GRADE 10

2024 REVISED NOTES

TEACHER’S COPY
TERM: 1 - 3
 CLASSIFICATION OF TOPICS PER QUESTION PAPER
MID-YEAR EXAMINATION QUESTION PAPERS

PAPER 1 BUSINESS ENVIRONMENT BUSINESS OPERATIONS

SUB-  Impact of Recent  Human Resource Function.
TOPICS Legislation on businesses  Quality of performance.
 Business strategies.
 Business sectors.
PAPER 2 BUSINESS VENTURES BUSINESS ROLES
SUB-  Investment Securities.  Ethics and professionalism.
TOPICS  Investment insurance.  Creative thinking and problem solving
 Management and  Team performance and conflict
leadership. management.

NOVEMBER/YEAR END EXAMINATION QUESTION PAPERS

PAPER 1 BUSINESS ENVIRONMENT BUSINESS OPERATIONS

SUB-  Impact of Recent  Human Resource Function.
TOPICS Legislation on businesses.  Quality of performance.
 Business strategies.
 Business sectors.
PAPER 2 BUSINESS VENTURES BUSINESS ROLES
SUB-  Management and  Ethics and professionalism
TOPICS leadership.  Creative thinking and problem solving
 Investment securities  Social Responsibility, CSR and CSI
 Investment insurance  Human rights, inclusivity and
 Forms of ownerships with environmental issues.
the focus on how they can  Team performance and conflict
contribute to the management.
success/failure of a
business.
 Presentation and data
response
 NOV/YEAR END EXAMINATION STRUCTURE OF THE QUESTION PAPER

PAPER 1 PAPER 2
TIME: 2HOURS TIME: 2HOURS
MARKS 150 MARKS 150
SECTION A COMPULSORY SECTION A COMPULSORY
TYPES OF QUESTIONS: TYPES OF QUESTIONS:
1.1 Multiple choice question 1.4 Multiple choice question
1.2 Matching items 1.5 Matching items
1.3 Choose the correct word(s) Choose the correct word(s)
SECTION B (Answer ANY TWO) SECTION B (Answer ANY TWO)
Question 2 Business Environment Question 2 Business Ventures
(40 marks) (40 marks)

Question 3 Business Operations (40 marks) Question 3 Business Roles (40 marks)
Question 4 Miscellaneous Question Question 4 Miscellaneous Question
(Business environment for 20 marks and (Business Ventures for 20 marks and
Business Operations for 20 marks) Business Roles for 20 marks)

SECTION C essay (Answer ANY ONE) SECTION C essay (Answer ANY ONE)
Question 5: Business Environment Question 5: Business Ventures
Question 6: Business Operations Question 6: Business Roles
BUSINESS ENVIRONMENT COMPONENTS OF MICRO- ENVIRONMENT

BUSINESS STUDIES

GRADE 10

TERM 1

PAPER 1

CHAPTER 1

REVISED NOTES

COMPONENTS OF MICRO-ENVIRONMENT

2025

TABLE OF CONTENTS

TOPICS PAGES
Meaning of micro-environment: 2
Components/ features of the micro-environment 2
Vision 3
Mission Statement 3
Goals 3
Objectives 3
Organisational resources 3-4
Eight functions and activities of the business 4-6

This chapter consists of 6 pages

1
 BUSINESS ENVIRONMENT COMPONENTS OF MICRO- ENVIRONMENT

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT OF

COMPONENTS OF MICRO- ENVIRONMENT
Learners must be able to:
 Define/Explain the meaning of the micro-environment
 Outline/Describe/Explain/Discuss the various components of the micro (internal
business environment.
 Identify a vision, mission statement, goals and objectives from given scenarios.
 Outline/name/identify/Explain the organisational resources from given
statements/scenarios.
 Identify business functions from given statements/scenarios/case studies
TERM/CONCEPTS DEFINITION/MEANING
Business functions the tasks requiring specific knowledge and skills that are carried out by the
various departments to achieve the goals of the business.
Goals the long-term plans of what the business wants to achieve.
Leadership the way in which an individual can influence the behaviour of others towards
achieving the objectivities of the business.
Management the way the business is managed. This entails planning, leading, organising
and controlling the people in the business.
Micro- environment includes everything inside the business. All the internal affairs of the
business are managed by the directors or the owners of the business. The
business has full/complete control over its micro environment.
Mission statement describes what the business provides or produces.
Objectives: describes how goals will be achieved.
Vision refers to what the business wants to achieve in the long-term. That is, the
dream of the business.

BUSINESS ENVIRONMENTS
1 Micro- environment/Internal environment
Meaning of micro- environment/Internal environment
 It is the environment within which a business operates and consists of the business
itself.
 It is the decision-making environment because management make decisions that help
the business achieve its goals.
 It can also be referred to as the immediate environment in which a business operates
and includes all the internal factors of the business.
 includes everything inside the business. All the internal affairs of the business are
managed by the directors or the owners of the business. The business has
full/complete control over its micro environment.
2 Components/Features/ Elements of the micro - environment

 The components of the micro- environment include the following:

 vision, mission statement, goals and objectives
 Organisational resources
 Leadership and management
 Eight Business function
 Organisational structure
 Organisational culture.

2
BUSINESS ENVIRONMENT COMPONENTS OF MICRO- ENVIRONMENT

2.1 Explanation of the components/features/elements of the micro-environment

Vision
 Refers to a statement that explains what a business aims to achieve.
 Answer to the question: ‘where are going from here?’
 The vision of a business describes its long-term goal, that is, where the business sees
itself in the future.
 Sets out where the business needs to go to be successful
 The dream of the business and what it wants to achieve in future.
 Gives businesses a clear idea of what they want to achieve.
 The inspiring statement about what a business wants the future to look like.
 Explains what a business aims to achieve taking into consideration its purpose.
 Example ‘To provide job opportunities for the local community
Mission statement
 A statement that that explains the reason for the business existence.
 Enables businesses to develop strategies to achieve their vision.
 The answer to the question such as what businesses do to make a profit?
 Explains what the business does to achieve it vision.
 Gives clear direction on how the business intend to achieve its vision.
 Describes the purpose and basic activities of the business.
 Example ‘To become a word-class communication company
Goals
 Can be defined as long term objectives of what the business want to achieve.
 Goals breakdown the business objective into specific and measurable statement.
Example Increase profit margin by 50% in 2020.
 Goals give the business a sense of direction.
Objectives
 Short- term tasks/steps to reach goals.
 Contain a deadline for achievement.
 Explains how the goals of the business will be reached.
 Explains targets and strategies that will help the business fulfil its mission.
 The purpose of the business, for example, a business may have a primary objective of
making a profit and a secondary objective of social upliftment.

3 The purpose of organisational culture

 Organisational culture refers to how things are done in the business, for example,
how the employees communicate among themselves, their dress code and their
administration policy, Organisational culture also includes the values, beliefs, norms
and standards that are shared among the employees and management.
o The purpose of the organisational culture is to define the business’ internal and
external identity as well as its core values.
o A strong business culture has the power to turn employees into ambassadors of
the business.
o It helps businesses to retain its employees and clients.
o It breaks down boundaries between teams, guides decision-making, and
improves productivity.

3
BUSINESS ENVIRONMENT COMPONENTS OF MICRO- ENVIRONMENT

4. Organisational resources
 These are assets that the business uses to produce goods/services and to achieve
its goals.
 The following four groups of resources are controlled by management:
Physical Financial Human Information &
resources/operating resources resources Technological
resources (People) resources
 Natural  Capital  Employees  Technology the
resources  Own Capital  Contractors use of
 (raw material)  Cash computers
 Machinery  Bank over  Research
 Buildings drafts  Production
machinery and  Credit card technology
vehicles  Short and  Computer
 Infrastructure medium term software
 Assets from loans  Laptops,
nature such as  Money invested  Computers
water, minerals, in the business websites
and wood to acquire  Internet
production facilities
goods such as  Cell phones,
land, building  Photocopy
and machinery machines.

3.2 Explanation of types of organizational resources

Human resource
 People with knowledge and skills such as employees/consultants/managers etc.
 The people needed to perform the work and keep the organization functioning.
 People who contribute towards achieving the goals of the business.
Natural resources
 Assets from nature that are used to offer services and products, such as minerals,
water, and wood.
Physical resources
 Include raw materials/office furniture/equipment/machinery/plant necessary to
operate the business successfully.
Financial/Capital resources
 Money invested in the business to acquire production goods such as land, buildings,
and machinery.
 Can be in the form of cash/bank overdrafts/short- and medium-term loan.
Technological resources
 Resources that include computers/voice mail/emails/production technology that gives
the business an advantage over its competitors.
Entrepreneurial resources
 The person responsible for combining the factors of production in such a way
that the business will make a profit.

4
BUSINESS ENVIRONMENT COMPONENTS OF MICRO- ENVIRONMENT

3.3 Management and leadership

Management
 The management of a business is the process whereby an individual or individuals
guide and direct the organisation to achieve its goals and objectives.
 Good managers are able to plan properly, organise, lead, and control all the
resources in the business.
Leadership
 Leadership is the ability of an individual to inspire, influence or motivate their
subordinates to achieve the goals and objectives of the business.

The organisational structure shows the different departments in the organisation and how
they are organised. The organisational structure is also known as
an organogram.
An organogram shows the level of authority, responsibility and tasks of the various
departments in the business. An organogram shows the hierarchical structure of the
business.

The purpose of the organisational structure includes:

 Helping to ensure the smooth and efficient functioning of the business. Ensuring that
work happens with precise co-ordination and minimum wastage of resources.
 Helping the business to work towards its goals.
 Show the connections between various positions and tasks in the business. It
describes the coordination between various departments in the business

5
BUSINESS ENVIRONMENT COMPONENTS OF MICRO- ENVIRONMENT

3.4 THE EIGHT BUSINESS FUNCTIONS

 General management
 Administration function
 Financial function
 Purchasing function
 Public function
 Human resources function
 Production function
 Marketing function

General management
 The general management in a business coordinates the other business functions to
achieve the goals and objectives of the business.
 The general management function plans, organises, leads and controls resources in
the business.
Purchasing function
 The purchasing function is responsible for buying all the resources that the business
needs in order to produce its goods and services.
Production function
 The production function is responsible for changing/processing raw materials into
finished or semi-finished products.
 It ensures that the business creates quality products to meet the demands of the
target market.
Marketing function
 The marketing function undertakes market research to determine the real needs of
the target market.
 It is also responsible for the advertising/promotion of goods and services to
customers.
Public relations
 The public relations function is responsible for creating a good public image for the
business.
 It ensures that there is proper communication between the business and all its
stakeholders.
Human resources function
 The human resource function is responsible for attracting new employees into the
business.
 It also has to manage all the people in the business by providing education and
training for their employees.
Administration function
 The administration function is responsible for collecting, processing and storing all
the data and information required by the business.
 The administration function has to be up to date with the latest information
technology.
Financial function
 The financial function is responsible for determining all the financial needs of the
business.
 It ensures that the business’s funds are used efficiently.
 It manages all the funds and financial assets of the business.

6
BUSINESS FUNCTIONS CHAPTER TWO

BUSINESS STUDIES

GRADE 10
PAPER 1
TERM 1
CHAPTER 2
REVISED NOTES
BUSINESS FUNCTIONS
2025

TABLE OF CONTENTS

TOPICS PAGES
Examination guidelines 2
Concepts/Terms and Definition/Meaning 3
Differences between leadership and management 4
The purpose of the eight business functions 4
General Management Function 4-8
Organisational Structure 9
Administration Function 9-10
Financial Function 11-13
Public Relations 14-15
Purchasing 15-17
CPA and NCA: 17-20
Nature
- Purpose
- Rights
- Responsibilities
- Remedies

This chapter consists of 16 pages

1
BUSINESS FUNCTIONS CHAPTER TWO

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT PURPOSES

Learners must be able to:
 Outline/Explain/Discuss the differences between management and leadership
 Recap the eight business functions.
 Outline/Describe/Explain/Discuss the importance of the eight business functions.
 Identify business functions from given statements/scenarios/case studies.
 Name factors that influence the organisation structure e.g. the size of the company,
technology, resources, and strategic goals of the company.
 Name/Explain/Discuss/Describe three types of organisational structures e.g.
functional, project and matrix structures.
 Outline/Explain/Describe/Discuss the activities of the administration function.
 Outline/Describe/Explain/Discuss the importance/purpose of the administration
function.
 Identify these activities from given statements/ scenarios/case studies.
 Outline/Explain/Describe/Discuss the activities of the financial function.
 Outline/Explain/Discuss the importance/ purpose of the financial function.
 Define/Explain/Describe the types and sources of financing.
 Identify the types and sources of financing from given scenarios/case
studies/statements/ pictures/cartoons.
 State/Name/Explain/Discuss the types of capital.
 Explain the differences between a fixed and working capital.
 Explain the differences between own and borrowed capital.
 Outline/Explain/ Discuss the importance/ purpose of the purchasing financial
function.
 Outline the activities of the purchasing function
 Explain/Describe/Discuss the purchasing procedure.
 Explain the differences between cash and credit payments.
 Explain/Discuss the importance of stock Control.
 Outline/Explain/Describe/Discuss the purpose/nature of the National Credit Act and
the National Consumer Protection Act.
 Outline the consumer rights as outlined in the NCA.
 Outline/Explain/Describe/Discuss the responsibilities of credit providers. Outline/
remedies of the NCA e.g. the Consumer Tribunal, National Consumer Commission,
Consumer Court, and an appropriate Ombudsman.
 Discuss/Evaluate/Analyse the impact (positives /negatives) of these Acts on
businesses.
 Discuss/Explain the implication of the National Consumer Protection Act on the
marketing function.
 Outline/Explain/Describe/Discuss the activities of the administration function.
Outline/Explain/Describe/Discuss the importance/purpose of the public relations
Differentiate/Distinguish between external and internal public relations.
Outline/Explain/Discuss the methods of carrying out public relations.
 Identify these methods from given scenarios/ case studies
/statements/pictures/cartoons.

2
BUSINESS FUNCTIONS CHAPTER TWO

Terms/Concepts Definition/Meaning
General management overseeing everything that goes on in a company,
and making sure that all departments are working
together to turn a profit.
Administration function the process of collecting and storing information that
will be used by management in decision making.
Financial function involves the acquiring and utilisation of funds
necessary for efficient operations.
Purchasing function the act of buying the goods and services that a
company needs to operate and manufacture
products.
Organising the process of identifying and grouping work that
needs to be done, defining and delegating
responsibility and authority.
Leadership (business) providing direction or guidance.
Controlling a function that helps to measure the progress
towards organisational goals, highlights any
deviations, and indicates corrective actions.
Production function the action of making or manufacturing a complete
product.
Marketing function the act of promoting and selling product or services.
Public relations the continuous maintenance of a public image by
the business.
Human resources the department of a business that deals with the
hiring and training of staff.
Top management responsible for controlling and overseeing the entire
organisation.
Middle management responsible for executing organisational plans,
which comply with the company’s policies and lower
management.
Planning is the process of thinking about the activities
required to achieve a desired goal.
Directing activities which are designed to encourage the
subordinates to work effectively and efficiently.
Risk management the process of identifying, assessing and controlling
threats to a business.
Information facts that are provided to learn about something.
Data facts and statistics collected together for reference
and analysis
Consumer Tribunal an independent entity who’s mandate is to hear and
decide on cases involving consumers.
National Consumer Commission promotes compliance with the Consumer Protection
Act through advocacy and enforcement.
Consumer Court court that deals with cases regarding consumer
disputes, conflicts and grievances.
Ombudsman an official appointed to investigate individuals’
complaints against a company.

3
BUSINESS FUNCTIONS CHAPTER TWO

The differences between management and leadership

Leaders and managers play a vital role in contributing to the success of a business. In Grade
12 we will learn about different leadership styles and leadership theories, which impacts a
business

1 Differences between leadership and management

LEADERSHIP MANAGEMENT
Leaders inspires other people Managers ensures that tasks given to
subordinates are completed
People orientated Task orientated
Uses motivational approach Uses Instructional approach
Uses motivational approach Uses Instructional approach
A leader does not hold a managerial Managers hold a managerial position in the
position business
Leadership is the process of inspiring and Management is the process of achieving
influencing other to achieve business goals business goals
Influences human behaviour Guides human behaviour
A leader creates a vision/sets direction A manager understands the goals of the
business
Communicates by means of Communicates through management
interaction/behaviour/vision/value s/ functions, e.g. line function.
charisma.
Leaders are born with natural/ instinctive A person becomes a manager because
leadership skills he/she is appointed in the position
Lead by example/trust/respect Manage by planning/organising/leading and
controlling

2 The eight business functions

 General management
 Administration function
 Financial function
 Purchasing function
 Public function
 Human resources function
 Production function
 Marketing function

3. The purpose/importance of business functions

The general management
 Sets the overall direction or strategy for the business.
 This function leads, organises and controls all the other functions.
 There are also decisions taken in each level.
 Management has three different levels, each with its own roles and responsibilities-
ensures that there is co-ordination among the seven different functions of the
business.

4
BUSINESS FUNCTIONS CHAPTER TWO

3.1 The levels of management

The meaning of the levels of management
 The level of management determines a chain of command, the amount of
authority, and status enjoyed by any managerial position.
Let’s look at the three levels of management in more detail.
3.1.1 Top level management
 Oversees the activities of the other functions so that the business can achieve its
objectives.
 Reports to a board of directors/advisory board.
 Takes long term strategic decisions.
 Comprises of the CEO and directors.
 Develop long-term goals, strategic plans, and business policies.
 Responsible for directing, controlling and managing risks.
 Determines the vision/mission/objectives/strategy of the business.
 Act of getting people together to accomplish certain goals.

3.1.2 Middle level management

 Responsible for specific departments within the business.
 Takes medium term tactical decisions.
 Responsible for achieving the goals and objectives set for the specific department.
 Concerned with implementing plans made by top level management.
 Implements the vision and plans of the top management.
 Responsible for working with managers in other departments and for acquiring
resources needed in their departments.
 Execute the organisational plans in conformance with the companies’ policies.

3.1.3 Lower-level management

 Act as role models for employees because they provide supervision, performance
feedback and so on.
 Focus on controlling and directing.
 Responsible for a high level of productivity, technical assistance, and motivating
employees.
 Takes short term routine/tactical decision.
 Implement instructions given by middle management
 They are also called first management level as it is the first management level to
which subordinates can be promoted.

5
BUSINESS FUNCTIONS CHAPTER TWO

Levels of management and the type of decision taken by each.

Level of Type of decision Examples Responsibilities of the
management levels of management
Top level Make long- term CEOs, directors, -Plan the future of the
management strategic decisions. Owner of sole business.
(Policy), which will trader, partners -Manage change in the
have long-term in partnership business environment.
outcomes/ -Plan the activities of the
Consequences. business.
-Gives direction to the
vision, mission, goals and
objectives.
Middle level Make medium-term Departmental -Controls the people and
management tactical decisions. managers. e.g. processes in the
(organise the marketing business.
activities needed to manager. -It is the link between top
carry out a plan). financial management and lower
manager etc. level management.
-Pass information from top
management to lower
management
-Focuses on how the
business will carry out the
strategic decisions
-Acquire.
resources needed in their
department
Lower level Make short-term Foreman, -Make routine activities.
management operation decisions. supervisor, Plan the daily activities
team leaders. --Set individual objectives
for workers working under
him/her.
-Offer feedback and
suggestions to middle
management.
-Implement the objectives
of the middle
management.
-They motivate and guide
workers.
NOTE: You must be able to identify the levels of management from given statements
and scenarios

6
BUSINESS FUNCTIONS CHAPTER TWO

4. The management tasks

4.1 The meaning of the management tasks

The management tasks are tools used by an organisation to help complete projects
more efficiently by organising and prioritising related tasks. These tasks address a
general need to organise, prioritise and visualise work. Part of being organised includes
setting priorities for tasks, visualising the progress of tasks as they pass through stages
of completion, and compiling analysis or reports to direct future tasks and workflows.
There are five basic management tasks.
 There are five basic management tasks which include the following:
o Planning
o Organising
o Leadership
o Controlling
o Risk management

 These tasks should be carried out at different levels of the business.

 These tasks are carried out to ensure that the vision, mission, and goals of the
business are met.

4.1.1 Planning
 The process of setting goals and developing strategies.
 It includes getting all the information you need for planning.
 Top management formulates strategic plans.
 Middle management formulates tactical plans.
 Lower management formulates operational plans
 Analyzing the information and set long term goals.
 Considering different plans to achieve the goals.
 Choosing the best plan and decide on the action to be taken.
 Management looks ahead at the future to determine business objectives.
 Planning is done in all departments by all employees with the objectives of the
company in mind.
 Process of setting goals and making plans to achieve these goals.
 Deciding on the backup plan to use if the chosen plan becomes impossible.
 Implementing the chosen plan.
 Follow up to make sure the plan is successful, adjust it or change to the backup plan.
4.1.2 Organising
 It is the mechanism used to execute the plan.
 Involves breaking a plan into action.
 The way in which people are grouped together.
 May also include training to ensure that the jobs are carried out successfully.
 Ensures successful execution of the plan by using relevant organisational structure.
 It looks at what needs to be done and organizing resources need to achieve goals
and objectives.
 Organising the jobs within specific functions or departments.
 People must understand what is expected from them in terms of tasks/ authority /
 responsibility etc.

7
BUSINESS FUNCTIONS CHAPTER TWO

 The tasks are coordinated to keep resources moving efficiently toward set goals.
 Resources are prioritised to essential areas at any given time.
 This task brings resources together to achieve the set goals.
 The activities are assigned/delegated to specific individuals.
 Employees must know the organisational procedures for instructions and feedback
and which resources they can use.
4.1.3 Leading/Directing/Activating
 Letting staff know what needs to be done, and by when it needs to be done.
 The employees are motivated to contribute to the success of the business.
 The process of leading is to guide, motivate and inspire others to achieve goals.
 Supervise staff while motivating teams through guided leadership communicated in
clear ways.
 Refers to inspiring employees to carry out their task to the best of their abilities.
 Establishing a productive working climate.
 Motivating employees to achieve the goals set.
 Guiding employees in the right direction so that the business can achieve its goals.
 Activating workers to use their skills and resources to their best ability.
 Providing employees with directions on how things should be done.
 Respecting and treating employees so that they work willingly to achieve the
business goals.
 Leaders set up proper communication channels so that the workers are always
informed and there is clear transfer of information.
4.1.4 Controlling
 Ensures that the business achieve its goals.
 Establish performance standards and ensure that those standards are met.
 Ensures activities are carried out as planned.
 Enables the business to take corrective measures if the objectives are not achieved.
 The risk can be identified during control.
 Involves comparing actual results with goals set by management
 Corrective measures must be taken if there is a difference between actual results
and the goals the business set out to achieve.
 Continuous control ensures that the business runs smoothly.
4.1.5 Risk management
 Identify possible risk by finding risk-bearing activities (i.e. activities which could go
wrong) within the organisation.
 Assists businesses to in analyse each possible risk to assess how likely it is that the
risk will happen.
 Evaluates the potential impact of risk in terms of financial liability.
 Controls/Monitors the risk by studying reports and trends in the environment so that
measures can be taken to prevent it from happening.
 Handle the risk by determining what actions to take should the event happen using
available resources and contingency plan and communication with stakeholders.

8
BUSINESS FUNCTIONS CHAPTER TWO

5 Organisational structure

The meaning of the organisational structure

 An organisational structure is a system that outlines how certain activities are
directed to achieve the goals of an organisation.
 These activities can include rules, roles, and responsibilities.
 The organisational structure also determines how information flows between
 levels within the company.
Factors that influence the organisation structure
o Size of the organisation
o Strategy
o Technology
o Resources

5.1 Types of organisational structure

Functional organisational structure

 Employees get instructions from more than one manager.
 The plans to be executed determines who will be giving instructions.
 This structure confuses employees because they report to more than
one manager.
Project organisational structure
 Structured around project teams.
 It is a temporary structure because employees are drawn from different departments.
 Employees are then grouped to form a project team that will carry out a particular
project.
Matrix organisational structure
 Structured around projects but employees remain in their departments.
 A project must be completed up to a certain point.
 The project is then passed on to the next team that will carry out the next
phase of the project.

6 The administration function

The meaning of the administration function

 Handling of information and data.
 Administration is responsible for collecting, processing and distributing information
which is used for decision by management.
 Stores/Records information by using recent technology.
 Making general office work such as filing and storing of information.

9
BUSINESS FUNCTIONS CHAPTER TWO

6.1 Activities of the administration function

Management of information
 The administrative staff need to handle information correctly to avoid making the
incorrect decisions based on incorrect information.
 The administration function is responsible for dealing with the following types of
information:
o accounting records, which can be used to draw up financial statements and
reports keeping all business transactions up-to-date.
o cost accounting to determine whether a product can be sold at a competitive
price while considering the manufacturing or production costs
o budgets, which is a plan of estimated expenses and income for a specific
period
o collecting and classifying numerical data and statistics.

6.1.1 Collection of information

 Information is collected from both outside and inside the business.
 Correct and reliable information should be available for meaningful decision
making and to run the business successfully.
 Any other relevant answer related to collection of information as an activity of
the administration function that could be applied by FED.
6.1.2 Information technology (IT)
 IT is the use of electronic equipment to assist with various administrative tasks.
 Technology is used to communicate and handle information and is referred to
as ICT (information and communication technology).
6.1.3 Office practice
 Office practice refers to how the administrative staff should handle their duties
 It covers matters such as the dress code for employees/ proper filing of documents/
telephone etiquette/internet usage by staff etc.

