BUSINESS STUDIES MEMO FOR 2025 MARCH GRADE 11

Section A

QUESTION 1

1.1

1.1.1.D√√

1.1.2.A√√

1.1.3.C√√

1.1.4.B√√

1.1.5.D√√

(2X2)10

1.2

1.2.1. Demographics√√

1.2.2. Strike√√

1.2.3. Merger√√

1.2.4. Networking√√

1.2.5. White collar crime√√

(2x2)10

Total marks 20

QUESTION 2

2.1

Suggested answers.
Challenges business
(2.1.1) environment(2.1.2)
CCC has employees who need Micro-environment √
a lot of supervision to complete
their tasks satisfactory. √
Changes in consumer behavior Market environment √
and spending habits present an
on-going challenge to the
business. √
The government has Macro environment √
increased import tariffs, (3x1)3
making it difficult to continue
importing designs from China.
√
(3x1)3

2.2 Reasons why businesses have full control over the micro environment
 ● Business owners and managers have a great deal of control√ over the
internal/micro environment of business, which covers day-to-day decisions. √
● They choose the suppliers they purchase/which employees√ they hire/the products
they sell, and where they sell those products. √
● They use their skills and resources to create goods √and services that will satisfy
existing and prospective customers. √
● Establish and revising its vision, mission statement, goals √and objectives in line
with current trends. √

2.3 Shortage of supplier

 Businesses that experience shortage of supply may lose customers √as they may
buy from other businesses. √
 Raw materials may be unavailable √when drought cause poor harvest. √
 Imported goods may not arrive √when the country of origin has transport/political
problems. √
 Every business needs raw materials to produce its goods√ or services. Without the
availability of raw materials, a business cannot produce its product or services to
meet the demands of its target market√

2.4 Ways in which businesses can be involved in the macro environment

● Influencing suppliers by signing long term contracts. √√

● Create job opportunity for the people in their communities√√
● Undertake social responsibility programmes to improve the welfare of people in the
community√√
● Improve exports markets by expanding into new African markets. √√
● Undertake scientific research to improve traditional medicines√√
● Enter into Private Public partnership to provide infrastructure in the country. √√
●
(total marks 20)

Question 3

3.1

3.1.1 Tertiary sector√√ – Ms Makatesi is the owner of Fix It, a television repair shop. √

3.1.2 Poverty, √ unemployment√ and crime. √

3.2 The negative impact of piracy on businesses

● It can undermine the music/movie industry√ as they lose money. √

● Drives up the prices of products in√ order to compensate for the loss in sales.
● Leads to job losses √in the industry √
● The music industry feels reluctant to develop √new talents as the element of risk
is too high. √
● May cause damage√ to the value of the businesses. √
● The businesses lose out on sales √and income which in turn threatens industry√
● The businesses lose √out on productivity and profits. √
3.3 Direct influence on the environment and social responsibility

● Direct influences on businesses usually results√ from legislation/trade agreements

and competitor strategies. √
● Successful businesses and their environment adapt√ to the unavoidable influences
by creating a competitive environment. √
● Businesses need to investigate alternative environmental friendly production
techniques and create environmental awareness√. Businesses can form joint
ventures with other businesses and the government to protect the environment
through conservation and presentation√.
Businesses also need sustainability CSI programmes in order to improve the
communities in which they operate.

3.4. Projects that businesses can undertake as part of their social responsibility
programmes:

● Businesses must allow employees to get involved in social development

programmes. √√
Businesses must protect the environment and participate in community upliftment
programmes. √√
● Engage in environmentally friendly campaigns such as recycling or re-using scarce
resources. √√
● Businesses must support less fortunate people, by providing donations to charity
organisations. √√
● HIV and Aids awareness programmes. √√
(Total marks 20)

Question 4

4.1 Primary, √ Secondary √and Tertiary sector. √

4.2. Examples of contemporary legislation that may affect business operations

 National Credit Act √

 Consumer Protection Act√
 Employment Equity Act√
 Broad Based Black Economic Empowerment Act√
 Basic Conditions of Employment Act√
 Labour Relations Act√
 Skills Development Act√
 Compensation for Occupational Injuries and Diseases Act/COIDA√

4.3 Benefits/advantages of businesses that are involvement in macro environment

● Businesses will gain good publicity √and so attract and retain loyal customers√
● They will attract and retain skilful √employees in their communities √
● Government tenders and contracts are normally √given to businesses that are
involved in the macro environment. √
● Businesses that support their communities √normally get some tax rebates. √
● Businesses that get involved in the macro environment √can anticipate likely
challenges and devise strategies to turn them into opportunities. √
● Top investors are attracted to businesses√ that are involved in the macro
environment. √
 ● It prevents environment damage√ by decreasing the business carbon footprint√

4.4. Possible solutions to piracy/ Ways in which businesses can deal with piracy
(a)Patent√√
● A patent prevents other businesses/people not to produce and sell the same
product/ specific service. √
● Businesses can take out a patent for new inventions and include a sample of
their invention with application. √
● A patent gives the creator of the product the right to prohibit other people from
making or using their invention.
● This right is granted by government for a limited period of up to twenty years for
the exclusive right to an invention.
● If any person or business uses the invention without permission, the creator may
take legal action against them.
● They must register a patent with the patents office in South Africa.
● The invention must comply with Patent Act No. 57 of 1978.
● They can bring legal proceedings against anyone who uses the invention.

