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2.1 Name any FOUR components of the PESTLE analysis - NSC Business Studies - Question 2 - 2019 - Paper 1
Question 2
2.1 Name any FOUR components of the PESTLE analysis. 2.2 Outline the purpose of the Labour Relations Act (LRA), 1995 (Act 66 of 1995). 2.3 Identify the consumer ... show full transcript
Worked Solution & Example Answer:2.1 Name any FOUR components of the PESTLE analysis - NSC Business Studies - Question 2 - 2019 - Paper 1
Step 1
2.1 Name any FOUR components of the PESTLE analysis.
Answer
The four components of the PESTLE analysis are:
- Political: Refers to the influence of government policies and regulations on the business environment.
- Economic: Involves the economic factors that affect a business's performance, such as inflation rates and economic growth.
- Social: Encompasses societal trends and changes in consumer preferences.
- Technological: Pertains to the impact of technological advancements on business operations.
Step 2
2.2 Outline the purpose of the Labour Relations Act (LRA), 1995 (Act 66 of 1995).
Answer
The Labour Relations Act (LRA) provides a framework for managing relationships between employers and employees. Its key purposes include:
- Facilitating collective bargaining at the workplace level.
- Promoting fair labour practices and preventing unfair dismissals.
- Establishing procedures for resolving disputes between employers and employees.
Step 3
2.3 Identify the consumer right that is implemented by Carilo Ltd in EACH statement below:
Answer
2.3.1 Right to choose: The salesperson allows customers to shop around for the best price.
2.3.2 Right to privacy: Management does not share personal information of their employees with clients.
2.3.3 Right to equal treatment: Customers are charged the same price for the same goods/services in different areas.
2.3.4 Right to warranty: Consumers are given a written warranty for durable products.
Step 4
Step 5
2.4.2 Outline other ways in which businesses can comply with the National Credit Act (NCA).
Answer
Businesses can comply with the NCA by:
- Registering with the National Credit Regulator.
- Conducting credit checks on clients before granting loans.
- Submitting annual compliance reports to the National Credit Regulator.
Step 6
2.5 Describe THREE types of intensive strategies.
Answer
The three types of intensive strategies include:
- Market penetration: Increasing market share by selling existing products in the current market.
- Market development: Introducing existing products into new markets to reach new customers.
- Product development: Creating new products or improving existing ones to meet customers' needs better.
Step 7
Step 8
2.6.2 Classify SB's challenges according to the THREE business environments.
Answer
The classification of SB’s challenges according to business environments is:
- Micro Environment: Employees' lack of good customer service.
- Market Environment: Losing customers to Floran Bakeries.
- Macro Environment: High crime rate affecting business operations.
Step 9
2.6.3 State the extent of control SB has over EACH business environment mentioned in QUESTION 2.6.2.
Answer
The extent of control Sam has over these environments is as follows:
- Micro Environment: Full control over employee performance and training.
- Market Environment: Limited control over competitors and customer preferences.
- Macro Environment: No control over external factors like crime rates.
Step 10
2.7.1 Evaluate businesses on the following of Porter's Five Forces model: Bargaining power of suppliers.
Answer
In evaluating the bargaining power of suppliers:
- High power exists when few suppliers dominate the market.
- If suppliers offer unique or high-quality products, they can exert significant influence over prices and terms.
Step 11
2.7.2 Threat of substitution/Substitutes.
Answer
The threat of substitution is strong when alternative products are easily available. To mitigate this, businesses must:
- Differentiate their products and maintain good quality to retain customers.
- Regularly assess the market for potential substitutes.