The differences between data and information

DATA INFORMATION
Refers to raw/unprocessed facts found in Refers to processed/analysed data that
statistics/ graphs/ tables. gives specific knowledge to managers to
make decisions
Data can be collected from other business Information can be stored manually in
functions within the business. files/boxes/shelves/computers etc.
Data needs to be processed before it can It is important to have a backup for all
be used as information. stored information on computers or other
electronic devices in case they are
damaged
Data can be processed manually or using Most businesses use electronic devices
technology such as computers such as memory sticks and CDs to store
information
NOTE: The action verb “Differentiate/Distinguish” means that the difference/
distinction does not have to link but they must be clear.

10
BUSINESS FUNCTIONS CHAPTER TWO

7 The financial function

The meaning of the financial function

 Financial function is responsible for planning and managing all the funds and assets
of the business.
 Businesses need a regular stream of income to pay their expenses
 The financial function involves the acquiring and utilisation of funds necessary for
efficient operations.

7.1 The purpose of the financial function

 The financial function determines how much capital the business needs.
 Establishes the sources for acquiring the capital.
 Decides how to invest/allocate the capital funds in the business
 Ensures that the business can generate enough income to cover the cost of raising
capital
 Prepare financial statements to present to the bank/investors to convince them that
the business is financially healthy.

7.1.1 Sources of financing

Bank loans
 This is money borrowed from the bank and will be repaid over a period of time.
 The money is repaid with an interest.
 The entrepreneur who borrows money may attach his/her fixed asset as surety to
the value of the loan.
 Bank loans are usually used for long-term financing.
Bank overdraft
 It is the short -term loan added onto the account of an entrepreneur/business.
 It is also repaid with an interest over an agreed upon time frame.
Asset-based loan
 The money lent to successful businesses that want to expand further.
 The loan is used to purchase an asset and that asset belongs to the lender until it is
fully paid off.
 If the money is not paid back, then the lender will take that asset.
Grants
 This is money provided by government to small businesses that are developing.
 The money does not have to be paid back if it benefits the community.
 The government want to see small developing businesses benefiting the community
and the environment in some way.
Receivable finance
 This is a loan provided to businesses while waiting for payment of the goods /service
provided to avoid a cash flow shortage.
 The loan is equal to the outstanding invoices that are due.
Angel funding
 This is money offered by wealthy entrepreneurs to other businesses for a share in
that business.
 This is usually used at the start of a business and carries a high risk for the investor.

11
BUSINESS FUNCTIONS CHAPTER TWO

Venture Capital
 This is money offered by individuals or organisations to start up or expand the
business.
 This is done in exchange of a share in the business.
 The investor usually requires for a management position or to be a board member in
the business
NOTE: You must be able to identify the sources of financing from given
scenarios.
8 Budgeting
 It is a planning tool to estimate the money that will be received (income) and how it
will be used (expenditure). Once the budget is drawn, it should be compared to the
actual income and expenditure. Budget enables businesses to keep track of its
finances and ensure better profitability.
 Each department within the business should have its own budget.

8.1 Types of budgets

Capital budget
 Determines whether an organisation’s long-term investment plans are worth
pursuing.
 Estimates the fixed capital.
 Plans the purchasing, upgrading, and changing of the fixed assets such as buildings,
machinery, equipment, and so on.
Cash budget
 Determines whether income will be sufficient to cover expenses.
 Estimates the working capital.
 Assesses whether the business will be able to buy all the needs for its operation.

9 Investments
 Businesses invest some money from its profit to generate wealth and income.
 Invested money increases without labour effort.
 Businesses can choose to invest in financial institutions, government bonds or public
companies.
 Investments options are available include property investment/ unit trust investments/
Government Retail Saving bonds/fixed deposits etc.

12
BUSINESS FUNCTIONS CHAPTER TWO

Types of capital
Fixed capital
 Is the capital that people invest in fixed assets, for example, land and buildings.
 Finance long term capital needs of the business.
Examples: capital market, selling shares, mortgage bonds etc.
Working capital/operating capital
 Money pays for day-to-day activity, e.g. trading stock, raw materials, etc.
 Finance the short-term capital of the business.
Examples: money market, credit allowed by suppliers, short terms loans etc.
Own capital
 This type of capital is provided by the owners of the business.
 It could come from their savings, the sale of their assets, or investors.
Examples: personal savings and venture capital.
Borrowed capital
 It is money borrowed from financial institutions like banks or person.
 The money should be paid back with interest example bank loan, bank overdraft

Differences between a fixed and working capital

FIXED CAPITAL WORKING CAPITAL
- Money pays fixed assets, e.g. land and - Money pays for day-to-day activity, e.g.
buildings etc. trading stock, raw materials, etc.
- Finance long term capital needs of the - Finance the short-term capital of the
business. business
- Examples: capital market, selling shares, - Examples: money market, credit allowed
mortgage bonds etc. by suppliers, short terms loans etc.

Differences between owned and borrowed capital

OWNED CAPITAL BORROWED CAPITAL
- Owner provides capital - Obtained from financial institutions
- Permanent capital as company is not - Temporary capital as it is to be
under obligation to repay the amount. repaid after a fixed period.
- It is not a liability for a business. - It is a liability for a company.
- Return on capital .is on profits. - Return on capital is paid in the form
of interest.

13
BUSINESS FUNCTIONS CHAPTER TWO

10 The public relations

Meaning of the public relations

 The public relations is responsible for keeping all stakeholders of the business
happy.
 It ensures that there is good communication between the business and all its
stakeholders

10.1 The importance of public relations

 Businesses get publicity for promotional events and information through media.
 News conferences may be called to release information which will ensure the survival
of the business.
 Employees may volunteer to spend time with people in need at
orphanage/hospitals/schools etc.
 Businesses can sponsor community events.
 Produce annual reports that review business activities and achievements.
 Brochures can be used to distribute information.
 Networking a popular form of public relations direct contact with employees or
telephonic communication.
 Attend network events and talk about the business product.
 Use corporate social responsibility as a public relations activity involving communities
to get positive exposure.

10.2 Networking as a popular form of public relations.

 Clients/customers can have direct contact with employees or they can communicate
telephonically.
 Business representatives should attend networking events and promote the product/s
of the business.
 Business could use corporate social responsibility involving communities as a public
relations activity. This will promote businesses and ensure positive exposure.

Differences between external and internal public relations

EXTERNAL PUBLIC RELATIONS EXTERNAL PUBLIC RELATIONS
-Creates a good company image and -Creates a good company image and
awareness to those outside of the awareness to employees in the
company. company.

10.3 Methods of public relations

Media
 Businesses get publicity for promotional events and information through media.
 Includes advertising and the distribution of about the business
Direct contact
 Information about the business is passed on to the members of the public who have
dealt with the business previously.
 Direct contact with employees or telephonic communication is a popular form of
public relations.
Brochures
 Excellent way of distributing information in a cost effective way.

14
BUSINESS FUNCTIONS CHAPTER TWO

Exhibitions
 The business is introduced to the public and meet existing customers in shopping
centres
Social responsibility
 The business uplifts the community as the community support the business by buying
their product.
Transit advertising
 Advertising on vehicles such as taxis, busses, vans etc.
Use of the telephone
 A potential customer phones the business to enquire about something, the person
answering the phone is perceived as the business.
 If the potential customer is pleased with when information that was required, then that
person can r to be the important customer

11 The purchasing function

The meaning of the purchasing function
 The purchasing function plays an important role in buying quality raw materials and
services for the business
 It should continuously look for suitable, new and better suppliers
 It should place orders with suppliers and follow up on them to ensure that the ordered
products are delivered on time.
 It ensures that ordered goods are delivered at the agreed price, right quantities and
right quality.

11.1 The purpose of the purchasing function

 Manage stock to ensure sufficient levels of stock to carry out business operations.
 Continuously looking for the best/reputable suppliers.
 Regular make contact with other business departments to determine their needs.
 Send damaged goods back to the supplier and see to it that it is replaced.
 Receive confirmation that all goods were according to specifications and the price
invoiced as the quoted price.
 Negotiate the best possible term of payment with suppliers.

11.2 Activities of the purchasing function

 Purchasers should have expert knowledge of the product they need to buy and about
the market in which they operate.
 Find out the needs other business department
 They look for suitable, new and better suppliers.
 Ensure that there is enough stock available for continuous production and sales.
 Place orders with suppliers and follow up on them.
 Ensure that ordered products are delivered on time.
 Send damaged products back to the suppliers and see to it that they are replaces.
 Buy the right amount of stock/quantity so that the business does not run out of stock.
 Buy goods from the best supplier, who supply the goods at the right time and place
 Get the best price for the quality that the purchasing function requires
 Keep the correct stock levels of stock on hand
 Record the cost prices and selling prises of stock

15
BUSINESS FUNCTIONS CHAPTER TWO

11.3 Purchasing procedure

The following purchasing procedure should be followed
Determine the need for the product/Requisition
 Liaise with the financial department to establish the budget for the purchasing of
goods and services.
 Determine the product/material/ resource needs of the businesses.
 Find the right quality/ quantity of goods and services at the right price and at the right
time.
Determine the price of the product
 Find the best price by obtaining quotes/tenders or making enquiries.
Select/Choose a suitable supplier
 The purchasing department should choose reliable suppliers for its raw
materials/products.
 Evaluation criteria based on quality of raw material/prices/delivery time, should be
used to select the best suitable supplier.
 The purchasing department should conduct a thorough investigation about potential
suppliers /their reputation and reliability.
Place an order
 The purchasing function should place an order in writing so that goods delivered can
be compared with the order.
 Confirm the prices of the products on order to avoid unexpected surprises when
payments are made.
Collect or receive the order
 The purchasing department should ensure that the right orders are received and
recorded.
 The quality and quantity of stock received should be checked against the order.
 The purchasing department should keep a copy of a delivery note for records
keeping purposes.
Pay the supplier
 Purchasing department instructs the financial department to pay the supplier after
delivery of the order.
 The supplier must provide copies of the requisition form to the purchasing
department.
 Purchasing department must provide a delivery note to the financial department.
 The supplier sends the invoice to the financial department for final payment after
satisfactory delivery.
Distribute stock
 The purchasing department should ensure proper distribution of stock/raw materials
to all relevant departments.
 Distribution of stock should be in line with pre-requisite orders from each department
to avoid stock loss.
Complete the order
 The purchasing department ensures that all the correct documentation is in place
and filed for future reference.

16
BUSINESS FUNCTIONS CHAPTER TWO

12 The importance of stock control

 Enables businesses to determine the amount/value of stock.
 Businesses can check the cost and selling price of products.
 Ensures that there is enough stock to meet the normal demand of customers. Keeps
the correct levels of stock on hand.
 Records the cost prices and selling prices of stock.
 Identifies theft in the business when the physical stock count is compared with the
electronic stock control system.

Cash and credit payments

Differences cash and credit purchasing
CASH PAYMENT CREDIT PAYMENT

 Cash payment refers to all payments  Credit payment refers to all payments
made by cash/ cheque for business made by means of credit cards/on future
purchases date for business purchases.

 Cash payment enable businesses to  Credit payment allows businesses to buy

budget for stock purchases and avoid stock and pay on a future date. .
unnecessary delays
 Cash payers can qualify for cash  The credit payer can pay more for goods
discounts. due to interest added on credit purchases.

Advantages of credit purchasing

 There is no discrimination based on age/ race/age/religion on granting credit.
 If interest rates decrease consumers will have more cash to pay off debts.
 Consumers will be having disposable income to purchase products if interest rates
are low.
 Low income consumers can buy products on an affordable re-payment as per credit
agreement.
 Consumers can access more than one credit from different creditors if the creditor
made a personal assessment and is satisfied with the credit evaluation.
 Credit goods bought by the consumer have extended warrantee per the credit
agreement.
 If any of the goods/products is damaged it can be easily repairable or replaced.

Disadvantages of credit purchasing

 There is always the risk of unsettled debts.
 Accounts should be send out to debtors.
 There will be less money to invest for consumers
 The credit provider can refuse credit based on credit risk evaluation.
 A consumers’ income and expenses can be declared reckless and can be
suspended if a credit agreement is not adhered to.
 Consumers will have less money to spend so they would not buy as much
 The consumer pay more than the original price due to high interest rates on credit
purchases.

17
BUSINESS FUNCTIONS CHAPTER TWO

13 National Credit Act/NCA

Definition of the NCA

The NCA was introduced to provide both credit provides and credit applicants with
clear guidelines regarding their rights and responsibilities.
This Acts applies to all businesses that sell on credit.

The purpose of the NCA

 Promotes the development of a credit market that is accessible to all South Africans
 Encourage responsible buying
 Avoidance of over-indebtedness and fulfilment of credit providers and consumers
 Address and correct imbalances in negotiating power between consumers and credit
providers
 Discourage reckless credit granting by credit providers
 Educate consumers on making the right choice when applying for credit
 It gives guidelines within which the different kinds of credit transactions must take
place in South Africa

Consumer rights outlined in the NCA

Consumers have a right to…

 apply for credit.
 receive information in one’s official language.
 be protected unfair discrimination in granting credit.
 be given reasons why an application for credit is refused.
 be informed about the interest rate and any other costs of the proposed credit
transaction.
 receive a copy of a credit contract and a replacement copy when the consumer asks
for one.
 apply for debt counselling if a customer has too much debt.

The impact of the National Credit Act on businesses

Positives/Advantages
 Lower bad debts resulting in better cash flow.
 Protects business against non-paying consumers.
 Increases cash sales as credit can only be granted to qualifying customers.
 Prevents reckless lending by financial institutions.
 Ensures that businesses settle their debts on time so that they can obtain good credit
scores.
 Ensures that credit process is transparent e.g. both businesses and customers know
their responsibilities.

AND/OR

Negatives/Disadvantages
 Businesses are forced to budget to keep more cash/have enough cash on hand for
stock purchases.
 Businesses can no longer take the risk of selling poor quality goods at high prices.
 Businesses can no longer carry out credit marketing.

18
BUSINESS FUNCTIONS CHAPTER TWO

 Businesses can only buy limited stock as credit is not available resulting loss of
customers.
 The Act complicates the purchasing process due to too much administration work in
the credit providing process.
 The Act compels businesses to sell quality products or businesses may be forced to
reimburse the consumer.
 Leads to loss of sales as many businesses may no longer qualify to buy on credit.
 The purchasing department must know the terms and conditions of credit granting
and the National Credit Act.
 It may take longer to purchase goods and this could influence the overall efficiency of
the business.

Responsibilities of credit providers

 Credit providers should conduct a credit assessment on the consumers’ affordability.
 Check the most recent pay slip or bank statement to ensure the consumer has an
income.
 Check the consumer’s monthly debt-repayment obligations in terms of credit
agreements.
 Consider other expenses of the consumer.
 Consider the consumer’s debt-repayment history

Remedies of the NCA

The Consumer Tribunal

 The Consumer Tribunal is responsible for reviewing decisions made by the National
Credit Regulator (NCR), the National Consumer Commission (NCC).

National Consumer Commission

 The National Consumer Commission is responsible for promoting compliance with
the NCA and CPA through advocacy and enforcement.
 Protects the economic welfare of consumers.
Ombudsman
 An ombudsman is an independent person with authority and responsibility to
receive/investigate/formally address complaints from consumers.

14 The Consumer Protection Act/CPA

Definition
 The consumer Protection Act was introduced to prevent consumers from exploitation
by businesses.
 This Acts ensures the full participation of previously disadvantaged individuals in the
economy.
 It applies to all businesses which sell goods and services to consumers.

Purpose of the Consumer Protection Act

 Promotes responsible consumer behaviour.
 Promotes consumer safety by protecting them from hazardous products/ services.
 Promotes fair/accessible and sustainable places for people to sell their products.
 Promotes consistent laws relating to consumer transaction and agreement.

19
BUSINESS FUNCTIONS CHAPTER TWO

 Promotes the rights and full participation of historically disadvantaged individuals as

consumers.
 Establishes national standards to protect consumers.
 Establishes a National Consumer Commission (NCC).
 Ensures that consumers have access to information they need to make informed
choices.
 Provides guidelines for better consumer information and to prohibit unfair business
practices.
 Protects consumers against contracts that include unfair terms which limit the liability
of suppliers.
 Strengthens a culture of consumer rights and responsibilities
 Empowers consumers to take legal action if their rights are not upheld.

The impact of Consumer Protection Act on businesses

Positives/Advantages
 Businesses may be safeguarded from dishonest competitors.
 Businesses may be protected if they are regarded as consumers.
 Businesses may build a good image if they ensure that they do not violate consumer
rights.
 Prevents larger businesses from undermining smaller ones.
 May gain consumer loyalty, if they comply with CPA.
 Enables businesses to resolve disputes fairly through the National Consumer
Commission/Consumer Court/Industrial ombudsmen
AND/OR

Negatives/Disadvantages
 Confidential business information may become available to competitors.
 Penalties for non-compliance may be very high.
 Businesses may feel unnecessarily burdened by legal processes.
 They have to disclose more information about their products and processes/services
 Staff need to be trained /Legal experts need to be consulted, which can increase
costs conducted.

20
THE CONCEPT OF QUALITY CHAPTER 3

BUSINESS STUDIES

GRADE 10
PAPER 1
CHAPTER 3
(PART 1)
THE CONCEPT OF QUALITY
REVISED NOTES
2025

TABLE OF CONTENTS

TOPICS PAGES
Exam guidelines for the concept on quality 2
Meaning of concepts 2
Meaning of quality 2
Meaning of quality control 2
Meaning of quality assurance 3
Differences between quality control and quality assurance 3
Outline/Explain/Discuss the importance of quality for businesses 3

This chapter consisting of 3 pages

1
 THE CONCEPT OF QUALITY CHAPTER 3

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT

PURPOSES
TERM/CONCEPTS DEFINITION/MEANING
Quality Refer to how goods/services satisfy the specific needs of
customer.
Quality control a system to maintain standards in manufacturing by testing
the output against the specifications.
Quality assurance the continuous maintaining of the required level of quality in
a service/product
Business function activities carried out by the enterprise, for example,
marketing, production, administration, financial, human
resources, purchasing, and so on.
Quality management the act of overseeing all activities and tasks needed to
maintain a desired level of excellence.

Learners must be able to:

 Define/Elaborate on the meaning of quality, quality control and quality assurance.
 Explain/Distinguish between difference between quality control and quality assurance.
 Outline/Explain/Discuss the importance of quality for businesses.
 Explain how quality relates to the following business functions:
o human resources function
o administration function
o financial function
o general management
 Outline/explain/suggestion quality indicators of the business function.
 Explain/discuss the correlation between management and the success of the business.
 Identify the strength and weaknesses of a business from a given scenario/case studies.
 Evaluate the strength and weaknesses of a business and make recommendation.

1 The meaning of quality

 Quality is the ability to satisfy customer/consumer needs.
 It refers to the features/characteristics of a product/service that meets customer’s
requirements.
 It refers to products and services that satisfy needs and exceeds customer expectations
on a continuous basis.
 Includes learning from mistakes and continuously improving all aspects of the business.
 It is a degree of excellence to which a product/service satisfies the required needs of
customers.

2 The meaning of quality control

 Inspection of the final product to ensure that it meets the required standards.
 Includes setting targets/measuring performance and taking corrective measures.
 Raw materials/employees/machinery/workmanship/ production are checked to
ensure that high quality standards are maintained.

2
THE CONCEPT OF QUALITY CHAPTER 3

3 The meaning of quality assurance

 The inspection of products/services should be carried out during and after the production
process.
 This will ensure that the required standards that were set out for the product/service have
been adhered to at every stage of the process. It also ensures that every process is aimed
at getting the product/service right the first time, and enables teams to prevent mistakes
from happening.

4 Differences between quality control and quality assurance

QUALITY CONTROL QUALITY ASSURANCE
Inspection of the final product to Carried out during and after the production
ensure that it meets the required process to ensure required standards have
standards. been met at every stage of the process
Includes setting targets/measuring Ensure that every process is aimed at
performance and taking corrective getting the product right first time and
measures. prevent mistakes from happening again.

5 The importance of quality for businesses

 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.
 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.
 The quality enables businesses to have a good reputation and promotes brand
awareness.
 Consumers associate the image of the business with the quality of the product.
 Quality products increase sales, profits, business growth and attracts prospective
investors.
 The business gains goodwill and support from the community.
 Improves business image as there are less defects/returns.

Quality in products
Methods used to indicate quality include the following:
 Trademarks: brand names, a slogan, or a logo used by manufacturers.
 Samples: a small sample product intended to show the customers how the
 real product will look.
 Grades: a particular level that is used to rank the quality of the product.
 Commercial Standards: the South African Bureau of Standards (SABS)
approves commercial standards of products.

3
THE CONCEPT OF QUALITY GAUTENG GRADE 10 NOTES CHAPTER 3

BUSINESS STUDIES

GRADE 10

PAPER 1

CHAPTER 3

TERM 1

(PART 2)

THE CONCEPT OF QUALITY

REVISED NOTES

2025
TABLE OF CONTENTS

TOPICS PAGES
Examination guidelines 2
Quality indicators of the following business functions : 2-3
o Human resource,
o Administration,
o Financial
o General management
The correlation between management and the success of the 3
business.

This chapter consisting of 3 pages

1
 THE CONCEPT OF QUALITY GAUTENG GRADE 10 NOTES CHAPTER 3

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT

PURPOSES
Learners must be able to:
 Outline/Explain/Suggest quality indicators of the business function of the following
business function
o Human Resources function
o Administration function
o Financial function
o General management
 The correlation between management and the success of business in achieving its
objectives; strengths and weaknesses

1. Quality indicators of the business functions

1.1. Quality indicators of the Human Resources Function
 A Low rate of staff turnover in the business.
 Maintain a healthy relationship between employees and employer
 Provide good working conditions
 The HR manager should work towards building a good relationship
with employees.
 Performance incentives for staff should be offered to increase productivity.
 Market-related salaries should be offered.
 Fair remuneration packages that are aligned to the industry should be provided.
 Makes sure there is a good recruitment policy that attracts best candidates.
 Ensures fair and equitable selection process
 Offer performance incentives for staff to enhance productivity.
 Good relationship with employees.
 Ensure that employee understand the goals and objectives of the business
 Understand the interrelatedness of different departments

1.2 Quality indicators of the administration function

 Use modern technology efficiently.
 All systems and processes should be documented
 Easy to recall/find information/documentation. This is vital part of the administration
function.
 Complaints should be quickly and effectively.
 The administration function should collect data that can be used in decision- making, and
store it safely.
 Fast and reliable data capturing and processing systems.
 Make relevant information available for quick decision-making.
 All documentation is kept neatly and orderly in a safe place.
 Financial documents are kept up to date and recorded accurately.
 Vital information should be available to management when needed.

1.3 Quality indicators of the financial function

 Ensuring a healthy cash flow through ensuring payments are made on time.
 The financial function has to obtained capital from the most suitable sources.
 They should draw a budget to ensure sufficient allocation of cash to prevent wastage.
 Financial records to be kept up to date.
 Accurate financial statements should be drawn up so that management can see the
performance of the business.
 Accountability through tight financial processes.
 Negotiate better interest rates in order to keep financial cost down.

2
 THE CONCEPT OF QUALITY GAUTENG GRADE 10 NOTES CHAPTER 3

 Draw up accurate financial statements timeously/regularly.

 Surplus funds should be invested to save for future projects/expansion/growth.

1.4 Quality indicators of the general management function

 The general management function develop/Implement/Monitor effective strategic plans.
 Set direction and establish priorities for their business.
 Effectively communicate shared vision, mission and values.
 Take responsibility for setting direction and prioritising responsibilities.
 Ensure that employees have the necessary resource to do the work
 Ensure that all departments/the business meet their deadlines/targets
 Learn about/understand changes in the business environment on an on-going basis.
 Be prepared to set an example of the behaviour that is expected from employees in terms
of ethics/professionalism as well as productivity.

2. The correlation between management and the success of

business in achieving its objectives, strengths, and weaknesses
 Management play an important role in making the correct decisions and motivating
employees to be productive.
 Poor management can result in ineffective employees and loss in productivity.
 Businesses requires ongoing decisions making and problem solving.
 Problems that cannot be solved and decisions that are not made appropriately can lead
to a decrease in productivity.

3
MARKET ENVIRONMENT GRADE 10 NOTES CHAPTER 4

BUSINESS STUDIES

GRADE 10
PAPER 1
CHAPTER 4
THE MARKET ENVIRONMENT
REVISED NOTES
2025

TABLE OF CONTENTS

TOPICS PAGES
The meaning/definition of concept 2
Components of the market environment 2-3
Suppliers
The market (Customers/Customers) 2-3
Competitors 4
Other organisations/Civil organisations 5
Other organisations/Civil organisations 6
Meaning of opportunities and Threats in a business context. 7
This chapter consists of 7 pages

1
MARKET ENVIRONMENT GDE GRADE 10 NOTES CHAPTER 4

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT

PURPOSES
TERMS/CONCEPTS EXPLANATION/ MEANING
Competitors these are business that sell more or less the same
goods and services.
CBOs these are community-based organisations that
provide certain essential goods/services to the
members of the community.
NGOs these are non-governmental organisations that are
established to provide for certain needs of the
people in the community without the aim of making
a profit.
Regulators government bodies/institutions that make rules and
regulations to monitors the operations of
businesses, for example, SABS, ACSA, and so on.
Strategic allies businesses that join their resources together to
undertake a project that will benefit all the members
in the alliance.
Unions an organised group of workers that protect the
interest of their members in a particular industry.

Opportunities all the things within the business that will contribute
to the success of the business.
Threats anything within the business that will prevent the
business from achieving its goals/objectives.

 Define/Elaborate on the meaning of the market environment.

