FINAL

NATIONAL
SENIOR CERTIFICATE

GRADE 11

BUSINESS STUDIES P1

COMMON TEST

JUNE 2024

MARKING GUIDELINE

MARKS : 150

TIME : 2 Hours

These marking guidelines consist of 25 pages.

Copyright reserved Please turn over

 Business Studies P1 NSC June 2024 Common Test
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NOTES TO MARKERS

PREAMBLE
The notes to markers are provided for quality assurance purposes to ensure the following:

(a) Fairness, consistency and reliability in the standard of marking

(b) Facilitate the moderation of candidates' scripts at the different levels
(c) Streamline the marking process considering the broad spectrum of markers across the
country
(d) Implement appropriate measures in the teaching, learning and assessment of the subject at
schools/institutions of learning

1. For marking and moderation purposes, the following colours are recommended:

Marker: Red
Senior Marker: Deputy Green
Chief Marker: Chief Brown
Marker: Internal Pink
Moderator: DBE Orange
Moderator: Turquoise
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2. The differentiation between 'evaluate' and 'critically evaluate' can be

explained as follows:

2.1 When 'evaluate' is used, candidates are expected to respond in

either a positive/negative manner or take a neutral (positive and
negative) stance, e.g. Positive: 'COIDA eliminates time and costs
spent√ on lengthy civil court proceedings.'√

2.2 When 'critically evaluate' is used, candidates are expected to

respond in either a positive/negative manner or take a neutral
(positive and negative) stance. In this instance candidates are also
expected to support their responses with more depth, e.g. 'COIDA
eliminates time and costs spent√ on lengthy civil court
proceedings√, because the employer will not be liable for
compensation to the employee for injuries sustained during working
hours as long as it can be proved that the business was not
negligent.'√

NOTE: 1. The above could apply to 'analyse' as well.

2. Note the placing of the tick (√) in the allocation of marks.

3. The allocation of marks must be informed by the nature of the question,

cognitive verb used, mark allocation in the marking guideline and the context
of each question.
Cognitive verbs, such as:

3.1 Advise, name, state, outline, motivate, recommend, suggest, (list

not exhaustive) do not usually require much depth in candidates'
responses. Therefore, the mark allocation for each
statement/answer appears at the end.

3.2 Define, describe, explain, discuss, elaborate, distinguish,

differentiate, compare, tabulate, justify, analyse, evaluate,
critically evaluate (list not exhaustive) require a greater depth of
understanding, application and reasoning. Therefore, the marks
must be allocated more objectively to ensure that assessing is
conducted according to established norms so that uniformity,
consistency and fairness are achieved.

4. Mark only the FIRST answer where candidates offer more than one answer
for SECTION B and C questions that require one answer.

5. SECTION B

5.1 If for example, FIVE facts are required, mark the candidate's FIRST FIVE
responses and ignore the rest of the responses. Indicate by drawing a line
across the unmarked portion or use the word 'Cancel'.

NOTE: This applies only to questions where the number of facts is specified.

5.2 If two facts are written in one sentence, award the candidate FULL credit. Point
14.1 above still applies.
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5.3 If candidates are required to provide their own examples/views, brainstorm

this at the marking centre to finalise alternative answers.

5.4 Use of the cognitive verbs and allocation of marks:

5.4.1 If the number of facts are specified, questions that require

candidates to 'describe/discuss/explain' may be marked as
follows:
• Fact 2 marks (or as indicated in the marking guidelines)
• Explanation 1 mark (two marks will be allocated in Section C)
The 'fact' and 'explanation' are given separately in the marking
guideline to facilitate mark allocation.

5.4.2 If the number of facts required is not specified, the allocation of

marks must be informed by the nature of the question and the
maximum mark allocated in the marking guideline.

5.5 ONE mark may be awarded for answers that are easy to recall, requires
one word answers or is quoted directly from a scenario/case study.
This applies to SECTIONS B and C in particular (where applicable).

