NATIONAL

SENIOR CERTIFICATE

GRADE 12

JUNE 2023

BUSINESS STUDIES P1

MARKS: 150

TIME: 2 hours

This question paper consists of 9 pages.

2 BUSINESS STUDIES P1 (EC/JUNE 2023)

INSTRUCTIONS AND INFORMATION

Read the following instructions carefully before answering the questions.

1. This question paper consists of THREE sections and covers TWO main topics.

SECTION A: COMPULSORY
SECTION B: Consists of THREE questions.
Answer any TWO of the three questions in this section.
SECTION C: Consists of TWO questions.
Answer any ONE of the two questions in this section.

2. Read the instructions for each question carefully and take note of what is required.

Note that ONLY the answers to the first TWO questions selected in SECTION B and
the answers to the FIRST question selected in SECTION C will be marked.

3. Number the answers correctly according to the numbering system used in this
question paper. NO marks will be awarded for answers that are numbered
incorrectly.

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

5. Use the mark allocation and nature of each question to determine the length and
depth of an answer.

6. Use the table below as a guide for mark and time allocation when answering each
question.

TIME
SECTION QUESTION MARKS
(minutes)
A: Objective-type questions
COMPULSORY 1 30 20

B: THREE direct/indirect type 2 40

questions
CHOICE: 3 40 70
Answer any TWO.
4 40

C: TWO essay-type questions 5 40 30

CHOICE:
Answer any ONE. 6 40
TOTAL 150 120

7. Begin the answer to EACH question on a NEW page, e.g. QUESTION 1 – new page,
QUESTION 2 – new page.

8. You may use a non-programmable calculator.

9. Write neatly and legibly.

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(EC/JUNE 2023) BUSINESS STUDIES P1 3

SECTION A (COMPULSORY)

QUESTION 1

1.1 Various options are provided as possible answers to the following questions.
Choose the answer and write only the letter (A–D) next to the question number
(1.1.1 to 1.1.5) in the ANSWER BOOK, for example 1.1.6 D.

1.1.1 This Act promotes diversity in the workplace by ensuring people of

diverse backgrounds are appointed:

A Basic Conditions of Employment (BCEA), 1997 (Act 75 of 1997)

B Labour Relations Act (LRA), 1995 (Act 66 of 1995)
C Employment Equity Act (EEA), 1998 (Act 55 of 1998)
D Consumer Protection Act (CPA), 2008 (Act 68 of 2008)

1.1.2 David Traders deals with challenges of the … factor as a PESTLE

element by borrowing money from Wealth Bank when interest rates
are favourable.

A economic
B political
C social
D legal

1.1.3 Blow Mines operates in the … sector as they specialise in the

extraction of coal.

A tertiary
B primary
C economic
D secondary

1.1.4 The process of matching an employee’s skills and abilities with the
requirements of a job:

A Employment
B Selection
C Recruitment
D Placement

1.1.5 The … function is responsible for developing effective strategic plans.

A general management
B public relations
C financial
D production
(5 x 2) (10)

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4 BUSINESS STUDIES P1 (EC/JUNE 2023)

1.2 Complete the following statements by using the word(s) provided in the list
below. Write only the word(s) next to the question number (1.2.1 to 1.2.5) in
the ANSWER BOOK.

quality circles; dismissal; PESTLE; two; resignation; three;

no; total quality management; SWOT; some

1.2.1 Employees can work a maximum of … hours overtime per day.

1.2.2 Lumo Lights has … control over political change.

1.2.3 Andile Dealers compiled a … analysis to identify challenges in their

internal environment.

1.2.4 The termination of an employment contract due to misconduct is

known as …

1.2.5 Businesses use … to satisfy customers’ needs beyond their

expectations.
(5 x 2) (10)

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(EC/JUNE 2023) BUSINESS STUDIES P1 5

1.3 Choose a description from COLUMN B that matches a term in COLUMN A.

Write only the letter (A–J) next to the question number (1.3.1 to 1.3.5) in the
ANSWER BOOK, for example 1.3.6 K.

