BUSINESS STUDIES
GRADE 12 
NSC EXAMS
PAST PAPERS AND MEMOS JUNE 2019

NOTES TO MARKERS 

1. Candidates’ responses must be in full sentences for SECTIONS B and C.  However, this would depend on the nature of the question. 
2.  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 source 
   • Original 
   • A different approach is used 
     NOTE: There is only ONE correct answer in SECTION A.
3. 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.) 
4. The word ‘Submax’ is used to facilitate the allocation of marks within a question  or sub-question. 
5. 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. 
6. 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 guideline. Only the total for each question should appear in the  left-hand margin next to the appropriate question number. 
7.  In an indirect question, the theory as well as the response must be relevant  and related to the question. 
8. 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. 
9. No additional credit must be given for repetition of facts. Indicate with an R.   
10. 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). 
11. The difference 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 guidelines and the context of  each question. 
    Cognitive verbs, such as: 
    12.1 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. 
    12.2 Describe, explain, discuss, elaborate, compare, 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. 
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 and use the word ‘Cancel’. 
    NOTE: This only applies to questions where the number of facts is   specified. 
     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 come up with alternative answers. 
    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 
      The ʽfact’ and ʽexplanation’ are given separately in the marking  guidelines 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. 
      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:    

15.2 Insight consists of the following components:  

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 allocated for layout, if the headings 
   ‘INTRODUCTION and CONCLUSION are not supported by an  explanation.    

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 guidelines to each question.  
15.5 Mark all relevant facts until the SUBMAX/MAX mark in a subsection  has been attained. Write SUBMAX/MAX after maximum marks have  been obtained.  
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.    

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 sub-headings are encouraged  and contribute to insight (structuring/logical flow/sequencing) and  indicate clarity of thought.  
(See MARKS 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 memorandum.  
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 guideline, 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 B √√ 
 1.1.2 A √√ 
 1.1.3 D √√ 
 1.1.4 C √√ 
 1.1.5 B √√ 
 1.1.6 B √√ 
 1.1.7 D √√ 
 1.1.8 A √√ 
 1.1.9 C √√ 
 1.1.10 B √√   (10 x 2) (20)   

1.2
1.2.1 R500 000 √√ 
 1.2.2 leader √√ 
 1.2.3 bureaucratic√√ 
 1.2.4 Delphi √√ 
 1.2.5 performance appraisal √√   (5 x 2) (10)   

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

TOTAL SECTION A: 40 
BREAKDOWN OF MARKS 

SECTION B  
Mark the FIRST THREE answers only.  
QUESTION 2: BUSINESS ENVIRONMENTS 
2.1 PESTLE analysis model  

• Political √ 
• Economical √ 
• Social √ 
• Technological √ 
• Legal √ 
• Environmental √
  NOTE: Mark the first SIX (6) only.  (6 x 1) (6)  

2.2 Consumer rights  
2.2.1 Right to privacy/confidentiality √√ 
2.2.2 Right to fair/just/reasonable terms/conditions/disclosure √√   
2.2.3 Right to return goods/have goods replaced/claim a refund/fair  value/good quality and safe products √√ 
2.2.4 Right to fair/honest dealings/responsible marketing/promotion √√ (4 x 2) (8)  
2.3 Advantages of intensive strategies  

• Increased market share√ reduces the business's vulnerability to actions  of competitors.√ 
• Increase in sales/income√ and profitability.√ 
• Improved service delivery√ may improve business image.√ 
• Businesses may have more control√ over the prices of  products/services.√ 
• Gain loyal customers√ 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. 
  Max. (4)  

2.4.1 Tertiary sector √ (1)  
Motivation 

• Provide services to the consumers. √√ (2)  

NOTE: Do not award marks for the motivation if the sector is  incorrectly identified.  Max. (3)
2.4.2 Purpose of the EEA  

• This Act states that employees who do the same work (work of equal  value) √ must be paid equally (equal pay). √ 
• No discrimination √ on grounds of gender in the workplace. √ 
• Promotes equal opportunity √ and fair treatment in the workplace. √ 
• Protects employees from victimisation √ if they exercise the rights given  to them by the EEA. √ 
• Provides for employees to refer unresolved disputes √ to the CCMA. √
• Any other relevant answer related to the purpose of the EEA.  Max. (6)  

2.4.3 Discriminatory actions by EEA  

• Not employing a young woman because she will want to have  children. √√ 
• Refusing to employ a person because he/she has strong religious  beliefs/has a disability. √√ 
• Doing HIV testing unless justified by the Labour Court. √√ 
• Denying people access to the workforce based on  gender/race/culture/etc. and treating them unfairly. √√ 
• Any other relevant actions that can be regarded as discriminatory by  EEA. 
  NOTE: Mark the first TWO (2) only.
  (Any 2 x 2) (4)  

2.5 Distinction between BEE and BBBEE  

NOTE:

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

2.6.1 Compensation for Occupational Injuries and Diseases Act, 1993 (Act 130  of1993)/Compensation for Occupational Injuries and Diseases Amendment  Act, 1997 (Act 61 of 1997) √√  
NOTE: Also accept COIDA/Compensation for Injuries and Diseases  Act. (2)  
2.6.2 Quotation  

• Khaya was rushed to hospital without reporting the accident. √ 
• Khaya had not been wearing his protective eye goggles despite having  often been advised to do so. √ (1) 
  NOTE: Mark the FIRST answer only.  