6. SECTION C
6.1 The breakdown of the mark allocation for the essays is as follows:

Introduction
Maximum:
Content
32
Conclusion

Insight 8

TOTAL 40
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6.2 Insight consists of the following components:

Layout/Structure Is there an introduction, a body, and a conclusion? 2

Analysis and Is the candidate able to break down the question into 2
interpretation headings/subheadings/interpret it correctly to show
understanding of what is being asked?
Marks to be allocated using this guide:
All headings addressed: 1 (One 'A')
Interpretation (16 to 32 marks): 1 (One 'A')
Synthesis Are there relevant decisions/facts/responses made based
on the questions?

Option 1 :Only relevant facts: 2 marks (No '-S')

Where a candidate answers 50% or more (two
to four sub-questions) of the question with only
relevant facts; no ‘-S’ appears in the left margin.
Award the maximum of TWO (2) marks for
synthesis

Option 2 : Some relevant facts: 1 mark (One ‘-S’)

Where a candidate answers less than 50%
(only one sub-questions) of the question
with only OR some relevant facts; one ‘-S’
appears in the left margin. Award a maximum
ONE (1) mark for synthesis.

Option 3 : Some relevant facts: 1 mark (One ‘-S’)

Where a candidate writes FOUR sub-questions,
but one/two/three sub-question with irrelevant
facts; one '-S' appears in the left margin. Award
a maximum of ONE (1) mark for synthesis.

Option 4 :No relevant facts : 0 marks ( Two ‘-S’)

Where a candidate answers less than 50%
(only one sub-question) of the question with no
Relevant facts; two ‘-S’ appear in the left margin
Award a ZERO mark for synthesis

Originality Is there evidence of one or two examples, not older than 2

two (2) years, that are based on recent information, current
trends and developments?
TTAL FOR INSIGHT: 8
TOTAL MARKS FOR FACTS: 32
TOTAL MARKS FOR ESSAY (8 + 32): 40
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NOTE: 1. No marks will be awarded for contents repeated

from the introduction and conclusion.

2. The candidate forfeits marks for layout if the words

INTRODUCTION and CONCLUSION are not stated.
3. No marks will be awarded for layout, if the headings
INTRODUCTION and CONCLUSION are not supported by
an explanation.

6.3 Indicate insight in the left-hand margin with a symbol e.g. ('L, A, -S and/or O').

6.4 The breakdown of marks is indicated at the end of the suggested

answer/marking guideline to each question.

6.5 Mark all relevant facts until the SUB MAX/MAX mark in a subsection has
been attained. Write SUB MAX/MAX after maximum marks have been
obtained, but continue reading for originality “O”.

6.6 At the end of each essay indicate the allocation of marks for facts and
marks for insight as follows:(L – Layout, A – Analysis, S – Synthesis, O –
Originality)as in the table below.

CONTENT MARKS
Facts 32 (max.)
L 2
A 2
S 2
O 2
TOTAL 40

6.7 When awarding marks for facts, take note of the sub-maxima indicated,
especially if candidates do not make use of the same subheadings.
Remember, headings and subheadings are encouraged and contribute to
insight (structuring/logical flow/sequencing) and indicate clarity of thought.
(See MARK BREAKDOWN at the end of each question.)

6.8 If the candidate identifies/interprets the question INCORRECTLY, then

he/she may still obtain marks for layout.

6.9 If a different approach is used by candidates, ensure that the answers are
assessed according to the mark allocation/subheadings as indicated in
the marking guideline.
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6.10

15.10.1 Award TWO marks for complete sentences. Award ONE mark
for phrases, incomplete sentences and vague answers.

15.10.2 With effect from November 2015, the TWO marks will not
necessarily appear at the end of each completed sentence.
The ticks (√) will be separated and indicated next to each
fact, e.g. 'Product development is a growth strategy √, where
businesses aim to introduce new products into existing
markets.'√

This will be informed by the nature and context of the question,

as well as the cognitive verb used.