 Outline/Describe/Explain/Discuss the components of the market environment
 Identify the components of the market environment from given scenarios,
statements/case studies/cartoons/pictures and motivate your answer.
 Explain/Discuss/Outline reasons why competition poses a challenge to
businesses
 Explain/Outline/ Give examples of other organisations/civil society.
 Explain the meaning of opportunities and threats in a business context and
give practical examples of each.
 Identify opportunities and threats from given scenarios/ case studies and
statements
 Conduct a research on opportunities and threats faced by businesses. Make
recommendations for improvement.

1 The meaning of the market Environment

 The market environment refers to the immediate external components that
directly affect the ability of the business to operate
 Challenges and influences outside the business.

2
MARKET ENVIRONMENT GDE GRADE 10 NOTES CHAPTER 4

 For the business to be successful it must be able to influence the

components in this environment.
 Businesses have little or no control over the environment.
 All elements that determine the reasons for the existence of a business.
 Includes all forces/stakeholders that have a direct effect on the functioning of
the business.

2 Components/Features/Elements of the market Environment

2.1 Customers/Customers/Market
 The market refers to all the people who have money to buy goods and
services.
 These people are known as consumers or customers.
 Customers are the buyers/final users of products and services offered by
businesses.
 Their spending decision is influenced by cultural, social, personal, and
psychological factors.
 Customer’s preferences and taste does change as time goes by, so it is
essential for businesses to conduct market research to ensure that their target
market’s changing needs are continuously met.
 If customers are not happy with the products or services of a business, they
will turn to a competitor.

3
MARKET ENVIRONMENT GDE GRADE 10 NOTES CHAPTER 4

 Businesses should understand their customers’ needs and wants in order to

build a good relationship with them.
 The more customers the business have the more money they have flowing
through the business.
 The government is also a customer as it buys goods/services from
businesses through contracts and tenders.

2.2 Suppliers
 Suppliers are individuals/agents who provide the raw materials, transport and
other services to the business.
 The business needs inputs from suppliers to produce goods and services.
 Suppliers play an important role in the success or failure of a business e.g.
consumers will purchase the product/services from another business if a
supplier is unable to supply a particular product/services.
 Businesses usually choose suppliers provide the best quality of goods, correct
quantity and deliver goods at the agreed upon times and at the best price.
 Producers and manufacturers are some examples of suppliers as they supply
raw materials.
 Businesses can establish a good relationship with their suppliers by signing
long-term contracts for their raw materials at fixed prices.

2.3 Intermediaries/Agents
 The intermediaries of a business are all those businesses that play a role in
distributing/promoting the goods and services to customers.
 They bridge the gap between the manufacturer and the consumer.
 They serve as a link the micro environment to the market environment.
 Intermediaries make it easier for the consumer to access the product, by
selling the product closer to the consumer’s location.
 Intermediaries often affect the final price of goods and services as they place
a mark-up on the product before they sell it to consumers.
 Many intermediaries/Agents receive a commission on the sale of products.
 Some of the examples of intermediaries are:
o Retailers, agents, and wholesalers
o Financial institutions and insurance brokers.

2.4 Competitors
 Competitors are all businesses that provide similar products or services for
more or less the same target market.
 Businesses also compete with other businesses for skilled employees/raw
material/equipment/finance etc.
 Businesses will be forced to offer quality products or services at the lowest
possible prices or else they will lose their customers to their competitors.

4
MARKET ENVIRONMENT GDE GRADE 10 NOTES CHAPTER 4

 Examples of competitors in the retail market include Spar and Shoprite,

Woolworths and Truworths, MTN and Vodacom, etc.
 Competition also comes from businesses that produce possible substitute
goods.
 Competition is influenced by the following Porter’s Five Forces model:
o New entrants to the market
o Power of suppliers
o Power of consumers
o Threats of substitute products/services
o Competitive rivalry.
 Competition is beneficial to customers because it keeps prices down.
 Competition also promotes innovation and encourages businesses to be
more productive.
3

3.1 Civil society/Other organisations

Civil society are those organisations that deal with social problems.
These organisations include non-government organisations (NGOs)/ community-based
organisations (CBOs) unions/regulators/strategic allies etc.
A CBO could affect the operation of a business through lobbying.

Community based organisations (CBOs)

Community-based organisations (CBOs) are established to assist the community with job
creation, socio-economic development, and becoming self-sufficient.
They are local organisations that operate in the community to provide social services with
aim of social upliftment.

5
MARKET ENVIRONMENT GDE GRADE 10 NOTES CHAPTER 4

They focus on socio-economic issues such as:

– HIV/AIDS
– unemployment
– crime
– illiteracy.
3.2 non-government organisations (NGOs)
Non-governmental organisations (NGOs) are non-profit organisations that operate
separately from the government. They are established to fulfil important needs in the
community by addressing some socio-economic issues.
They are part of the market environment because they supply consumer goods and
services and they are concerned about the welfare of others.

3.3 Regulators
 Regulators are government bodies that make rules and regulations to control the
activities of businesses.
 These rules and regulations are put in place to ensure that businesses do not exploit
their customers or employees.
Some of the examples of regulators in South Africa are the:
o National Energy Regulator of South Africa (NERSA) which regulates electricity/ piped
gas/petroleum pipeline industries etc.
o National Credit Regulator (NCR) which regulates the supply of loans/credit by credit
providers such as banks and retailer such as clothing and furniture.
o Independent Communications Authority of South Africa (ICASA), which regulates the
South African communications, broadcasting, and postal services sectors.
o Advertising Standards Authority (ASA) regulates advertising in the public interest.

3.4 Unions
 Unions are established bodies that protect the interest of workers. They have the right to
call for industrial actions such strikes or go-slows if their demands are not met by
organisations or the government.
 They constantly negotiate for better wages and salaries for their members and also
safeguard their members against unfair dismissal.
 They also negotiate for better working conditions for their members and may represent
them during disciplinary hearings.

3.5 Strategic alliance

 Strategic allies are businesses that combine their resources to undertake a project that
will benefit all of them. They may share their expertise and information to benefit all their
members.
These relationships help businesses to explore new markets and also gain competitive
advantage.
4 Reasons why competition poses a challenge to businesses
 Competition keeps prices down and reduces the business profitability.
 It forces businesses to find new ways to produce an existing products or develop new
products/ services.
 A business may close down if it is unable to compete with other businesses.
 Competition reduces the business market share and its target market.

6
MARKET ENVIRONMENT GDE GRADE 10 NOTES CHAPTER 4

5. Opportunities and threats faced by businesses in the external

environment
 Businesses are faced with both opportunities and threats in the market environment in
which they operate. Businesses do not have any control over these however, they can
influence them to some extent.
 Management sees competition as an opportunity and a threat.

5.1 The meaning of opportunities

 Opportunity takes place when consumers are made aware of the product if it is
marketed by different businesses.
 Opportunities are any factors in the external environment that will contribute or
is already contributing to the success of the business.
 Businesses need to constantly seek opportunities in their external environment
in order to remain competitive.
 Opportunities will always be available when consumers need to satisfy their
needs.

5.2 The meaning of threats

 Threats are any factors in the external environment that will stand in the way or
is already standing in the way of businesses achieving their goals.
 Businesses have a challenge of constantly identifying threats in the external
environment and devising strategies to turn them into opportunities otherwise
they will not be successful.
 A threat exists if a business is unable to produce/perform s desired because of
reasons outside the business such as competition/legislation/global economic
trends.
Examples of opportunities and threats
OPPORTUNITIES THREATS
 Expansion of product lines to  New competitors entering the
serve a broader range of market with a lower prices.
customers.  New legislation which could limit
 Entering into new markets. business transactions.
 Decline in interest rates.  Changing buyer needs and
 New law which increases tastes.
consumer minimum wages and  Slower market growth.
salaries.  Increase in interest rates.
 Increase in investor in the  Less investment in the business.
business.
 Increase in production due to
increase in demand.

7
BUSINESS STUDIES GRADE 10 NOTES MACRO ENVIRONMENT CHAPTER 5

BUSINESS STUDIES

GRADE 10

PAPER 1

TERM1

CHAPTER FIVE

MACRO ENVIRONMENT

REVISED NOTES

2025

TABLE OF CONTENTS

TOPICS PAGES
Exam guideline for the macro-environment 2
Meaning/ Explanation of concepts 2
Meaning of the macro environment 3-4
Practical examples of each component/ feature of the macro 4-5
environment
Reasons why each component/feature poses a challenge to 6-7
businesses

This chapter consists of 6 pages

1
 BUSINESS STUDIES GRADE 10 NOTES MACRO ENVIRONMENT CHAPTER 5

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT

PURPOSES
 Define/Elaborate on the meaning of the macro-environment.
 Briefly explain the reasons why the macro environment can be a challenge to
businesses.
 Define/Give practical examples of each component/feature of the macro environment
 Briefly explain the reason why each component/feature poses a challenge to
businesses.
 Identify the components of the macro environment from given
scenarios/statements/case studies/cartoons/pictures.

TERM/CONCEPTS DEFINITION/MEANING
Cultural environment the cultural environment affecting businesses includes religion, customs,
and traditions, which influence actions and decisions.
Demographic refers to the socio-economic characteristics of a population, which
environment businesses use to identify the product preferences and purchasing
behaviours of customers.
Economic refers to all the external economic factors that influence buying habits of
environment consumers and businesses.
International/global refers to the international interactions that influence how businesses
environment: operate.
Legal environment the laws passed by the government in which businesses operate.
Physical/Natural refers to natural and man-made variables that surround businesses.
environment
Technological refers to development in the field of technology with new and innovative
environment knowledge, new inventions, and other improvements in techniques that
affect businesses.
Institutional refers to the three levels of government in South Africa, that puts laws and
environment rules that regulate how businesses operate in place.

1 The Macro environment/External environment

The meaning of the macro environment/External environment

 The macro-environment includes all the forces/events and circumstances that affects
the business and its market environment.
 It refers to the interaction of businesses with forces outside of themselves.
 This is the environment that is located outside the business.
 The macro environment is also known as the external environment.
 The business cannot control this environment but it can influence it.
 It is also known as the external environment
 The macro environment is always developing and changing
 Businesses have no control over this environment as it poses challenges to
businesses.

2
BUSINESS STUDIES GRADE 10 NOTES MACRO ENVIRONMENT CHAPTER 5

Components of the macro environment

 Physical/Natural environment
 Economic environment
 Social, cultural and demographic environment
 Technological environment
 Legal environment and political environment
 International /Global environment
 Institutional environment

2 Practical examples of the features the macro environment

Political  Some government policies may affect businesses

 Trade agreements
Economic  Inflation/Interest rates.
 Loans
 Fluctuations in foreign currency.
 High inflation/Interest rate
 Loans may be expensive due to high interest rates.
 Fluctuations in foreign currency may restrict imports.
 Trade agreements of some medicine/products.

Social  low income levels/high unemployment.

 language of customers.
 Some customers preferences .
 High crime rate
Technological  latest technology.
 online transactions/e-commerce.
Legal  Business legislations such as Employment Equity Act, Skills
Development Act, Basic Conditions of Employment Equity Act,
Labour Relations Act, etc
 Legal requirements for operating certain types of businesses.
 Legal costs involved in obtaining a licence/trade mark/patent
 Legalities of business contracts
Environmental  Chemicals/Ingredients in business’ products
 Disposing of business waste material by businesses.
 Packaging of some products

3
 BUSINESS STUDIES GRADE 10 NOTES MACRO ENVIRONMENT CHAPTER 5

4 The reason why each component/feature poses a challenge to businesses

Features Description Challenges to businesses
Physical/Natural  These are forces that are present in the  The physical location of a business has a large effect on the success
environment natural environment such as the natural of the business.
resources/pollution/ increased cost of  Unpredictable weather may cause significant disruption to
energy/ infrastructure. businesses.
 Businesses that use raw material to  Manufacturing businesses dump their waste materials that impact
transform them into useful products negatively on the physical environment.
such as clothing and electricity need  The awareness of pollution and environmental damage provide new
nature for their survival. challenges for businesses.
 Pollution poses a threat to the sustainability of a business.
 Some natural resources are scarce and expensive e.g. sources of
energy are expensive.
 The scarcity of natural resources has a negative impact on the
production costs and results in high prices of goods and services.
Economic  The economic environment includes all  Economic changes affect business, if the rand becomes weaker,
/Environment those factors that affect financial businesses are more likely to be able to export product successfully.
matters e.g. interest  If interest rates increase, it means the business will pay more monthly
rates/inflation/business cycle etc. instalments to the bank for the loan taken.
 Interest rates are the charges people  A high inflation will mean that consumers will have less money to
and businesses pay for the cost of spend on goods/services.
borrowing money.  If taxation goes up, businesses will be charged more on their profit,
 Inflation refers to the general increase and people will have less money to spend on buying goods and
in the prices of goods and services in services.
the economy.  If exchange rates influence trade international trade as it becomes
expensive to buy raw materials and machinery from overseas.
Social, cultural  The social environment involves  Social issues such as poverty, HIV/Aids, unemployment, low levels of
and demographic people. literacy and crime can affect consumers’ spending, the productivity of
environment  The cultural and social environment the employees and the profitability of the business.
can be defined as the sum total of the  Social and cultural diversity have the potential to create conflict in the
languages /values/cultural workplace.

4
BUSINESS STUDIES GRADE 10 NOTES MACRO ENVIRONMENT CHAPTER 5

norms/preferences/religions and  Employees from different cultural backgrounds may have different
beliefs. cultural norms/preferences/beliefs etc.
 The demographic environment refers to  Businesses may not be conversant with the local language of their
the composition of a country’s customers.
inhabitants e.g. their age/residential  South Africa has a large number of people who are poorly educated
areas/skill level/income level etc. and unskilled. This means that businesses may have few customers.
Technological  These factors include the development  Many businesses may not be able to succeed without internet
environment of new technological products and connectivity.
services.  Businesses may not be able to keep up with/be aware of the latest
 The rise of information technology such technology.
computers and communication  Employees may not be skilled to operate/maintain new technology/
technology allows for a rapid flow of equipment.
large amounts of digital information/  Staying up to date with the latest and greatest technology can be
ICT. expensive.
 Businesses experiencing systems failure will be rendered paralysed,
which will cause businesses to lose capital due to stalling in
operations.
 The availability of online shopping decreased the demand for some
products from conventional street stores and service businesses.
 IT systems can be hacked by
fraudsters.
Legal  The legal component of the macro-  An unstable government and poor relationship between the
environment and environment consists of the legislation government and the business creates a negative political
political that has been passed. environment.
environment  The government plays a large role in  Some political decisions such as government levies, tax, interest
the development of policies and legal rates and inflation influence businesses.
frameworks.  Changes in government salaries can have an impact on the spending
 The legal system through the courts, patterns of consumers.
has power to oversee: employment,  Legal requirements for businesses to operate are time-consuming to
tax, trade mark rights, patent rights, implement.
intellectual property.  Businesses are affected by legislation such as the National Credit Act
 Government employs a large number of (the business must do background checks on clients, which may be
consumers. costly and time-consuming), Consumer Protection Act (the business

5
BUSINESS STUDIES GRADE 10 NOTES MACRO ENVIRONMENT CHAPTER 5

must give information on the ingredients of the product), Employment

Equity Act, Basic Conditions of Employment Act etc.
 Businesses have to apply for a trading licence before they are able to
legally trade.

International  Globalisation refers to an increase in  Globalisation result in increased competition from businesses around
/Global trade and investment between the world which sell their goods to South Africa.
environment countries.  Businesses are unable to import and export goods during lockdown
periods.
 Many businesses are unable to operate efficiently and faces
liquidation.
 International problems impact businesses across the world.
 Businesses are expected to understand the cultures of foreign
people.
Institutional  This refers to the three spheres of  The provincial government has an indirect impact on businesses
environment government e.g. local, provincial and through its role in providing services such as health, housing and
national government. education.
 Changes in government often result in policy changes that may affect
businesses.
 Strikes/protests cause political instability and delays in productivity.
 Increased taxation has the same effect as an increase in costs.
 Reports of corruption in businesses can cause shareholders and
investors to lose trust and confidence in a business.
 Consumers may be called upon to boycott certain products and/or
businesses.

6
BUSINESS STUDIES GRADE 10 NOTES MACRO ENVIRONMENT CHAPTER 5

7
BUSINESS STUDIES GRADE 10 NOTES INTERRELATIONSHIPS BETWEEN BUSINESS ENVIRONMENTS

BUSINESS STUDIES

GRADE 10
PAPER 1
TERM 1
CHAPTER SIX
REVISED NOTES
2025
INTERRELATIONSHIP BETWEEN BUSINESS
ENVIRONMENTS

TABLE OF CONTENTS

TOPICS PAGES
Exam guideline for the link/ relationship between the 2
features/components of the micro- environment.
Interrelationship between the micro and market environment 2
Examples of the relationship between the business with consumers, 3
suppliers, intermediaries, and competitors.

This chapter consists of 3 pages

1
BUSINESS STUDIES GRADE 10 NOTES INTERRELATIONSHIPS BETWEEN BUSINESS ENVIRONMENTS

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT

PURPOSES
● Explain/Describe the link/relationship between the features/components of the micro-
environment.
● Explain the interrelation between micro (internal) and market environments.
● Give examples of the relationship between the business with consumer, suppliers,
intermediaries and competitors.

1 The link/ relationship between the features/components of the

micro- environment
MICRO ENVIRONMENT

● Businesses need managers to develop their vision, mission and objectives.

● The business vision and goals will also influence the business culture and its
organisational structure.

● The financial function must ensure that sufficient funds are available to finance
● other business functions

● The marketing function must identify consumer needs and advise the production
function on products that need to be produced.

3 Interrelationship between the micro and market environment

● The business environments are related to each other as they cannot operate in
isolation.
● The business does not have a purpose without the market environment.

3.3.1 Business and consumers

● Consumers are people who are willing and able to pay for the business
products/services.
● Consumers depend on businesses for their goods and services to satisfy their needs
and wants and businesses also depend on consumers for their income when they
buy from them.
● The business needs to market/advertise its goods and services to ensure that there
is a demand for them.
● The business needs to carry out market research to determine the appropriate type
of goods and services and the best price for them.
● The public relations department should ensure that the business has a good image
and that its consumer remains loyal.

3.3.2 Business and suppliers

2
BUSINESS STUDIES GRADE 10 NOTES INTERRELATIONSHIPS BETWEEN BUSINESS ENVIRONMENTS

● Suppliers provide raw materials, inputs, equipment and business services that a
business needs to produce its products.
● Without raw materials from suppliers a business cannot produce its goods or
services.
● The business needs to ensure that is using the best supplier to get the best quality
for the best price.
● Businesses need to communicate with suppliers about the latest developments in the
technology and products
● They need to ensure that the suppliers have enough stock to meet consumer’s
demand.
● Business need to pay their suppliers, as they are also customers.

3.3.3 Business and intermediaries

● Intermediaries help businesses to distribute and sell goods to customers.
● They are the link between the business and the consumers.
● Businesses need to maintain a good
● Businesses need to maintain a good relationship with the intermediaries.
● Business sells its goods and services to the intermediaries.
● Intermediaries help the business to access consumers and they influence its sales.
● Businesses need to find the best transport and communication companies at the best
prices to transport and market their product.
● Intermediaries need to be reliable and responsible, as they affect the quality, services
and price of the goods and services.
● Intermediaries are also the customers of the business and so businesses need to
always treat them with care.

3.3.4 Business and competitors

● Competitors are businesses that produce the same product/services for the same
target market.
● The business needs to study the activities of its competitors and be able to devise
strategies to provide goods or services that are better than those offered by their
competitors.
● Increased competition will lead to lower prices of goods and services.
● Competitors influence the prices and quality of the products.
● Businesses are in constant competition and need to keep up-to date with advertising
and marketing trends.
● Businesses must be up to date with the current trends and the latest technology to
remain competitive in the market.
● Entrepreneurs need to be creative in turning the challenge of the competitors into
positive changes for their companies.

4 The relationship between micro, market and macro environments

3
BUSINESS STUDIES GRADE 10 NOTES INTERRELATIONSHIPS BETWEEN BUSINESS ENVIRONMENTS

● A change in the macro environment may cause a change in the micro environment
which may in turn, create a change in the market environment e.g. an increase in the
rate of interest may lead to an increase in the production cost which may reduce
consumer spending.
● Businesses (the micro environment) are in constant interaction with components of
the market and macro environment.
● Businesses are challenged by changes in the market and macro environment which
cannot be controlled by the business.
● A change in the economic environment may lead to a change in the technological
environment and the way in which people spend money.
● The legal, political and institutional environment has a large impact on other business
environments e.g. politics and laws affect the economic environment.
● The business has full control over all elements/features of the micro environment.
● The business has less/little control over the market environment but it can influence
it.
● The business has no control over the macro environment but it must develop
strategies to adapt to the challenges that are posed by this environment.

4
GDE BUSINESS STUDIES BUSINESS SECTORS CHAPTER 7

BUSINESS STUDIES

GRADE 10

PAPER 1

TERM 1

CHAPTER 7

BUSINESS SECTORS

REVISED NOTES

2025
TABLE OF CONTENTS

TOPICS PAGES
Meaning of the primary, secondary and 2
tertiary sectors.
Examples of each business sectors 2
The relationship between the primary 3
,secondary and tertiary sector
Meaning of formal sector and the
importance of this sector 4-5
Meaning of the informal sector and the 5
importance of this sector
Differences between the formal and the 5
informal sector
Meaning of the public sector and the 6
importance of this sector
Meaning of the private sector and the
importance of this sector 6
The differences between the public and 7
private sectors
This chapter consists of 6 pages

1
GDE BUSINESS STUDIES BUSINESS SECTORS CHAPTER 7

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT PURPOSES

● Define/Explain the meaning of the primary, secondary and tertiary sectors.
● Give examples of each sector.
● Explain/Describe/Discuss the relationship between these sectors.
● Make a collage showing the relationship between the primary, secondary and tertiary
sectors
● Define/Elaborate on the meaning of the formal and informal sectors. Give practical
examples of each.
● Conduct research on the importance of the formal and informal sector.
● Explain/Differentiate/Distinguish between the formal and informal sectors.
● Define/Elaborate on the meaning of the public and private sector.
● Explain the importance of the public and private sector.
● Explain/Differentiate/Distinguish between the public and private sectors

1. Meaning of the primary, secondary and tertiary sectors.

1.1 Meaning of the primary sector

● The primary sector is the first stage in the production process.
● This sector deals with the extraction of raw materials from nature.
● The primary sector is involved in collecting resources direct from nature.
● These raw materials are then supplied to other businesses for further processing.

Examples of the primary sector:

o Farming/Agriculture, which produces agricultural products such as cattle and
wheat.
o Forestry, which supplies wood for building/ furniture.
o Fishing from the sea/lakes and rivers.
o Mining, which extracts minerals such as coal and gold from the earth.

1.2 Meaning of the secondary sector

● The secondary sector is responsible for converting/processing/ manufacturing of raw
materials into final products.
● It is the link between the primary sector where raw materials are extracted from
nature.
● Deals with distribution/transportation/ retailing/services√ to other businesses or
consumers.
● It includes the manufacturing factories, construction and energy generation
● The secondary sector plays an important/critical role because not all resources in
their natural state are functional/ useful and require further processing.

Examples of the secondary sector

o Construction
o Factories
o Manufacturing
o Electricity

2
GDE BUSINESS STUDIES BUSINESS SECTORS CHAPTER 7

1.3 The tertiary sector

● Businesses that offer services to other businesses and consumers.
● This sector distributes goods processed in the secondary sector to consumers.
● The tertiary sector aims to bring products and services within reach of the consumer.
● They exist to facilitate the transport, distribution and sale of goods produced in the
secondary sector.

Examples of the tertiary sector

● Food industry
● Clothing industry
● Banking, insurance
● Tourism, transportation
● Entertainment, retail and legal services.
● Examples shops, transport companies, electricians, doctors, consultants, hotels and
schools.

1.4 The relationship between the primary, secondary and tertiary sectors
●
The sectors work together to create an economic chain of production.
●
The primary sector depends on the secondary sector for manufactured goods such
as machinery/equipment/fertilisers e.g. a farmer may require seeds from another
farm.
● The primary sector is dependent on the tertiary sector for its customer needs.
● The secondary sector processes the raw materials obtained from the primary sector
into more useful products.
● The secondary sector depends on the primary sector for raw materials and products.
● The secondary sector depends on other secondary industries e.g. BMW needs tyre
from DUNLOP another secondary sector player
● Secondary sector needs the tertiary sector to sell their processed or manufactured
goods and also for services such as banks, insurance, transport and communication
● The tertiary sector depends on the primary sector for raw materials that do not need
processing by the secondary sector.
● The tertiary sector depends on the secondary sector for manufactured goods such as
office machines/office furniture/stationery etc.
Example of the relationship/link between primary, secondary and tertiary sector

3
GDE BUSINESS STUDIES BUSINESS SECTORS CHAPTER 7

Example of the relationship/link between primary, secondary and tertiary sector

PAPER MILL LABEL PRINTERS

FOREST
Timber is turned into Labels that will be
Timber/trees/grown
paper pasted onto beef
corned cans

NOTE: You must make a collage showing the relationship between the primary,
secondary and tertiary sectors

2 Formal and informal sectors

2.1 Meaning of the formal sector
● Formal sector refers to businesses that are registered and pays tax.
● These businesses are required to register with the Companies and Intellectual
Property Commission (CIPC).
● Businesses have to register with the South African Revenue Services (SARS) and be
liable to pay tax on turnover and profits at prescribed threshold
● The formal sector within the mainstream of the economy
● This sector includes small, medium and large businesses.
● Employees are protected in many ways such as Unemployment funds, disability and
injured on duty of industry
● They are controlled by laws and regulations of the government
● Keep accounting records and audit their books.
● It is capital intensive as it involves using machinery/equipment etc.
● They operate under an acknowledged form of ownership such as partnerships, close
corporation, companies and sole proprietors.
The importance of the formal sector
● Business activities are included in the GDP figures of the country.
● Companies pay taxes on their profits.
● People who are employed at companies pay personal income tax.
● Provides employment to highly skilled, semi-skilled and unskilled labourers
● They supply legal products
● Products supplied by the formal sector are guaranteed, which means that faulty
goods can be returned.
● People working in the formal sector gain the necessary skills to start their own
businesses.
● Provides a large variety of goods and services to satisfy consumers
● They employ many people with different skills and qualifications.
2.2 Meaning of informal sector
● Informal sector refers to businesses that are not registered and does not pay tax.
● The informal sector refers to those workers who are self-employed.
● This sector includes activities by people who are unable to find jobs.
● Fall outside the mainstream economy
● It is labour intensive as it does not require a huge capital outlay for establishment.
● Employees are not protected and they can be exploited.
● Owners of businesses in the informal sector take responsibility for the success and
failure of their businesses.

