MARKS: 150 

TIME: 2 hours 

INSTRUCTIONS AND INFORMATION 

Read the following instructions carefully before answering the questions.

1. This question paper consists of THREE sections and covers TWO main topics. 
   • SECTION A: COMPULSORY 
   • SECTION B: Consists of THREE questions. 
     • Answer any TWO of the three questions in this section. 
   • SECTION C: Consists of TWO questions. 
     • Answer any ONE of the two questions in this section. 
2. Read the instructions for each question carefully and take particular note of what is  required.
   • Note that ONLY the answers to the first TWO questions selected in SECTION B and  the answers to the FIRST question selected in SECTION C will be marked. 
3. Number the answers correctly according to the numbering system used in this question  paper. NO marks will be awarded for answers that are numbered incorrectly. 
4. Except where other instructions are given, answers must be written in full sentences. 
5. Use the mark allocation and nature of each question to determine the length and depth  of an answer. 
6. Use the table below as guide for mark and time allocation when answering each  question.

7. Begin the answer to EACH question on a NEW page, for example QUESTION 1 – new  page, QUESTION 2 – new page, et cetera. 

8. You may use a non-programmable calculator.

9. Write neatly and legibly

SECTION A (COMPULSORY) 

QUESTION 1 

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

1.1.1 This Act protects employers from a financial burden should employees  be involved in an accident at the workplace: 

A Consumer Protection Act, 2008 (Act 68 of 2008) 
B Skills Development Act (SDA), 1998 (Act 97 of 1998) 
C Compensation for Occupational Injuries and Diseases Act (COIDA), 1997 (Act 61 of 1997) 
D Labour Relations Act (LRA), 1995 (Act 66 of 1995) 

1.1.2 Vusi, a vegetable farmer, implemented the ... integration strategy when  he bought the fruit and vegetable stall that sells his products. 

A backward 
B forward 
C intensive 
D horizontal 

1.1.3 Khanya Paints operates in the … sector as they specialise in the  manufacturing of paint. 

A secondary 
B primary 
C tertiary 
D economic 

1.1.4 The human resources activity which ensures that all CVs received are  evaluated against pre-determined criteria: 

A Training 
B Selection 
C Placement 
D Recruitment 

1.1.5 The implementation of change on a smaller scale by Thembi Cosmetics, is the … step of the PDCA model. 

A plan 
B act 
C check 
D do  (5 x 2) (10)

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

1.2.1 Global Express contributes 1% of their payroll to SARS as a … to train  employees. 

1.2.2 Environmental scanning technique that studies both internal and  external business environments. This is known as … 

1.2.3 A/An … specify duties carried out by employee in exchange for remuneration by the employer. 

1.2.4 The … outlines the minimum requirements that a human resources  manager must consider when a salary package is offered to a new  employee. 

1.2.5 Blue Sky Airlines apply … by conducting market research to analyse the  needs of their customers. (5 x 2) (10)

1.3 Choose a description from COLUMN B that matches a term in COLUMN A.  Write only the letter (A–J) next to the question numbers (1.3.1 to 1.3.5) in the  ANSWER BOOK, for example 1.3.6 K. 

(5 x 2) (10) 

TOTAL SECTION A: 30

SECTION B 

Answer ANY TWO questions in this section. 

NOTE: Clearly indicate the QUESTION NUMBER of each question that you choose.  The answer to EACH question must start on a NEW page, e.g. QUESTION 2 on a NEW page, QUESTION 3 on a NEW page, etc. 

QUESTION 2: BUSINESS ENVIRONMENTS 

2.1 List FOUR pillars of the Broad-Based Black Economic Empowerment Act  (BBBEE), 2003 (Act 53 of 2003). (4) 

2.2 Outline the role of SETAs in supporting the Skills Development Act, 1998 (Act  97 of 1998). (6) 

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

2.3.1 Identify TWO types of Porter’s Five Forces applied from the scenario  above. Motivate your answer by quoting from the scenario above. 

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

2.4 Explain the strategic management process. (4) 

2.5 Discuss ways in which businesses can comply with the Employment Equity Act  (EEA), 1998 (Act 55 of 1998). (6)

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

2.6.1 Name the Act that is applicable to Tau Aluminium. (2) 

2.6.2 Quote TWO actions regarded as non-compliance by the Act identified  in QUESTION 2.6.1. (2) 

2.6.3 Explain other actions regarded as non-compliance by the Act. (4) 

2.7 Suggest ways in which businesses could comply with the Consumer  Protection Act (CPA), 2008 (Act 68 of 2008). (6) 

QUESTION 3: BUSINESS OPERATIONS 

3.1 Name any FOUR reasons for the termination of an employment contract. (4)

3.2 Outline the role of the interviewee during the interview. (6)

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

3.3.1 Quote an example of a job description and job specification from the  scenario above. (2) 

3.3.2 Evaluate the impact of fringe benefits on businesses. (4)

3.4 Discuss the benefits of induction for businesses. (4) 

3.5 Outline the roles of quality circles as part of continuous improvement to  processes and systems. (6) 

3.6 Elaborate on the meaning of TQM. (4) 3.7 Read the scenario below and answer the questions that follow.

3.7.1 Identify TWO quality indicators applied by NBB. Motivate your answer  by quoting from the scenario above. 

Use the table below as a GUIDE to answer QUESTION 3.7.1. 

