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BUSINESS STUDIES GRADE 12 MEMORANDUM - NSC EXAMS PAST PAPERS AND MEMOS NOVEMBER 2018

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BUSINESS STUDIES
GRADE 12 
NSC EXAMS
PAST PAPERS AND MEMOS
NOVEMBER 2018

NOTES TO MARKERS 
PREAMBLE 
The notes to markers are provided for quality assurance purposes to ensure the following: 

  1. Fairness, consistency and reliability in the standard of marking 
  2. Facilitate the moderation of candidates' scripts at the different levels
  3. Streamline the marking process considering the broad spectrum of markers across the country
  4. Implement appropriate measures in the teaching, learning and assessment of the  subject at schools/institutions of learning 

GUIDELINES

  1. For marking and moderation purposes, the following colours are recommended:
    Marker                                          Red 
    Senior Marker:                             Green 
    Deputy Chief Marker:                   Brown/Black/Blue
    Chief Marker:                                Pink
    Internal Moderator:                       Orange 
    DBE Moderator:                            Turquoise
  2. Comprehensive marking guidelines have been provided but this is by no means  exhaustive. Due consideration should be given to an answer that is correct but:
    • Uses a different expression from that which appears in the marking  guidelines
    • Comes from another source
    • Original
    • A different approach is used
      NOTE: There is only ONE correct answer in SECTION A. 
  3. Candidates' responses must be in full sentences for SECTIONS B and C.  However, this would depend on the nature of the question.
  4. Take note of other relevant answers provided by candidates and allocate marks  accordingly. (In cases where the answer is unclear or indicates some  understanding, part-marks should be awarded, for example, one mark instead  of the maximum of two marks.) 
  5. The word 'Sub-max' is used to facilitate the allocation of marks within a  question or sub-question. 
  6. The purpose of circling marks (guided by 'max' in the breakdown of marks) on  the right-hand side is to ensure consistency and accuracy in the marking of  scripts as well as for calculation and moderation purposes.
  7. Subtotals to questions must be written in the right-hand margin. Circle the  subtotals as indicated by the allocation of marks. This must be guided by 'max' in the marking guidelines. Only the total for each question should appear in the  left-hand margin next to the appropriate question number.
  8. In an indirect question, the theory as well as the response must be relevant and  related to the question.
  9. Incorrect numbering of answers to questions or sub questions in SECTIONS A  and B will be severely penalised. Therefore, correct numbering is strongly  recommended in all sections. 
  10. No additional credit must be given for repetition of facts. Indicate with an 'R'.
  11. Note that no marks will be awarded for indicating Yes/No in evaluation type  questions requiring substantiation or motivation. (Applicable to SECTIONS B  and C)
  12.  The differentiation between 'evaluate' and 'critically evaluate' can be explained  as follows:
    12.1 When 'evaluate' is used, candidates are expected to respond in either  a positive/negative manner or take a neutral (positive and negative)  stance, e.g. Positive: 'COIDA eliminates time and costs spent√ on  lengthy civil court proceedings.'√
    12.2 When 'critically evaluate' is used, candidates are expected to respond  in either a positive/negative manner or take a neutral (positive and  negative) stance. In this instance candidates are also expected to  support their responses with more depth, e.g. 'COIDA eliminates time  and costs spent√ on lengthy civil court proceedings√, because the  employer will not be liable for compensation to the employee for  injuries sustained during working hours as long as it can be proved  that the business was not negligent.'√
    NOTE:
    1. The above could apply to 'analyse' as well.
    2. Note the placing of the tick (√) in the allocation of marks.
  13. The allocation of marks must be informed by the nature of the question,  cognitive verb used, mark allocation in the marking guidelines and the context of  each question.
    Cognitive verbs, such as:
    13.1 Advise, name, state, mention, outline, motivate, recommend, suggest,  (list not exhaustive) do not usually require much depth in candidates' responses. Therefore, the mark allocation for each statement/answer  appears at the end.
    13.2 Define, describe, explain, discuss, elaborate, distinguish, differentiate, justify, devise, analyse, evaluate, critically evaluate (list not exhaustive) require a greater depth of understanding, application and reasoning.  Therefore, the marks must be allocated more objectively to ensure that  assessing is conducted according to established norms so that  uniformity, consistency and fairness are achieved.
  14. Mark only the FIRST answer where candidates offer more than one answer for  SECTION B and C questions that require one answer.
  15. SECTION B
    15.1 If for example, FIVE facts are required, mark the candidate's FIRST FIVE  responses and ignore the rest of the responses. Indicate by drawing a line  across the unmarked portion or use the word 'Cancel'.
    NOTE: This applies only to questions where the number of facts is specified.
    15.2 If two facts are written in one sentence, award the candidate FULL credit.  Point 15.1 above still applies.
    15.3 If candidates are required to provide their own examples/views, brainstorm this  at the marking centre to finalise alternative answers.
    15.4 Use of the cognitive verbs and allocation of marks:
    15.4.1 If the number of facts are specified, questions that require candidates  to 'describe/discuss/explain' may be marked as follows:
    • Fact 2 marks (or as indicated in the marking guidelines) 
    • Explanation 1 mark
      The 'fact' and 'explanation' are given separately in the marking  guidelines to facilitate mark allocation.
      15.4.2 If the number of facts required is not specified, the allocation of marks  must be informed by the nature of the question and the maximum mark  allocated in the marking guidelines.
      15.5 ONE mark may be awarded for answers that are easy to recall, requires  one word answers or is quoted directly from a scenario/case study. This  applies to SECTIONS B and C in particular (where applicable).
  16. SECTION C
    16.1 The breakdown of the mark allocation for the essays is as follows:

Introduction 

Maximum: 

32 

Content

Conclusion

Insight 

8

TOTAL 

40

16.2 Insight consists of the following components: 

 

Layout/Structure Is there an introduction, a body and a conclusion? 

2

Analysis and  interpretation

Is the candidate able to break down the question into  headings/subheadings/interpret it correctly to show  understanding of what is being asked? 
Marks to be allocated using this guide: 

  • All headings addressed: 1 (One 'A')
  • Interpretation (16 to 32 marks): 1 (One 'A')

2

Synthesis 

Are there relevant decisions/facts/responses made based  on the questions?  
Marks to be allocated using this guide: 

  • No relevant facts: 0 (Two '-S')
  • Some relevant facts: 1 (One '-S')
  • Only relevant facts: 2 (No '-S') 

Option 1: Where a candidate answers 50% or more of  the question with only relevant facts; no '-S' appears in the left margin. Award the  maximum of TWO (2) marks for synthesis 
Option 2: Where a candidate answers less than 50% of  the question with only OR some relevant facts;  one '-S' appears in the left margin. Award a  maximum of ONE (1) mark for synthesis. 
Option 3: Where a candidate answers less than 50% of  the question with no relevant facts; two '-S' appear in the left margin. Award a ZERO mark  for synthesis.

2

Originality 

Is there evidence of examples, recent information, current  trends and developments?

2

TOTAL FOR INSIGHT: 
TOTAL MARKS FOR FACTS: 
TOTAL MARKS FOR ESSAY (8 + 32):


32 
40

NOTE:

  1. No marks will be awarded for contents repeated from the  introduction and conclusion. 
  2. The candidate forfeits marks for layout if the words  INTRODUCTION and CONCLUSION are not stated. 
  3. No marks will be awarded for layout, if the headings  INTRODUCTION and CONCLUSION are not supported by an  explanation. 

16.3 Indicate insight in the left-hand margin with a symbol e.g. ('L, A,-S and/or O') 
16.4 The breakdown of marks is indicated at the end of the suggested answer/ marking guidelines to each question.
16.5 Mark all relevant facts until the SUB MAX/MAX mark in a subsection has  been attained. Write SUB MAX/MAX after maximum marks have been  obtained. 
16.6 At the end of each essay indicate the allocation of marks for facts and marks  for insight as follows: 
(L – Layout, A – Analysis, S – Synthesis, O – Originality) as in the table  below. 

CONTENT 

MARKS

Facts 

32 (max.)

2

2

2

2

TOTAL 

40

16.7 When awarding marks for facts, take note of the sub-maxima indicated,  especially if candidates do not make use of the same subheadings.  Remember, headings and subheadings are encouraged and contribute to  insight (structuring/logical flow/sequencing) and indicate clarity of thought.  (See MARK BREAKDOWN at the end of each question). 
16.8 If the candidate identifies/interprets the question INCORRECTLY, then  he/she may still obtain marks for layout. 
16.9 If a different approach is used by candidates, ensure that the answers are  assessed according to the mark allocation/subheadings as indicated in the  marking guidelines. 
16.10 16.10.1 Award TWO marks for complete sentences. Award ONE mark for  phrases, incomplete sentences and vague answers. 
16.10.2 With effect from November 2015, the TWO marks will not  necessarily appear at the end of each completed sentence. The  ticks(√) will be separated and indicated next to each fact, e.g.  'Product development is a growth strategy,√ where businesses aim  to introduce new products into existing markets.'√ This will be informed by the nature and context of the question, as  well as the cognitive verb used.  
16.11 With effect from November 2017, the maximum of TWO (2) marks for facts  shown as headings in the marking guidelines, will not necessarily apply to  each question. This would also depend on the nature of the question.

