SECTION A
QUESTION 1
BUSINESS
STRATEGIES
1.1.1
The process where a business stops operating and sells all assets to pay off debts:
A Retrenchment
B Market development
C Divestiture
D Liquidation
1.1.2
An industrial analysis tool used to analyse the challenges of the macro environment:
A
B
C
D
1.1.3
Jerry Transport has sold some of their assets to improve their cash flow. This business
strategy is known as ...
A
B
C
D
1.1.4
liquidation.
retrenchment.
divestiture.
diversification.
Businesses use this industrial tool to analyse the challenges of the micro environment.
A
B
C
D
1.1.5
Porter's Five Forces model
PESTLE
SCAMPER
Balanced Scorecard
Porter’s five Forces
PESTLE analysis
SWOT analysis
Kurt Model
Businesses conduct market research to get more information about their competition. This
is an example of … Porter’s Five Force model
A
B
C
D
Threat of new entrants to the market
Power of buyers
Power of suppliers
Power competitors
Page 1 of 12
1.1.6
Businesses use diversification strategies in order to…
A
B
C
D
1.1.7
Tommy TV’s have taken over their supplier of textile. This is an example of the …
integration strategy
A
B
C
D
1.1.8
Porter's Five Forces
PESTLE
SCAMPER
Balanced Scorecard
DJ Vynil plays music at events on a part-time basis. The demand for his services has
increased and he is considering making it his full-time business. A weakness revealed by
his SWOT analysis could be ...
A
B
C
D
1.1.11.
power of suppliers
threat of substitution/substitutes
power of buyers
threats/barriers for new entrants to the market
An industrial analysis tool used to analyse the challenges in the market-environment:
A
B
C
D
1.1.10
forward
backwards
vertical
conglomerate
It was easy for MP Clothing to acquire a trading licence. This refers to the … as an
element of Porter's Five Forces.
A
B
C
D
1.1.9.
increase their market share
sell part of their unproductive assets
control prices
win suppliers
municipal by-laws that limit noise levels in certain areas.
expensive sound systems.
more invitations to high-profile events.
experience as a DJ.
This aspect is not included in Porters’ Five forces model.
A
B
C
D
competitors
suppliers
intermediaries
buyers
Page 2 of 12
1.1.12
Arias a fruit farmer in Bloemfontein implemented the … integration strategy when he
bought the fruit and vegetable shop in the local town.
A
B
C
D
backwards
intensive
horizontal
forward
SECTION B
QUESTION 2
2.1
Read the scenario below and answer the questions that follow.
PRETTY VIEW GUESTHOUSE
The shareholders of Pretty View Guesthouse want to improve their strategic management
process. They conducted some research and identified the following challenges:



Workers are not qualified.
The booking system that they use is outdated.
PVG is located in an area with a high crime rate.
2.1.1
List the THREE industrial analysis tools that could be applied during the
environmental scan. For EACH tool, quote ONE challenge from the scenario above. (9)
Use the table as a guide to answer QUESTION 2.1.1
INDUSTRIAL TOOL
2.1.2
QUOTE
Advise PVG on how to conduct their strategic management process.
(6)
QUESTION 3
3.1
Read the scenario below and answer the questions that follow.
KRUGER RIDES (KR)
Kruger rides is a game viewing business. They offer a variety of game driver all over the Kruger
National Park. Another, smaller game park invited them to start game drives in the park. These
game drives attract many tourists and local customers. Kruger Rides does not have a card
machine and only accepts cash. The price of petrol has also increased twice in the last month.
KR is losing customers to Fast Drives who offers shorter rides at much lower prices. Jabu, the
marketing manager recently completed a course on e-marketing..
Page 3 of 12
3.1.1 Compile a SWOT analysis for KR.
(8)
QUESTION 4
4.1
Identify the element of Porter's Five Forces model that applies to each of the following
statements:
4.1.1
Customers prefer fashionable sneakers to more expensive, formal shoes.
4.1.2
NCR has a few regular customers who always place large orders.
4.1.3
Ayishaa Ltd wants to start an exclusive fashion boutique that requires
huge capital investment to cover high establishment costs and expensive
stock.