2.6.3 Impact of COIDA on employers and employees  
Positives/Advantages  

• Promotes safety √ in the workplace. √ 
• Creates a framework √ for acceptable employment practices/safety  regulations. √ 
• Supply administrative guidelines/mechanisms √ for dealing  with/processing claims. √ 
• Eliminates time and costs spent √ on lengthy civil court proceedings. √
• Employers are protected from financial burden should an accident occur  in the workplace, √ provided that the employer was not negligent.√ 
• Claiming processes √ are relatively simple. √ 
• Makes businesses more socially responsible √ as they cannot just  employ workers at random in dangerous working conditions. √ 
• Workers are treated with dignity and respect √ as businesses view them  as valuable assets and not just as workers. √
• Covers all employees at the workplace, √ if both parties meet all the  necessary safety provisions in the Act. √
• Employees do not contribute √ towards this fund. √ 
• Employees are compensated financially for any injury/disability √ resulting from performing their duties at their workplace. √ 
• In the event of the death of an employee as a result of a work-related  accident/ disease, √ his/her dependent(s) will receive financial  support. √ 
• Employees receive medical assistance √ provided there is no other  medical assistance option. √/Cannot claim medical assistance from the  fund and medical aid 
•  Any compensation to an employee/the family √ is exempt from income  tax. √ 
• Any other relevant answer related to the positive impact/advantages of  COIDA on employers and employees.  

AND/OR  
12 BUSINESS STUDIES (EC/JUNE 2019) 
Negatives/Disadvantages  

• Claiming processes/procedures √ can be time-consuming. √ 
• Processes/Procedures required by this Act may be costly, √ as  paperwork places an extra administrative burden on businesses. √ 
• Employers have to register all their workers/make annual contributions  to COIDA, √ which may result in cash flow problems. √ 
• Employers may be forced to pay heavy penalties, √ if they are found  guilty of negligence/not enforcing safety measures. √ 
• Workers who are temporarily/permanently employed in foreign  countries √ are not covered. √ 
• Domestic/Military workers √ are not covered/may not claim. √ 
• Any other relevant answer related to the negative impact/disadvantages  of COIDA on businesses.  Max. (6)  

2.7 Compliance to NCA  

• Credit providers must be registered with the National Credit  Regulator. √√ 
• Businesses must submit an annual compliance report to the National  Credit Regulator. √√ 
• Conduct affordability assessment to ensure the consumer has the  ability to meet his/her obligation. √√ 
• Conduct a credit check with a registered credit bureau and could also  consult the National Credit Register. √√ 
• Credit providers must have procedures in place to comply with the  provision of the Financial Intelligence Centre Act (FICA). √√
• Verify the identity of clients, report suspicious transactions/train staff on  their obligations in terms of FICA. √√ 
• Any other relevant answer related to ways in which businesses should  comply with the NCA.  Max. (6)  

2.8 Positive impact of the Labour Relations Act (LRA), 1995 (Act 66 of  1995) on businesses  
Positives/Advantages  

• LRA provides for the principles of collective bargaining √ and puts  structures in place with which disputes in the workplace can be  settled. √ 
• Promotes a healthy relationship √ between the employer and  employees. √ 
• Provides specific guidelines for employers √ on correct and fair  disciplinary procedures. √ 
• Employers and employees have guidelines √ regarding correct  and fair dismissal procedures. √ 
• Provides mechanisms √ such as statutory councils/collective  bargaining/CCMA.√ 
• Labour disputes are settled quicker √ and are less expensive. √ 
• Provides protection for employers √ who embark on lawful lock outs. √
• Employers are entitled to compensation from the Labour Court, √
• if they suffered damages as a result of unprotected strikes. √ 
• Workplace forums can add value to businesses √ if it functions  properly. √ 
• Any other relevant answer related to the positive  impact/advantages of LRA on businesses. 
  NOTE: Allocate a maximum of TWO (2) marks if the impact is  only applicable to unions. Max. (6)  

 BREAKDOWN OF MARKS 
QUESTION 3: BUSINESS ROLES  

3.1 Components of Corporate Social Responsibility (CSR)  

• Environment √ 
• Ethical corporate social investment √ 
• Health and safety √ 
• Corporate governance √ 
• Business ethics √ 
• Employment equity √ 
• Supply chain/Distribution channel √ 
• Customers √
• Community √ 
• Any other relevant answer related to the components of CSR.
  NOTE: Mark the first FOUR (4) only.  (4 x 1) (4) 

3.2 Problem-solving techniques  
3.2.1 Empty-chair technique √√ 
3.2.2 Force-field analysis √√ 
3.2.3 SCAMPER √√ 
3.2.4 Brainstorming √√  (4 x 2) (8)  
3.3 Ways in which businesses could contribute to the wellbeing of their  employees  

