTAL | * | * |
J. Information from the Projected Income Statement:
NOVEMBER 2018 | |
Sales | 325 000 |
Cost of sales | 260 000 |
Commission income | 24 800 |
Depreciation | 12 600 |
Interest expense | 1 625 |
K Incomplete Cash Budget for 2018:
RECEIPTS | NOVEMBER | DECEMBER |
Cash sales | 130 000 | (i) |
Cash from debtors | ||
Commission income | 24 800 | 26 000 |
Rent income | (ii) | 19 710 |
Loan from director Thabo | 150 000 | 0 |
TOTAL RECEIPTS | ||
PAYMENTS | ||
Cash purchases of stock | 52 000 | 56 000 |
Payments to creditors | (iii) | 208 000 |
Directors fees | 20 000 | 20 000 |
Salaries and wages | 180 600 | (iv) |
Loan instalment (including interest) | 13 625 | (v) |
Interim dividends | 0 | 86 500 |
Sundry expenses | 15 875 | 16 510 |
TOTAL PAYMENTS |
1.1 Explain the importance of comparing budgeted figures with actual figures achieved for the same period.
One valid explanation
1.2 Calculate the missing amounts (indicated by a, b and c) in the Debtors’ Collection Schedule for the budgeted period March to May 2015 (4)
a | 6 048 |
b | 5 320 |
c | 15 750 |
1.3.1 Calculate budgeted total sales for March 2015. (2)
1.3.2 Calculate the amount budgeted for payments to creditors during May 2015. (4)
1.3.3 Calculate the budgeted salaries of the shop assistants for April 2015. (3)
1.3.4 Calculate the % increase in the salary of the manager expected in May 2015. (3)
1.3.5 Calculate the amount of the additional loan expected to be acquired on 1 April 2015. (3)
1.4 An official of the local municipality has offered to recommend that Brakpan Stationers supply the municipality with stationery to the value of R500 000. However, he will only do this if he is paid R20 000 in cash.
Give advice in this regard. State TWO points.
Any two suggestions (4)
1.5 Identify THREE over-payments made in April. Provide figures to support your answer. Provide a valid reason for each over-payment to support the decision taken. (6)
Over-payment with figures Item and figure | Valid reason | |
1 | The bonus paid to the manager in February 2015 (R24 000) was not taken into account. | He has retained the services of a valuable employee. |
2 | Purchase of vehicle (R180 000). | The difference between motor vehicle expenses and delivery expenses is R5 200 per month. |
3 | Cash purchase of merchandise (R28 000) was significantly higher than the budgeted figure (R12 000). | Possibly to take advantage of discounts on bulk purchases. |
1.6 Explain how this difference of opinion with his wife can be avoided in future.
State TWO other strategies that the owner and his wife could consider in future to improve the results of the business.
Any two valid points:
2.1 Identify TWO items that Mabel has incorrectly entered in the Cash Budget.
Any TWO
2.2
A | Gross profit | 120 000 - 75 000 = 45 000 |
B | Cost of sales | 132 000 x 100/160 = 82 500 Or 132 000 x 62,5% or 132 000 - (132 000 x 37,5%) |
C | Advertising | 2 400/120 000 = 2% 132 000 x 2% = 2 640 |
D | Salaries | 17 100 x 108% = 18 468 Or 17 100 + 1 368 = 18 468 |
E | Net Profit after tax | 17 040 (17 625 - 585) x 30% = 5 112 17 040 - 5 112 = 11 928 |
2.3.1 The percentage increase in wages that the cleaners will receive in December 2015.
2.3.2 The monthly salary due to the Sales Manager in December 2015.
2.3.3 Total credit sales expected in December 2015.
2.3.4 The balance of the loan on 1 November 2015.
3.1 Identify TWO items that Mabel has incorrectly entered in the Cash Budget.
Two items
3.2 Apart from the items above, name TWO other items in the Payments Section of the Cash Budget that would NOT appear in a Projected Income Statement.
Any two items
Expected responses:
3.3 Identify or calculate A and B. Indicate negative figures in brackets.
A | R35 350 |
B | (R17 050) |
3.4 Identify or calculate the missing figures C and D in the extract from the Cash Budget
C | 160 000 x 100/133⅓ = 120 000; 120 000 x 50% = R60 000 | ||
D | 60 000 x 95% = 57 000 any one part correct |
3.5 Complete the Debtors’ Collection Schedule for February 2013.
Credit sales | February collections | |
December | R80 000 | 14 400 |
January | R64 000 | 32 000 |
February | R56 000 | 16 800 |
TOTAL operation | 63 200 |
3.6 Calculate the % increase in salary and wages with effect from 1 February 2013.
3.7 Calculate interest on the fixed deposit for January 2013.
3.8.1 Calculate delivery expenses for January 2013.
3.8.2 John is of the opinion that the delivery service is costing him too much. Which TWO points should John consider before deciding whether or not to discontinue this service?
Two factors
3.9 Explain what you would say to John about each item at the end of January 2013. Give ONE point of advice in each case.
Comment | Advice | |
Advertising | As he did not spend any money on Advertising, this will probably mean that he will not achieve budgeted sales. | Make sure that he utilises the advertising budget fully each month. (It is there for a purpose.) |
Stationery | He spent significantly more than the budgeted figure. | Ensure that there is no wastage of stationery. / Keep unused stationery secured. / Find a cheaper supplier. |
Staff training | He under-spent on the budget, which means that staff might not be interacting well with customers. | He must consider that staff training affects the manner in which staff interact with customers. This leads to efficiency and goodwill. |
3.10 Consider each of the options below and explain ONE other advantage and ONE disadvantage related to each option.
Other Advantage | Diadvantage | |
Option 1: Raise a new loan to be repaid over 36 months. The interest rate is 14% p.a.. | He will own the assets and they could last longer than five years if he takes good care of them. | He has to pay interest of R1 750 per month + R4 167 per month to repay the loan. |
Option 2: Hire (lease) the assets from IT Connect Ltd at R5 100 per month. | He does not have to raise a loan. / He does not have to pay interest on the loan./ He will not have to pay repair costs. | The lease charges are expensive, at R5 100 per month (R306 000 over the expected life span of five years.) / He never owns the assets and so continues to pay. |
Option 3: Invite his friend James to become an equal partner in the business and to provide capital of R150 000. | He will have the necessary funds to purchase the assets which will then belong to, the business / They will share the workload and their skills. | He will have to share half his profits with his new partner. |
4.1 Explain why:
4.1.1 Depreciation and bad debts will not appear in a Cash Budget.
Any valid explanation.
4.1.2 A cash budget is different from a Projected Income Statement.
Any valid explanation.
4.2 KIT KAT DISTRIBUTORS LTD
4.2.1
MONTHS | CREDIT SALES | NOVEMBER | DECEMBER |
September | 180 000 | 32 400 | |
October | 186 000 | 55 800 | 33 480 |
November | 195 000 | 92 625 | 58 500 |
December | 210 000 | 99 750 | |
Total collection from debtors | 180 825 | 191 730 |
4.2.2 Calculate:
4.2.3 Comment on the internal controls for collection from debtors and payments to creditors. Provide TWO points.
Any TWO valid points.
Discuss in detail the markets within the FOUR-SECTOR model (Circular Flow)
INTRODUCTION
The economy of a country is regarded as an open economy because of the presence of households, producers, government, foreign sector and financial
sector as active participants in the economy. Markets link the participants in the economy ?? [Max 2]
BODY: MAIN PART
PRODUCT / GOODS/ OUTPUT MARKET?
FACTOR / RESOURCE/ INPUT MARKETS?
FINANCIAL MARKETS?
MONEY MARKETS?
CAPITAL MARKETS?
FOREIGN EXCHANGE MARKETS?
FLOWS?
BODY: ADDITIONAL PART
CONCLUSION
The circular flow ensures continued interdependence and coordination of the economic activities in the economy / markets are critically important institutions in our economic system, because they regulate the supply and demand and safeguard price stability and general business confidence. ??