(b) Trademarks√√

● Businesses can trademark to identify themselves and their products. √

● They must register their trademarks with the register of trademarks at the
companies and intellectual property registration. √
● A registered trademark is protected forever provided it is renewed every ten
years and a renewal fee is paid. √
● Claim damages from someone who infringes the trade mark.
● A trademark refers to a sign, character or word that is protected by law to
represent a product or company.
● These are used by businesses so that their products or the business itself is
easily identifiable.

(c) Copyright√√

● Businesses can sue someone who infringes the copyright. √

● They can also sue someone who sells or distributes works that he/she knew
were infringements of copyright. √
● They can take legal action against people who copy their products. √

4.5. Information management

• The information must be found/recorded/stored/easily retrieved and effectively used.

√√
• Businesses need to implement an effective information management system which
is accessible useful to all members of staff. √√
• Large capital into information technology (IT) system to update business operations.
√√
• Modern IT solutions enable businesses to satisfy customer needs faster and better.
√√
• The business may benefit from an increase in market share and profitability. √√
( Total marks 20)
QUESTION 5
Introduction
 ● Businesses operate in dynamic business environments that pose many challenges
on their operations. √
● The profitability and success of businesses depend on how they respond to
challenges posed by the internal and external business environments. √

Meaning of lobbying

● Lobbying refers to the process of trying to influence legislation √or parliamentary

decision making. √
● Lobbying is an organised process where individuals, businesses, √ and
organisations use their influence to change government policy. It is done by various
people with similar motives, beliefs, or commercial positions√.
● It involves an attempt by businesses to try and influence situations to meet their
specific needs and activities. √Businesses try to influence legislation or the
government decision-making process. √
● It involves acquiring public support√ for an issue such as children or animal rights. √
Max 4

Meaning of networking

● It refers to a coordinated activity √where people who have a similar objective meet
and exchange information and ideas. √
● The goal of networking is to reach as many people √as possible and to make every
connection count. √
● It is a tool that is used√ by businesses to increase sales √
● Businesses can become a member of chambers of commerce√ and industry
professional business clubs/ informal social groupings to meet new contacts√
Max 4
Reasons why businesses lobby

● Businesses lobby their regulator or supervisory body in order to try influence prices,
policies, regulations and other decisions made by the regulator or the supervisory
body√
● Businesses or people lobby or change laws like, child labour laws, clean air and
water laws, municipal regulations, etc. √
● Their views are important and heard, thus making a difference, and giving solutions
to business challenges. √
● Lobbying advances what the business must deliver and builds public trust. √
● Lobbying helps to find solutions to emerging generic challenges√
● Lobbying advances, a cause and builds public trust√
Max 10
Types of lobbying
Hedging against inflation
● Hedging is a method that businesses use to try and reduce risk when they are
unsure about possible price increases. √
● Businesses use hedging to protect their financial investments by spreading the risk√.
For example, they invest surplus fund so that its value grows at a faster rate than
inflation. √
● They can hedge against inflation by investing their surplus assets/money in
investments with intrinsic value for example gold/oil/property. √
 ● The business use hedging by buying bonds, shares, property or buying precious
metals like gold to protect capital from the effects of inflation. √
● It is a method that businesses try to reduce the risk when unsure about possible
price fluctuations. √

Bargaining sessions between management and unions

● These sessions enable employees to negotiate with employers as a group to protect

employees’ rights. √
● Bargaining sessions prevent labour strikes √and provide critical information to people
in power√
● Businesses make sure that their representatives are trained/skilled√ to negotiate
own their behalf. √
● The purpose of bargaining sessions is to find a win-win √situation for all parties. √
● Management will try to convince the union to accept √its proposal and the union will
try to persuade management to accept their demands. √
● The outcome of a successful bargaining session can protect√ the business from the
negative impact of strikes caused by loos in productivity. √
● Businesses need to be fair/transparent to establish trust √and good communication
with unions. √