3.8 Advise businesses on the impact of TQM if poorly implemented. (4) [40]

QUESTION 4: MISCELLANEOUS TOPICS 

BUSINESS ENVIRONMENT 

4.1 State any FOUR consumer rights as stipulated in the Consumer Protection Act  (CPA), 2008 (Act 68 of 2008). (4) 

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

4.2.1 Quote TWO challenges for SML’s business and classify EACH  challenge according to the business environment. 

Use the table below as a GUIDE to answer QUESTION 4.2.1. 

4.3 Explain the following provisions of the Basic Conditions of Employment Act  (BCEA), 1997 (Act 75 of 1997): 

4.3.1 Parental leave (4)

4.3.2 Overtime (4)

4.4 Advise businesses on the advantages of diversification strategies. (4)

BUSINESS OPERATIONS 

4.5 Identify each of the method of recruitment used by ZK Enterprise in each of  the statements below: 

4.5.1 ZK Enterprise used its intranet to recruit suitable employees 

4.5.2 The recruitment sources and processes are very expensive and requires  background checks (4) 

4.6 Outline the placement procedure. (4)

4.7 Explain the Unemployment Insurance Fund (UIF) as a benefit required by law. (4) 

4.8 Discuss advantages of adequate financing and capacity as a total quality  management (TQM) element on large businesses. (4) . 

4.9 Advise businesses on the quality indicators of the production function. (4) [40] 

TOTAL SECTION B: 80

SECTION C 

Answer ONE question in this section. 

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

QUESTION 5: BUSINESS ENVIRONMENT (BUSINESS STRATEGIES) 

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

• Outline the advantages of intensive strategies. 
• Explain THREE types of intensive strategies. 
• Discuss how the following PESTLE factors pose challenges to businesses:
  • Economic 
  • Legal 
  • Environmental 
• Advise businesses on the steps in strategy evaluation. 

QUESTION 6: BUSINESS OPERATIONS (QUALITY OF PERFORMANCE) 

Keeping the above statement in mind, write an essay on the following aspects: 

• Outline the difference between quality control and quality assurance. • Explain the benefits of a good quality management system. 
• Discuss the impact of monitoring and evaluation as an element of TQM on large  businesses. 
• Suggest ways in which TQM can reduce the cost of quality. 

TOTAL SECTION C: 40 

GRAND TOTAL: 150

MARKING GUIDELINE

NOTES TO MARKERS 

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  cross the province 

(d) Implement appropriate measures in the teaching, learning and assessment of the subject at schools/institutions of learning 

1. For marking and moderation purposes, the following colours are recommended:  

Marker:  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. 

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: 

12.1 Advise, name, state, 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 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. 

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 guidelines) 
  • 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. 

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 awarded 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 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. 

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.

SECTION A

QUESTION 1 

1.1

1.1.1 C √√ 

1.1.2 B √√ 

1.1.3 A √√ 

1.1.4 B √√ 

1.1.5 D √√  (5 x 2) (10) 

1.2

1.2.1 skill development levy √√ 

1.2.2 SWOT analysis √√ 

1.2.3 employment contract √√ 

1.2.4 Basic Conditions of Employment Act √√ 

1.2.5 total client satisfaction √√  (5 x 2) (10) 

1.3

1.3.1 C √√ 

1.3.2 D √√ 

1.3.3 I √√ 

1.3.4 G √√ 

1.3.5 J √√  (5 x 2) (10) 

TOTAL SECTION A: 30 

BREAKDOWN OF MARKS

SECTION B 

Mark the FIRST TWO answers only. 

QUESTION 2: BUSINESS ENVIRONMENTS 

2.1 Pillars of BBBEE 

• Ownership √ 
• Management control √ 
• Skills development √ 
• Enterprise and supplier development/ESD √ 
• Socio economic development √ 

NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 

2.2 Role of SETAs in supporting the Skills Development Act/SDA

• Develop sector skills plans in line with the National Skills Development strategy. √√ 
• Draw up skills development plans for their specific economic sectors. √√
• Approve workplace skills plans and annual training reports. √√ 
• Allocate grants to employers, education and training providers. √√ 
• Pay out grants to companies that are complying with the requirements of the  Skills Development Act. √√ 
• Monitor/Evaluate the actual training by service providers. √√ 
• Promote and establish learnerships. √√ 
• Register learnership agreements/learning programmes. √√ 
• Provide training material/programmes for skills development facilitators. √√
• Provide accreditation for skills development facilitators. √√ 
• Oversee training in different sectors of the South African economy. √√
• Identify suitable workplaces for practical work experience. √√ 
• Collect levies and pay out grants as required. √√ 
• Report to the Director General. √√ 
• Any other relevant answer related to the role of SETAs in supporting the SDA. Max. (6) 