[Any other relevant conclusion]
[Max 2]
Discuss in detail 'The new economic paradigm'/Explain the 'smoothing of cycles (Business Cycles)
INTRODUCTION
The new economic paradigm in terms of the smoothing of business cycles discourages monetary policy makers from using monetary and fiscal policies to fine tune the economy but rather encourages achieving stability through sound long term decisions relating to demand and supply in the economy/smoothing out the painful part of economic down-fall that is part of the market economy??
(Accept other relevant definition/description of smoothing/new economic paradigm).
[Max 2]
BODY: MAIN PART
The new economic paradigm is embedded in the demand and supply side policies. ??
Demand-side policies
Inflation:
Unemployment:
Phillips curve (PC)
Heading - 1
Labelling of axes - 1
Drawing of correct 2 curves - 1
Point A - 1
Max 4 marks
Supply-side policies
Reduction of costs ?
Improving the efficiency of inputs ?
Improving the efficiency of markets ?
BODY: ADDITIONAL PART
Explanation:
The above graph shows:
CONCLUSION
It is clear from the discussion above that it is critically important to manage the aggregate supply and demand to ensure stability in the economy. ??
[Accept any relevant higher order conclusion]
[Max 2]
Discuss in detail the features underpinning forecasting (Business Cycles)
INTRODUCTION
Accurate prediction is not possible in Economics. The best the economists can do is to try and forecast what might happen. There are a number of techniques available to help economists to forecast business cycles, e.g. economic indicators ??
OR
Successive periods of contraction and expansion of economic activities ??
[Accept any other relevant introduction]
[Max 2]
BODY: MAIN PART
Business cycle indicators
Leading economic indicators ?
Coincident economic indicators?
Lagging economic indicators?
Composite indicator?
LEADING INDICATORS | CO-INCIDENT INDICATORS | LAGGING INDICATORS |
|
|
|
Length ?
Ways to measure lengths:
Amplitude ?
Trend ?
Extrapolation ?
Moving average ?
BODY: ADDITIONAL PART
CONCLUSION
It remain clear that business cycles must be clearly monitored through the indicators available,
policy makers must act quickly by using monetary and fiscal instruments in order to prevent instability in the economy. ??
[Accept any other relevant conclusion]
[Max 2]
Discuss in detail the main objectives of the public sector in the economy (Public Sector)
INTRODUCTION:
The government provides goods and services that are under supplied by the market and therefore plays a major role in regulating economic activity and guiding and shaping the economy. ??
[Max 2]
BODY: MAIN PART
Objectives:
Economic growth ?
Full employment ?
Exchange rate stability ?
Price stability ?
Economic equity ?
BODY: ADDITIONAL PART
Economic Growth:
Full Employment:
Exchange rate stability:
Price stability:
Economic equity:
CONCLUSION:
While some successes have been achieved by government, the fulfilling of some of the objectives are compromised by factors like lack of accountability, corruption, budgeting, nepotism and incompetence. ??
[Any relevant conclusion]
[Max 2]
INTRODUCTION
The government responds to market failures by establishing and maintaining state owned enterprises to provide public goods and services ??
[Any other relevant introduction]
[Max 2]
BODY: MAIN PART
ADDITIONAL PART
Possible problems in your community or elsewhere
CONCLUSION
If the above problems are not dealt with timeously by government, government will continue to fail its people in terms of service delivery, seeing many protests occurring regularly ??
[Any other relevant higher order conclusion]
[Max 2]
Discuss in detail the reasons for international trade (Foreign Exchange Markets)
INTRODUCTION
International trade can be defined as the exchange of goods and services between countries globally. ?? These trade agreements are negotiated by protocols and agreement due to the uneven distribution of natural resources globally. ??
BODY-MAIN PART
The main reasons for international trade.
Demand reasons
The size of the population impacts demand.
The population’s income levels effect demand.
An increase in the wealth of the population leads to greater demand for goods.
Preferences and tastes can play a part in the determining of prices,
The difference in consumption patterns is determined
Supply reasons
Natural resources are not evenly distributed
Climatic conditions
Labour resources
Technological resources
Specialisation in the production
Capital allows developed countries
ADDITIONAL PART
Absolute Advantage:
Comparative Advantage:
CONCLUSION
International trade is important of countries to survive economically, as barriers to trade would disadvantage all countries, due to their interdependency globally. ??
[Any other relevant higher order conclusion]
[Max 2]
Discuss in detail export promotion (Protectionism and Free Trade)
INTRODUCTION
Export promotion refers to measures taken by governments increase production of goods and services that can be exported. The government provides incentives to encourage production ??
[Max 2]
BODY: MAIN PART REASONS:
METHODS:
Exports are promoted through:
Incentives?
Direct Subsidies?
Indirect subsidies
Trade neutrality ?
Export processing zones (EPZs) ?
ADVANTAGES
DISADVANTAGES
BODY: ADDITIONAL PART
How successful is South Africa in protecting the local textile industry against foreign competition?
CONCLUSION
South Africa's international trade policy facilitates globalisation thereby impacting positively on the balance of payment. ??
[Accept any other relevant conclusion]
[Max 2]
Discuss in detail the arguments in favour of protectionism (Protectionism and Free Trade)
INTRODUCTION
Protectionism refers to a deliberate policy on the part of the government to erect trade barriers, such as tariffs and quotas, in order to protect domestic industries against international competition. ??
[Accept any other relevant definition]
[Max 2]
BODY-MAIN PART
Raising revenue for the government
Protecting the whole industrial base
Protecting workers
Diversifying the industrial base
Develop strategic industries
Protecting specific industries
Dumping
Infant industries
Declining industries/sunset industries
ADDITIONAL PART
South Africa promotes exports through subsidies
Direct Subsidies
Indirect subsidies
CONCLUSION
Most countries agree that protectionism is harmful to the economy if not well managed. Protectionism is needed especially where industries are young and need expansion or development. ??
[Any other relevant higher order conclusion]
[Max 2]
INTRODUCTION
Economic growth is responsible for the overall growth of the economy, in order to enhance the well being of the economy as a whole. Whereas economic development would focus on the individual well being of the citizens of a country.
[Any other relevant higher order conclusion]
[Max 2]
BODY-MAIN PART
Growth and Development
A demand-side approach includes discretionary changes in monetary and fiscal policies with the aim of changing the level of aggregate demand. ??
Monetary policy
Fiscal policy
South African approach
Monetary policy
Interest rate changes
Open market transactions
Moral suasion
Cash Reserve Requirements
Fiscal policy
Progressive personal income tax
Wealth taxes
Cash benefits
Other redistribution
Land restitution and land redistribution
Subsidies on properties
CONCLUSION
The demand-side approach focuses on the expansion of the demand for goods and services produced in the economy. ??
OR
To ensure economic growth, there should be an adequate and growing demand for goods and services produced in the economy. ??
[Any other relevant higher order conclusion]
[Max 2]
INTRODUCTION
Different growth and development strategies have been implemented in South Africa since 1994, each aimed at addressing particular needs at the time of introduction. ??
[Any other relevant introduction]
[Max 2]
BODY-MAIN PART
The Reconstruction and Development Programme (RDP)
The RDP was based on six principles.
The five key programmes were:
The Growth, Employment and Redistribution Programme (GEAR)
The Accelerated and Shared Growth Initiative for South Africa Programme (AsgiSA).
AsgiSA identified six important factors that prevented growth:
Joint Initiative on Priority Skills Acquisitions (JIPSA)
Expanded Public Works Programme (EPWP)
The New Growth Path (NGP)
The New Growth Path therefore proposes certain strategies to ensure adequate demand:
The microeconomic measures to control inflationary pressures include the following:
CONCLUSION
INTRODUCTION
South Africa’s overall objective of Industrial Development Policy is to ensure international competitiveness in its nine provinces.
