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2.1 Name THREE types of diversification strategies - NSC Business Studies - Question 2 - 2019 - Paper 1
Question 2
2.1 Name THREE types of diversification strategies. 2.2 Outline the role of SETAs in supporting the Skills Development Act (SDA), 1998 (Act 97 of 1998). 2.3 Identi... show full transcript
Worked Solution & Example Answer:2.1 Name THREE types of diversification strategies - NSC Business Studies - Question 2 - 2019 - Paper 1
Step 1
Name THREE types of diversification strategies.
Answer
- Concentrative Diversification: This involves expanding into a new or different market with existing products.
- Horizontal Diversification: This strategy allows the addition of new products that are related to current offerings, reaching the same customer base.
- Conglomerate Diversification: This involves entering entirely new industries or markets that are unrelated to the existing business operations.
Step 2
Outline the role of SETAs in supporting the Skills Development Act (SDA), 1998 (Act 97 of 1998).
Answer
- Develop sector skills plans in line with the National Skills Development Strategy.
- Facilitate workplace skills plans and annual training reports.
- Provide grants to employers who meet the requirements outlined in the Skills Development Act.
Step 3
Identify the leave provision stipulated in the BCEA that Quick Shoe Manufacturers complied with in EACH statement below:
Answer
2.3.1 Ruth is entitled to maternity leave as per the maternity leave provisions of the BCEA. 2.3.2 Ashley is entitled to annual leave days in terms of the leave provisions in the BCEA. 2.3.3 John is entitled to sick leave under the provisions that allow time off for illness. 2.3.4 Zodwa's medical certificate allows for sick leave, which is also covered under the BCEA.
Step 4
Explain the purpose of the Labour Relations Act (LRA), 1995 (Act 66 of 1995).
Answer
The LRA aims to promote economic development, social justice, labor peace, and democracy in the workplace by regulating the relationship between employers and employees. It establishes the framework for collective bargaining and dispute resolution processes.
Step 5
Discuss any THREE consumer rights as stipulated in the Consumer Protection Act (CPA), 2008 (Act 68 of 2008).
Answer
- Right to Privacy and Confidentiality: Consumers can refuse unsolicited marketing and have control over their personal information.
- Right to Fair Value, Good Quality, and Safety: Consumers deserve quality products and services that are safe for use.
- Right to Information: Consumers should receive clear, understandable information regarding products, ensuring informed choices.
Step 6
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Step 8
Explain how the following PESTLE elements/factors may pose challenges to businesses:
Answer
2.7.1 Economic: Economic downturns can lead to reduced consumer spending, affecting sales and profitability. 2.7.2 Social: Changes in social trends, such as increasing consumer demands for environmentally friendly products, may require businesses to adapt quickly.
Step 9
Suggest practical ways in which businesses may comply with the Employment Equity Act (EEA), 1998 (Act 55 of 1998).
Answer
Businesses can conduct regular audits to assess equity in the workplace, implement diversity training programs, and create mentorship opportunities for underrepresented groups.