2.3 Business strategies 

2.3.1 Porters’ Five Forces from the scenario 

NOTE:

1 Mark the first TWO (2) only. 

2. Do not award marks for the motivation if the forces were incorrectly  identified. 

3 Award marks for the forces even if the quote is incomplete. Max. (6)

2.4 Strategic management process 

Option 1 

• Businesses should have a clear vision, mission statement/realistic objective √ in  place. √ 
• Identify opportunities/weaknesses/strengths/threats √ by conducting  environmental scanning/situational analysis. √ 
• Tools available for environmental scanning √ may include a SWOT analysis/  Porter's Five Forces model/PESTLE analysis/industrial analysis tools. √
• Formulate alternative strategies √ to respond to the challenges. √ 
• Develop (an) action plan(s), √ including the tasks to be done/deadlines to be  met/resources to be procured. √ 
• Implement selected strategies √ by communicating it to all stakeholders/  organising business resources/motivating staff. √ 
• Continuously evaluate/monitor/measure strategies √ in order to take corrective  action. √ 
• Any other relevant answer related to the strategic management process.

OR Option 2 

• Businesses should review/analyse/re-examine √ their vision/mission  statement. √ 
• Conduct an environmental analysis using models √ such as SWOT/PESTLE/  Porter's Five Forces. √ 
• Formulate a strategy, √ such as a defensive/retrenchment strategy. √
• Implement a strategy, √ using a template such as an action plan. √
• Control/Evaluate/Monitor the implemented strategy √ to identify gaps/deviations  in implementation. √ 
• Take corrective action √ to ensure goals/objectives are met. √ 
• Any other relevant answer related to the strategic management process. Max. (4) 

2.5 Ways in which businesses can comply with the Employment Equity Act/EEA

• Businesses should guard, √ against discriminatory appointments. √
• Assess the racial composition √ of all employees, including senior management. √ 
• Ensure that there is equal representation of all racial groups/demographics √ in every level of employment. √ 
• Clearly define the appointment process, √ so that all parties are well informed. √
• Ensure that diversity/inclusivity √ is achieved in the workplace. √ 
• Prepare an employment equity plan √ in consultation with employees. √
• Compile employment equity plans √ that indicate how they will implement  affirmative action. √ 
• Ensure that affirmative action measures √ promote diversity in the workplace. √
• Implement √ the employment equity plan. √ 
• Implement affirmative action measures√ to redress disadvantages experienced  by designated groups√ 
• Submit the employment equity plan√ to the Department of Labour. √
• Assign one or more senior managers√ to ensure implementation and monitoring  of the employment equity plan. √ 
• Eliminate barriers√ that have an adverse impact on designated groups. √
• Regularly report to the Department of Labour √ on progress in implementing the  plan. √
• Display a summary of the Act √ where employees can clearly see/have access  to the document. √ 
• Conduct medical/psychological tests fairly √ to employees/when deemed  necessary √/Use certified psychometric tests to assess applicants/ employees √ to ensure that suitable candidates are appointed. √ 
• Ensure that the workplace represents the demographics of the country √ at all  levels. √ 
• Restructure/Analyse current employment policies/practices/procedures √ to  accommodate designated groups. √ 
• Retrain/Develop/Train designated groups √ through skills development  programmes. √ 
• Employees must be paid equally √ for work of equal value. √ 
• Any other relevant answer related to ways in which businesses can comply  with the EEA.  Max. (6) 

2.6 Legislation 

2.6.1 Labour Relation Act, 1995 (Act 66 of 1995) √√ / LRA √√ (1 x 2) (2) 

2.6.2 Action regarded as non-compliant with the Labour Relation Act

• • TA employees were embarking on a strike for better wages and were  dismissed. √ 
  • Employees were not allowed to join trade unions. √ 

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

2.6.3 Other action regarded as non-compliance with Labour Relation Act

• • Dismissing employees unfairly or illegally. √√ 
  • Refusing to provide union representatives leave to attend trade union  matters. √√ 
  • Forcing employees to give up their trade union membership and  representation. √√ 
  • Refusing to give workplace forum members paid time off for attending  meetings during working hours. √√ 
  • Breaching of collective agreements/resolution mechanisms by either  employer/employee. √√ 
  • Cancellation of employees' contracts by a new employer when a  business is sold. √√ 
  • Refusing the establishment of workplace forums. √√ 
  • Any other relevant answer related to other action regarded as non compliance with Labour Relation Act. 

NOTE: Mark the first TWO (2) only. 