OR
Regional development is aimed at increasing the economic livelihood of specific areas or regions.
OR
Regional development attempts to limit the negative effects of economic activities in only a few areas.
OR
It attempts to promote the advantages of a more even regional development by using labour and other natural resources and infrastructure in neglected areas.
[Accept any relevant introduction]
[Max 2]
BODY-MAIN PART
SPATIAL DEVELOPMENT INITIATIVES
Key Objectives:
In areas with high poverty and unemployment, SDI focuses on:
Some of the main focus points of the SDI Programme are:
There are TWO types of PPP’s which are compensated differently:
Unitary payments:
User-fees:
Corridors
Two Types:
Advantages from Corridor development:
INDUSTRIAL DEVELOPMENT ZONES (IDZ’s)
ADDITIONAL PART FINANCIAL INCENTIVES
Small and Medium Enterprise Development Programme (SMEDP)
• This incentive has provided a tax-free cash grant for investment in industries in
Critical Infrastructure Fund Programme (CIF)
Duty Free Incentives (for businesses operating in the IDZ’s)
Foreign Investment Grant (FIG)
Strategic Investment Projects (SIP)
Skills Support Programme (SIP)
Black Businesses Supplier Development Programme (BBSDP)
Special Economic Zones (SEZ)
CONCLUSION
From the above discussion it is clear that different initiatives form part of South Africa’s Regional Industrial Development Programme.
[Max 2]
Discuss in detail the following economic indicators (Economic and Social Performance Indicators
INTRODUCTION
Economic indicators are used to evaluate the economic performance of an economic unit. This unit can be a company, an industry, a country or a region.
Macro-economic indicators, measures the economic performance of a country as a whole. ??
BODY-MAIN PART
Such indicators can provide an indication of:
Inflation Rate
The Consumer Price Index (CPI)
The Production Price Index (PPI)
The GDP Deflator
Is a ratio that indicates the relationship of the GDP at nominal prices to the GDP at real prices.
GDP deflator = Normal GDP x 100 ??
Real GDP
Nominal GDP
Unemployment rate
Interest rates
Money Supply
Employment
The Economically Active Population (EAP)
Unemployed Persons
The Employment Rate
Employment indicators are used for:
Unemployment Rate
ADDITIONAL PART
CONCLUSION
Countries cannot survive and grow their economies if they do not pay attention to economic indicators for their planning processes.
[Accept any relevant consideration]
[Max 2]
Discuss in detail the following social indicators (Economic and Social Performance Indicators)
INTRODUCTION
Social indicators also called human development indicators as they promote improvement in the standard of living. ??
[Any other relevant definition]
[Max 2]
BODY-MAIN PART
Demographics
Human development Index (HDI)
Human poverty index (HPI)
Health and nutrition
Nutrition indicators
Education
Two important measures are:
Services
Housing and urbanisation
International comparisons
Other measures used:
CONCLUSION
From the above discussion it is clear that social indicators play a significant role in South Africa. It is, therefore, of the utmost importance that we should study their uses in depth.
[Max 2]
INTRODUCTION
A perfect market is a market structure which has a large number of buyers and sellers.
OR
The market price is determined by the industry (demand and supply curves).
OR
This means that individual businesses are price takers, i.e. they are not able to influence prices.
OR
Perfect competition is an imaginary situation, whereas monopolistic competition is a reality. ??
[Accept any other relevant introduction]
[Max 2]
BODY-MAIN PART
ECONOMIC PROFIT
Mark allocation for graph:
Allocate marks on the graph according to the rubric provided and if facts are duplicated again in writing, do not allocate marks. Max of 8 marks.
NORMAL PROFIT
Mark allocation for graph:
Allocate marks on the graph according to the rubric provided and if facts are duplicated again in writing, do not allocate marks. Max of 8 marks.
ECONOMIC LOSS
Mark allocation for graph:
Allocate marks on the graph according to the rubric provided and if facts are duplicated again in writing, do not allocate marks. Max of 8 marks.
ADDITIONAL PART CONDITIONS
For a market to successfully operate under perfect competition, the following conditions should prevail at the same time:
CONCLUSION
Freedom of entry and exit into the perfect market alter the supply of goods on the market. This will result in changes in price which influences the profit or loss of a business. If price falls to a level where it is equal to the AVC then the firm will shut-down. [Max 2]
Discuss the monopoly in detail (with/without the aid of graphs) (Imperfect Market)
INTRODUCTION
A firm is regarded as a monopolist when it owns or controls the total supply of a scarce factor of production. Monopoly is a market structure where only one seller operates. ??
BODY: MAIN PART
The characteristics of a monopoly
Number of firms
Nature of product
Market entry
They decide on their production level
They are exposed to market forces
They face substitutes
They may enjoy favourable circumstances
They may exploit consumers
Market Information
Control over price
Long-run economic profit
Can be positive
Body: Additional part
Long run equilibrium of a monopoly
Heading = 1 mark
AC = 1 mark
DD/AR = 1 mark
MC = 1 mark
Profit maximisation point =1 mark
Labelling of the axis = 1 mark
Labelling on the axis = 1 mark
Long run equilibrium of a perfect competitor
Heading = 1 mark
AC = 1 mark
DD/AR = 1 mark
MC = 1 mark
Profit maximisation point =1 mark
Labelling of the axis = 1 mark
Labelling on the axis = 1 mark
MAX = 5 marks
CONCLUSION
A monopoly does not always make economic profit in the short run; it can also make economic loss in the short run if the total cost exceeds total revenue. ??
Examine the oligopoly in detail (Imperfect Market)
INTRODUCTION
MAIN PART
Nature of product
Market information
Market entry
Control over price
Mutual dependence
Non-price competition
Collusion
Limited competition
Economic profit
Demand curve
ADDITIONAL PART
Oligopolist may increase their market share using non-price competition strategies by:
CONCLUSION
‘’Market structures are classified under Perfect Competition, Monopolistic Competition, Oligopoly and Monopoly’’ Compare all FOUR market structures in a tabular form.
NB: Learners should write in full sentences even if the comparison is done in a tabular format). (Marks depend on the combination of market structures to be examined)
Criteria | Perfect Competition | Monopolistic Competition | Oligopoly | Monopoly |
Number of firms | So many that no firm can influence the market price | So many that each firm thinks others will not detect its actions | So few that each firm must consider the others’ actions and reactions | One seller and there is no competition. The seller is the price maker. |
Nature of product | Homogeneous/i dentical in terms of the physical appearance | Heterogeneous /differentiated | Homogeneous or heterogeneous | Only one product with no close substitutes |
Entry | Completely free/easy to enter. There are no barriers to enter | Free. There are no barriers to enter | Varies from free to restricted | Completely blocked by legal restrictions and cost advantages e.g. natural and artificial monopolies |
Information | Complete | Incomplete | Incomplete | Complete/ Incomplete |
Collusion | Impossible | Impossible | Possible | Unnecessary |
Firm’s control over the price of the product | None. Prices are determined by demand and supply | Some | Considerable, but less that in monopoly | Considerable, but limited by goal of profit maximisation |
Demand curve for the firm’s product | Horizontal (perfectly elastic) | Downward- sloping | Downward- sloping, may be kinked | Equals market demand curve: downward-sloping |
Long run economic profit | Zero/normal profit | Zero/normal profit | Can be positive/econom ic profit | Can be positive/economi c profit |
PLEASE NOTE: THE ABOVE TABLE SHOULD BE VERBALLY WRITTEN AS PER ESSAY INSTRUCTION
INTRODUCTION
Market failure is when the forces of supply and demand fail to allocate resources efficiently / when markets fail to allocate goods and services efficiently. ??
[Accept any other correct introduction]
[Max 2]
BODY: MAIN PART
1. Missing Markets
Public goods have the following features:
Non-rivalry:
Non-excludability:
Merit goods
Demerit goods
2 Lack of information
3. Immobility of factors of production
ADDITIONAL PART
The main objectives were:
CONCLUSION
Governments intervene in the market when market forces cannot achieve the desired output.
