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NATIONAL
SENIOR CERTIFICATE
SENIOR SERTIFIKAAT
GRADE 11

NOVEMBER 2023

BUSINESS STUDIES P1
MARKING GUIDELINE

MARKS: 150

This marking guideline consists of 36 pages.

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NOTES TO MARKERS

1. PREAMBLE

The notes to markers are provided for quality assurance purposes to

ensure the following:

(a) Fairness, consistency and reliability in the standard of marking

(b) Facilitate the moderation of candidates' scripts at the different
levels
(c) Streamline the marking process considering the broad spectrum of
markers across the country
(d) Implement appropriate measures in the teaching, learning and
assessment of the subject at schools/institutions of learning

For marking and moderation the following colours are recommended:

Marking: Red
School moderation: Green
District moderation: Orange
Provincial moderation: Purple

2. Candidates’ responses must be in full sentences for SECTIONS B and C.

However, this would depend on the nature of the question.

3. A comprehensive marking guideline has 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
guideline
• Comes from another credible source
• Original
• A different approach is used
NOTE: There is only ONE correct answer in SECTION A.

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.

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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. Correct numbering of answers to questions or sub questions is
recommended in SECTIONS A and B. However, if the numbering is
incorrect, follow the sequence of the candidate’s responses. Candidates will
be penalised if the latter is not clear.
10. No additional credit must be given for repetition of facts. Indicate with an ‘R’.
11. The differentiation between ‘evaluate’ and ‘critically evaluate’ can be
explained as follows:
11.1 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.’ √
11.2 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.

12. The allocation of marks must be informed by the nature of the question,
cognitive verb used, mark allocation in the marking guideline and the context
of each question.

Cognitive verbs, such as:

12. Advise, name, state, outline, motivate, recommend, suggest, (list not
1 exhaustive) do not usually require much depth in candidates’
responses. Therefore, the mark allocation for each statement/answer
appears at the end.

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12.2 Define, describe, explain, discuss, elaborate, distinguish,

differentiate, compare, tabulate, 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.

13. Mark only the FIRST answer where candidates offer more than one answer
for SECTION B and C questions that require one answer.

14. SECTION B

14.1 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.

NOTE: 1. This applies only to questions where the number of facts is

specified.
2. The above also applies to responses in SECTION C (where
applicable).

14.2 If two facts are written in one sentence, award the candidate FULL
credit. Point 14.1 above still applies.

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

brainstorm this to finalise alternative answers. You can consult the
subject advisor for approval.

14.4 Use of the cognitive verbs and allocation of marks:

14.4.1 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 guideline)
• Explanation 1 mark (two marks will be allocated in
SECTION C)
The ‘fact’ and ‘explanation’ are given separately in the
marking guideline to facilitate mark allocation.

14.4.2 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
guideline.

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14.5 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).

15. SECTION C

15.1 The breakdown of the mark allocation for the essays is as follows:

Introduction Maximum:
Content
Conclusion 32
Insight 8
TOTAL 40

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15.2 Insight consists of the following components:

Layout/Structure Is there an introduction, a body, and a conclusion? 2

Analysis and Is the candidate able to break down the question into 2
interpretation 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’)
Synthesis Are there relevant decisions/facts/responses made based on 2
the questions?

Marks to be allocated using this guide:

Option 1: Only relevant facts: 2 marks (No ‘-S’)
Where a candidate answers 50% or more (two
to four sub-questions) 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: Some relevant facts: 1 mark (One ‘-S’)
Where a candidate answers less than 50%
(only one sub-question) 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: Some relevant facts: 1 mark (One ‘-S’)
Where a candidate writes FOUR questions,
but one sub-question of the question with no
relevant facts; one ‘-S’ appears in the left
margin. Award a maximum of ONE (1) mark
for synthesis.
Option 4: No relevant facts: 0 marks (Two ‘-S’)
Where a candidate answers less than 50%
(only one sub-question) of the question with no
relevant facts; two ‘-S’ appear in the left
margin. Award a ZERO mark for synthesis.
Originality Is there evidence of one or two examples, not older than two 2
(2) years that are based on recent information, current trends
and developments?
TOTAL FOR INSIGHT: 8
TOTAL MARKS FOR FACTS: 32
TOTAL MARKS FOR ESSAY (8 + 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.

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15.3 Indicate insight in the left-hand margin with a symbol e.g. (‘L, A, -S and/or
O’).

15.4 The breakdown of marks is indicated at the end of the suggested answer/
marking guideline to each question.

15.5 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 but continue reading for originality “O”.

15.6 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.)
S 2
A 2
S 2
O 2
TOTAL 40

15.7 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.)

15.8 If the candidate identifies/interprets the question INCORRECTLY, then

he/she may still obtain marks for layout.

15.9 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 guideline.

15.10 15.10.1 Award TWO marks for complete sentences. Award ONE mark
for phrases, incomplete sentences and vague answers.

15.10.2 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.

15.11 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.

