NATIONAL

SENIOR CERTIFICATE

GRADE 12

JUNE 2016

BUSINESS STUDIES

MARKS: 300

TIME: 3 hours

*BUSTE*

This question paper consists of 15 pages.

2 BUSINESS STUDIES (EC/JUNE 2016)

INSTRUCTIONS AND INFORMATION

Read the following instructions carefully before answering the questions.

1. This question paper consists of THREE sections and covers all main topics of
Term 1 and 2.

SECTION A: COMPULSORY
SECTION B: Consists of FIVE questions.
Answer any THREE of the five questions in this section.

SECTION C: Consists of FOUR questions.

Answer any TWO of the four questions in this section.

2. Read the instructions for each question carefully and take particular note of
what is required.

3. Number the answers correctly according to the numbering system used in this
question paper. No marks will be awarded for answers that are numbered
incorrectly.

4. Except where other instructions are given, answers must be in FULL

SENTENCES.

5. Use the mark allocation and nature of each question to determine the length
and depth of an answer.

6. Use the table below as a guide for mark and time allocation when answering
each question.

SECTION QUESTION MARKS TIME

A Objective-type question 1 40 30 minutes
COMPULSORY

B FIVE direct/indirect-type 2 60 30 minutes

questions, CHOICE 3 60 30 minutes
(Answer any THREE.)
4 60 30 minutes
5 60 30 minutes
6 60 30 minutes

C FOUR essay-type questions, 7 40 30 minutes

CHOICE (Answer any TWO.) 8 40 30 minutes
9 40 30 minutes
10 40

300 180 minutes

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

8. You may use a non-programmable calculator.

9. Write neatly and legibly.

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(EC/JUNE 2016) BUSINESS STUDIES 3

SECTION A (COMPULSORY)

QUESTION 1

1.1 Various options are provided as possible answers to the following

questions. Choose the answer and write only the letter (A–D) next to the
question number (1.1.1–1.1.10) in the ANSWER BOOK, for example
1.1.11 B.

1.1.1 The first step in the strategy development process is to ...

A assess a business’s position in a market by using industry

analysis tools.
B formulate a strategy.
C implement a strategy.
D evaluate a strategy.

1.1.2 The ability to influence others based on personal charm and

inspiration is known as the … leadership style.

A free-reign
B autocratic
C charismatic
D super

1.1.3 According to the Basic Conditions of Employment Act, full-time

employees are entitled to ... days of paid family responsibility leave
during each annual leave cycle.

A 3
B 6
C 9
D 12

1.1.4 A problem-solving technique that does not require participants to

be in the same place:

A Delphi
B Creativity
C Empty chair
D Force-field

1.1.5. If Sipho Gumede was dismissed because he arrived late for work
often, he was dismissed on grounds of …

A incapacity.
B operational reasons.
C retrenchment.
D misconduct.

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4 BUSINESS STUDIES (EC/JUNE 2016)

1.1.6. Which ONE of the following is an example of a social responsibility

programme implemented by a business?

A SWOT analysis
B King's Code
C General management.
D Problem-solving techniques

1.1.7 Who is usually responsible for the recruitment process when a new
marketing assistant is required in a business?

A Shareholders
B Human Resource manager
C Marketing director
D Managing director

1.1.8 Which ONE of the following could be considered to be an unethical

business practice?

A Evading tax
B Payment of fair salaries and wages
C Payment of VAT on time
D Equal treatment of employees

1.1.9 …. can be regarded as the key to performance improvement.

A Clear rules and regulations for discipline

. B Higher salaries and wages
C Motivation
D Negotiations

1.1.10 The best way to resolve conflict in the workplace is to ...

. A transfer the affected worker.

B ignore the affected worker.
C address the causes of conflict and solve them.
D retrench the affected worker.
(10 x 2) (20)

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(EC/JUNE 2016) BUSINESS STUDIES 5

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

Retrenchment; Tertiary; Product development; Resignation; Secondary;

Economic growth; Positive; Strict rules; Charisma; Negative; No rules

1.2.1 ... is when new products are introduced to replace the slow
unproductive product lines.