[Max 2]
[Accept any other relevant conclusion]
INTRODUCTION
The purpose of government intervention is to ensure that the right quantity of resources is allocated to the production of output so that society as a whole
[Accept any other relevant introduction]
[Max 2] maximizes its benefits. ??
BODY: MAIN PART
ADDITIONAL PART
CONCLUSION
The intervention of government ensures that inefficiencies is eliminated and that the market is operating effectively ?? [Accept any other relevant conclusion]
[Max 2]
Discuss in detail the consequences of inflation (Inflation)
INTRODUCTION
BODY-MAIN PART
Creditors and Debtors
Salary and Wage Earners
Investors and Savers
Assets with Flexible Market Values
Tax Payers
Taxes are levied on nominal income and not on real income.
Industrial Peace
Inflation has a negative effect on economic growth
Inflation affects the real money value and savings
Inflation has an adverse effect on a country’s balance of payments (BOP).
This has a negative effect on the country’s balance of payments (BOP).
The effects of inflation are uneven.
Inflation has social and political costs
Inflation feeds on itself and causes further inflation
ADDITIONAL PART
Debate the merits (benefits) of administered prices by the government
CONCLUSION
Discuss in detail the measures to combat demand-pull and/or cost-push inflation (Inflation)
INTRODUCTION
COST PUSH
Inflation is a sustained and significant increase in general price level over a period of time and a simultaneous decrease in the purchasing power of money.
Accept any other relevant introduction. ??
[Max 2]
BODY: MAIN PART
Causes of cost-push inflation
Increase in Wages:
Key inputs/ increase in prices of imported capital goods
Exchange rate depreciation
Profit margins
Productivity
Natural disasters
Interest rates
Increase in taxation
DEMAND PULL INFLATION
Total spending on domestic goods and services in the economy consists of the spending by households, firms, the government and the foreign sector.
Causes of demand inflation
Increase in consumption [C] – consumers expenditure will increase mainly for three reasons:
Investment [I] –When business invest this increase demand for labour, cement, sand and bricks. ??
Government Spending [G] – Three main reasons.
Export earnings [X]
Access to credit
Consumption spending
Social spending
Commodities demand
BODY: ADDITIONAL PART YES / NO
Positive effects
Negative effects
CONCLUSION
Examine in detail the effects of tourism (Tourism)
INTRODUCTION
BODY - MAIN PART
Gross domestic product (GDP)
Direct contribution on GDP
Indirect contribution on GDP
Employment
Reasons:
Poverty
Externalities
Environment
Tourism activities create environmental stress:
Investment
ADDITIONAL PART
How can Indigenous Knowledge Systems be used to promote tourism in South Africa?
CONCLUSION
Examine in detail the benefits of tourism (Tourism)
INTRODUCTION
MAIN PART
Business sector
Infrastructure development
Households
ADDITIONAL PART
Tourism can be successfully marketed in less popular destinations by:
CONCLUSION
A weaker exchange rate has been a major contributing factor to South Africa's tourism industry growth over many years. ??
[Accept any correct relevant response]
[Max 2]
INTRODUCTION
Environmental sustainability can be defined as development that meets the need of the present without compromising the ability of future generations to meet their own needs. ??
BODY: MAIN PART
Public sector intervention
Because it is difficult to enforce measures to ensure sustainability the government has to intervene. ??
Environmental taxes
Environmental taxes (green taxes) can be added to the cost of goods and services for the negative impact they have on the environment. ??
The government uses the income generated through these taxes to protect the environment. ??
Taxes can be imposed on petrol, paper, emission gases etc. ??
In 2003 the government has legislated the use of biodegradable plastic bags which consumers had to pay for??
The hope is that they will use fewer bags and ensure a litter free environment. ??
Charging for dumping of waste
A monthly fee as part of municipal accounts is charged for collection of waste, sewage and garbage. ??
Households already pay for the collection of rubbish. ??
The factory owner might clean up his waste if it cost him to dump it. ??
Industries might also pay for emitting gases that can be harmful to people and the environment. ??
Subsidies
Subsidies can be awarded to businesses that are willing to reduce pollution and waste. ??
Waste can also be reduced by using new techniques or equipment such as solar energy. ??
Emission gases from factories can be reduced using new technology. ??
Granting property rights
Normally owners of properties tend to be more protective over their resources than users who are only interested in the profits the resources offer. ??
For this reason the government might grant property rights over a specific area. ??
Property rights empowers owners to negotiate contracts with businesses who wish to exploit the area’s resources. ??
Marketable permits
A government can decide on the maximum desired level of pollution in an area. ??
It then distribute pollution rights (marketable permits) to factories within that area. ??
This means that each factory can pollute to a certain limit. ??
It means that marketable permits are licenses that polluters can buy or sell to meet the control levels set by government. ??
Education
Incorporating topics into the curriculum of school fosters awareness. ??
The public is gradually been made aware of this rising problem. ??
Plastic, bottles and cartons can be recycled or made biodegradable. ??
Public sector control
If the government’s intervention does not attain the desired results, then it has to intervene more directly by setting and enforcing limits. ??
Environmental Impact Assessment
In SA every projected construction, mining or similar development has to undergo an assessment by qualified environmental professionals. ??
To prove that it will not cause unwarranted environmental damage and that the damage can be repaired after construction. ??
The cost if built into the project. ??
Command and Control
Regulations that are set and enforce environmental limits or standards. ??
Quantity: e.g. set the limit to the amount of fish to catch, or limit the season catching certain species of fish. ??
Quality: e.g. drinking water quality is carefully monitored and controlled. ??
Air quality in workplace is subject to minimum standards. ??
Social effect: e.g. noxious fumes from factories, dumping of medical waste near settlements, and noise pollution. ??
Voluntary agreements
Agreements between government and businesses voluntarily to address negative environmental impacts of industries. ??
Businesses voluntary agree to decrease the emissions of pollutants. ??
Most prefer negotiations so that they can tailor their specific needs and include it into their planning??
Agreements can be formal, which is legally binding contract or informal. ??
[Max 26]
ADDITIONAL PART
Government does not exercise effective control over the continuous dumping of waste because of a lack of coordination between departments. ??
The fines imposed on industries that dump waste are too lenient and they continue polluting the environment. ??
The minimum standards set for hazardous gas and fuel emissions are not enforced or adjusted. ??
The recycling of waste materials are not widely encouraged and promoted and landfill sites are overflowing. ??
Government has various laws that is not really effectively implemented. ??
Poor service delivery also adds to the problem in certain areas. ??
[Accept any other relevant answer]
[Max 10]
CONCLUSION
Each and every individual, business and government needs to stand together to save our planet.
[Accept any other relevant conclusion]
[Max 2]
Discuss in detail the following problems and the international measures taken to ensure sustainable development (Environmental Sustainability)
INTRODUCTION
Environment refers to the physical surroundings and physical conditions that affect people’s lives. ??
The ever-increasing pressure on our environment originates from increasing population numbers and excessive consumption??
Our air, land, and water are under constant assault from the ever-growing ravages of man-made pollution generated chiefly by industrialized societies. ??
[Accept any appropriate introduction]
[Max 2]
BODY-MAIN PART
Conservation
Preservation
ADDITIONAL PART
Stockholm Conference (1972)
Rio de Janeiro Earth Summit (1992)
Rio + 5 (1997)
Kyoto Protocol for Climate Change (1997)
World Summit on Sustainable Development (2002)
COP 17 (2011)
CONCLUSION
Table of contents
The main intention of this study guide is to address the challenges with specific areas of subject content that was poorly answered in the past nsc papers. This is informed by the detailed question-by-question analysis and findings provided in the diagnostic reports. The material presented in this booklet focuses on the progression across the fet phase and the content overlap, as illustrated in the table below.
