NATIONAL SENIOR CERTIFICATE EXAMINATION BUSINESS STUDIES ... · NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER I Page 8 of 12 Answer Questions 5 and 6 in your Answer Book. Remember

NATIONAL SENIOR CERTIFICATE EXAMINATION NOVEMBER 2015

BUSINESS STUDIES: PAPER I

Time: 2 hours 200 marks PLEASE READ THE FOLLOWING INSTRUCTIONS CAREFULLY 1. This question paper consists of 12 pages and an Answer Booklet of 5 pages (i – v). Please

check that your question paper is complete. 2. Detach the Answer Booklet from the centre of the question paper and ensure that it is

handed in. Also ensure that your examination number is entered in the space provided on the Answer Booklet.

3. Read the questions carefully. 4. All questions are compulsory. Section A (Questions 1 – 3) must be answered on the supplied Answer Booklet.

Section B (Questions 4 – 6) comprises THREE shorter answer type questions. In this section, Question 4 must be answered in the supplied Answer Booklet. Questions 5 and 6 must be answered in your Answer Book. This is clearly indicated in the questions.

5. Demonstrate insight, where applicable, when answering questions. 6. Answer each new question on a new page. 7. Number your answers as the questions are numbered on the question paper. 8. You are advised to pay particular attention to the use of language and the allocation of

marks. 9. It is in your own interest to write legibly and to present your work neatly.

IEB Copyright © 2015 PLEASE TURN OVER

NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER I Page 2 of 12 SECTION A Answer all questions in this section in the supplied Answer Booklet. QUESTION 1 Indicate the most correct answer by writing the letter of the alternative you have chosen in the space provided in the supplied Answer Booklet. 1.1 Which one of the following techniques could be used to determine how many people are

needed in a Wimpy franchise in terms of the amount of work that must be done? A PESTLE B Job specification C Employee screening D Workload analysis

1.2 Famous Brands would not be able to insure against … A theft of its delivery vehicles. B dishonesty of employees. C price fluctuations in foreign exchange transactions. D damages caused by fire.

1.3 When a shareholder buys and sells shares on the stock exchange with the advantage of having access to confidential information, it is known as … A industrial espionage. B insider trading. C whistle blowing. D competitive advertising.

1.4 Steers needs to evaluate the performance of their workers so that … A corrective action can be taken to diminish the performance gap. B franchise performance is in line with Famous Brands' vision and mission. C there can be accountability by the franchisee. D All of the above.

1.5 Which one of the following can be seen as an objective of the JSE Social Responsibility

Index (SRI)? A To identify companies that subscribe to Triple Bottom Line reporting. B To provide a framework to help analyse challenges from the market environment. C To maximise compliance with the Road Accident Fund. D To guide management with investment diversification.

1.6 During a conflict situation, management decides to use a third party to give advice to

resolve the conflict. This is known as … A transfer of skills. B mediation. C arbitration. D avoidance.

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NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER I Page 3 of 12 1.7 The most likely impact of a recession on Steers would be …

A an increase in wages. B an increase in retrenchments. C a decrease in disciplinary grievances.

D an increase in employee bargaining power. 1.8 Which one of the following would be a good reason for a Famous Brands manager to use a

laissez faire leadership style? A The manager has highly experienced and skilled workers. B The manager has a project with a tight deadline. C There is a need for more standardised products. D There is a potentially dangerous work situation. 1.9 The … policy is implemented to bridge the gap between Famous Brands and a Steers

franchise to ensure that Steers receive their products at the right time and right place. A product B communication C distribution D pricing

1.10 A stockbroker recommends that the financial manager of Famous Brands should look for investments with no income, but with the possibility of generating high capital growth. The stockbroker is suggesting an investment in …

A equities. B money market accounts. C rental property. D collectables. [20]

[Downloaded from source:

<https://www.famousbrands.co.za>]


NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER I Page 4 of 12 QUESTION 2 Each of the following statements is FALSE. Change the bold word(s) in each statement to make the statement TRUE. Write only the correct word/term in the supplied Answer Booklet. 2.1 The Skills Development Act addresses issues relating to working hours, maternity leave

and notice of termination of employment. 2.2 Market mapping refers to Famous Brands' ability to use an established brand in an

unrelated market, e.g. Debonairs starts to sell branded clothing. 2.3 The ability of a manager to interact with two or more consultants so that their combined

effect is greater than the sum of their individual input refers to cultural diversity. 2.4 A PESTLE model is used to analyse challenges from the market environment. 2.5 Staff appraisal is the process of helping new recruits learn about the dress code at Famous

Brands' head office. 2.6 A proximate clause forces the insured to keep a full set of stock records. 2.7 A creative problem-solving technique, where the cost components of a product are analysed

with the aim of reducing costs and increasing the value of the product, is known as the RIMS strategy.

