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PREPARATORY EXAMINATION
2024
MARKING GUIDELINES

BUSINESS STUDIES (PAPER 1) (10721)

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NOTES TO MARKERS

PREAMBLE

The notes to markers are provided for quality assurance purposes to:

(a) Ensure fairness, consistency and reliability in the standard of marking

(b) Facilitate the moderation of candidates’ scripts at the different levels
(c) Streamline the marking process considering the broad spectrum of markers
across the districts
(d) Implement appropriate measures in the teaching, learning and assessment of
the subject at schools/institutions of learning

1. For marking and moderation purposes, the following colours are recommended:

Marker: Red
DH: Green
District Moderator: Orange
Provincial Moderator: Pink

2. Candidates’ responses must be in full sentences for SECTIONS B and C. However,

this would depend on the nature of the question.

3. A comprehensive marking guideline has been provided but this is by no means

exhaustive. Due consideration should be given to an answer that is correct, but:

• Uses a different expression from that which appears in the marking guidelines
• Comes from another credible source
• Is original
• A different approach is used

NOTE: There is only ONE correct answer in SECTION A.

4. Take note of other relevant answers provided by candidates and allocate marks
accordingly. (In cases where the answer is unclear or indicates some understanding,
part-marks should be awarded, for example, one mark instead of the maximum of
two marks.)

5. The word ‘Submax’ is used to facilitate the allocation of marks within a question or
subquestion.

6. The purpose of circling marks (guided by ‘max’ in the breakdown of marks) on the
right-hand side is to ensure consistency and accuracy in the marking of scripts as
well as for calculation and moderation purposes.

7. Subtotals to questions must be written in the right-hand margin. Circle the subtotals
as indicated by the allocation of marks. This must be guided by ‘max’ in the marking
guidelines. Only the total for each question should appear in the left-hand margin
next to the appropriate question number.
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8. In an indirect question, the theory as well as the response must be relevant and
related to the question.

9. Correct numbering of answers to questions or subquestions is recommended in

SECTIONS A and B. However, if the numbering is incorrect, follow the sequence of
the candidate’s responses. Candidates will be penalised if the latter is not clear.

10. No additional credit must be given for repetition of facts. Indicate with an ‘R’.

11. The differentiation between ‘evaluate’ and ‘critically evaluate’ can be explained as
follows:

11.1 When ‘evaluate’ is used, candidates are expected to respond in either a

positive/negative manner or take a neutral (positive and negative) stance, e.g.
Positive: ‘COIDA eliminates time and costs spent  on lengthy civil court
proceedings.’

11.2 When ‘critically evaluate’ is used, candidates are expected to respond in

either a positive/negative manner or take a neutral (positive and negative)
stance. In this instance candidates are also expected to support their
responses with more depth, e.g. ‘COIDA eliminates time and costs spent 
on lengthy civil court proceedings, because the employer will not be liable
for compensation to the employee for injuries sustained during working hours
as long as it can be proved that the business was not negligent.’ 

NOTE: 1. The above could apply to ‘analyse’ as well.

2. Note the placing of the tick () in the allocation of marks.

12. The allocation of marks must be informed by the nature of the question, cognitive
verb used, mark allocation in the marking guidelines and the context of each
question.

Cognitive verbs, such as:

12.1 Advise, name, state, outline, motivate, recommend, suggest, (list not
exhaustive) do not usually require much depth in candidates’ responses.
Therefore, the mark allocation for each statement/answer appears at the end.

12.2 Define, describe, explain, discuss, elaborate, distinguish, differentiate,

compare, tabulate, analyse, evaluate, critically evaluate (list not exhaustive)
require a greater depth of understanding, application and reasoning.
Therefore, the marks must be allocated more objectively to ensure that
assessing is conducted according to established norms so that uniformity,
consistency and fairness are achieved.

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13. Mark only the FIRST answer where candidates offer more than one answer for
SECTIONS B and C questions that require only one answer.

14. SECTION B

14.1 If for example, FIVE facts are required, mark the candidate’s FIRST FIVE
responses and ignore the rest of the responses. Indicate by drawing a line
across the unmarked portion.

NOTE: 1. This applies only to questions where the number of facts is

specified.
2. The above also applies to responses in SECTION C (where
applicable).

14.2 If two facts are written in one sentence, award the candidate FULL credit.
Point 14.1 above still applies.

14.3 If candidates are required to provide their own examples/views, brainstorm

this to finalise alternative answers and consult with the Internal Moderator.

14.4 Use of the cognitive verbs and allocation of marks:

14.4.1 If the number of facts are specified, questions that require candidates
to ‘describe/discuss/explain’ may be marked as follows:
• Fact: 2 marks (or as indicated in the marking guidelines)
• Explanation: 1 mark (two marks will be allocated in Section C)

The ‘fact’ and ‘explanation’ are given separately in the marking

guidelines to facilitate mark allocation.

14.4.2 If the number of facts required is not specified, the allocation of marks
must be informed by the nature of the question and the maximum
mark allocated in the marking guidelines.

14.5 ONE mark may be awarded for answers that are easy to recall, requires
one-word answers or is quoted directly from a scenario/case study. This
applies to SECTIONS B and C in particular (where applicable).