GRADE 12 | GRADE 10/11 (overlap) | |
Field 1: Financial Accounting | Companies
Reconciliations analysis | Bookkeeping (sole trader/ partnership)
Reconciliations prepare |
Field 2: Managerial Accounting | Manufacturing concerns
Budgeting (analysis)
| Manufacturing
Budgeting (prepare)
|
Field 3: Managing Resources | Stock valuation
Fixed asset management(analysis) Auditing, internal controlsand ethics | Stock (clubs)
Fixed assets (prepare)
Auditing, internal controls and ethics |
Grade 12 learners (and teachers) must first address prior knowledge (concepts and calculations), before moving to the more challenging aspects of analyzing, interpreting and commenting. The next logical step is to tackle examination-type questions with the understanding that all questions will make provision for the different cognitive levels.
This study guide provides:
Plan of Action:
Know the paper: General structure and layout.
Financial Accounting | 50% - 60% | 150 - 180 marks |
Managerial Accounting | 20% - 25% | 60 - 75 marks |
Managing Resources | 20% - 25% | 60 - 75 marks |
The trend in past papers was as follows:
Strategy:
√ Budgeting forms part of the Managerial Accounting field and, together with Manufacturing, it must constitute 20% - 25% of the paper.
√ Past trends show that the topic is normally assessed in Question 5 or 6 and is 30 - 40 marks; ± 20 marks will require calculations and the balance will be on analysis and interpretation.
√ Examiners will switch between the Cash Budget and the Projected Income Statement. There are subtle differences in interpretation, but the calculations are similar. (Detailed explanations are provided in Section 5 of this document).
√ The calculations require good arithmetical ability, which is developed over a period of time, and starting in Grade 7.
√ These skills must include calculating percentages, increases, decreases or specific amounts using equations.
√ Interpretation requires good comprehension ability. Be mindful of the language of the paper, and practice using many past papers.
What are some of the words that come to mind?
Discuss the words that are confusing Piet.
Make a list of other relevant words/ terms that came up in your discussion/ brainstorming session.
An EXPLANATION that highlights the purpose of budgeting:
Budgeting is an internal control tool that involves projecting business results, using existing
business information as well as other external factors, making adjustments and taking decisions to achieve the objectives of the business.
Start-up Activity: Do I understand the difference between Receipts, Payments, Income and Expenses?
Place the correct amount in the respective column/s. Amounts can apply to more than one column.
NO | INFORMATION | CASH BUDGET | PROJECTED INCOME STATEMENT | ||
RECEIPT | PAYMENT | INCOME | EXPENSE | ||
a | Cash sales are expected to be R7 400 per month at a 25% mark-up on cost. | ||||
b | An old computer with a carrying value of R4 400 will be sold for R2 500 cash in the next month. | ||||
c | Depreciation on equipment is estimated to be R950 per month. | ||||
d | An annual insurance premium of R5 200 is paid by cheque. R1 200 of the payment is for the next financial year. |
What are we expected to cover in Grade 12?
4.1 Sales and collection from debtors
EXAMPLE: Cash sales amounts to 30% of total sales.
Calculate the missing amounts.
TOTAL SALES 100% | CASH SALES 30% | CREDIT SALES 70% | |
March | 320 000 | 96 000 | 224 000 |
April | 350 000 | 245 000 | |
May | 365 000 | 109 500 | |
June | 120 000 |
RECEIPT-TREND FROM DEBTORS: (Must equal 100% of credit sales)
EXAMPLE: The trend in the way debtors settle their accounts is as follows: 20% pay in the month of sale and receive a 5% discount.
35% pay in the month following the month of sale.
40% pay two months after the sales month.
The balance are bad debts.
4.2 Purchases and payments to creditors
At times, payment is made early to take advantage of a discount.
TOTAL PURCHASE AMOUNTS: (two possible options)
1. AMOUNTS ARE GIVEN | |||||||||||||||
Purchase amounts are provided in the question. | |||||||||||||||
Cash purchases are 20% of total purchases. | |||||||||||||||
Information:
| |||||||||||||||
2. COST OF SALES IS THE TOTAL AMOUNT PURCHASED | |||||||||||||||
The business maintains a base stock and stock is replaced monthly. | |||||||||||||||
Cash purchases are 20% of total purchases. The business uses a profit mark-up of 50% on cost. | |||||||||||||||
Information:
|
DO THE CALCULATIONS:
2017
|
TOTAL SALES | COST OF SALES 100% | CASH PURCHASES 20% | CREDIT PURCHASES 80% | |
MARCH | 320 000 | |||
APRIL | 350 000 | |||
MAY | 365 000 | |||
Amount to be paid in May 2017: |
LET’S PRACTICE: (Sales and Purchases)
The following information appeared in the books of Mouse Traders:
REQUIRED:
1.1 Complete the Debtors’ Collection Schedule for June and July 2018.
1.2 Complete the section of the Cash Budget to show cash sales, cash from debtors, cash
purchases and payments to creditors.
INFORMATION:
MARCH | APRIL | MAY | JUNE | JULY |
R61 250 | R73 500 | R64 750 | R78 750 | R70 000 |
4.3 UNPACKING THE BUDGET: Examples of different calculations
ADDITIONAL INFORMATION:
LET’S PRACTICE: (Calculations)
The following information appeared in the records of Abram Traders.
REQUIRED:
2.1 Complete the Debtors Collection Schedule.
2.2 Calculate the missing amounts in the budget for May and June.
2.3 Calculate the amount of the Fixed Deposit invested on 1 June.
INFORMATION:
A. Information for the budget period March - June 2018.
ACTUAL | BUDGETED | |||
MARCH | APRIL | MAY | JUNE | |
Sales (cash and credit) | 148 500 | 168 000 | 142 500 | ? |
Purchase of stock | 99 000 | 112 000 | ? | 103 000 |
Rent Income | 11 200 | 11 200 | ? | ? |
Manager’s Salary | 15 400 | 15 400 | ? | ? |
Wages (Sales Assistants) | 19 500 | 19 500 | ? | ? |
Advertising | ? | ? | ? | 2 438 |
Commission expense | 4 455 | 5 040 | 4 275 | ? |
Drawings | ? | ? | ? | ? |
Interest on loan | 3 600 | 3 600 | ? | ? |
Interest on fixed deposit | 0 | 0 | 0 | 540 |
Sundry expenses | 8 000 | ? | ? | ? |
B. Additional Information:
The information provided below relates to Brakpan Stationers.
REQUIRED:
1.1 Explain the importance of comparing budgeted figures with actual figures achieved for the same period. (2)
1.2 Calculate the missing amounts (indicated by a, b and c) in the Debtors’ Collection Schedule for the budgeted period March to May 2015. (4)
1.3 Calculate the following budgeted figures:
1.3.1 Total sales for March 2015. (2)
1.3.2 Payments to creditors during May 2015. (4)
1.3.3 Salaries of the shop assistants for April 2015. (3)
1.3.4 The % increase in the salary of the manager expected in May 2015. (3)
1.3.5 Amount of the additional loan expected to be acquired on 1 April 2015. (3)
1.4 An official of the local municipality has offered to recommend Brakpan Stationers supply the municipality with stationery to the value of R500 000.
However, he will only do this if he receives a cash payment of R20 000 from the owner.
What advice would you offer? State TWO points. (4)
1.5 The owner’s wife is angry that he has not been adhering to the cash budget. The owner says that he deliberately did not keep to the budget because he wanted to improve the overall results of the business.