[14]


<https://www.famousbrands.co.za>]


NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER I Page 5 of 12 QUESTION 3 Complete the sentences by selecting the correct answers from the alternatives given below. Write only the correct word/term in the supplied Answer Booklet.

List of possible alternatives

Global Reporting Initiative Synergy Autocratic Prestige Piracy

Total Quality Management Interest Dividends Dysfunctional JSE Ltd

Psychological Tax evasion BEE SETA Transformational

3.1 An independent institution responsible for developing acceptable guidelines on economic,

environmental and social sustainability is the ________________. 3.2 The return that Famous Brands' shareholders expect to receive is referred to as

________________. 3.3 ________________ is the illegal practice of not disclosing all income to the South African

Revenue Services. 3.4 A type of disagreement where parties refuse to work towards a solution and the task is

compromised is referred to as ________________ conflict. 3.5 ________________ is an effort implemented throughout the entire business to plan and

control the standards of all operations in order to deliver the best product or service to the consumer.

3.6 ________________ is responsible for promoting learnerships and controlling funds relating

to training in a specific sector. 3.7 When Wimpy displays a food item on a menu as R79,99 instead of R80,00, the business is

making use of a ________________ factor as part of the buying decision. 3.8 During a crisis situation, it is appropriate for management to use a(n) __________________

leadership style, thus ensuring minimal impact on the safety of workers. [16]

50 marks


<https://www.debonairs.co.za>]


NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER I Page 6 of 12 SECTION B QUESTION 4 Answer this question in the supplied Answer Booklet. 4.1 Supply the missing information in the following schematic diagram by writing

your answer next to the question number on the supplied Answer Booklet.

(3) 4.2 Suggest, with a different strategy for each, how the Famous Brands management

team could effectively deal with each of the following ethical challenges:

4.2.1 Franchises selling food products of which the sell-by date has passed. (2) 4.2.2 An outsider attempting to gain access to confidential information about

employees. (2) 4.2.3 A Famous Brands manager is on the selection committee for choosing a

new cleaning company for the business. His wife submits a tender for the contract. (2)

4.3 Study the following schematic diagram. For each of the given departments, you are

required to identify and discuss (with examples) a different technique that can be applied to improve the quality of performance at Famous Brands Ltd.

(12)


NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER I Page 7 of 12 4.4 Illustrate, with the use of an example for each, how the following concepts would

relate to insurance that Steers would have to take out:

4.4.1 excess clause (3) 4.4.2 insurable interest (3)

4.5 Study the following schematic diagram. Supply the missing information in the

space provided in the supplied Answer Booklet.

Discipline in a Steers Franchise Work Environment

(10)

4.5.6 Explain how a Steers franchise could avoid disciplinary issues in its work environment. (2)

4.5.7 Describe ONE purpose of collective bargaining during a labour dispute. (2) 4.5.8 (a) Discuss ONE positive and ONE negative outcome if Steers'

employees embark on a strike action. (4)

(b) Mention TWO instances where a strike will be regarded as unprotected. (2)

4.6 List THREE elements that Famous Brands Ltd could include in their marketing

communication policy. (3) [50]


NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER I Page 8 of 12 Answer Questions 5 and 6 in your Answer Book. Remember to use the mark allocation as a guide to the length of your answers. QUESTION 5 5.1 List and explain THREE of the pillars of BBBEE. (6) 5.2 For each of the following scenarios, indicate the relevant legislation (Act) that

would be most applicable; refer to the bold sections to guide your answer.

5.2.1 A Debonairs employee is seriously injured in a motor vehicle accident while delivering a pizza to a customer. (1)

5.2.2 A waitress goes on maternity leave, but her employment contract does not

include a wage payment during this leave period. (1) 5.2.3 Debonairs employs a disabled person to record orders placed by customers. (1)

5.3 Refer to the following extract and then answer the questions that follow:

Famous Brands Code of Ethics and Corporate Governance The group's code of ethics requires all directors and employees to act with honesty and integrity, and to maintain the highest ethical standards. The code deals with compliance with laws and regulations, conflict of interest, relationships with customers and suppliers, remuneration, outside employment and confidentiality.