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SECTION A

QUESTION 1

1.1 1.1.1 D √√
1.1.2 B √√
1.1.3 A √√
1.1.4 C √√
1.1.5 D √√
(5 x 2) (10)

1.2 1.2.1 demographics √√

1.2.2 no √√
1.2.3 go-slow √√
1.2.4 intermediaries √√
1.2.5 external √√
(5 x 2) (10)

1.3 1.3.1 D √√
1.3.2 J √√
1.3.3 I √√
1.3.4 B √√
1.3.5 C √√
(5 x 2) (10)

TOTAL SECTION A: 30

BREAKDOWN OF MARKS
QUESTION 1 MARKS
1.1 10
1.2 10
1.3 10
TOTAL 30

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SECTION B
Mark the answers to the FIRST TWO questions only.
QUESTION 2: BUSINESS ENVIRONMENTS

2.1 Components of the micro environment

- Vision, mission statement, goals and objectives √
- Organisational structure √
- Organisational resources √
- Organisational culture √
- Management and leadership √
- Eight business functions √
NOTE: Mark the first THREE (3) only. (3 x 1) (3)

2.2 Functions of trade unions

- Protecting their members against unfair labour practices in the
workplace. √√
- Empowering employees by educating them regarding their rights in the
workplace and how to apply these rights. √√
- Representing employees in meetings with their employers when they face
workplace grievances and disputes./Representing employees corporately
and individually. √√
- Negotiating/Influencing management for better working conditions, salary or
wages and other benefits to improve the standard of living for
workers./Improving the material benefits of their members. √√
- Protecting employees against from unfair dismissals and labour practices.√√
- Taking legal action on behalf of their members when necessary. √√
- Protecting/Advancing the interest of workers. √√
- Representing the interest of general society and minority groups through
media and negotiations. √√
- Influencing government decisions. √√
- Providing legal and financial advice. √√
- Providing benefits and educational facilities to its members. √√
- Supporting and promoting gender equality in the workplace. √√
- Protecting members in times of retrenchments and disciplinary hearings.√√
- Protecting the interest of their members during disciplinary procedures. √√
- Any other relevant answer related to the functions of trade unions.
Max. (6)

2.3 Ways businesses can form power relationships

2.3.1 Way business formed power relationship from the scenario

Persuasion of large investors √√ (2)

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2.3.2 ONE other way businesses can form power relationships

Strategic alliance/Partnership agreements √√
- Businesses form partnership agreements in order to benefit from
each other’s involvement. √
- These partnership alliances help parties involved to benefit in
infrastructure development and scarce skills. √
- These alliances are designed to build on the expertise of each
partner and on the way in which they complement each other. √
- Any other relevant answer related to strategic alliance/partnership
agreements as a way businesses can form power relationships.
Way (2)
Description (1)
Sub-max. (3)
Company representatives’ influence √√
- This representative fulfils an important function in trying to
persuade investors to invest in a particular business practice. √
- People will make decisions based on the company’s image,
personality, communication style and power of persuasion. √
- Businesses must invest time and energy to recruit the right person
for this job. √
- Any other relevant answer related to company representatives’
influence as a way businesses can form power relationships.

Way (2)
Description (1)
Sub-max. (3)

NOTE: 1. Mark the first ONE (1) only.

2. Do not award marks for ‘persuasion of large investors’.
Max. (3)

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2.4 Negative impact of strikes as a socio-economic issue on businesses
- Strike actions have a potential of jeopardising √ relations. √/May lead to an
unhealthy relationship √ between the employer/management and
employees. √
- It can also affect teamwork in the workplace √ in instances where not all
workers are in support of such industrial action. √
- Businesses suffer financial losses / √ due to low levels of productivity and
consumer confidence is adversely affected. √
- Strike actions may lead to production losses √ and decline in
sales/economic growth. √
- Businesses may be forced to close down operations √ after strike
actions. √
- May force businesses to retrench some of its skilled workers √ to recover
from losses. √
- Looting, destruction of business property/infrastructure √ and intimidation
of non-striking workers. √
- Employees can lose their pay √ with the ‘no work no pay’ rule applied by
the business. √
- Businesses has to hire employees to replace striking workers √ and
increases the training costs of new employees. √
- Businesses may lose market shares/customers to competitors √ during the
period of a strike. √
- The image/reputation of the business √ might be damaged. √/Scares off
potential investors. √
- The supplies of goods and services √ are interrupted. √
- Prices sometimes increase √ to offset the costs incurred by the strike. √
- Any other relevant answer related to the negative impact of strikes as a
socio-economic issue on businesses.
Max. (6)

2.5 Challenges of the business environment

2.5.1 Challenges of the market environment from the scenario

- KF is struggling to find a reliable provider of vegetables. √
- Two other food retailers have also opened in the same area. √

NOTE: 1. Mark the first TWO (2) only.

2. Only award marks for responses that are quoted from the
scenario.
(2 x 1) (2)

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2.5.2 Ways in which businesses can overcome competition in the

market
- Businesses must ensure that they produce unique/differentiated
goods or services √ for the target market to satisfy the customer
needs and wants. √
- Businesses need to provide more personalised services √ by
being responsive to their customer’s needs/wants/
expectations. √
- Goods/services must be priced lower √ than competitor’s
goods/services in the market. √
- Businesses must produce/sell high-quality/new goods/services√
that the customers might be interested in. √
- Create a positive image/publicity √ through regular
engagements in community development projects. √
- Businesses must improve on customer service√ and ensuring
client satisfaction. √
- Businesses must create a positive image/outlook √ by regularly
renovating their premises and improving their systems. √
- Businesses must undertake good marketing campaigns √ by
using promotional ideas such as posters or campaigns on social
media that will draw the attention of the target market. √
- Businesses must offer low-cost extras √ such as improved credit
terms and loyalty schemes. √
- Businesses must ensure that they have well-trained/
knowledgeable and dedicated employees √ that create a better
working atmosphere. √
- Keeping up with developments in the business sector, √ following
consumer trends/investing in new technology. √
- Any other relevant answer related to ways in which businesses
can overcome competition in the market.
Max. (6)