15. SECTION C

15.1 The breakdown of the mark allocation for the essay-type questions is as
follows:

Introduction
Maximum:
Content
32
Conclusion
Insight 8
TOTAL 40

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15.2 Insight consists of the following components:

Layout/Structure Is there an introduction, paragraphs and a conclusion? 2

Analysis and Is the candidate able to break down the question into 2
Interpretation headings/subheadings/interpret it correctly to show
understanding of what is being asked?
Marks to be allocated using this guide:
All headings addressed: 1 (One ‘A’)
Interpretation (16 to 32 marks): 1 (One ‘A’)
Synthesis Are there relevant decisions/facts/responses made based on the 2
questions?
Option 1: Only relevant facts: 2 marks (No ‘-S’)
Where a candidate answers 50% or more (two to
four sub-questions) of the question with only
relevant facts; no ‘-S’ appears in the left margin.
Award the maximum of TWO (2) marks for
synthesis.
Option 2: Some relevant facts: 1 mark (One ‘-S’)
Where a candidate answers less than 50% (only one
sub-question) of the question with only OR some
relevant facts; one ‘-S’ appears in the left margin.
Award a maximum of ONE (1) mark for synthesis.
Option 3: Some relevant facts: 1 mark (One ‘-S’)
Where a candidate answers FOUR sub-questions,
but one/two/three sub-questions with no relevant
facts; one ‘-S’ appears in the left margin. Award a
maximum of ONE (1) mark for synthesis.
Option 4: No relevant facts: 0 mark (Two ‘-S’)
Where a candidate answers less than 50% (only one
sub-question) of the questions with no relevant facts;
two ‘-S’ appears in the left margin. Award a ZERO-
mark for synthesis.
Originality Is there evidence of one or two examples, not older than two (2) 2
years that are based on recent information, current trends and
developments?
TOTAL FOR INSIGHT: 8
TOTAL MARKS FOR FACTS: 32
TOTAL MARKS FOR ESSAY (8 + 32): 40

NOTE: 1. No marks will be awarded for contents repeated from the

introduction and conclusion.

2. The candidate forfeits marks for layout if the words INTRODUCTION

and CONCLUSION are not stated.

3. No marks will be awarded for layout, if the headings INTRODUCTION

and CONCLUSION are not supported by an explanation.

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15.3 Indicate insight in the left-hand margin with a symbol e.g. (‘L, A, -S and/or O’).

15.4 The breakdown of marks is indicated at the end of the suggested answer/ marking
guidelines to each question.

15.5 Mark all relevant facts until the SUBMAX/MAX mark in a subsection has been
attained. Write SUBMAX/MAX after maximum marks have been obtained, but
continue reading for originality “O”.

15.6 At the end of each essay indicate the allocation of marks for facts and marks for
insight as follows: (L – Layout, A – Analysis, S – Synthesis, O – Originality) as in
the table below.

CONTENT MARKS
Facts 32 (max.)
L 2
A 2
S 2
O 2
TOTAL 40

15.7 When awarding marks for facts, take note of the sub-maxima indicated, especially
if candidates do not make use of the same subheadings. Remember, headings and
subheadings are encouraged and contribute to insight (structuring/logical
flow/sequencing) and indicate clarity of thought. (See MARKS BREAKDOWN at
the end of each question.)

15.8 If the candidate identifies/interprets the question INCORRECTLY, then he/she may
still obtain marks for layout.

15.9 If a different approach is used by candidates, ensure that the answers are
assessed according to the mark allocation/subheadings as indicated in the
marking guidelines.

15.10 15.10.1 Award TWO marks for complete sentences. Award ONE mark for
phrases, incomplete sentences and vague answers.

15.10.2 With effect from November 2015, the TWO marks will not necessarily
appear at the end of each completed sentence. The ticks () will be
separated and indicated next to each fact, e.g. ‘Product development is
a growth strategy , where businesses aim to introduce new products
into existing markets.’ 

This will be informed by the nature and context of the question, as well
as the cognitive verb used.

15.11 With effect from November 2017, the maximum of TWO (2) marks for facts shown
as headings in the marking guidelines, will not necessarily apply to each question.
This would also depend on the nature of the question.

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SECTION A (COMPULSORY)

QUESTION 1

1.1 1.1.1 C 

1.1.2 B 

1.1.3 D 

1.1.4 A 

1.1.5 C  (5 x 2) (10)

1.2 1.2.1 environment 

1.2.2 Human Resources Development 

1.2.3 Unemployment Insurance Fund 

1.2.4 management 

1.2.5 piecemeal  (5 x 2) (10)

1.3 1.3.1 G 

1.3.2 I 

1.3.3 A 

1.3.4 H 

1.3.5 C  (5 x 2) (10)

TOTAL SECTION A: 30

BREAKDOWN OF MARKS
QUESTION 1 MARKS
1.1 10
1.2 10
1.3 10
TOTAL 30

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SECTION B

Mark the answers to the FIRST TWO questions only.

QUESTION 2: BUSINESS ENVIRONMENTS

2.1 BBBEE pillars

- Management control 
- Skills development 
- Ownership 
- Enterprise and supplier development/ESD 
- Socio-economic development/Social responsibility 

NOTE: Mark the first FOUR (4) only. (4 x 1) (4)

2.2 Role of SETAs in supporting the Skills Development Act/SDA

- Report to the Director General. 

- Promote and establish learnerships. 
- Collect levies and pay out grants as required. 
- Provide accreditation for skills development facilitators. 
- Register learnership agreements/learning programmes. 
- Approve workplace skills plans and annual training reports. 
- Monitor/Evaluate the actual training by service providers. 
- Allocate grants to employers/education/training providers. 
- Oversee training in different sectors of the South African economy. 
- Develop sector skills plans in line with the National Skills Development
Strategy/for various economic sectors. 
- Draw up skills development plans for their specific economic sectors. 
- Provide training material/programmes for skills development facilitators. 
- Pay out grants to businesses that are complying with the requirements of the
Skills Development Act. 
- Promote learning programmes by identifying suitable workplaces for practical
work experience. 
Any other relevant answer related to the role of SETAs in supporting the SDA.
Max. (6)

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2.3 Types of defensive strategies from statements

2.3.1 Retrenchment 

2.3.2 Divestiture  (2 x 2) (4)

NOTE: Do not accept “Divestment” as reported in the 2023 National Diagnostic

Report on learner performance.