MEMORANDUM 

SECTION A 
QUESTION 1 
1.1
1.1.1 C√√ 
1.1.2 D√√ 
1.1.3 B√√ 
1.1.4 A√√ 
1.1.5 A√√ 
1.1.6 A√√ 
1.1.7 B√√ 
1.1.8 D√√ 
1.1.9 A√√ 
1.1.10 D√√ (10 x 2) (20) 

1.2
1.2.1 strategy√√ 
1.2.2 retirement annuities√√ 
1.2.3 language√√ 
1.2.4 fringe√√ 
1.2.5 dismissed√√ (5 x 2) (10) 

1.3
1.3.1 F√√ 
1.3.2 G√√ 
1.3.3 I√√ 
1.3.4 H√√ 
1.3.5 A√√ (5 x 2) (10)

TOTAL SECTION A: 40 

BREAKDOWN OF MARKS

QUESTION 1 

MARKS

1.1 

20

1.2 

10

1.3 

10

TOTAL 

40

SECTION B 
Mark the FIRST THREE answers only. 
QUESTION 2: BUSINESS ENVIRONMENTS 
2.1 Pillars of BBBEE 
Option 1 

  • Ownership√ 
  • Management√ 
  • Employment Equity√ 
  • Skills development√ 
  • Enterprise development √ 
  • Supplier development/Preferential procurement√ 
  • Socio economic development/Corporate social investment√ 

OR 
Option 2  

  • Ownership√ 
  • Management control√ 
  • Skills development√ 
  • Enterprise and supplier development√ 
  • Socio economic development√
    NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 

2.2 Role of SETAs 

  •  Develop sector skills plans in line with the National Skills Development  Strategy.√√ 
  • Draw up skills development plans for their specific economic sectors.√√
  • Approve workplace skills plans and annual training reports.√√ 
  • Allocate grants to employers, education and training providers.√√
  • Pay out grants to companies that are complying with the requirements of the  Skills Development Act.√√ 
  • Monitor/Evaluate the actual training by service providers.√√ 
  • Promote and establish learnerships.√√ 
  • Register learnership agreements/learning programmes.√√
  • Provide training material/programmes for skills development facilitators.√√
  • Provide accreditation for skills development facilitators.√√ 
  • Oversee training in different sectors of the South African economy.√√
  • Promote learnerships and learning programmes by identifying suitable  workplaces for practical work experience.√√
  • Collect levies and pay out grants as required.√√ 
  • Report to the Director General.√√ 
  • Any other relevant answer related to the role of SETAs in supporting the SDA.  Max (8)

2.3 Business sectors/Business environments 
2.3.1 Primary sector√√ (2) 
Motivation 

  • Duka Mines specialise in the extraction of platinum.√ (1)
    NOTE: Do not allocate marks for the motivation if the business sector was  incorrectly identified. Max (3) 

2.3.2 Classification of challenges and the extent of control 

CHALLENGES 

(2.3.2)

BUSINESS  ENVIRONMENTS 

(2.3.3)

EXTENT OF  CONTROL 

(2.3.4)

1. Their suppliers of mining  equipment have increased their  prices by more than 20%.√

  •  Market environment√ 
  • Partial/Limited/ Little control/No control, but can  influence√

2. The supervisor does not have a  good working relationship with his  employees.√

  • Micro environment√ 
  • Full control√

3. DM can no longer export their  products due to an increase in the  exchange rate.√

  • Macro environment√ 
  • No control√

Max (3) 

Max (3) 

Max (3)

NOTE: .

  1. Do not award marks for challenges that are not fully quoted from the  scenario. 
  2. Do not award marks for business environments if it is not linked to  the challenges.
  3. Award marks for the business environments even if the quote is incomplete. 
  4. The extent of control must be linked to the business environment. 
  5. Do not award marks for the extent of control if the business environment is not mentioned. 
  6. The order may be different.
    Max (9) 

2.4 Types of diversification strategies 

  •  Concentric diversification√√ 
    • The business adds a new product or service that is related to existing  products and which will appeal to new customers.√
    • Occurs when a business wants to increase its product range and markets.√ o Any other relevant answer related to concentric diversification as a  diversification strategy. 

Strategy (2) 
Description (1) 
Sub max (3)

  • Horizontal diversification√√
    • The business adds new products or services that are unrelated to existing  products, but which may appeal to existing customers.√
    • Occurs when a business acquires or merges with a business that is at the  same production stage, but it may offer a different product.√ 
    • Any other relevant answer related to horizontal diversification as a  diversification strategy. 

Strategy (2) 
Description (1) 
Sub max (3) 

  • Conglomerate diversification√√ 
    • The business adds new products or services that are unrelated to existing  products which may appeal to new groups of customers.√
    • Conglomerate diversification means that a business grows into new  products, services and markets.√ 
    • Any other relevant answer related to conglomerate diversification as a  diversification strategy. 

Strategy (2) 
Description (1) 
Sub max (3) 
 Max (9) 

NOTE: Mark the first THREE only 
2.5 Purpose of BCEA 

  • Enforces/Establishes basic conditions of employment√ for employers and  employees.√
  • Set minimum requirements/standards√ for the employment contract.√
  • Regulates the right to fair labour practices√ as set out in the Constitution.√
  • Adheres to the rules and regulations√ set out by the International Labour  Organisation.√ 
  • Regulates the variations√ of basic conditions of employment.√
  • Advances economic development√ and social justice.√ 
  • Any other relevant answer related to the purpose of the BCEA.
    Max (6) 

2.6 Legislation  
2.6.1 Employment Equity Act, 1998 (Act 55 of 1998)/Employment Equity Act/EEA.√√  (2) 
Motivation 

  • People with disabilities are encouraged to apply for this vacant position.√ (1)
    NOTE: Do not allocate marks for the motivation if the Act was incorrectly  identified. Max (3)

2.6.2 Impact of EEA on businesses 
Positives 

  • Promotes equal opportunities√ and fair treatment in employment.√
  • Encourages consultation√ between employer and employees.√ 
  • Motivates employees√ because the workforce is more diverse/representative/ inclusive.√
  • Appointment process is clearly defined√, so all parties are well informed.√
  • Prevents unfair discrimination√ as it ensures that the workforce represents the demographics of the country/promotes diversity in the workplace.√
  • Creates a framework√ of acceptable employment practices/affirmative action measures.√ 
  • Promotes the implementation of affirmative action√ to address the imbalances  of the past.√ 
  • Diversity/Inclusivity in the workplace√ can be achieved.√ 
  • Businesses are in a better position to negotiate contracts√ with the  government√/Impact positively√ on BEE ratings of businesses.√
  • Certified psychometric tests may be used√ to assess applicants/employees to  ensure that suitable candidates are appointed.√ 
  • Any other relevant answer related to the positive impact of EEA on businesses.

AND/OR 
Negatives 

  •  Increased administration burden√, as businesses must compile/submit  employment equity reports every two years.√
  • Expensive to train/employ someone√ who knows little about the Act.√
  • Other groups may not respect the knowledge/skills/experience of an EE  appointment√ and may lead to conflict.√ 
  • Fines/Penalties for non-compliant businesses√ may be expensive for the  business.√
  • Employers have to appoint one or more senior managers to ensure the  implementation of the plan√, which increases salary expenditure.√
  • Businesses must submit a compliance certificate√ before they can conduct  business with state businesses.√ 
  • Businesses are sometimes pressurised to appoint an unsuitable EE person√ to  meet EE requirements.√ 
  • Often positions go unfilled√ because there are no suitable EE candidates.√ - Any other relevant answer related to the negative impact of the EEA on  businesses.
    NOTE: Accept relevant facts if the Act/EEA was incorrectly identified as  an answer in QUESTION 2.6.1.
    Max (8)

2.7 Steps in evaluating a strategy 

  • Examine the underlying basis of a business strategy.√√
  • Look forward and backwards into the implementation process.√√
  • Compare the expected performance with the actual performance.√√
  • Measure business performance in order to determine the reasons for deviations  and analyse these reasons.√√
  • Take corrective action so that deviations may be corrected.√√
  • Set specific dates for control and follow up.√√
  • Draw up a table of the advantages and disadvantages of a strategy.√√ 
  • Decide on the desired outcome.√√
  • Consider the impact of the strategic implementation in the internal and external  environments of the business.√√
  • Any other relevant answer related to the steps in evaluating a strategy.
    NOTE: Accept steps in any order.
    Max (10) 

BREAKDOWN OF MARKS 

QUESTION 2 

MARKS

2.1 

4

2.2 

8

2.3.1 

3

2.3.2 

3

2.3.3 

3

2.3.4 

3

2.4 

9

2.5 

6

2.6.1 

3

2.6.2 

8

2.7 

10

TOTAL 

60

QUESTION 3: BUSINESS VENTURES 
3.1 Examples of insurable risks 

  • Theft√ 
  • Fidelity insurance√ 
  •  Burglary√ 
  • Money in transit√ 
  •  Fire√ 
  • Natural disaster/Storms/Wind/Rain/Hail√ 
  • Damage to/Loss of assets/vehicles/ equipment/buildings/premises√
  • Injuries on premises√ 
  • Any other relevant example related to insurable risks.
    NOTE: Mark the first THREE (3) only. (3x1) (3)

3.2 Rights of ordinary shareholders 

  •  Shareholders have a right to:
    • vote at the Annual General Meeting.√√ 
    • attend the Annual General Meeting to learn about the company's  performance.√√ 
    • receive interim and annual reports.√√ 
    • claim on company assets in the event of bankruptcy after all other creditors and preferential shareholders have been paid.√√ 
  • Any other relevant answer related to the rights of ordinary shareholders.
    NOTE: Mark the first TWO (2) only. (2x2) (4) 

3.3 Leadership theories 
3.3.1 Situational leadership theory√√ (2) 
3.3.2 Situational leadership theory 

  • Different leadership characteristics√ are needed for different situations.√ 
  • The task/situation dictates the leadership style that should be applied√, so  leaders are adaptable/flexible/self-assured.√
  • Effective application of this theory may enable leaders√ to accomplish their  goals.√
  • Relationships between leaders and employees√ are based on mutual trust/  respect/loyalty/integrity/honesty.√
  • Leaders have the ability to analyse the situation/get the most suitable people in  the right positions√ to complete tasks successfully.√
  • Leaders analyse group members/objectives/time constraints√, to adopt a  suitable/relevant leadership style.√ 
  • May lead to conflict√ when leaders use different leadership styles/when  managing employees in different situations.√
  • The success of this theory depends on the kind of relationship that exists√  between the leader and followers/subordinates/employees.√ 
  • Any other relevant answer related to the situational leadership theory.
    NOTE: Accept relevant facts if the situational leadership theory was incorrectly identified in QUESTION 3.3.1.
    Max (8)

3.4 Distinction between a private company and public company 

PRIVATE COMPANY 

PUBLIC COMPANY

May not offer shares√ to the general  public.√

Trades its shares publicly√ on the  Johannesburg Securities Exchange.√ 

Shares are not√ freely transferable√ 

Shares are freely√ transferable. √

Minimum of one director.√ 

Minimum of three directors.√

Name must end√ with Proprietary  Limited/(Pty) Ltd.√

Name must end√ with Limited/Ltd.√

Annual financial statements need  not be audited√ and published.√ 

Annual financial statements need to be  audited√ and published.√ 

Does not need to publish a pros pectus√ as it cannot trade its shares  publicly.√ 

Have to register and publish√ a pros pectus with the Companies and  Intellectual Property  Commission/CIPC.√

The company is not required to  raise√ the minimum subscription/  issue minimum shares.√

Must raise a minimum subscription  prior√ to commencement of the  company.√

Any other relevant answer related to  a private company. 

