BUSINESS ENVIRONMENTS
2.1 Name any TWO types of integration strategies - NSC Business Studies - Question 2 - 2020 - Paper 1
Question 2
BUSINESS ENVIRONMENTS
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 q... show full transcript
Worked Solution & Example Answer:BUSINESS ENVIRONMENTS
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.
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Answer
Two types of integration strategies are:
Forward vertical integration
Backward vertical integration
Step 2
2.2 Outline the steps in strategy evaluation.
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The steps in strategy evaluation include:
Examine the underlying basis of a business strategy.
Look forward and backwards into the implementation process.
Compare the expected performance with the actual performance to determine the reasons for deviations and analyze these reasons.
Take corrective action so that deviations may be corrected.
Set specific dates for control and follow-up.
Draw up a table of advantages and disadvantages of a strategy.
Decide on the desired outcome.
Consider the impact of the strategy implementation in the internal and external environments of the business.
Step 3
2.3.1 Quote THREE challenges for GTE from the scenario above.
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Answer
Three challenges for GTE are:
Inability to export products to other countries due to lockdown.
Essential employees requesting to work from home due to COVID-19 impact.
Delay in the distribution of personal protective equipment by manufacturers.
Step 4
2.3.2 Classify GTE's challenges according to the THREE business environments.
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The challenges can be classified into the following business environments:
Economic Environment: Inability to export products.
Social Environment: Employees requesting to work from home.
Market Environment: Delay in distribution of equipment.
Step 5
2.3.3 State the extent of control GTE has over EACH business environment named in QUESTION 2.3.2.
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Extent of control for GTE:
Economic Environment: Little or no control over export regulations.
Social Environment: Limited control over employee requests due to external factors.
Market Environment: Limited influence over suppliers' actions.
Step 6
2.4.1 Explain the implications of management control as a BBBEE pillar for businesses.
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Management control implies that businesses must ensure effective transformation at all levels. This includes:
Appointing black individuals in executive positions to management.
Involving black people in strategic decision-making processes.
Ensuring that black members are represented in management to comply with BBBEE guidelines.
Step 7
2.4.2 Explain the implications of skills development as a BBBEE pillar for businesses.
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Skills development entails that businesses should:
Engage black employees in skills development initiatives.
Provide learnerships that contribute towards developing skills in marginalized communities.
Ensure that training programs are made available to enhance the skills of the workforce.
Step 8
2.5.1 Identify the Act that is applicable to CBS. Motivate your answer by quoting from the scenario above.
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The applicable Act is the Labour Relations Act (LRA). This is evidenced by Martha referring her dismissal case to the Commission for Conciliation, Mediation and Arbitration (CCMA), which is an action stipulated under the LRA.
Step 9
2.5.2 Explain other actions that could be regarded as discriminatory according to the Act identified in QUESTION 2.5.1.
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Actions that could be regarded as discriminatory include:
Dismissing employees without valid reasons or due process.
Treating employees differently based on personal issues such as late coming, especially when they are related to external factors like road closures due to protests.
Step 10
2.6.1 Recommend ways in which businesses could deal with challenges posed by technological factors.
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Businesses can address technological challenges by:
Conducting continuous research on the latest technology and equipment in the market.
Training staff to maintain and effectively use new equipment.
Regularly reviewing supplier options to secure competitive prices.
Step 11
2.6.2 Recommend ways in which businesses could deal with challenges posed by environmental factors.
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To deal with environmental challenges, businesses should:
Clearly label all chemicals and ingredients in products to inform users.
Engage in sustainable practices that align with environmental regulations.
Monitor their impact on the environment and adapt practices accordingly.