There is a commitment to Triple Bottom Line Reporting.

[Adapted from source: <https://www.famousbrands.co.za> (Accessed 24 November 2014)]

5.3.1 Explain what is meant by the term: Triple Bottom Line Reporting. (3) 5.3.2 Explain, with the use of examples, how Famous Brands shows a

commitment to Triple Bottom Line Reporting. (6) 5.3.3 Discuss TWO advantages that Famous Brands will face as a result of having

an effective code of ethics. (4) 5.3.4 When it comes to issues of Good Corporate Governance, it is important for

management to lead by example. Discuss this statement with reference to Famous Brands. (5)


NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER I Page 9 of 12 5.4 Refer to the following extract and then answer the questions that follow:

What else could go wrong? I always order from Great Pizza and I can't remember when last I was so disappointed in anything! I tried phoning them on the same number I've always used, but no answer. After placing the order, I received a text saying that I can expect delivery at 7:40 p.m. By 8 p.m. still no sign of the pizza, so I decided to phone them again. After trying numerous times, I FINALLY got through to them and the operator told me the delivery bike had a flat tyre. I found this to be very unprofessional, purely because they could have notified me, because the text I received said the branch would contact me if there is anything wrong. My order arrived at 8:40 p.m. and the delivery guy said there was something wrong with the bike. The branch and delivery guy's stories didn't match, so they lied. After everything, I paid for a cold pizza that was damaged and the chicken fill had only half of the bottom base. What are we to do about this?

[Adapted from source: <http://hellopeter.com> (Accessed 24 November 2014)]

Unhappy customers is a reality that any business has to deal with.

5.4.1 Discuss TWO advantages that Great Pizza has when a forum like Hellopeter.com is used by customers of the business. (4)

5.4.2 With reference to the scenario, describe how the franchisee of Great Pizza

could respond to this potentially conflicting situation in the short and the long term. (4)


NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER I Page 10 of 12 5.5 Study the following graph and then answer the questions that follow:

Market share price fluctuation of Famous Brands Ltd

"The strength of Famous Brands' integrated business model, which includes off shore investments, is evident in the pleasing results reported for the six months ended 31 August 2014." Fin 24 (November 2014)

[Adapted from source: <https://www-uk.computershare.com/investor/company> (Accessed 24 November 2014)]

5.5.1 What was the price of Famous Brands Ltd shares on 28 September 2014? (1) 5.5.2 Discuss a possible reason for the increase in share price after 23 October 2014. (2) 5.5.3 Discuss a possible reason for a drop in the value of the Famous Brands

share price during part of September and October 2014. (2) 5.5.4 Explain what is meant by an offshore investment. (2) 5.5.5 Evaluate an investment in Famous Brand Ltd shares in terms of risk and

return. (4) 5.5.6 Discuss the impact of including short-term and long-term investments as

part of an investment portfolio. (4) [50]


NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER I Page 11 of 12 QUESTION 6 Refer to the following extract and then answer the questions that follow:

Human Capital Development Famous Brands has embarked on a programme with the Nelson Mandela Metropolitan University aimed at sourcing and developing talent in the form of interns and graduate trainees. During the review period, two engineering interns were seconded to the Famous Brands Group, affording them a practical opportunity to achieve their qualification, while two graduates (marketing and logistics) are undergoing a rigorous traineeship with a view to future permanent employment. The following diagram shows the focus areas of the Human Resources/Capital Department of Famous Brands Ltd:

[Adapted from source: <https://www.famousbrands.co.za> (Accessed 24 November 2014)] 6.1 6.1.1 Explain the functions of a trade union in the industrial relations sphere of

Famous Brands. (8) 6.1.2 Describe THREE aims of the Skills Development Act. (6)

6.1.3 Refer to the key focus areas mentioned in the extract.

(a) Explain why it is important for Famous Brands to identify the key

focus areas of its Human Resources/Capital department. (2) (b) Is 'Empowerment and talent management' a strength or an

opportunity for Famous Brands? Motivate your answer. (3) (c) Explain how 'legislative compliance' could lead to a competitive

advantage for Famous Brands. (3) IEB Copyright © 2015 PLEASE TURN OVER

NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER I Page 12 of 12

6.1.4 The engineering interns went through a rigorous selection procedure. Describe THREE steps that could occur during this procedure. (6)