1.2.2 ... is when an employment contract is voluntary terminated by the

employee.

1.2.3 A ... attitude is a barrier to creative thinking in the workplace.

1.2.4 The bureaucratic leadership style is characterised by ...

1.2.5 North Bank operates in the ... sector. (5 x 2) (10)

1.3 Choose an item/abbreviation from COLUMN B that matches a description

in COLUMN A. Write only the letter (A–G) next to the question number
(1.3.1–1.3.5) in the ANSWER BOOK, for example 1.3.6 H.

COLUMN A COLUMN B
1.3.1 deals with employer/employee A Quality performance
grievances

1.3.2 ideas that are original and B Insubordination

useful to solve business
challenges

1.3.3 resistance to/or defiance of C Liquidation

authority

1.3.4 the process of converting all D CCMA

business assets into cash to
pay creditors

1.3.5 assessment and analysis of E Creative thinking

processes, goods and services
to measure business
performance
F Quality control

G Skills Development
(5 x 2) (10)

TOTAL SECTION A: 40

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6 BUSINESS STUDIES (EC/JUNE 2016)

SECTION B

Answer ANY THREE questions in this section.

NOTE: Clearly indicate the QUESTION NUMBER of each question that you
choose. The answer to EACH question must start on a NEW page,
for example QUESTION 2 on a NEW page, QUESTION 3 on a NEW
page, et cetera.

QUESTION 2: BUSINESS ENVIRONMENT

2.1 Identify the type of business strategy that applies to each of the following
. statements:

2.1.1 Big Four Air will expand with the purchase of Blue Sky Air.

2.1.2 Ulundi Wholesaler offers their meat at lower prices per kilogram
than Meat Stores.

2.1.3 Global Platinum has implemented massive job cuts as commodity

prices have tumbled.

2.1.4 ProCool, a juice manufacturer, has recently acquired two hectares

of farm land in Ceres.

2.1.5 Mega Foods has established a new distribution centre in St Gallen,

Switzerland.
(5 x 2) (10)

2.2 Read the article below and answer the questions that follow.

SDA TO THE RESCUE!!

Four years after the first democratic election was held the Skills
Development Act (SDA), (Act 97 of 1998) was implemented. The Act aims
at promoting skills development by increasing investment in education and
training. It called on all employers to play a proactive role in building skills
inside and outside the workplace, while encouraging workers to participate
in training programmes.

The SDA also redirected the focus to obtaining a return on investment and
ensuring quality education and training. Finally, it emphasised the need to
improve the employment prospects of previously disadvantaged groups.

[Adapted from City Press, 29/09/2013]

2.2.1 Quote from the article FOUR aims of the Skills Development Act. (4)

2.2.2 Evaluate the impact of the SDA on employees. (10)

2.2.3 Recommend THREE ways in which the business can comply with (6)
this Act.

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(EC/JUNE 2016) BUSINESS STUDIES 7

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

MADIBA BAY INVESTMENT (PTY) LTD (MBI)

Dudu and David are employees in the same department at Madiba Bay
Investment (Pty) Ltd. They do the same work, as cleaners, but David
earns more than Dudu. She is unhappy and demands to earn the same
salary as David. She feels that MBI is not complying with the Employment
Equity Act (EEA), 1998 (Act 55 of 1998).

2.3.1 Explain the main purpose of the Employment Equity Act 1998 with
the specific reference to Dudu’s claim of Madiba Bay Investment
(Pty) Ltd non-compliance with the Act. (8)

2.3.2 Identify any THREE business actions that can be regarded as

discriminatory by the EEA. (6)

2.4 Strategic management is the process of formulating, implementing and

monitoring business strategies in response to the challenges of the macro
environment. Describe the strategic management process that can be
applied by businesses. (8)

2.5 Read the article below and develop a SWOT analysis for Solathiso
Sotshongaye.

CREATE YOUR OWN JOB: ONE BRICK AT A TIME

Solathiso Sotshongaye graduated, with a degree in Public Management

from the University of Technology.