6.11 With effect from November 2017, the maximum of TWO (2) marks for facts
shown as headings in the marking guidelines, will not necessarily apply to
each question. This would also depend on the nature of the question.
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SECTION A

QUESTION 1

1.1
1.1.1 C

1.1.2 B

1.1.3 D

1.1.4 A

1.1.5 C (5 x 2) (10)

1.2
1.2.1 merger

1.2.2 patent

1.2.3 go-slow

1.2.4 pricing

1.2.5 routing (5 x 2) (10)

1.3

1.3.1 H
1.3.2 E
1.3.3 A
1.3.4 I
1.3.5 D
(5 x 2) (10)
TOTAL SECTION A: [30]

BREAKDOWN OF MARKS
QUESTION 1 MARKS
1.1 10
1.2 10
1.3 10
TOTAL 30
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SECTION B
Mark ONLY the FIRST TWO questions answered in this Section.
QUESTION 2: BUSINESS ENVIRONMENTS

2.1 Components of the macro environment.

 Physical / Natural 
 Economic environment 
 Social/ Cultural/Demographic environment 
 Technological environment 
 Legal / Political environment 
 International / Global environment 
 Institutional environment 
 Any other relevant answer related to components of the macro environment
Note: Mark the first FOUR components only.
Max (4)
2.2
CHALLENGES BUSINESS EXTENT OF CONTROL
ENVIRONMENT
2.2.1 2.2.2 2.2.3
IE always receives stock late from Market environment  Less control
Smart Wholesalers.  /Little/Partial/Limited
The management of IE has difficulty Micro environment  Full control 
in dealing with unproductive
employees. 
Sub max (2) Sub max (2) Sub max (2)
NOTE:
1. If the business environment is not linked to the challenge, mark the
challenge only.
2. Award full marks for the business environment even if the challenge
is not quoted in full.
3. The extent of control must be linked to the business environment.
4. Do not award marks for the extent of control if the business
environment is not mentioned.
5. Accept responses in any order.
Max (6)
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2.3 Meaning of lobbying

 The act/ process of attempting to influence government leaders/ officials to
create legislation or change government policy. 
 It is an organized process where individuals , businesses, and organisations use their
influence to change government policy. 
 It is done by different people with similar ideas/ beliefs/ motives or commercial
positions. 
 It involves an attempt by businesses to try and influence situations to meet their
specific needs and objectives. 
 Businesses try to influence legislation or the government decision – making
process. 
 Any other relevant answer related to the meaning of lobbying.
Max (6)
2.4 Reasons why businesses lobby
 Businesses lobby their regulator or supervisory body in order to try
iinfluence prices, policies, regulations and other decisions made by the
regulator or the supervisory body. 
 Businesses or people lobby or change laws  like, child labour laws,
clean air and water laws, municipal regulations, etc. 
 Their views are important and heard,  thus making a difference and
giving solutions to business challenges. 
 Lobbying advances  what the business must deliver on and builds
public trust. 
 Lobbying helps to find solutions to emerging generic challenges. 
 Any other relevant answer related to the reasons why businesses lobby.
Max (6)
2.5 Importance/Advantages/Benefits of networking
 Businesses can attract new customers resulting to increased market share and
profitability. 
 Networking can be an excellent source of new perspectives and business ideas.

 Allows managers to build new business relationships and generate new
business opportunities. 
 Plays a role in the marketing  and expansion of a business. 
Business Studies P1 NSC June 2024 Common Test
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 Assists businesses in making future business decisions. 
 Businesses can gain support  when representation to various authorities is
planned. 
 Any other relevant answers related to importance /advantages/benefits of
networking.
Max (6)
2.6 Ways businesses can form power relations
2.6.1 Persuasion of large investors (2)

2.6.2 Company representatives’ influence  (2)

2.6.3 Strategic alliance/Partnership agreements (2)

Max (6)

2.7 Ways in which the business can have a direct influence on the environment
 Businesses need to be flexible by getting involved in research/development so that
they can continue to operate. 
 They can influence their suppliers by signing long-term contracts for their raw materials
at fixed prices. 
 They can also influence their customer base by creating new uses of a product, taking
customers away from competitors, finding new customers, and convincing them that
they need the new product. 
 They can influence regulators through lobbying and bargaining. 
 Influence their owners using information contained in annual reports. 
 Initiate bargaining sessions between management and unions. 
 Negotiate strategic alliance agreements through contractual processes. 
 Any other relevant answers related to ways in which the business can have a direct
influence on the environment.
Max (6)
[40]
Business Studies P1 NSC June 2024 Common Test
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BREAKDOWN OF MARKS