2.7 Ways in which businesses could comply with the Consumer Protection Act  (CPA), 2008 (Act 68 of 2008).  

• Disclose prices of all products on sale. √√ 
• Provide adequate training to staff on the CPA. √√ 
• All agreements must provide for a five-day cooling off period. √√ 
• Ensure that goods/services offered are standardised/of the same quality. √√
• Comply with the requirements regarding promotional competitions. √√
• Comply with requirements regarding the display of information on labels/  packaging. √√ 
• Display the name of the business on all business documents, e.g.  invoices/contracts. √√ 
• Bundling of goods/services should benefit consumers, e.g. offering a  cellphone and a tablet at a special price. √√ 
• Implement measures that will facilitate complaints, e.g. suggestion boxes. √√
• Any other relevant answer related to ways in which businesses could comply  with the CPA. Max. (6) 

BREAKDOWN OF MARKS

QUESTION 3: BUSINESS OPERATIONS 

3.1 Reasons for the termination of an employment contract 

• The employer may dismiss an employee for a valid reason(s), such as  unsatisfactory job performance/misconduct. √ 
• Employer may no longer have work for redundant employees/cannot fulfil the  contract/is restructuring. √ 
• The employer may retrench some employees due to insolvency/may not be able  to pay the employees. √ 
• Employees decided to leave/resign voluntarily for better job opportunities. √
• An employee may have reached the pre-determined age for retirement. √
• Incapacity to work due to illness/injuries. √ 
• By a mutual agreement between the employer and employee. √ 
• The duration of the employment contract expires/comes to an end. √
• Any other relevant answer related to the reasons for the termination of an  employment contract. 

NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 

3.2 Role of the interviewee during the interview. 

• Greet the interviewer by name √ with a solid handshake and a friendly smile. √
• Listen carefully to the questions √ before responding. √ 
• Make eye contact, √ and have good posture/body language. √ 
• Show confidence √ and have a positive attitude/be assertive. √ 
• Be inquisitive √ and show interest in the business. √ 
• Ask clarity seeking questions √ about the job/position offered. √ 
• Show respect √ and treat the interview with its due importance. √ 
• Be honest about mistakes √ and explain how you dealt with them. √
• Know your strengths and weaknesses √ and be prepared to explain them. √
• Thank the interviewer for the opportunity given √ to be part of the interview. √
• Any other relevant answer related to role of the interviewee during the  interview. Max. (6) 

3.3 Human Resource 

3.3.1 Job description and Job specification from the scenario 

Max. (2) 

3.3.2 Impact of fringe benefits on businesses 

Positives/Advantages 

• • Attractive fringe benefit packages √ may result in higher employee  retention/reduces employee turnover. √ 
  • Attracts qualified/skilled/experienced employees √ who may positively  contribute towards the business goals/objectives. √ 
  • Improves productivity √ resulting in higher profitability. √ 
  • It increases employee satisfaction/loyalty √ as they may be willing to  go the extra mile. √ 
  • Businesses save money √ as benefits are tax deductible. √
  • Fringe benefits can be used as leverage √ for salary negotiations. √
  • Any other relevant answer related to the positive impact/advantages of  fringe benefits on businesses.

AND/OR 

Negatives/Disadvantages 

• • Businesses which cannot offer fringe benefits √ fails to attract skilled  workers. √ 
  • Businesses which offer employees different benefit plans √ may create  resentment √/Employees who receive less benefit may not be motivated  √ resulting in lower productivity. √ 
  • It can create conflict/lead to corruption √ if allocated unfairly. √ 
  • Fringe benefits are additional costs √ that may result in cash flow  problems. √ 
  • Decreases business profits, √ as incentive/package/remuneration costs  are higher. √ 
  • Administrative costs increase √ as benefits need to be correctly  recorded for tax purposes. √ 
  • Workers only stay with the business for fringe benefits, √ and may not  be committed/loyal to the tasks/business. √ 
  • Businesses have to pay advisors/attorneys √ to help them create benefit  plans that comply with legislation. √ 
  • Errors in benefit plans √ may lead to costly lawsuits/regulatory fines. √
  • Any other relevant answer related to the negative impact/disadvantages  of fringe benefits on businesses. Max. (4) 

3.4 Benefits of induction for businesses 

• Allows new employees to settle in quickly √ and work effectively. √ 
• Ensures that new employees understand the rules √ and restrictions in the  business. √ 
• New employees may establish relationships √ with fellow employees at different  levels. √ 
• Make new employees feel at ease in the workplace, √ which reduces anxiety/  insecurity/fear. √ 
• The results obtained during the induction process √ provide a base for focused  training. √ 
• Increases quality of performance/productivity √ as employees are familiar with  the work processes. √ 
• Minimises the need for on-going training √ and development. √ 
• Employees will be familiar with organisational structures √ such as their  supervisors/low level managers. √ 
• Opportunities are created for new employees √ to experience/explore different  departments. √ 
• New employees will understand their role/responsibilities √ concerning safety  regulations and rules. √ 
• New employees will know the layout of the building/factory/offices, √ which  saves production time. √ 
• Learn more about the business so that new employees understand their  roles/responsibilities √ in order to be more efficient. √ 
• Company policies are communicated, √ regarding conduct and procedures/ safety and security/employment contract/conditions of employment/ working  hours/leave. √ 
• Realistic expectations for new employees √ as well as the business are created. √
• New employees may feel part of the team, √ resulting in positive morale and  motivation. √ 
• Employees may have a better understanding of business policies √ regarding  ethical/professional conduct/procedures/CSR. √ 
• Reduces the staff turnover √ as new employees have been inducted properly. √ - Any other relevant answer related to the benefits of induction for businesses. Max. (4) 