• Pay fair wages/salaries to the workers √ based on the nature of their  work/the prevailing economic conditions in the market. √
• Working conditions should include safety/medical/canteen  facilities/benefits √ like housing/leave/retirement, √ etc. 
• Pay fair bonuses, √ based on business earnings, as acknowledgement  for hard work and commitment.√ 
• Provide for employees’ participation in decision-making √ that affects  them. √ 
• Provide recreational facilities √ for employees. √ 
• Offer annual physical/medical assessments √ to workers. √ 
• Make trauma debriefing/counselling/assistance available √ to any  employee who requires these services.√ 
• Offer financial assistance √ in the case of any hardship caused by  unexpected medical costs. √ 
• Allow flexible working hours, √ to enhance productivity.√ 
• Offer support programmes for employees infected √ and affected by  HIV/Aids. √
• Make childcare facilities available √ on the premises for working  mothers in the business. √ 
• Start a nutritional programme √ so that employees can enjoy one good  meal per day to keep them in a healthy condition. √
• Give time to staff to get involved in projects they choose √/Allow staff to  use some of the working hours to participate in the projects of their  choice.√
• Encourage employees to stay fit and healthy √ by getting them involved  in health activities to minimise stress/substance abuse/obesity.√ 
• Provide transport for employees √ who work unusually long hours.√
• Establish coaching and mentoring programmes √ for junior employees.√
• Conduct team-building sessions √ to improve employees’ morale.√
• Encourage employees to attend capacity-building workshops/training  programmes √/ staff-development programmes/team-development  programmes. √ 
• Any other relevant recommendations related to ways in which  businesses could contribute to the wellbeing of their employees.  Max. (4)  

3.4
3.4.1 Quotation 

• The local newspaper reported the possibility of liquidation  resulting from the lack of management skills of the directors. √
• The management of MFS denies these allegations. √ 
  NOTE: Mark the first TWO (2) only.   (2 x 1) (2)  

3.4.2 King Code principle  

• Transparency √√ 
• Accountability √√
  NOTE: Mark the first TWO (2) only. (2 x 2) (4)  

 3.4.3 Application of transparency 

• Regular audits should be done to determine the effectiveness of  the business. √√ 
• uditing and other reports must be accurate / available to  shareholders/employees. √√
• Business deals should be conducted openly so that there is no  hint/sign of dishonesty/ corruption. √√ 
• Staffing and other processes should be open and transparent.√√ 
• Employees/Shareholders/Directors should be aware of the  employment policies of the business. √√ 
• Any other relevant application of transparency as a King Code  principle.   Sub-max. (2)    

 Application of accountability 

• There must be regular communication between management  and stakeholders like shareholders. √√ 
• Company should appoint internal and external auditors to audit  financial statements. √√ 
• The board should ensure that the company's ethics are  effectively implemented. √√ 
• Any other relevant application of accountability as a King Code  principle.  Sub-max. (2)  

NOTE: 

1. Award a maximum of TWO (2) marks if application is  based on the examples of poor corporate governance  quoted in QUESTION 3.4.1. 
2.  Award TWO (2) marks for the King Code principle  identified in QUESTION 3.4.2, if the example of poor  corporate governance was not directly quoted but based  on the scenario. 
3. The application in QUESTION 3.4.3 must link to the  correct King Code principle in QUESTION 3.4.2.  (2 x 2) (4)  

3.5 Benefits/Advantages of creative thinking  

• 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. (6) 

3.6 Procedure for dealing with grievances in the workplace  

• An aggrieved employee must verbally report the incident/grievance to his/her  supervisor/manager, √ who needs to resolve the issue within 3 to 5 working  days. √ 
• Should the employee and supervisor not be able to resolve the grievance, √ the employee may take it to the next level of management. √ 
• The employee may move to a more formal process √ where the grievance  must be lodged in writing/completes a business grievance form. √ 
• He/She must receive a written reply √ in response to the written grievance. √ - A grievance hearing/meeting √ must be held with all relevant parties present. √ 
• Minutes of the meeting must be recorded √ and any resolution passed must  be recorded on the formal grievance form. √ 
• Should the employee not be satisfied, √ then he/she could refer the matter to  the highest level of management. √ 
• Top management should organise a meeting with all relevant parties.  - Minutes of this meeting should be filed/recorded √ and the outcome/decision  must be recorded on the formal grievance form. √ 
• Should the employee still not be satisfied, he/she may refer the matter to the  CCMA, √ who will make a final decision on the matter. √ 
•  Any other relevant answer related to the correct procedure to deal with  grievances in the workplace. 
  NOTE: The procedure may be in any order. Max. (8)  

3.7
3.7.1 Responsibilities of workers in promoting human health and  safety in the workplace  

• Must take care of their own health √ and safety in the  workplace. √ 
• Co-operate and comply with the rules and procedures √ e.g.  wear prescribed safety clothing. √ 
• Report unsafe √ or unhealthy conditions. √ 
• Report accidents √ to the employer by the end of the shift. √ 
• Use prescribed √ safety equipment. √ 
• Take reasonable care√ of their own safety. √ 
• Inform the employer of any illness √ that may affect the ability to  work. √
• Any other relevant answer related to the responsibilities of  employees in protecting the workplace environment.   Max. (4)  

 3.7.2 Roles of the health and safety representative in the workplace 

• Investigate incidents/complaints √ from workers about health  and safety. √ 
• Responsible for checking √ the effectiveness of the business’s  health and safety measures. √ 
• Identify the potential dangers √ in the workplace. √ 
• Initiate/Promote/Maintain/Review measures √ for ensuring the  health and safety of the workers. √ 
• Attend to any formal inquiry/investigation √ into an  accident/health related incident in the workplace. √
• Ensure that protective clothing √ is provided/available to all  workers.√ 
• Ensure that all equipment that is necessary to perform work √ are provided/maintained regularly. √ 
• Promote safety training √ so that employees may avoid potential  dangers/act pro-actively. √ 
• Ensure that dangerous equipment is used √ under the  supervision of trained/qualified workers.√ 
• Ensure that workers’ health and safety is not endangered √ by  hazards resulting from production/processing/  storage/transportation of material/equipment.√ 
• Co-operate with the employer to investigate any  accidents/complaints from the workers √ concerning health and  safety in the workplace. √ 
• Ensure that employers comply √ with COIDA. √ 
• Any other relevant answer related to the roles of health and  safety representatives in the workplace.   Max. (8)  