Any other relevant answer related to a  public company.

Sub max (4) 

Sub max (4)

NOTE:

  1. The answer does not have to be in tabular format. 
  2. The distinction does not have to link but must be clear. 
  3. Award a maximum of FOUR (4) marks if the distinction is not  clear/Mark either a private company or public company.
    Max (8) 

3.5 Investments  
3.5.1 Simple interest  

  • FORMULA: Interest = PxRxT √
    R30 000√ x 12% x 2 years√ = R7200√ 

NOTE:

  1. Allocate full marks (3) if the answer is correct and no workings  are shown. 
  2.  If workings were shown correctly, but the final answer is wrong,  award a maximum of TWO marks. 
  3.  If the answer is incorrect, award a maximum of ONE mark for the  understanding of concept and method. 
  4.  If there are no workings shown and the answer is incorrect,  allocate a ZERO mark. 
    Max (3)

3.5.2 Compound interest 
Option 1 

  • Year 1: R30 000√ x 12% = R3600 √
    Year 2: R33 600√ x 12% = R4032√
    Total interest = R7632 √ 

OR 
Option 2  

  • FORMULA: P x (1 + r)n
    R30 000√ x (1+12/100)2
    R30 000 x (1.12)2 =R37 632√
    Total interest = R37 632- R30 000
    = R7632√ 

NOTE:

  1. Allocate full marks (4) if the answer is correct and no working are shown. 
  2. If workings were shown correctly, but the final answer is wrong, award a maximum of THREE marks. 
  3.  If the answer is incorrect, award a maximum of ONE mark for the understanding of concept and method. 
  4.  If there are no workings shown and the answer is incorrect, allocate a ZERO mark. 
    Max (4) 

3.5.3 Best investment option 

  • Compound interest√√ (2)
    Motivation
    Compound interest yields a higher interest of R7 632 than the simple interest/ Ronnete earns interest on interest accrued.√ (1)
    NOTE: Do not award marks for the motivation if the best investment option  was not identified.
    Max (3) 

3.6 Principles of Insurance 
Indemnification/Indemnity√√ 

  • Usually applies to short term insurance, as the insured is compensated for  specified/proven harm/loss.√
  • Insurer agrees to compensate the insured for damages/losses specified in the  insurance contract, in return for premiums paid by the insured to the insurer.√ 
  • Protects the insured against the specified event that may occur.√
  • Pay-outs from insurance companies/insurer will only be made; if there is proof that  the specified event took place/if the insured can prove the amount of the loss/  damage.√ 
  • The amount of indemnification/compensation is limited to the amount of provable  loss/damage, even if the amount in the policy/insurance contract is higher.√
  • The insured must be placed in the same position as before the occurrence of the  loss/damage/The insured may not profit from insurance.√
  • Any other relevant answer related to indemnification/indemnity as a principle of  insurance. 

Principle (2) 
Discussion (1) 
Sub max (3)

Security/Certainty√√ 

  • Applies to long-term insurance where the insurer undertakes to pay out an agreed  upon amount in the event of loss of life.√ 
  • A predetermined amount will be paid out when the insured reaches a pre determined age/or gets injured due to a predetermined event.√ 
  • Aims to provide financial security to the insured at retirement/the dependents of  the deceased.√ 
  • Any other relevant answer related to security/certainty as a principle of insurance. 

Principle (2) 
 Discussion (1) 
 Sub max (3) 

Utmost good faith√√ 

  • Insured has to be honest in supplying details when entering in an insurance  contract.√
  • Both parties/insurer and insured must disclose all relevant facts.√ 
  • Insured must disclose everything that may affect the extent of the risk.√ 
  • Details/Information supplied when claiming should be accurate/true.√
  • Any other relevant answer related to utmost good faith as a principle of  insurance.  

Principle (2) 
Discussion (1) 
Sub max (3) 

Insurable interest√√  

  • Insured must prove that he/she will suffer a financial loss if the insured object is  damaged/lost/ceases to exist.√ 
  •  An insurable interest must be expressed in financial terms.√ 
  • Insured must have a legal relationship with the insured object in the contract.√
  • Any other relevant answer related to insurable interest as a principle of insurance.

Principle (2)  
Discussion (1)  
Sub max (3)  

NOTE: Mark the first TWO (2) only.
Max (6) 
3.7 Type of visual aid 
3.7.1 Hand-outs/flyers/brochures √√ (2) 
Motivation 

  • Hard copies of his plans were distributed for future reference.√ (1)
    NOTE: Do not award marks for motivation if the visual aid was incorrectly  identified.
    Max (3)

3.7.2 Impact of hand-outs/flyers/brochures 
Positives 

  • Meaningful hand-outs may be handed out at the start of the presentation√ to  attract attention/encourage participation.√ 
  • Notes/Hard copies of the slide presentation can be distributed at the end of the  presentation√ as a reminder of the key facts of the presentation.√
  • Extra information, e.g. contact details/price lists may be handed out√ to promote  the services of the business.√
  • Useful information for improving the next presentation may be obtained√, when  the audience completes feedback questionnaires after the presentation.√
  • It is easy to update handouts√ with recent information or developments.√
  • Notes may be compared with electronic slides√ to validate the accuracy.√
  • Any other relevant answer related to the positive impact of handouts/flyers/ brochures as a visual aid. 

AND/OR 
Negatives 

  • Hand-outs cannot be combined with audio material√, so it only focuses on the  visual aspects of support material.√
  • Handing out material at the start of the presentation√ may distract/lose audience attention.√ 
  • As it only summarises key information√, some details might be lost/omitted.√
  • Printed material is expensive√ and it is easy to lose hard copies.√
  • Increases the risk of unauthorised duplication/use√ of confidential information.√
  • Any other relevant answer related to the negative impact of handouts/flyers/ brochures as a visual aid.
    NOTE: Accept relevant facts if the visual aid was incorrectly identified as an  answer in QUESTION 3.7.1
    Max (8)

3.7.3 Responding to questions in a professional manner 

  • Sipho should stand throughout the feedback session.√√ 
  • Be polite/confident/courteous when responding to questions.√√ 
  • Ensure that each question/comment is clearly understood before responding/re phrase questions if uncertain.√√
  • He should first listen and then respond.√√ 
  • Provide feedback as soon as possible after the question was asked or after the  session.√√ 
  • Be direct/honest/sincere when responding to questions.√√ 
  • Use simple language to support the examples used in the presentation.√√
  • Keep answers short and to the point.√√ 
  • Apologise/acknowledge his errors/mistakes if pointed out by the audience.√√ 
  • Encourage questions from the audience/investors.√√ 
  • Always address the questions and not the person.√√ 
  • Acknowledge good questions to motivate audience to ask more questions.√√
  • Sipho should not involve himself in a debate when responding to questions.√√
  • He should not avoid the questions if he does not know the answer, but rather  promise feedback on it.√√ 
  • Address the full audience/investors and not only the person who posed the  question.√√ 
  • Any other relevant answer related to factors to be considered when responding  to questions in a professional manner.
    Max (8) [60] 

BREAKDOWN OF MARKS

QUESTION 3 

MARKS

3.1 

3

3.2 

4

3.3.1 

2

3.3.2 

8

3.4 

8

3.5.1 

3

3.5.2 

4

3.5.3 

3

3.6 

6

3.7.1 

3

3.7.2 

8

3.7.3 

8

TOTAL 

60

QUESTION 4: BUSINESS ROLES 
4.1 Causes of conflict in the workplace 

  • Differences in backgrounds/cultures/values/beliefs/language√ 
  • Limited business resources√ 
  • Different goals/objectives for group/individuals√ 
  •  Personality differences between group/individuals√ 
  •  Different opinions√ 
  • Unfair workload√ 
  • Ill-managed stress√ 
  • Unrealistic expectations√ 
  • Poor organisation/leadership/administrative procedures and systems√
  • Confusion about scheduling/deadlines√ 
  • Ignoring rules/procedures√ 
  • Misconduct/Unacceptable behaviour√ 
  • High/Intense competition/Competitiveness√ 
  • Poor communication√ 
  • Unclear responsibilities√ 
  • Distracted by personal objectives√ 
  • Constant changes in the workplace√ 
  • Unfair treatment of workers/Favouritism by management/Discrimination√
  • Lack of trust amongst workers√ 
  • Any other relevant answer related to causes of conflict in the workplace.

NOTE: 

  1. Mark the first FIVE (5) only.
  2. Accept examples (5x1) (5) 

4.2 Benefits of diversity in the workplace 

  • Workforce diversity improves the ability of a business to solve problems/  innovate/cultivate diverse markets.√√
  • Employees value each other's diversity and learn to connect/communicate  across lines of difference.√√ 
  • Diversity in the workforce improves morale/motivation.√√ 
  • Employees demonstrate greater loyalty to the business because they feel  respected/accepted/understood.√√
  • Diversified workforce can give businesses a competitive advantage, as they  can render better services.√√ 
  • Being respectful of differences/demonstrating diversity makes good business  sense/improves profitability.√√
  • Diverse businesses ensure that its policies/practices empower every employee  to perform at his/her full potential.√√ 
  • Stakeholders increasingly evaluate businesses on how they manage diversity  in the workplace.√√
  • Employees from different backgrounds can bring different perspectives to the  business.√√ 
  • A diversified workforce stimulates debate on new/improved ways of getting  things done.√√ 
  • Employees represent various groups and are therefore better able to recognise  customer needs and satisfy consumers.√√ 
  • Businesses with a diverse workforce are more likely to have a good public  image and attract more customers.√√ 
  • Any other relevant answer related to the benefits of diversity in the workplace.
    Max (8)

4.3.1 Stages of team development from the scenario 

STAGES OF TEAM DEVELOPMENT

MOTIVATION

1 Storming√√ 

Josiah always questioned the other member's  ideas and opinions as he wanted to be the team  leader.√

2 Norming/ Settling/ reconciliation√√

The team members eventually reached an  agreement and consensus on the way forward.√

Sub max (4) 

Sub max (2)

NOTE:

  1. Do not award marks for motivation if the stages of team development were incorrectly identified. 
  2. Award marks for the stages of team development even if the quote  is incomplete.
    Max (6) 

4.3.2 Other stages of team development 
Forming stage√√ 

  • Individuals gather information and impressions about each other and the scope  of the task and how to approach it.√
  • This is a comfortable stage to be in.√ 
  • People focus on being busy with routines, such as team organisation e.g. who  does what, when to meet each other√, etc. 
  • Any other relevant answer related to the forming stage of team development.