3.5 Roles of quality circles as part of continuous improvement to processes and  systems 

• 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 processes and systems 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 business  operations. √√ 
• Increase employees' morale and motivation to boost the team spirit in achieving  organisational goals. √√ 
• Contribute towards the improvement and development of the organisation. √√
• Reduce costs of redundancy/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/commitment to the organisational 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 roles of quality circles as part of  continuous improvement to processes and systems. Max. (6) 

3.6 Meaning of TQM 

• Integrated system/methodology/process √ applied throughout an organisation. √
• Enables businesses to design/produce/provide quality product/service √ for  customers. √ 
• Thought revolution in management, businesses √ and all business activities is  operated with customer orientation. √ 
• Enables businesses to continuously improve on the service delivery of  product/service √ to satisfy customer needs. √ 
• Management ensures each employee is responsible/accountable for quality √  of his/her work/actions. √ 
• Any other related answer related to the meaning of TQM. Max. (4)

3.7 Quality indicators

3.7.1 Quality indicators of the business functions from the scenario 

NOTE: Mark the first TWO (2) only. Max. (6) 

3.8 Impact of TQM if poorly implemented 

• Setting unrealistic deadlines that may not be achieved. √√ 
• Employees may not be adequately trained resulting in poor quality  products. √√ 
• Decline in productivity because of stoppages. √√ 
• Businesses may not be able to make the necessary changes to  products/services in order to satisfy the needs of customers. √√ 
• The reputation/image of the business may suffer because of poor  quality/defective goods. √√ 
• Customers will have many alternatives to choose from and the impact could  be devastating to businesses. √√ 
• Investors might withdraw investments, if there is a decline in profits. √√
• Decline in sales as more goods are returned by unhappy customers. √√
• High staff turnover because of poor skills development. √√ 
• Undocumented/Uncontrolled quality control processes/systems could result in  errors/deviations from pre-set quality standards. √√ 
• Any other relevant answer related to the impact of TQM if poorly implemented  by businesses. Max. (4) 

BREAKDOWN OF MARKS

QUESTION 4: MISCELLANEOUS TOPICS 

BUSINESS ENVIRONMENTS 

4.1 Consumer rights as stipulated in the Consumer Protection Act/CPA - Right to choose √ 

• Right to privacy √ 
• Right to fair and honest dealings √ 
• Right to disclosure and information √ 
• Right to fair and responsible marketing √ 
• Right to fair value/good quality and safety √ 
• Right to accountability by suppliers √ 
• Right to fair, just and reasonable terms and conditions √ 
• Right to equality in the consumer market √ 

NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 

4.2 Business environments and challenges 

NOTE:

1. Mark the first challenge for each environment only. 

2. The answer does not have to be in tabular format. 

3. If the business environment is not linked to the challenge, mark the  challenge only. 

4. Award full marks for the business environment even if the challenge  is not quoted in full. 

5. Accept responses in any order. Max. (4) 

4.3 Provisions of the BCEA 

4.3.1 Parental Leave 

• • An employee who is a parent is entitled to ten (10) consecutive day's  parental leave √ after the birth of his/her child irrespective of gender. √
  • Parental leave is unpaid √ but the employee/parent may claim from  the Unemployment Insurance Fund/UIF. √ 
  • The employer must be informed/notified at least one month √ before  the excepted due date of birth. √ 
  • Adoption leave √ is applicable to the adoption of a child below the age  of two (2) years. √ 
  • One parent of the adopted child is entitled to ten (10) weeks adoption  leave √ to take care of the child, while the other parent is entitled to ten  (10) consecutive day's normal parental leave. √ 
  • Commissioning parental leave is only applicable to surrogate motherhood √ where one parent is entitled to ten (10) weeks commissioning parental leave to take care of the child, while the other  parent is entitled to ten (10) consecutive day’s normal parental leave. √
  • Any other relevant answer related to parental leave as a provision of  the BCEA. Max. (4)