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2.6 2.6.1 Relationship between the primary, secondary and tertiary
sector
- The primary, secondary and tertiary sectors all work together √ to
create an economic chain of production. √
- The primary sector extracts raw materials, √ after which the
secondary sector transforms/processes the raw materials into
products. √
- The secondary sector depends on the primary sector √ for raw
materials and products. √
- Secondary sector needs the tertiary sector √ to sell their processed
or manufactured goods and also for services such as banks,
insurance, transport and communication. √
- The primary sector depends on the secondary sector √ for
manufactured goods such as machinery/equipment/fertilisers. √
- The primary sector is dependent on the tertiary sector√ for its
customer needs. √
- The primary sector depends on others in the primary sector √ for
raw materials/feed e.g. a farmer may require seeds from another
farm. √
- The secondary sector depends on other secondary industries √ for
manufactured products needed to be used in the manufacturing of
their product. √
- The tertiary sector depends on the primary sector √ for raw
materials that do not need processing by the secondary sector. √
- The tertiary sector depends on the secondary sector √ for
manufactured goods such as office machines/office
furniture/stationery. √
- Any other relevant answer related to the link between the
primary, secondary and tertiary sector.
Max. (6)

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2.7 Ways in which businesses can have a direct influence on the

environment
- Businesses need to be flexible by getting involved in research/
development so that they can continue to operate. √√
- Influencing their suppliers by signing long term contracts for their raw
materials at fixed prices. √√
- Influencing their customer base by creating new uses for a product, taking
customers away from competitors, finding new customers and convincing
them they need the new product. √√
- Influencing regulators through lobbying and bargaining and can influence
their owners using information contained in annual reports. √√
- Initiating bargaining sessions between management and unions. √√
- Influencing their owners using information contained in annual reports. √√
- Negotiate strategic alliance agreement through contractual
processes. √√
- Any other relevant answer related to ways in which businesses can have a
direct influence on the environment.
Max. (6)
[40]

BREAKDOWN OF MARKS
QUESTION 2 MARKS
2.1 3
2.2 6
2.3.1 2
2.3.2 3
2.4 6
2.5.1 2
2.5.2 6
2.6 6
2.7 6
TOTAL 40

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QUESTION 3: BUSINESS OPERATIONS
3.1 Quality control bodies
- South African Bureau of Standards/SABS √
- International Organisation for Standardisation/ISO √
- Quality circles √
NOTE: Mark the first TWO (2) only.
(2 x 1) (2)
3.2 Advantages of production planning
- Planning allows businesses to ensure that every machine and worker is
used to their full capacity and not left with nothing to do. √√
- A business can ensure that it has the correct amount of supplies and
stock/inventory control at a given time. √√
- Planning will prevent time from being wasted and will increase the number
of final products. √√
- The planning process involves quality checks, ensures that the correct
quality is reached, and that production time is decreased. √√
- Improved inventory control reduces wastage and unnecessary storage
cost. √√
- Any other relevant answer related to the advantages of production
planning.
Max. (4)

3.3 Distribution policy

3.3.1 Type of intermediary from the scenario
Retailers √√
3.3.2 Reasons why manufacturers may prefer to make use of indirect
distribution methods
- The experienced agents/intermediaries deal with customers, √
which allow businesses to focus on core issues. √
- Transportation and storage √ are taken care of by intermediaries. √
- There is no need to hire specialised staff √ to do sales
complaints. √
- Businesses do not have to deal √ with customer complaints. √
- Businesses enjoy the benefits of bulk orders √ from wholesalers. √
- Better market coverage is achieved √ with using intermediaries. √
- Intermediaries understand √ how the market operates. √
- Consumers are often spread across the country, √ distribution
needs to be widespread as well. √
- Indirect distribution does not require a large investment √ in
advertising. √
- Intermediaries sometimes provide credit to consumers, √ which will
help attract more consumers. √
- Any other relevant answer related to the reasons why manufacturers
may prefer to make use of indirect distribution methods.
Max. (6)

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3.4 Categories of consumer goods

Convenience goods √√
- Consumers are not willing to spend much effort on buying convenience
goods because they differ very little in terms of price, quality and the
satisfaction it provides to consumers. √
- These are low priced goods purchased by consumers without much
thought. √
- Example of convenience goods: bread, milk or soft drink. √
- Any other relevant answer related to convenience goods as a category of
consumer goods.
Consumer goods (2)
Description (1)
Sub-max. (3)

Shopping goods √√
- Shopping goods are more expensive than convenience goods. √
- Consumers do not buy them regularly. √
- They are prepared to spend a considerable amount of time and energy
going to various shops until they are sure that they are getting the best value
for their money. √
- Examples of shopping goods: television, motor vehicles or clothing. √
- Any other relevant answer related to shopping goods as a category of
consumer goods.
Consumer goods (2)
Description (1)
Sub-max. (3)

