1 SECONDARY SCHOOL IMPROVEMENT PROGRAMME (SSIP) 2014 GRADE 12 SUBJECT: BUSINESS STUDIES EXTRA SESSIONS: LEARNER (Page 1 of 14) © Gauteng Department of Education 2 TABLE OF CONTENTS SESSION TOPIC 1 Business Environments 4 to 6 2 Business Ventures 6 to 9 3 Business Roles 9 to 11 4 Business Operations 12 - 14 PAGE © Gauteng Department of Education 3 EXAMINATION TIPS Read through the whole examination first. • Read carefully through all instructions and every question. • Do not skim as you may get the wrong idea as to what is being asked. • Reading through the whole exam has a number of advantages, particularly for Business Studies: Ø It allows you time to become more calm and in control; Ø It gives you an idea of each of the questions being asked which means your brain can think ahead to other questions while you are busy working on your first question Ø You can mark off the questions that cover the areas that you know best. Ø This is particularly important due to the choices you have in Section B and C of the Business Studies examination How to approach section A, B and C • Start with Section A as it is compulsory • In Section B start with a question that you feel more in control. • Make sure that the numbering of the questions are correct otherwise you will be penalised for the incorrect numbering of the questions and sub questions in all sections. • Do not exceed the number of fact required per questions and sub-questions. • Please note that in section B, you must chose THREE questions from this section. Should you decide to choose more than THREE questions, only the FIRST THREE will be marked. • This is also applicable to section C. Take note of the action verbs in the question. • List means just give a list with no explanation needed • Name means just give the appropriate name with no explanation needed • Define means explain the precise meaning of the concept • Describe means say what the concept is like and how it works • Compare means set items side by side (preferably in a table) to show their similarities and differences • Differentiate means the same as compare (above), but only show differences • Analyse means take apart the concept and consider all the factors • Assess means give a judgement and back it up with evidence or reasoning • Critically evaluate means describe both sides of an argument and come to a final conclusion and justify your decision. (You can argue for or against) • Recommend/Suggest means give your opinion and back it up with facts and reasons based on the knowledge of the subject • Explain/Discuss means give a clear, detailed description of the focus topic • Justify means give clear, detailed reasons for taking a particular position • Illustrate give examples to demonstrate or prove something • Identify give the main points that need to be considered © Gauteng Department of Education 4 EXTRA SESSION NO: 1 TOPIC: BUSINESS ENVIRONMENTS Learner Note: Study sub-topics below that are covered under business environments. It is important that you are well conversant with all sub-topics that are covered by each main topic because the structure of the final exam paper is done according to the main topics. Please refer to page 5 of the Business Studies Exam Guideline 2014 document for more information. Sub topics that are covered under business environments: Refer to 6 to 10 of the Business Studies Exam Guideline 2014 • Impact of recent legislation on businesses • Business strategies • Business sectors and their environment Notes for the learner: Please ensure that you are well conversant with all the above mentioned subtopics are covered. By the end of this session, you should be able to: 1 Apply knowledge of the Skill Development Act and Employment Equity Act in terms of penalties, compliance and discriminatory actions in given case studies and scenarios 2 Recommend how businesses may apply their broad based approach in terms of human rights, inclusivity and environmental factors. 3 Identify the challenges of the macro environment using a PESTLE analysis 4 Devise strategies on how to overcome the identified challenges of the macro environment. 5 Critically discuss the procedure for claiming compensation as outlined in the Compensation for Injuries and Diseases Act SECTION A: TYPICAL EXAM QUESTIONS QUESTION 1: 35 Minutes 35 marks Read the case study below and answer the questions that follow. Thabang’s Trading Enterprise Thabang’s Trading Enterprise is the business that has employed 20 workers who are responsible for producing and promoting the company’s products. The management of the business gives employees incentives based on their performance. Themba and Craig are the youngest employees who are given the opportunity to learn new skills on how to produce and promote quality products. Craig and Themba have been promoted to managerial positions because they are Thabang’s friends even though there are other female employees who are more qualified than them. © Gauteng Department of Education 5 Other employees have complained that the business does not give them the opportunity to also learn new skills because they are older than Themba and Craig. This is impacting negatively on the employees’ morale and they feel that they also have a right to acquire new skills. 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 1.2 Name the Act that that aims at developing and improving the skills of the employees (2) Quote from the case study an action that can be regarded as discriminatory by the Act identified in 1.1.1 (1) State other actions that can be regarded as discriminatory by this Act (4) Outline TWO penalties that may be imposed on Thabang’s Trading Enterprise for not complying with this Act? (4) Evaluate the impact of this Act on business operations (10) Thabang’s Trading Enterprise gives Themba and Craig the opportunity to learn new skills. 