INFORMATION
April 2015 | 70 000 |
May 2015 | 78 750 |
CREDIT SALES R | MARCH R | APRIL R | MAY R | |
February | 31 500 | 11 970 | ||
March | 10 500 | a | 3 990 | |
April | 14 000 | 8 064 | b | |
May | c | |||
18 018 | 12 054 |
RECEIPTS | MARCH | APRIL | MAY | |
Budgeted | Budgeted | Actual | Budgeted | |
Cash sale of stock | 42 000 | 56 000 | 59 200 | 63 000 |
Collections from debtors | 18 018 | 12 054 | 12 800 | ? |
Rent income | 5 600 | 6 160 | 6 160 | 6 160 |
Additional loan acquired | 0 | ? | ? | 0 |
PAYMENTS | ||||
Cash purchase of stock | 9 000 | 12 000 | 28 000 | 13 500 |
Payment to creditors | 58 500 | 21 000 | 21 000 | ? |
Salaries of shop assistants | 102 000 | ? | ? | 110 160 |
Salary of manager | 16 000 | 16 000 | 40 000 | 19 200 |
Interest on loan (14% p.a.) | 6 300 | 7 175 | 7 175 | 7 175 |
Delivery expenses to customers | 9 200 | 9 200 | 0 | 9 200 |
Insurance (paid annually) | 0 | 27 000 | 27 000 | - |
Advertising | 0 | 0 | 0 | 20 000 |
Purchase of vehicle | 0 | 0 | 180 000 | 0 |
Vehicle expenses | 0 | 0 | 4 000 | 4 000 |
Sundry expenses | 5 300 | 5 300 | 5 300 | 5 800 |
You are provided with a partially completed Projected Income Statement for Dawn Distributors for the period 1 October 2015 to 31 December 2015. It was prepared by the bookkeeper.
REQUIRED:
2.1 List TWO items on the Projected Income Statement,that would not appear on a Cash Budget. (2)
2.2 Fill in the missing amounts denoted by A to E on the Projected Income Statement. (16)
2.3 Take the following additional information into account and calculate the following:
2.3.1 The percentage increase in the wages of cleaners in December 2015. (4)
2.3.2 The monthly salary due to the sales manager in December 2015. (4)
2.3.3 Total credit sales expected in December 2015. (3)
2.3.4 The balance of the loan on 1 November 2015. (3)
INFORMATION:
G. INFORMATION FROM THE PROJECTED INCOME STATEMENT FOR OCTOBER TO DECEMBER 2015.
OCTOBER | NOVEMBER | DECEMBER | ||
BUDGETED | ACTUAL | BUDGETED | BUDGETED | |
Sales | 120 000 | 98 400 | 132 000 | ? |
Cost of sales | 75 000 | 58 800 | B | 99 000 |
Gross profit | A | ? | ? | |
Other income | 20 700 | 18 200 | 20 700 | 21 200 |
Rent income | 10 000 | 10 000 | 10 000 | 10 000 |
Discount received | 1 200 | 1 000 | 1 200 | 1 200 |
Commission income | 9 500 | 7 200 | 9 500 | 10 000 |
Gross operating income | ||||
Operating expenses | 48 300 | ? | ? | |
Salaries (managers) | 17 100 | 17 100 | 17 100 | D |
Wages (cleaners) | 3 200 | 3 200 | 3 200 | 3 376 |
Maintenance | 4 000 | 1 650 | 4 000 | 4 000 |
Telephone | 2 000 | 4 280 | 2 000 | 2 500 |
Insurance | 1 800 | 1 800 | 1 800 | 1 800 |
Advertising | 2 400 | 1 900 | C | 3 168 |
Depreciation | 6 200 | 8 000 | 6 200 | 8 000 |
Trading stock deficit | 0 | 680 | 0 | 500 |
Stationery | 3 150 | 3 100 | 3 200 | 3 250 |
Sundry operating expenses | 8 450 | 8 420 | 8 500 | 8 550 |
Operating profit | 17 400 | ? | ? | |
Interest income | 225 | 200 | 200 | 200 |
Profit before interest expense | 17 625 | |||
Interest expense | 585 | 585 | 585 | 435 |
Net profit before income tax | ? | ? | ? | |
Income tax | ? | ? | ? | |
Net profit after tax | E | ? | ? |
4.4 ANALYSING AND INTERPRETING BUDGET INFORMATION
Frequently asked Questions (FAQ)
ACTUAL AMOUNT | EXPLANATION |
Well controlled | The actual amount is equal to or very close to the budgeted amount. |
Over-budget | Under-spending. The amount is significantly lower than the budgeted amount. |
Under-budget | Over-spending. The amount is significantly higher than the budgeted amount. |
ACTUAL AMOUNT | POSSIBLE REASON | SOLUTION/ADVICE |
Well controlled | Well managed and communicated. | |
Over-budget | Incorrect budgeting; trying to cut costs; lack of supervision; negligence. unrealistic budgeting. | Adjust the budget; do not attempt to cut the cost of essential services; always consult the budget. |
Under-budget | Lack of supervision; no company rules; abusing privileges, unrealistic budgeting. | Investigate; set rules; supervise; adjust the budget if necessary. |
RELATE THE REASON/ ADVICE TO THE SPECIFIC ITEM BEING ANALYSED. |
EXAMPLE:
Kobus is concerned about the following items, which were under/ over budget for February 2016:
Item | Budgeted | Actual | Under/ over budget |
Collections from debtors | 174 200 | 61 800 | Under |
Payments to creditors | 39 400 | 15 600 | Under |
Insurance | 2 260 | 0 | Under |
Drawings | 18 000 | 52 000 | Over |
Explain why each of the items reflects a problem for the business and advise Kobus regarding each case.
Item | Explanation |
Collection from debtors | Any two valid reasons
|
Payments to creditors | Any two valid reasons
|
Insurance | Any two valid reasons
|
Drawings | Any two valid reasons
|
ACTIVITY 3:
Below is information relating to DIY Hardware. The business is owned by John Temba. His inexperienced bookkeeper, Mabel, has prepared a Cash Budget.
REQUIRED:
3.1 Identify TWO items that Mabel has incorrectly entered in the Cash Budget. (4)
3.2 Apart from the items mentioned above, name TWO other items in the Payments Section of the Cash Budget that would NOT appear in a Projected Income Statement. (4)
3.3 After correcting all the errors John has identified the following:
JAN 2013 | FEB 2013 | |
Cash deficit for the month | (14 950) | (52 400) |
Cash at the beginning of the month | 35 350 | |
Cash at the end of the month | A | B |
Identify or calculate A and B. Indicate negative figures in brackets. (3)
3.4 Identify or calculate the missing figures C and D in the extract from the Cash Budget. (7)
3.5 Complete the Debtors’ Collection Schedule for February 2013. (10)
3.6 Calculate the percentage increase in salary and wages from 1 February 2013. (2)
3.7 Calculate the interest on the fixed deposit for January 2013. (2)
3.8 John pays Speedy Deliveries to deliver hardware to his customers free of charge. He budgets for this at a rate of 8% of total monthly sales.
3.8.1 Calculate the delivery expense figure budgeted for January 2013. (2)
3.8.2 John is of the opinion that the delivery service is costing him too much.
Which TWO points should John consider before deciding on whether or not to discontinue this service? (4)
3.9 On 31 January 2013 you identified the figures below. Explain what you would say to John about each of the following items at the end of January 2013. Give ONE point of advice in each case. (9)
JANUARY 2013 | ||||
BUDGETED | ACTUAL | |||
Advertising | 1 600 | 0 | ||
Stationery | 1 000 | 4 400 | ||
Staff training | 2 000 | 700 | ||
3.10 John will have a problem with replacing his old computers and cash registers in March 2013. The cost of these items amounts to R150 000 and he expects them to last 5 years. However, he does not have cash available to pay for this. His options are:
Consider each of these options and explain ONE other advantage and ONE disadvantage of each option. Provide figures to support your answer. (6)
INFORMATION:
JAN 2013 | FEB 2013 | |
RECEIPTS | ||
Cash sales | 96 000 | 84 000 |
Collection from debtors | 70 000 | ? |
Interest on fixed deposit (7% p.a.) | ? | 0 |
Fixed deposit: Magic Bank maturing on 1 Feb. 2013 | 0 | 42 000 |
Commission income | ? | ? |
Rent income | 8 500 | 8 800 |
PAYMENTS | ||
Salary and wages | 15 000 | 16 800 |
Stationery | 1 000 | 1 000 |
Telephone | ? | ? |
Payment to creditors | 71 250 | D |
Cash purchase of stock | C | 52 500 |
Repayment of existing loan | 100 000 | |
Furniture bought on credit | 30 000 | |
Delivery expense for delivery of hardware to customers | ? | 11 200 |
Training of staff | 2 000 | 2 000 |
Advertising | 1 600 | 1 400 |
Depreciation | 12 500 | 12 500 |
Sundry expenses | 3 500 | 3 600 |
Drawings by owner | ? | ? |
Vehicle expenses | 0 | 500 |
ACTIVITY 4: (40 marks; 25 minutes)
4.1 Explain why:
4.1.1 Depreciation and bad debts will not appear in a Cash Budget. (2)
4.1.2 A cash budget is different from a Projected Income Statement. (2)
4.2 KIT KAT DISTRIBUTORS LTD
You are provided with information for the budget period November and December 2018.