Speciality goods √√
- These goods usually have specific brand names. √
- Consumers know exactly what they want and are willing to search until they
find exactly what they are looking for. √
- Examples of speciality goods: jewellery or branded clothing. √
- Any other relevant answer related to speciality goods as a category of
consumer goods.
Consumer goods (2)
Description (1)
Sub-max. (3)

Services √√
- Services are not tangible. √
- Services are rendered by service providers to consumers. √
- Example of services: garden service, financial services or transportation
services. √
- Any other relevant answer related to services as a category of consumer
goods.
Consumer goods (2)
Description (1)
Sub-max. (3)

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Unsought goods√√
- Goods that consumers do not think of until the need for such products
arise. √
- Purchases of unsought goods may arise due to danger or fear of danger. √
- Examples are: funeral services, encyclopaedias’, fire extinguishers and
reference books. √
- Any other relevant answer related to unsought goods as a category of
consumer goods.
Consumer goods (2)
Description (1)
Sub-max. (3)
NOTE: Mark the first TWO (2) only.
Max. (6)

3.5 Purpose of advertising

- The purpose of advertising is explained by using √ the AIDA principles. √
- The AIDA principles consist of four key stages√ in the advertising process:√
o obtain the attention √ of a potential customer or consumer. √
o spark interest √ in the product or service. √
o develop the desire √ in the customer to have what is being offered. √
o induce action √ which may potentially lead to purchasing the product or
service. √
- Any other relevant answer related to the purpose of advertising.
Max. (4)

3.6 3.6.1 Components of the job analysis from the scenario

COMPONENTS OF THE JOB MOTIVATIONS

ANALYSIS
1. Job specification √√ They indicated that the person
should preferably have a diploma in
management. √
2. Job description √√ The purchasing manager will be
responsible for ordering stock and
liaising with suppliers. √
Sub-max. (4) Sub-max. (2)

NOTE: 1. Mark the first TWO (2) only.

2. The answer does not have to be in tabular format.
3. Award marks for the components of the job analysis even
if the motivation were incomplete.
4. Do not award marks for the motivations if the components
of the job analysis were incorrectly identified.
Max. (6)

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3.7 Difference between piecemeal and time-related salary determination

PIECEMEAL TIME-RELATED
- Workers are paid according to - -
Workers are paid according to the
the number √ of items/units amount of time/hours √ they spend at
produced / action performed. √ work/on a task. √
- Workers are not remunerated - Workers with the same experience/
for the number of hours qualifications √ are paid on salary
worked, √ regardless of how scales regardless of the amount of
long it takes them to make the work done. √
items. √
- Mostly used in factories√ - Many private and public sector
particularly in the textile/ businesses √ use this method. √
technology industries. √
- Any other relevant answer Any other relevant answer related to
related to piecemeal as a time-related as a salary determination
salary determination method. method.
Sub-max. (2) Sub-max. (2)

NOTE: 1. The answer does not have to be in tabular format.

2. The difference does not have to link, but must be clear.
3. Award a maximum of TWO (2) marks if the difference is
not clear/Mark either piecemeal or time-related salary
determination methods only.
Max. (4)

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3.8 Legal requirements of an employment contract
- Employment contract is an agreement between the employer and the
employee and is legally binding. √√
- Employer and employee must agree to any changes to the contract. √√
- Aspects of the employment contract can be renegotiated, during the course
of employment. √√
- No party may unilaterally change aspects of the employment contract. √√
- The employer and the new employee must both sign the contract. √√
- The employment contract should include a code of conduct and code of
ethics. √√
- The employer must explain the terms and conditions of the employment
contract to the employee. √√
- It may not contain any requirements that are in conflict with the BCEA. √√
- Conditions of employment/duties/responsibilities of the employees must be
stipulated clearly. √√
- The remuneration package/including benefits must be clearly indicated. √√
- All business policies, procedures and disciplinary codes/rules can form part
of the employment contract. √√
- The employer must allow the employee to thoroughly read through the
contract before it is signed. √√
- Any other relevant answer related to the legal requirements of the
employment contract.
Max. (6)
[40]

BREAKDOWN OF MARKS
QUESTION 3 MARKS
3.1 2
3.2 4
3.3.1 2
3.3.2 6
3.4 6
3.5 4
3.6 6
3.7 4
3.8 6
TOTAL 40

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QUESTION 4: MISCELLANEOUS TOPICS

BUSINESS ENVIRONMENTS

4.1 Challenges of the macro environment

- Changes in income levels √
- Political changes √
- Contemporary legal legislation √
- Labour restrictions √
- Micro-lending √
- Globalisation/international challenges √
- Social values and demographics √
- Socio-economic issues √
NOTE: Mark the first TWO (2) only.
(2 x 1) (2)
4.2 Examples of contemporary legislation that may affect business
operations
- The Labour Relations Act regulates the relationship between the employer
and employees when resolving conflict in the workplace. √√
- The Basic Conditions of Employment Act provides the minimum
acceptable standard for any employment policy/describes the conditions
of employment. √√
- The Compensation for Occupational Injuries and Diseases Act provides
compensation for employees who sustain injuries or contract diseases
while on duty/ensures that employers provide their employees with a safe
and healthy working environment. √√
- The Skills Development Act ensures that employers contribute towards the
education and training of their employees. √√
- Consumer Protection Act promotes and advances the social and economic
welfare of consumers in South Africa. √√
- National Credit Act was established to protect both businesses and
consumers from negligent lending practices that could result in over-
indebtedness by consumers. √√
- Employment Equity Act is there to eliminate unfair discrimination, such as
discrimination against race, colour, age, gender, religion, or disability in the
workplace. √√
- Broad Based Black Economic Empowerment ensures that previously
disadvantaged individuals fully participate in the economy. √√
- Any other relevant examples of contemporary legislation that may affect
business operations.
NOTE: Mark the first THREE (3) only.
Max. (6)