Stage (2) 
Explanation (1) 
Sub max (3) 

Performing stage/Working as a team towards a goal√√ 

  • Team members are aware of strategies and aims of the team.√
  • They have direction without interference from the leader.√ 
  • Processes and structures are set.√ 
  • Leaders delegate and oversee the processes and procedures.√
  • All members are now competent, autonomous and able to handle the decision making process without supervision.√ 
  •  Differences among members are appreciated and used to enhance the team's  performance.√ 
  • Any other relevant answer related to the performing stage/working as a team  towards a goal of team development. 

Stage (2) 
Explanation (1) 
Sub max (3) 

Adjourning/Mourning stage√√ 

  • The focus is on the completion of the task/ending the project.√ 
  • Breaking up the team may be traumatic as team members may find it difficult to  perform as individuals once again.√ 
  • All tasks need to be completed before the team finally dissolves.√
  • Any other relevant answer related to the adjourning/mourning stage of team  development 

Stage (2) 
Explanation (1) 
Sub max (3)

NOTE:

  1. Mark the first THREE (3) only. 
  2. Do not allocate marks for Storming/ Norming as identified in  Question 4.3.1
    Max (9) 

4.4 Advantages of creative thinking in the workplace 

  • Better/Unique/Unconventional ideas/solutions√ are generated.√
  • May give the business a competitive advantage√ if unusual/unique solutions/  ideas/strategies are implemented.√
  • Complex business problems√ may be solved.√
  • Productivity increases√ as management/employees may quickly generate  multiple ideas which utilises time and money more effectively.√ 
  • Managers/Employees have more confidence√ as they can live up to their full  potential.√
  • Managers will be better leaders√ as they will be able to handle/manage  change(s) positively and creatively.√ 
  • Managers/Employees can develop a completely new outlook√, which may be  applied to any task(s) they may do.√ 
  • Leads to more positive attitudes√ as managers/employees feel that they have  contributed towards problem solving.√
  • Improves motivation√ amongst staff members.√
  • Managers/Employees have a feeling of great accomplishment√ and they will not  resist/obstruct the process once they solved a problem/contributed towards the  success of the business.√
  • Management/employees may keep up√ with fast changing technology.√
  • Stimulates initiative from employees/managers√, as they are continuously  pushed out of their comfort zone.√ 
  • Creativity may lead to new inventions√ which improves the general standard of  living.√
  • Any other relevant answer related to the advantages of creative thinking in the  workplace.
    Max (8) 

4.5 Application of the force-field analysis technique 

  • Describe the current situation/problem√ and the desired situation.√
  • List all driving/pros and restraining/cons forces√ that will support and resist  change.√ 
  • Allocate a score to each force√ using a numerical scale, where 1 is weak and 5  is strong.√ 
  • Weigh up the positives and negatives√ then decide if the project is viable.√
  • Choose the force√ with the highest score as the solution.√ 
  • If the project is viable√, find ways to increase the forces for change.√
  • Identify priorities√ and develop an action plan.√ 
  • Any other relevant answer related to the application of the force field analysis technique when solving complex business problems.
    Max (6)

4.6 Difficult personalities 
4.6.1 Types of personalities from the scenario 

EMPLOYEES 

TYPE OF DIFFICULT  PERSONALITY

MOTIVATION

Albert 

Expert √√ 

A well-experienced employee in the  transport industry, refuses to take  instructions from management.√

Njabulo 

Aggressive√√ 

The supervisor at LSS is always arguing and fighting with clients.√

 

Sub max (4) 

Sub max (2)

NOTE: Do not award marks for the motivation if the type of difficult  personality was incorrectly identified.
Max (6) 
4.6.2 Dealing with difficult personalities identified from the scenario 

Type of difficult personality

Strategy to deal with a difficult personality

 Expert 

  • Be firm and assertive.√√
  • Do not accuse them of being incorrect and do not get  caught in their game.√√
  • Know your facts.√√
  • Any other relevant strategy related to dealing with an  expert.
    Sub max (2)

Aggressive 

  • Allow them time to speak and blow off steam.√√ 
  • Be firm, but do not attack them.√√ 
  • Do not allow them to be hostile towards others.√√
  • Any other relevant strategy related to dealing with an  aggressive person.
    Sub max (2)

NOTE: 

  1. Mark ONLY the FIRST strategy for each type of difficult personality.
  2. Strategies must be linked to the correct identified type of  personality in QUESTION 4.6.1. 
  3. Award marks for strategies that are based on the motivation from  the scenario. 
  4. The type of personality may be in any order.
    Max (4) 

4.7 Ways to promote social rights in the workplace 

  • Businesses should ensure that employees have access to clean water/social  security.√√
  • Encourage employees/Provide opportunities for skills training/basic education.√√ 
  • Register workers with UIF to provide adequate protection in the event of  unemployment/illness.√√
  • Encourage employees to participate in special events, e.g. World Aids day.√√
  • Provide health care services by establishing site clinics to give employees  access to basic medical examinations.√√
  • Any other relevant suggestion related to ways businesses could promote social  rights in the workplace.
    NOTE: Do not accept ways that promote human and/or economic rights.
    Max (8)  [60]

BREAKDOWN OF MARKS 

QUESTION 4 

MARKS

4.1 

5

4.2 

8

4.3.1 

6

4.3.2 

9

4.4 

8

4.5 

6

4.6.1 

6

4.6.2 

4

4.7 

8

TOTAL 

60

QUESTION 5: BUSINESS OPERATIONS 
5.1 Sources of internal recruitment 

  • Internal e-mails/Intranet/web sites to staff√
  • Word of mouth√
  • Business newsletter/circulars√ 
  • Internal/management referrals√ 
  • Notice board of the business√ 
  • Internal bulletins√
  • Recommendation of current employees√ 
  • Head hunting within the business/organisational database.√ 
  • Any other relevant answer related to sources of internal recruitment.
    NOTE: Mark the first FOUR (4) only. (4x1) (4) 

5.2 Purpose of induction 

  •  Introduce new employees to management/colleagues to establish relationships  with fellow colleagues at different levels.√√ 
  • Create opportunities for new employees to experience/explore different  departments.√√ 
  • Explain safety regulations and rules, so that new employees will understand their  role/responsibilities in this regard.√√ 
  • Communicate information about the products/services.√√ 
  • Allow new employees the opportunity to ask questions that will put them at  ease/reduce insecurity/anxiety/fear.√√ 
  • Make new employees feel welcome by introducing them to their physical work  space.√√ 
  • Give new employees a tour/information about the layout of the building/office.√√
  • Improve skills through in-service training.√√ 
  • Familiarise new employees with the organisational structure/their supervisors.√√
  • Ensure that employees understand their roles/responsibilities so that they will be  more efficient/productive.√√ 
  • Communicate business policies regarding ethical/professional  conduct/procedures/ employment contract/conditions of employment√√, etc.
  • Any other relevant answer related to the purpose of induction as a human  resources activity.
    Max (8)

5.3 Interview 
5.3.1 Role of the interviewer and interviewee/applicant from the scenario 

ROLE 

QUOTES

Interviewer/Elzette

1. Candidates were allocated the same amount of time.√ 2. Their responses were recorded.√

Interviewee/ Candidates

1. All candidates showed confidence.√ 
2. Asked clarity-seeking questions.√

NOTE: Do not award marks for responses that are not quoted from the  scenario.
Max (4) 
5.3.2 Role of the interviewer/Elzette when preparing for an interview

  • The interviewer/Elzette should develop a core set of questions√ based on the  skills/knowledge/ ability required.√
  • She should check/read the application/verify the CV of every candidate√ for  anything that may need to be explained.√ 
  • Book and prepare the venue√ for the interview.√ 
  • Set the interview date√ and ensure that all interviews take place on the same  date, if possible.√
  • Inform all shortlisted candidates√ about the date and place of the interview.√ 
  • Plan the programme for the interview√ and determine the time that should be  allocated to each candidate. √ 
  • Notify all panel members conducting the interview√ about the date and place of  the interview.√ 
  • Any other relevant answer related to the role of the interviewer/Elzette when  preparing for an interview.
    Max (8) 

5.4 Differences between job description and job specification 

Job description 

Job specification

Describes duties/responsibilities/ of  a specific job/ Summary √of the  nature/type of the job.√

Describes the minimum acceptable  personal qualities/skills/qualifications√  needed for the job.√

Written description of the job√ and  its requirements.√

Written description of specific  qualifications/skills/experience√  needed for the job.√

Describes key performance areas tasks for a specific job√ e.g. job title/ duties/ working  conditions/ locations of the place of  work/ relationship of the job with  other jobs in the business√, etc.

Describes key requirements for the  person who will fill the position√, e.g.  formal qualifications/willingness to  travel/work unusual hours√, etc.

Any other relevant answer related  to job description 

Any other relevant answer related to  job specification 

Sub max (4) 

Sub max (4)

NOTE:

  1. The answer does not have to be in tabular format. 
  2. The differences must be clear but not linked. 
  3. Award a maximum of FOUR (4) marks if the differences are not  clear/Mark either job description or job specification.
  4. Award ONE mark for EACH example of job description and job  specification.
    Max (8)

5.5 Total Quality Management 
5.5.1 TQM elements 

TQM ELEMENTS 

MOTIVATION

1. Continuous improvement to processes and systems.√√

They often upgrade their production process  to stay ahead of their competitors.√

2. Total client/customer  satisfaction.√√

Customers are always requested to provide  feedback about their products.√

Sub max (4) 

Sub max (2)

NOTE: Do not award marks for the motivation if the TQM element was incorrectly identified. 
Max (6) 
5.5.2 Impact of continuous improvement to processes and systems on large  businesses 
Positives 

  • SLL have more resources√ to check on quality performance in each unit.√
  • Enough capital resources are available√ for new equipment required for  processes and systems.√
  • SLL have a person dedicated√ to the improvement of processes and systems.√
  • Willing to take risk on/try new processes and systems√ because they are able to  absorb the impact of losing money.√
  • They can afford to use the services of the quality circles√ to stay ahead of their  competitors.√
  • Any other relevant answer related to the positive impact of continuous  improvement to processes and systems on large businesses/SLL. 

