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NATIONAL SENIOR CERTIFICATE EXAMINATION

NOVEMBER 2020

BUSINESS STUDIES

EXAMINATION NUMBER

Time: 3 hours

300 marks

PLEASE READ THE FOLLOWING INSTRUCTIONS CAREFULLY

1.

This question paper consists of 32 pages. Please check that your question paper
is complete.

2.

All questions are COMPULSORY.

3.

Read the questions carefully.

4.

Answer ALL the questions on the question paper and hand this in at the end of the
examination. Remember to write your examination number in the space provided
on the question paper.

5.

Demonstrate insight, where applicable, when answering the questions. You may
refer to any petrol station/garage (including food courts and retail outlets
associated with petrol stations) that you have studied this year.

6.

You are advised to pay particular attention to the use of language and the
allocation of marks.

7.

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

8.

TWO blank pages (pages 31 and 32) are included at the end of the question paper. If
you run out of space for a question, use these pages. Clearly indicate the question
number of your answer should you use this extra space.

Allocation of marks

Q 1

Q 2

Q 3

Q 4

Q 5

Q 6

Q 7

Total

Please paste the barcoded

label here

TOTAL
MARKS

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SECTION A

QUESTION 1

Indicate the most correct answer by writing the letter of the alternative you have
chosen in the space provided at the bottom of each page.

1.1

The acronym SWOT stands for...

A

strategy, working capital, objectives, and tactics

B

strengths, weaknesses, opportunities, and threats

C

strengths, working capital, opportunities, and tactics

D

strategy, weaknesses, objectives, and threats

(2)

1.2

A social challenge that a business might face is:

A

Exchange rates

B

A contagious disease such as Covid-19

C

A new president of the country

D

A new entrant to the market

(2)

1.3

When looking at solving business challenges, which one of the following
could be a benefit to a new Engen garage?

A

The ability to introduce personalised services.

B

Creativity with regard to designing practical uniforms for employees.

C

A well-established brand.

D

The right to adjust petrol prices according to the demand.

(2)

1.4

Which one of the following sustainability factors is part of the "triple bottom
line" (integrated) reporting measurement tool?

A

Political sustainability

B

Environmental sustainability

C

Technical sustainability

D

Competitive sustainability

(2)

1.5

Which of the following factor(s) is/are considered to be a method of achieving
environmental sustainability?

A

Recycling of waste products.

B

Using resources optimally to minimise wastage.

C

Adopting "green" technologies.

D

All of the above.

(2)

1.1

1.2

1.3

1.4

1.5

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1.6

What does the acronym GRI stand for?

A

Global Recycling Insurance

B

Global Representation Institution

C

Global Reporting Initiative

D

Global Ratio Index

(2)

1.7

Which one of the following strategies would be considered to be a growth
strategy?

A

Differentiation

B

Focus market

C

Market development

D

Liquidation

(2)

1.8

A cashier at a business outlet was dismissed for incapacity. This implies
that …

A

the employee was participating in an illegal strike.

B

the employer made the working environment impossible for the
employee to tolerate.

C

the employee could no longer maintain satisfactory work performance.

D

a transgression of a rule took place.

(2)

1.9

Load shedding presents a(n) … challenge to Eskom.

A

political

B

technological

C

economic

D

All of the above

(2)

1.10 An increase in the VAT rate is a challenge in the … environment.

A

internal

B

macro

C

market

D

international

(2)

1.11 … is done to determine how many people are required for the amount of

work that needs to be done and the skills needed.

A

Performance appraisal

B

Job description

C

Manpower planning

D

A feasibility study

(2)

1.6

1.7

1.8

1.9

1.10

1.11

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1.12 A … is a letter of credit that Sasol Ltd sells in order to raise borrowed

capital.

A

fixed deposit

B

share

C

debenture

D

mortgage bond

(2)

1.13 Sampling of products, discount coupons and buy-one-get-one-free offers

are examples of …

A

sales promotions.

B

publicity.

C

distribution channel barriers.

D

environmental challenges.

(2)

1.14 The Production Department of Caltex ensures quality of performance

through the use of … in its oil production process.

A

benchmarking

B

job specification

C

marketing policy

D

forward integration

(2)

1.15 … means that Sasol can prove that they stand to lose financially if their

assets should be damaged in a fire.