6.1.5 Discuss TWO possible disadvantages associated with Famous Brands

external recruitment programme at the Nelson Mandela Metropolitan University. (4)

6.1.6 Determine the link that exists between effective remuneration benefits,

employee morale and quality of performance. (3) 6.2 Discuss the impact of the Consumer Protection Act on the marketing activities of

Famous Brands. (10) 6.3

"Often we hear franchisors groan about the challenge of franchisees taking up new initiatives. However, when it comes to resisting bold and new ideas, sometimes it is the franchisor who is the problem!"

[Adapted from source: <http://www.franchiserelationships.com> (Accessed 9 September 2014)]

Do you agree with this statement? Motivate your answer with examples that relate to Famous Brands. (5) [50]

150 marks

Total: 200 marks



BUSINESS STUDIES: PAPER I

EXAMINATION NUMBER

ANSWER BOOKLET

SECTION A

QUESTION 1

Indicate the most correct answer by writing the letter of the alternative you have chosen in the space provided below.

1.1 1.6

1.2 1.7

1.3 1.8

1.4 1.9

1.5 1.10

20

QUESTION 2

Change the bold word(s) in each statement to make the statement TRUE. Write only the correct word/term in the space below.

2.1 2.5

2.2 2.6

2.3 2.7

2.4

14


NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER I – ANSWER BOOKLET Page ii of v QUESTION 3 Give the correct word/term from the list of possible alternatives given to complete each statement. Write only the correct word/term in the space provided below.

3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

16


NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER I – ANSWER BOOKLET Page iii of v SECTION B QUESTION 4 4.1 Supply the missing information from the schematic diagram.

4.1 (a)

4.1 (b)

4.1 (c)

3

4.2 Suggest, with a different strategy for each, how the Famous Brands management team could

effectively deal with each of the following ethical challenges:

4.2.1 Franchises selling food products of which the sell-by date has passed.

(2 marks)

4.2.2 An outsider attempting to gain access to confidential information about

employees.

(2 marks)

4.2.3 A Famous Brands manager is on the selection committee for choosing a new

cleaning company for the business. His wife submits a tender for the contract.

(2 marks)

6

50


NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER I – ANSWER BOOKLET Page iv of v 4.3 Refer to the schematic diagram in the Question Paper and complete the table below.

Department Quality of Performance

Technique

Discussion of how the technique can be applied to improve the quality of performance at

Famous Brands Ltd

Purchasing Department

(1 mark)

(3 marks) Human

Resources/ Human Capital

Department

(1 mark)

(3 marks)

Financial Department

(1 mark)

(3 marks)

12

4.4 Illustrate, with the use of an example for each, how the following concepts would relate to

insurance that Steers would have to take out:

4.4.1 Excess clause:

(3 marks) 4.4.2 Insurable interest:

(3 marks)

6


NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER I – ANSWER BOOKLET Page v of v 4.5 Supply the missing information that relates to the illustration of discipline in a Steers

Franchise Work Environment.

4.5.1

(2 marks) 4.5.2

(1 mark) 4.5.3

(1 mark) 4.5.4 * *

(4 marks) 4.5.5

(2 marks) 4.5.6

(2 marks) 4.5.7

(2 marks) 4.5.8 (a) Positive outcome: Negative outcome:

(4 marks) 4.5.8 (b)* *

(2 marks)

20 4.6 List THREE elements that Famous Brands Ltd could include in their marketing

communication policy.

* (1 mark)

* (1 mark)

* (1 mark)

3



BUSINESS STUDIES: PAPER II

Time: 2 hours 100 marks PLEASE READ THE FOLLOWING INSTRUCTIONS CAREFULLY 1. This question paper consists of 4 pages. Please check that your question paper is complete. 2. Read the questions carefully and plan the length of your answers in relation to the sections

being covered in each question. 3. Answer both Question 1 and Question 2. 4. Number your answers exactly as the questions are numbered. 5. Each question must be answered on a new page. 6. Candidates are advised to pay special attention to the use of language. 7. It is in your own interest to write legibly and to present your work neatly. 8. Answers must be completed in the Answer Book provided.