AND/OR 
Negatives 

  • Large scale manufacturing√ can complicate quality control.√ 
  • Systems and processes take time and effort to implement in SLL√ as  communication/buy-in may delay the process.√
  • Risk of changing parts of the business√ that are actually working well.√
  • Not all negative feedback from employees and customers is going to be  accurate√, which may result in incorrect/unnecessary changes to systems and  processes.√
  • Any other relevant answer related to the negative impact of continuous improvement to processes and systems on large businesses/SLL. 

OR 
Impact of total client/customer satisfaction on large businesses 
Positives 

  • SLL uses market research/customer surveys√ to measure/ monitor customer  satisfaction/analyse customers' needs.√ 
  • Continuously promote√ a positive company image.√
  • May achieve a state of total customer satisfaction, if businesses follow sound  business practices√ that incorporate all stakeholders.√ 
  • Strive to understand and fulfil customer expectations√ by aligning cross functional teams across critical processes.√ 
  • Ensures that cross-functional teams understand its core competencies√ and  develop/strengthen it.√
  • May lead to higher customer retention/loyalty√ and businesses may be able to  charge higher prices.√
  • SLL may be able to gain access√ to the global market.√
  • May lead to increased√ competitiveness/profitability.√
  • Any other relevant answer related to the positives impact of total client/customer  satisfaction on large businesses/SLL. 

AND/OR 
Negatives 

  • SLL employees who seldom come into contact with customers√ often do not  have a clear idea of what will satisfy their needs.√ 
  • Monopolistic companies have an increased bargaining power√ so they do not  necessarily have to please customers.√
  • Not all employees√ may be involved/committed to total client satisfaction.√
  • Any other relevant answer related to the negative impact of total client/customer  satisfaction on large businesses/SLL. 

NOTE:

  1. Mark the FIRST TQM element. 
  2. Award marks for similar responses if the TQM element was   incorrectly identified in Question 5.5.1
    Max (8) 

5.6 Impact of TQM if poorly implemented by businesses 

  • Setting unrealistic deadlines√ that may not be achieved.√
  • Employees may not be adequately trained√ resulting in poor quality products.√
  • Decline in productivity√, because of stoppages.√ 
  • Businesses may not be able to make necessary changes of products/services√  to satisfy the needs of customers.√
  • Business reputation/image may suffer√ because of poor quality/defective goods.√ 
  • Customers will have many alternatives to choose from√ and the impact could be  devastating to businesses.√
  • Investors might withdraw investment√, if there is a decline in profits.√ 
  • Decline in sales√ as more goods are returned by unhappy customers.√
  • High staff turnover√, because of poor skills development.√
  • Undocumented/Uncontrolled quality control systems/processes√ could result in  errors/ deviations from pre-set quality standards.√
  • Any other relevant answer related to the impact of TQM if poorly implemented by  businesses. 
    Max (6) 

5.7 Benefits of a good quality management system 

  • Effective customer services are rendered, resulting in increased customer  satisfaction.√√ 
  • Time and resources are used efficiently.√√ 
  • Productivity increases through proper time management/using high quality  resources.√√
  • Products/Services are constantly improved resulting in increased levels of  customer satisfaction.√√ 
  • Vision/Mission/Business goals may be achieved.√√ 
  • Business has a competitive advantage over its competitors.√√ 
  •  Regular training will continuously improve the quality of employees' skills/  knowledge.√√ 
  •  Employers and employees will have a healthy working relationship resulting in  happy/productive workers.√√
  • Increased market share/more customers improve profitability.√√
  • Improves business image as there are less defects/returns.√√
  • Any other relevant answer related to benefits of a good quality management  system.
    Max (8)  [60] 

BREAKDOWN OF MARKS 

QUESTION 5 

MARKS

5.1 

4

5.2 

8

5.3.1 

4

5.3.2 

8

5.4 

8

5.5.1 

6

5.5.2 

8

5.6 

6

5.7 

8

TOTAL 

60

QUESTION 6: MISCELLANEOUS TOPICS 
BUSINESS ENVIRONMENT 
6.1 PESTLE elements 
6.1.1 Social√√ (2)
6.1.2 Environmental√√ (2)
6.1.3 Technological√√ (2)
6.1.4 Economical√√ (2) 
6.2 Advantages of intensive strategies for businesses 

  • Increased market share√ reduces the business's vulnerability to actions of  competitors.√
  • Increase in sales/income/profitability√ due to variety of advertising campaigns.√ 
  • Improved service delivery√ may improve business image.√ 
  • Businesses may have more control√ over the prices of products/services.√
  • Gain customer loyalty√ through effective promotion campaigns.√ 
  • Decrease in prices√ may influence customers to buy more products.√
  • Regular sales to existing customers√ may increase.√ 
  • Eliminate competitors√ and dominate market prices.√ 
  • Enables the business to focus on markets/well researched quality products√ that  satisfy the needs of customers.√ 
  • Any other relevant answer related to the advantages of intensive strategies for  businesses.
    Max (6) 

BUSINESS VENTURES 
6.3 Importance of state owned companies/SOC 

  • Profits may be used√ to finance other state departments/reduce taxes.√
  • Generates income√ to finance social programmes.√ 
  • Jobs are created√ for all skills levels.√ 
  • Offer essential services√ which may not be offered by the private sector.√
  • Prices are kept reasonable√/create sound competition with the private sector to  make services affordable to more citizens.√ 
  • Wasteful duplication of services√ is eliminated.√ 
  • Planning can be coordinated√ through central control.√ 
  • Any other relevant answer related to the importance of state owned companies/SOC.
    Max (6) 

6.4 Insurance 
6.4.1 Average clause√√ Max (2) 
6.4.2 Meaning of average clause 

  •  A stipulation set by the insurer which is applicable when property/goods√ is  under insured/insured for less than its market value.√
  • The insurer will pay for insured loss/damages√ in proportion to the insured  value.√ 
  • This means that the insured is responsible for√ a part of the risk that is not  insured.√ 
  • Any other relevant answer related to the meaning of the average clause.
    Max (4) 

6.4.3 Advantages of insurance for businesses 

  • Transfers the risk from the business/insured to an insurance company/insurer.√√
  • Transfer of risk is subject to the terms and conditions of the insurance  contract.√√ 
  • Protects the business against theft/loss of stock and/or damages caused by  natural disasters such as floods, storm damage√√, etc.
  • Businesses will be compensated for insurable losses, e.g. destruction of  property through fire.√√ 
  • Businesses assets, e.g. vehicles/equipment/buildings need to be insured against  damage and/or theft.√√ 
  • Businesses are protected against the loss of earnings, e.g. strikes by employees  which result in losses worth millions.√√ 
  • Protects businesses against dishonest employees.√√
  • Life insurance can be taken on the life of partners in a partnership to prevent  unexpected loss of capital.√√ 
  • Should the services of key personnel be lost due to accidents/death, the  proceeds of an insurance policy can be paid out to the business/beneficiaries.√√
  • Replacement costs for damaged machinery/equipment are very high, therefore  insurance can reduce/cover such costs.√√
  • Protects businesses from claims made by members of the public for damages  that the business is responsible for.√√ 
  • Protects businesses against losses due to death of a debtor.√√ 
  • Any other relevant answer related to the advantages of insurance for businesses
    NOTE: Mark the first TWO (2) only. (2 x 2) (4)

BUSINESS ROLES  
6.5 Examples of unfair advertising 

  •  Giving goods deceptive names/False labelling.√ 
  • Selling second hand goods as new goods.√ 
  • Exaggerating the merits of the product.√ 
  • Using fine print to conceal important information. √ 
  • Criticising competitor's goods.√ 
  • Exploitations of children's lack of understanding.√ 
  • Misuse of people with disabilities in advertisements.√ 
  • Advertising that encourages violence.√ 
  • Advertising goods at a very low price to attract customers but when the  customer reaches the store the item is no longer there/Bait and switch.√
  • Advertising a product showing additional items, but do not clearly state that  these items are excluded.√ 
  • Any other relevant examples of unfair advertising. 

NOTE: Mark the first FOUR (4) only. (4 x 1) (4)
6.6 Problem-solving techniques 
6.6.1 Empty chair√√ 
6.6.2 Nominal group√√ 
6.6.3 Delphi√√ 
Max (6) 
6.7 Strategies to deal with pricing of goods in rural areas 

  • A business may lobby with other businesses in the area to convince government  to improve infrastructure in the rural area.√√ 
  • Charge fair/market related prices for goods and services.√√ 
  •  Avoid unethical business practices to attract customer loyalty.√√ 
  • Investigate cost-effective ways of transporting products/Hire a large truck to  combine deliveries to shop-owners in the same area.√√ 
  • Work together with suppliers to share delivery costs to remote rural areas.√√
  • Any other relevant strategy related to dealing with pricing of goods in rural areas.
    Max (6)

BUSINESS OPERATIONS 
6.8 Meaning of placement 

  • Selected candidates are placed where they will function optimally√ and add  value to the business. √ 
  • A specific job is assigned√ to the selected candidate.√ 
  • The qualifications/skills/personality of the selected candidate is matched√ with  the requirements of the job.√ 
  • Any other relevant answer related to placement as a human resources activity. NOTE: Do not allocate marks for a placement procedure.
    Max (2) 

6.9 Salary determination methods 
Piecemeal√√ 

  • Workers are paid according to the number of items/units produced/action  performed.√
  • Workers are not remunerated for the number of hours worked, regardless of  how long it takes them to make the items.√ 
  • Mostly used in factories particularly in the textile/technology industries.√
  • Any other relevant answer related to piecemeal as a salary determination  method. 

Method (2) 
Explanation (1) 
Sub max (3) 

Time-related√√ 

  • Workers are paid for the amount of time they spend at work/on a task.√
  • Workers with the same experience/qualifications are paid on salary scales  regardless of the amount of work done.√
  • Many private and public sector businesses use this method.√ 
  • Any other relevant answer related to time-related as a salary determination  method. 