2.4 Advantages of intensive strategies

- Increase in sales/income and profitability  due to aggressive advertising

campaign/more products/services are being sold. 
- Regular sales to existing customers  may increase. 
- Gain customer loyalty  through effective promotion campaigns. 
- Improved service delivery  may positively impact/increase sales. 
- Eliminate competitors  and dominate market prices. 
- Decrease in price  could influence customers to buy more products. 
- Businesses can have more control  over the prices of products/services. 
- Enables the business to focus on markets/well researched quality products 
that satisfy the needs of consumers. 
- Increased market share  reduces the business’s vulnerability to actions of
competitors. 
- Increase the control over the prices charged for products/services.
Any other relevant answer related to the advantages of intensive strategies. Max. (6)

2.5 Porter’s Five Forces model from the scenario

PORTER'S FIVE FORCES MODEL MOTIVATIONS

1. Bargaining power of competitors/ Neo Smooth Fries sells fish and
Competitive rivalry  chips at a lower price to drive FF out
of the market. 
2. Power of buyers  Some of FF customers buy in bulk to
determine the prices in their
favour. 
Submax. (4) Submax. (2)

NOTE: 1. Mark the first TWO (2) only.

2. Award marks for the Porter’s Five Forces model even if the
quotes are incomplete.
3. Do not award marks for the motivations if the Porter’s Five Forces
model were incorrectly identified.
4. Accept responses in any order.
Max. (6)

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2.6 Rights of employees in terms of the Labour Relations Act/LRA

- Employees may join a trade union  of their choice. 

- May embark on legal strikes  as a remedy for grievances. 
- Refer unresolved workplace disputes  to the CCMA. 
- Refer unresolved CCMA disputes  to the Labour Court on appeal. 
- Request trade union representatives to assist/represent employees  in the
grievance/disciplinary hearing. 
- Trade union representatives may take reasonable time off work with pay , to
attend to trade union duties. 
- Establish a workplace forum where a business has 100 or more employees
to resolve work-related issues. 
Any other relevant answer related to the rights of employees in terms of the LRA.
Max. (4)

2.7 Penalties for non-compliance with the Compensation for Occupational

Injuries and Diseases Amendment Act/COIDA

- Businesses that do not comply with COIDA may receive a compliance order
from the Labour Court  which forces them to comply with COIDA. 
- Businesses can be forced to make large payments  if they did not take the
necessary precautions according to the Act. 
- Businesses can be forced to pay any recovery costs  required by the
Compensation Fund. 
- The employee may take the business to court  for not registering him/her with
the Commissioner of the Compensation Fund. 
- Business that neglect to comply with COIDA may receive large fines for
refusing to lodge claims and may even be given a jail
sentence/imprisonment,  which will be dependent on the severity of the non-
compliance. 
- Business can be forced to make large payment if they do not implement the
necessary precaution  to reduce accident/fatalities or promote health and
safety in the workplace. 
Any other relevant answer related to penalties businesses may face for non-
compliance with COIDA. Max. (4)

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2.8 Strategic management process

OPTION 1
- Businesses should have a clear vision, mission statement/measurable/
realistic objective in place. 
- Identify opportunities/weaknesses/strengths/threats by conducting
environmental scanning/situational analysis. 
- Tools available for environmental scanning may include a SWOT
analysis/Porter’s Five Forces model/PESTLE analysis/industrial analysis
tools. 
- Formulate alternative strategies to respond to the challenges. 
- Develop (an) action plan(s), including the tasks to be done/deadlines to be
met/resources to be procured. 
- Implement selected strategies by communicating it to all stakeholders/
organising business resources/motivating staff. 
- Continuously evaluate/monitor/measure strategies in order to take corrective
action. 
Any other relevant answer related to the strategic management process.

OR

OPTION 2
- Businesses should review/analyse/re-examine their vision/mission
statement. 
- Conduct an environmental analysis using models such as SWOT/PESTLE/
Porter’s Five Forces. 
- Formulate a strategy, such as a defensive/retrenchment strategy. 
- Implement a strategy, using a template such as an action plan. 
- Control/Evaluate/Monitor the implemented strategy to identify gaps/deviations
in implementation. 
- Take corrective action to ensure that goals/objectives are met. 
Any other relevant answer related to the strategic management process. Max. (6)

BREAKDOWN OF MARKS
QUESTION 2 MARKS
2.1 4
2.2 6
2.3 4
2.4 6
2.5 6
2.6 4
2.7 4
2.8 6
TOTAL 40

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QUESTION 3: BUSINESS OPERATIONS

3.1 Aspects that should be included in an employment contract

- Personal details of the employee. 

- Details of the business/employer such as the name and address. 
- Job title/Position. 
- Job description such as duties/responsibilities and working conditions. 
- Job specification such as formal qualifications and willingness to travel. 
- Date of employment/Commencement of employment. 
- Place where employee will spend most of his/her working time. 
- Hours of work such as normal time and overtime. 
- Remuneration such as weekly or monthly pay. 
- Benefits/Fringe benefits/Perks/Allowances. 
- Leave such as sick/maternity/annual/adoption leave.
- Employee deductions (compulsory/non-compulsory). 
- Duration/Period of employment contract/Details of termination/Expiry date of
employment contract. 
- Probation period. 
- Signatures of both the employer and employee. 
- List of documents that form part of the contract such as appointment letter/
code of conduct/ethics. 
- Disciplinary policy such as rules/disciplinary procedure for unacceptable
behaviour. 
Any other relevant answer related to aspects that should be included in an
employment contract.