4.2.1
4.1.4
Sam's Millers is the only place where bakeries can buy flour.
4.1.5
Jack Hardware attracts more customers than Tim Hardware.
(5 x 2) (10)
Explain how businesses may use Porter's Five Forces Model to analyse the market
environment.
(16)
QUESTION 5
5.1
Name any TWO types of integration strategies.
(2)
5.2
Outline the steps in strategy evaluation.
(6)
5.3
Read the scenario below and answer the questions that follow.
YUMMY ICE CREAM (YIC)
Yummy Ice cream is well known in a number of African Countries. They could not export
any of their products during 2020 due to the level five lockdown. Some of their essential
employees requested to work from home due to the negative impact of the COVID-19
pandemic Safety Protect delayed the distribution of personal protective equipment to
Yummy Ice Cream
Use the table below as a GUIDE to answer QUESTION 5.3.1 to 5.3.3.
CHALLENGES
BUSINESS
ENVIRONMENT
EXTENT OF CONTROL
1.
2.
3.
5.3.1
Quote THREE challenges for YIC from the scenario above.
Page 4 of 12
(3)
2.3.2
Classify YIC’s challenges according to the THREE business environments.
(3)
2.3.3
State the extent of control YIC has over EACH business environment named in
QUESTION 2.3.2.
(3)
2.4
2.5
2.6
Recommend ways in which businesses could deal with challenges that are posed
by the following PESTLE factors:
2.4.1
Political
(4)
2.4.2
Environmental
(4)
Identify the force of Porter’s Five Forces model that applies to Maria Supermarket in
EACH statement below:
2.5.1
Boss opened a new convenience store across the street offering services
at lower prices than Maria
Supermarket.
2.5.2
ABC Fruit supplies Maria Supermarket with fruits and is always on time.
Explain TWO types of defensive strategies.
(4)
(6)
QUESTION 3
3.1
3.2
Identify the type of defensive strategy that Baby Boom applied in EACH statement
below:
3.1.1
Baby Boom sold all their assets in order to pay their creditors.
3.1.2
They terminated the employment contracts of many employees to reduce
costs.
3.1.3
Management decided to close their unproductive information technology
department.
(6)
List THREE business environments and state the extent of control that businesses
have over EACH environment.
ENVIRONMENT
EXTENT OF CONTROL
1
2
3
(6)
Page 5 of 12
3.3
Read the scenario below and answer the questions that follow.
FAITH’S PICTURES (FP)
Faith Pictures is a lifestyle photography business, they specialise in doing different
photo shoots. Faith scanned the environment as part of the strategic management
process. A number of similar photography studios opened in the area. Izsak’s films are
the only supplier of films that she can use.
3.3.1
Identify TWO forces of Porter’s Five Forces model that are applicable to FP.
Motivate your answer by quoting from the scenario above.
Use the table below as a guide to answer QUESTION 3.3.1
PORTER’S FIVE FORCES
MOTIVATION
1.
2.
(6)
3.4
Explain to Faith how she can apply the strategic management process.
Do NOT refer to environmental scanning.
(6)
3.5
Discuss any TWO types of diversification strategies.
(6)
3.6
Read the scenario below and answer the questions that follow.
Ina’s dresses sells evening dressed in Johannesburg. Ina decided to expand het business and
open another branch in Pretoria due to the high demand of her dresses.
3.6.1
Identify the type of intensive strategy that Ina’s Dresses applied. Motivate your answer
by quoting from the scenario above.
(3)
3.6.2
Outline TWO advantages of intensive strategies for Ina’s Dresses as a business.
(4)
3.7
Advise businesses on the steps they should consider when evaluating a strategy.
(6)
Question 4
4.1.
Name THREE types of diversification strategies.
4.2
Explain how the following PESTLE elements/factors may pose challenges to
businesses:
(3)
4.2.1
Economic
(4)
4.2.2
Social
(4)
Page 6 of 12
4.3
Name THREE types of business environments and state the extent of control businesses
have over EACH of these environments.