Method (2) 
Explanation (1) 
Sub max (3) 
Max (6) 

NOTE: Mark the first TWO (2) only.
6.10 Aspects that should be included in an employment contract

  • Personal details of the employee.√√
  • Details of the business/employer e.g. name/address√√, etc. 
  • Job title/Position√√ 
  • Job description e.g. duties/ working conditions.√√
  • Job specification e.g. formal qualifications/willingness to travel.√√ 
  • Date of employment/commencement of employment.√√ 
  • Place where employee will spend most of his/her working time.√√ 
  • Hours of work, e.g. normal time/overtime.√√ 
  • Remuneration, e.g. weekly or monthly pay.√√ 
  • Benefits/Fringe benefits/Perks/Allowances.√√ 
  • Leave, e.g. sick/maternity/annual/adoption leave.√√ 
  • Employee deductions (compulsory/non-compulsory).√√ 
  • Period of contract/Details of termination.√√ 
  • Probation period.√√ 
  • Signatures of both the employer and employee.√√ 
  • List of documents that form part of the contract, e.g. appointment letter/code of  conduct/ethics.√√ 
  • Disciplinary policy, e.g. rules and disciplinary procedure for unacceptable  behaviour.√√ 
  • Any other relevant answer related to aspects that should be included in an employment contract.
    Max (6)  [60] 

BREAKDOWN OF MARKS 

QUESTION 6 

MARKS

6.1 

8

6.2 

6

6.3 

6

6.4.1 

2

6.4.2 

4

6.4.3 

4

6.5 

4

6.6 

6

6.7 

6

6.8 

2

6.9 

6

6.10 

6

TOTAL 

60

TOTAL SECTION B: 180

SECTION C 
Mark the first TWO (2) questions only. 
QUESTION 7: BUSINESS ENVIRONMENTS (LEGISLATION) 
7.1 Introduction 

  •  The CPA was introduced to redress the economic inequalities of the past.√
  • CPA promotes/advances the social and economic welfare of consumers in  South Africa.√ 
  • The CPA applies to the promotion/sales of all goods and services.√
  • The National Credit Act deals mainly with regulating consumer credit.√
  • The reason for the establishment of the NCA was to curb the high levels of  consumer debts.√ 
  • The NCA allows consumers to make informed decisions before buying on  credit.√
  • Any relevant introduction related to the CPA and NCA. (Any 2 x 1) (2) 

7.2 Purpose of the Consumer Protection Act 

  •  Promotes fair/accessible and sustainable places for people to sell their  products.√√ 
  • Establishes national standards to protect consumers.√√ 
  • Provides guidelines for better consumer information and to prohibit unfair  business practices.√√ 
  • Promotes responsible consumer behaviour.√√ 
  • Promotes consistent laws relating to consumer transaction and agreement.√√
  • Establishes a National Consumer Commission (NCC).√√ 
  • Ensures that consumers have access to information they need to make informed  choices.√√ 
  • Promotes the rights and full participation of historically disadvantaged individuals  as consumers.√√ 
  • Ensures that consumers are not misled/deceived by suppliers of goods/  services.√√ 
  • Promotes consumer safety by protecting them from hazardous products/  services.√√ 
  • Strengthens a culture of consumer rights and responsibilities.√√ 
  • Empowers consumers to take legal action if their rights are not upheld.√√
  • Protects consumers against contracts that include unfair terms which limit the  liability of suppliers.√√ 
  • Protects consumers against unscrupulous businesses such as fly-by-night  franchisors.√√ 
  • Allows for consumers and businesses to resolve disputes fairly/effectively. √√ 
  • Any other relevant answer related to the purpose of the Consumer Protection  Act.
    Max (10)

7.3 Impact of CPA on businesses 
7.3.1 Positives 

  • Enables businesses to resolve disputes fairly√ through the National Consumer Commission/Consumer Court/Industrial ombudsmen.√
  • Businesses may build a good image√ when they ensure that consumer rights  are not violated.√ 
  • May gain consumer loyalty√, if they comply with CPA.√ 
  • Businesses are less likely to have court cases against them√ for consumer  rights violations.√ 
  • Businesses may be protected√ if they are regarded as consumers.√
  • They may be safeguarded√ from dishonest competitors.√ 
  • Prevents larger businesses√ from undermining smaller ones.√ 
  • Any other relevant answer related to the positive impact of CPA on businesses.

AND/OR 
Negatives 

  •  Businesses have to replace/repair faulty items/refund money√ if the fault occurs  within six months after purchase.√
  • Confidential business information√ may become available to competitors.√
  • Consumers can take advantage of businesses√ and return goods when it is not  necessary to do so.√
  • Processes and procedures required by CPA√ can be expensive and time  consuming.√ 
  • Businesses may feel unnecessarily burdened√ by legal processes.√
  • Penalties for non-compliance√ may be very high.√ 
  • Staff need to be trained/Legal experts need to be consulted√, which can increase  costs.√ 
  • Many business documents need to be simplified/revamped at extra cost√, as  consumers have a right to receive contracts in simple/understandable language.√ 
  • Administration costs increase√, as legal contracts need to be worded in plain  language/pitched at the level of the consumer.√
  • Businesses may need insurance√ against claims from consumers√/Provisions in  the Act increase the risks√ for unforeseen claims and law suits.√
  • Supply chain management in stock levels will have to change√, as defective  goods have to be replaced within six months at the request of the customer.√
  • Information technology systems need to be improved√ as the retailer must keep  more detailed records of interactions with consumers/be able to report to the  National Consumer Commission.√
  • Any other relevant answer related to the negative impact of CPA on businesses.  NOTE: Allocate marks for positives and/or negatives.
    Max (12)

7.4 Consumer rights 
7.4.1 Right to privacy and confidentiality 

  • Businesses should allow consumers to exercise the right to:
    • stop/restrict unwanted direct marketing.√√ 
    • object to unwanted promotional e-mails/telesales.√√
    • lodge complaints about the sharing of their personal details.√√
  • Any other relevant answer related to the consumer's right to privacy and  confidentiality.
    Sub max (6) 

7.4.2 Right to information about products and agreements 

  • Business should ensure that: 
    • contracts and agreements are in plain language and easy to  understand.√√
    • display prices which are fully inclusive disclosing all costs.√√ 
    • consumers are allowed to request the unit and bulk price of the same  product.√√ 
    • consumers pay the lower price, if two prices for the same product are  displayed.√√ 
    • the labelling of products and trade descriptions/relevant information is  correct.√√ 
  • Any other relevant answer related to the consumer's right to information about  product and agreements.
    Sub max (6) 

7.4.3 Right to fair value/good quality and safety 

  •  Business should allow consumers a right to:
    • demand quality service or goods.√√
    • return faulty items if the fault occurs within six months after purchasing  the item.√√ 
    • receive an implied warranty or a written warranty.√√
    • reject goods that are not the same as the sample marketed.√√ 
    • cancel/renew fixed-term agreements.√√ 
    • to be informed about hazardous/dangerous products.√√ 
  • Any other relevant answer related to the consumer's right to fair value/good  quality and safety.
    Sub max (6) Max (18) 

7.5 Penalties/consequences for non-compliance with the NCA

  • The court may declare the granting of credit by the business reckless and may  order consumers not to repay the credit/or part thereof to the business.√√
  • The business may not demand payment, sue or attach the clients/consumers  salaries/assets.√√
  • The business may not charge any fee/interest/other charges under that specific  credit agreement.√√ 
  • The National Credit Regulator may impose a fine/penalty on the business for  non-compliance.√√ 
  • The business will bear all costs of removing the negative information of clients/  consumers who were blacklisted as a result of reckless lending.√√ 
  • Any other relevant answer related to the penalties/consequencesor non compliance with the NCA.
    Max (6)

7.6 Conclusion  

  • The CPA forces both businesses and consumers to act responsibly when doing  business.√√
  • The CPA applies to every transaction involving buying and selling of goods and  services.√√ 
  • The NCA promotes/allows responsible lending by businesses and eliminates  reckless borrowing by consumers.√√ 
  • Businesses who grant credit recklessly may be deregistered as an accredited  service provider.√√ 
  • Any other relevant conclusion related to CPA and NCA. (Any 1 x 2) (2)  [40] 

QUESTION 7: BREAKDOWN OF MARK ALLOCATION 

DETAILS 

MAXIMUM 

TOTAL

Introduction 

2

Max 

32

Purpose of CPA 

10

Impact of CPA on businesses 

12

Rights of consumers 

18

Penalties/consequences for non compliance with the NCA 

6

Conclusion 

2

INSIGHT

 

8

Layout 

2

Analysis/Interpretation 

2

Synthesis 

2

Originality/Examples 

2

TOTAL MARKS 

 

40

LASO – For each component: 

  • Allocate 2 marks if all requirements are met.
  • Allocate 1 mark if some requirements are met.
  • Allocate 0 marks where requirements are not met at all.

QUESTION 8: BUSINESS VENTURES (INVESTMENTS & FORMS OF OWNERSHIP) 
8.1 Introduction 

  •  The JSE is a formal market comprising of all the public companies that have  been listed.√
  • Various services are offered to listed companies by the JSE.√ 
  • Preference shares can be considered as a viable investment option as  investors have various options to choose from.√ 
  • The National Treasury of South Africa issues RSA Retail Savings Bonds/  Government Retail Bonds to the general public.√ 
  • A partnership is formed by a minimum of two partners and the maximum  number is unlimited.√ 
  • Any other relevant introduction related to the JSE/RSA Retail Savings  Bonds/Government Retail Bonds/preference shares/partnership. (2x1) (2) 

8.2 Functions of the JSE 

  •  Gives opportunities to financial institutions such as insurance companies to  invest their funds in shares.√√
  • Serves as a barometer/indicator of economic conditions in South Africa.√√
  • Keeps investors informed on share prices by publishing the share prices daily.√√
  • Acts as a link between investors and public companies.√√ 
  • Shares are valued and assessed by experts.√√ 
  • Small investors are invited to take part in the economy of the country through  the buying/selling of shares.√√ 
  • Venture capital market is made available on the open market.√√ 
  • Orderly market for securities serves as a disciplined market for securities.√√
  • Encourages new investments.√√ 
  • Mobilises the funds of insurance companies and other institutions.√√
  • Raises primary capital.√√ 
  • Regulates the market for dealing with shares.√√ 
  • Plans, researches and advises on investment possibilities.√√ 
  • Ensures that the market operates in a transparent manner.√√ 
  • Provides protection for investors.√√ 
  • Encourages short-term investment.√√ 
  • Facilitates electronic trading of shares/STRATE.√√ 
  • Any other relevant answer related to the functions of the Johannesburg  Securities Exchange (JSE).
    Max (10) 

8.3 Types of preference  

  • Participating preference shares√√ 

Shareholders:  

  • are guaranteed minimum√ fixed dividends.√
  • are entitled to share in any√ surplus company profits.√ 
  • receive higher dividends√ when the company performs well.√ 
  • have preferential rights over ordinary shares√ on repayment when the company  closes down.√ 
  • Any other relevant answer related to participating preference shares.