 3.7.3 Ways in which businesses can protect the environment and  human health  

•  Adhere to laws/regulations so that profits are not generated at  the expense of the environment. √√ 
• Consider pollution/other environmental issues in all business  activities, e.g. safe disposal of waste/dumping of toxic waste, √√ etc. 
•  Become involved in environmental awareness programs. √√ 
• Businesses protects the environment by altering production  techniques in favour of cleaner and greener technologies. √√ 
• Water for human consumption is tested before it is used. √√ 
• Promote nature conservation by looking after natural  resources. √√ 
• Minimise pollution by re-using/reducing/recycling. √√
• Reduce consumption of goods/services which are  environmentally unfriendly. √√ 
• Register/Engage with recognised institutions/bodies that  promote green peace. √√ 
• Ensure that physical working conditions are worker  friendly/safe/adequate/ functional/promoting occupational  health. √√ 
• Maintain/Service machines regularly. √√ 
• Educate people about hygiene/health issues. √√ 
• Encourage employees to do regular health checks. √√ 
• Any other relevant answer related to ways in which businesses  can protect the environment and human health. 
   NOTE: Mark the first TWO (2) only.  (2 x 2) (4)  

3.8 Ways in which businesses could promote social rights in the workplace 

• Business 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 answer related to the ways in which businesses could  promote social rights in the workplace. 
  NOTE: Do not accept ways that promote human and/or economic  rights.  Max. (4)  

BREAKDOWN OF MARKS 
QUESTION 4: BUSINESS OPERATIONS 

4.1 Examples of fringe benefits  

• Medical Aid Fund/Health Insurance Fund √ 
• Pension Fund √ 
• Provident Fund √ 
• Funeral benefits √ 
• Car/Travel/Housing/Cellphone/Clothing allowance √ 
• Performance based incentives √ 
• Issuing of bonus shares √ 
• Staff discount/Free or low cost meal/Canteen facilities √ 
• Any other relevant example related to fringe benefits in the workplace. 
  NOTE: Mark the first FOUR (4) only.  (4 x 1) (4)  

4.2 Purpose of the interview  

• To determine a candidate is suitability√ for the job. √ 
• Match the information given by the applicant √ with the requirements of  the job. √ 
• To get more information √ from the applicant. √ 
• Evaluate the personal/skills characteristics √ of the applicant. √ 
• Provides the applicant with the opportunity to find out more about the  job/working conditions/salary √ and the business. √ 
• Any other relevant answer related to the purpose of an interview.  Max. (6)  

4.3 4.3.1  

NOTE: Mark the first TWO (2) of each only.   (2 x 2) (4)    
 4.3.2 External recruitment √√ (2)   
 4.3.3 Sources of external recruitment 

• Electronic media, e.g. radio/TV √ 
• Social media/Social networks/Internet/Business websites √ 
• Recruitment agencies √ 
• Walk-ins √ 
• Head-hunting √ 
• Professional associations √ 
• Networking √ 
• Educational/Training institutions √ 
• Posters/Bill boards just outside the business √ 
• Any other relevant answer related to the sources of external  recruitment. 
  NOTE: Mark the first TWO (2) only.   (2 x 1) (2)   

 4.3.4 Placement procedure  

•  HGL should outline the specific responsibilities of the new  position, √ including the expectations/skills required for this  position.√ 
• Determine the successful candidate’s  strengths/weaknesses/interests/skills √ by subjecting him/her to a  range of psychometric tests.√
• Determine the relationship between the position √ and the  competencies of the new candidate.√
• Any other relevant answer related to the placement procedure.   Max. (6)    

4.4 Implication of the Skills Development Act (SDA) on the Human  Resources function  

• The human resources function should interpret the aims and requirements  of the SDA √ and adapt workplace skills training programmes  accordingly.√ 
• Identify the training needs of the employees √ and provide them with  training opportunities so that they will perform their tasks efficiently.√ 
• Use the National Qualification Framework/NQF √ to assess the skills  levels of employees.√ 
• Interpret/Implement the aims/requirements of the framework √ for the  National Skills Development Strategy.√ 
• Assist managers in identifying skills/training needs √ to help them to  introduce learnerships.√ 
• Businesses should contribute 1% of their salary bill √ to the Skills  Development Levy/SDL.√ 
• Ensure training in the workplace √ is formalised /structured.√ 
• Appoint a full/part time consultant √ as a Skills Development Facilitator.√ 
• Any other relevant answer related to the implications of the Skills  Development Act on the Human Resources function.  Max. (8)  

4.5 Business functions  
 4.5.1 Administrative √√  
 4.5.2 Production √√  
 4.5.3 Purchasing √√  
 4.5.4 Human resources √√   (4 x 2) (8)    
4.6 Advantages of total client satisfaction for large businesses 

• Large businesses use market research √ to measure/monitor customer  satisfaction/ analyse customer needs.√
• Continuously promote √ a positive business image.√ 
• May achieve a state of total customer satisfaction, if they follow sound  business practices √ that incorporate all stakeholders.√ 
• Ensure that cross functional teams understand their core competencies√ and they develop and strengthen them. √
• May keep more customers/Higher customer loyalty √ which makes it  possible to charge higher prices.√ 
• May be able to gain access √ to the global market. √ 
• May lead to increased √ competitiveness/profitability. √
• Any other relevant answer related to the advantages of total client  satisfaction on large businesses. Max. (8)  

