Read the scenario below and answer the questions that follow - NSC Business Studies - Question 2 - 2018 - Paper 1
Question 2
Read the scenario below and answer the questions that follow.
DUKA MINES (DM)
Duka Mines specialise in the extraction of platinum. Their suppliers of mining equipm... show full transcript
Worked Solution & Example Answer:Read the scenario below and answer the questions that follow - NSC Business Studies - Question 2 - 2018 - Paper 1
Step 1
Name the business sector in which DM operates. Motivate your answer by quoting from the scenario above.
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Answer
Duka Mines operates in the mining sector. This is evidenced by their specialization in the extraction of platinum, as stated in the scenario.
Step 2
Quote THREE challenges from the scenario above that Duka Mines have to deal with.
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Answer
The suppliers of mining equipment have increased their prices by more than 20%.
The supervisor does not have a good working relationship with his employees.
DM can no longer export their products due to an increase in the exchange rate.
Step 3
Classify EACH challenge quoted in QUESTION 2.3.2 according to the business environment.
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Price increase of mining equipment - Micro environment.
Poor relationship with employees - Micro environment.
Inability to export products due to exchange rate - Macro environment.
Step 4
State the extent of control DM has over EACH business environment.
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Price increase of mining equipment - Little control.
Poor relationship with employees - Partial control.
Inability to export products due to exchange rate - No control.
