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
Question 2
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 Cloth... show full transcript
Worked Solution & Example Answer: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
Step 1
2.1.1 Royal Clothing attracts more customers than Pro Clothing because they offer lower prices.
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Answer
This statement refers to the element of Competitive Rivalry from Porter's Five Forces model. A lower price can attract more customers, intensifying competition within the clothing industry.
Step 2
2.1.2 Local Plastics is the only place where retailers can buy plastic shopping bags.
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Answer
This statement highlights the Threat of New Entrants, suggesting that Local Plastics has a monopoly over the supply of plastic shopping bags, limiting competition.
Step 3
2.1.3 Handsome Stores want to start an exclusive fashion boutique that requires huge capital investment to cover the high establishment costs and expensive stock.
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This reflects Barriers to Entry, indicating that high capital requirements can discourage new competitors from entering the fashion retail market.
Step 4
2.1.4 Medi-Care has a few regular customers who always place large orders.
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This situation represents the Bargaining Power of Buyers. A few large customers can exert significant influence over Medi-Care's pricing and terms.
Step 5
2.1.5 Customers prefer warmer coats to more expensive, formal jackets.
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This pertains to the Threat of Substitution, as customers may choose warmer alternatives over more formal clothing, impacting sales.
Step 6
2.2 Name THREE business sectors.
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Primary Sector
Secondary Sector
Tertiary Sector
Step 7
2.3 Describe the strategic management process.
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The Strategic Management Process
Define the Vision and Mission: Establish a clear mission statement that defines the purpose and values of the organization.
Conduct SWOT Analysis: Analyze the internal strengths and weaknesses as well as external opportunities and threats.
Set Objectives: Develop measurable and realistic goals aligning with the mission.
Develop Strategies: Outline various strategies using frameworks like PESTEL/PORTER'S to explore market positioning.
Implement Strategies: Put the planned strategies into action while ensuring resources are allocated appropriately.
Monitor and Evaluate: Continuously assess the results compared to the objectives and adjust plans as necessary.
Step 8
2.4.1 Quote THREE roles of SETAs mentioned in the article above.
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Develop sector skills plans.
Implement learnerships.
Undertake quality assurance.
Step 9
2.4.2 Explain the purpose of the Skills Development Act (SDA), 1998 (Act 97 of 1998).
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The purpose of the SDA is to encourage and facilitate skills development in the workforce, promote access to education and enhance the employability of individuals.
Step 10
2.5 Explain THREE defensive strategies that businesses can use to overcome their challenges.
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Restructuring: Businesses may reduce losses by restructuring departments or operations to improve efficiency.
Diversification: Expanding product lines can mitigate risks by tapping into new markets.
Cost-cutting Measures: Implementing cost-reduction strategies to maintain profitability during difficult times.
Step 11
2.6 Discuss any THREE consumer rights as stipulated in the Consumer Protection Act (CPA), 2008 (Act 68 of 2008).
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Right to Choose: Consumers have the right to select products freely.
Right to Information: Consumers must receive clear information regarding the products and services they buy.
Right to Fair Treatment: Consumers should be treated fairly and have access to quality goods.
Step 12
2.7.1 Quote the primary purpose of the BBBEE Act from the statement above.
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To address and enhance the economic participation of Black people in the South African economy.
Step 13
2.7.2 Identify any THREE pillars of BBBEE mentioned in the statement above.
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Ownership
Skills Development
Enterprise Development
Step 14
2.7.3 Explain the impact of the BBBEE Act on businesses.
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The BBBEE Act encourages businesses to implement equitable practices and promote diversity. This can enhance opportunities for Black-owned businesses and contribute to the overall economic growth of South Africa.