A year later he could still not find work and looked around his
neighbourhood in Flagstaff in the Eastern Cape and found something it
lacked. There are lots of construction taking place in the area, but most
people travelled, 250 km to Port Shepstone, for concrete blocks. He
combined his management skills with his passion for business and started
his own brick-making business.

The first hurdle he had to overcome was his lack of capital, because finding
funding for a new business is very hard. He started on a small scale by
using his own savings of R30 000.

After receiving R1,8 million in funding from the Industrial Development

Corporation (IDC) he recently started supplying big hardware stores. He
has also acquired new machinery and hired six young people. In future he
wants to aim at empowering more young people.

[Adapted from City Press, 14 February 2016] (8)

[60]

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8 BUSINESS STUDIES (EC/JUNE 2016)

QUESTION 3: BUSINESS VENTURES (MANAGEMENT AND LEADERSHIP)

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

FAST EXPRESS LTD

Mandla works at, Fast Express Ltd, as a truck driver. He has a code 10
driver’s licence and shows a lot of interest in his job. After three months at
the business, Thuli, the owner of the business, discussed with Mandla his
future at the business. She helped him to set his goals and looked at ways
to achieve them. She gave him more responsibilities and encouraged him
to develop additional driving skills.

3.1.1 Thuli is a typical example of a manager. Quote from the scenario

above FOUR reasons to support this statement. (4)

3.1.2 Distinguish between leadership and management. (12)

3.2 Discuss the effect of personal attitude in successful leadership. (12)

3.3 Identify the type of leadership style applied in each of following statements:

3.3.1 Leaders often identify a need for change, inspire and motivate
team members to perform their duties.

3.3.2 Leadership allows subordinates to handle conflicts by allowing

them to find their own solutions to problems.

3.3.3 Different leadership qualities will be effective in different situations.

3.3.4 Administer administration through enforcing excessive and often

unnecessary rules.

3.3.5 Value the opinions of employees, but remains committed to the

task.
(5 x 2) (10)

3.4 Tabulate the differences between autocratic and democratic leadership

styles. (12)

3.5 Analyse the application of the bureaucratic leadership style. (10)

[60]

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(EC/JUNE 2016) BUSINESS STUDIES 9

QUESTION 4: BUSINESS ROLES

4.1 Read the article below and answer the questions that follow.

CELL C'S CAMPAIGN MISLEADING

The Advertising Standards Authority (ASA) has found that mobile

operator/service provider Cell C's 4G campaign is misleading and
dishonest.

‘The complainants, in essence, reported that the respondent’s “4G” logo is

dishonest and misleading as consumers could mistake it to be a reference
to the 4G standard of network.' The ASA said in its ruling that: 'Consumers
have become accustomed to seeing the term “3G” in connection with
broadband-capable devices in South Africa, which always denotes speed
and connectivity capability.'

Cell C has been driving its connectivity as 'speed cover 4G' in several cities,
including Port Elizabeth, Bloemfontein, East London and Cape Town.

[Adapted from Marketing Media South Africa, Newsletter, 11 October 2010]

4.1.1 Describe what is meant by ‘unethical advertising’. (2)

4.1.2 Use information from the article above to explain why Cell C's
advertisement is unethical. (4)

4.1.3 Recommend FOUR ways in which unethical advertisements could

be addressed. (8)

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

MONDELEZ INTERNATIONAL

Mondelez International, a leading global snacking powerhouse, believes

that it has a critical role to play in the sustainability of our planet.

To support this principle, they launched a R37 million well-being programme

(Health in Action) that will benefit 75 000 pupils in more than 100 schools in
the Eastern Cape and Gauteng.