NOTE: Mark the first THREE (3) only. (3 x 1) (3)

3.2 Meaning of placement as a human resources activity

- Selected candidates are placed where they will function optimally  and add
value to the business. 
- A specific task  is assigned to the selected candidate. 
- The qualifications/skills/personality of the selected candidate are
matched with the requirements of the position. 
Any other relevant answer related to the meaning of placement as a human resource
activity.

NOTE: No marks must be awarded for the placement procedure. Max. (4)

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3.3 Recruitment methods

3.3.1 Recruitment method from the scenario

External recruitment  (2)

Motivation
TM advertised a vacancy for a production manager in newspapers.  (1)

NOTE: Do not award marks for the motivation if external recruitment was
incorrectly identified. Max. (3)

3.3.2 Advantages of the external recruitment

- New candidates bring new talents/ideas/experience/skills  into the

business. 
- There is a larger pool of candidates  from which to choose. 
- It may help the business to meet affirmative action/EEA and BBBEE
targets. 
- Minimises unhappiness/conflict amongst current employees  who
may have applied for the post 
- There is a better chance of getting a suitable candidate with the
required skills/qualifications/competencies  who does not need much
training/development which reduces costs. 
- New employees may add value to the overall efficiency/productivity of
the business. 
Any other relevant answer related to the advantages of external
recruitment. Max. (4)

3.4 Reasons for the termination of an employment contract

- The employer may dismiss an employee for (a) valid reason(s), such as
unsatisfactory job performance and misconduct. 
- Employer may no longer have work for redundant employees/cannot fulfil the
contract/is restructuring. 
- The employer may retrench some employees due to insolvency/may not be
able to pay the employees. 
- Employees decided to leave by resigning voluntarily for better job
opportunities. 
- An employee may have reached the predetermined age for retirement. 
- Incapacity to work due to illness/injuries. 
- By mutual agreement between the employer and employee. 
- The duration of the employment contract expires/comes to an end. 
Any other relevant answer related to the reasons for termination for the employment
contract. Max. (6)

NOTE: Award a maximum of TWO (2) marks for only naming the reasons.

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3.5 Difference between quality control and quality assurance

QUALITY CONTROL QUALITY ASSURANCE

- System that ensures the desired - Checks carried out during and after
quality is met by inspecting the final the production process. 
product. 
- Ensures that finished products meet - Ensures that required standards have
the required standards.  been met at every stage of the
process. 
- Process of ensuring that products - Processes put in place to ensure that
are consistently manufactured to the quality of products/services/
high standards.  systems adhere to preset standards
with minimal defects/delays/
shortcomings. 
- Checks raw materials/employees/ - Ensures that every process is aimed
machinery/workmanship/products to to get the product ‘right the first time’
ensure that high standards are and prevents mistakes from
maintained.  happening. 
- Includes setting targets/measuring - The ‘building in’ of quality as
performance and taking corrective opposed to ‘checking of’ quality. 
measures. 
Any other relevant answer related to Any other relevant answer related to
quality control. quality assurance.
Submax. (2) Submax. (2)

NOTE: 1. The answer does not have to be in a tabular format.

2. The difference does not have to link but must be clear.
3. Award a maximum of TWO (2) marks if the difference is not
clear/Mark either quality control or quality assurance only.
Max. (4)

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3.6 Benefits of a good quality management system

- 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. 
- A 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. 
- Increased market share/more customers  improve profitability/financial
sustainability. 
- Improves business image  as there are less defects/returns. 
- Improves the financial sustainability of the business  as customers are
retained.
Any other relevant answer related to the benefits of a good quality management
system. Max. (6)

3.7 Impact of TQM if poorly implemented by businesses

3.7.1 Impact of TQM if poorly implemented by businesses from the scenario

- The management at TE set unrealistic deadlines that may not be

achieved. 
- Investors have withdrawn their investment due to decline in profits. 

NOTE: Only award marks for responses that are quoted from the
scenario. (2 x 1) (2)

3.7.2 Other impact of TQM if poorly implemented by businesses

- Employees may not be adequately trained  resulting in poor quality

products. 
- Decline in productivity , because of stoppages. 
- Businesses may not be able to make necessary changes to
products/services  to satisfy the needs of customers. 
- Businesses’ reputation/image may suffer  because of poor
quality/defective goods. 
- Customers will have many alternatives to choose from  and the
impact could be devastating to businesses. 
- Decline in sales  as more goods are returned by unhappy
customers. 

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- High staff turnover , because of poor skills development. 

- Undocumented/Uncontrolled quality control processes/systems  could
result in errors/deviations from preset quality standards. 
Any other relevant answer related to other impact of TQM if poorly
implemented by businesses.

NOTE: Do not award marks for responses that were quoted in

QUESTION 3.7.1. Max. (4)

3.8 Advantages of adequate financing and capacity

- Large businesses have sufficient financing to test everything before

implementing. 
- They can afford to have systems in place to prevent errors in processes/
defects in raw materials/products. 
- Able to afford product research/market researchers to gather information about
products/customers. 
- Large businesses can fund programmes aimed at improving quality
processes. 
- Can afford to purchase quality raw materials and equipment. 
Any other relevant answer related to the advantages of adequate financing and
capacity as a TQM element on large businesses. Max. (4)

BREAKDOWN OF MARKS
QUESTION 3 MARKS
3.1 3
3.2 4
3.3.1 3
3.3.2 4
3.4 6
3.5 4
3.6. 6
3.7.1 2
3.7.2 4
3.8 4
TOTAL 40

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QUESTION 4: MISCELLANEOUS TOPICS

BUSINESS ENVIRONMENTS

4.1 Provisions of the Basic Conditions of Employment Act/BCEA

- Regulation of working time/Ordinary hours of work/overtime/meal intervals and rest

periods/Sunday work/public holidays. √
- Leave/annual/sick/family responsibility/maternity/paternity/parental. √
- Particulars of employment and remuneration. √
- Termination of employment. √
- Prohibition of employment of children and forced labour. √
NOTE: Mark the first FOUR (4) only. (4 x 1) (4)

4.2 Challenges of business environments and the extent of control

CHALLENGES BUSINESS EXTENT OF

4.2.1 ENVIRONMENTS CONTROL
4.2.2 4.2.3
1. ATE always receives stock late Market  Partial/Some/Limited/
from Freddie Wholesalers.  Less/Little control 
2. ATE is experiencing a decline in Micro  Full control 
sales due to unproductive
employees. 
Max. (2) Max. (2) Max. (2)

NOTE: 1. Mark the first challenge for each environment only.