REQUIRED:
4.2.1 Complete the Debtors’ Collection Schedule. (12)
4.2.2 Calculate the missing amounts in the Cash Budget denoted by (i) to (iv). (20)
4.2.3 Comment on the internal controls on collection from debtors and payment to creditors. Provide TWO points. (4)
INFORMATION:
A. Cash sales amount to 40% of total sales.
Goods are marked-up by 25% on cost.
B. Debtors are granted credit terms of 30 days. The actual collection trend revealed that:
C. Stock is replaced in the month it was sold, i.e. a base stock is maintained.
D. 80% of stock is bought on credit. Creditors are paid in full in the month following the month the purchase was made.
E. Salaries and wages are expected to remain the same for the budget period. Staff members on leave in December will receive their pay in November - the total amount is R35 600.
F. A loan will be received from a director, Thabo, on 1 November 2018, at 13% interest p.a. Interest is not capitalised. A fixed monthly instalment and interest will be paid at the end of each month.
G. The company will pay an interim dividend in December. H Rent increased by 8% on 1 November 2018.
I. Incomplete Debtors’ Collection Schedule:
MONTH | CREDIT SALES | NOVEMBER | DECEMBER |
September | 180 000 | 32 400* | |
October | 186 000 | 55 800 | * |
November | * | 92 625 | * |
December | 210 000 | * | |
TOTAL | * | * |
J. Information from the Projected Income Statement:
NOVEMBER 2018 | |
Sales | 325 000 |
Cost of sales | 260 000 |
Commission income | 24 800 |
Depreciation | 12 600 |
Interest expense | 1 625 |
K Incomplete Cash Budget for 2018:
RECEIPTS | NOVEMBER | DECEMBER |
Cash sales | 130 000 | (i) |
Cash from debtors | ||
Commission income | 24 800 | 26 000 |
Rent income | (ii) | 19 710 |
Loan from director Thabo | 150 000 | 0 |
TOTAL RECEIPTS | ||
PAYMENTS | ||
Cash purchases of stock | 52 000 | 56 000 |
Payments to creditors | (iii) | 208 000 |
Directors fees | 20 000 | 20 000 |
Salaries and wages | 180 600 | (iv) |
Loan instalment (including interest) | 13 625 | (v) |
Interim dividends | 0 | 86 500 |
Sundry expenses | 15 875 | 16 510 |
TOTAL PAYMENTS |
Start-up Activity
Place the correct amount in the respective column/s.
Note that amounts can go in more than one column.
NO | INFORMATION | CASH BUDGET | PROJECTED INSOMCE STATEMENT | ||
RECEIPT | PAYMENT | INCOME | EXPENSE | ||
a | Cash sales are expected to be R7 400 per month at a 25% mark-up on cost. | 7 400 | 7 400 | 5 920 | |
b | An old computer with a carrying value of R4 400 will be sold for R2 500 cash in the next month. | 2 500 | 1 900 | ||
c | Depreciation on equipment is estimated to be R950 per month. | 950 | |||
d | An annual insurance premium of R5 200 is paid by cheque. R1 200 is for the next financial year. | 5 200 | 4 000 |
EXAMPLE: Cash sales amounts to 30% of total sales.
Calculate the missing amounts.
TOTAL SALES 100% | CASH SALES 30% | CREDIT SALES 70% | |
March | 320 000 | 96 000 | 224 000 |
April | 350 000 | 105 000 | 245 000 |
May | 365 000 | 109 500 | 255 500 |
June | 400 000 | 120 000 | 280 000 |
Debtors’ Collection Schedule:
Credit Sales R | 2017 | |||
May R | June R | |||
Actual | March | 224 000 | 89 600 | |
April | 245 000 | 85 750 | 98 000 | |
Expected | May | 255 000 | 48 545 | 89 425 |
June | 280 000 | 53 200 | ||
223 895 | 240 625 |
DO THE CALCULATIONS: PURCHASES AND PAYMENTS TO CREDITORS
TOTAL SALES | COST OF SALES 100% | CASH PURCHASES 20% | CREDIT PURCHASES 80% | |
MARCH | 320 000 | 320 000 x 100/160 | 40 000 | 160 000 |
APRIL | 350 000 | 350 000 x 100/160 | 43 750 | 175 000 |
MAY | 365 000 | 365 000 x 100/160 | 45 625 | 182 500 |
Amount to be paid in May 2017 | 160 000 |
1.1 LET’S PRACTICE: (Sales and Purchases)
MONTH | CREDIT SALES | MAY | JUNE | JULY |
March | 49 000 | 8 820 | ||
April | 58 800 | 29 400 | 10 584 | |
May | 51 800 | 14 763 | 25 900 | 9 324 |
June | 63 000 | 17 955 | 31 500 | |
July | 56 000 | 15 960 | ||
CASH FROM DEBTORS | 52 983 | 54 439 | 56 784 |
1.2 CASH BUDGET (EXTRACT)
CASH RECEIPTS | MAY | JUNE | JULY |
Cash sales | 12 950 | 15 750 | 14 000 |
Cash from debtors | 52 983 | 54 439 | 56 784 |
CASH PAYMENTS | |||
Cash purchases of stock | 14 800 | 18 000 | 16 000 |
Payments to creditors | 21 000 | 25 200 | 22 200 |
Workings: Calculation of the cost of sales and credit purchases:
MARCH | APRIL | MAY | JUNE | JULY | |
Sales | R61 250 | R73 500 | R64 750 | R78 750 | R70 000 |
Cost of Salesx 100/175 | 35 000 | 42 000 | 37 000 | 45 000 | 40 000 |
Credit Purchases COS x 60% | 21 000 | 25 200 | 22 200 | 27 000 | 24 000 |
LET’S PRACTICE (Calculations)
2.1 DEBTORS COLLECTION SCHEDULE
MONTHS | CREDIT SALES | MAY | JUNE | |
March | 111 375 | 52 725 | ||
April | 126 000 | 75 600 | 46 620 | |
May | 106 875 | 64 125 | ||
June | ||||
128 325 | 111 745 |
2.2 CASH BUDGET FOR THE PERIOD 1 MAY - 30 JUNE
MAY | JUNE | |
Cash sales | 35 625 | 38 625 |
Cash from debtors | 128 325 | 111 745 |
Rent income | 12 208 | 12 208 |
Payments to creditors | 107 520 | 91 200 |
Manager’s salary | 15 400 | 16 940 |
Wages (shop assistants) | 20 670 | 24 115 |
Interest on loan | 3 600 | 3 100 |
Commission expense | 4 275 | 4 635 |
Sundry expenses | 8 820 | 9 261 |
Advertising | 2 300 | 2 438 |
Drawings | 4 300 | 4 300 |
2.3 Calculate the amount of the Fixed Deposit invested on 1 June.
ACTIVITY 1: BRAKPAN STATIONERS
1.1 Explain the importance of comparing budgeted figures with actual figures achieved for the same period.
One valid explanation
1.2 Calculate the missing amounts (indicated by a, b and c) in the Debtors’ Collection Schedule for the budgeted period March to May 2015 (4)
a | 6 048 |
b | 5 320 |
c | 15 750 |
1.3.1 Calculate budgeted total sales for March 2015. (2)
1.3.2 Calculate the amount budgeted for payments to creditors during May 2015. (4)
1.3.3 Calculate the budgeted salaries of the shop assistants for April 2015. (3)
1.3.4 Calculate the % increase in the salary of the manager expected in May 2015. (3)
1.3.5 Calculate the amount of the additional loan expected to be acquired on 1 April 2015. (3)
1.4 An official of the local municipality has offered to recommend that Brakpan Stationers supply the municipality with stationery to the value of R500 000. However, he will only do this if he is paid R20 000 in cash.