1.2.1 Identify and explain the Act that prevents businesses from given certain employees’ special privileges. (4) 1.2.2 In which way does Thabang’s Trading Enterprise not complying with this Act? Quote from the case study. (2) 1.2.3 Discuss the negative impact of this Act on Thabang’s Trading Enterprise. (8) [35] Hint: Question 1 is a source-based question. You have to understand the content of the case study before you answer the question. Take note of the sub questions that requires you to quote from the case study. This means that you have to quote directly from the case study. Responses that are not quoted from the case study will not be credited. QUESTION 2: 8 Minutes 12 marks 2.1 Recommend ways in which businesses can meet their obligation in terms of their broad based approach (BBBEE) in the following areas: 2.1.1 Human Rights (4) 2.1.2 Inclusivity (4) 2.1.3 Environmental factors (4) [12] QUESTION 3: 17 Minutes 26 marks Read the scenario below and answer the questions that follow. Norman’s Boutique PTY LTD Norman’s Boutique PTY LTD is the enterprise that specialises in exclusive clothing designs for men. Norman imports some of his clothing material from the US. The government has recently announced that South African businesses should not trade with the US. There is new equipment that can produce quality products cheaper and © Gauteng Department of Education 6 faster than the current one. Norman’s employees cannot use this new equipment. Some of Norman’s customers indicated that they want to purchase Norman’s clothes electronically. Norman’s employees feel that they are not given a minimum wage as required by the government. 3.1 3.2 3.3 Apply PESTLE analysis to assess the challenges of the macro environment on Norman’s Boutique enterprise. Quote from the above case study. (16) Recommend any TWO strategies that Norman’s boutique can use to overcome the challenges identified in QUESTION 3.1 (4) Outline THREE activities of strategy evaluation (6) [26] QUESTION 4: 15 Minutes 22 marks 4.1 Read the scenario below and answer the questions that follow Mr Langa is the owner of the Langa’s manufacturing company and has employed 30 workers. He always makes sure his workers work in a healthy and safe environment. Pule one of Mr Langa’s worker always refuses to wear protective gear when performing his duties. Pule got injured on duty and he immediately drove to the hospital. He reported to work after 5 days with his doctor’s letter demanding that Mr Langa must pay Pule for the injuries sustained while performing his duties. 4.1.1 Identify the Act that makes provision for employees to be paid if they get injured at work. (2) 4.1.2 Is Pule’s claim justified? Motivate your answer. (6) 4.1.3 Advise Pule on his responsibility in the workplace to ensure that he is safe. (2) 4.1.4 Discuss the procedure that Pule should have followed to claim for compensation. (8) 4.1.5 Do you think that Mr Langa has complied with the Act identified in 4.1.1? Justify your answer. (4) EXTRA SESSION NO: 2 TOPIC: BUSINESS VENTURES Sub topics that must be covered under business ventures: Refer to the Business Studies Exam Guideline 2014 page 11-17. • Management and leadership • Investment and leadership • Investments opportunities • Investments: Insurance and assurance • Forms of ownership focusing on how they contribute to the success or failure of business • Presentation and data response © Gauteng Department of Education 7 Notes for the learner: Please ensure that you are well conversant with all the abovementioned sub-topics are covered. By the end of this session, you should be able to: • Identify and differentiate between the authoritarian and transactional leadership styles. • Analyse the effectiveness of the government retail bonds. • Explain kinds of shares and their rights. • Differentiate between compound and simple interest. • Explain the relevancy and viability of insurance. • Determine the extent to which a particular form of ownership can contribute to the success or failure of a business. SECTION A: TYPICA EXAM QUESTIONS QUESTION 1: 35 Minutes 40 marks Shaun decided to start a business a few years ago. Due to the excellent growth in his business, he has approached you to advise him on an alternative form of ownership. Shaun wants to be liable for all the debts and liabilities of the company but the shareholders of his business must have a limited liability. Identify the forms of ownership applicable to the above scenario. Describe the characteristics of these forms of ownership. Analyse how the following criteria can contribute to success or failure of these forms of ownership. • capital • management • division of profits • taxation Hint: Your essay must have an introduction, body and conclusion. You will not be awarded marks if you do not write anything under the introduction and conclusion. © Gauteng Department of Education 8 QUESTION 2: 10 Minutes 20 marks Read the scenario below and answer the questions that follow: Mr Harris is the owner of Harris’ glasses LTD. He likes to take decisions alone without consulting his workers. Mr Harris workers want to leave his company and join Mrs Dube’s business because she uses incentives to encourage her workers to do their best even though she sometimes punishes her works for not fulfilling their job requirements. 