4
GDE BUSINESS STUDIES BUSINESS SECTORS CHAPTER 7

● Not monitored by government

● Not added into the Gross Domestic Product (GDP) figures.
● Examples of informal businesses include street vendors, spaza shops, hairdressers,
flea markets, day care for children, general handyman services.
The importance of the informal sector
● Provides employment opportunities for communities and contributes to poverty
alleviation.
● People working in the informal sector gain work experience to be used for the formal
sector.
● People start informal businesses to supplement their income earned in the formal
sector
● Encourages entrepreneurship as self-employment.
● Provides opportunity for marginalised /disadvantaged by encouraging street trade.
● Serves as buffer between employment and unemployment.
● It is easy to enter this sector and serves the needs of individuals.

2.3 Differences between formal and informal sectors

FORMAL SECTOR INFORMAL SECTOR
● Industries in this sector are legally ● This sector is not legally registered
registered.
● Fall between the mainstream of the ● Fall outside the mainstream economy (also
economy known as the second or marginalised
economy)
● It is registered and pays tax. ● It is not registered and does not pay tax.
● Made up of small, medium and large ● Small scale operations
businesses
● Employees are protected as they ● Employees are not protected and can be
receive unemployment funds, exploited
disability funds, injured on duty funds
● They are controlled by the laws and ● They are not tracked by any form of
regulations of the government. government.
● Higher capital is required in this ● Low capital needed for operation.
sector.
● Output can be measured into the ● Estimates should be made to measure
country’s GDP contribution into the country’s GDP.
● Usually more labour intensive ● Usually more skill intensive.
● Usually include manufacturing, ● Usually include street vendors, spaza shops,
banking, insurance and large retail hairdressers and other home based activities.
companies.
● Employees have a steady income ● Employees’ income is inconsistent

● Not easy to enter this sector as ● Easy to enter the sector as there are no legal
businesses had to be legally registered formalities needed.
● Higher capital is required in this sector ● Low capital needed for operation
● Examples include companies such as ● Examples include spaza shops, street
mining, manufacturing, retail and banking vendors, hairdressers, gardening services, car
wash services and other home-based
activities.

5
GDE BUSINESS STUDIES BUSINESS SECTORS CHAPTER 7

3 The public and private sector

3.1 Meaning of the public sector

● These refer to businesses that are owned and controlled by the government.
● It is composed of all levels of government and government-controlled enterprises
● It does not include private companies, voluntary organisations and households.
● Non-profit organisations are categorized under the public sector
● Businesses in this sector are partly or wholly funded by tax money
● The motive is not to make profit but offer a service.

Importance of the public sector

● provides public goods and services such as water and electricity to meet the needs
of its people
● Offers affordable services that the private sector.
● Aims to meet the needs of society.
● Public sector businesses do not aim to make profit.
● Provides infrastructure that supports private sector development
● Provides people with job opportunities.
● Improves the general standard of living of all people.
● Controls pollution and protects/conserves natural resources such as water, wildlife
and precious stones.
● Intervenes in the economy to limit anti-competitive behaviour.
● Offers valuable services such as public roads/ public hospitals/public schools etc.

3.2 Meaning of a private sector

● Privately owned by entrepreneurs
● Aimed at meeting both the need and wants of the society
● Profit-driven businesses
● Owners provide own funds or loans to run their businesses.
● Examples include businesses owned privately as sole traders, partnerships or
companies with a profit motive.
● The businesses are focused to meet the demand of consumers.
● Businesses in this sector that do not operate to make profit are NGOs (non-
government organisations) and NPOs (non-profit organisations).
● Some services from the public sector are repeated in this sector, such as education,
healthcare and housing, and could be of better quality that the government service.
Importance of the private sector
● Creates job opportunities for different types of skills.
● Provides businesses with the opportunity to create wealth.
● Offers more competitive salaries than the public sector.
● Offers variety of goods and services than the public sector.
● Offers opportunities for employees to be part of more innovative projects with cutting-
edge infrastructure.

6
GDE BUSINESS STUDIES BUSINESS SECTORS CHAPTER 7

3.3 The differences between the public and private sectors

PUBLIC SECTOR PRIVATE SECTOR
● Aim is to meet the needs of the ● Aim is to meet both the need and
society wants of the society.
● State owned/state run or ● Privately owned by entrepreneurs
parastatals which are operated by
private company.
● Partly or wholly funded by tax ● Owners raise capital to fund their
money businesses
● Motive is to provide a service ● Motive is to make a profit
● State ownership ● Owned by different forms of
ownership.
● State owned businesses report to ● Businesses in this sector do not
government report to government but owners.
● Government monitors and ● Owners oversees their
oversees their performance performance

7
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 8

BUSINESS STUDIES

GRADE 10

PAPER 1

TERM 2

CHAPTER 8 (PART 1)

CONTEMPORARY SOCIO-ECONOMIC ISSUES

REVISED NOTES

2025
TABLE OF CONTENTS

TOPICS PAGES
Examination guidelines 2
Concepts and their meaning 2
Reasons why socio-economic issues pose 3
a challenge to Businesses
Types of socio-economic issues 3-4
The meaning and impact of inequality and 4
poverty
The definition of inclusivity 4-5
The purpose of inclusivity in the workplace 4-5
Unemployment and unproductive labour 5

This chapter consists of 4 pages

1
 GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 8

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT PURPOSES

 Define/Elaborate on the meaning of socio-economic issues and the reason why they
pose a challenge to businesses.
 Define/Elaborate on the meaning of inequality and poverty.
 Explain/Discuss/Describe the impact of inequality and poverty on businesses.
 Define the term “inclusivity” and explain the purpose of inclusivity in the workplace.
 The meaning of the term unemployment.
 The meaning of the term unproductive work force.

TERM/CONCEPTS DEFINITION/MEANING
Inequality refers to the difference in income levels and wealth between
groups of people.
Poverty defined as the lack of resources to meet basic human needs.
Inclusivity meaning all designated race groups should have access to the
same opportunities despite their colour, creed or gender.
Gambling: a risk that people take by taking a chance with money in the hope
to win money or a prize.
Counterfeiting/imitations the process of fraudulently manufacturing, altering, or distributing
a product that is of lesser value than the original product.
Bootlegging referred to as the illegal production of counterfeit goods for sale.
Piracy illegal copying of somebody’s product that affects businesses
operations.
Strikes a form of industrial action where workers refuse to work.
Political disturbances occurs when a group of people protest to show their disapproval
of the handling of a situation in the country.
Labour disputes: when the employer and employee disagree on important issues,
for example yearly salary or wage increases.
Go slows a form of industrial action where workers go to work but perform
their daily tasks very slowly, restricting the rate of production.
Lockouts when the business owners do not allow the workers to work and
prevent them from entering the workplace in order to prevent
damage.
Crime any illegal act or activity that is punishable by law.

1.1 The meaning of socio-economic issues

 Socio-economic issues are aspects that have a negative effect on the individual,
communities and businesses.
 These issues are societal and economic factors in the macro environment.
 Socio-economic challenges are issues that affect people and the economy in a
negative way.
 They are problems that come from social/people and economic/money
circumstances.
 Some of the socio-economic issues that South Africans face include inequality,
poverty, inclusivity, HIV/AIDS, gambling, counterfeiting, bootlegging, strikes, political
disturbances and crime.

2
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 8

1.2 Reason why socio-economic issues pose a challenge to businesses

 Socio-economic issues affect consumer spending due to poverty and unemployment.
 These issues place extra burdens and expenditure on businesses as they have to
develop policies/support systems/ informative programs to address them.
 Businesses are expected to create as many job opportunities as possible to assist
government address these issues which places a financial burden on them.
 They must also educate employees on social issues and how to become involved in
the community to address these social issues.
 Businesses may not be well supported by customers because of their limited
disposable income.
 Absenteeism of employees affected by HIV/AIDS will result in a decrease in
productivity of a business.
 Counterfeiting, bootlegging and crime may lead to loss of profit for businesses.
 Businesses may feel pressurised to offer corporate social responsibility projects in
disadvantaged communities. This in turn, could lead to increased business costs and
decreased profitability.
1.3 Types of socio-economic issues
 Inequality and poverty
 Inclusivity
 Unemployment
 HIV/Aids
 Gambling
 Piracy
 Counterfeiting
 Bootlegging
 Strikes /political disturbance
 Crime
2 Inequality and poverty
2.1 The meaning of inequality
 Inequality arises when some individuals are more prosperous than others or are
given better opportunities than other individuals in society.
 Some people have more money than others and can therefore access education,
basic health care and social services.
 Inequality contributes to poverty in the country.
2.2 The meaning of poverty
 Poverty is defined as the lack of resources to meet basic human needs.
 People are not able to me their basic human needs when they become unemployed
or are retrenched. This leads to poverty in families and society.
 Some people have a low level of education and limited skills. Therefore, they only
qualify for low paying jobs. Due to the high cost of living. These people cannot afford
to pay their bills and struggle to provide for all their basic needs.
 Poverty often gives rise to crime.
2.3 The negative impact of inequality and poverty on businesses
 People cannot participate fully in the economy.
 Businesses spend more money on social responsibility programmes to address
inequality and poverty.
 Poverty shrinks the market because people cannot afford to buy luxuries.
 Poverty leads to crime such as shoplifting and robberies on businesses.
 Increases violence as groups scramble for better status and social positions.
 Businesses spend money on improving security due to robberies and shoplifting.

3
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 8

 More money is spent on relieving poverty through their social responsibility

programmes.
 Inequality results in lack of skills and job opportunities.
 Individuals and customers have less or no money to spend to buy basic goods and
services which will influence the profitability of businesses.
 Poverty results in the continuation of the cycle of unemployment and homelessness
which can lead to an increase in crime affecting business negatively.
 Some people do not have the financial means to buy goods as they have little to no
disposable income leading to limited profitability of the business as a result of limited
or no customer spending.
 Limited customer spending means that businesses record lower sales figures.
 Businesses may not grow because of reduced sales figures.
 Businesses are pressurised by the media attention to poverty into investing in poor
communities.

3 Inclusivity

3.1 The meaning of inclusivity

 Inclusivity means giving everyone opportunities without discriminating based on age,
race, gender, sexual orientation, disabilities/HIV status etc.
 Inclusivity means valuing the differences between people and consciously
encouraging diversity in the workplace.
 It aims to address imbalances such as businesses only employing male staff
members in management and top positions- a practice that was prevalent before the
onset of democracy.

3.2 The purpose of inclusivity in the workplace

 Inclusivity enables businesses to make the best use of all human resources.
 Promotes equal opportunity for every employee to obtain skills that will lead to
promotion and career path.
 Promotes respect for each person and their contributions in the workplace.
 Promotes healthy/happy working environments, which in turn increase job
satisfaction and productivity.
 Increase tolerance of each other’s ideas and beliefs.
 Increase communication in the workplace so that business goals/objectives are
achieved.
 Businesses are able to use a variety of talents and skills.
 Inclusivity increases education and training resulting to a decrease in poverty.
 Increases the number of middle-class people participating in the economy.
 The goal of inclusivity is to ensure that the business implements fair labour practices.
 It seeks to redress the inequalities of the past.
 Ensures that workplaces are created where people of different races, genders and
religions can work together to the benefit of the business.
 Ensure that their workforce is representatives of the demographics of the country.
 Try o ensure that the physical business setting makes provision for individuals with
disabilities.

4
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 8

4. Unemployment
4.1 The meaning of unemployment
 Unemployment is the condition where people want to work and are able to work, but
cannot find a job.
 The state of job-seeking people in the economically active population who are able to
find work despite being willing and able to work
 Unemployment often goes with a lack of skills or the wrong skills for the current job
market, but if the economy is not growing fast enough to absorb new job-seekers,
many skilled people will also struggle to find employment.

4.1.1 Possible solutions to unemployment

 Improvement of skills, better education and training.
 The government should change the labour laws to encourage small businesses to
employ workers
 Businesses can provide skills development programmes through learnerships.
 Offer bursaries to the community to improve the level of education.
 Businesses must create jobs for members of the community.
 Provide entrepreneurial programmes that can promote self-employment.
 Support existing small businesses to create more employment opportunities.

4.2 Unproductive Labour Force

 Unproductive work force refers to workers who do not work at the required level of
productivity for a business to be sustainable.
 Workers produce less than they should.

4.2.1 Impact of unproductive workforce on businesses

 There is always tension between the employers and employees because employees
are not performing below employers’ expectations.
 Low profits for business and make it difficult to survive an economic recession.
 Stress for both employees and employers.
 Unproductive labour is a major stumbling block to economic growth and
sustainability.
 It pushes up production costs and make way for cost-efficient foreign competition
who employ highly qualifies skilled and motivated people.
 Could result in decreased employment opportunities if businesses switch over to
advanced technology to replace labourers.

5
GDE BUSINESS STUDIES CONTEMPORARY SOCIO-ECONOMIC ISSUES CHAPTER 8

BUSINESS STUDIES

GRADE 10

PAPER 1

TERM 2

CHAPTER 8 (PART 2)

CONTEMPORARY SOCIO-ECONOMIC ISSUES

REVISED NOTES

2025

TABLE OF CONTENTS

TOPICS PAGES
The meaning and the negative impact of 1
HIV Aids on businesses
The meaning and type of gambling 2
The impact of gambling on businesses 3
The meaning and impact of piracy on 4
businesses
Solutions to piracy 5-6
The meaning and impact of counterfeiting 6-7
/bootlegging/strikes /political disturbance
&crime

This chapter consists of 7 pages

1
GDE BUSINESS STUDIES CONTEMPORARY SOCIO-ECONOMIC ISSUES CHAPTER 8

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT PURPOSES

● Evaluate the negative impact of HIV/Aids on businesses.
● Outline the different types of gambling and explain their impact on businesses
● Define/Elaborate on the meaning of piracy
● Discuss the impact of piracy on businesses.
● Recommend solutions to piracy, e.g. copyright, patent and trademarks.
● Explain the meaning of counterfeiting /bootlegging/strikes /political disturbance &crime
● Explain/Discuss the impact of the above-mentioned socio-economic issues on
businesses.
● Identify socio-economic issues from given scenario/statements. Support your answer by
quoting from the scenario.
● Explain the impact of socio-economic issues identified in scenarios/statements on
businesses.
1. HIV/Aids
1.1 The meaning of HIV/Aids
● Aids is a disease caused by a virus called Human Immuno- deficiency Virus (HIV).
● When HIV gets into a person’s body, it attacks the immune system / lowering the body’s
natural ability to fight infections.
● The economic and social impact of HIV/AIDS on businesses is noticeable as staff
members who may be infected are not able to contribute to the success of the business.
1.2 The negative impact of HIV/Aids on businesses
● Loss of skilled staff due to HIV related illnesses.
● Profits will be lower as production decreases.
● High absenteeism because of medical appointments for doctor or clinic visits resulting to
a decrease in productivity.
● Conflict can arise among staff if they discover that a worker is HIV positive.
● Businesses face high levels of non-attendance of employees who become ill or request
to attend funerals.
● Businesses find it difficult to keep up production levels and to meet deadlines because of
poor staff morale.
● Businesses face increased costs of finding/recruiting/training replacements.
● The pool of available skilled workers is getting smaller due to the high rate of HIV
infection.
● The costs of finding replacement employees and recruiting are high.
● Business needs to invest money in programmes to educate the workers regarding AIDS.
● Decrease in the number of consumers cause a drop in the demand for goods and
services.
● Costs such as insurance/retirement funds/health/safety are higher as a result of HIV for
the business.

2
GDE BUSINESS STUDIES CONTEMPORARY SOCIO-ECONOMIC ISSUES CHAPTER 8

● Businesses face increased costs of paying benefits like housing subsidies, medical care,
funeral care and pension funds.
● Staff morale might be low as they are concerned about their health thus lowering
productivity.
● Trained and experienced employees often die due to complications caused by HIV
before they can grow old. This causes an increase in staff turnover for the business. This
in turn creates additional expenses for businesses when they need to hire and train new
employees.

2 Gambling
2.1 The meaning of gambling
● Gambling means to bet on something of which the outcome is not sure.
● It can take on form of playing games in the hope that some money could be won.
● Although gambling is legal, it gives false hope.
● Gambling is a risk that individuals take by taking their money and placing bets hoping
that they will win more money or a prize.

2.2 Types of gambling

Pyramid Schemes
• Pyramid schemes refers to businesses that may potentially yield high revenues for people
who invest their money in them.
• Individuals invest more and more money, but often only the individuals at the top of the
pyramid receive large sums of money.
Illegal gambling
• Illegal gambling is when unlicensed businesses offer gambling to the public.
• Illegal gambling activities can also take place in poor communities such as
when people play with die (dices) on street corners for money, or when individuals frequent
unlicensed casinos.
Money laundering
• Money laundering is the process by which unlawful profits from crimes are invested in valid
businesses to cover up their wrongdoing.
• The source of money is camouflaged and made to seem as if it was lawfully gained.
• An example of money laundering is when the proceeds from illicitly earned money through
drug trading is invested in a restaurant or laundry business.
● Card games
● Casino
● National lottery
● Scratch cards
● Slot machines
● Horse betting
● Fafi/Mochina
● Unofficial lottery type schemes

3
GDE BUSINESS STUDIES CONTEMPORARY SOCIO-ECONOMIC ISSUES CHAPTER 8

● Bingo halls
● Unlicensed casino’s
● Internet gambling, as it is sometimes linked to organised crime· animal fighting.
● Unlicensed operations offering gambling to the public.

2.3 The impact of gambling on businesses

● Employees may not work overtime at short notice.
● High rate of employee absenteeism.
● Local businesses forced out of business.
● Gambling hides criminal activities and can lead to workplace violence.
● Compulsive gamblers cannot focus on work while preoccupied with gambling.
● Compulsive gambling puts a strain on relationships in the workplace.
● Addicted employees could also steal to get money for gambling.
● Reduces productivity as it encourages crime and corruption.
● When gamblers lose their money, they have less to spend on goods and services, which
affects business negatively.
● Decrease in savings leads to a decrease in future production.
● Less buying power as people may lose their money on pyramid schemes, casino
gambling etc.
● Individuals losing cash can display lower morale levels at work and this will influence
their work relationships and responsibilities.
● The employees can suffer from depression and thereby not be able to focus on their
work tasks and responsibilities.

3 Piracy
3.1 The meaning of piracy
● Piracy refers to the illegal copying of original music/films/books/patent rights/trademarks
without the rightful owner’s permission.
● It can involve physical copies/electronics copies that are downloaded illegally from the
internet.
● Pirated goods are unauthorised copies of copyright material such as DVDs or CDs.
3.2 The impact of piracy on businesses
● Consumers no longer value the worth and quality of genuine products sold by
businesses
● The business image and reputation can be damaged by inferior counterfeit goods.
● The businesses producing the original goods have their profits reduced if piracy occurs.
● Piracy also deprives the original artist of his/ her or income.
● People who buy pirated copies contribute to the problem for businesses
● Businesses may experience a decline in sales due to copied or imitation products being
distributed.

4
GDE BUSINESS STUDIES CONTEMPORARY SOCIO-ECONOMIC ISSUES CHAPTER 8

● Businesses may be forced to implement price adjustment strategies to reduce the impact
that this has on its sales figures.
● Businesses will spend money if they need to take legal action against people who copy
their products or music.

3.3 Solutions to/ Methods of dealing with piracy

3.3.1 Copyright
● The owner of intellectual property has the right to produce and copy the intellectual
property.
● Includes literacy/musical works/artistic works etc.
● Businesses can sue someone who infringes the copyright.
● They can also sue someone who sells or distributes work that they knew were
infringements of copyright.
● Businesses can take legal action against people who copy their products.

3.3.2 Patent
● Exclusive right to make use of or sell the invention or a product made an invented
process for a limited period of time.
● It is invention, someone who holds a patent has the sole right to produce and sell in
invention.
● A discovery/scientific method/a literary etc.
● Businesses can take out a patent for new inventions and include a sample of their
invention with application.
● Businesses must register a patent with the patent’s office in South Africa.
● The invention must comply with the Patent Act No. 57 of 1978.
● A patent prevents other businesses/ people from producing or selling the same products/
specific service.
● They can bring legal proceedings against anyone who uses their invention.

3.3.3 Trademarks
● Registration of the use of a brand name/slogan/symbol or a combination to make a
product or services recognisable and known.
● A unique mark that represents a business enterprise and which belongs to the business
enterprise.
● Includes words/slogans/sign etc.
● Businesses can use trademarks to identify themselves and their products.
● They must register their trademarks with the register of trademarks at the companies and
intellectual property registration.
● A registered trademark is protected forever, provided it is renewed every ten years and a
renewal fee is paid.
● A registered trademark may not be used by another person or business.

5
GDE BUSINESS STUDIES CONTEMPORARY SOCIO-ECONOMIC ISSUES CHAPTER 8

● Damages may be claimed from someone who infringes the trademark.

3 Counterfeiting

4.1 Meaning of counterfeiting

● Counterfeits goods are copies/imitations of genuine goods such as clothing/shoes that
are marked with a fake logo/trademark.
● They are products that are imitated and packed to resemble the original, high-priced
goods.
● The process of fraudulently manufacturing, altering or distributing a product that is of
lesser value than the original product.
● Losses are incurred by businesses of the original product leading to an increase of
prices.
● Example of counterfeited goods: branded clothing, shoes and soccer jerseys from the
English league.

4.2 The impact of counterfeiting on businesses

● Counterfeits often result in price increases of original goods
● Consumers are often tempted to buy counterfeits because of the considerable price
differences
● Counterfeits reduce the sales and profits of businesses
● Businesses lose money that could have been used for expansion and the creation of job
opportunities
● Counterfeits often result in price increases of original goods
● Consumers are often tempted to buy counterfeits because of the considerable price
differences
● Counterfeits reduce the sales and profits of businesses
● Legal costs will increase businesses expenses if legal action is taken against those
involved in illegal activities.
5 Bootlegging
5.1 The meaning of bootlegging
● It is the recording of live/broadcast performance without the permission of the
performers/songwriters/ record company which are copied and sold.
● The example of bootlegging is selling of illegal copied DVDs of latest movies on street
corners.
● Criminals go to great extremes to record movies with handheld devices during a live
cinema screening.
● Bootlegging refers to unlawfully manufacturing fake goods for sale.
5.2 Impact of bootlegging on businesses
● Businesses lose out on profit.
● Businesses may experience decline in sales due to fake/imitated distribution of products.

6
GDE BUSINESS STUDIES CONTEMPORARY SOCIO-ECONOMIC ISSUES CHAPTER 8

● Businesses may be forced to implement price adjustment strategies to minimise the

impact.
● Businesses expenses will increase if legal actions are taken.

6. Strikes
6.1 The meaning of strikes
● A strike/labour dispute is a collective refusal of employees to work because of an issue in
the workplace, aimed at forcing the employer to give in to demands.
● It is a collective action taken by a group of unhappy employees to accept their demands.
● Strikes may take form of a go slow, lock outs and sympathy strike.
● It is a dispute between the employer and employees when they cannot agree on wage
increases/changes in working conditions, even after negotiations.
● The trade union must give notice to the employer when planning a strike.
6.2 The impact of strikes on businesses
● This could make the business to be unable to meet its contractual obligation and the
business losing contracts.
● The cost of making up all the working hours is too high.
● Strikes can be violent because strikers intimidate those employees who do not want to
go on a strike
● Scares off potential investors.
● May results in losses of production as employees stay absent from work during strikes.
● Strike actions may lead to production losses and decline in sales.
● Businesses may be forced to close down operations after strike actions.
● May lead unhealthy working relationships between the management and workers.
● May force businesses to retrench some of its skilled workers to recover from losses.
● Businesses may incur damages to their premises due to protests or protest actions.

7 Political disturbance
7.1 Meaning of political disturbance
● It is a form of protest by a group of people showing their displeasure on lack of service
delivery/proper housing/poor pay/poor work conditions/etc.
● Political disturbance reflects frustration on the part of communication who may not feel
that they have an effective voice in formal political processes.
● It is when a group of people protest against a socio-economic problem and feel that the
government is not doing enough to solve the issue.
● Protests at universities about the slow rate of transformation and the exclusion of poor
deserving students is an example of political disturbances that can occur.

7
GDE BUSINESS STUDIES CONTEMPORARY SOCIO-ECONOMIC ISSUES CHAPTER 8

7.2 Impact of political disturbance on businesses

● People in township/informal settlement areas may block roads preventing employed
people from going to work due to service delivery protests.
● Scares off potential investors.
● Businesses may be forced to close especially those located in townships.
● May results in losses of production as employees stay absent from work during political
disturbances, therefore, businesses cannot operate at full capacity.
● Many businesses suffer losses as a result of damage to property.
● Riots can result in increased unemployment if shopkeepers are forced to shut down.