A

Excess

B

Contractual capacity

C

Insurable interest

D

Proximate clause

(2)

1.16 When a Puma garage owner uses ethical means to pay less tax, this refers

to…

A

tax avoidance

B

bottom-line tax

C

tax evasion

D

integration tax

(2)

1.17 A(n) … leadership style is displayed when the fuel-forecourt manager helps

employees to understand the meaning of their work and takes the time to
explain to the workers "why they matter".

A

transactional

B

autocratic

C

laissez-faire

D

transformational

(2)

1.12

1.13

1.14

1.15

1.16

1.17

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1.18 A code of conduct for a petrol garage outlines the …

A

position of employees in the management structure of the organisation.

B

challenges being faced from an environmental scan.

C

phases that a product goes through during the production process.

D

expected behaviour of employees for proper business practice.

(2)

1.19 A garage owner can improve his relationship with his supplier by …

A

ensuring prompt payment for services.

B

collaborating with other garage owners to boycott the supplier.

C

delaying payment to improve the supplier's liquidity.

D

decreasing their CSR contribution to the supplier.

(2)

1.20 If the South African rand depreciates, it is a(n) … for exporters and a(n) …

to importers.

A

threat, opportunity

B

opportunity, threat

C

threat, threat

D

opportunity, opportunity

(3)

1.21 A customer has a high level of power when …

(i)

the business has limited suppliers.

(ii)

the business only has a few large customers.

(iii)

there are a large number of substitute products in the market.

(iv)

government regulates access to the market.

Choose the right combination:

A

(i), (ii), (iii) and (iv)

B

(ii)

C

(i) and (iii)

D

(iv)

(3)

1.22 Which of the following statement(s) is/are TRUE?

(i)

VAT is a legal deduction on an employee's salary.

(ii)

A medical examination is a legal requirement when applying for a
job.

(iii)

Retention is the process of selecting the best candidate for the job.

(iv)

Skills development is part of manpower planning.

Choose the right combination:

A

(i), (ii), (iii) and (iv)

B

(i) and (iii)

C

(iii) and (iv)

D

(iv)

(3)

1.18

1.19

1.20

1.21

1.22

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1.23 Complete the missing information in the following paragraph:

When the demand for Engen shares is high, the market price of the shares
will most probably 1 , because shareholders would expect a good
annual 2 and 3 on his/her investment.

Choose the right combination:

1

2

3

A

decrease

interest

gearing

B

increase

dividend

capital growth

C

remain constant

bonus

tax exemption

D

not be affected

return

liquidity

(3)

1.23

[50]

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QUESTION 2

Choose the terms from the tablebelow that best match the statements that follow.

Write only your answer in the space provided in each statement. There is only one correct
answer to each statement and each option may only be used once.

retrenchment

financial perspective

WPF

growth

service perspective

mission statement

global

focused

low cost

solvency

vision

code of ethics

joint venture

differentiation

disinvestment

TQM

business culture

induction

acid test

business venture

2.1

A _______________________ is a business agreement in which two or more
businesses pool their resources for the purpose of achieving a mutually beneficial
goal.

2.2

A _______________________strategy will focus on cheaper raw materials and
efficiency in the production process.

2.3

In the Balanced Scorecard, the _______________________ focuses on maximising
utilisation of assets and minimising costs to create shareholder value.

2.4

The _______________________ provides a description of what the business does
or the purpose the business serves.

2.5

The _______________________ consists of employee representatives and
management.

2.6

An umbrella concept defining the morals, principles, and values under which a
business operates is a(n) _______________________.

2.7

The _______________________ ratio is a measure of Engen's liquidity.

2.8

_______________________________ involves the process where all employees
consider how their actions will impact on the overall customer satisfaction.

2.9

_______________________ is the process of orientating all new employees to the
business.

2.10 A manager who shows an understanding that the business world is interrelated and

that suppliers may originate from a range of countries is displaying a
_______________________ management competency.

2.11 Sasol, who regularly redevelops their products and services to offer something

unique, is using a _______________________ strategy.

2.12 The _______________________ of an organisation refers to the common

understanding about the way in which business is conducted on a daily basis.

[24]

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QUESTION 3

Choose the correct term in brackets that will make the statement TRUE. Underline your
answer.