4.7 Differences between quality performance and quality management  

NOTE: 

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

4.8 Ways in which businesses could improve the quality of performance  within the human resource function 

• Appoint right person where his or her abilities, skills and initiative can  benefit the business. √√ 
• Employees are the key element in assuring quality, implementing  processes and systems, building and maintaining standards. √√ 
• On-going training and staff development is of a high standard.√√ 
• Incentivise employees to increase morale and productivity. √√ 
• Employees are positive about the business through motivation and job  satisfaction. √√ 
• Employees stay at the business for a long time due to the  implementation of performance management systems. √√ 
• Adherence to policies to ensure the safety of employees and quality of  the product. √√ 
• Any other relevant answer related to the ways in which businesses  could improve the quality of performance within the human resource  function.  Max. (4)  

BREAKDOWN OF MARKS   

QUESTION 5: MISCELLANEOUS TOPICS  
BUSINESS ENVIRONMENTS  
5.1 BCEA provision for leave  
5.1.1 Sick √√ 
5.1.2 Annual √√ 
5.1.3 Maternity √√ 
 5.1.4 Family responsibility √√   (4 x 2) (8) 
5.2 Porter’s Five Forces  
5.2.1 Competitive rivalry/Power of competitors 

• Competitors are businesses √ selling the same/similar products  or rendering the same/similar services.√ 
• If the competitors have unique products/services √ they have  greater power.√ 
• The business must draw up a competitor's profile of each similar  business in the area√ to determine its strength √/Business  should determine how many competitors there are √ and how  influential they are in the market.√ 
• If a business has many competitors with similar products, √ the  business will have very little power in the market.√
• Some businesses have the necessary resources to start price  wars √ and continue selling at a loss until some/all competitors  leave the market.√ 
• Any other relevant answer related to competitive rivalry as one  of Porter’s Five Force.   Max. (4)  

Related Items

 5.2.2 Power of buyers  

• Buyers are the final users √ of products/services.√
• Business must assess how easy it is for its buyers/customers √ to drive prices down.√ 
• This will depend on the number of buyers/the importance of  each buyer to the business √ and the cost of switching to other  products.√ 
• A few powerful buyers √ are often able to dictate terms to the  business.√ 
• If customers can do without the business’ products, √ they may  have more power to determine the prices and terms of sale.√ 
• Businesses should conduct market research √ to gather more  information about its buyers.√ 
• Any other relevant answer related to the power of buyers as a  Porter’s Five Force.   Max. (4)

BUSINESS VENTURES  
5.3 Leadership style  
 5.3.1 Laissez-faire/Free reign √√ (2)   
 5.3.2 Reasons to why employees may prefer a laissez-faire  leadership style 

• Employees take decisions, √ especially when they are  experienced within the framework of the business policy.√ 
• Leader delegates authority to subordinates√ and becomes  involved only on request.√ 
• The leader is responsible √ and accountable for the employees’  decisions and actions.√ 
• Employees are left on their own √ with minimal interference. √ 
• This may lead to frustration on the part of employees √ when they lack experience or have not earned the trust of the leader.√ 
• Subordinates are experts √ and know what they want/can take  responsibility for their actions.√ 
• It can be empowering for competent followers √ as they are  completely trusted to do their job.√ 
• Any other relevant answer related to the reasons why  employees may prefer the laissez-faire/free reign leadership  style.   Max. (6)   

 5.3.3 Application of laissez-faire leadership style  

• Subordinates are experts and know what they want/can take  responsibility for their actions. √√ 
• The leader is very busy, and delegation of tasks will increase  productivity. √√ 
• Team members need to improve/develop leadership skills.√√ 
• Suitable when employees are highly experienced and know  more about the task than the leader. √
• Any other relevant answer related to a situation in which laissez faire/free-reign leadership style may be applied in the  workplace.   Max. (6)  

BUSINESS ROLES  
5.4 Economic rights of employees  

• No forced labour √ 
• Free to accept/choose a job √ 
• Fair salaries and wages/Equal pay √
• Fair/Reasonable working hours √ 
• Safe and healthy working conditions √ 
• Right to form/belong to a trade union √ 
• Right to participate in a legal strike √ 
• Any other relevant answer related to the economic rights of employees.  

NOTE: 

1. Mark the first FOUR (4) only.
2. Do not allocate marks for human and/or social rights.  (4 x 1) (4)  

5.5 Differences between decision making and problem solving  

NOTE: 

1. The answer does not have to be in tabular format, but the  distinction must be clear. 
2. If the distinction is not clear, award a maximum of TWO marks/Mark either decision-making or problem-solving  only.  (2)  Max. (4)  

5.6 Strategies that businesses may use to manage the following socio economic issues  
 5.6.1 Unemployment 

• Encourage growth by keeping interest rates low√ for funds  available to start own businesses.√ 
• Encourage entrepreneurship√ that can promote self employment. √ 
• Offer bursaries to the community√ to improve the level of  education. √ 
• Make courses available for entrepreneurs√ to learn business  skills. √ 
• Reduce number of hours worked√ and increase shift work. √
• Train unemployed in the skills√ that are needed. √ 
• Encourage businesses to run training√ and apprentice  programmes. √ 
• Support existing small businesses√ to create more  employment. √ 
• Any other relevant strategy that businesses may use to manage  unemployment as a socio-economic issue. 
   NOTE: Mark the first TWO (2) only.  (2 x 2) (4)    