8 Crime
8.1 Meaning of crime
● Any unlawful and harmful act related to loss of goods in a business due to burglaries/
robberies/theft/corruption/hijackings etc.
● Theft is the unlawful taking of someone else's property to make it your own.
● Crime is any prohibited activity that is punishable by law. Crime refers to the loss of
goods due to theft, corruption, abuse, hijackings and burglaries.
● High poverty levels lead to an increase in the crime rate.

8.2 Impact of crime on businesses

● Loss of staff and customers.
● Insurance/security costs become expensive.
● Loss of profits due to stolen goods from businesses.
● Business loose skilled people resulting to a decline in productivity.
● Increased medical expenses as workers are injured during the break ins
● Businesses spent money on installing effective security measures e.g. alarms, burglar
proofing.
● Loss of goods in a business can happen as a result of burglaries, shoplifting, customer
theft and employee theft.
● Cost of damage to property increases as businesses pay higher insurance premiums to
protect themselves.
● High rate of absenteeism due to affected employees having to go for trauma counselling
● Loss of essential equipment causing temporary closure of the business
● Employees can become involved in fraud, bribery, corruption and kickbacks.
● If there is an ensuing court case it can create negative publicity for the business.
● Smaller businesses often cannot afford insurance and have to replace the stolen goods
themselves at greater loss.
● Lower profits affect the decision to expand and employ more people/pay higher wages.
● Crime causes increase in health costs of employees due to injuries or stress.

8
GDE BUSINESS STUDIES CONTEMPORARY SOCIO-ECONOMIC ISSUES CHAPTER 8

● Discourages foreign investment and reduces tourism which impacts negatively on

business.
● Crime brings about unfair competition from stolen goods resold at a lower price.
● Businesses located in crime hotspot areas will be poorly supported by customers
resulting in decreased profits for the business.

9
GDE BUSINESS STUDIES SOCIAL RESPONSIBILITY CHAPTER 9

BUSINESS STUDIES

GRADE 10

PAPER 2

TERM 2

CHAPTER 9

SOCIAL RESPONSIBILITY

REVISED NOTES

2025

TABLE OF CONTENTS

TOPICS PAGES
Exam guideline for social responsibility 2
Definition of social responsibility 2
Definition of Cooperate social responsibility 2
Initiatives businesses can take to address 2-3
socio-economic issues.
Other initiatives businesses can take to 3-5
address socio-economic issues

This chapter consists of 5 pages

1
GDE BUSINESS STUDIES SOCIAL RESPONSIBILITY CHAPTER 9

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT PURPOSES

Learners must be able to:

 Define the term “social responsibility” and give practical examples.
 Define/Elaborate on the meaning of Corporate Social Responsibility.
 Recommend/Suggest initiatives businesses can take to address socio-economic issues.
 Interview local businesses on the initiatives taken to address socio-economic issues.
 Evaluate the extent to which these initiatives have addressed the socio-economic issues.
1.1 The meaning of social responsibility
 Social responsibility is when each person is responsible for the effects their behaviours
and lifestyle has on the environment and others.
 It means that any person/group/organization has a responsibility to act in a way that
benefit society as a whole.
 Social responsibility also means getting actively involved in projects that can have a
positive impact on society in a sustainable way.
 Every individual and organisation can contribute towards the well-being of the community
and the environment in which they live.
 Being socially responsible means that individuals take responsibility for the effects of their
behaviour and lifestyle on the environment and on others. Social responsibility means:
o that each person has a duty to act in the best interests of their environment and
society as a whole
o that every individual and organisation can contribute towards the well-being of the
community and the environment in which they live.
Some of the most common examples of social responsibility include:

 reducing our carbon footprints: a carbon footprint refers to how

much carbon dioxide the activities a person or company emits. These
could include direct emissions from fossil-fuel combustion, for example in manufacturing,
heating, transportation, electricity, and the consumption of goods and services.
 donations to charities: When you help others, it will empower you. You will also feel
happier and more fulfilled.
 volunteering in the community: this is a way in which a person or group of people in a
community take part in voluntary social, charitable and environmental activities towards
the betterment of a community.
1.2 The meaning of corporate social responsibility/CSR
 It is the term used when a business takes responsibility for its impact on society and the
environment.
 It is an ethical way of doing business in the interest of both the business and the wider
community.
 Corporate social responsibility means that a business needs to be careful that all its
actions protect the environment and improve the quality of life for the citizens of the
country.
 The way businesses manage their resources/processes to impact positively on society.
 The environment consists of:
o The air we breathe-this can be polluted by harmful smoke or other gases that are
released into air.
o Rivers and other natural water resources –which can be pollutes by factories
 Businesses should avoid doing things that harm the environment and people.
 The goal of CSR is to have a positive impact on the
environment/consumer/employees/communities/stakeholder.

2
GDE BUSINESS STUDIES SOCIAL RESPONSIBILITY CHAPTER 9

1.2 Initiatives business take to address socio -economic issues

1.2.1 Initiatives businesses can take to address inequality and poverty
 Businesses can provide bursaries to matriculants for furthering their studies or offer
learnerships/apprenticeships for scarce skills within their organisations.
 Develop employee’s skills
 Invest in a young starting SME that can be a business competitor, buyer or supplier.
 Business could also organise and encourage entrepreneurial programmes for startups.
In this way, they can stimulate growth in the economy.
 Employees could offer their time and/or services through volunteer programs.
 Support poverty alleviation programs that are offered by the government.
 Businesses could also upskill their employees through targeted training in the workplace
 Donate money/food parcels to local NGOs.
1.2.2 Initiatives businesses can take to address HIV/Aids
 Counselling programs/train counsellors to provide infected and affected
persons/employees.
 Develop counselling programs for infected/affected persons/employees.
 Businesses should conduct regular workshops and information sessions on the effects of
HIV/AIDS on the employees and their peers.
 They should initiate and develop counselling programs for infected/ affected
persons/employees.
 Roll out anti-retroviral (ARV) treatment programs (ART) for the infected employees.
 Encourage employees to join HIV/Aids support groups.
 Develop strategies to deal with stigma and discrimination.
 Participate in the HIV/Aids prevention programmes implemented in the community.
 Support non-governmental organisational/community-based organisations that work with
people infected/affected by HIV/AIDS in the community.

1.2.3 Initiatives businesses can take to address gambling

 Offer financial literacy education to them.
 Businesses must make use of organizations such as Gamblers Anonymous and the
National Council on Problem Gambling to help gamblers fight their addiction.

1.2.4 Initiatives businesses can take to address unemployment

 Provide skills development programs through learnerships.
 Offer bursaries to the community to improve the level of education.
 Create jobs for members of the community.
 Provide entrepreneurial programs that can promote self-employment.
 Support existing small businesses to create more employment opportunities.
1.2.5 Initiatives businesses can take to address poverty and inequality
 Invest in a young starting SME that can be a business competitor, buyer or supplier.
 Attract the best employees by being socially responsible and offering the best
volunteering programs.
 Support poverty alleviation programs that are offered by the government.
 Donate money/food parcels to local NGOs.
 Increase employment through economic growth.
 Introduce more training programs and apprenticeship to develop skills.
 Encourage entrepreneurship through business training and mentoring entrepreneurs.
 Improve infrastructure and services in poor communities.

3
GDE BUSINESS STUDIES SOCIAL RESPONSIBILITY CHAPTER 9

1.2.6 Initiatives businesses can take to address crime

 Businesses should encourage their employees to participate in community policing
forums
 Offer employment.
 Get involved in the local community on sustainable projects with community.
 Sponsor special sports programmes by providing finance (prize money) for special
community events.
 Adopt a school; by providing most of its needs.

1.2.7 Initiatives businesses can take to address violence

 Provide an employee assistance program (EAP) to enable employees with personal
problems to seek help.
 Provide counselling facilities / refer victims to private counsellors.

2 Other examples of corporate social responsibility initiatives

 Reducing carbon footprints
 Donations to charities.
 Volunteering in the community.
 Producing socially responsible goods and services
 Treating employees in a socially responsible way
 Ensuring production techniques are socially responsible
 Initiating community projects

4
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

BUSINESS STUDIES

GRADE 10

PAPER 2

TERM 2

CHAPTER 10 (PART 1)

WEEK 6

FORMS OF OWNERSHIP

REVISED NOTES

2025

1
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

TABLE OF CONTENTS

TOPICS PAGES
Exam guidelines for forms of ownership 3
Terms and definitions 4
Factors that need to be considered when 5
choosing a form of ownership
List of forms of ownership 5
Definition/Characteristics/Advantages & 6
Disadvantages of a sole trader/proprietor
Definition/Characteristics/Advantages & 6-7
Disadvantages of a partnership
Differences between a sole trade & 8-9
partnership

This chapter consists of 9 pages

2
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

CONTENT DETAILS FOR TEACHING, LEARNING AND

ASSESSMENT PURPOSES

Learners must be able to:

 Define the meaning of different forms of ownership.
 Explain/Discuss/Describe the characteristics/ advantages/disadvantages of each form
of ownership.
 Distinguish/Differentiate/ between different forms of ownership.
 Identify forms of ownership from given case studies/scenarios/cartoons/pictures
 Select a best form of ownership and justify the reasons for selection.

TERMS AND DEFINITIONS

TERM DEFINITION
Form of ownership the legal position of the business and the way it is owned.
Continuity continue to exist even if a change of ownership takes place, e.g. a
member or shareholder dies or retires.
Surety if a person or business accepts liability for the debt of another
person or business.
Securities shares and bonds issued by a company.
Limited liability loses are limited to the amount that the owner invested in the business.

Unlimited liability the owner’s personal assets may be seized to pay for the debts of the
.business.
Memorandum of a document that sets out the rights, duties and responsibilities of
Incorporation shareholders, directors and other stakeholders within the business.
Sole Trader /Sole .a business is owned and controlled by one person who takes all the
proprietor decisions, responsibility, and profits from the business they run.
Partnership an agreement between two or more parties that have agreed to finance
and work together in the pursuit of common business goals.
Company a type of business structure that has a separate legal entity from
its owners.
Profit company a business entity whose aim is to generate profit from
the regular operations
Non – profit company a company incorporated for public benefit.
Private company a company whose shares may not be offered to the
public for sale.
State owned company a legal entity that is created by the government
to participate in commercial activities on its behalf.
Prospectus a document inviting the public to buy securities/shares.
Directors people elected to the board of a company by the shareholders
to represent the shareholders’ interests.
.a personal liability company is a voluntary association of 1 or more
Personal liability person.
company
Partnership .a document that contains exhaustive provisions with regards to
Article the matters concerning the business and the partners.

3
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

Proprietor the owner of a business.

Annual General a meeting held once a year where the shareholders receive a
Meeting (AGM) report stating how well the company has done.
Audit process where an organization’s accounts are checked to make
sure, its financial operations are honest

1. INTRODCTION

 Forms of ownership refers to the legal position of the business and the way it is
owned.
 An entrepreneur may decide which of the forms of ownership will best suit their type
of business.

Factors that need to be considered when

choosing a form of ownership
 New business owners need to consider the following factors when they choose
 the form of ownership their business will take:
 the start-up cost and the future capital
 the size and nature of the business
 tax implications
 how the business will be controlled and managed/management structure
 the risk involved
 how capital will be contributed
 how profits and losses will be shared
 who is responsible for any debts made by the business/liability
 the life span of the business/continuity
 the vulnerability of the business in terms of lawsuits/legal persons.
1.1 Forms of ownership
 Sole trader
 Partnership
 Personal liability Company (PLC)
 Private company (Pty Ltd)
 Public company (Ltd)
 State Owned Company (SOC)
 Non- Profit Company (NPO)
 Co-operative

4
 GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

1.2 Characteristics/Advantages and Disadvantages of different forms of ownership

1.2.1 Sole trader/Proprietor

Definition
 A sole trader is a business that is owned and managed by one person.
 The business owner handles everything including the activities of the business, its
processes and decisions.
 It is most suitable for service businesses such as a doctor/hairdresser/electrician etc.

Characteristics of a sole proprietor

 Owner can sell the business to anyone at any time.
 There are no legal requirements regarding the name of the business
 It is easy to establish as there are no legal formalities in forming the business.
 Sole traders are not compelled by law to audit financial statements
 The owner has a personal interest in the management and the services that is
rendered.
 The owner has unlimited liability/The owner is personally liable for the debt of the
business.
 A sole trader has limited company for expansion and lacks continuity of existence.
 The business has no legal personality and therefore has no continuity/Continuity
depends on the life and health of the owner.
 The business dissolve when the owner dies.
 The owner provides capital from his/her saving/borrow money from the bank.
 The owner has a personal interest in the management and the services that is
delivered.
 Profit is added to the rest of the owner’s taxable income.
 There are no special requirements when the owners want to close the business.
Advantages of a Sole trader/proprietorship
 It is easy and quick to form a sole trade as there is less capital needed.
 The owner can take quick decisions as and when required and has full control.
 The owner can take steps to eliminate wastages of any kind.

5
 GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

 No legal process and requirements

 Can easily adapt to the needs of the client/customer
 The assets of the business belong to the owner personally
 A sole trader can close contracts and trade in his own name
 The owner takes all of the profits made by the business and are entitled the ownership
of assets.
 There is personal encouragement and personal contact between the owner and
customers.
 Sole traders are generally closer to their customers and offer a more personalised
approach and improved customer service.

Disadvantages of a Sole trader/proprietorship

 Since all decisions are taken by the owner, the area of the business will be limited to
the management abilities of the owner.
 It is not always possible to pay high salaries
 Unlimited liability which means that the owner is personally liable for all the debts and
losses suffered by the business.
 Growth of business can be restricted due to lack of capital.
 The owner is responsible for providing all the capital needed which may be difficult to
raise a big amount.
 If the owner does not have enough knowledge/experience the business may fail.
 A sole trader lacks continuity especially in the event of death or illness.
 It is not always possible to attract highly skilled workers because the capital is limited
to one person.
 The risk of unlimited liability forces many sole traders not to expand operations
beyond a certain point.
 Tax is calculated according to a progressive income system, which can be up to a
maximum of 40%.
1.2.2 Partnership
Definition
 An agreement between two or more people who combine labour, capital and
resources towards a common goal.
 Partners share the responsibility of the business and they share the financial and
management decision of the business.
 The partners may be individuals, businesses, or combinations.
 Partners share the responsibility of the business and they share the financial and
management decision of the business.

Characteristics of a partnership
 There should be at least a minimum of two people in a partnership.
 There are no legal requirements in starting a partnership except the drawing up of a
partnership agreement.
 The partnership agreement becomes the basis of the association between the
partners.
 Partners combine capital and may also borrow capital from financial institutions.
 Profit is shared according to the partnership agreement.
 Partners share responsibilities and they are all involved in decision making
 Partners have unlimited liability and are jointly and severally liable for the debts of the
business
 No legal requirements regarding the name of the business.
 No legal formalities to start, only a written partnership agreement is required.

6
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

 Partnership has no legal personality and therefore has no continuity.

 Partners share profits made and they are therefore motivated to work harder.
 The partnership does not pay income tax, only the partners in their personal
capacities.
 Auditing of financial statements is optional.
 Partners share responsibilities and they are all involved in decision making.
 Diversity/Specialisation/Different skills of the partners can be used.
 There is no specific suffix to be reflected in the name of the partnership.
Advantages of a partnership
 Can bring in extra partners at any time.
 Each partner will bring their knowledge, skills, experience, and contacts to the
business thus giving the business a better chance to succeed.
 All partners have a personal interest in the business.
 The workload and responsibility are shared between partners and each partner can
focus on their strengths.
 Partners invest new capital into the business to finance expansion
 It is easy and inexpensive to establish even with a written agreement.
 Partners share any profits and are therefore motivated to work hard.
 Partners share responsibilities for decision making and managing the business.
 Attract prospective employees with the option or incentives of becoming a partner.
 Partnerships are not compelled by law to prepare audited financial statements.
 Each partner can focus on their own individual strengths when sharing the workload.
 Partners are taxed in their own capacities, which could lead to lower taxation,
depending on the level of income of the individual.
 Raising additional capital to finance further business expansion is easy, because
there is no limit on the number of partners allowed in each partnership.
 The partners able to put their knowledge and skills together to collectively make the
best decisions.
 Partnerships are relatively easy to establish. There are no formal requirements for
the creation and running of a partnership.

Disadvantages of a partnership
 Partners might not all contribute equally.
 There can be lack of capital and cash flow.
 Partners might still find it difficult to raise capital as not all partners contribute cash.
 Partners are jointly and severally liable for the actions of the other partners.
 Partnership lacks continuity, if one partner dies/retires, the remaining partners need
to draw up a new agreement.
 Partnership is not a separate legal entity and therefore partners are liable for the
debts in their own capacity.
 Different personalities and options of partners can lead to conflict it disagreements.
 Each business partner is legally responsible for the joint liability of the partnership.
 A partnership has unlimited liability which means that partners risk losing their
personal possessions.
 Discussion between partners can slow down decision making, and they may
disagree on important business decisions.
 In large partnership, the partners may struggle to agree on business issues.

7
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

 Changes or transfer of ownership can be difficult and generally require a new

partnership to be established.
 Loss in profits and stability of the business can occur if a partner resigns/dies/loses
interest in the business or is declared bankrupt.
 Profits are divided between partners according to the partnership agreement and not
according to the income distributed.

1.2.3 Differences between a sole trade and a partnership

Sole trader Partnership
- A sole trader is a business that is - An agreement between two or more people who
owned and managed by one combine labour, capital, and resources towards
person a common goal.
- Quick and easy decisions can be - Discussion between partners can slow down
made since it is being taken by decision making, and they may disagree on
one person important business decisions
- The profit goes to the owner. - Profit is shared amongst the partners
according to the partnership agreement.

8
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

BUSINESS STUDIES
GRADE 10
PAPER 2
TERM 2
CHAPTER 10 (PART 2)
FORMS OF OWNERSHIP
REVISED NOTES

2025

TABLE OF CONTENTS

TOPICS PAGES
Exam guidelines for forms of ownership 2
Terms and definitions 3
Differences between profit and non-profit 3
organisations/companies.
Classification of forms of ownership 4
according to profit & non-profit company
Definition/Characteristics/Advantages & 4-10
Disadvantages of a non-profit company
Definition and types of co-operatives 10-11
Characteristics/Advantages & 12-13
Disadvantages co-operatives
This chapter consists of 11 pages

1
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT

PURPOSES

Learners must be able to:

 Outline/Explain the differences between profit and non-profit
organisations/companies.
 Outline the forms of ownership and classify them into profit and non-profit
organisation.
 Define the meaning of different forms of ownership.
 Outline/Explain/Describe/Discuss the characteristics/ advantages/disadvantages of
each form of ownership.
 Distinguish/Differentiate between different forms of ownership.
 Identify forms of ownership from given case studies/scenarios/cartoons/pictures
 Name the different types of co-operatives
 Outline/Explain/Describe/ Discuss the advantages and disadvantages of co-
operatives
 Select a best form of ownership and justify the reasons for selection.

TERMS AND DEFINITIONS

TERM DEFINITION
Form of ownership the legal position of the business and the way it is owned.
Continuity continue to exist even if a change of ownership takes place, e.g. a
member or shareholder dies or retires.
Surety if a person or business accepts liability for the debt of another
person or business.
Securities shares and bonds issued by a company.
Limited liability loses are limited to the amount that the owner invested in the business.

Unlimited liability the owner’s personal assets may be seized to pay for the debts of the
.business.
Memorandum of a document that sets out the rights, duties and responsibilities of
Incorporation shareholders, directors and other stakeholders within the business.
Sole Trader /Sole .a business is owned and controlled by one person who takes all the
proprietor decisions, responsibility, and profits from the business they run.
Partnership an agreement between two or more parties that have agreed to finance
and work together in the pursuit of common business goals.
Company a type of business structure that has a separate legal entity from
its owners.
Profit company a business entity whose aim is to generate profit from
the regular operations
Non – profit company a company incorporated for public benefit.
Private company a company whose shares may not be offered to the
public for sale.
State owned company a legal entity that is created by the government
to participate in commercial activities on its behalf.
Prospectus a document inviting the public to buy securities/shares.

2
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

Directors people elected to the board of a company by the shareholders

to represent the shareholders’ interests.
.a personal liability company is a voluntary association of 1 or more
Personal liability person.
company
Partnership .a document that contains exhaustive provisions with regards to
Article the matters concerning the business and the partners.
Proprietor the owner of a business.
Annual General a meeting held once a year where the shareholders receive a
Meeting (AGM) report stating how well the company has done.
Audit process where an organization’s accounts are checked to make
sure, its financial operations are honest

1.1 Differences between profit and non-profit companies

Profit making Companies Non-Profit-making Companies
 The company is established for only  The company is established for charity
one aim and that is to make profit. purposes or to promote social and cultural
 A company incorporated for financial activities
gain for its shareholders.  A non-profit company is an association
 The Memorandum of Incorporation incorporated not for gain.
sets out who the directors and  The Memorandum of Incorporation
shareholders are as well as their defines the purpose and its operations
rights, duties responsibilities.  The company have an independent legal
 It also sets out the number of shares entity, but the board of trustee is
that the company is authorised to protected unless found negligent or
issue. fraudulent.
 Profit organisations are responsible  Non-profit organisations are not required
for paying taxes based on their profit. to pay taxes on net income.

1.2 Classification of forms of ownership according to profit and non-

profit companies
Forms of ownership: Companies Classification according to non &
non-profit companies
 Private Companies: to be reflected
as Proprietary Limited or (Pty) Ltd Non-profit companies : are reflected as
 Personal Liability Companies: to be NPC
reflected as Incorporated or Inc
 Public Companies: to be reflected
as Limited or Ltd
 State-owned Companies: to be
reflected as SOC Ltd

3
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

1.3 Non-profit Company

1.3.1 Definition
 A non-profit company is a legal entity organised and operated for a collective, public
or social benefit.
 They include churches, charity organisations, and cultural organisations.
 The primary objective of an NPC is to benefit the public, not to make a profit.

1.3.2 Characteristics of non-profit companies

 The main aim is to provide service and not to make a profit.
 They are funded by donations and foreign funding.
 The name of the company must end in NPC.
 All profits must be used for the primary objective of the non-profit company.
 It must prepare the Memorandum of Incorporation.
 Qualifying NPCs are granted tax-exempt status.
 The board of a non-profit company must comprise at least three directors (3 or more
directors).
 Non-profit companies do not have a share capital and cannot distribute shares or
pay dividend to their members.

1.3.3 Advantages of a non-profit company

 Profits are used solely for the primary objective of the organisation.
 They provide social services to various communities.
 The company does not pay tax, so all earnings can be cycled back into the
organisation to improve it.
 Donations made by donors are tax-deductible, therefore it motivates people to
donate to the organisation.
 The liability of the members is limited
 An NPCs existence can last long after the founders leave the business.
 Can receive grants grants/aid from the government.
 Surplus of income is retained to further the goals of the business
 Must prepare the financial statements at the end of the year and is not compelled to
audit the financial statements.
 Non-profit companies are not compelled to attend the general annual meeting
(AGM).

1.3.4 Disadvantages of a non-profit company

 Need professional assistance to set up this organisation
 Does not generate enough capital to cover their expenses.
 Donations may not always be enough to finance the company’s expenses.
 Assets are not distributed to the members upon closing down.
 Creating a non-profit company takes time/effort/money.
 Obtaining grants can be a slow and tiring process.
 Incorporators cannot take along the assets accumulated by the NPC if they decide
to leave.
 They are not allowed to pay bonuses to members.
 They are compelled to prepare annual financial statements.

4
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

1.4 Profit companies

 Profit Company is established with a primary aim of making a profit for its owners or
shareholders.

1.4.1 Private company

Definition
 A private company is a company whose shares may not be offered to the public for
sale.
 A private company has between one or more shareholders
 It can be a small or large company and has one or more directors.
Characteristics of a private company
 A private company can have an unlimited number of shareholders, however, a
minimum of one director and one shareholder is required.
 Raises capital by issuing shares to its shareholders.
 The name of a private company must end with the words ‘(Proprietary) Limited’ or
‘(Pty) Ltd’.
 Investors put capital in to earn profit from shares.
 The company has a legal personality as well as unlimited continuity
 A private company is not allowed to sell shares to the public.
 Shareholders have limited liability and a separate legal entity.
 Profits are shared in the form of dividends in proportion to the number of shares held.
 Register with the registrar of companies by drawing up Memorandum of
Incorporation.
 Shareholders have a limited liability and will not lose their initial capital invested if the
business goes bankrupt.
 The Act imposes personal liability on directors who are knowingly part of the carrying
on of the business in a reckless or fraudulent manner.
 Private company must prepare annual financial statements..
 Annual financial statements need not be either audited or independently reviewed.

Advantages of a private company

 A company can continue to trade even if one shareholder dies/resigns.
 Managed at least by one competent highly skilled director.
 Information in a private company is only available to shareholders.
 Not required to file annual financial statements with the commission.
 The company has unlimited number of shareholders and its life span is perpetual.
 Shareholders can vote for/ appoint the most capable directors to manage their
company.
 Own legal identity and shareholders have no direct legal implications/ limited liability
 Large amount of capital can be raised since there is no limit on the number of
shareholders.
 Even though shares are not freely transferable, large private companies can raise
considerable amount of capital
 It is possible to sell a private company as it is a legal entity in its own right.
 The management of the company can improve since directors are accountable to
shareholders.
 The company can access long term capital and therefore has good long term
growth opportunities.
 The company is a separate legal person it can buy property in its own name.
Liabilities of the shareholders are limited.