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4.3 4.3.1 Solutions to piracy from the scenario

SOLUTIONS TO PIRACY MOTIVATIONS

1. Patent √√ SD was worried that other business
would copy their design so they
registered their new invention. √
2. Trademark √√ They also used a very special symbol
of a glowing sun to enable customer
to identify their drones. √
Sub-max. (4) Sub-max. (2)

NOTE: 1. Mark the first TWO (2) only.

2. The answer does not have to be in tabular format.
3. Award marks for the solutions to piracy even if the
motivation were incomplete.
4. Do not award marks for the motivations if the solutions
to piracy were incorrectly identified.
Max. (6)

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4.4 Purpose of the Labour Relations Act/LRA

- Provide a framework/structure for governing the labour relations √ between
employer and employees. √
- Regulates the rights of trade unions and facilitates √ collective bargaining
processes to take place in the workplace. √
- Encourages the establishment of workplace forums √ where employees
may participate in decision-making. √
- Encourages fair labour practice√ between the employer and
employees. √
- Makes provision for the establishment of the Labour Courts and Labour
Appeal Courts √ to deal with labour issues. √
- Establishes the Commission for Conciliation, Mediation and Arbitration
(CCMA) to resolve labour disputes √ through statutory conciliation,
mediation and arbitration. √
- Provides a framework where the employees, trade unions and employers
work together √ to discuss matters relating to employment, e.g. wages,
conditions of employment. √
- Promotes orderly negotiations and employee participation √ in decision-
making in the workplace. √
- Provides simple procedures √ for the registration of trade unions and
employers’ organisations. √
- Regulates the effectiveness of bargaining councils √ and statutory
councils. √
- Endorses the right to strike against retrenchments, √ and facilitates labour
disputes. √
- Clarifies the transfer √ of contracts of employment procedures. √
- Deals with √ strikes and lockouts and workplace forums.
- Establishes workplace forums to promote √ the interest of all employees
in the workplace whether they belong to the trade union or not. √
- Advances economic development/social justice/labour peace √ to ensure
the workplace maintain the basic rights of employees. √
- Any other relevant answer related to the purpose of the Labour Relations
Act.
Max. (6)

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BUSINESS OPERATIONS

4.5 Types of packaging

- Packaging for immediate use/Unit packaging √
- Packaging for double use √
- Packaging for resale √
- Kaleidoscopic/Frequently changing packaging √
- Speciality packaging √
- Combination packaging √
NOTE: Mark the first FOUR (4) only.
(4 x 1) (4)
4.6 Selection procedure as a human resources activity
OPTION 1
- Determine fair assessment criteria on which selection will be based. √√
- Applicants must submit the application forms/curriculum vitae and certified
copies of personal documents/IDs/proof of qualifications. √√
- Sort the received documents/CVs according to the assessment/ selection
criteria. √√
- Screen/Determine which applications meet the minimum job requirements
and separate these from the rest. √√
- Preliminary interviews are conducted if many suitable applications were
received. √√
- Reference checks should be made to verify the content of CVs, e.g.,
contact previous employers to check work experience. √√
- Compile a shortlist of potential candidates identified. √√
- Shortlisted candidates may be subjected to various types of selection tests
e.g. skills tests. √√
- Invite shortlisted candidates for an interview. √√
- A written offer is made to the selected candidate. √√
- Inform unsuccessful applicants about the outcome of their
application./Some adverts indicate the deadline for informing only
successful candidates. √√
- Any other relevant answer related to the selection procedure as a human
resource activity.

OR

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OPTION 2
- Receive documentation such as application forms and sort it according to
the criteria of the job. √√
- Evaluate CVs and create a shortlist/Screen the applicants. √√
- Check information in the CVs and contact references. √√
- Conduct preliminary sifting interviews to identify applicants who are not
suitable for the job, although they meet all requirements. √√
- Assess/Test candidates who have applied for senior positions/to ensure
the best candidate is chosen. √√
- Conduct interviews with shortlisted candidates. √√
- Offer employment in writing to the selected candidate(s). √√
- Any other relevant answer related to the selection procedure as a human
resource activity.
NOTE: The procedure may be in any order.
Max. (4)

4.7 Ways in which businesses can comply with the Occupational Health
and Safety Act
4.7.1 Ways in which businesses comply with the Occupational
Health and Safety Act from the scenario
- SB ensures that their first aid boxes are always available. √
- They also make fire extinguishers available in the workplace. √

NOTE: 1. Mark the first TWO (2) only.

