2.1 Identify the element of Porter’s Five Forces model that applies to each of the following statements: 2.1.1 Royal Clothing attracts more customers than Pro Clothing because they offer lower prices - NSC Business Studies - Question 2 - 2017 - Paper 1

This is an example of 'Threat of New Entrants', indicating that Local Plastics has a significant market power due to lack of competition.

This illustrates 'Bargaining Power of Suppliers' since high capital requirements create barriers to entry, allowing existing suppliers to exert influence.

This is related to the 'Bargaining Power of Buyers', as having a few large customers increases their power over price and terms.

This statement reflects 'Threat of Substitution', indicating that customers are willing to choose warmer coats over more costly alternatives.

1. Primary Sector
2. Secondary Sector
3. Tertiary Sector

The strategic management process includes:

1. Formulation: Develop a clear, measurable mission statement and objectives.
2. Analysis: Conduct SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to evaluate the current situation.
3. Implementation: Execute the strategy through action plans, communication, and resource allocation.
4. Evaluation: Monitor outcomes and make necessary adjustments based on feedback.

1. Develop and implement a sector skills plan.
2. Administer learnerships within the sector.
3. Support the National Qualifications Framework.

The purpose of the SDA is to promote learning, skills development, and the quality of education in the workforce, ensuring that individuals have access to training and opportunities to enhance their skills.

1. Diversification: Entering new markets to reduce dependency on current products.
2. Restructuring: Reorganizing the business to improve efficiency and reduce costs.
3. Liquidation: Selling off unprofitable divisions to focus on core business functions.

1. Right to Choose: Consumers have the right to make informed choices about products and services.
2. Right to Fair and Honest Dealing: Businesses must provide honest information to consumers and are prohibited from engaging in misleading practices.
3. Right to Refund: Consumers have the right to receive a refund for defective or unfit products.

The primary purpose of the BBBEE Act is to address and enhance the economic participation of Black people in the South African economy.

1. Ownership
2. Skills Development
3. Enterprise Development

The BBBEE Act aims to create equitable economic participation for Black individuals, fostering inclusivity in ownership and management roles within businesses, leading to enhanced socio-economic development.

The BBBEE Act has positively influenced businesses by encouraging transformation and broadening market access. However, it can also pose challenges for businesses in terms of compliance costs and the need to adapt to new ownership requirements.