5
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

Disadvantages of a private company

 Difficult and expensive to establish a private company compared to Close
Corporations and Sole Proprietorship
 Private companies are subject to many legal requirements and regulations which
can be onerous.
 Large management structures can result in decision-making taking time.
 The private company cannot be listed on the stock exchange, therefore, it cannot
sell shares to the public.
 Directors may sometimes act in their own interest, not in the company's best
interest.
 Annual financial statements must be reviewed by a qualified person, which is an
extra expense to the company.
 Difficult and expensive to establish as the company is subjected to many legal
requirements.
 Pays tax on the profits of the business and on declared dividends/Subject to double
taxation.
 Financial statements must be reviewed by a qualified person, which is an extra
expense to the company.
 Directors will be held personally responsible for debts if it can be proven that that
they committed fraud.
 Some shareholders may not exercise their voting rights resulting in choosing the
wrong person as a director.
 A meeting may not begin, or a matter may not be debated unless at least three
shareholders are present.

1.4.2 Personal liability Company

Definition
 A personal liability company is very similar to a private company except that the
present and past directors are personally responsible for any debts of the business.
 The name of the personal liability company ends in INC and the name of the private
company ends in (PTY) Ltd.

Characteristics of a personal liability company

• They must at least have one director on their board of directors.
 The company name must end with letters INC
 Directors have unlimited liability and they are jointly liable for the debts of the
business even if they are long out of office.
 The memorandum of Incorporation should state that it is a personal liability
company.
NOTE: Other characteristics of a personal liability company are the same
as the private company except the above mentioned two characteristics.
Advantages and disadvantages
 NOTE: The advantages of a personal liability company are the same as the private
company.
 The disadvantages are also the same as the private company except that the
directors of the personal liability company have unlimited liability.

6
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

1.4.3 Public company

Definition
 A public company is a company that is registered to offer its stock/shares to the
general public. This is mostly done through the Johannesburg Securities/Stock
Exchange (JSE).
 The public company is designed for a large scale operation that require large capital
investments.
Characteristics on a public company
 A minimum of one person is required to start a public company.
 The company name ends with letters Ltd
 Shareholders have a limited liability and are not personally liable for the debts of the
business.
 A prospectus is issued to the public to raise capital.
 Has legal personality and therefore has unlimited continuity
 A public company has a separate legal personality.
 Requires three or more directors and three or more shareholders.
 Profits are shared in the form of dividends in proportion to the share held
 A public company is required to hold an AGM (Annual General Meeting).
 Register with the Registrar of Companies by drawing up Memorandum of
Incorporation.
 Raises capital by issuing shares to the public and borrowing capital by issuing a
debenture.
 Auditing of financial statements us compulsory and audited statements are available
to shareholders and the public
 The new Act forces personal liability on directors who knowingly participated in
carrying out business in a reckless/fraudulent manner.

Advantages of a public company

 The business has its own legal identity and can own assets/property.
 Public companies enjoy the ability to raise funds through the sale of the company’s
stock to the public.
 Managed by at least three competent highly skilled director.
 Directors bring creative ideas which encourage innovation/high productivity
 Shareholders can sell/transfer their shares freely.
 Attracts small investors as shares can be transferred freely/ easily
 Strict regulatory requirements protect shareholders.
 Easy to raise funds for growth through the sale of shares.
 Additional shares can be raised by issuing more shares or debentures.
 No limitation on the number of shareholders, so growth/ expansion is not limited
 Shareholders have a limited liability for the debt of the company/Shareholders may
only loose the amount which they invested.
 The management of the company can improve since directors are accountable to
shareholders.
 The public has access to the information, and this could motivate them to buy
shares from a company

7
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

Disadvantages of a public company

 Difficult and expensive to establish as the company is subjected to many legal
requirements
 Public companies are vulnerable to increased scrutiny from the government and the
public.
 Must disclose all financial information which can be used by its competitors
 Directors may not be motivated to work very hard because shareholders decide on
the directors' remuneration.
 Directors may not have a direct interest in the company, which can hamper growth
and profit maximisation
 Directors' fees increase the company's expenses which reduces net profit.
 Some shareholders may not exercise their voting rights resulting in choosing the
wrong person as a director
 A full report must be submitted to the major shareholders each year
 Large management structure can result in decision making taking time
 Large amount of funds are spent on financial audits.
 Auditing of financial statements are compulsory.
 They must prepare their financial reports in accordance with the Generally Accepted
Accounting Principles (GAAP).
 Management may be open to legal challenges if their reports do not comply with
King Code III.
 Public companies are subject to more disclosure and transparency requirements.

Differences between the private company and public company

PRIVATE COMPANY PUBLIC COMPANY
- May no offer shares to the - Trades its shares publicly on the
general public. Johannesburg Securities Exchange.
- Shares are not freely transferable - Shares are freely transferable.
- Minimum of one director. - Minimum of three directors.
- Name must end with Proprietary - Name must end with Limited/Ltd.
Limited/(Pty) Ltd.
- Annual financial statements need - Annual financial statements need to be audited
not be audited and published. and published.
- Does not need to publish a - Have to register and publish a prospectus with
prospectus as it cannot trade its the Companies and Intellectual Property
shares publicly. Commission/CIPC.
- The company is not required to - Must raise a minimum subscription prior to
raise the minimum subscription/ commencement of the company.
issue minimum shares.

Differences between the private and a personal liability company

PRIVATE COMPANY PERSONAL LIABILITY COMPANY
The name ends with (PTY) Ltd The name ends with INC
The directors are not personally liable The directors are personally liable for the
for the debts of the business. debts of the business.

8
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

1.4.4 State owned company

Definition
 A state-owned company has the government as its major shareholder and falls
under the department of Public Enterprise.
 These companies take on the role of commercial enterprise on behalf of the
government.
 Examples of state-owned companies in South Africa include Armscor, Alexkor,
SAA, Eskom, Transnet.
Characteristics of a state-owned company
 The name ends with letters SOC.
 The state-owned company is financed by the government.
 SOC is listed as a public company.
 It is owned by the government and operated for profit.
 One or more persons may incorporate and there is no limit on number of
shareholders.
 Requires three or more directors and one or more shareholders.
 Register with the Registrar of Companies by drawing up Memorandum of
Incorporation.
 State-owned companies support private businesses by providing infrastructure such
as communication service /Post office and supply of electricity/Eskom.
 A state-owned company enjoys financial autonomy because they are to depend on
the government for initial investment.
 The Act imposes personal liability on directors who are knowingly part of the
carrying on of the business in a reckless or fraudulent manner.
 State-owned company is compelled to have its financial statement audited.
 A state-owned company is compelled to attend an annual general meeting (AGM).
 A state-owned company has a separate legal personality and have limited liability.
Shareholders have limited liability

Advantages of a state-owned company

 Shareholders have limited liability.
 SOCs help eliminate economic exploitation and oppression.
 Profits may be used to finance other state departments.
 Offer essential services which may not be offered by the private sector
 Wasteful duplication of services is eliminated.
 Jobs are created for all skills levels.
 Generates income to finance social programmes.
 Prices are kept reasonable/Create sound competition with the private sector to
make services affordable to more citizens.
 Planning can be coordinated through central control
 Provides a healthy competition to private sectors because of government
contributions.
 Most of the government companies run on sound business lines as they have their
surpluses to run their projects.
 State-owned company can be expanded by means of selling its shares to the
public.
 A state-owned company has a separate legal personality.

9
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

Disadvantages of a state-owned company

 Inefficiency due to the size of the business.
 Financial statements must be audited.
 Losses must be met by the taxpayer.
 Government can lose money through the business.
 Shares are not freely tradable making it difficult to raise capital.
 A lack of incentive for employees to perform if there is no absence of other
motivator such as productivity bonuses.
 A lack of incentive for employees to perform if there is no share in the profit.
 May result to poor management as government is not always as efficient as the
private sector.
 Often rely on government subsidies which may not cover all the company’s
expenses.
 SOC must follow strict regulations for operations to raise capital.
 The management of the SOCs must attend an AGM.
 State-owned company is compelled to have its Financial statement audited

1.5 Co-operatives
 A cooperative is a traditional way of a group of interested parties getting together and
sharing resources/infrastructures and costs to achieve a better outcome.
 A co-operative society is a voluntary association that is established with the
aim of service to its members.

Types of Co-operatives
 Housing co-operative.
 Worker co-operative.
 Social co-operative.
 Agricultural co-operative.
 Co-operative burial society.
 Financial services co-operative.
 Consumer co-operative.
 Transport co-operative

Characteristics of Co-operatives
 Minimum of five members is required to start a cooperative.
 The word ‘Cooperative Limited’ must appear at the end of its name.
 They are motivated by service rather than profit.
 They are managed by a minimum of three directors.
 They have a democratic structure, with each member having one vote.
 Members own and run the business together and share equally in its profits
 Legal entity and can own land and open bank accounts.
 Must register with the Registrar of Cooperatives Societies.
 The objective of a co-operative is to create mutual benefit for the members.

Advantages of Co-operatives
 Access to resources and funding.
 Decision making is by a group
 Members have limited liability
 The decisions are democratic and fair
 Co-operatives have continuity of existence

10
GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 10

 Profits are shared equally amongst members

 Each member has an equal share in the business.
 A co-operative can appoint its own management
 Members are motivated because they are working for themselves
 Can gain extra capital by asking its members to buy shares.
 Resources of many people are pooled together to achieve common objectives.

Disadvantages of Co-operatives
 Difficult to grow a co-operative.
 Shares are not freely transferable
 Very few promotion positions for staff.
 Decisions are often difficult to reach and time consuming.
 It can be difficult to get a loan because their main objective is not always to make a
profit.
 The success of cooperatives depends on the support of the members.\
 All members have one vote regardless of the number of shares.

11
BUSINESS STUDIES NOTES Chapter 10

BUSINESS STUDIES
GRADE 10
PAPER 2
TERM 3
CHAPTER 11
CREATIVE THINKING AND PROBLEM-SOLVING

REVISED NOTES
2025

TABLE OF CONTENTS

TOPICS PAGES
Exam guidelines for Creative thinking and Problem solving 2
The meaning of creative thinking 3
Advantages/benefits of creative thinking in the workplace 3
How businesses use creative thinking to generate entrepreneurial 4
opportunities
The meaning of problem solving 4
The differences between decision making and problem solving 4-5
The problem-solving cycle 5-6
Problem solving techniques 6-9
Ways in which creative business opportunities can realistically be 9-10
implemented

This chapter consists of 10 pages.

1
BUSINESS STUDIES NOTES Chapter 10

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT PURPOSES

Learners must be able to:

 Elaborate on the meaning of creative thinking.
 Outline/Explain/Describe/Discuss the advantages/benefits of creative thinking in the
workplace.
 Explain how businesses can use creative thinking to generate entrepreneurial opportunities,
e.g. designing environments that stimulate creative thinking.
 Define/Elaborate on the meaning of problem-solving.
 Outline/Explain/Distinguish the differences between decision-making and problem solving.
 Outline/Explain/Discuss/Describe the problem-solving cycle.
 Name/Explain/Discuss problem-solving techniques
o Force-Field Analysis
o Delphi Technique
o Nominal Group Technique
o Brainstorming
 Explain/Describe how businesses can apply problem-solving techniques to solve business
problems.
 Identify problem-solving techniques from given scenarios/case studies.
 Recap the meaning of a business opportunity
 Explain/Describe how businesses can use mind mapping, and brainstorming to identify
innovative and entrepreneurial business opportunities.
 Recommend/Suggest ways in which creative business opportunities can realistically be
implemented.

TERMS/CONCEPTS DEFINITION/MEANING
Creative thinking involves the process of generating innovative and imaginative ideas.
Sustainable business a business practice that is economically viable, socially responsible,
practice and environmentally friendly is usually regarded as being sustainable.
Indigenous knowledge the local knowledge that is unique to a given culture or society.
Non-conventional thinking refers to thinking differently and looking at something in a new way.
Mind mapping diagrams that represent ideas that are connected to a central theme.
Force Field Analysis a technique used to determine the forces that are for and against a
decision.
Nominal Group Technique a structured method for group brainstorming that allows every member
to come up with ideas on their own.
Brainstorming a group activity to find a solution for a specific problem by gathering a
list of ideas spontaneously.
Delphi Technique a method that relies on a panel of experts to find solutions to a
problem.
Problem solving the process of finding solutions to difficult or complex issues.

2
BUSINESS STUDIES NOTES Chapter 10

1 The meaning of creative thinking

 Creative thinking is the ability to think original, varied and innovative ideas.
 It focuses on exploring ideas/generating possibilities/looking for many possible
solutions.
 Thinking in a way that is unconventional and original.
 It is the act of producing new ideas and making them real.
 Generating new ideas and being open to new ideas.
 Focuses on exploring ideas/generating possibilities and looking for many possible
answers.
 Creative thinking involves the process of generating innovative and imaginative ideas. It
is the ability to see something in a new way.
 It is also about being able to think of unique ideas or new approaches to solve
problems.
 Whether businesses consider making changes to a product or creating a new
advertisement in an ever-changing world, creative thinking at the workplace can have a
positive impact.

2 The advantages/Benefits of creative thinking in the workplace

 New, innovative, and better ideas and solutions are generated.
 Creative thinking improves the quality of solutions to business problems.
 Products and services can be marketed creatively.
 Creativity is key to staying one step ahead of competitors.
 Complex business problems may be solved.
 It leads to increased productivity of the entire business.
 It leads to more positive attitudes as managers and employees feel that they have
contributed towards problem-solving.
 It improves motivation amongst staff members.
 Stimulates profitable new ideas for products/marketing campaign and public relations.
 Managers can come up with creative strategies for the business.
 Employees can think for themselves and come up with creative solutions.
 Motivates employees and improves their skills resulting to a happy workforce.
 Improves productivity and reduces voluntary turnover.
 Creative public relations strategies can be designed and implemented.
 Helps businesses to respond to the threat of competition and to remain leaders in the
field.
 Creativity may lead to new inventions that will improve the general standard
 of living.
 Management and employees may keep up with fast-changing technology.
 Helps businesses to provide its clients with the best possible products or services,
which improves client loyalty.
 Leads to the development of better methods of production to save on costs.
 Allows businesses to extend its range of services like offering better customer services
or credit facilities.
 New products/services can be designed to meet changing needs of customers.
 Managers can motivate and manage staff in creative ways to get the best from them.

3
BUSINESS STUDIES NOTES Chapter 10

3 Ways in which businesses use creative thinking to generate entrepreneurial

opportunities
 Successful entrepreneurs use creative thinking to come with new products/services.
 They create a new market for their products that never existed before.
 Creative thinking can be applied to continuously improve products and to stay ahead of
competition.
 Designing environments that stimulate creative thinking.
 Encourage staff to come up with new ideas and solutions.
 Encourage alternative ways of doing things.
 Respond enthusiastically to all ideas and never let anyone feel less important.
 Make time for brainstorming sessions to generate new ideas, for example holding
regular workshops.
 Place suggestion boxes around the workplace and keep communication channels open
for new ideas.
 Train staff in innovative techniques, creative problem-solving skills, mind-mapping and
lateral thinking.
 Emphasise the importance of creative thinking to ensure that all staff knows that
management wants to hear their ideas.
 Encourage job swops within the organization and study how other businesses are
doing things.
 Regard indigenous knowledge as a valuable resource when solving problems or
identifying opportunities.

ENRICHMENT
Businesses can use creative thinking to solve business problems
Creative thinking and problem-solving are necessary components of sustainable business
practice. Solving problems are at the centre of what many people do at work every day.
Businesses are required to apply creative and critical thinking skills to solve problems. A
fundamental part of the role of every manager is finding ways to solve problems:
 Management can come up with creative solutions for the business.
 Management can be creative when managing and motivating employees.
 Employees can come up with creative strategies for problems.
 New products can be designed to meet changing preferences and demands.
 Existing goods and services can be adapted to meet ever-changing needs.
 Goods and services can be marketed in creative ways.
 Public relations can design and implement creative strategies.

4 The meaning of problem-solving

 Problem solving is the ability to search for and find information relating to the problem.
 Problem solving is the process of finding solutions to difficult or complex issues.
It is a process that requires creative thinking. Alternative solutions are identified and
critically evaluated. Effective problem solving results in good decision-making.
 t is a process of identifying and analysing the problem and coming up with the
solutions.
 Problems can be solved by a group/team or an individual. Various techniques may be
used.

4
BUSINESS STUDIES NOTES Chapter 10

5 Differences between decision making and problem solving

DECISION-MAKING PROBLEM-SOLVING
Decisions are usually made by one Problem-solving usually involves a
person. group/team.
Various alternatives are considered Alternatives solutions are identified
before deciding on the best one . and evaluated
It does not form part of the problem Innovative solutions are generated,
solving since decisions need to be implemented, and evaluated.
taken for each step of the business
process.
Decision-making is the process of Problem-solving is the process of
choosing from several alternatives. finding a solution to a problem.

It is part of the problem-solving process It involves analysing the problem to

where a solution is chosen. identify solutions.

6 Problem-solving cycle/steps
 Businesses need to have a process that can be used to solve their problems.
 The problem-solving cycle/steps consists of the following aspects:

Identify the problem

 Acknowledge that there is a problem.
 Identify the exact problem.
 Break down the problem into smaller/separate parts that are easier to solve.
 Businesses must first know and understand the problem.
 The problem must be defined accurately.
 Develop a detailed problem solving statement that includes the effect the problem has
on the business.
 Businesses should get the opinions and suggestions of everyone involved.
 Collect as much information as possible and study the problem.

Define the problem

 Define the causes of the problem.
 Focus on the real problem by finding out as much information as possible.
 Focus on the real problem by finding out as much information as possible.
 This step can only take place once a business knows and understands its problem.
 Generate a definition that is concrete and specific.
 The nature of the problem must be precise.
 They must define the possible causes of the problem.
 Define the problem so that it becomes easier to find a solution.

Develop an action plan

 Identify all different possible solutions.
 Finding a solution involves constructing a course of action that will change the situation.
 A strategy is a plan of action that requires further investigation before a decision is
reached.
 Businesses need to use problem solving techniques to find solutions.

5
BUSINESS STUDIES NOTES Chapter 10

 Use the problem-solving techniques to formulate relevant the strategies.

 Consider different solutions for the problems by using creative thinking techniques.
 The solution must be realistic and executable.
 The action plan includes the details of activities that must be performed.

Choose the best solution/strategy

 Businesses must set criteria for the best solution/strategy, in terms of aspects such as
time/cost/risk involved.
 The best solution/strategy should match the size and the resources of the business.
 If the solution is not appropriate, they should go back to defining the problem.

Allocate the resources

 Arrange the necessary solutions.
 Proper resource allocation makes it easier to assign tasks and execute them based on
their priorities.
 Resources include money/staff members/time/equipment etc.
 Plan carefully so that you do not interrupt the normal running of the business.
 Consider buying affordable and effective resources.
 Communicate with employees so that they understand the strategy and know who will
do each job.
 This process requires good planning, communication and organising skills.

Implement the suggested solution/action plan

 Carry out the solution/action plan.
 The action plan includes the details of activities that must be performed.
 Put the suggested solution into action and have necessary resources to implement the
suggested solution.
 Plan the steps required to implement the suggested solution.
 Implement the suggested solution according to the plan.
 The method and time of implementation be considered.

Monitor the implementation of the solution/action plan

 Monitor/closely observe the solution/action plan.
 Ensure that the solution is being implemented as expected by gathering feedback.
 Monitor whether the strategy is solving the problem as defined in step one.
 If the strategy is not working, then return to step 3 and come up with an alternative
strategy.

Evaluate the implemented solution/action plan

 Consider the advantages and disadvantages of the whole process.
 This includes whether the action plan has solved the problem.
 Businesses must use critical evaluation and analytical skills to evaluate the strategy.
 Once the strategy has been implemented, evaluation process must be done to identify
areas that were effective and areas where improvement can be made.
 Monitor if the strategy was successful or not in solving the problem.
 Evaluate the entire process that was used to reach the strategy.
 Get the views of all the people involved in the process.

6
BUSINESS STUDIES NOTES Chapter 10

7 Problem-solving techniques
 Force field analysis
 Nominal group technique
 Brainstorming
 Delphi technique

8 Force field analysis

 It is aimed at facilitating change in the business.
 People are often resistant to change and will act against change taking place.
 Management is a force acting for change, while the employees are a force acting
against change.

Application of force field analysis

 Change should be communicated effectively to employees.
 Stop all change for a while until proper communication has been done.
 Explain the reasons and benefits of the changes to all staff.
 Ensure that everyone understands how the change will affect them.
 Ensure that all questions are dealt with effectively.
 Do not make any more changes in the organization for a while so that it can stabilise,
and employees can get used to the changes.
 The business should describe the current situation and the desired situation.
 Write a plan/proposal for change in the middle.
 Weigh up the positives and negatives then decide if the project is viable.
 Choose the force with the highest score as the solution.
 List all the forces driving (positive) and resisting (negative) change.
 List all forces in support of the change in one column.
 Allocate a score for each, from 1 (weak) to 5 (strong)
 Determine if change is viable. If not, check which resisting forces can be
influenced/mitigated/avoided to make the change possible.
 If so, find ways to increase the forces for change and diminish the forces against
change.
 Based on this outcome, come up with a strategy to help reduce the resisting forces and
ensure that the changes can be done.
 Identify priorities and develop an action plan.

7
BUSINESS STUDIES NOTES Chapter 10

9 Delphi technique
 The Delphi technique is used when trying to solve a big problem of which there seem to
be no previous examples.
 Method that relies on a panel of experts to find solutions to a problem.
 Businesses use this technique to obtain group input from experts on a specific issue.
 The experts are intentionally kept apart so that their responses are not influenced by
other experts taking part in the process.
 This technique uses a series of questionnaires to obtain feedback from experts.
 The questionnaires are summarized to bring about the agreement from the different
views.

Application of Delphi technique

 A panel of experts is invited to participate in the process.
 Experts do not have to be in one place and will be contacted individually.
 A questionnaire is designed and distributed to the panel.
 Request the panel to individually respond to the questionnaires/suggest solutions to the
problem and return it to the business.
 Summarise the responses from the experts in a feedback report.
 The feedback report and a second set of questions/questionnaire related to the
feedback are sent to the panelists.
 Request panel members to provide further input/ideas on how to solve the problem
after they have studied the results/documentation.
 They then complete the second questionnaire
 Distribute a third questionnaire based on previous feedback from the second round.
 Prepare a final summary/feedback report with all the methods to solve the problem
 Consensus is reached and the best solution is chosen.

10 Nominal group technique

 The nominal group technique is used to avoid the disadvantages of group discussions.
 Requests each employee to silently brainstorm and generate many ideas on their own
and to write them down.
 A voting process is added to rank the ideas that are generated.
 Everyone in the group is expected to participate in silence.

Application of the Nominal Group technique

 The group is divided into a smaller group of 5 or 6 people around the table.
 The problem is defined clearly.
 Each individual silently brainstorms as many ideas as possible and write them down.
 One by one, each person in the group gives one of their solutions/ideas with a short
explanation.
 Someone writes them all down on a big sheet of paper.
 Everyone gives a second solution, and so on until all possible solutions have been
recorded.
 No one is allowed to criticize, but participants may ask questions to understand the
suggested solution more clearly.
 Duplicate ideas are the eliminated.
 Individuals anonymously rank suggestions from 1 upwards.

8
BUSINESS STUDIES NOTES Chapter 10

 The ratings are collected, and the points collected and calculated.
 Solutions may also be chosen by voting to determine the best idea(s).
 The group is given the results of which idea received the most points, the second most
points, and so on.
 Each group presents the solution that was deemed the best according to the votes.

11 Brainstorming
 Brainstorming is a group activity to find solution for a specific problem by gathering a list
of ideas spontaneously.
 It is a method for inspiring creative problem solving by encouraging group members to
come up with thoughts and ideas.
 Some of the ideas can be crafted into original creative solutions to a problem, while
others can spark even more ideas.
 Businesses use brainstorming when they want to involve employees/team in the
decision-making process.
 It needs to be managed by a facilitator to ensure that the best result is achieved.

Application of brainstorming
 The problem must be defined clearly.
 People in the group suggest ideas and solutions at random.
 All ideas must be written on a flip a chart.
 The facilitator must encourage everyone to participate and ensure that no-one criticizes
any suggestions.
 When the time is up/no one has any more ideas, the sheets with suggestions are hung
around the room.
 Similar ideas are grouped together using coloured pens.
 The group evaluates the ideas and rates them according to how successful they think
each idea will be.
 A plan of action is discussed to put the best ideas into practice.

12 Explain/discuss how businesses can use mind mapping, brainstorming to identify

innovative and entrepreneurial business opportunities.
DO NOT ASSESS THIS CONTENT
o Application of mind mapping
o Create a central idea or theme.
o The central idea or theme is the starting point of the mind map and represents
o the topic to be explored.
o Add branches to the mind map linking key concepts to the main theme.
o Add keywords to the branched-off key concepts.
o Branches may be colour-coded.
o Images may also be included.
o Mind maps are diagrams that represent ideas that are connected to a central theme. It
is a way of linking key concepts using images, lines, and links. A central concept is
linked via lines to other concepts, which in turn are linked with other associated ideas.
o Mind mapping helps individuals to think, collect knowledge, remember, and create
ideas. Simplify mind mapping so that learners can easily understand.

9
BUSINESS STUDIES NOTES Chapter 10

13 Ways in which creative business opportunities can realistically be implemented

 People must be prepared tom pay enough for the product to cover the production costs.
 There must be a demand for the product/service.
 Introduce the new product to the consumers and educate them on how it could be
useful to them.
 The entrepreneur must first identify a business opportunity to implement.
 Develop a realistic plan.
 Plan the activities to be conducted with reasonable deadlines and resources.
 People in the business must also be identified and given tasks and activities of the
plan.
 The entrepreneur must motivate the workers to implement the plan.
 Put control measures in place to ensure that workers are implementing the plan.