2. Only award marks for responses that are quoted from the
scenario.
(2 x 1) (2)
4.7.2 Other ways in which businesses can comply with the
Occupational Health and Safety Act
- Provide workers with protective gear √ to protect themselves
against potentially dangerous situations. √
- Fire extinguishers need to be serviced√ regularly. √
- Machinery must be maintained √ at regular intervals and repaired
promptly. √
- Employers who employ more than twenty employees √ must
appoint at least one health and safety representative for every
100 employees. √
- Ensure health and safety of persons at work√ and during the use
of plants and machinery. √
- Any other relevant answer related to other ways in which SB can
comply with the Occupational Health and Safety Act.
NOTE: Do not award marks for responses that were quoted
in QUESTION 4.7.1
Max. (4)

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4.8 Precautionary measures that businesses should take when handling
machinery
- All machinery and equipment must be correctly installed and safe to
use. √√
- Workers must be properly trained on how to use machinery and must be
informed about the risks when using the machinery. √√
- Regular safety checks must be carried out and machinery should be
maintained and serviced regularly. √√
- Workers need to wear protective clothing and gear such as overalls, hard
hats and safety helmets, ear plugs, masks, heavy-duty safety boots,
welding goggles and gloves when working with machinery and
equipment. √√
- Develop a culture of safety in the workplace. √√
- Familiarise employees with safety procedures. √√
- Any other relevant answer related to the precautionary measures that
businesses should take when handling machinery.
Max. (6)
[40]

BREAKDOWN OF MARKS
QUESTION 4 MARKS
4.1 2
4.2 6
4.3 6
4.4 6
4.5 4
4.6 4
4.7.1 2
4.7.2 4
4.8 6
TOTAL 40

TOTAL SECTION B: 80

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SECTION C
Mark the answers to the FIRST question only.
QUESTION 5: BUSINESS ENVIRONMENTS (ADAPTING TO CHALLENGES
OF THE BUSINESS ENVIRONMENT)

5.1 Introduction
- Networking refers to a coordinated activity where people who have
similar objectives meet and exchange information and ideas. √
- Lobbying allows for individuals, businesses and organisations to use
their influence to change government policy. √
- Necessary measures need to be put in place by businesses to assist in
minimising the effects of these challenges. √
- Businesses have the responsibility to become more socially responsible
by giving back to communities. √
- Any other relevant introduction related to the advantages of networking/
types of lobbying/ways in which businesses can adapt to challenges of
the business environments/projects that can be undertaken by
businesses as part of social responsibility. (Any 2 x 1) (2)

5.2 Advantages of networking

- Businesses can attract new customers resulting in increased market
share and profitability. √√
- Networking can be an excellent source of new perspectives and
business ideas. √√
- Allows managers to build new business relationships and generate new
business opportunities. √√
- Plays a role in the marketing and expansion of a business. √√
- Assists businesses in making future business decisions. √√
- Businesses can gain support when representation to various authorities
is planned. √√
- Any other relevant answer related to the advantages of networking.
Max. (10)

5.3 Types of lobbying

5.3.1 Hedging against inflation

- The business use hedging by buying bonds, shares, property
or buying precious metals like gold √ to protect capital from
the effects of inflation. √
- Businesses invest surplus fund √ so that its value grows at a
faster rate than inflation. √
- Businesses use hedging to protect their financial investments
√ by spreading the risk. √
- Any other relevant answer related to hedging against inflation
as a type of lobbying.
Sub-max. (6)

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5.3.2 Bargaining sessions between management and unions
- These sessions enable employees to negotiate with employers
as a group √ to protect employees’ rights. √
- Bargaining sessions prevent labour strikes and provide critical
information √ to people in power. √
- The purpose of bargaining sessions is to find a win-win
situation √ for all parties. √
- Any other relevant answer related to bargaining session
between management and unions as a type of lobbying.
Sub-max. (6)
Max. (12

5.4 Ways in which businesses can adapt to challenges of the business

environments
5.4.1 Information management √√
- Information must be found/recorded/stored/easily retrieved √
and effectively used. √
- Businesses need to implement an effective information
management system √ which is accessible and useful to all
staff. √
- Information must be managed efficiently and a system must be
put in place √ so that the relevant staff can easily access it. √
- Any other relevant answer related to information management
as a method to adapt to challenges of the business
environments.
Way (2)
Discussion (4)
Sub-max. (6)

5.4.2 Strategic responses √√

- Management needs to design strategic responses to various
challenges √ by analysing all information, identifying
stakeholders involved. √
- Get a clear picture√ of each stakeholder’s viewpoints and
requirements. √
- Businesses should have a strategic plan √ to respond to
changes in the business environment. √
- Any other relevant answer related to strategic responses as a
method to adapt to challenges of the business environments.
Way (2)
Discussion (4)
Sub-max. (6)

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5.4.3 Mergers, takeovers, acquisitions and alliances √√

- Businesses can acquire the shares √ of another company. √
- Businesses can choose to purchase/merge with another
business √ as a way to have a larger market share. √
- They can undertake a new venture with another company, √
which can be a safer way than expanding the existing
business. √
- Any other relevant answer related to mergers, takeovers,
acquisitions and alliances as a method to adapt to challenges of
the business environments.
Way (2)
Discussion (4)
Sub-max. (6)