BUSINESS ENVIRONMENT
EXTENT OF CONTROL
QUESTION 5
5.1 Read the scenario below and answer the questions that follow.
BROWN EGG FARM (BEF)
Brown Egg Farm specialises in producing quality eggs. Their supplier of chicken food has
increased their prices with 50% in the last 12 months. The workers are often late as they live in
town and the farm is outside of the town. The obtained a loan from Purple bank at a very high
interest rate.
5.1.1
Name the business sector in which BEF operates. Motivate your answer by quoting from
the scenario above.
CHALLENGES
5.1.2
BUSINESS ENVIRONMENT
5.1.3
EXTENT OF CONTROL
5.1.4
1.
2.
3.
5.1.2
Quote THREE challenges from the scenario above that BEF have to deal with.
(3)
5.1.3
Classify EACH challenge quoted in QUESTION 5.1.2 according to the business
environment.
(3)
State the extent of control that BEF has over EACH business environment.
(3)
5.1.4
5.2 Describe THREE types of diversification strategies.
(9)
5.3
(10)
Advise businesses on steps that they should follow when evaluating a strategy.
Page 7 of 12
5.4
Identify the PESTLE element that poses a challenge to CARTOON HARDWARE in
EACH statement below.
5.4.1
Customers cannot afford to buy Cartoon Hardware products due to low
income levels.
(2)
5.4.2
Cartoon Hardware cannot afford to implement correct measures when disposing
of waste material
(2)
5.4.3
Cartoon Hardware have lost many customers due to a lack of on-line buying
facilities.
(2)
Cartoon Hardware have increased their prices due to the high inflation rate.
(2)
5.4.4
5.5
Explain the advantages of intensive strategies for businesses.
(6)
QUESTION 6
6.1
Name the SIX factors of the PESTLE analysis.
(6)
6.2
Read the scenario below and answer the questions that follow.
PRETTY FLOWERS (PF)
Pretty Flower specialises in selling flowers. The profitability of the business decreased in the
last six months due to the high inflation rate and high unemployment rates. PF had to pay a
hefty (heavy) fine because they did not renew their trading licence in time.
CHALLENGES
2.2.1
PESTLE ELEMENT
2.2.2
RECOMMENDATION
2.2.3
6.2.1
Quote THREE challenges for PF from the scenario above.
(3)
6.2.2
Identify the PESTLE element that links to EACH challenge, as quoted in
QUESTION 6.2.1.
(6)
Recommend ONE way in which PF can deal with EACH challenge, as identified in
QUESTION 2.2.1.
(6)
Discuss THREE types of defensive strategies.
(9)
6.2.3
6.3
Page 8 of 12
6.4
Explain how businesses could apply the following forces from the Porter's Five
Forces model:
6.5
6.4.1
Bargaining power of buyers/Buyer power
(4)
6.4.2
Competitive rivalry
(4)
Explain the advantages of intensive strategies in addressing business challenges.
(6)
QUESTION 7
7.1
Describe the strategic management process.
(8)
QUESTION 8
8.1
Read the scenario below and answer the questions that follow.
CLEVER TUTORING (CT)
Clever Tutoring is a tutoring centre that offers tutoring in a number of subjects. Some clients have
requested a shuttle service from schools. CT has decided to merge with Fast Shuttles to reach
more clients and satisfy the needs of customers.
8.1.1
Identify the type of integration strategy that CT applied in the scenario above.
Motivate your answer.
(3)
8.1.2
State TWO other integration strategies
(2)
8.1.3
Give THREE reasons why businesses may use integration strategies.
(6)
8.4
Read the scenario below and answer the questions that follow.
CAPE TOWN MARKET (CTM)
CTM specialises in hand made wood art. They employ a number of talented artist. The business
does not have enough capital for a studio with proper lighting to do exhibition. Businesses in the
same industry are closing down due to ineffective marketing campaigns. CTM is located in an
area with high crime rates.
8.4.1
Compile a SWOT analysis for CTM.
(4)
8.4.2
Suggest ONE strategy to handle each weakness and threat identified in
QUESTION 8.4.1.