10
BUSINESS STUDIES NOTES Chapter 11

BUSINESS STUDIES
GRADE 10
TERM 3
CHAPTER 12
NOTES ON BUSINESS OPPORTUNITY
AND RELATED FACTORS
REVISED NOTED
2025
TABLE OF CONTENTS

TOPICS PAGES
Exam guidelines for business opportunities 3
Terms and definitions 3
The meaning of a business opportunity 4
The importance of assessing needs and desires in identifying 4
a business opportunity
Design a research instrument to assess needs & desires 4-5
Protocol for conducting research. 5-6
Conduct market research and identify a business 6
opportunity.
Difference between internal & external market research. 7
Using a SWOT analysis to to determine a viable business 7
venture
Meaning of a SWOT analysis 7-8
Benefits of a SWOT analysis 8
The importance of conducting a SWOT analysis 8
Limitations of a SWOT analysis 9
This chapter consists of 9 pages.

1
BUSINESS STUDIES NOTES Chapter 11

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT

PURPOSES

Learners must be able to:

 Elaborate the meaning of a business opportunity and give practical examples.
 Explain the importance of assessing needs and desires in identifying a business
opportunity.
 Design a research instrument to assess needs & desires e.g. questionnaires, interview
structure/schedule.
 Outline/Explain/Describe protocol for conducting research.
 Conduct market research and identify a business opportunity.
 Outline/Explain the difference between internal & external market research.
 Compile a SWOT analysis to determine a viable business venture.
 Identify a business opportunity based on the findings from compiling a SWOT analysis.
 Apply a SWOT analysis from given scenarios/case studies.

TERMS AND DEFINITIONS

TERMS DEFINITIONS

Business opportunity The potential of a business idea to succeed based on the researched
needs and desires of the potential market

Research A systematic investigation to find facts or to collect information.

Potential market Customers who will want to buy a product/service and who have the
cash or credit facilities to do so

Risks Possibilities of loss or damage

Research instrument A device/tool that can be used to gather information or to form a set of
guidelines for observation
Respondents People to whom the investigation is carried out/person who completes a
questionnaire
Feasible Being possible and practical to achieve something easily/conveniently

Viable Capable of working successfully

Strengths Particular skills and circumstances that exist in the business and its staff
that contribute to its success.

Weaknesses Circumstances that work against the business and its success
Opportunities Circumstances that make something possible to the advantage of the
business
Threats Things that can cause the business to fail

Target market A specific group of customers at which a company aims its products and
services.
SWOT analysis A technique/tool that is used to evaluate a situation from different angles
in order to make strategic decisions.

2
BUSINESS STUDIES NOTES Chapter 11

1 The meaning of a business opportunity

 A business opportunity is an idea for a person to start a business so that they can
generate an income.
 It is a chance of improving the current operations of a business which can contribute
to greater profitability.
 A business opportunity is an idea for a product /service that will meet needs/desires,
and that can be sold or leased to earn an income.
 Entrepreneurs should be constantly on the lookout for new business opportunities to
be competitive.
 It is an idea that can be converted into viable, income-producing business.
 Each need and desire are a possible business opportunity.
 It is a gap in the market when peoples’ needs and desires are unfulfilled.

Examples of business opportunities:

o Home care services for senior citizens online education programmes catering and
ready-made meals.

2 The importance of assessing needs and desires in identifying a

business opportunity
 Needs and desires are keys to successful business opportunities.
 The success of a business opportunity depends on the awareness and fulfilment of
target market.
 Every need and every desire are a possible business opportunity.
 Business should create a desire for the product through a well- designed advertising
and marketing campaign.
 Needs and desires form guarantee a possible market.
 When people have needs or desires that are not fulfilled, then a business opportunity
is presented to fulfill those needs and desires.
 It is easier to find something that people want and to create a business around that
since desires are unlimited.
 Sometimes an entrepreneur will invent a new product for which there is no existing
desire or market.
 In such a case the entrepreneur would have to create a desire for the product
through clever advertising and a good marketing campaign.

3 Designing a research instrument to assess needs and desires

 A well-designed research instrument informs a business about the needs and desires
of potential customers.
 Businesses can use this research data to reduce risk and make informed business
decisions.
 Entrepreneurs usually develop a research instrument to find out about people’s
needs and desires.

3
BUSINESS STUDIES NOTES Chapter 11

4 Different research instruments

 A research instrument is a tool used to collect, measure and analyse data related to
a business opportunity.
 A good research instrument will provide information about a target market, which is
meaningful, that is, the respondents actively participated in the research.

5 Design a good research instrument

A good research instrument will give you complete and accurate information.
The following steps must be followed:
 Decide what information you need
 Be clear about what you want to know about potential customers.
 Use a table to analyse data from the research. Ask simple and clear questions
 Have a variety of questions.
 Include some multiple choice, tick box questions, questions where things must be
 ranked according to scale.
 Test the questions.

FOR ENRICHMENT NOT EXAMINABLE

6 Types of research instruments for data collection

4
BUSINESS STUDIES NOTES Chapter 11

Questionnaires
 Questionnaires are designed to collect information from people about their
attitudes/preference/level of knowledge/personalities/beliefs etc.
 A questionnaire consists of a series of questions that are developed to gain
information from respondents.
 Respondents give answers in writing.
 Responses may be immediate/direct or need to be emailed.

Interviews
 Business situations provide opportunities for interviews with employers, customers,
analysts etc.
 The interviewer leads the interview by asking questions and the interviewee
responds to the questions.
 Responses are collected from an individual or a group and may be recorded.
 Questions should be carefully prepared and selected to avoid any biasness.
 Questions should be carefully prepared to avoid anything that might be sensitive and
offensive.
 Helps businesses to collect the same type of information from many people.
 Businesses do not require processing assistants as they are able to analyse
responses/data.

7 The protocol for conducting research

The meaning of research protocol

 A research protocol is a plan with detailed guidelines that explain the rules of the
research.
 It will describe the objectives, design, methodology and statistical considerations of
the research depending on the type of information required.

8 Ethical issues and protocols to be adhered to when doing research:

 The research should be conducted with the willing cooperation of participants.
 If research is taking place within an organisation, it must be approved first.
 The person conducting the research should not try to influence the opinions of the
participants.

9 When pursuing a business opportunity, ensure that:

 It does not break any law or infringe on any copyright.
 It does not harm the environment.
 The product or service should be safe.
 The product or service should not be bad for people’s health.

5
BUSINESS STUDIES NOTES Chapter 11

10 The research protocol also addresses the integrity of research

 The research protocol must cover the ethics of the process. Ethics in research has
three elements:
o Research may not disadvantage anyone.
o Research may not be inhumane.
o Research may not exploit anyone.
 The research should be conducted with the willing cooperation of participants.
 The research must be approved first if it is taking place within an organisation.
 Research must comply with ethical standard of the organisation by obtaining
clearance from the authorised bodies or persons.
 The person conducting the research should not try to influence the opinions of the
participants.
 The research protocol should address the integrity of the research.
 The research should obtain consent from the respondents to carry out the research.

11 Conduct market research and identify a business opportunity

 Market research is the systematic gathering, recording, and analysing of data about
the marketing of goods and services.
 Market research to assess needs and desires.

12 The importance of market research for a business

 Market research assess the needs and desires of customers
 Entrepreneurs gain information about industry trends and the actions of their
competitors.
 Helps the business in developing and enhancing the product
 Guides business to minimise risks and identify gaps in customer expectation.
 Can be used to identify a business opportunity.
 Can guide a business to minimise risks
 To identify gaps in customer expectations.
 People’s taste, habits, behaviors, and desires change constantly.
 Regular market research will inform the business about the changes

13 The differences between internal and external market research

INTERNAL MARKET RESEARCH EXTERNAL MARKET RESEARCH

 Internal market research usually  External market research is market
conducted from within the business. research usually conducted by an
outside specialist.
 Employees together with general  Businesses use data from market
employers indicate taste, type of research that has been conducted in the
products/services of the business. past by other organisation/ statistics
published by the government.
 Different resources are used for  Useful information about the target
gathering business information for market, environment and about
helping management to make customers’ needs and desires can be
informed decisions. obtained.
 Employees are familiar with both  The feedback is obtained by customers,
customers and products which means potential customers, and suppliers

6
BUSINESS STUDIES NOTES Chapter 11

they are uniquely capable of

generating new ideas and how to
market it
 Internal market research focuses on  External market research focuses on the
the factors within the business interaction between the business and
the customers.

14 Compile a SWOT analysis to determine a viable business venture

The meaning of a SWOT analysis
 A SWOT analysis is strategic tool.
 It summarises a large amount of data into a user-friendly diagram.
 SWOT stands for Strengths, Weaknesses, Opportunities and Threats.
o Strengths and Weaknesses relate to internal factors, which are under the control
of the business (micro environment).
o Opportunities and Threats relate to external factors over which the business has
little (market environment) or no control (macro environment).
 It is used to help businesses make decisions by setting out information clearly in
order to only focus on important information.
 Entrepreneurs use a SWOT analysis to decide if their business idea is indeed a
viable business opportunity.

An example of a SWOT analysis

Imagine that you have decided to sell cakes at the school market day.
STRENGTHS WEAKNESSES
INTERNAL List all the strengths of your List all the areas where the business
idea/product/business e.g.: idea/product falls short e.g.
 Easily available  Perishable
 Can be made by learners.  Need careful handling.
 Cheap to make.  Need to be hygienically stored.
 Strong customer base  Have to be hygienically displayed
 Well-trained staff  Bad reputation
 Adequate resources  Financial problems
 Strong financial strength  Lack of trained staff

7
BUSINESS STUDIES NOTES Chapter 11

 Lack of capabilities
 Lack of resources
OPPORTUNITIES THREATS
EXTERNAL List all opportunities that could List everything that threatens the
assist the business idea/improve success of the business idea/product
the product e.g. e.g.
 Strategic partnerships  Economic factors- e.g. high
 Possibility of obtaining tenders inflation rate.
and contracts.  Political factors like strikes and
 New product and market protest
development  Environmental factors like climate
 Appeals to most learners. change and pollution.
 Not gender specific (boys and  Legal for example Acts that can
girls like cakes.) have an impact on businesses,
 Cheap compared to other for example EEA, SDA, BBBEE
products  High competition
 Low profit margin

Another example of a SWOT analysis

STRENGTHS WEAKNESSES
INTERNAL List all the strengths of your List all the areas where the business
idea/product/business e.g.: idea/product falls short e.g.
 Capabilities  Special registration
 Good employees  Bad reputation
 Sufficient resources  Lack of finances/resources
 Quality products/services  Lack of leadership
 Lack of capabilities

OPPORTUNITIES THREATS
EXTERNAL List all opportunities that could List everything that threatens the
assist the business idea/improve success of the business idea/product
the product e.g. e.g.
 Partnership with other  Economic factors
businesses  Political factors
 Fashion and trends  Environmental factors
 Tenders  Technological factors
 Product development  Legal factors
 Physical factors
 Competitors

8
BUSINESS STUDIES NOTES Chapter 11

15 Benefits of SWOT analysis

 It is not expensive to perform a SWOT analysis.
 It is a planning tool that can help a business to make decisions.
 It gives a big picture of a business opportunity.
 It can help a business to focus on what is important.
 Do not take a lot of time to perform a SWOT analysis. It can be done quickly, and you
have the analysis immediately available.
 Useful to find possible challenges in all three business environments.

16 The importance of conducting a SWOT analysis

 It is a useful planning tool and helps people to make decisions by setting out information
clearly.
 Businesses use this tool when making important decisions.
 Entrepreneurs use when making decisions about the viability of a business opportunity.
 It is useful to assess business opportunities because it assesses businesses strengths
and weaknesses.
 Helps business owners to identify ways in which their business can grow and identify
potential threats.
 Businesses can use this tool during any stage of development.
 Helps a business to determine its position to fulfil the needs and wants of their
prospective customers.
 It is useful if there are changes in the market environment or when considering starting a
new business venture.

17 Limitations of SWOT analysis

 When you are conducting a SWOT analysis, you should keep in mind that it is only one
stage of the business planning process.
 For complex issues, you will usually need to conduct more in-depth research. A SWOT
analysis may be limited because it:
o does not prioritize issues
o does not provide solutions or offer alternative decisions
o can generate too many ideas but not help you choose which one is best
o can produce a lot of information, but not all of it is useful.
o may cause businesses to overlook certain aspects in the business.

9
BUSINESS STUDIES NOTES Chapter 13

BUSINESS STUDIES

GRADE 10

TERM THREE

PAPER 2

CHAPTER 13

PRESENTATION OF BUSINESS INFORMATION

REVISED NOTES

2025

TABLE OF CONTENTS

TOPICS PAGES
Exam guidelines for presentation of business information 2
Terms and definitions 2
Importance of business reports 3
Guidelines on writing an effective business report. 3
The importance, advantages and disadvantages of 3-4
graphs/diagrams, symbols/pictures
factors that must be considered when preparing for a verbal 4
presentation.
Types of visual aids 5
Definition of the different visual aids 5
Purpose of visual aids 6
Factors to consider when designing/preparing a presentation 6

This chapter consists of 6 pages.

1
 BUSINESS STUDIES NOTES Chapter 13

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT

PURPOSES

Learners must be able to:

 Outline/Explain/Discuss the importance of business reports.

 Outline/Explain guidelines on writing an effective business report.
 Outline/Explain/Discuss the importance, advantages and disadvantages of
graphs/diagrams, symbols/pictures
 Outline/Explain/Discuss factors that must be considered when preparing for a verbal
presentation.
 Explain/Discuss/ Describe the different visual aids
o PowerPoint/Data projector/Slides
o Hand-outs/flyers/brochures
o Flip charts
o Interactive white boards/Smartboards
o Posters/signs/banners/portable advertising stands/flags
 Explain the purpose of visual aids
 Identify visual aids from given scenarios/case studies/pictures/cartoons. Support your
answer by quoting from given scenarios/case studies/pictures/cartoons.
 Outline/Explain/Discuss factors that must be considered when designing a presentation.

TERMS AND DEFINITIONS

TERMS DEFINITIONS
Business It is a written document that communicates information to assist business decision
report making.
a key communication tool that provides an evaluation of a particular issue relating to
the performance of the business.

Graphs Two-dimensional drawing showing a relationship between two set of variables by

means of a line/curve/bars.
Presentation The act of communicating information/data to an audience/stakeholder in an
organization.
.
Verbal The presentation is delivered through word of mouth or in words.
Presentation
Non-verbal Presentation is delivered through writing or supporting material.
Presentation the transfer of information through the use of business reports, handouts, charts,
and posters with the support of visual aids.

Visual Aid Refers to charts/pictures/images that help to clarify a point/enhance a presentation.

Audio Visual spoken words.

It is material or tool directed to both sense of hearing and sight, e.g., projector
Aid
Data Projector Is a devise that projects images from a computer onto a screen.
Interactive It’s a devise that has a data projector attached to it. It also has special pens that a
whiteboard presenter can write on it.

computer
2
 BUSINESS STUDIES NOTES Chapter 13

Overhead It is a devise that shines light through a glass on which a translucent slide is places
Projector on it.
Handout Printed information provided to the audience to accompany a presentation.
a written summary of information dealt with in a presentation.
Diagrams A drawing showing the appearance/structure/workings of data in a schematic
representation.
Flip Chart A large pad of paper, bound so that each page can be turned over at the top to
reveal the next page, used on a stand.

Tables a data structure that organises information into rows and columns.

1. The importance of business reports

 A business report aims to provide a critical analysis of how the business is
performing in all business functions of the organization.
 Business reports are used to guide decision making in the business.
 Business reports enable management to keep track of every activity done in each
department.
 It allows business owners and senior management the opportunity to investigate and
solve any identified issues.
 It enables senior management with information on how each department is doing.
 Business reports provide information for management that is timely and factual.

2. Presentations may be done verbally or non-verbally

 Verbal presentation means a presentation is delivered through speech or
 orally. Delivering effective verbal presentations involves what you say (verbal), how
you say it with your voice (vocal), and everything the audience can see about you
(visual). One could say that it is the verbal and visual equivalent of a written report.
 Non-verbal presentation is the transfer of information through the use of business
reports, handouts, charts, and posters with the support of visual aids.
 A business report is a key communication tool that provides an evaluation of a
particular issue relating to the performance of the business.
 A handout is a written summary of information dealt with in a presentation.
 Charts (referred to as newsprint) are used to record and visually display
 information that will engage and stimulate audience participation.
 Posters are usually large, printed sheets that contain pictures and posted in a
 public place.
3. Guidelines on writing an effective business report.
 Determine the scope of the report.
 Determine the target audience of the report.
 Determine how the report should be presented.
 Collect the necessary information.
 Prepare an overview of what the audience to know and details that should be
included in the report.
 Write concisely/briefly and only include important information.
 Use regular/basic language/simple grammar and clear short sentences.

3
BUSINESS STUDIES NOTES Chapter 13

 Use accurate/meaningful visual aids such as tables, graphs, drawings etc.

 Spend time revising the report and correct spelling mistakes and grammatical errors.
 Get someone to look at the report and to make suggestions for improvement.

4. The importance, advantages and disadvantages of graphs, diagrams,

symbols, pictures
 Graphs, diagrams and symbols/pictures are visual aids that help a reader, audience
see what you are talking about in a business report or when giving a presentation
 Graphs are more likely to be used to present date in a form that is easy for the
reader/audience to understand.
 Images and diagrams are typically used to explain concepts or theories.
4.1 The importance of graphs/diagrams, symbols, pictures (visual aids)
 Diagrammatic data presentation allows understanding of data more easily.
 It helps illustrate points to the reader/audience more easily and effectively.
 It also helps maintain the audience’s interest during the presentation.
 It engages the audiences with the presentation, making them remember it afterward.
 Diagrams are interesting, relevant, and support the presentation.
 Visual aids will effectively help convey the message.
 It helps to clarify the message and provides a point of reference for the mind.

4.2 Advantages and disadvantages of graphs, diagrams, symbols/pictures

(visual aids)
Advantages
 Graphical representation of information helps with understanding and identifying
patterns and trends in data.
 It enables quick analysis of large amounts of data at one time and assists in making
predictions and informed decisions.
 A lot of information can be displayed in an easy-to-understand format.
 Graphs do not require much explanation.
 Visual aids simplify the presentation when using complex information.
Disadvantages
 Too many diagrams and graphs can be confusing to the audience.
 Information can easily be manipulated, causing false interpretations.
 It may distract the audience from the speech as they pay more attention to the visual
aids.
 Preparation of graphs and diagrams is time-consuming.
5 Factors that must be considered when preparing for a verbal
presentation
Several aspects need to be considered when preparing for a verbal
presentation.
These are:
 Write down the purpose and main points of the presentation
 capturing the main aim in the introduction of the presentation
 Relevant and accurate presentation of the information
 Being fully conversant with the content of the presentation
 knowing the background of the audience to determine the appropriate visual aids

4
BUSINESS STUDIES NOTES Chapter 13

 Preparing a structure of the presentation with an introduction, body, and conclusion

 Summarizing the key facts in the conclusion, and showing that all aspects have been
addressed.
 Creating visual aids that will assist in getting the point across effectively
 Visiting the venue and ensuring that the equipment provided is working and suitable
 Considering the time frame for the presentation
 Practicing the presentation and note how long it takes
 Practicing in front of a person who will give an honest opinion of the presentation
 Preparing for the feedback session by anticipating possible questions.
 Information to be presented should be relevant and accurate.
 Prepare your support material to enhance your presentation.
 Prepare for the feedback session by anticipating possible questions/comments.
6. Types of visual aids
 Handouts/flyers/brochures.
 Interactive Whiteboard/ Smart board
 Posters/Signs/ Banners/ Flags
 Overhead projector.
 Flip Charts.
 Graphs.

7. Definition of visual aids

Visual aid Definition

Power Point/Data It is usually used for large groups
-Projects images from a computer to a screen
projector/Slides
-Shows summaries/ graphs/relationships/diagrams /process
steps etc.
-Can be used to create a mood through showing images and
videos
-Slides summarises information to increase understanding
Handouts -Use for small or large groups
-Used to give summary of the presentation and provides
follow-up activities
-Contains summary of the most important points
-They are given to the audience when they leave after the
presentation
-Provide details that cannot be included in the presentation
such as financial statement
-They provide structure and focus for the presentation
Interactive whiteboard -Can be used for small or large groups
-Can be used in brainstorming sessions to capture feedback
and ideas
-Can be linked to other whiteboards in other venues.
Use coded pens to write new information and feedback
Flyers/Brochures -Can be used for as effective marketing tool.
-Can be used for attracting people to an advert
Posters/signs/banners/Flags -Are used to communicate with potential customers

5
BUSINESS STUDIES NOTES Chapter 13

-Can be used as a marketing strategy

-They summarise information and discussions to stakeholders
-It can be decorated to attract attention to the information on it.
Charts/Flip Charts -A flip chart is a board with a paper attached at the top and
can be flipped over to present information sequentially
Charts can be used for a small group.
-Used to summarise discussions
-Record ideas and feedback given by the group
--it does not need electricity and therefore cheaper visual aid.
-Management may show the organisation’ s structure in the
form of an organisational chart.

8. The purpose of audio-visual aids

 They add value and clarity of the presentation.
 They make the presentation more interesting and memorable.
 Visual aids reinforce what the presenter has said.
 They create an atmosphere such as showing videos.
 Helps get the message across more easily.
 Keeps the audience engaged during the presentation.
 They add power and punch to the presentation.
 Enhance presentation.
 Create excitement.
 Help the audience to remember the presentation
9. Factors to consider when preparing/designing a presentation
The following factors must be considered when designing a presentation:
 Start with the text and heading
 Use large, clear fonts that are easy to read.
 Selecting a suitable background that would not distract from the content
 choosing images that may help to communicate the message
 Including graphics and images related to the content
 Adding special effects to support the message
 Creating hyperlinks to allow quick access to other files
 Keeping images and graphics simple
 Use outlines on slides and keep detailed explanations for the verbal presentation.
 Limit each slide to five or six lines.
 Make sure the grammar is correct.
 Proofread carefully.
 End with a closing message that the audience will remember.
 Be colourful and grab attention.
 Be meaningful and appropriate.
 Select a suitable background.
 Structuring information in a logical sequence
 Limiting the information on each slide.
 Avoid long sentences and keep it simple.
 Avoid fancy decorations.

6
BUSINESS STUDIES NOTES CHAPTER 14

BUSINESS STUDIES
GRADE 10
PAPER 2
TERM 13
CHAPTER 14
NOTES ON BUSINESS PLAN
REVISED NOTES
2025

TABLE OF CONTENTS
TOPICS PAGES
Terms and definitions 2
Exam guidelines for a business plan 2
Importance of a business plan 4
Challenges of the macro environment using PESTLE analysis 4
The components of a business plan 4-6
Purpose of the executive summary 6
Aspects that must be included in the executive summary 6
The vision, mission statements, goals, and objectives 6
The relationship between the structure of the business and 7
forms of ownership
Types of legal requirements of a business 7
Importance of a marketing plan and market research 7
Meaning of marketing mix with specific reference to the 7p’s 8-10
Strategies to overcome competition in the market 10
Financial plan including a balance sheet 11-12

This chapter consists of 12 pages.

1
CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT PURPOSES
Learners must be able to:
 Explain the importance of a business plan.
 Explain the challenges of the macro environment on a business using PESTLE
analysis.
 Name/State the components of a business plan.
 Explain the purpose of the executive summary
 Name/State aspects that must be included in the executive summary.
 Formulate the vision/mission statements and objectives of the envisaged business.
 Explain the relationship between the structure of the business and forms of
ownership.
 Name/State different types of legal requirements of a business.
 Compile a SWOT analysis for the envisaged business.
 Outline/Explain/Describe/Discuss the importance of a marketing plan and market
research.
 Explain the meaning of a marketing mix with specific reference to the 7p’s.
 Identify the 7p’s from given case studies/scenarios/statements/cartoon.
 Identify competitors by doing market research and explain the strategies that you will
use to overcome competition in the market.
 Formulate a financial plan for the envisaged business (including projected income
statement and balance sheet)

TERMS AND DEFINITIONS

TERMS DEFINITIONS
Business Plan A document that outlines all the important facts, processes,
and procedure of the business.
a document setting out a business’s future objectives and
strategies for achieving them.
Cover Page Indicates the name of the entrepreneur, name of the business,
the logo, address, and contact details of the business.
Index page The list of all sections of the business plan and page numbers
of each section.
Executive Summary The summary of the entire business plan.
short document or section of a document produced for
business purposes that is, summarises the entire business
plan.
Description of the The description of the product/service and the unique features
business of the business
Vision The long -term future goal of the business
Mission Statement The activities the business will do in order to achieve its goal
Legal Requirements Legal documentation such as licenses, permits and tax
regulations that must be complied with before the business
can start operating.