4.3.2 Overtime  

• • Workers must agree √ to work overtime. √ 
  • Workers cannot work more than three hours, √ overtime per day √/ Workers cannot work more than 10 hours √ overtime per week √ 
  • Workers must be compensated at least one and half times the normal rate of pay √ for overtime worked on weekdays/Saturdays. √ 
  • Workers must be compensated double the normal rate of pay √ for  overtime worked on Sundays/public holidays. √ 
  • Overtime must be paid either at the specified rate √ or an employee  may agree to receive paid time off. √ 
  • The Minister of Labour may prescribe the maximum permitted working hours, including overtime, √ for health and safety reasons for  a certain category of work. √ 
  • Any other relevant answer related to overtime as one of the provisions  of the BCEA. Max. (4) 

4.4 Advantages of diversification strategies 

• Increase sales and business growth. √√ 
• Improves the business brand and image. √√ 
• Reduces the risk of relying only on one product for sales/revenue/income. √√
• More products can be sold to existing customers and additional new markets  can be established. √√ 
• Businesses gain more technological capabilities through product modification. √√ 
• Diversification into several industries or product lines can help create a  balance during economic fluctuations. √√ 
• Businesses produce more output using less inputs as one factory may be used  to manufacture more products. √√ 
• Any other relevant answer related to the advantages of diversification  strategies. Max. (4) 

BUSINESS OPERATIONS 

4.5 Methods of recruitment from the statement 

4.5.1 Internal recruitment √√ 

4.5.2 External recruitment √√ (2 x 2) (4) 

4.6 Placement procedure: 

• Businesses should outline the specific responsibilities of the new position/ expectations/skills. √√ 
• 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 as an activity  of the human resource function. Max. (4)

4.7 Unemployment Insurance Fund (UIF) as a benefit required by law.

• The UIF provides benefits to workers who have been working √ and become  unemployed for various reasons. √ 
• An employer contributes 1% of basic wages/salary towards the UIF, √  therefore reducing the expense of providing UIF benefits themselves. √
• Employees contribute 1% √ of their basic wage to the UIF. √ 
• An employer pays 2% directly to the UIF √ on behalf of the employee. √
• All employees who work 24 hours or more per month √ are required to be  registered for UIF/contribute to the UIF. √ 
• It is an affordable contribution that makes it possible for businesses √ to  appoint substitute workers in some instances. √ 
• Contributions are paid √ to the Unemployment Insurance Fund (UIF) /the  South African Revenue services. √ 
• Businesses are compelled to register their employees with the fund √ and to  pay contributions to the fund. √
• Any other relevant answer related to Unemployment Insurance Fund (UIF) as  a benefit required by law. Max. (4) 

4.8 Advantages of adequate financing and capacity as a TQM element

• Large businesses have sufficient financing √ to test everything before  implementing. √ 
• They can afford to have systems in place to prevent errors √ in processes/ defects in raw materials/products. √ 
• Able to afford product research/market researchers √ to gather information  about products/customers. √/Large businesses can fund programmes √ aimed  at improving quality processes. √ 
• Large businesses can afford √ to purchase quality raw materials and  equipment. √ 
• Any other relevant answer related to the advantages of adequate financing  and capacity as a TQM element on large businesses. Max. (4) 

4.9 Quality indicators of the production function 

• Provide high quality services/products according to specifications. √√
• The production/operating processes of a business should be done correctly  through proper production planning and control. √√ 
• Products and services should be produced at the lowest possible cost to allow  for profit maximisation. √√ 
• Businesses should clearly communicate the roles and responsibilities to the  production workforce. √√ 
• Products must meet customers' requirements by being safe, reliable and  durable. √√ 
• Businesses should have good after-sales services and warrantees. √√
• Empower workers so that they can take pride in their workmanship. √√ - Get accreditation from the SABS/ISO 9001 to ensure that quality products are  being produced. √√ 
• Specify the product or service standards and take note of the factors that  consumers use to judge quality. √√
• Monitor processes and find the root causes of production problems. √√
• Implement quality control systems to ensure that quality products are  consistently being produced. √√ 
• Utilise machines and equipment optimally. √√ 
• Accurately calculate the production costs. √√ 
• Select the appropriate production system e.g. mass/batch/jobbing. √√
• Any other relevant answer related to the quality indicators of the production  function. Max. (4) 

BREAKDOWN OF MARKS 

TOTAL SECTION B: 80

SECTION C 

Mark the FIRST question only. 