[Adapted from The Herald, 30 October 2015]

4.2.1 Define the term ‘sustainability’. (2)

4.2.2 Discuss the link between triple bottom line and social responsibility
of a business. (6)

4.2.3 Analyse FOUR benefits that communities may enjoy through

corporate social investment (CSI) projects. (12)

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10 BUSINESS STUDIES (EC/JUNE 2016)

4.3 Read the scenario below and answer the question that follows.

XARO LTD

The vision of Xaro Ltd, one of the world’s largest diversified mining groups,
is inspired by a statement made by the company’s founder. He said, “The
aim of this group have always been to make a profit and a permanent
contribution to the well-being of our employees.”

4.3.1 Advise Xaro Ltd on how to contribute towards the well-being of

their employees. (10)

4.4 Complete the table below by giving the meaning of respect and dignity and
their respective implication on businesses.

Meaning Implication on
businesses

Respect 4.4.1 4.4.2

Dignity 4.4.3 4.4.4
(4 x 2) (8)

4.5 Recommend FOUR ways in which a business can create an environment

that promotes creative thinking. (8)
[60]

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(EC/JUNE 2016) BUSINESS STUDIES 11

QUESTION 5: BUSINESS OPERATION

5.1 Study the advertisement below and answer the questions that follow.

VACANCY: SENIOR ADMIN CLERK

We have a position available for an admin clerk. Only candidates with at

least two years administration experience and traceable references need to
apply.
The successful applicant:
 Must have numerical skills
 Must be computer literate
 Must be able to work under pressure
Visit our website/weekly newspaper for full details of our vacancies:
www.broad.web.co.za
Please fax your C.V. to Broad Enterprise @ 0861 455 6785
Closing date: 31 May 2016
Only applicants on the short list will be contacted for interviews.

5.1.1 Identify the type of recruitment used by Broad Enterprise. Motivate (4)
your answer.

5.1.2 Discuss FOUR advantages of this type of recruitment. (8)

5.1.3 Differentiate between job description and job specification. (8)

5.2 Discuss FOUR reasons why an employment contract may be terminated. (12)

5.3 Read the scenario below and answer the questions that follows

KUYASA GENERAL DEALER

Kuyasa General Dealer buys bread directly from Woodlands Bakery in

Seaview, outside Port Elizabeth.

One day after Woodlands Bakery deliveries, Mr Ben, the owner of Kuyasa
General Dealer discovers that the bread was stale. Kuyasa General Dealer
immediately informed Woodlands Bakery about the problem but nothing
was done. Woodlands Bakery lost many customers as a result of this
problem.

5.3.1 Advise Woodlands Bakery on how to implement a continuous

improvement cycle to improve the quality of their product. (8)

5.3.2 Discuss how total client satisfaction and the continuous

improvement of processes and systems could assist Woodlands
Bakery to sell good quality bread. (8)

5.3.3 Explain the benefits of implementing a good quality control system

in Woodlands Bakery. (12)
[60]

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12 BUSINESS STUDIES (EC/JUNE 2016)

QUESTION 6: MISCELLANEOUS TOPICS

BUSINESS ENVIRONMENT

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

BODMAN DAIRY

Bodman, a dairy farmer, in Bedford said dairy producers in the area are
struggling because of the drought. Eskom has also announced electricity
hikes and farm workers are expecting salary increases during this financial
year.

6.1.1 Identify which sector Bodman Dairy operates in. Motivate your
answer. (3)

6.1.2 Identify any THREE challenges from the case study. Name the
environment that EACH challenge belongs to and the extent to
which Bodman Dairy can control these environments.

NOTE: QUESTION 6.1.2 must be answered according to

headings given in the table below.