5.4.4 Organisation design and flexibility √√

- Businesses need to be flexible in their organisational design and
strategies √ so that they can compete in a changing market. √
- Organisation design is a process to integrate people/information/
technology of an organisation√ so that improves the profitability of
the business. √
- Any other relevant answer related to organisational design and
flexibility as a method to adapt to challenges of the business
environments.
Way (2)
Discussion (4)
Sub-max. (6)

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5.4.5 Direct influence of the environment and social responsibility √√
- Businesses need to be flexible by getting involved in research
and development √ so that if resources run out or if environmental
legislation changes the business can adapt and continue to
operate. √
- Social responsibility refers to the obligations a business has √ to
protect and improve the interests of all its stakeholders. √
- Through social responsibility a business can influence its
business environments √ and address challenges linked to socio-
economic issues in its social environment. √
- Businesses must be more aware and involved in social
responsibility projects and programmes√ that can benefit the
community. √
- Take part in projects that uplift the community √ in which the
business operates. √
- Businesses use CSI projects √ as a marketing tool for their
business. √
- Any other relevant answer related to direct influence of the
environment and social responsibility as a method to adapt to
challenges of the business environments.
Way (2)
Discussion (4)
Sub-max. (6)
NOTE: Mark the first THREE (3) only.
Max. (14)

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5.5 Projects that can be undertaken by businesses as part of social

responsibility
- Businesses must allow employees to get involved in social development
programmes. √√
- Businesses must protect the environment and participate in community
upliftment programmes. √√
- Engage in environmentally friendly campaigns such as recycling or re-
using scarce resources. √√
- Businesses must support less fortunate people, by providing donations to
charity organisations./Charitable contribution towards NGOs/Businesses
can donate blankets to old age homes/running soup kitchens. √√
- They can also engage in economic development and provide education
on HIV/AIDS awareness programmes. √√
- Involvement in community education/Build schools in communities/ Offer
bursaries to needy students/Donate old computers to less privileged
schools/Provide/Support adult education and training in the local
community. √√
- Teach entrepreneurial skills/Offer support to individuals starting new
business ventures. √√
- Conduct skills development/job creation projects/Offering bricklaying
courses. √√
- Sponsor art and cultural programmes, such as school choirs. √√
- Support youth programmes, such as sport/recreational activities. √√
- Any other relevant answer related to projects that can be undertaken by
businesses as part of social responsibility
Max. (10)

5.6 Conclusion
- Management can use networking to reach as many people as possible
and make every connection count. √√
- Businesses should try to influence legislation or the government
decision-making processes to remain profitable. √√
- Adapting to challenges of the business environment can be achieved by
businesses if management stay abreast with the latest
developments. √√
- Social responsibility projects undertaken by businesses can be used as
a marketing strategy to promote their products. √√
- Any other relevant conclusion related to the advantages of networking/
types of lobbying/ways in which businesses can adapt to challenges of
the business environments/projects that can be undertaken by
businesses as part of social responsibility.
(Any 1 x 2) (2)
[40]

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QUESTION 5: BREAKDOWN OF MARKS
DETAILS MAXIMUM TOTAL
Introduction 2
Advantages of networking 10
Types of lobbying: Maks.
o Hedging against inflation 32
12
o Bargaining sessions between
management and unions
Ways in which businesses can adapt to
14
challenges of the business environments
Projects that can be undertaken by
10
businesses as part of social responsibility
Conclusion 2
INSIGHT
Layout 2
Analysis, interpretation 2
Synthesis 2 8
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 6: BUSINESS OPERATIONS (MARKETING FUNCTION)

6.1 Introduction
- Pricing is the easiest of all the marketing variables to influence but it is
amongst the most complex decisions to make. √
- Various pricing techniques can be used to determine the final prices of
products. √
- The factors that influence pricing of products should be well understood
by all stakeholders in the business to allow for the application of the
pricing structure chosen. √
- Businesses make use of sale promotions by using various marketing
methods that are aimed at improving consumer demand in particular
products/services of the business. √
- Any other relevant introduction related to the importance of pricing/
pricing techniques/factors that influence pricing/purpose of sale
promotions.
(Any 2 x 1) (2)

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6.2 Importance of pricing

- It defines the value of the product in terms of production costs and
customer use. √√
- It is a tangible price point that lets customers know whether the product will
be worth their time and investment. √√
- The pricing process needs to consider flexibility/discount/territory/life cycle
status/allowance. √√
- The price of a product can influence the consumers’ attitude towards the
product or the brand. √√
- Pricing affects the number of products that an enterprise is able to sell,
which in turn, affects profitability. √√
- Pricing too high may have a negative impact/decrease in sales. √√
- If the price is too low, consumers may perceive the product as being of
poor quality. √√
- The price of a product must make provision for transport costs. √√
- The price of a product should take the VAT into account. √√
- The pricing policy should explain when and to whom discounts will be
granted. √√
- Low sales result in stockpiles of unsold product that have to be stored
and not repaying the cost of manufacturing that product. √√
- Any other relevant answer related to the importance of pricing.
Max. (12)

6.3 Pricing techniques

6.3.1 Cost-based pricing

- Cost-based pricing is the practice of setting prices √ based on the
cost of the goods or services being sold. √
- A profit percentage or fixed profit figure is added to the cost of an
item, √ which determines the price at which it will be sold. √
- The costs of production and supply are calculated, √ and a suitable
profit margin is added to determine the selling price. √
- Any other relevant answer related to cost-based pricing as a
pricing technique.
Sub-max. (6)