3.1

The (customer / learning-and-growth) perspective looks at how value can be
created in the business by continually improving the performance of employees.

3.2

(Collaboration / Delegation) ensures allparties try to work with one another to
achieve a mutual goal.

3.3

The aim of the (SETA / CCMA) is to create a platform to resolve labour disputes
that originate from unfair labour practice.

3.4

(NEDLAC / LACNED) strives to promote the goals of economic growth and social
equity by involving role players such as government, community groups, trade
unions and businesses.

3.5

Brand (stretching / extension) is the process of using an existing brand name for
new products or services that may not seem related.

3.6

When the Human Capital Department of Sasol tries to attract the most experienced
talent to fill vacant posts, they are involved in (recruitment / retrenchment).

3.7

Contributions to the Road Accident Fund are supplemented through the sale of
(advertising space / petrol).

3.8

A (succession plan / performance appraisal) is a tool used bya manager to
identify skills gaps.

3.9

(Organisation / Motivation) refers to a manager arranging activities to ensure all
resources contribute to the success of the business.

3.10 The (Consumer Protection Act / Advertising Regulatory Board) ensures that

the seller acts in a fair manner when goods and services are supplied to customers.

3.11 The higher the risk associated with an investment, the (higher / lower) the return

that the investor will expect on the investment.

3.12 In a crisis situation it is advisable for management to use a(n) (autocratic /

democratic) leadership style.

3.13 During a (go-slow / work-to-rule) workers do no more or less than the minimum

requirements described in their contract of employment.

[26]

100 marks

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SECTION B

Use the mark allocation as a guide to the length of your answers.

QUESTION 4

At Engen we strive to always operate in accordance with good business
ethics and in a safe and environmentally responsible way, not simply to
comply with legislation, but because it is the right thing to do. Ethical
considerations and our corporate values inform all our business decisions.

[Source: <http://www.engen.co.za/about/ethics 10/10/2019>]

4.1

Explain the term corporate governance.

(2)

4.2

Explain how the following principles of good corporate governance could be used to
ensure that Engen is acting ethically:

Transparency

Independence

Fairness

(9)

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4.3

Answer the following questions about the duties of the Engen company
directors:

(a)

List three possible duties/responsibilities of the Engen company directors:

(3)

(b)

Should the directors of Engen not fulfil their duties/responsibilities, what
negative consequences could this have for the company?

(4)

(c)

Suggest strategies that could be used by Engen to ensure that the directors
of the company fulfil their duties/responsibilities.

(4)

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4.4

Which index identifies businesses listed on the JSE that focus on good corporate
governance principles?

(2)

4.5

Complete the flow diagram below with reference to corporate social responsibility
(CSR).

(a)

Identify FOUR of Engen's stakeholders.

(4)

(b)

Identify a demand that each of these stakeholders could make on Engen.

(4)

(c)

What could Engen expect to gain from meeting the demands of these
stakeholders?

(3)

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4.6

Engen will face a number of different challenges while implementing its CSR
strategy. Assist Engen by answering the questions below:

(a)

Discuss TWO challenges that Engen could face while implementing its CSR
strategy.

(4)

(b)

List THREE creative problem-solving tools that Engen could use to assist
them in solving the challenges identified in (a) above.

(3)

(c)

Explain how Engen could use ONE of the tools identified in (b) above to
address a possible challenge.

(4)

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4.7

What is the significance of the King Reports in the South African economy?

(4)

[50]

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QUESTION 5

5.1The marketing function at BP South Africa

5.1.1 Discuss the impact of social media on the marketing efforts of a petrol station.

(6)

5.1.2 Explain how BP South Africa or any competing brand can use the "people

policy"as part of the marketing mix to create or maintain its competitive
advantage.

(4)

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5.1.3 Discuss the advantages of franchising for a petrol station franchisor.

(4)

5.1.4 Refer to the buyer-stimulus response model and describe the economic

factors that could influence the buying decision of BP customers.

(4)

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5.1.5 Describe the criteria that the Marketing Department of BP could use when

evaluating the effectiveness of their advertisements.

(4)

5.2Performance management at BP South Africa

5.2.1 Discuss how BP South Africa could use the solvency ratio as a measure of

quality of performance.