CHALLENGES ENVIRONMENT EXTENT OF

CONTROL
A (1) (2) (1)
B (1) (2) (1)
C (1) (2) (1) (12)

6.2 List THREE types of intensive strategies that businesses can use to
overcome challenges. (3)

BUSINESS VENTURES

6.3 Evaluate the impact of transactional leadership style in the workplace. (8)

6.4 Suggest THREE reasons why employees may prefer the laissez-faire or
free-reign leadership style. (6)

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(EC/JUNE 2016) BUSINESS STUDIES 13

BUSINESS ROLES

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

DRUGS AND SUBSTANCE ABUSE ALLEGATIONS

Three employees were suspected of being under the influence of drugs or

alcohol whilst on duty and were dismissed immediately by management.
This resulted to serious conflict, lower productivity and low morale amongst
the workforce.

The three dismissed workers submitted written statements to their union

and claimed that they did not use drugs or alcohol while on duty.

The company met with their union and requested them to reinstate the
dismissed employees. The company had no policy on drugs and
substance abuse, nor any evidence of a disciplinary hearing or reasons for
their dismissal.

6.5.1 Identify any FOUR reasons for the conflict in the above scenario. (4)

6.5.2 Explain the conflict resolution process that the management should
follow. (10)

BUSINESS OPERATIONS

6.6 Define the term ‘quality performance’. (2)

6.7 Discuss how the quality of performance within the following business
functions are key to a successful business:

6.7.1 General Management (6)

6.7.2 Marketing (6)

[60]

TOTAL SECTION B: 180

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14 BUSINESS STUDIES (EC/JUNE 2016)

SECTION C

Answer ANY TWO questions in this section.

NOTE: Clearly indicate the QUESTION NUMBER of each question that you
choose.
The answer to EACH question must start on a NEW page, for example
QUESTION 7 on a NEW page, QUESTION 8 on a NEW page, et
cetera.

QUESTION 7: BUSINESS ENVIRONMENTS (LEGISLATIONS)

Four workers at Sovereign Foods, a poultry producer, situated in Uitenhage

claimed that they were injured on duty, and they were not given Injury-on-duty
(IOD) forms to complete.

In terms of Compensation for Occupational Injuries and Diseases Amendment Act,

1997 (Act 61 of 1997) (COIDA), Sovereign Foods must report all incidents to the
Department of Labour and submit the required forms to the Compensation
Commissioner within seven days.

[Adapted from The Herald, 28 July 2011]

With reference to the article:

 Explain the nature of the Compensation for Occupational Injuries and Diseases
Amendment Act.
 Discuss the rights of employees as outlined in this Act.
 Evaluate the impact of this Act on businesses.
 Suggest ways in which businesses can comply with this Act. [40]

QUESTION 8: BUSINESS ENVIRONMENTS (STRATEGIES)

Wall Stores have been experiencing a decline in sales due to losing customers to
their competitors. The management of Wall Stores decides to conduct a planning
session to come up with strategies to increase sales and to attract more
customers.

Refer to the scenario above and write an essay in which you include the following
aspects:

 Formulate THREE possible strategies that Wall Stores can include in their
strategic planning to address the challenges in the scenario.
 Discuss how Wall Stores can apply the Porter's Five Forces model to analyse
their market environment. [40]

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(EC/JUNE 2016) BUSINESS STUDIES 15

QUESTION 9: BUSINESS ROLES (CONFLICT AND HUMAN RIGHTS)

South African businesses are made up of diverse groups of people; if diversity is

not properly managed it can lead to conflict in the workplace.

Refer to the statement above and elaborate on the following issues in the
workplace:

 Define the meaning of ‘diversity’ in the workplace.

 Discuss the benefits of a diverse workforce to businesses.
 Explain possible causes of conflict
 Suggest different ways in which businesses can deal with difficult people. [40]

QUESTION 10: BUSINESS OPERATION (HUMAN RESOURCES)

You are the human resource manager of Mega Furniture. There is a vacant post
for a financial manager and you have already advertised the vacant post.

Refer to the scenario above and write an essay in which you include the following
aspects:

 Explain the selection procedure to identify the most suitable candidate for this
particular post
 Justify the purpose of an induction process
 Outline the placement procedure that you should consider when placing the
financial manager in his new position [40]

TOTAL SECTION C: 80
GRAND TOTAL: 300

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