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2.1 Name any TWO types of integration strategies - NSC Business Studies - Question 2 - 2020 - Paper 1
Question 2
2.1 Name any TWO types of integration strategies. 2.2 Outline the steps in strategy evaluation. 2.3 Read the scenario below and answer the questions that follow. ... show full transcript
Worked Solution & Example Answer:2.1 Name any TWO types of integration strategies - NSC Business Studies - Question 2 - 2020 - Paper 1
Step 1
2.1 Name any TWO types of integration strategies.
Answer
There are several types of integration strategies that organizations can adopt:
- Forward Vertical Integration: This strategy involves a company acquiring or merging with its distributors or wholesalers to gain more control over the distribution of its products.
- Backward Vertical Integration: This strategy entails a business acquiring or merging with its suppliers to secure essential materials and reduce reliance on external sources.
Step 2
2.2 Outline the steps in strategy evaluation.
Answer
The steps involved in strategy evaluation include:
- Examine the underlying basis of a business strategy: Understand the rationale behind the chosen strategy to ensure alignment with business goals.
- Look forward and backwards into the implementation process: Analyze what has occurred versus what was planned.
- Compare the projected performance with actual performance: Identify any discrepancies to ascertain areas needing improvement.
- Measure business performance: Use relevant indicators to assess performance.
- Take corrective action: Implement changes where necessary to realign the strategy.
- Set specific dates for control and follow-up: Ensure ongoing evaluation by scheduling reviews at specific intervals.
Step 3
2.3.1 Quote THREE challenges for GTE from the scenario above.
Answer
- GTE was unable to export products due to international trade restrictions during the lockdown.
- Employees requested to work from home, impacting productivity and workflow.
- The delay in receiving personal protective equipment from suppliers, jeopardizing employee health and safety.
Step 4
2.3.2 Classify GTE's challenges according to the THREE business environments.
Answer
GTE's challenges can be classified into the following business environments:
- Micro Environment: Employee requests to work from home due to COVID-19.
- Market Environment: Challenges related to the export of products during lockdown.
- Macro Environment: Overall economic implications of the COVID-19 pandemic affecting both supply and demand.
Step 5
2.3.3 State the extent of control GTE has over EACH business environment named in QUESTION 2.3.2.
Answer
- In the Micro Environment, GTE has limited control over employee decisions regarding working from home, though it can influence policies and expectations.
- In the Market Environment, GTE has little to no control over the external conditions blocking product exports.
- In the Macro Environment, GTE has no control over the large-scale economic factors that impact their operations.
Step 6
2.4.1 Management control
Answer
Management control is crucial as it enables businesses to ensure that strategic goals are met through effective management practices. Organizations must appoint black individuals in key management positions to facilitate transformation. This not only fosters inclusion but also aids in meeting the BBBEE compliance requirements. Moreover, investing in management training for underrepresented groups further strengthens governance and accountability within the business.
Step 7
2.4.2 Skills development
Answer
Skills development involves actively engaging employees in skill-enhancing programs. Businesses should ensure that black employees are provided with training opportunities and mentorship programs. This fosters a culture of continuous improvement and equips employees with skills necessary for increased productivity. It also allows for adherence to BBBEE requirements, as businesses are mandated to provide skills development programs aimed at marginalized groups.
Step 8
2.5.1 Identify the Act that is applicable to CBS. Motivate your answer by quoting from the scenario above.
Answer
The applicable Act for CBS is the Labour Relations Act (LRA). This is evident as Martha was unfairly dismissed, which directly falls under the acts governed by labor laws, particularly when she sought recourse through the CCMA for her dismissal.
Step 9
2.5.2 Explain other actions that could be regarded as discriminatory according to the Act identified in QUESTION 2.5.1.
Answer
Discriminatory actions may include unfair treatment or different standards being applied to employees based on their race, gender, or other protected characteristics. For instance, if Martha’s dismissal was based on her race or if other employees were given leniency while she was not, this could be deemed discriminatory under the LRA.
Step 10
2.6.1 Technological
Answer
Businesses can cope with technological challenges by consistently conducting research on the latest technologies relevant to their operations, ensuring they are up-to-date and equipped with the best tools. Additionally, training sessions should be organized to instruct employees on how to effectively utilize new technologies, which increases overall efficiency.
Step 11
2.6.2 Environmental
Answer
Businesses need to adopt sustainable practices by ensuring that chemicals and ingredients used are labeled clearly. Furthermore, they should educate employees on the environmental impacts of their production processes. This alignment with environmental guidelines not only helps in compliance but also enhances the organization's reputation in the eyes of socially-conscious consumers.