(4)
Page 9 of 12
QUESTION 9
9.1
Advise businesses on the following forces of Porter's Five Forces model:
9.1.1
Bargaining power of suppliers/Power of suppliers
(4)
9.1.2
Threat of substitution/Substitutes
(4)
9.2
Explain the steps that businesses should follow when evaluating a strategy.
9.3
Identify the type of business strategy illustrated in EACH of the statements below.
9.3.1
Mavis Bags took over Class Clothing Retailers for efficiency and
profitability.
9.3.2
Master Supermarkets in Potchefstroom reduced the prices of their
products to increase sales.
9.3.3
Exclusive Books expanded their business by selling stationery to
attract new customers.
(6)
(3x2) (6)
QUESTION 10
10.1
Identify a business strategy represented by EACH statement below:
10.1.1 PEP sold all its assets to pay creditors and closed down the business.
10.1.2 Mr Price has opened new branches in Nigeria and Chicago to increase their
market share.
10.1.3 The owner of Excellency Book Shop decided to also sell coffee and cake in
her shop.
10.1.4 Jerry Juices bought Harmse grape farm.
10.1.5 Snow White Stores reduced the price of the new All White washing powder to
encourage bulk buying.
10.2
Identify the business strategy applicable to EACH statement below:
10.2.1
Blue Betty has taken over Smart Shoe Manufacturing (Pty) Ltd.
10.2.2
Pretty Dresses have sold some of their unproductive assets.
10.2.3
ABY Cupcakes are selling new products at lower prices
10.2.4
Round Wheels added cars seats to their product line.
(4X2) (8)
Page 10 of 12
SECTION C
QUESTION 11
The market and macro-environments pose many challenges to business operations that may have
a negative impact on business success. It is important that these challenges are identified and
strategies are formulated to deal with them.
Write an essay on business strategies and include the following:




Explain how businesses may use Porter's Five Forces Model to analyse the market
environment.
Describe THREE types of defensive strategies that businesses may use to address challenges
in the macro-environment.
Discuss the effectiveness of intensive strategies in addressing business challenges.
Suggest steps that businesses may use to evaluate a strategy. [40]
QUESTION 12
ZYL MANUFACTURERS (ZM)
ZM specialise in the manufacturing of men's clothing. The business is struggling to pay its creditors
due to the high inflation rate. ZM need to conduct the strategic management process in order to
devise the best strategy that will assist them to overcome the challenges of the macro environment.
Write an essay on the strategic management process. Include the following aspects in your
response:




Outline TWO aspects that should be considered during the initial stages of the strategic
management process.
Explain how ZM can apply the PESTLE model to deal with the challenges of the macro
environment.
Describe THREE types of defensive strategies that businesses may use to deal with challenges
in the business environment.
Advise ZM on the steps that they should consider when evaluating strategies.
[40]
Page 11 of 12
QUESTION 13
Businesses realise the importance of the strategic management process when devising suitable
business strategies. Some businesses maintain that Porter's Five Forces model plays an important
role in remaining competitive in the market environment.
Write an essay on business strategies in which you include the following aspects:




Describe the strategic management process.
Discuss the THREE types of defensive strategies that businesses may use to address
challenges in the macro environment
Explain how businesses could apply Porter's Five Forces model to analyse the market
environment.
Advise businesses on the steps they should consider when evaluating strategies.
[40]
QUESTION 14
SIMPHIWE MANUFACTURERS (SM)
Simphiwe Manufacturers specialises in the supply of designer bags. Sales have declined due
to challenges in the market and macro-environment. The management of SM decided apply
Porter’s Five Forces model and implement business strategies in order to deal with their
business challenges.
Write a detailed report on the following aspects.




Explain how SM may apply Porter’s Five Forces to analyse the challenges of the market
environment.
Discuss THREE types of diversification strategies that SM may use to address challenges in the
macro-environment.
Elaborate on the effectiveness of intensive strategies as a best strategy for addressing business
challenges.
Advise the management of SM on the steps to consider when evaluating strategies. [40]
Page 12 of 12