QUESTION 5: BUSINESS ENVIRONMENTS (BUSINESS STRATEGIES) 

5.1 Introduction 

• Businesses conduct extensive sales promotions when applying various types  of intensive strategies. √ 
• Businesses uses intensive strategies to expand their product lines/scale of  operations. √ 
• Intensive strategies require intensive effort by the businesses to improve its  competitive advantage. √ 
• The PESTLE factors enable businesses to measure the negative impact of  external factors on their operations. √ 
• Businesses that apply the PESTLE analysis respond quickly to challenges  posed by the external environment. √ 
• A constant evaluation of business strategies allows businesses to review their  goals and develop additional strategies. √ 
• Any other relevant introduction related to the advantages of intensive  strategy/types of intensive strategies/challenges posed by economic/legal  PESTLE factors/steps in strategy evaluation. (Any 2 x 1) (2) 

5.2 Advantages of intensive strategies 

• Increased market share reduces the business's vulnerability to actions of  competitors. √√ 
• Increase in sales/income/profitability due to variety of advertising campaigns. √√ 
• Improved service delivery may improve business image. √√ 
• A business may have more control over the prices of products/services. √√
• Gain customer loyalty through effective promotion campaigns. √√ 
• Decrease in prices may influence customers to buy more products. √√
• Regular sales to existing customers may increase. √√ 
• Eliminate competitors and dominate market prices. √√ 
• Enables a business to focus on markets/well researched quality products that  satisfy the needs of customers. √√
• Any other relevant answer related to the advantages of intensive strategies for  a business. Max. (10)

5.3 Types of intensive strategies 

Market penetration √√ 

• Existing products penetrate the market at lower prices, but later prices are  increased. √ 
• Businesses focus on selling existing products into existing markets to increase  their market share. √ 
• Businesses use market research on existing clients to decide on how to  improve their marketing mix. √ 
• Aggressive marketing campaigns such as reducing prices are used to attract  potential/existing clients. √ 
• Businesses use this strategy to increase awareness of the products and  customer loyalty. √ 
• Any other relevant answer related to market penetration as a type of intensive  strategy. 

Strategy  (2)  
Discussion  (2)  
Sub-max. (4) 

Market development √√ 

• It is a growth strategy where businesses aim to sell their existing products in  new markets. √ 
• Businesses target consumers in a potential market that is outside of its normal  target market. √ 
• Increasing sales of existing products by finding new ways to develop new  markets. √ 
• Any other relevant answer related to market development as a type of  intensive strategy. 

Strategy  (2)  
Discussion  (2)  
Sub-max. (4) 

Product development √√ 

• It is a growth strategy where businesses aim to introduce new products into  existing markets/modify an existing product. √ 
• Businesses generate new ideas/develop new products/services. √ 
• Businesses conduct test marketing/market research to establish whether  new products will be accepted by existing customers. √ 
• New products may be different/of a higher quality than those of competitors. √
• Any other relevant answer related to product development as a type of  intensive strategy. 

Strategy  (2)  
Discussion  (2)  
Sub-max. (4) 

NOTE: Mark the first THREE (3) strategies only.  Max. (12)

5.4 Challenges posed by the PESTLE factors 

Economic 

• High inflation/interest may decrease the market share of business √ as  customers cannot afford high prices. √/Increase in taxes will result in lower  customer spending. √ 
• Loans may be expensive √ due to high interest rates. √ 
• Fluctuation in foreign currency √ may restrict imports. √ 
• Decrease in foreign direct investment √ by important foreign investors. √
• Any other relevant answer related to how the economic factor as a PESTLE  element pose challenge to businesses. 
  Sub-max. (4) 

Legal 

• Implication of various Acts that may have a direct impact influence/ √ on a  business, e.g. CPA/BCEA. √ 
• Legal requirements for operating certain types of businesses √ are time consuming. √ 
• High legal costs involved in obtaining a licence/trademark/patent/copyright √  may prevent some establishment. √ 
• Legalities of business contracts may limit √ business operations. √ 
• Any other relevant answer related to how the legal factor as a PESTLE element  pose challenge to businesses. 
  Sub-max. (4) 

Environmental 

• Chemicals/Ingredients should be clearly indicated on labels/packaging √ to  inform customers about possible side effects/correct use of products. √
• Implement cost effective measures √ to dispose medical waste. √ 
• Implement recycling measures √ to prevent pollution of the environment/Use  packaging that is re-usable/recyclable. √ 
• Engage in environmentally sustainable practices √ such as the conservation/ preservation of natural resources. √ 
• Any other relevant answer related to ways in which businesses could deal with  the environmental challenges as a PESTLE factor. 
  Sub-max. (4) 
  Max. (12) 

5.5 Steps when evaluating strategies 

• Examine the underlying basis of a business strategy. √√ 
• Look forward and backward into the implementation process. √√ 
• Compare the expected performance with the actual performance. √√
• Measure the 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 as envisaged when strategies were  implemented. √√ 
• Consider the impact of the strategic implementation in the internal and external  environments of the business. √√ 
• Any other relevant answer related to steps that businesses should consider  when evaluating strategies. 