2.1.1 Identify the leadership styles that are used by each of the above managers in the scenario (4) 2.1.2 Differentiate between the leadership styles mentioned in QUESTION 2.1 (8) 2.1.3 Explain the situation in which businesses can use Mr Harris’s leadership style (4) 2.1.4 Outline TWO advantages of using Mrs Dube’s leadership style (4) QUESTION 3: 3.1 12 Minutes 20 marks Read the scenario below and answer the questions that follow. Mrs Naidoo wants to invest in shares that will enable her to receive dividends when profits are made because there is a possibility of huge returns 3.1.1 Advise Mrs Naidoo on the kind of share that will suit her needs (2) 3.1.2 Outline THREE rights of Mrs Naidoo for holding the kind of share identified in QUESTION 3.1.1 (6) 3.1.3 Mention any TWO other kinds of shares 3.2 3.3 3.4 (4) Mike is a 55 year old technician. He has three children who have graduated from the University and they all have good jobs. Explain the relevancy of life assurance for Mike. (2) Differentiate between compound and simple interest (4) What does viability of insurance mean? (2) QUESTION 4: 12 Minutes 20 marks Read the extract below and answer the questions that follow Gail and her friends have invested their money in unit trusts because they want to buy blue chip shares. They want to invest the interest of the unit trust into the government 4.1.1 Explain the meaning of blue chip shares 4.1.2 Discuss the disadvantages of investing in unit trust © Gauteng Department of Education (2) (6) 9 4.1.3 Advise Gail and her friends on a kind of investment they should use to invest in the government (2) 4.1.4 Analyse the effectiveness of the kind of investment mentioned in QUESTION 4.1.3 (6) 4.1.5 Do you think insurance is an investment? Justify your answer (4) Learners please note: Questions that require you to “analyse” means that you are expected to either provide the advantages/positives or the disadvantages/negatives. EXTRA SESSION NO: 3 TOPIC: BUSINESS ROLES Sub topics that must be covered under business roles: Refer to the Business Studies Exam Guideline 2014 page 17-25. • • • • • Ethics and professionalism Creative thinking Corporate Social Responsibility (CSR) and Corporate Social Investment (CSI) Human rights, Inclusivity and environmental issues Team performance, assessment, conflict management and problem solving. Notes for the learner: Please ensure that you are well conversant with all of the abovementioned sub-topics that should be covered under business roles. By the end of this session, you should be able to: • Differentiate between CSI and CSR. • Analyse the impact of CSI and CSR on businesses. • Discuss the implication of the Skill Development Act and Employment Equity Act on CSI. • Differentiate between professional and unprofessional behaviour. • Discuss the relationship between ethics and professionalism. • Recommend how businesses may address diversity in the workplace. • Apply the problem solving techniques to solve a business problem. • Apply the stages of team development in a given scenario. • Discuss the conflict resolution steps. © Gauteng Department of Education 10 SECTION A: TYPICA EXAM QUESTIONS QUESTION 1: 35 Minutes 40 marks Triple Bottom Line (TBL) measures the performance of businesses in terms of their social and environmental success. Businesses who ignore the trend towards being socially responsible, risk the loss of profits as many investors want to invest in sustainable businesses that have good CSR and CSI programmes. Analyse the above statement with specific reference to the relationship between the Triple Bottom Line and CSR. Explain the difference between CSR and CSI. Evaluate the impact of CSI’s on businesses. Discuss the implications of the Skill Development Act and Employment Equity Act on CSI’s. Hint: Read the statement of the essay before answering the question. Take note of the action verbs that are used in the above essay. Break down the question into headings. You will not be awarded marks for insight if you do not structure your essay. Do not discuss the Skill Development and the Employment Equity Act in isolation as no marks will be awarded for this. You need to link these Acts to CRS and CSI. QUESTION 2: 12 Minutes 22 marks Read the case study below and answer the questions that follow: Mr Tom is a manager at Sally’s cosmetics. Mr Tom is always late for meetings without a valid reason and he uses impolite language when he addresses his employees. The employees are not happy with Mr Tom’s behaviour and they feel that he does not follow the company’s code of ethics. 2.1.1 Quote from the case study the behaviour that can be regarded as unprofessional. (2) 2.1.2 Give any TWO other examples of unprofessional behaviour in the workplace. (4) 2.1.3 Discuss the impact of Mr Tom’s behaviour on the business. (6) 2.1.4 Outline THREE principles of professional behaviour in the workplace. (6) 2.1.5 Professional behaviour depends on the code of ethics in the workplace. Do you agree with this statement? Support your answer. (4) © Gauteng Department of Education 11 QUESTION 3: 20 Minutes 30 marks 3.1 Read the scenario below and answer the questions that follow. Mpumi’s communication CC Mpumi’s Communication is a business that specialises in communication and advertising. Mpumi’s has employed 10 black males and 2 Indian males. Mpumi’s employees are not well conversant with other languages as they can only speak English and IsiZulu. Some female clients feel that that Mpumi’s employees lack sufficient knowledge about the contents of the business products. While others cannot speak English and therefore they are unable to get more information about Mpumi’s services. 