2. If the business environment is not linked to the challenge mark
the challenge only.
3. Award full marks for the business environment even if the
challenge is not indicated/incorrect.
4. The extent of control must be linked to the business
environment.
5. Do not award marks for the extent of control if the business
environment is not mentioned.
6. Accept responses in any order.

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4.3 Advantages of the Employment Equity Act/EEA

- Encourages consultation  between employer and employees. 

- Promotes equal opportunities and fair treatment  in the workplace. 
- Impacts positively on BEE ratings  for businesses. 
- The appointment process is clearly defined , so all parties are well
informed. 
- Motivates employees  because the workforce is more diverse/representative/
inclusive. 
- Motivates employees  because everyone has the same employment
opportunities. 
- Promotes the implementation of affirmative action measures  to redress the
imbalances in employment. 
- Provides employees with legal recourse  if they believe they have been
unfairly discriminated against. 
- Provides all employees with an equal opportunity  to be selected/appointed/
promoted in a position. 
- Systematically prevents unfair discrimination  as it ensures that the workforce
represents the demographics of the country. 
- Creates a framework  of acceptable employment practices/affirmative action
measures. 
- Encourages diversity in business  by employing people from various racial
backgrounds. 
- Businesses are in a better position to negotiate contracts  with the
government 
- Certified psychometric tests may be used to assess applicants/employees  to
ensure that they are suitable. 
Any other relevant answer related to the advantages of the Employment Equity
Act/EEA. Max. (6)

4.4 Steps in strategy evaluation

- Examine the underlying basis of a business strategy. 

- Look forward and backwards into the implementation process. 
- Compare the expected performance with the actual performance. 
- Determine the reasons for deviations and analyse these reasons.
- Take corrective action so that deviations may be corrected. 
- Set specific dates for control and follow up. 
- Draw up a table of the advantages and disadvantages of a strategy. 
- Decide on the desired outcome that will result in the achievement of business goals/
envisaged when strategies are implemented.
- Consider the impact of the strategic implementation in the internal and external
environments of the business. 
Any other relevant answer related to the steps in strategy evaluation.

NOTE: Accept steps in any order Max. (4)

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BUSINESS OPERATIONS

4.5 Sources of internal recruitment

- Internal e-mails/Intranet/websites to staff 

- Word of mouth/Staff meetings 
- Business newsletter/Circulars to staff 
- Internal/management referrals 
- Office notice boards 
- Internal bulletins 
- Recommendation by current employees/staff 
- Headhunting within the business/organisational database 
Any other relevant answer related to the sources of internal recruitment.

NOTE: Mark the first FOUR (4) only. (4 x 1) (4)

4.6 Aspects that must be included in the induction programme

4.6.1 Aspect that must be included in the induction programme from the
scenario

- The programme included a tour of the premises. 

- Information about their business’s products also formed part of the
programme. 

NOTE: 1. Mark the first TWO (2) only.

2. Only award marks for responses that are quoted from the
scenario. (2 x 1) (2)

4.6.2 Other aspects that must be included in the induction programme.

- Introduction to key people  and immediate colleagues. 

- Safety regulations  and rules. 
- Discussion of the employment contract  and conditions of service. 
- Discussion of employee  benefits. 
- Meeting with senior management  who will explain the company’s
vision/value descriptions/daily tasks. 
- Conditions of employment,  such as working hours/leave application
process/disciplinary procedures, etc. 
- Administration details  on systems/processes/logistics. 
- Discussion of personnel policies,  such as making private phone
calls/using the Internet, etc. 
- Corporate social responsibility  programmes. 
Any other relevant answer related to other aspects that must be included in
the induction programme.

NOTE: Do not award marks for responses that were quoted in

QUESTION 4.6.1 Max. (4)

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4.7 Quality indicators of the purchasing function

- Businesses should buy raw materials/products in bulk  at lower prices. 

- Select reliable suppliers that render the best quality raw materials/capital
goods  at reasonable prices. 
- Place orders timeously and regular follow-ups  to ensure that goods are
delivered on time. 
- Effective coordination between purchasing and production departments  so
that purchasing staff understand the requirements of the production process. 
- Required quantities should be delivered  at the right time and place. 
- Implement/Maintain stock control systems  to ensure the security of stock. 
- Maintain optimum stock levels  to avoid overstocking/reduce outdated
stock. 
- Monitor and report on minimum stock levels  to avoid stock-outs. 
- Effective use of storage space  and maintain product quality while in
storage. 
- Involve suppliers  in strategic planning/product design/material
selection/quality control processes. 
- Ensure that there is no break in production  due to stock shortages. 
- Establish relationships with suppliers  so that they are in alignment with the
business’s vision/mission/values. 
- Have a thorough understanding  of supply chain management. 
Any other relevant answer related to the quality indicators of the purchasing function.
Max. (4)

4.8 Role of quality circles as part of continuous improvement to processes and

systems

- Solve problems related to quality and implement improvements. 

