JEPPE HIGH SCHOOL FOR BOYS



Jeppe High School for Boys266446023787300Grade: 11Subject: Business StudiesDate: 6 February 2015Duration: 1 HoursTotal Marks: 100Examiner: B. GitttinsModerator: D. Jackson ; C. LilleyNumber of Pages: 5 Instructions: Complete the front cover of your answer booklet.Answer all questions in the answer booklet provided.Number in the middle of the page.Please follow instructions carefully on question selections.Rule off after each section.The following are not allowed in the examination room: cell phones,school bags, ipods (or similar devices), books, dictionaries, notes, sketches or paper.Only the official examination material distributed by the invigilator is allowed.SECTION A20 MARKSThis section is compulsory. Answer the questions on the Answer sheet provided.QUESTION 1.1 (5 X 2 = 10)State which of the following statements is FALSEAThe business has no control over the Macro EnvironmentBContemporary legislation is a challenge of the Macro EnvironmentCChanges in consumer behaviour is a component of the Micro EnvironmentDThe Micro Environment is also known as the Internal EnvironmentIf the Rand: Dollar exchange rate improves, this will have a ……… impact on exporters.ANegativeBPositiveCNeutralDImpossible to tellWholesalers who purchase goods from a clothing manufacturer would be part of the clothing manufacturers _____________ environment: AmicroBmarketCmacroDtechnologicalIn order to meet the challenge of changing technology, businesses must …Acreate more working daysBproduce more productsCregularly train staff membersDemploy more workersThe high rate of HIV in South Africa is an example of which Macro force?APoliticalBHealthCSocialDSocial ResponsibilityQUESTION 1.2GENERAL VOCABULARY (5 X 2 = 10)Choose the correct words and write it on the Answer sheet:Prime lending rate, Repo Rate, Basic Conditions of employment, Takeover, Environmental scanning, External Environment, Inflation rate, Residual value, par value, Rationalisation, Concentration, Merger, Strike, Go-slow, Exchange Rate.The process of observing the environment, gathering information and then using that information to make decisions.The amount of interest the Commercial Banks charge the public on the money lent to them.A defensive cost cutting strategy.The rate indicates the increase in the price of consumer goods from one year to the next.When employees come to work and comply with their contractual obligations but frustrate management by being unproductive and reducing productivitySECTION B40 MARKSAnswer any TWO of the THREE questions QUESTION 2 BUSINESS ENVIRONMENTS MICRO, MARKET, STRATEGIES [20]Pick & Eat Market is a market type grocery store chain opened by the Mapoe Brothers in 2012. The stores aim to sell fresh food, ranging from vegetables, fruit, and meat to grocery products as well as ready made fresh meals. Chris Mapoe said the idea came in to merge the grocery store concept with a restaurant or take and go shop. There are currently 8 stores in operation and are run by on site managers. Although the store saw strong success in its first two years as well as higher than expected growth, the recent financial results concluded in a loss and have suggested a poor year for Pick & Eat.Chris Mapoe is unsure as to why the stores have struggled in 2014, but seems to think that the strong competitors in the market have begun winning back their customers due to better marketing. He also admitted that the promise of the freshest food is sometimes a challenge. The stores head purchasing manager was also recently head hunted by one of the stores major competitors, this has resulted in poor buying habits as the new manager has not been as efficient.The inflation rate in the country has been increasing at an alarming rate. Staff are demotivated due to constant customer complaints about poor food quality and increasing prices. Briefly discuss how Pick & Eat Market could improve their business position in the Market Environment with regard to:Competitors (4)Consumers (4) The Purchasing function has been a massive issue for the business. 2.2.1 What business environment is this challenge from? (2) Why is purchasing function so important to Pick & Eat? (6)What is the name of the index most commonly used to measure inflation in South Africa? (2)As a business expert you advise the Mapoe brothers that at this stage it would be smart to close down a number of the weaker branches and try make a success of the remaining ones. What is the name of this strategy? (2)QUESTION 3 (BUSINESS ENVIRONMENTS, CHALLENGES AND STRATEGIES) [20]GEOTECH is specialist mining consultancy company that advises Mining companies on specialist issues. GEOTECH employs expert geologists that compile data on the earth and assist mining companies with this information.GEOTECH has been affected by the platinum strikes of the last two years that has led to a massive decrease in mining activity by their clients. The owners have also blamed uncertain political conditions in South Africa, particularly around nationalization, high inflation and the emergence of competitors in the international