(4)

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5.2.2 Give possible suggestions on how the Production Department of BP South

Africa could improve their quality of performance.

(6)

5.2.3 Evaluate the effectiveness of BP employees using self-evaluation as a

means of improving their quality of performance.

(4)

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5.3Conflict management at BP South Africa

5.3.1 Describe the possible outcomes of dysfunctional conflict.

(7)

5.3.2 Discuss how BP could resolve various conflict situations in the business.

(7)

[50]

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QUESTION 6

6.1

Refer to the following extract where applicable when answering the questions that
follow:

Careers at Sasol

Explore existing opportunities to move your career to the next level. Find out how you
can add value to the Sasol Team.

Sasol's recruitment process does not include unsolicited offers of employment and also
does not require advance payments from candidates. Sasol will only contact you if you
have applied for a vacancy through the career website, the official Sasol LinkedIn page, if
you were contacted by one of our authorised recruitment personnel or local recruiting
office.

Sasol will not ask you to send personal banking information via email. If you suspect fraud,
you are encouraged to alert Sasol by sending an e-mail to [e-mail].
Alternatively, please report such activity to your local law enforcement authorities.

[Adapted from <https://www.sasol.com/careers/join-our-team> Downloaded Dec 2019]

6.1.1 Identify THREE recruitment sources mentioned in the extract above that

Sasol uses.

(3)

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6.1.2 What advantages will the use of external recruitment have for Sasol's

Human Capital Department?

(4)

6.1.3 There is a vacancy for a manager in a Sasol forecourt. Describe the criteria

that you would use to select an appropriate candidate for the vacancy.

(4)

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6.1.4 The extract shows that Sasol is committed to ethical business practices. Use

evidence from the extract and any other examples to describe how Sasol
could demonstrate this commitment.

(5)

6.2

Describe how the following managerial competencies could assist Sasol in
maintaining a competitive advantage in the fuel industry. Give at least two
examples to support each answer.

6.2.1 Organisational awareness

(5)

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6.2.2 Customer service orientation

(5)

6.3

Describe the factors that Sasol would consider when completing a competitor
analysis as part of formulating its marketing strategy.

(5)

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6.4

Discuss how planning as a management task could help a garage and its forecourt
to achieve the organisation's goals. Give at least two examples to support your
answer.

(5)

6.5

Evaluate the effectiveness of Sasol having fixed property as part of their investment
portfolio.

(5)

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6.6

Explain why investing in collectibles could be a high-risk investment.

(4)

6.7

"Insurance is the answer to risk management."
Comment on whether it is a good policy for Sasol to have insurance. Give examples to
support your answer.

(5)

[50]

150 marks

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SECTION C

The following aspects will be considered when marks are allocated in this section:

 Format:

– The CORRECT format must be used, i.e. business report.
– Where applicable, include an introduction and conclusion.
– Use headings and subheadings 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 appropriate sequencing.

QUESTION 7

Study the following sources before answering the question that follows:

SOURCE A

[Source: <https://www.workforcesoftware.com/blog/warning-what-happens-when-employers-violate-labor-

laws/ 10/10/2019>]

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SOURCE B

[Source: <https://www.cliffedekkerhofmeyr.com/en/news/publications/2018/Employment/employment-alert-3-

december-amendments-to-labour-legislation-signed-into-law-by-the-president.html> 10/10/2019]

The South African petrol station (petrol garage and forecourt) industry has grown
considerably in recent years. In fact, it is one of the few sectors to weather the
downgrading of the South African economy by international rating agencies, the rand
volatility and the negative growth rates experienced in recent times.

Despite this positive pattern of growth, the industry and individual petrol stations still have
to deal with the challenges presented by various legal acts.

Required:

You have been asked to write a business report where you:
 Identify possible labour-related issues within the petrol station (petrol garage and

forecourt) industry.

 Suggest strategies on how a manager should deal with these labour-related issues.

Hint: Consider the purpose and implications of the various labour legislation acts as part
of your answer.

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50 marks

Total: 300 marks

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ADDITIONAL SPACE TO ANSWER QUESTIONS. REMEMBER TO CLEARLY
INDICATE AT THE QUESTION THAT YOU USED THE ADDITIONAL SPACE TO
ENSURE THAT ALL ANSWERS ARE MARKED.

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