- Investigate problems and suggest solutions to management. 
- Ensure that there is no duplication of activities/tasks in the workplace. 
- Make suggestions for improving systems and processes in the workplace. 
- Improve the quality of products/services/productivity through regular reviews of
quality processes. 
- Monitor/Reinforce strategies to improve the smooth running of business
operations. 
- Increase employees’ morale/motivation to boost the team spirit in achieving
organisational goals. 
- Contribute towards the improvement and development of the organisation. 
- Reduce costs of redundancy and wasteful efforts in the long run. 
- Increase the demand for products/services of the business. 
- Create harmony and high performance in the workplace. 
- Build a healthy workplace relationship between the employer and employee. 

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- Improve employees’ loyalty/commitment to the organisational goals. 

- Improve employees’ communication at all levels of the business. 
- Develop a positive attitude/sense of involvement in decision making processes
of the services offered. 
Any other relevant answer related to the role of quality circles as part of continuous
improvement to processes and systems. Max. (6)

BREAKDOWN OF MARKS
QUESTION 4 MARKS
4.1 4
4.2.1 2
4.2.2 2
4.2.3 2
4.3. 6
4.4 4
4.5 4
4.6.1. 2
4.6.2 4
4.7 4
4.8 6
TOTAL 40

TOTAL SECTION B: 80

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SECTION C

Mark the answers to the FIRST question only.

QUESTION 5: BUSINESS ENVIRONMENTS (LEGISLATION)

5.1 Introduction

- The establishment of the CPA has resulted in the protection of the rights of
consumers. 
- The CPA compels both businesses and consumers to act responsibly when
conducting business activities. 
- The CPA applies to all businesses that are involved in buying and selling of
goods and services in South Africa. 
- Businesses should comply with the CPA to avoid penalties for non-compliance
and having the business activities suspended. 
Any other relevant introduction related to the purpose of the CPA/rights of consumers
in terms of the CPA/impact of the CPA on businesses/ways in which businesses can
comply with the CPA. Any (2 x 1) (2)

5.2 Purpose of the Consumer Protection Act/CPA

- Promotes fair/accessible and sustainable places for people to sell their

products. 
- Establishes national standards to protect consumers regardless of economic
status. 
- Provides guidelines for better consumer information and to prohibit unfair
business practices. 
- Promotes responsible consumer behaviour amongst consumers. 
- Promotes consistent laws relating to consumer transaction and agreement. 
- Establishes a National Consumer Commission (NCC). 
- Ensures that consumers have access to information they need to make
informed choices. 
- Promotes the rights and full participation of historically disadvantaged
individuals as consumers in the economy. 
- Ensures that consumers are not misled/deceived by suppliers of goods/
services. 
- Promotes consumer safety by protecting them from hazardous products/
services. 
- Strengthens a culture of consumer rights and responsibilities. 
- Empowers consumers to take legal action if their rights are not upheld. 
- Protects consumers against contracts that include unfair terms which limit the
liability of suppliers. 
- Protects consumers against unscrupulous businesses such as fly-by-night
franchisors. 
- Allows for consumers and businesses to resolve disputes fairly/effectively. 
Any other relevant answer related to the purpose of the Consumer Protection Act.
Max. (10)

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5.3 Rights of consumers in terms of the CPA

5.3.1 Right to choose 

Consumers have the right to:

- choose suppliers  and goods. 
- shop around  for the best prices. 
- return goods  that are unsafe/defective for a full refund. 
- reject goods  that are not the same as the sample marketed. 
- cancel/renew  fixed term agreements. 
- request written quotations  and cost estimates. 
Any other relevant answer related to the right to choose according to the CPA.
Right (2)
Explanation (2)
Submax. (4)

5.3.2 Right to privacy 

- Consumers have the right to stop/restrict  unwanted direct

marketing. 
- They can object  to unwanted promotional e-mails and telesales. 
- They have the right to stop/lodge complaints  about the sharing of their
personal details. 
Any other relevant answer related to the right to privacy according to the CPA.
Right (2)
Explanation (2)
Submax. (4)

5.3.3 Right to fair and honest dealings 

- Suppliers may not use physical force/harass customers  to buy

products. 
- Suppliers may not give misleading/false  information. 
- Businesses may not promote pyramid schemes  and chain-letter
schemes. 
- Businesses may not overbook/oversell goods/services  and then not
honour the agreement. 
Any other relevant answer related to the right to fair and honest dealings
according to the CPA.
Right (2)
Explanation (2)
Submax. (4)

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5.3.4 Right to disclosure and information 

- Contracts/Agreements should be in plain language  and easy to

understand. 
- Businesses should display prices  which are fully inclusive/disclosing
all costs. 
- Consumers may request the unit/bulk price  of the same product. 
- If two prices for the same product are displayed , consumers should
pay the lower price. 
- Businesses should label products  and trade descriptions correctly. 
Any other relevant answer related to the right to disclosure and information
according to the CPA.
Right (2)
Explanation (2)
Submax. (4)

5.3.5 Right to fair and responsible marketing 

- Businesses should not mislead consumers  on pricing, benefits/uses

of goods. 
- Consumers may cancel purchases made through direct marketing 
within five working days/cooling off-period. 
- All information related to the country of origin , expiry dates/ingredients
of the products should be disclosed. 
Any other relevant answer related to the right to fair and responsible marketing
according to the CPA.
Right (2)
Explanation (2)
Submax. (4)

5.3.6 Right to fair value, good quality and safety 

- Consumers have the right to demand  quality service or goods. 

- They have the right to return faulty items  if the fault occurs within six
months after purchasing the item. 
- Consumers may receive an implied/a written  warranty. 
Any other relevant answer related to the right to fair value, good quality and
safety according to the CPA.
Right (2)
Explanation (2)
Submax. (4)

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5.3.7 Right to accountability by suppliers 

- Consumers have the right to be protected  in lay-bye agreements. 