COLUMN A COLUMN B
1.3.1 Broad-Based Black A can be used for accountability in each of
Economic the business functions
Empowerment Act

1.3.2 Concentric B implements change on a small scale to

diversification improve the quality of products

1.3.3 Job analysis C benefited only a few previously

disadvantaged people

1.3.4 Act as needed D business adds a new product that is

related to existing products

1.3.5 Quality E the process of introducing new employees

performance to the business aspects

F benefited a broader base of previously

disadvantaged people

G implements change on a wider scale to

improve the quality of products

H description of the duties and the specific

qualifications needed for the position

I business adds a new product that is

unrelated to existing products

J can be obtained if all business functions

work together
(5 x 2) (10)

TOTAL SECTION A: 30

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6 BUSINESS STUDIES P1 (EC/JUNE 2023)

SECTION B
Answer ANY TWO questions in this section.
NOTE: Clearly indicate the QUESTION NUMBER of each question that you choose.
The answer to EACH question must start on a NEW page, e.g.
QUESTION 2 on a new page, QUESTION 3 on a NEW page.
QUESTION 2: BUSINESS ENVIRONMENTS
2.1 Name any FOUR pillars of the Broad-Based Black Economic Empowerment Act
(BBBEE), 2003 (Act 53 of 2003). (4)
2.2 Outline the rights of consumers in terms of the National Credit Act (NCA), 2005
(Act 34 of 2005). (6)
2.3 Read the scenario below and answer the questions that follow.

FRESH VEGS (FV)

Fresh Vegs specialises in the selling of fruit and vegetables. Large scale flooding
in the area had damaged their storeroom. The employees of FV requested huge
salary increases. Monster Fruits also opened a new branch across the street
from Fresh Vegs.

Use the table below as a GUIDE to answer QUESTION 2.3.1 and 2.3.2.

CHALLENGES (2.3.1) BUSINESS ENVIRONMENTS (2.3.2)

1.
2.
3.
2.3.1 Quote THREE challenges for FV from the scenario above. (3)
2.3.2 Classify FV’s challenges according to the THREE business
environments. (3)
2.4 Explain right to disclosure and information as one of the consumer rights in terms
of the Consumer Protection Act (CPA), 2008 (Act 68 of 2008). (6)
2.5 Read the scenario below and answer the questions that follow.

ROYAL MOTORS (RM)

Royal Motors manufacture hybrid vehicles. Every accident in the factory that
results in employee injuries, is reported by RM's management.

2.5.1 Identify the Act that RM is complying with in the scenario above. (2)
2.5.2 Explain the penalties that RM may face for non-compliance to the Act
identified in QUESTION 2.5.1. (6)
2.6 Discuss how businesses could apply the threat of substitution as part of Porter’s
Five Forces model to analyse their position in the market environment. (4)
2.7 Evaluate the impact of the Basic Conditions of Employment (BCEA), 1997 (Act
75 of 1997) on businesses. (6)
[40]

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(EC/JUNE 2023) BUSINESS STUDIES P1 7

QUESTION 3: BUSINESS OPERATIONS

3.1 Name THREE sources of external recruitment. (3)

3.2 Outline the selection procedure. (6)

3.3 Read the scenario below and answer the questions that follow.

STAR HAIR SALON (SHS)

Star Hair Salon offers various hair treatments to their clients. The employees
at SHS are paid R200 for each treatment they do.

3.3.1 Identify the salary determination methods used by SHS to

remunerate their employees. (2)

3.3.2 Explain ONE other salary determination methods that businesses

could use to remunerate their employees. (3)

3.4 Discuss the benefits of induction for businesses. (6)

3.5 Outline the advantages of a good quality management system. (4)

3.6 Read the scenario below and answer the questions that follow.

CHIPS TRADING (CT)

Chips Trading is a large retail business and uses an aggressive advertising

campaign to increase their market share. CT places orders on time and
follows up on a regular basis to ensure that their stock is delivered on time.
Management maintains stock control systems to ensure the security of
stock.