Identification (2) 
Description (2) 
Sub max (4)

Non-participating preference shares 
Shareholders: 

  • receive an amount equal to the initial investment√ plus accrued and unpaid  dividends upon liquidation.√
  • do not have right to participate in profits√ after equity shareholders have been  paid a dividend.√ 
  • will not get extra dividend√ in case of surplus profits.√
  • entitled to receive only a fixed rate of dividend√ every year.√
  • Any other relevant answer related to non-participating preference shares. 

Identification (2) 
Description (2) 
Sub max (4) 

Cumulative preference shares√√ 

  •  Shareholders are compensated for past dividends that were not paid out√ when  profits were too low to declare dividends√/Receive dividends not√ previously  paid out.√ 
  • Any other relevant answer related to cumulative preference shares.

Identification (2) 
Description (2) 
Sub max (4) 

Non-cumulative preference shares√√ 

  • Shareholders are not compensated for past dividends√ that were not paid out  when profits were low.√
  • Any other relevant answer related to non-cumulative preference shares.

Identification (2) 
Description (2) 
Sub max (4) 

Redeemable preference shares√√ 

  • Shares can be redeemed/bought back at the option of the issuing company√,  either at a fixed price on a specified date/over a certain period of time.√
  • Any other relevant answer related to redeemable preference shares.

Identification (2) 
Description (2) 
Sub max (4) 

Non-redeemable preference shares√√ 

  •  Shares are only bought back when the company closes down√ for reasons other  than bankruptcy.√
  • Any other relevant answer related to non-redeemable preference shares.

Identification (2) 
Description (2) 
Sub max (4)

Convertible preference shares√√ 

  • Shares can be converted into a predetermined number of ordinary shares√ on  the date specified when the preference shares were issued.√
  • Any other relevant answer related to convertible preference shares.

Identification (2) 
Description (2) 
Sub max (4) 

Non-convertible preference shares√√ 

  • Shares cannot be converted√ into ordinary shares.√
  • Any other relevant answer related to non-convertible preference shares.

Identification (2) 
Description (2) 
Sub max (4) 

NOTE: Mark the first FOUR (4) only. 

Types (8) 
Description (8) 
Max (16) 

8.4 Impact of RSA Retail Savings Bonds/Government Retail Bonds on investors
Positives 

  • Guaranteed returns√, as interest rate is fixed for the whole investment period.√ 
  • Interest rates are market related √ and attract more investors.√ 
  • Interest can be received√ twice a year.√ 
  • Investment may be easily accessible√, as cash may be withdrawn after the first  twelve months.√ 
  • Low risk/Safe investment√, as it is invested with the South African Government  which cannot be liquidated.√ 
  • It is an affordable type of investment√ for all levels of income earners including  pensioners.√ 
  • Retail bonds are easily/conveniently obtained√ electronically/from any Post  Office/directly from National Treasury.√ 
  • No charges/costs/commissions payable√ on this type of investment.√ 
  • Interest is usually higher√ than on fixed deposits.√ 
  • Retail bonds are listed√ on the capital bond markets/on the JSE.√ 
  • Investors younger than 18 years/Minors may invest with the help of a legal  guardian√, which encourages saving from a young age.√ 
  • Any other relevant answer related to the positive impact of RSA Retail Savings  Bonds/Government Retail Bonds on investors. 

AND/OR 
Negatives 

  •  Retail bonds cannot be ceded to banks√ as security for obtaining loans.√
  • A minimum of R1 000 must be invested√, which may be difficult for some small  investors to accumulate.√ 
  • Retail bonds are not freely transferable√ amongst investors.√ 
  • Investors need to have valid SA identification/should be older than 18 years√  which may discourage foreigners/young people to invest.√ 
  •  Penalties are charged for early withdrawals√, if the savings is less than  12 months old.√ 
  • Any other relevant answer related to the negative impact of RSA Retail Savings  Bonds/Government Retail Bonds on investors.
    Max (12)

8.5 Success and/or failure factors of a partnership 

 

SUCCESS AND/OR FAILURE

8.5.1 

Manage 

ment

Peter and Teko should be actively  involved in management and may  use the ideas of other partners.√√

Decision making can be time  consuming as Peter and Teko have to  be in agreement.√√

 They should have access to each  other's expertise when difficult  decisions have to be made.√√

Some management tasks may be  neglected, as one partner may leave it  to others to complete.√√

Peter and Teko should decide  who will be actively involved in  management or rather appoint  competent manager.√√ 

Peter and Teko may disagree on how  to run the business, which may lead to  tension between them.√√ 

 

They are agents of the partnership  and a bad management decision of a  partner may be forced onto others.√√

 

Different personalities/opinions could  lead to conflict/ disagreements.√√

Any other relevant answer related  to the contribution of  management to the success of a  partnership.

Any other relevant answer related to  the contribution of management to the  failure of a partnership.

Sub max (4)

 

SUCCESS AND/OR FAILURE

8.5.2 

Legisla 

tion

Easy and cheap to establish, as  partners must draw up  partnership agreement.√√

Peter and Teko have unlimited liability  as they are jointly and severally liable  for the debts of the business.√√

Peter and Teko should be motivated to make a success  because their personal  possessions are at risk.√√

If one partner dies or retires, the  remaining partner needs to draw up a  new agreement.√√

No regulatory requirements  regarding the name of the  business.√√

Oral agreements between Peter and  Teko can cause conflict between  partners.√√

Only subjected to the provisions  of the Income Tax Act as  compared to companies.√√

A partnership is not a legal entity and  cannot sue or be sued.√√

Any other relevant answer related  to the contribution of legislation to  the success of a partnership. 

Any other relevant answer related to  the contribution of legislation to the  failure of a partnership.

Sub max (4)

NOTE:

  1. The answers do not have to be in tabular format. 
  2. The success and/or failure factors must relate to the partnership.
    Max (8)

8.6 Conclusion 

  • Listed companies on the JSE will get more exposure to possible investors.√√
  • Businesses should invest extra cash to generate more income rather than  leaving it in the businesses' current account.√√
  • Dividends paid out on preference shares will attract more people to invest in a  company.√√
  • Anyone can invest in RSA Retail Savings Bonds as it only requires a minimum  amount of one thousand rand.√√
  • Various factors must be considered before choosing a form of ownership.√√
  • Any other relevant conclusion related to the JSE/RSA Retail Savings  Bonds/Government Retail Bonds/preference shares/partnership. (1x2) (2)   [40] 

QUESTION 8: BREAKDOWN OF MARK ALLOCATION 

DETAILS 

MAXIMUM 

TOTAL

Introduction 

2

Max 

32

Functions of the JSE. 

10

Types of preference shares. 

16

Impact of RSA Retail Savings  Bonds/Government Retail  Bonds.

12

Contribution of a success  and/or failure factors to a  partnership.

8

Conclusion 

2

INSIGHT

 

8

Layout 

2

Analysis/Interpretation 

2

Synthesis 

2

Originality/Examples 

2

TOTAL MARKS 

 

40

LASO – For each component: 

  • Allocate 2 marks if all requirements are met.
  • Allocate 1 mark if only some of the requirements are met.
  • Allocate 0 marks where requirements are not met at all. 

QUESTION 9: BUSINESS ROLES (SOCIAL RESPONSIBILITY, CSR & CSI) 
9.1 Introduction  

  • Businesses are corporate citizens and therefore have a responsibility towards  society.√
  • Corporate Social Responsibility/CSR is the way a business conducts its  operations ethically and morally, regarding the use of human, physical and  financial resources.√
  • CSR programmes and CSI projects should be relevant to the needs of  communities.√ 
  • They should address socio-economic issues that affect business operations.√ 
  • Businesses should not only focus on profits but also on the wellbeing of the  community in which they operate.√
  • Any other relevant introduction related to CSR/CSI/Socio-economic  issues/Contribution of time and efforts in improving the wellbeing of the  community.  (2x1)(2) 

9.2 Differences between Corporate Social Responsibility (CSR) and Corporate  Social Investment (CSI) 

CSR 

CSI

The intention is to change√ business  practices.√

Actively committing money and  resources√ to uplift the community.√

Focus is on increasing image√ and  profits.√

Focus is on the upliftment of  community√ without return on  investment.√

Ensure that all internal CSI policies/  practices√ include stakeholders' interests/environmental issues.√

Ensure that CSI projects are  relevant√ to the needs of  communities.√

Often intended as a marketing√ initiative.√

Intended to benefit and uplift  communities√ through social  development.√

Projects are usually linked to the  business√, e.g. a manufacturing  business offering to train the  unemployed.√

Projects are external to the business√ and have a strong developmental  approach.√

Any other relevant answer related to  Corporate Social Responsibility.

Any other relevant answer related to  Corporate Social Investment.

Sub max (6) 

Sub max (6)

NOTE:

  • The answer does not have to be in tabular format. 
  • The distinction must be clear but does not have to be linked.
  • Award a maximum of SIX (6) marks if the differences are not clear/  Mark either CSR or CSI only.
    Max (12)

9.3 Impact of CSR on communities 
Positives 

  • Socio-economic issues are attended to√ which will improve the welfare of the  community.√
  • Training opportunities in the community increase the possibility√ of  appointments of members of the community.√ 
  • Implementing developmental programmes in the community√ improves  entrepreneurial skills of communities.√
  • Provision of bursaries√ encourages communities to improve their skills.√
  • The standard of living of the community √ is uplifted√/quality of life of  communities√ is improved.√
  • Better educational facilities are established√ in poor communities.√
  • Improve the health of communities√ by providing medical infrastructure.√
  • Provide rehabilitation centres to community members√ who have addiction  problems.√ 
  • Any other relevant answer related to the positive impact of CSR on  communities. 