 5.6.2 HIV/Aids  

• 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 that businesses may use to  manage HIV/Aids as a socio-economic issue. 
  NOTE: Mark the first TWO (2) only.  (2 x 2) (4)   

BUSINESS OPERATIONS  
 5.7.1 Employment contract 

• It is a legally binding/written √ agreement between the  employer and the employee.√ 
• The employment contract states various terms and  procedures √ etc. regarding his/her conditions of service and  code of conduct.√ 
• Any other relevant definition/explanation of the employment  contract.   Max. (2)    

 5.7.2 Termination of a contract 

• Employee resigns voluntarily. √√ 
• Employer terminates/dismisses the employee due to  misconduct. √√ 
• Employer has no work for the employee any longer/business is  closing down. √√
• Employee reaches the retirement age as stipulated in the  contract. √√ 
• If the employee dies. √√
• By mutual agreement between the employer and employee.√√ 
• Any other relevant answer related to the reasons for  terminating an employment contract.  

 NOTE: 

1. Mark the first THREE (3) only.
2.  Award a maximum of TWO (2) marks for  examples that illustrate the same fact.  (3 x 2) (6)   

5.8 Importance of quality circles in TQM 

• Solve problems related to quality and implement improvements. √√
• Investigate problems and suggest solutions to management. √√ 
• Ensure that there is no duplication of activities/tasks in the  workplace. √√ 
• Make suggestions for improving systems and processes in the  workplace. √√ 
• Improve the quality of products/services/productivity through regular  reviews of quality processes. √√ 
• Monitor/Reinforce strategies to improve the smooth running of a  business’ operations. √√ 
• Reduce costs of redundancy in the long run. √√
• Increase employees’ morale/motivation. √√ 
• Quality circles discuss ways of improving the quality of  work/workmanship. √√ 
• Contribute towards the improvement and development of the  organisation. √√ 
• Reduce costs/wasteful efforts in the long run. √√ 
• Increase the demand for products/services of the business. √√ 
• Create harmony and high performance in the workplace. √√ 
• Build a healthy workplace relationship between the employer and  employee. √√ 
• Improve employees’ loyalty and commitment to the business and its  goals. √√ 
• Improve employees’ communication at all levels of the business. √√
• Develop a positive attitude/sense of involvement in decision making  processes of the services offered. √√ 
• Any other relevant answer related to the importance of quality circles in  TQM.   Max. (6)    

 BREAKDOWN OF MARKS   

SECTION C  
QUESTION 6: BUSINESS ENVIRONMENTS (STRATEGIES)  
6.1 Introduction  

• SWOT analysis is used to identify and evaluate the factors in the  internal and external environment that can influence the business. √
• Businesses must devise strategies to address the identified  challenges.√
• SWOT analysis assesses how a strategy can be best implemented. √
• The aim of strategy evaluation is to determine whether the chosen  strategy will resolve the identified challenge.√ 
• Any other relevant introduction related to applying the SWOT analysis,  defensive strategies and strategy evaluation.  (Any 2 x 1) (2)  

6.2 SWOT analysis    Max. (8)  

6.3 Strategies to handle weakness and threat  

NOTE: 

1. Do not award marks for strategies that are not linked to  the identified threat or weakness.
2. Do not award marks for the weakness/threat. Max. (12)  

6.4 Defensive strategies  
Divestiture √√  

• The business disposes/sells some assets/divisions √ that are no longer  profitable/ productive.√ 
• Businesses may sell off divisions/product lines√ with slow growth  potential.√ 
• The business sells ownership √ by reducing the number of shareholders 
• Unproductive assets are sold √ to pay off debts/reduce operational  costs. √ 
• Process used to withdraw its investment √ in another business.√ 
• Aims at acquiring √ additional capital. √ 
• Any other relevant answer related to divestiture as a defensive strategy. 
  Strategy (2)
  Explanation (4)
  Sub-max. (6) 
  NOTE: Accept divestment/disinvestment/unbundling as an   alternative answer.  

Liquidation √√ 

•  All assets are sold to pay creditors √ due to a lack of capital/cash flow.√
• Selling the entire business √ in order to pay all liabilities/close down the  business.√ 
• Creditors may apply for forced liquidation √ in order to have their claims  settled.√ 
• Companies in financial difficulty may apply for business rescue √ to  avoid liquidation.√ 
• Any other relevant answer related to liquidation as a defensive strategy. 
  Strategy (2) 
  Explanation (4) 
  Sub-max. (6) 

Retrenchment √√ 

• Terminating the employment contracts of employees √ for operational  reasons. √ 
• Decreasing the number of product lines/Closing certain departments √ may result in some workers becoming redundant.√ 
• Any other relevant answer related to retrenchment as a defensive strategy. 
  Strategy (2)
  Explanation (4)
  Sub-max. (6)
  NOTE: Mark the first THREE (3) responses as they may include  incorrect defensive strategies. 
  Strategies (6) 
  Explanation (12) 
  Max. (18)  

6.5 Evaluation strategies  

• Examine the underlying basis of a business strategy. √√ 
• Formulate strategies to meet objectives favourably. √√ 
• Implement strategies using action plans, √√ etc. 
• 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 strategy evaluation. 
  NOTE: Accept steps in any order.  Max. (8)  