3.6.1 Quote TWO quality indicators of the purchasing function from the
scenario above. (2)

3.6.2 Explain other quality indicators of the purchasing function. (4)

3.7 Differentiate between quality control and quality assurance. (4)

3.8 Advise large businesses on the advantages of total client/customer

satisfaction as a total quality management (TQM) element. (6)
[40]

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8 BUSINESS STUDIES P1 (EC/JUNE 2023)

QUESTION 4: MISCELLANEOUS TOPICS

BUSINESS ENVIRONMENTS
4.1 State any TWO types of integration strategies. (2)

4.2 Briefly outline the role of SETAs in supporting the Skills Developments Act,
1998 (Act 97 of 1998). (4)
4.3 Read the scenario below and answer the questions that follow.

SILVER DOORS (SD)

Silver Doors specialises is the manufacturing of aluminium doors in the
Eastern Cape. Recently they opened a new branch in the Free State.

4.3.1 Identify the type of intensive strategy used by Silver Doors in the
scenario above. (2)
4.3.2 Explain the advantages of intensive strategies. (6)

4.4 Suggest ways in which businesses could comply with the Labour Relations
Act (LRA), 1995 (Act 66 of 1995). (6)

BUSINESS OPERATIONS
4.5 State any FOUR examples of fringe benefits. (4)
4.6 Outline the advantages of internal recruitment for businesses. (6)
4.7 Read the scenario below and answer the question that follows.

TILE LIMITED (TL)

Tile Limited is a large business that specialises in the production of high
quality ceramic tiles. TL conducts regular checks to avoid replacing
machinery unnecessarily. They can afford to have systems in place to
prevent defects in their tiles.

4.7.1 Identify TWO total quality management (TQM) elements applied by

TL. Motivate your answer by quoting from the scenario above.

Use the table below as a GUIDE to answer QUESTION 4.7.1.

TQM ELEMENTS MOTIVATIONS

1.
2. (6)

4.8 Suggest ways in which total quality management (TQM) can reduce the
cost of quality. (4)
[40]

TOTAL SECTION B: 80

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(EC/JUNE 2023) BUSINESS STUDIES P1 9

SECTION C

Answer ANY ONE question in this section.

NOTE: Clearly indicate the QUESTION NUMBER of the chosen question. The
answer to the question must start on a NEW page, e.g. QUESTION 5 on a
NEW page OR QUESTION 6 on a NEW page.

QUESTION 5: BUSINESS ENVIRONMENTS (BUSINESS STRATEGIES)

Businesses use the strategic management process to address challenges posed by

their environment. Many businesses implement different types of defensive
strategies and others apply the PESTLE factors to identify challenges in the macro
environment. Businesses need to understand how to evaluate their strategies.

Write an essay on business strategies in which you include the following aspects:

• Outline the strategic management process

• Discuss THREE types of defensive strategies
• Explain how the following PESTLE factors pose challenges to businesses:
o Technological
o Legal
• Advise businesses on the steps they should consider when evaluating strategies [40]

QUESTION 6: BUSINESS OPERATIONS (HUMAN RESOURCES FUNCTION)

The human resources manager ensures that the correct recruitment procedure be
followed and plays an important role during the interview process. The successful
candidate will be offered fringe benefits and businesses must understand the link
between salary determination and the Basic Conditions of Employment Act (BCEA),
1997 (Act 75 of 1997).

Write an essay on the human resources activities in which you address the following
aspects:

• Outline the recruitment procedure

• Explain the role of the interviewer during the interview
• Discuss the impact of fringe benefits on businesses
• Advise businesses on the link between salary determination and the Basic
Conditions of the Employment Act [40]

TOTAL SECTION C: 40
GRAND TOTAL: 150

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