- Businesses should honour credit vouchers  and prepaid services. 
Any other relevant answer related to the right to accountability by suppliers
according to the CPA.
Right (2)
Explanation (2)
Submax. (4)

5.3.8 Right to fair/just and reasonable terms and conditions 

- Businesses should provide consumers with written notices of clauses 

that may limit consumer rights. 
- Protect consumers against unfair  and unreasonable/unjust contract
terms. 
- Businesses may not market/sell goods  at unfair prices. 
- Approach the court  to ensure fair and just conduct/terms and
conditions. 
Any other relevant answer related to the right to fair/just and reasonable terms
and conditions according to the CPA.
Right (2)
Explanation (2)
Submax. (4)

5.3.9 Right of equality in the consumer market 

- Businesses should not limit access  to goods and services in the

consumer market. 
- Businesses may not vary the quality of their goods  to different
consumers. 
- Businesses may not charge different prices  for the same
goods/services. 
- Businesses should not discriminate  when marketing their products
and services in different areas. 
Any other relevant answer related to the right of equality in the consumer
market place according to the CPA.
Right (2)
Explanation (2)
Submax. (4)

NOTE: Mark the first FOUR (4) only Max. (16)

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5.4 Impact of CPA on businesses

Positives/Advantages
- Enables businesses to resolve disputes fairly  through the National Consumer
- Commission/Consumer Court/Industrial ombudsman. 
- Businesses may build a good image  when they ensure that consumer rights
are not violated. 
- May gain consumer loyalty/improved profitability , if they comply with the
CPA. 
- Businesses are less likely to have court cases against them  for consumer
rights violations. 
- Businesses may be protected  if they are regarded as consumers. 
- They may be safeguarded  from dishonest competitors. 
- Prevents larger businesses  from undermining smaller ones. 
Any other relevant answer related to the positive impact/advantages of the CPA on
businesses.

AND/OR

Negatives/Disadvantages
- Businesses have to replace/repair faulty items/refund money  if the fault
occurs within six months after purchase. 
- Confidential business information  may become available to competitors. 
- Consumers can take advantage of businesses  and return goods when it is not
necessary to do so. 
- Processes and procedures required by the CPA  can be expensive and time
consuming. 
- Businesses may feel unnecessarily burdened  by legal processes. 
- Penalties for non-compliance  may be very high. 
- Staff need to be trained/Legal experts need to be consulted , which can
increase costs. 
- Many business documents need to be simplified/revamped at extra cost ,
as consumers have a right to receive contracts in simple/understandable
language. 
- Administration costs increase , as legal contracts need to be worded in plain
language/pitched at the level of the consumer. 
- Businesses may need insurance  against claims from consumers /Provisions
in the Act increase the risks  for unforeseen claims and law suits. 
- Supply chain management in stock levels will have to change , as defective
goods have to be replaced within six months at the request of the customer. 
- Information technology systems need to be improved as the retailer must keep
more detailed records of interactions with consumers/be able to report to the
National Consumer Commission. 
Any other relevant answer related to the negative impact/disadvantages of the CPA
on businesses. Max. (12)

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5.5 Ways in which businesses could comply with the CPA

- Display the business’s name on all business documentation, for example,

letterheads/invoices/contracts. 
- Allow consumers a five-day cooling off period in the sales agreement. 
- Disclose the prices of all products that are on sale. 
- Ensure that the quality of the goods and services is standardised and identical
for all consumers. 
- Comply with requirements regarding the display of information on labels/
packaging, for example smoking is hazardous for pregnant women. 
- Conduct training with all staff members/stakeholders on the CPA. 
Any other relevant answer related to ways in which businesses could comply with the
CPA. Max. (8)

5.6 Conclusion

- The CPA promotes good business practices between suppliers of goods and
services and consumers of these goods and services. 
- Businesses should promote awareness/compliance of the consumer rights as
stipulated in the CPA. 
- Businesses must be knowledgeable about the impact of the CPA to avoid
unnecessary litigation and a negative public image. 
- Consumer rights enable businesses to guard against the violation of these
rights. 
Any other relevant conclusion related to the purpose of the CPA/rights of consumers
in terms of the CPA/impact of the CPA on businesses/ways in which businesses could
comply with the CPA. Any (1 x 2) (2)
[40]

BREAKDOWN OF MARK ALLOCATION

DETAILS MAXIMUM TOTAL
Introduction 2
Purpose of the CPA 10
Rights of consumers in terms of the CPA 16
Max. 32
Impact of the CPA on businesses 12
Ways in which businesses can comply with the CPA 8
Conclusion 2
INSIGHT
Layout 2
Analysis/Interpretation 2 8
Synthesis 2
Originality/Examples 2
TOTAL MARKS 40
LASO – For each component:
Allocate 2 marks if all requirements are met.
Allocate 1 mark if only some of the requirements are
met.
Allocate 0 marks where requirements are not met at all.

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QUESTION 6: BUSINESS OPERATIONS (HUMAN RESOURCES FUNCTION)

6.1 Introduction

- The selection procedure involves a series of steps followed to gather necessary

information for making appointment decisions. 
- The interviewer must be well conversant with the job analysis to develop
relevant questions for the interview. 
- Fringe benefits are offered to employees regardless of regular wages/salaries/
extra compensation over and above regular salaries. 
- The legal requirement of the employment contract provides guidelines on the
contents that must be included in the contract. 
Any other relevant answer related to the selection procedure/role of the interviewer
before the interview/impact of fringe benefits on businesses/legal requirements of the
employment contract. Any (2 x 1) (2)

6.2 Selection procedure

OPTION 1
- Determine fair assessment criteria on which selection will be based. 
- Conduct preliminary interviews to identify suitable applicants. 
- Applicants must submit the application forms/curriculum vitae and certified
copies of personal documents/IDs/proof of qualifications. 
- Sort the received documents/CVs according to the assessment/selection
criteria. 
- Screen/Determine which applications meet the minimum job requirements and
separate these from the rest. 
- Preliminary interviews are conducted if many suitable applications were
received/to identify suitable applicants. 
- Reference checks/Vetting process should be made/followed to verify work
experience/criminal records/credit records/qualifications on the CV. 
- Compile a shortlist of potential candidate’s identified. 
- Shortlisted candidates may be subjected to various types of selection tests such
as skills tests. 
- Invite shortlisted candidates for an interview. 
- A written offer is made to the selected candidate. 
- Inform unsuccessful applicants about the outcome of their application./Some
adverts indicate the deadline for informing only successful candidates. 
Any other relevant answer related to the selection procedure as a human resource
activity.