Give advice in this regard. State TWO points.
Any two suggestions (4)
1.5 Identify THREE over-payments made in April. Provide figures to support your answer. Provide a valid reason for each over-payment to support the decision taken. (6)
Over-payment with figures Item and figure | Valid reason | |
1 | The bonus paid to the manager in February 2015 (R24 000) was not taken into account. | He has retained the services of a valuable employee. |
2 | Purchase of vehicle (R180 000). | The difference between motor vehicle expenses and delivery expenses is R5 200 per month. |
3 | Cash purchase of merchandise (R28 000) was significantly higher than the budgeted figure (R12 000). | Possibly to take advantage of discounts on bulk purchases. |
1.6 Explain how this difference of opinion with his wife can be avoided in future.
State TWO other strategies that the owner and his wife could consider in future to improve the results of the business.
Any two valid points:
ACTIVITY 2 : DAWN DISTRIBUTORS
2.1 Identify TWO items that Mabel has incorrectly entered in the Cash Budget.
Any TWO
2.2
A | Gross profit | 120 000 - 75 000 = 45 000 |
B | Cost of sales | 132 000 x 100/160 = 82 500 Or 132 000 x 62,5% or 132 000 - (132 000 x 37,5%) |
C | Advertising | 2 400/120 000 = 2% 132 000 x 2% = 2 640 |
D | Salaries | 17 100 x 108% = 18 468 Or 17 100 + 1 368 = 18 468 |
E | Net Profit after tax | 17 040 (17 625 - 585) x 30% = 5 112 17 040 - 5 112 = 11 928 |
2.3.1 The percentage increase in wages that the cleaners will receive in December 2015.
2.3.2 The monthly salary due to the Sales Manager in December 2015.
2.3.3 Total credit sales expected in December 2015.
2.3.4 The balance of the loan on 1 November 2015.
ACTIVITY 3: DIY HARDWARE
3.1 Identify TWO items that Mabel has incorrectly entered in the Cash Budget.
Two items
3.2 Apart from the items above, name TWO other items in the Payments Section of the Cash Budget that would NOT appear in a Projected Income Statement.
Any two items
Expected responses:
3.3 Identify or calculate A and B. Indicate negative figures in brackets.
A | R35 350 |
B | (R17 050) |
3.4 Identify or calculate the missing figures C and D in the extract from the Cash Budget
C | 160 000 x 100/133⅓ = 120 000; 120 000 x 50% = R60 000 | ||
D | 60 000 x 95% = 57 000 any one part correct |
3.5 Complete the Debtors’ Collection Schedule for February 2013.
Credit sales | February collections | |
December | R80 000 | 14 400 |
January | R64 000 | 32 000 |
February | R56 000 | 16 800 |
TOTAL operation | 63 200 |
3.6 Calculate the % increase in salary and wages with effect from 1 February 2013.
3.7 Calculate interest on the fixed deposit for January 2013.
3.8.1 Calculate delivery expenses for January 2013.
3.8.2 John is of the opinion that the delivery service is costing him too much. Which TWO points should John consider before deciding whether or not to discontinue this service?
Two factors
3.9 Explain what you would say to John about each item at the end of January 2013. Give ONE point of advice in each case.
Comment | Advice | |
Advertising | As he did not spend any money on Advertising, this will probably mean that he will not achieve budgeted sales. | Make sure that he utilises the advertising budget fully each month. (It is there for a purpose.) |
Stationery | He spent significantly more than the budgeted figure. | Ensure that there is no wastage of stationery. / Keep unused stationery secured. / Find a cheaper supplier. |
Staff training | He under-spent on the budget, which means that staff might not be interacting well with customers. | He must consider that staff training affects the manner in which staff interact with customers. This leads to efficiency and goodwill. |
3.10 Consider each of the options below and explain ONE other advantage and ONE disadvantage related to each option.
Other Advantage | Diadvantage | |
Option 1: Raise a new loan to be repaid over 36 months. The interest rate is 14% p.a.. | He will own the assets and they could last longer than five years if he takes good care of them. | He has to pay interest of R1 750 per month + R4 167 per month to repay the loan. |
Option 2: Hire (lease) the assets from IT Connect Ltd at R5 100 per month. | He does not have to raise a loan. / He does not have to pay interest on the loan./ He will not have to pay repair costs. | The lease charges are expensive, at R5 100 per month (R306 000 over the expected life span of five years.) / He never owns the assets and so continues to pay. |
Option 3: Invite his friend James to become an equal partner in the business and to provide capital of R150 000. | He will have the necessary funds to purchase the assets which will then belong to, the business / They will share the workload and their skills. | He will have to share half his profits with his new partner. |
ACTIVITY 4 :
4.1 Explain why:
4.1.1 Depreciation and bad debts will not appear in a Cash Budget.
Any valid explanation.
4.1.2 A cash budget is different from a Projected Income Statement.
Any valid explanation.
4.2 KIT KAT DISTRIBUTORS LTD
4.2.1
MONTHS | CREDIT SALES | NOVEMBER | DECEMBER |
September | 180 000 | 32 400 | |
October | 186 000 | 55 800 | 33 480 |
November | 195 000 | 92 625 | 58 500 |
December | 210 000 | 99 750 | |
Total collection from debtors | 180 825 | 191 730 |
4.2.2 Calculate:
4.2.3 Comment on the internal controls for collection from debtors and payments to creditors. Provide TWO points.
Any TWO valid points.
“Begin with the end in mind.”
Stephen Covey
At the end of your journey in the GET phase, you were required to choose a subject set that will shape your career path. Hopefully, your choice was based on your aptitude, ambition and desire
to become a successful individual, with a comfortable standard of living.
Let’s be frank! Accounting is not for the faint-hearted. There are NO short-cuts. Success in
Accounting demands hard work and dedication, but the rewards are satisfying.
The questions and topics covered in the examination papers are very predictable. You need
to just extract the NSC papers for the last three years from the internet and compare the questions. If you do this, you will become familiar with the commonly sked questions and the style and format of the paper. You will also gain insight into the different ways in which questions
can be asked.
Practice every day, do not be afraid to ask questions, engage in group studies and attend the
many intervention programmes organized by your school and your Department of Education.
Effective planning will ensure that you:
Know the rules of the game and play it better than others.
This Accounting module on the Analysis and Interpretation of financial information was developed by Mr P Govender, Mr A Leeuw, Mr M.P Shabalala, Mr Dorian Olifant and Ms ZJM Mampana (Subject Specialists, PED)
A special mention must be made of Mr Mzikaise Masango, the DBE curriculum specialist who, in addition to his contribution to the development of the guide, also coordinated and finalised the process.
These officials contributed their knowledge, experience and in some instances unpublished which they have gathered over the years to the development of this resource. The Department of Basic Education (DBE) gratefully acknowledges these officials for giving up their valuable time, families and expertise to develop this resource for the children of our country.
Administrative and logistical support was provided by Mr Noko Malope and Ms Vhuhwavho Magelegeda. These officials were instrumental in the smooth and efficient management of the logistical processes involved in this project.
Look out for more modules that deal with other topics of the Grade 12 syllabus.