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6.3.2 Competition based pricing
- Competition-based pricing is a pricing method that involves
setting prices √ in relation to the prices of competitors. √
- This approach is also called going rate pricing√ or competitive
pricing. √
- The more competition in the market, √ the lower prices are likely
to be. √
- If the price is set at a higher level than competitors, √ consumers
may be convinced that the product is better in terms of quality
and usefulness. √
- Any other relevant answer related to competition-based pricing
as a pricing technique.
Sub-max. (6)
Max. (12)

6.4 Factors that influence pricing

6.4.1 Input costs √√
- The higher the input costs, the higher the final price. √
- An increase in transport could increase the final price. √
- Any other relevant answer related to the input costs as a factor
that influence pricing.
Factor (2)
Discussion (1)
Sub-max. (3)

6.4.2 Demand for the product √√

- The higher the demand for a product the higher the production
volume. √
- Any other relevant answer related to the demand for the product
as a factor that influence pricing.
Factor (2)
Discussion (1)
Sub-max. (3)

6.4.3 Target market √√

- The income level of the target market could influence the price of
a product. √
- Any other relevant answer related to the target market as a factor
that influence pricing.
Factor (2)
Discussion (1)
Sub-max. (3)

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6.4.4 Type of product √√

- Luxury products can be priced higher than necessities. √
- Any other relevant answer related to the type of product as a factor
that influence pricing.
Factor (2)
Discussion (1)
Sub-max. (3)

6.4.5 Pricing technique used to determine the price √√

- Promotional pricing could be lower than demand-oriented
pricing. √
- Any other relevant answer related to the pricing technique used to
determine the price as a factor that influence pricing.
Factor (2)
Discussion (1)
Sub-max. (3)

6.4.6 Competitive and substitute products √√

- If there are similar products that could replace a product, a high price
may result in a loss of sales to the substitute. √
- If the price and demand for complementary goods increase, the
other product may increase at the same rate, for example, prices of
computers and keyboards may increase at the same time. √
- Any other relevant answer related to the competitive and substitute
products as a factor that influence pricing.
Factor (2)
Discussion (1)
Sub-max. (3)

6.4.7 The economic climate and availability of goods and services √√

- When there is a shortage of a certain product, people are prepared
to pay more for it. √
- Any other relevant answer related to the economic climate and
availability of goods and services as a factor that influence pricing.
Factor (2)
Discussion (1)
Sub-max. (3)

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6.4.8 Forms of markets√√
The following forms of markets will affect the pricing:
- Perfect competition/The number of buyers and sellers is very large.√
- Products are similar and there are many substitute products, for
example, shares traded on the JSE. √
- Monopolistic competition/There are many suppliers/sellers. √
- Each supplier has his/her brand of a particular product, for example,
restaurants such as McDonalds/Burger King/Steers, and so on. √
- Oligopoly/Only a few suppliers/sellers control the prices of
products. √
- Products are homogenous/same, for example, MTN, Vodacom/
Cell C. √
- Monopoly/Only one supplier/seller controls prices and products. √
- Profit margins are usually higher because consumers do not have
any alternatives, for example, Eskom. √
- Any other relevant answer related to the forms of markets as a factor
that influence pricing.
Factor (2)
Discussion (1)
Sub-max. (3)
NOTE: Mark the first FOUR (4) only.
Max. (12)

6.5 Purpose of sale promotions

- Increase and improve the number of products and services sold to
customers and increase the sales of products of the business. √√
- Inform existing and new potential customers about the products and
services of the business. √√
- Build long-lasting relationships with customers. √√
- Persuade immediate purchases with potential customers. √√
- Determine which sales promotion methods work the best at reaching the
target market. √√
- Provide customers with products and services equal to the value promoted
in marketing communication. √√
- Remind the target market about current and new products and the
availability thereof. √√
- Reconnect with the existing target market. √√
- Improve overall brand awareness of the business with existing and new
potential customers. √√
- Improve customer loyalty with existing and new potential consumers. √√
- Activate dormant customers to purchase products and services. √√
- Any other relevant answer related to the purpose of sale promotions.
Max. (10)

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6.6 Conclusion
- The correct pricing of product/services determines the sales and success
of the business in the long-run. √√
- The many different pricing techniques available to businesses allows for
the use of a combination of these techniques. √√
- Businesses need to carefully considers all the factors that influence their
pricing to ensure that their success is not short lived. √√
- The use of sale promotions needs to be well-researched to ensure that the
smaller profit margin per item does not negatively affect the profitability of
the business. √√
- Any other relevant conclusion related to the importance of pricing/pricing
techniques/factors that influence pricing/purpose of sale promotions.
(Any 1 x 2) (2)
[40]

QUESTION 6: BREAKDOWN OF MARK ALLOCATION

DETAILS MAXIMUM TOTAL
Introduction 2
Importance of pricing 12
Pricing techniques:
o Cost-based pricing 12 Max.
o Competition based 32
Factors that influence pricing 12
Purpose of sale promotions 10
Conclusion 2
INSIGHT
Layout 2
Analysis, interpretation 2
8
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.

TOTAL SECTION C: 40
GRAND TOTAL: 150

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