AND/OR 
Negatives 

  • Businesses are not always equipped√ to address social problems.√
  • Communities tend to be dependent on CSR programmes√ and struggle to take  their own initiatives.√
  • Distribution of scarce resources to selected beneficiaries in the community √  may cause problems such as discrimination.√ 
  • Some businesses only participate in CSR initiatives to raise profit√ and do not  really care for the community in which they operate.√
  • Businesses cannot meet √ the longer term needs of the society√/Business  cannot deliver√ sustainable CSR programmes.√
  • The benefits of the programmes may not filter √ to the intended persons within  the community.√
  • Spending money on CSR programmes means the business has to recover  expenses√ through higher prices which have a negative impact on the  economy.√
  • Businesses tend to focus on CSR programmes that does not √ directly benefit  the community.√ 
  • Less money is available for community projects √ during unfavourable  economic conditions.√ 
  • Consumers are not easily convinced√ that a business is acting in the best  interest of the community and the environment.√
  • A business often appears to benefit more from the CSR expenditure√ than the  perceived benefits to the communities.√ 
  • Any other relevant answer related to the negative impact of CSR on communities.
    Max (12)

9.4 Strategies to deal with HIV/Aids & unemployment 
9.4.1 Strategies to deal with HIV/Aids 

  • Counselling programmes/train counsellors to provide infected and affected  persons/employees.√√
  • Develop counselling programmes for infected/affected persons/employees.√√
  • Conduct workshops on HIV/Aids programmes/campaigns.√√ 
  • Roll out anti-retroviral (ARV) treatment programmes (ART) for the infected  employees.√√ 
  • Encourage employees to join HIV/Aids support groups.√√ 
  • Develop strategies to deal with stigma and discrimination.√√ 
  • Participate in the HIV/Aids prevention programmes implemented in the  community.√√ 
  • Support non-governmental organisational/community based organisation/NPC  HIV/Aids initiatives.√√ 
  • Any other relevant strategies on how businesses could deal with HIV/Aids as a  socio-economic issue.
    Sub Max (6) 

9.4.2 Strategies to deal with unemployment 

  •  Provide skills development programmes through learnerships.√√
  • Offer bursaries to the community to improve the level of education.√√
  • Create jobs for members of the community.√√ 
  • Provide entrepreneurial programmes that can promote self-employment.√√
  • Support existing small businesses to create more employment opportunities.√√
  • Any other relevant strategies on how businesses could deal with unemployment  as a socio-economic issue.
    Sub max (6) Max (12) 

9.5 Contribution of time and effort in improving the wellbeing of the community

  • Business should improve the general quality of life of their community, e.g.  invest in education√√, etc. 
  • Ensure that the product they supply do not harm consumers/the  environment.√√ 
  • Refrain from engaging in illegal/harmful practices such as employing children  under the legal age/selling illegal substances√√, etc. 
  • Make ethically correct business decisions, e.g. not engage in unfair/misleading  advertising√√, etc. 
  • Donate money to a community project/run a project to uplift the community.√√
  • Provide recreational/sport facilities to promote social cohesion/healthy  activities.√√ 
  • Any other relevant answer related to ways in which businesses could contribute  time and effort to improve the wellbeing of the community. 

NOTE: 

  1. Mark the first FIVE (5) only. 
  2.  Do NOT allocate marks for HIV/Aids and unemployment   strategies. (5 x 2) (10)

9.6 Conclusion  

  • Corporate Social Responsibility is an obligation required by law and benefits  both business and society.√√
  • CSI projects allow businesses to influence people's lives in many ways.√√
  • Businesses use CSI programmes to comply with laws and ethical business  practices.√√ 
  • Businesses have the responsibility to deal with socio-economic issues that can  affect profitability and growth.√√ 
  • CSI projects must be aimed at increasing the wellbeing of communities.√√
  • Any other relevant conclusion related to CSR/CSI/Socio-economic issues/ Contribution of time and efforts in improving the wellbeing of the community. (1x2) (2)  [40] 

QUESTION 9: BREAKDOWN OF MARK ALLOCATION 

DETAILS 

MAXIMUM 

TOTAL

Introduction 

2

Max 

32

Differences between CSR &  CSI 

12

Impact of CSR on communities 

12

Strategies to manage HIV/Aids  & unemployment 

12

Time and effort to improve the  wellbeing of community 

10

Conclusion 

2

INSIGHT

 

8

Layout 

2

Analysis/Interpretation 

2

Synthesis 

2

Originality/Examples 

2

TOTAL MARKS 

 

40

LASO – For each component: 

  • Allocate 2 marks if all requirements are met.
  • Allocate 1 mark if only some of the requirements are met.
  • Allocate 0 marks where requirements are not met at all. 

QUESTION 10: BUSINESS OPERATIONS (QUALITY OF PERFORMANCE)) 
10.1 Introduction 

  • Quality is the ability of a product/service to satisfy specific needs of consumers.√
  • Manufactured goods must be quality assured throughout the production cycle.√
  • Total quality relates to products that totally satisfy consumers' needs and  expectations in every respect on a continuous basis.√ 
  • Quality management should not just be an inspection process, but become part  of the culture of the business.√
  • The activities of all business functions must be properly managed to ensure that  all departments adhere to the same quality standards.√
  • TQM helps to design, produce /provide quality products at a lower cost.√
  • Any other relevant introduction related to quality concepts/general management function/production function/impact of TQM on the reduction of the cost of  quality. (2x1) (2) 

10.2 Meaning of quality assurance 

  • Checks carried out during√ and after the production process.√
  • Ensure that required standards√ have been met at every stage of the process.√
  • Processes put in place to ensure that the quality of products/services/ systems  adhere to pre-set standards√ with minimal defects/delays/short- comings.√
  • Ensuring that every process is aimed to get the product 'right the first time'√ and  prevent mistakes from happening.√
  • Any other relevant answer related to the meaning of quality assurance. Max (6) 

10.3 Distinction between quality management and quality performance 

QUALITY MANAGEMENT 

QUALITY PERFORMANCE

Techniques/tools√ used to design/  improve the quality of a product.√

Total performance of each  department measured√ against the  specified standards.√

Can be used for accountability√ within  each of the business functions.√

Can be obtained if all departments  work together√ towards the same  quality standards.√

Aims to ensure that the quality of  goods/services√ is consistent√/Focuses  on the means√ to achieve consistency.√

Quality is measured√ through  physical product/statistical output of  processes/surveys of the users  and/or buyers of goods/services.√

Any other relevant answer related to  quality management.

Any other relevant answer related to  quality performance.

Sub max (4) 

Sub max (4)

NOTE: 

  1. The answer does not have to be in tabular format, 
  2.  The distinction must be clear but does not have to be linked. 
  3. Award a maximum of FOUR (4) marks if the distinction is not  clear/ Mark either quality management or quality performance  only.
    Max (8)

10.4 Business functions 
10.4.1 Quality indicators of the general management function 

  • Develop/Implement/Monitor effective strategic plans.√√
  • Efficient organisation/allocation of business resources to provide for the  successful achievement of long-term and short-term plans.√√
  • Structured standards and norms should be in place so that control mechanisms  can be implemented.√√
  • Learn about/understand changes in the business environment on an on-going  basis.√√
  • Effectively communicate shared vision, mission and values.√√
  • Set direction and establish priorities for their business.√√
  • Be prepared to set an example of the behaviour that is expected from  employees in terms of ethics as well as productivity.√√
  • Be proactive and always seeks to improve competitive advantage over  competitors.√√
  • Ensure that all departments/the business meet their deadlines/targets.√√
  • Any other relevant answer related to the quality indicators of the general  management function.
    Sub max (10) 

10.4.2 Quality indicators of the production function 

  • Provide high quality services/products according to specifications.√√
  • The production/operating processes of a business should be done correctly  through proper production planning and control.√√
  • Products and services should be produced at the lowest possible cost to allow  for profit maximisation.√√
  • Businesses should clearly communicate the roles and responsibilities to the  production workforce.√√
  • Products must meet customers' requirements by being safe, reliable and  durable.√√
  • Businesses should have good after-sales services and warrantees.√√
  • Empower workers so that they can take pride in their workmanship.√√
  • Get accreditation from the SABS/ISO 9001 to ensure that quality products are  being produced.√√
  • Specify the product or service standards and take note of the factors that  consumers use to judge quality.√√
  • Monitor processes and find the root causes of production problems.√√ 
  • Implement quality control systems to ensure that quality building products are  consistently being produced.√√ 
  • Utilise machines and equipment optimally.√√
  • Accurately calculate the production costs.√√
  • Select the appropriate production system e.g. mass/batch/jobbing.√√
  • Any other relevant answer related to the quality indicators of the production  function.
    Sub max (10)  Max (20)

10.5 Impact of TQM on the reduction of the cost of quality 

  • Introduce quality circles to discuss ways of improving the quality of work/ workmanship.√√ 
  • Schedule activities to eliminate duplication of tasks.√√
  • Share responsibility for quality output amongst management and workers.√√
  • Train employees at all levels, so that everyone understands their role in quality  management.√√ 
  • Develop work systems that empower employees to find new ways of improving  quality.√√
  • Work closely with suppliers to improve the quality of raw materials/inputs.√√
  • Improve communication about quality challenges/deviations, so that everyone  can learn from experience.√√
  • Reduce investment on expensive, but ineffective inspection procedures in the  production process.√√
  • Implement pro-active maintenance programmes for equipment/machinery to  reduce/eliminate breakdowns.√√ 
  • Any other relevant answer related to the impact of TQM on the reduction of the  cost of quality.
    Max (12) 

10.6 Conclusion 

  • Quality is important for a business to be sustainable.√√
  • Every business should have a quality management system that ensures that all  systems and processes are carried out correctly and safely.√√
  • All the business functions contribute to the success or failure of a business and  should therefore have quality controls.√√
  • It is important that businesses have a proper system for managing quality, e.g.  TQM which will reduce cost and increase profits.√√ 
  • Any other relevant conclusion related to quality concepts/general management function/production function/impact of TQM on the reduction of the cost of  quality. (1x2) (2) [40]

QUESTION 10: BREAKDOWN OF MARK ALLOCATION 

DETAILS 

MAXIMUM 

TOTAL

Introduction 

2

Max 

32

Meaning of quality assurance 

6

Distinction between quality  management and quality  performance.

8

Quality indicators of the general  management and production  functions.

20

How TQM can reduce cost of  quality 

12

Conclusion 

2

INSIGHT

 

8

Layout 

2

Analysis/Interpretation 

2

Synthesis 

2

Originality/Examples 

2

TOTAL MARKS 

 

40

LASO – For each component: 

  • Allocate 2 marks if all requirements are met.
  • Allocate 1 mark if some requirements are met.
  • Allocate 0 marks where requirements are not met at all. 

TOTAL SECTION C: 80 
GRAND TOTAL: 300

Last modified on Wednesday, 15 September 2021 07:04