NOTE: Accept steps in any order. Max. (12)

5.6 Conclusion 

• Intensive strategies assist businesses to improve the performance of existing  products in the market. √√ 
• Businesses must develop mechanism to protect itself from an industry’s downturn. √√ 
• An in-depth analysis of the challenges posed by economic, legal and  environment may enable businesses to stay ahead of their competitors. √√ - Businesses should be aware of the role of government in the implementation  of Acts. √√ 
• The effective implementation of the PESTLE factors ensures that businesses  find ways to deal with challenges posed by external environment. √√ 
• Any other relevant conclusion related to the advantages of Intensive strategies/types of strategies/challenges posed by economic/legal/ environmental PESTLE analysis factors/steps in strategy evaluation. (Any 1 x 2) (2) 

QUESTION 5: BREAKDOWN OF MARKS 

*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 (QUALITY OF PERFORMANCE) 

6.1 Introduction 

• Businesses that implement quality concepts enjoy the benefit of good quality  products and services. √ 
• Manufactured goods must be quality assured throughout the production  cycle. √ 
• A good management system includes the quality control and quality  assurance of products. √ 
• Monitoring and evaluation of quality process allows businesses to enhance  existing practices and satisfy consumers’ needs beyond their expectations.√
• TQM helps to design, produce/provide quality products at a lower cost. √
• Any other relevant introduction related to the difference between quality  control and quality assurance/benefits of a good quality management  system/ the impact of monitoring and evaluation /ways in which TQM  reduction of the cost of quality. (Any 2 x 1) (2) 

6.2 Distinction between quality control and quality assurance 

NOTE:

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

2. The differences do not have to link but must be clear. 

3. Award a maximum of FOUR (4) marks if the differences are not clear/Mark either quality control or quality assurance only. Max. (8)

6.3 Benefits of a good quality management system 

• Effective customer services are rendered, √ resulting in increased customer  satisfaction. √ 
• Time and resources √ are used efficiently. √ 
• Productivity increases √ through proper time management √/using high  quality resources. √ 
• Products/Services are constantly improved √ resulting in increased levels of  customer satisfaction. √ 
• Vision/Mission/Business goals √ may be achieved. √ 
• A 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/Financial sustainability √ as more customers  improves profitability √ 
• Improves business image √ as there are less defects/returns. √ 
• Any other relevant answer related to the benefits of a good quality  management system. Max. (12) 

6.4 Impact of monitoring and evaluation 

Positives/Advantages 

• Large businesses may be better equipped √ to get things right the first time. √
• Improve performance √ and increase productivity/sales/profitability. √
• Modify interventions √ that may improve the efficient use of resources. √
• Monitoring and evaluating quality processes √ prevent product defects/ minimises customer complaints. √ 
• Good quality control checks/procedures minimises √ the replacement/ breakdown of items/equipment/machinery regularly. √ 
• Improve current √ and future management of quality outputs/outcomes/ impact. √ 
• Provide clear indication about quality aspects √ that are contributing to the  achievement of goals/targets. √ 
• Cost of production is reduced √ as deviations from set standards can be  corrected. √ 
• Allows for quality control checks √ and procedures at key points. √ 
• Quality circles meet on regular basis √ to evaluate the progress in terms of  quality. √ 
• Continuous research is conducted on latest developments √ to key  performance indicators are carefully selected to monitor and evaluate the  outcome. √ 
• Benchmarking is used to find best practices √ in order to determine the  competitive position of the business. √ 
• Strategies are revised in order to improve the quality of the product √ and  services/business image. √ 
• Any other relevant answer related to the positive impact / advantages of  monitoring and evaluation as an element of TQM on large businesses. 

AND/OR

Negatives/Disadvantages 

• Large businesses are often divided, √ and the departments work in silos. √
• It is difficult to get everyone to communicate effectively √ and often  messages are not received correctly. √ 
• It often takes longer to detect problems √ or respond to weaknesses. √
• It is not viable/possible to check the quality √ of all the products. √ 
• Limited active/accurate monitoring and evaluation of quality processes, √ as some managers may view/apply this TQM element as a mere routine/ formality. √ 
• Any other relevant answer related to the positive impact/ advantages of  monitoring and evaluation as an element of TQM on large businesses. Max. (16) 

6.5 Ways in which total quality management/TQM can reduce the cost of  quality 

• Introduce quality circles to discuss ways of improving the quality of their  work/workmanship. √√ 
• Schedule activities to eliminate duplication of tasks. √√ 
• Share responsibilities for quality output amongst management and  workers. √√ 
• Train employees at all levels, so that everyone understands their roles 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 TQM can reduce the cost  of quality. Max. (10) 

6.6 Conclusion 

• Businesses implement quality control and quality assurance in their quest for  zero defects and sustainability. √√ 
• Every business should have a quality management system that ensure that all  systems and processes are carried out correctly and safely. √√ 
• Monitoring and evaluation of quality processes enables businesses to produce  quality products which will meet the customer needs. √√ 
• The reduction in the cost of quality allows businesses to reduce prices of  products which will lead to an increase in profitability/market share. √√
• Any other relevant conclusion related to quality control/quality assurance/ benefit of a good quality management system/impact of monitoring and  evaluation as an element of TQM on large businesses/ways in which TQM can  reduce the cost of quality. (Any 1 x 2) (2)

QUESTION 6: BREAKDOWN OF MARK ALLOCATION 

*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