The following aspects will be considered when marks are allocated in this paper: • Format: ‒ The CORRECT format for each question must be used, i.e. business report. ‒ Where applicable, include an introduction and conclusion. ‒ Use headings and sub-headings where appropriate. • Terminology: Correct business terminology should be used. • Content: Must be sufficient to cover all aspects of the question. • Substantiation: Justification for statements made. • Application to case study/context. • Creative problem solving rather than just giving theoretical facts. • Synthesis and sequencing.


NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER II Page 2 of 4 QUESTION 1 Read the following sources before answering the question that follows: SOURCE A Group Chief Executive of Famous Brands, Parent Company of Debonairs Pizza – Johannesburg; Tuesday, 14 October 2014: A lot has been written in the media over the past few weeks regarding the arrival of both Pizza Hut and Domino's Pizza in SA, with both spokespersons signalling their intention to stir things up within the pizza space in the short term, not to mention making certain comments about the existing pizza brands in South Africa regarding issues such as quality, service, delivery, innovation, etc. We are South Africa's leading quick service restaurant pizza brand and have over the years won many accolades for quality, service and innovation – as voted for by the people who really matter – the South African public. The brand has also won many industry awards as a franchisor. We will fight with every ounce of our resolve to protect not only our Debonairs Pizza market share, but also, and just as important, protect every single one of our franchise partners who have invested in the Debonairs Pizza brand. Let the pizza wars begin and let's allow the South African consumer to make the ultimate decision by voting for their favourite pizza brand with their wallets and their throats.

[Downloaded and adapted from: <http://www.famousbrands.co.za/news_articles/2014/fb_turns_up_heat_in_pizza_ market.php 7/11/2014> on 7th November 2014]

SOURCE B • Nothing energises me more than being involved in a good 'scrap ' to defend our

business. • Innovation will be key in the battle to grab market share. – Hedderwick – 2014

[Downloaded and adapted from: <http://www.moneyweb.co.za> on 7th November 2014] SOURCE C

Famous Brands treads carefully but aggressively [Downloaded and adapted from: <http://www.bdlive.co.za/business/retail/2014/04/06/famous-brands-treads-carefully-

but-aggressively> on 8th December 2014]


NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER II Page 3 of 4

From Sources A, B and C it is clear that Mr Kevin Hedderwick (CEO of Famous Brands) and his team will be positioning Famous Brands for a full-scale pizza war within the fast food market. Their aim is to maintain the title as South Africa's leading pizza brand and to grow the brand's market share to compete with these international pizza brands. You have recently been approached by Mr Hedderwick to help Famous Brands strengthen Debonairs' marketing strategies to deal with the influences of the ever changing external environment Famous Brands operates in.

Requirements: Write a business report to Mr Hedderwick in which you discuss: • The impact of the external environment on the marketing function. Include possible

tools/models that Mr Hedderwick and his team could use to assess the influences of the external environment. • The 7 Ps of marketing to develop marketing strategies to respond to the influences of the external environment on the Debonairs brand.

[50]


NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER II Page 4 of 4 QUESTION 2 Read the following scenario and then answer the question that follows:

Famous Brands Management Training Workshop

Date : 10 November 2015

Time : 10:00 for 10:30

Venue : 478 James Crescent, Midrand

Presented by : Mr Kevin Hedderwick

Click here for directions: View the Map Training workshop for all: Marketing, Administration, Public Relations, Production, Human

Resources, Purchasing and Finance Managers.

Topics to be covered in the management traini ng

workshop:

1. Management and Leadership Styles

2. Motivational Factors

3. Management Tasks

4. Management Competencies

[Pictures downloaded from: <http://www.innovationmanagement.se> 11 November 2014 and <http://www.bdlive.co.za> 11 November 2014]

As the Human Capital manager at Famous Brands, you have recently attended the management training workshop and decided to issue a business report to all Famous Brands franchisees. Requirements: Use the topics from the management training workshop to explain and recommend ways in which the franchisees could deal with current and future problems.

[50] Total: 100 marks


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NATIONAL SENIOR CERTIFICATE EXAMINATION BUSINESS STUDIES ... · NATIONAL SENIOR CERTIFICATE: BUSINESS STUDIES: PAPER I Page 8 of 12 Answer Questions 5 and 6 in your Answer Book. Remember