Influencing supervisory body/regulators

● There are large number of supervisory bodies and regulators who operate in the
business environment. √
● Businesses take an active role in professional bodies. √
● Through their membership/advocacy/submissions√ they may be able to influence
changes to existing regulations. √
● Business managers are involved in debates and discussions that shape public
policies√.
● Businesses influence and negotiate with these regulators to protect their own
sustainability. √
● It is in the best of interest of businesses to adhere to the guidelines and restrictions
of these bodies in order to stay in businesses. √
Max 8 each
Ways businesses can form power relations
Strategic alliance/Partnership agreements
● Businesses form partnership agreements in order to benefit each in each other’s
involvement. √√
● These partnership alliances help parties involved to benefit in infrastructure
development and scarce skills. √√
● These alliances are designed to build on the expertise of each partner and on the
way and on the way in which they complement each another . √√

Persuasion of large investors

● If a business has a powerful investor, it can often benefit from the relationship by
gaining credit more easily and negotiating better deals from suppliers. √√
● Businesses invite powerful influential people to sit on their board of directors in order
to get advice from those people. √√
●
Having such powerful as part of the business may have a positive influence on the reputation and image of the
 ● If a business has a large/powerful investor, the business can gain credit easier/get
better deals from suppliers. √√

Company representatives’ influence

● This representative fulfils an important function in trying to persuade investors to

invest in a particular business practice. √√
● People will make decisions based on the company’s image, personality,
communication style and power of persuasion. √√
● Businesses must invest time and energy to recruit the right person for this job. √√
Max 6 each
CONCLUSION
● There is an increasing trend for people to move freely between countries and for
businesses to trade across international borders. √√
● Businesses need strong relationships to succeed in the marketplace.
(Total marks 40)
QUESTION 6
Introduction
● Socio-economic issues are societal issues that may have a negative impact on
businesses. √
● They are issues that affect people and the economy in a negative way. √
● Socio-economic issues have the potential to influence the efficiency of a
business, the way products are marketed and distributes. √

Meaning of industrial relations

● Industrial relations refer to the relationship between√ the employer and

employees. √
● It influences the way in which businesses are guided√ by the Labour Relations
Act. √
● The term “industrial relations” explains the relationship between employees
a√nd the management that stems directly or indirectly from union versus the
employer relationship. √
Max 4
Meaning of trade unions

● A trade union is an organisation that protects and lobbies for the rights of
workers and represent their interest in negotiations with employers. √
● It is a group of employees who associate together in a particular industry such
as√ mining/steelworks/etc. with the purpose of protecting the rights of their
members. √
● Members of a trade union pay membership fees on monthly, quarterly √or
annual basis to fund union programmes and activities. √
● Shop stewards represent trade union members √and are elected by the
members. √
Max 4
Purpose of the Labour Relations Act
 ● Provides a framework where the employees, trade u√nions and employers work
together to discuss matters relating to employment, e.g. wages, conditions of
employment. √
● Promotes orderly negotiations and employee participation√ decision making in
the workplace. √
● Promotes resolution√ of labour disputes. √
● Promotes fair √employment practices. √
● Outlines the relationship between √employees and employers. √
● Provides simple procedures for the registration of trade unions√ and
employers' organizations. √
● Regulates the rights of trade unions √and facilitates collective bargaining. √
● Regulates the effectiveness of bargaining councils and statutory councils.
● Establishes workplace forums to promote the interest of all employees in the
workplace whether they belong to the trade union or not.
● Allows workplace forums where employees may participate in decision making.
● Establishes the Commission for Conciliation, Mediation and Arbitration (CCMA)
to resolve labour disputes through statutory conciliation, mediation and
arbitration.
● Endorses the right to strike against retrenchments, and facilitates labour
disputes.
● Clarifies the transfer of contracts of employment procedures.
● Establishes Labour Courts and Labour Appeal Courts to deal with labour issues.
Max 12
Functions of trade unions

● Improves√ conditions of employment. √

● Ensures that all employees are treated equally√ in the workplace√
● Representing the interest of general society √and minority groups through media
and negotiations. √
● Influencing √government decisions. √
● Representing employees corporately√ and individually. √
● Improving material benefits √of their members. √
● Establishing minimum economic and legal √conditions/influencing economic
policy and law. √
● Playing a role as moral institutions that will uplift the weak √and oppressed and
give them the dignity and justice they deserve. √
● Protecting workers from unfair labour practices√ and unfair dismissal. √
● Take legal action √on behalf of members when necessary. √
Max 10
The negative impact of dumping on businesses

● Loss of profits as some local producers cannot compete with cheaper prices. √√
● Businesses may lose revenue and be forced to shut down their operations. √√
● Can lead to a decrease in local production and loss of jobs. √√
● Local businesses are unable to produce the same products at an equal or lower
price√√
Max 6
Conclusion

● It can also affect teamwork in the workplace in instances where not all workers
are in support of such industrial action√√
● Businesses suffer financial losses due to low levels of productivity and
consumer confidence is adversely affected. √√
(Total marks 40)