2
BUSINESS STUDIES NOTES CHAPTER 14

SWOT Analysis The analysis of the strengths, weaknesses, opportunities and

threats of the business.
Marketing Plan A strategy /plan of how the business is going to sell its
product/service
Market Research The action of gathering information about consumers’ needs
and preferences.
Financial analysis refers to the assessment of the viability and the profitability of
the business.
Environmental factors refers to external influences on the business that it has limited
no control over.
Marketing mix: a set of actions that the business uses to promote its brand.
Price the amount of money required as payment for goods.
Product an object that is manufactured for sale.
Promotion a method used to advertise the product.
Place location of the business.
People refers to employees as well as the target market.
Physical environment is the environment around the business.
Process the system used to deliver the product or service

3
1 The importance of a business plan
 A business plan helps entrepreneurs to set goals and objectives.
 It can be used to attract investors and prospective employees.
 Helps stakeholders to understand the role they play in the business
and encourages them to contribute effectively.
 Guides the entrepreneur on the viability of his/her business idea.
 It also helps the entrepreneur to identify problems that may arise and
helps management to take steps to avoid these problems.
 Helps the entrepreneur to identify problems that may arise and helps
management to take steps to avoid these problems.
 Improves business operations processes and practices.
 It evaluates the success of the business.
 It is essential when applying for financial assistance from investors or
lenders.
 Compels an entrepreneur to arrange his/her thoughts in a logical order.
 It gives direction once the business is operating.
 Helps the entrepreneur to face threats head-on and deal with them.

2. Challenges of the macro environment using PESTLE analysis

 Entrepreneurs should look at the factors that could have a negative impact
on their businesses.
 Businesses do not have control over the elements/features of the macro-
environment.
 Businesses can use PESTLE analysis scan the macro environment.
 A PESTLE analysis enables business to identify challenges that are posed
by the following external factors: physical, economic, social, technological,
legal and environmental factors.

4
 BUSINESS STUDIES NOTES CHAPTER 14

2. Components of a business plan

 Cover page
 Contents page/Index
 Executive summary
 Description of the business/Overview
 SWOT analysis
 Legal requirements of business
 Marketing plan
 Operational plan
 Financial plan
 Management plan
 Competitor analysis
3. Explanation of the components of a business plan

COMPONENT CONTENTS AND FEATURES

Cover page  It contains the following information:
o The name of the business
o Contact details of the owner(s)and address
o The logo of the business
 A copyright disclaimer to protect the contents of the plan
Contents  This page gives a title and page number of each subsection of the
page/Index plan.
 Allows the reader to find the information in the document
Executive  Detailed summary of the entire business plan
summary  It is written after the business plan has been completed, but
appears at the front to provide users with a brief overview before
reading the details
 The following aspects that must be included in the executive
summary:
o the form of business enterprise
o the main business activity
o information about the owner of the businesses
o how capital will be obtained.
Description of the  It is usually a short description of the product/service that the
business/Overview business will offer.
 It also describes the long-term objectives/mission/vision of the
business.
 It indicates whether the business is a sole trader partnership.
 Indicates the form of ownership.
 Description of the product /service which the business offer
 It also includes the legal requirements of the business
Legal  Provides legal requirements that the business need to comply
Requirements with before it can start operating.
NOTE: Refer to types of legal requirements below
SWOT analysis  An entrepreneur needs to carry out a SWOT analysis when
starting a business.

5
  It helps the entrepreneur build on what he/she does well to
address what is lacking, to minimize risks, and to take the
greatest possible advantage of chances for success.
 A SWOT analysis is a strategic plan used to help an
 organisations identify major strengths and weaknesses of the
business.
 It also makes the business aware of opportunities and threats
in its external environment.
 A SWOT analysis is an indication that research was
conducted to support the establishment of a business.
 A SWOT analysis is an indication that research was
conducted to support the establishment of a business.
Marketing plan  This is the most important component of the business plan.
 It gives details of the 7Ps of marketing
 This plan also describes the target market, customers, and
competition.
Operational plan  Includes where the business will be located.
 Describes the daily operation of the business.
 Includes a description of a product, how and where it will be
manufactured.
 Provides details of the equipment and suppliers
Financial plan  Records details of how much capital is required and how it
will be raised.
 Contains projected statements of profit, loss and cash flow
Management plan  Considers the short and long-term business strategies.
 Outlines who will oversee running the business as well as
skills of the entrepreneur and other in the business.
 Discusses the hierarchy and roles of the employees
Competitor  Description of competitors in the market and their products
analysis  Details of competitors’ marketing strategy and its effect on a
proposed business

4. Executive summary
5. Purpose of the executive summary
 It is included to satisfy those who do not have time to go through the entire
plan in detail.
 Most lenders and investors read it first before the entire business plan.
 It gives readers an idea of what is contained in the business plan.

6. Aspects that must be included in the executive summary

 The form of business enterprise
 The main business activity
 Information about the owner of the businesses
 They way in which capital will be obtained
The vision/mission statements/goals and objectives
The vision statement
 A statement, which describes how the business will achieve its purpose.
6
BUSINESS STUDIES NOTES CHAPTER 14

 The vision statement is the long-term goal of how entrepreneurs see their
business in future and how they want to grow.
 It addresses profit, growth, purpose and stability

The mission statement

 A statement, which describes the purpose of the business and explains why
the business exists.
 The mission statement addresses how entrepreneurs hope to achieve their
vision.
 It focuses on a business operation and it also specific and measurable
 The short-term objectives are more specific stepping-stones to reach short-
term goals in order to achieve the long-term goals.

Goals and objectives

 The long-term objectives are formulated to provide direction for the company
to achieve the vision.
 It is also specific and measurable just like the mission statement.

7. The relationship between the structure of the business and forms of

ownership
The business structure should have a description of the following aspects:
 How many people the business intends to employ.
 Management and staff e.g. their qualifications, experience, job description
and remuneration
 Administration and record keeping
 Staff policies regarding working hours, fringe benefits, overtime, sick leave
and medical aid.
 The structure of the business should include the type of ownership such as
sole trader/partnership/close corporation/ private company/public company.
 The form of ownership will determine the following:
o The reason for the form of ownership
o Legal requirements of the business
o Products and services offered.
o Size of the business
o Number of owners required.
o How much control the owners want.
o Legal protection

7
8. Different types of legal requirements of a business
 A business needs to be registered before it can obtain finance or start doing
transactions.
 A business needs to comply with the following types of legal requirements:
o Trading Licenses and permits to operate legally.
o Taxation regulations
o International trading /Exporting & Importing requirements/ Exchange
rates.
o Registration fees.
o Registration.
o The Basic conditions of Employment Act. (BCEA)(No.75 of 1997)
o The Labour Relations Act (LRA) (No. 66 of 1995)
o The National Credit Act (NCA) (No. 34 of 2005)
o The Environmental Conservation Act (No. 73 of 1989)
o Patents and copyrights

9. Importance of a marketing plan and market research

Importance of a marketing plan
 It is a description of the market analysis including the target market.
 It includes the analysis of the target market, customer, and competition.
 Explains the marketing mix and provides the marketing strategy of the
business.
 Guides businesses on how to advertise their products/services.
 Describes the proposed prices of goods and services.

8
BUSINESS STUDIES NOTES CHAPTER 14

10. Importance of a market research

 It is a process to understand more about customers’ needs.
 A marketing plan helps businesses to promote products and services.
 The target market refers to the people who are likely to buy the product or
service offered by the business.
 The business must conduct market research to know about the following
factors of the target market: age group, gender, personality, income, and
education.
 The methods of conducting market research include surveys, interview, and
questionnaires.
 The results of the market research are important as it will indicate whether
the target market shows interest in the goods and services the proposed
business aims to offer.

11 The Meaning of marketing mix with specific reference to the 7Ps

 The marketing plan can be explained by using seven elements.
 There are four main elements and three additional elements.
 A marketing mix is a combination of product, price, place, people, promotion,
process, and physical environment.
 The above-mentioned aspects are usually referred to as 7ps.
 The reason for extending the 4ps to the 7ps is the growth of the service
industry.
 Once the target market has been identified, the business must work out the
marketing mix that best satisfies the needs of the target market.

Product/Service
 It is a description of the product, appearance, and usage that is available to
customers.
 It can be a picture, drawing or photograph of what the products look like
 The manufacturing process used to make the product.
 The appearance of the product/services must be different from competitors’
products.
 The packaging of the product should project and preserve the product.

Price
 The price of a product refers to the amount of money that must be paid by the
consumer to obtain the product.
 The proposed business must include its pricing policy in the business plan.
 The pricing policy describes the way in which the price is used to attract
customers.
 The price needs to cover all costs and must appeal to the target market.
 It must be affordable for the consumers.
 Good access to the product/service will increase sales.

9
 Cash or credit facilities may affect the customer’s attitude to the price.
 Customers may be aware of other sellers who are selling the same products
for less.

Place/Distribution
 The location where goods and services are sold.
 Place where consumers can access the goods or service.
 The business can sell the product directly to customers itself or can market
the product through other businesses.
 Businesses may use the following channels of distribution:
 Direct selling: manufacturer sell directly to consumers.
 Door to door selling businesses employ salespeople to sell door to door and
they carry few stocks with them.
o Mail Order: Large businesses print catalogues that can be used by
consumers to order of their choice. Small businesses advertise in local
paper inviting consumers to buy direct from the business.
o Telephone sales: the business employ people who phone members of the
public and try to persuade them to buy their goods.
o Internet/online shopping: businesses use systems on the internet to allow
customers to order their shopping online and have it delivered to the door
Promotion
 Refers to how the business is going to make its target market aware of its
product or service.
 A promotion should communicate the benefits of the product to customers.
 The proposed business must include detail about its promotion policy.
 The promotion policy must describe how sales of products will be promoted.
 Outlines the following methods of advertisements:
o Advertising through the radio, magazines, press, television etc.
o Special offers
o Trial products such as free sample for testing
o Free gifts
o Direct mailing
o Online marketing
o Social media
o Public relations
o Brand awareness
People
 Refer to employees, management, directors, and shareholder/All people
involved in selling the products.
 The business plan must include detailed information of people that will be
involved in the proposed business and in making a business.
 They can affect the business with their knowledge, skills, and attitudes.

10
BUSINESS STUDIES NOTES CHAPTER 14

Process
 Refers to processes that are designed and implemented to ensure a pleasant
shopping experience.
 Describes the way in which the marketing and sales processes are carried
out.
 The process of giving a service and the behavior of those delivering the
service are important for customer approval of staff to customers keep
customers happy.
 Examples of systems and processes that will ensure a good customer
experience:
o Systems and processes to ensure that consumers do not wait long in
queues/for goods to be delivered.
o Systems and processes to make sure telephonic messages are dealt with
and delivered to the right person.
o Systems and processes to ensure that e-mailed messages are read.

Physical environment
 Refers to the environment where goods and services are sold/service
rendered.
 It includes the appearance of the building and the uniforms of employees.
 The physical environment must be appropriate and make the customer feel
comfortable.
 Clean and functional facilities attract and retain customers.
 Well-decorated reception also helps to reassure customers that the business
offers best services and values their customers.

Strategies to overcome competition in the market

 The business should use the following strategies to overcome competition in
the market:
o Sell quality products and services.
o Offer after-sales services.
o Charge reasonable prices.
o Conduct intensive marketing campaigns.
o Make use of clever advertising slogans
o Make your product unique.
o Provide attractive product displays.

11
 Financial plan including a balance sheet
 It is a detailed description of the entrepreneur’s financial contribution, the
funding requirements, and projected cash flow statements for a three-year
period.
 The purpose of financial analysis is to project/predict the profitability of the
proposed business and to project how long it will take before the business
starts to show a profit.
 A Financial plan includes the following elements.
ELEMENTS DESCRIPTION
Budget  A budget is an estimation of revenue and expenses over
specified future period.
 Monthly indication of projected flow of cash in and out of the
business
 Helps the owner to control the spending money by
comparing the actual income and expenditure.
Cash flow  Cash flows are the net amount of cash and cash
statements over a equivalents being transferred into and out of a business's
three-year period accounts.
 Helps the owner to identify operational difficulties the
business might experience and any need for more finance
Income statement  A monthly account of sales and expense
 It shows actual profits and/or losses.
Break-even point  A point at which profits are equal to expenses/ A business
does not show profit nor loss.
 Shows how much the business sold to cover all expenses
before making a profit
Balance sheet  Includes assets on one side and liabilities on the other.
 A list of all business assets, liabilities, and owners ‘Equity at
a specific point in time
 Assets include land, buildings, equipment, vehicles, money
in bank account.
 Liabilities are monies owed to other people or businesses
such as bank loans, buying on credit, bank overdrafts etc.
 Owners’ equity-is the difference between the total liabilities
and total assets.

12
BUSINESS STUDIES GRADE 10 RELATIONSHIP AND TEAM PERFORMANCE

BUSINESS STUDIES

GRADE 10

PAPER 2

TERM 4

CHAPTER 15

RELATIONSHIP AND TEAM PERFORMANCE

REVISED NOTES 2025

TABLE OF CONTENTS

TOPICS PAGES
Exam guidelines for presentation of business information 2
Terms and definitions 2-3
Introduction 3

The meaning of business objectives 3

Examples of Business objectives 3-4

The benefits of teamwork 4
Recommend/Suggest ways in which businesses can create an 5
environment that enables teams to work effectively.

Different hierarchies and management levels 5

Meaning of interpersonal relationship 6

The importance of each individual in achieving business objectives 6
Types of interpersonal working relationships 6

Factors that can influence team relationships 7

Ways to promote healthy interpersonal relationships in the 8
workplace
Ways in which businesses can address factors that influence team
relationships
Criteria for successful team performance 8-10
This chapter consists of 10 pages.

1
 BUSINESS STUDIES GRADE 10 RELATIONSHIP AND TEAM PERFORMANCE

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT

PURPOSES

Learners must be able to:

 Discuss/Explain ways in which people need to work together to accomplish

business objectives
 Discuss/Explain factors that can influence team relationships(for example,
prejudice, beliefs, values and diversity)
 List/Understand business objectives(for example, profit, productivity, service)
 Explain/Define interpersonal relationships in the workplace (for example, the
different management levels, and the importance of everyone in achieving
business objectives)
 Discuss/Define personal beliefs and values and how the influence business
relationships (for example, prejudice, discrimination, equity and diversity)
 List/Discuss the criteria for successful and collaborative team performance in a
business context and assess a team against these criteria
 Explain hoe team members can work in a team to accomplish business
objectives (for example setting clear objectives and agreed goals, openness,
mutual respect, support and mutual trust, members committing to achieving
mutual goals, sound inter-team relations, individual development opportunities
and reviewing the team processes).

TERMS AND DEFINITIONS

TERMS DEFINITIONS

Team Consists of two or more people who work together in a business or organization to
achieve a common goal.

Relationship The connection between employees, colleagues, customers and suppliers.

Prejudice A preconceived opinion or judgement of something or someone. Prejudice is

normally not based on reason or fact, Prejudice can lead to discrimination. Some
types of prejudice include racism, xenophobia, sexism and religious prejudice.

Beliefs A feeling of being sure that a person or thing exists or is true or trustworthy.

Values The beliefs of being sure that a person or thing exists or is true or trustworthy
Diversity What makes people unique and includes different cultures, backgrounds, beliefs,
gender, language and life experiences.
Productivity A way to measure efficiency.
Service An activity that is delivered by the business to another party like a customer, or
another department.
Interpersonal The relationship between two employees working at the same place.
relationships
Discrimination Certain prejudice that occur when an employee is treated unfairly because of race,
gender, sexuality, religion or disability.

2
 BUSINESS STUDIES GRADE 10 RELATIONSHIP AND TEAM PERFORMANCE

Equity The practice of being fair or impartial in the workplace. Equity is achieved when
there is no discrimination.
Profit The financial advantage or benefit.

Management Refers to a line of demarcation between various managerial positions in an

levels organization.
Collaboration The action of working with someone to produce something.

Openness The quality of being relatively free from obstruction or relatively unoccupied.

Mutual Respect Underpins good relationships. To have respect for a person involves a fundamental
belief in their right to exist, to be heard, and to have the same opportunities as
everyone else.
Mutual trust When employees enjoy a culture of honesty and psychological safety

Introduction
Teamwork is when two or more people come together to reach a common goal.
Successful teams communicate frequently and openly, team members can engage
with one another, and they are flexible to ensure the overall success of the team.

Teamwork can be natural for some people, but difficult for others. Poor relationships
amongst team members can be characterized by emotional and behavioral actions
that can create distress, anger, and withdrawal. This can create a divided team,
which in turn can lead to poorer team performance.

In this topic we will learn about the benefits of teamwork and the importance of
everyone on a team in achieving business objectives. We will also learn about some
of the factors that can influence team relationships.

1 The meaning of business objectives

 A business objective explains in detail the steps they plan to take in order to
achieve a specific goal. Types of business objectives: profit, productivity,
service.
 A good business objective focuses on profit, productivity and service.
 Good business objectives are also aligned to the vision, mission and purpose
of the business.

Examples of Business objectives

 Improve customer service
- Decrease our customer complaints by 25% in the next six months.
- Good customer service will help us to retain customers and generate
continued/sustained revenue.

3
BUSINESS STUDIES GRADE 10 RELATIONSHIP AND TEAM PERFORMANCE

 Business survival
- Grow our business by attracting and maintaining loyal customers during
these difficult first three years without compromising quality.

 Increase market share

- Increase our market share by 5% in the next six months we will do this by
launching a digital marketing campaign by end of the month.

 Increase profitability
- Maximize profits by increasing our profitability by 2% in the next twelve
months.

 Employee retention and human resources

- We value our team and want to avoid a high employee turnover as that will
have a negative impact on productivity.

 Social responsibility
- Use environmentally friendly material to produce our products and
packaging. Become a “green business” by December 2030.

The benefits of teamwork

Teamwork is important for achieving business objectives. Teamwork can be
described as a group of individuals working together efficiently and effectively
towards a common goal.

 The members of the team learn from each other and grow.
 The team achieve more than the individual.
 Good teamwork helps business to achieve its objectives.
 Gives employees more control over their jobs.
 The performance of all team members improves because they support each
other’s skills.
 Teamwork encourages workers to increase their range of skills to increase
productivity.
 Teamwork improves effective communication.
 Teamwork can create strong relationships among employees, which in turn
leads to better communication within a team.
 Teamwork promotes healthy risk-taking/ working as a team allows team
members to take more risks, because they have the support of the team in case
of failure.
 Teamwork promotes a wider sense of ownership when working together to
achieve business objectives.
 The team members feel connected to the company which builds loyalty towards
the company and individual job satisfaction.

4
 BUSINESS STUDIES GRADE 10 RELATIONSHIP AND TEAM PERFORMANCE

 Teamwork promotes creativity and learning creativity thrives when people work
together as team.
 Teamwork creates synergy to maximize energy levels of employees.

Recommend/Suggest ways in which businesses can create an

environment that enables teams to work effectively.
Great results can be achieved through teamwork, so it is important that a business
creates an environment that enables teams to work effectively.

 Ensure the team clearly understands the business objectives.

 Set ground rules for the team.
 Establish team values and goals.
 Consider each employee’s ideas as valuable.
 Be clear and specific when communicating to prevent confusion.
 Encourage listening and brainstorming.
 Encourage trust, respect, and cooperation among members of the team.
 Encourage team members to share information and resources effectively.
 Delegate problem-solving tasks to the team.
 Establish a method for arriving at a consensus to prevent conflict.
 Be aware of employees’ unspoken feelings.

Different hierarchies and management levels

Hierarchies of
management levels

Top management First line

Middle Management management
Chairman
General Manager Supervisor
Vice-president
Regional manager Office manager
Board of directors
Team leader
Chief Executive Officer (CEO)

5
BUSINESS STUDIES GRADE 10 RELATIONSHIP AND TEAM PERFORMANCE

2 Meaning of interpersonal relationship

Interpersonal relationships in the workplace refer to a strong association among
individuals working together.

Interpersonal relationships in the workplace allow team members to share a special

relationship Team members build up a relationship of trust, openness understanding
and effective communication.

Everyone plays a role in achieving the business objectives.

The importance of each individual in achieving business objectives

The quality of interpersonal relationships impacts on the productivity of teams.
If employees are skilled and knowledgeable, teams will be strong and efficient.
Great results can be achieved through teamwork, so it is important that a business creates
an environment that enables teams to work effectively. Usually, employees will take pride in
their work if they are aware of how their efforts impact on achieving the business objectives.
Celebrating milestones and praising team members, helps employees feel excited to be
part of the team. This in turn, can lead to higher productivity.

Types of interpersonal working relationships

Great results can be achieved through teamwork and effective interpersonal relationships. It
is important that a business creates an environment that enables teams to work effectively.
Here are some examples of the different types on interpersonal relationship that can occur in
the workplace.

Peer Peer relationships are the relationships between employees

relationships that are on the same level at the workplace. Employees are
equal and the relationships are based on mutual respect.

Group Group relationships are the relationships between members of

relationships a team or group. Healthy group relationships will ensure good
results, whereas poor relationships between group members
may result in conflict.

Authority Authority relationships are relationships between a manager

relationships and subordinate. This relationship is based on mutual respect.

External External relationships in a workplace refer to the relationships

relationships with people outside of the company or business. These types of
relationships are usually based on service delivery or
outsourcing.

6
BUSINESS STUDIES GRADE 10 RELATIONSHIP AND TEAM PERFORMANCE

Factors that can influence team relationships

There are several factors that can influence team relationships. In this section we will
look at some of these factors.
Ways in which
Factors that can influence Team relationships business can address
factors

Prejudice Prejudice is a negative attitude  Teambuilding

towards an individual. This attitude is activities among staff
usually based on the differences members.
between individuals who may belong  Awareness of cross-
to a particular social group. cultural differences.
For example, prejudice is common
against people who are members of
an unfamiliar cultural group.

Discrimination Discrimination is negative action  Human relation policy

towards an individual because of should include that
their belonging to a certain gender, discrimination will not
race, religion, or sexual orientation be allowed.
 Procedure to report
discrimination in the
business

Diversity Diversity is the practice of including  Adhere to policy of

or involving people from a range of equal opportunities
different social and ethnic when appointing new
backgrounds, and of different staff.
genders and sexual orientations.  Teambuilding
activities amongst
staff members.

Belief Belief is a conviction that we  Awareness of moral

generally accept to be true without values and integrity in
evidence or proof. Beliefs are related the business.
to culture and religion. Beliefs
influence our thoughts and attitudes,
and we must be aware of them.

Equity  Equity in the workplace to  Human resource

respectful and dignified treatment policy should promote
of every person in the business. equity through
 Equity encourages diversity in appointment,
decision making/allows job promotion and
satisfaction and employee allocation of
engagement. resources.

7
BUSINESS STUDIES GRADE 10 RELATIONSHIP AND TEAM PERFORMANCE

Ways to promote healthy interpersonal relationships in the

workplace
Having empathy for others is an important skill employees need to build healthy
interpersonal relationships in the workplace. Empathy helps team members to
consider the thoughts, feelings and needs of others. Relying on other people builds
trust and teamwork establishes strong relationships. Despite occasional
disagreements, an effective team enjoys working and shares a strong bond.

Ways in which businesses can address factors that influence team

relationships
A business can create an environment that enables teams to work effectively:

 The business can make sure that employees understand and believe in business
objectives.
 The business should listen to employees when they share ideas.
 Important decisions should be taken through a process of teamwork.
 Good teamwork needs to be awarded and mistake must be viewed as
opportunities to learn and grow.
 Being clear and specific when communicating to prevent confusion.
 Encouraging trust, respect, and cooperation among members of the team.
 Encouraging team members to share information and resources effectively.
 Delegating problem-solving tasks to the team.
 Establishing a method for arriving at a consensus to prevent conflict.

Criteria for successful and collaborative team performance in a

business
Working in a team to achieve business objectives requires clear objectives,
openness, mutual respect, support, and mutual trust. Team members need to be
committed to the business.

In order to improve teamwork, regular review of the team processes needs to be

done.

Criteria for successful team performance

Team members must know what they want to achieve.

Clear objectives and agreed goals

 Team members must agree on goals and set clear objectives.
 Team members who agree to the goals will be committed.
 Team members will show more commitment if the objectives are understood
clearly. Teams need to focus on the agreed goals essential for success.
8
BUSINESS STUDIES GRADE 10 RELATIONSHIP AND TEAM PERFORMANCE

 Team members should know what they want to achieve.

 Clear goals for direction.

Interpersonal attitudes and behavior

 Team members have a positive attitude of support and motivation towards
each other.
 Good interpersonal relationships will ensure job satisfaction and, in this way,
increase the productivity of the team.
 Team members are committed and enthusiastic towards achieving a common
goal.
 Team leaders give credit to members for positive contributions

Shared values and mutual respect

 Shows respect for the knowledge or skills of other members.
 Perform team tasks with integrity meeting team deadlines with necessary
commitment to team goals.
 Shows loyalty, respect and trust towards team members despite differences.
 Perform team tasks with integrity/pursuing responsibility/ meeting team
deadlines with necessary commitment to team goals.

Communication
 A clear set of processes and procedures for teamwork ensures that every team
member understands their role.
 Efficient communication between members may result in quick decisions.
 Quality feedback from team members will improve the morale of the team.
 Open discussions between team members will lead to effective problem solving.
 Continuous review of the team progress ensures that team members can
correct/minimize mistakes and can act pro-actively to ensure that goals are
achieved.

Co-operation/Collaboration
 Clearly defined and realistic goals will ensure all team members know exactly
what is expected of them.
 All team members should actively participate in the decision-making process.
 Show a willingness to cooperate as a unit to achieve team objectives.
 Co-operate with management to achieve team/ business objectives.
 Agree on how to get a task done effectively and without wasting time on conflict
resolution
 A balanced composition of skills, knowledge, experience and expertise ensures
that teams achieve their objectives.

9
BUSINESS STUDIES GRADE 10 RELATIONSHIP AND TEAM PERFORMANCE

Mutual respect, support, trust

 Team members must not fear being laughed at or rejected for expressing
concern. This will encourage participation.
 Team members should consult with all group members.
 Team members should learn from one another.
 Team members must support and trust one another to be an effective team.
 Reliability, doing what you say you will and taking risks with others help to build
mutual trust.

10