6.6 Conclusion  

• SWOT analysis requires the combination of quantitative and qualitative  information to improve the business level of planning, policy making and  enhance decision making. √√ 
• SWOT analysis also improves communication and helps to co-ordinate  business operations. √√ 
• Businesses must continuously evaluate the effectiveness of the  implemented strategies. √√ 
• Any other relevant conclusion related to the SWOT analysis, defensive  strategies and strategy evaluation.  (Any 1 x 2) (2)  [40]  

  QUESTION 6: BREAKDOWN OF MARK ALLOCATION 

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 7: BUSINESS ROLES (TEAM PERFORMANCE AND CONFLICT   MANAGEMENT)  
7.1 Introduction  

• Teamwork refers to a number of people collaborating/working together  effectively in order to reach a common goal. √ 
• Successful teams go through different stages of team development in  order to become successful/effective. √ 
• Managers should be well conversant with the causes of conflict in order to  develop relevant strategies on how to deal with conflict in the workplace.√
• Poor conflict management may lead to team failure or the dissolution of a  team. √ 
• Any other relevant introduction related to team performance and conflict  in the workplace.  (Any 2 x 1) (2)  

7.2 Stages of team development  
Forming stage √√ 

• Individuals gather information/impressions about each other and the  scope of the task/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. 
• Name (2) 
  Explanation (2) 
  Sub-max. (4)  

Storming stage √√ 

• Teams go through a period of unease/conflict after formation. √
• Different ideas from team members will compete for consideration. √
• Team members open up to each other and confront each other's ideas/  perspectives. √ 
• Tension/Struggle/Arguments occur and upset team members/There may  be power struggles for the position of the team leader. √ 
• In some instances storming can be resolved quickly, in others, the team  never leaves this stage. √ 
• Many teams fail during this stage as they are not focused on their task.√
• This phase can become destructive to the team/will lower motivation if  allowed to get out of control. √ 
• This stage is necessary/important for the growth of the team.√
• Some team members tolerate each other to survive this stage.√ 
• Any other relevant answer related to the storming stage of team  development. 
  Name  (2)
  Explanation (2) 
  Sub-max. (4)  

Norming stage/Settling and reconciliation √√  

• Team members form agreement and consensus. √ 
• Roles and responsibilities are clear and accepted. √ 
• Processes, working style and respect develop. √ 
• Team members have the ambition to work for the success of the team’s  goals. √ 
• Conflict may occur, but commitment and unity are strong. √ 
• Any other relevant answer related to the norming/settling and  reconciliation stage of team development. 
  Name  (2)
  Explanation (2) 
  Sub-max. (4)  

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

• Team members are aware of strategies/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/working as a team  towards a goal stage of team development. 
  Name (2) 
  Explanation (2) 
  Sub-max. (4)  

Adjourning/Mourning stage √√ 

• he 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. 
  Name  (2)
  Explanation (2) 
  Sub-max. (4)  

NOTE: Mark the first FOUR (4) stages only.  
 Identification (8)  
Explanation (8) 
Max. (16)  
7.3 The characteristics of successful teams  

• Successful teams share a common goal √ as team members are part of  the process of setting goals for the group. √ 
• Share a set of team values √ and implement group decisions. √ 
• Teams value the contributions of individual members√ and reach  consensus on differences. √ 
• There is a climate of respect/trust √ and honesty. √ 
• Team members enjoy open communication√ and deal immediately with  conflict. √ 
• Teams are accountable √ and members know the time frame for  achieving their goals.√ 
• Teams pay attention to the needs √ of the individual team members. √
• Successful teams have sound √ intra-team relations. √ 
• Creates opportunities where team members can develop, √ so that they  learn from the experience of working in a team. √ 
• Regular reviews of team processes and progress√ may help to  detect/solve problems sooner. √ 
• Balance the necessary skills/knowledge/experience/expertise √ to  achieve team objectives. √ 
• Any other relevant answer related to the characteristics of successful  teams.  Max. (10) 

7.4. Causes of conflict in the workplace  

• Lack of proper communication √ between management and workers.√
• Ignoring of rules/procedures √ may result in disagreements and  conflict.√ 
• Management and/or workers √ may have different personalities/  backgrounds. √ 
• Different values/levels of knowledge/skills/experience √ of  managers/workers. √ 
• Little/no co-operation √ between internal and/or external  parties/stakeholders. √ 
• Lack of recognition for good work, √ e.g. a manager may not show  appreciation for extra hours worked to meet deadlines.√ 
• Lack of employee development √ may increase frustration levels as  workers may repeat errors due to a lack of knowledge/skills.√ 
• Unfair disciplinary procedures, √ e.g. favouritism/nepotism.√ 
• Little/no support from management √ with regard to supplying the  necessary resources.√ 
• Leadership styles used, √ e.g. autocratic managers may not consider  workers’ inputs. √ 
• Unrealistic deadlines/Heavy workloads √ lead to stress resulting in  conflict.√ 
• Lack of agreement on mutual matters, √ e.g. remuneration/working  hours. √ 
• Unhealthy competition/Inter-team rivalry √ may cause workers to lose  focus on team targets. √ 
• Lack of commitment √ which may lead to an inability to meet pre-set  targets. √ 
• Any other relevant answer related to the causes of conflict in the  workplace.  Max. (10)  