3.1.1 Do you think Mpumi’s workforce is inclusive? Justify your answer. (4) 3.1.2 Recommend ways in which Mpumi’s communication can address diversity in the workplace. 3.1.3 Mention any TWO benefits of a diversified workforce. (10) (4) 3.2 Mr Potgieter has employed a diversified workforce but he does not know how he should promote social and cultural rights in his business. Suggest ways in which Mr Potgieter can promote social and cultural rights in his business. (8) 3.3 Explain how Mr Potgieter can apply the Normal group technique to address his challenge. (6) QUESTION 4: 30 Minutes 38 marks Read the statement below and answer the questions that follow You can't expect a new team to perform well when it first comes together. Team formation takes time and teams often go through recognisable stages, as they change from being collections of strangers, to becoming united groups with common goals 4.1.1 Do you agree with the above statement? Motivate your answer by referring to the stages of team development. (16) 4.1.2 In which stage of team development is conflict more likely to occur? (2) 4.1.3 You are a team leader and there is conflict in your team. Apply the conflict resolution steps to resolve the conflict. (14) 4.1.4 Discuss the implications of equality, respect and dignity in the workplace. (6) © Gauteng Department of Education 12 EXTRA SESSION NO: 4 TOPIC: BUSINESS OPERATIONS Sub topics that must be covered under business roles: Refer to the exam guideline page 26-29. • • Human Resources function Quality of performance Notes for the learner: Please ensure that you are well conversant with all of the abovementioned sub-topics that should be covered under business roles. By the end of this session, you should be able to: • Discuss the implications of BCEA, SDA and EEA on human resources function. • Outline benefits that form part of the employment contract. • Critically analyse the selection and interview procedure. • Explain the benefits of induction for businesses. • Discuss the relationship between salary administration and BCEA. • Critically evaluate the impact of the elements Total Quality Management in given scenarios and case studies. • Evaluate the relationship between quality and various business functions. • Analyse the continuous improvement steps. SECTION A: TYPICA EXAM QUESTIONS QUESTION 1:35 Minutes; 40 marks The human resources function is responsible for all matters regarding people in the workplace. Businesses need to understand the labour legislation, their own rights as employers and the rights of their employees. Describe FOUR activities of the human resources function. Analyse the implications of the Basic Conditions of Employment Act, Skills Development Act and Employment Equity Act on the human resources function. Learners please note: You need to first understand the above Acts that were done in details under business environments. You will not be awarded marks if you only discuss the Acts without relating them to the human resources function. © Gauteng Department of Education 13 QUESTION 2: 12 Minutes 23 marks Read the scenario below and answer the questions that follow: Joseph is an employee at Dinaledi Clothing CC. The company provides Joseph subsidised meals and pays part of his provident fund. Joseph also uses a company car to get to work. 2.1.1 Identify THREE benefits John receives from his employer. (3) 2.1.2 What is the name of the benefits that Dinaledi Clothing CC offers Joseph. (2) 2.1.3 Suggest TWO other benefits that Dinaledi Clothing could offer Joseph. (4) 2.1.4 Explain TWO advantages of businesses that provide benefits for their employees. (4) 2.2 Suppose Dinaledi Clothing wants to hire another employee. Outline the selection procedure. QUESTION 3: 3.1 20 Minutes (10) 24 marks Read the case study below and answer the questions that follow. Mike is a new employee at Sizwe’s manufacturing company. On the first day when he reported for work, he was told to immediately perform his duties without supervision. Mike is confused because he does not know how he should perform his duties. Mike is also not familiar with the company’s work environment. He demands that the company must familiarise him with the work environment as well his roles and responsibilities 3.1.1 Do you think that Mike’s demands are justified? Motivate your answer with specific reference to induction. (4) 3.1.2 Discuss the benefits of a good induction programme for Sizwe Manufacturing company. (6) 3.2 3.3 3.4 Analyse the relationship between salary administration and the Basic Conditions of Employment Act. (8) State TWO purposes of the interview. Define the concept compulsory deduction and give ONE example. (4) (2) © Gauteng Department of Education 14 QUESTION 4: 30 Minutes 42 marks Read the case study below and answer questions that follow: Nana’s day care center is a small business that consists of 15 employees. Nana usually sends her employees to skill development. Nana has a close business relationship with her clients and she knows their needs.. Nana wants to purchase new equipment for her business but she does not have access to adequate capital. 4.1.1 Quote from the case study THREE elements of Total Quality Management system and support your answer. 4.1.2 Explain the impact of your answer QUESTION 4.1.1 on small businesses. 4.2 (4) (4) Continuous improvement to process and systems uses a four-step quality model. Discuss this model. (16) (6) Describe how the quality of performance can contribute to the profitability of a business within the following business functions 4.2.1 Purchasing function 4.2.2 Financial function 4.3 (12) © Gauteng Department of Education