OR

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OPTION 2
- Receive documentation such as application forms and sort it according to the
criteria of the job. 
- Evaluate CVs and create a shortlist/screen the applicants. 
- Check information in the CVs and contact references. 
- Conduct preliminary sifting interviews to identify applicants who are not suitable
for the job, although they meet all requirements. 
- Assess/Test candidates who have applied for senior positions/to ensure the
best candidate is chosen. 
- Conduct interviews with shortlisted candidates. 
- Offer employment in writing to the selected candidate(s) 
Any other relevant answer related to the selection procedure as a human resource
activity. Max. (12)
NOTE: Do not award marks for option 2 facts that were mentioned in option 1.

6.3 Role of the interviewer before the interview

- Book and prepare the venue  for the interview. 

- Inform all shortlisted candidates about the date  and place of the interview. 
- Set the interview date  and ensure that all interviews take place on the same
date, if possible. 
- Notify all panel members conducting the interviewing  about the date and
place of the interview. 
- The interviewer should develop a core set of questions  based on the
skills/knowledge/ability required. 
- Check/Read the application/verify the CV  of every candidate for anything that
may need to be explained. 
- Plan the programme for the interview  and determine the time that should be
allocated to each candidate. 
Any other relevant answer related to the role of the interviewer before the interview.
Max. (12)

6.4 Impact of fringe benefits on businesses

Positives/Advantages
- Attractive fringe benefit packages  may result in higher employee
retention/reduces employee turnover. 
- Attracts qualified/skilled/experienced employees  who may positively
contribute towards the business goals/objectives. 
- It increases employee satisfaction/loyalty  as they may be willing to go the
extra mile. 
- Improves productivity  resulting in higher profitability. 
- Businesses save money  as benefits are tax deductible. 
- Fringe benefits can be used as leverage  for salary negotiations. 
Any other relevant answer related to the positive impact/advantages of fringe benefits
on businesses.

AND/OR

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Negatives/Disadvantages
- Fringe benefits are additional costs  that may result in cash flow problems. 
- Administrative costs increase  as benefits need to be correctly recorded for tax
purposes. 
- Decreases business profits , as incentive/package/remuneration costs are
higher. 
- It can create conflict/lead to corruption  if allocated unfairly. 
- Workers only stay with the business for fringe benefits , and may not be
committed/loyal to the tasks/business. 
- Businesses who offer employees different benefit plans may create
resentment  to those who receive less benefit resulting in lower productivity. 
- Businesses who cannot offer fringe benefits  fail to attract skilled workers. 
- Businesses have to pay advisors/attorneys  to help them create benefit plans
that comply with the law. 
- Errors in benefit plans  may lead to costly lawsuits/regulatory fines. 
Any other relevant answer related to the negative impact/disadvantages of fringe
benefits on businesses. Max. (12)

6.5 Legal requirements of the employment contract

- The employer and employee/Both parties must sign the contract. 

- Employer and employee must agree to any changes to the contract. 
- No party may unilaterally change aspects of the employment contract. 
- The remuneration package/including benefits must be clearly indicated. 
- The employment contract may not contain any requirements that are in conflict
with the BCEA. 
- Aspects of the employment contract can be renegotiated during the course of
employment. 
- The employer must explain the terms and conditions of the employment contract
to the employee. 
- Conditions of employment/duties/responsibilities of the employees must be
stipulated clearly. 
- All business policies, procedures and disciplinary codes/rules can form part of
the employment contract. 
- The employer must allow the employee to thoroughly read through the contract
before it is signed. 
- The employment contract should include a code of conduct and code of
ethics. 
Any other relevant answer related to the legal requirements of the employment
contract. Max. (10)

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6.6 Conclusion

- The selection procedure serves as a guideline on how to eliminate unsuitable

candidates and appoint competent candidates for available posts. 
- A well-prepared interviewer should conduct research on relevant questions that
should be asked during the interview. 
- Offering fringe benefits is a great way to motivate employees to work hard
towards achieving business goals. 
- Businesses should align the employment contract according to the requirements
of the BCEA to avoid unnecessary legal action. 
Any other relevant conclusion related to selection procedure/role of the interviewer
before the interview/impact of fringe benefits/legal requirements of the employment
contract. Any (1 x 2) (2)
[40]

QUESTION 6: BREAKDOWN OF MARK ALLOCATION

DETAILS MAXIMUM TOTAL

Introduction 2
Selection procedure as a human resources activity 12
Role of the interviewer before the interview 12
Max. 32
Impact of fringe benefits on businesses 12
Legal requirements of the employment contract 10
Conclusion 2
INSIGHT
Layout 2
Analysis/Interpretation 2 8
Synthesis 2
Originality/Examples 2
TOTAL MARKS 40
LASO – For each component:
Allocate 2 marks if all requirements are met.
Allocate 1 mark if only some of the requirements are
met.
Allocate 0 marks where requirements are not met at all.

TOTAL SECTION C: 40

TOTAL: 150

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