mining community. The company has recently lost a large UK investor, and the future of the business is uncertain despite the weakening exchange rate.3.1Name and explain three challenges of the business environment that GEOTECH are experiencing as mentioned in the above article that led to their record loss. Include which environment the challenge belongs to. Use a table as per below: (6)Business Challenge mentioned in the scenarioBusiness Environment3.2A business needs to learn about its environment by gathering information in order to identify, forecast and adapt to challenges. Briefly describe two ways of gaining this information. (4)3.3GEOTECH senior management are meeting to discuss strategies that they can implement in their MICRO environment to return to profitability. Suggest THREE such plans and strategies that senior management could implement (6)3.4In the above article, why does it say that “despite the weakening exchange rate”? Would a weak exchange rate typically benefit, or hamper the clients (mining companies) of GEOTECH. Explain why? (4)QUESTION 3 MACRO ENVIRONMENT, ADAPTING, SOCIAL RESPONSIBILTY [20]Robert De Mornay owns his own transport company in a rural town. The business owns three minibus taxi (that transport people around town) and a bus (that transports large groups to sports and church events).Jarred Wood who is a friend of Robert owns a furniture moving business, and owns three trucks.3.1Explain the concept of an ‘alliance’ and an ‘acquisition’. (4)3.2Robert would like to start furniture removals to add to his existing business. Describe 3 advantages of entering a merge deal with Jared’s business (6)3.3What is a ‘hostile takeover’? Give an example referring to the above case study. (4)3.3Both the business owners are worried about the state of the community.3.3.1Describe two social responsibilities of the business. (4)3.3.2Name two advantages of Corporate Social Responsibility for a business (2)SECTION C:ESSAYS (Answer ONE of the two essays.) 40 MARKS QUESTION 5MACRO ENVIRONMENT: BUSINESS STRATEGIESGreen’s Service Station is a fuel and service station belonging to Tyrone. It is situated on the N3 motorway between Heidelberg and Durban, a prime location with large traffic numbers. Tyrone was doing very well and made a large profit, until all the franchise-garages such as Engen and Ultra City opened up. Tyrone will have to think of a way to attract customers to his service, station; otherwise he might just as well close his business.Besides that, some of the other challenges he has to face include:Employees asking for a wage increase.He has a loan with Standard bank and the interest rate has increased to 9%.Tyrone’s supplier for fuel is SASOL. SASOL increased their selling price for fuel.Tyrone cannot increase the fuel price he charges, because the government fixes the price of fuel on the first Wednesday of every month.E-tolls on the motorways in Gauteng have a negative impact of drivers and many of them have decided to find alternative routes down to Durban.Tyrone has also realised that his major suppliers tend to deliver to him last which often means petrol shortages and unhappy customers.Write an essay in which you:Identify the challenges raised by both management and employees and classify them according to the THREE business environments.Suggest ways or strategies that Mr. Green can use to control or overcome these challenges.You may use a table for the aboveBusiness environmentStrengths and challengesStrategiesDiscuss the extent of control that Tyrone has over the three business environments and, make recommendations to Green Service Station on whether it should continue to operate in this sector.QUESTION 6BUSINESS ENVIRONMENTSJACOBS SHUTTLE SERVICESIn 2013 Keagan and Dieter started the JACOBS SHUTTLE SERVICES in Soweto. They obtained a loan from Dynamic Bank. There is a large gap in the market for transport in the area and both Keagan and Dieter have studies Business Management.During the year the Governor of the South African Reserve Bank announced an increase in the interest rate by 1%. The price of petrol increased by 21 cents per litre in June 2013 because of an increase in the international price of crude oil.JACOBS SHUTTLE SERVICES had no choice but to increase their rate to R5 per kilometer. The Department of Education has informed JACOBS SHUTTLE SERVICES that it was going to discontinue the use of its services.The Department of Education stated that they are going to use Wienand’s Travelers which charges R4,00 per kilometre.Write an Essay in which you:Compile a brief Swot Analysis for JACOBS SHUTTLE SERVICE. Identify and classify the challenges raised into the THREE business environments. Also analyse the impact of these variables on Jacobs Shuttle Service. Suggest strategies that Jacobs Shuttle Service can use to overcome these challenges.Make recommendations to Veggie Field on whether it should continue to operate in this sector.Structure your answer in a table format as indicated below ChallengeBusiness environmentImpact Strategy ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download