7.5 Handling of conflict in the workplace  

• Acknowledge that there is conflict in the workplace. √√
• Identify the causes of the conflict. √√ 
• Pre-negotiations may be arranged where workers/complainants will be  allowed to state their case/views separately. √√ 
• A place and time is arranged for negotiations where all employees  involved are present. √√ 
• Arrange a meeting between conflicting employers/employees. √√
• Make the intentions of the intervention clear so that parties involved may  feel at ease. √√ 
• Each party has the opportunity to express his/her own opinions/feelings/  Conflicting parties may recognise that their views are different. √√ 
• Analyse the cause(s) of conflict by breaking it down into different  parts/Evaluate the situation objectively. √√ 
• Blame-shifting should be avoided and a joint effort should be made. √√
• Direct conflicting parties towards finding/focusing on solutions. √√
• Devise/Brainstorm possible ways of resolving the conflict. √√ 
• Conflicting parties agree on criteria to evaluate the alternatives. √√
• The best possible solution(s) is/are selected and implemented. √√ 
• Parties must agree to the best solutions. √√ 
• Evaluate/Follow up on the implementation of the solution(s). √√ 
• Monitor progress to ensure that the conflict has been resolved. √√
• Expertise on handling conflict may be sourced from outside the  business. √√
• Any other relevant answer related to how businesses should handle  conflict in the workplace.  Max. (10)    

7.6 Conclusion  

• The success of a business depends on the successful collaboration  within a team to ensure that the objectives of the business will be  met. √√ 
• Conflict cannot always be resolved/avoided/eliminated, therefore people  need to learn how to manage conflict within a team in order to work in  harmony. √√ 
• Any other relevant conclusion related to team performance and conflict  management.  (Any 1 x 2) (2)  [40]  

QUESTION 7: BREAKDOWN OF MARK ALLOCATION  

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 OPERATIONS (QUALITY MANAGEMENT) 
8.1 Introduction  

• Quality management should not just be an inspection process, but must  become part of the culture of the business. √ 
• TQM is an integrated system and methodology applied throughout the  business to design, produce and provide quality products/quality service  to customers. √ 
• Total quality relates to products that totally satisfy customers’ needs and  expectations in every aspect on a continuous basis. √ 
• Everyone employed in a business has a role to play in ensuring that the  needs of customers are satisfied.√ 
• Any other relevant introduction related to a quality management system.  (Any 2 x 1) (2)  

8.2 The 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 easily 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 √ and profitability. √ 
• Any other relevant answer related to the benefits of good quality  management systems.  Max. (10)  

8.3 Reduction of cost of quality through TQM  

• Introduce quality circles/small teams of five to ten employees, √ who  meet regularly to discuss ways of improving the quality of their work.√
• Schedule activities to eliminate √ duplication of tasks/activities.√ 
• Share responsibility for quality output√ between 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 the quality challenges/deviations, √ so  that everyone can learn from past experiences. √ 
• 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 ways in which a business can  reduce the cost of quality through TQM.  Max. (10)  

8.4 Impact on business if TQM is poorly implemented  

• Lack of training/skills development √ may lead to poor quality  products. √ 
• Decline in sales, √ as returns from unhappy customer's increase. √
• Decline in productivity, √ because of stoppages. √ 
• Investors could withdraw their investment, √ if there is a decline in  profits. √ 
• Bad publicity √ due to poor quality products supplied. √ 
• High staff turnover √, because of poor skills development. √ 
• Unrealistic deadlines √ may not be achieved. √ 
• Businesses may not be able to make/afford the necessary changes √ that will satisfy customers’ needs. √ 
• Loss of customers √ may lead to bankruptcy/closure.√ 
• Undocumented quality control systems/processes√ could result in  error/deviations from pre-set quality standards. √ 
• Any other relevant answer related to the negative impact on businesses  if TQM is poorly implemented.  Max. (12)  

8.5 Application of PDCA model/cycle in improving the quality of products  
Plan  

• Businesses should identify the problem and develop a plan for  improvement to processes and systems. √√ 
• Answer questions such as ʽWhat to do’/ ʽHow to do it’. √√ 
• Plan the new method and approach in order to improve the quality of  their products. √√  Sub-max. (4)  

 Do  

• Businesses should implement the change on a small scale. √√ 
• Implement the processes and systems as planned. √√ Sub-max. (4)  

Check/Analyse  

• Use data to analyse the results of change. √√ 
•  Determine whether it made a difference and what needs to be  improved. √√
• Check whether the processes are working effectively. √√ 
• Businesses should assess/test and establish if it is working/if things are  going according to plan. √√  Sub-max. (4)  

 Act as needed  

• Implement the improvement to meet the needs of the business. √√
• Devise strategies on how to continually improve. √√ 
• If the change was successful, implement it on a wider scale. √√ 
•  Businesses should continuously revise the process until they get it right  the first time.√√ 
•  Any other relevant answer related to how businesses can apply the  PDCA model/cycle to improve the quality of their products.  Sub-max. (4)    

NOTE: 

1. The steps could be integrated in the application. 
2.  Award a maximum of THREE (3) marks for only   mentioning the steps of the PDCA model.  Max. (14)  

8.6 Conclusion  

• Businesses should put good quality management systems in place in  order to remain sustainable and competitive in the market place. √√
• Businesses that implement the PDCA model have a competitive  advantage that keep abreast with the latest developments in the  market.√√
• Any other relevant conclusion related to the Total Quality Management.  (Any 1 x 2) (2)  [40]  

QUESTION 8: BREAKDOWN OF MARK ALLOCATION  

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