QUESTION 2 MARKS

2.1. 4

2.2.1 2

2.2.2 2

2.2.3 2

2.3 6

2.4 6

2.5.1 2

2.5.2 2

2.5.3 2

2.6.1 2

2.6.2 2

2.6.3 2

2.7 6

TOTAL 40
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QUESTION 3: BUSINESS OPERATIONS
3.1 Components of the marketing communication policy
 Sales promotion
 Advertising
 Publicity
 Personal selling
Max (6)
Note: Mark the first THREE only.
3.2 Meaning of distribution
 Distribution (place) is the fourth P of the marketing mix. 
 Distribution is about how the business gets its goods/services to its customers. 
 Products either get sold directly to customers, or intermediaries (middlemen) are
used. 
 Any other relevant answer related to meaning of distribution.
Max (4)
3.3
3.3.1
MARKETING ACTIVITIES MOTIVATION
1. Transport RM uses courier companies to get their
products to customers. 
2. Risk-bearing RM has also insured all their antique
furniture, to safe guard themselves from
any unforeseen circumstances. 
Sub max (4) Sub max (2)
Max (6)
NOTE : 1. The answer does not have to be in tabular format.
2. Awards marks for the marketing activities even if there is no motivation.
3.Do not award marks for motivations, if marketing activities
were incorrectly identified.
Business Studies P1 NSC June 2024 Common Test
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3.3.2 Role of the marketing function

 Identify the needs of customers and determine the value they place on getting those
needs satisfied. 
 Share information gathered from customers with the production function to ensure
that the products/services offered meet the customers’
expectations 
 Promote the products/services that the business offers to potential
clients/customers. 
 Provide feedback from customers about the business’ products/services and identify
areas of improvement. 
 Shape the experience customers have after the products/services are delivered to
them. 
 Any other relevant answer related to role of the marketing function.
Max (6)
3.4
3.4.1 Meaning of publicity
 Publicity can be described as a free form of non-personal communication that a
business and its products and services can receive through various forms of mass
media. 
 Publicity creates public awareness of the business, its products and services
through media coverage and other forms of communication. 
 It refers to unpaid communication in the mass media about the business and its
operations. 
 Publicists help manage the publicity of the business to increase positive publicity
and reduce the impact of negative publicity on the business. 
 It is a form of mass communication that is not paid for by the business and involves
gaining responses from customers through the placement of commercially significant
news in the mass media. 
 Publicity is not paid for by the business and comes from journalists and other
members of the press. 
 It is often considered to be part of the public relations of the business. 
 Publicity places the business in front of the media outlets for the business to
showcase its products and services. 
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 Publicity is important because it helps the business increase awareness while
establishing a worthwhile business from which to purchase products and services. 
 Publicity provides the authority of an independent voice, as the business cannot
control the message provided about the business from members of the media. 
 Any other relevant answer related to meaning of publicity.
Max (4)

3.4.2 Role of public relations in publicity

 Public relations aims to present a favourable image of the business and its products
and services. 
 Public relations strives for members of the external stakeholders to view the business
in a positive light. 
 There is a direct link between public relations and publicity. 
 Public relations is concerned with strategic management of information to ensure that
the business achieves specific communication goals. 
 Public relations plays a critical role in developing positive publicity and minimising the
effects of negative publicity on the business. 
 The business can decide to manage its own public relations function or outsource public
relations services from an outside vendor because of specialised knowledge. 
 The public relations function develops sound relationships with members of the media.

 The public relations function provides regular information to the media about the
business, its products, services and general business activities. 
 The public relations function and marketing function are interconnected and aim to
establish and build brand loyalty. 
 Any other relevant answer related to role of public relations in publicity.
Max (4)

3.5 Meaning of intermediaries

 All the people that fall into the distribution process between the producer and the
consumer. 
 They are middlemen and act as negotiators and mediators between the producer
and the consumer. 
 Intermediaries can be wholesalers,  retailers, agents and brokers. 
Business Studies P1 NSC June 2024 Common Test
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 They are responsible for the transportation, storage and delivery of the goods and
services. 
 The organisations involved in the distribution channel are known as
intermediaries. 
 Any other relevant answer related to the meaning of intermediaries.
Max (6)

3.6 Reasons why manufacturers may prefer to make use of direct distribution
method
 Manufacturers have control over the product and marketing. 
 They achieve better end-user price as there are no intermediary costs. 
 The business does not need to share its profit margin with intermediaries. 
 Products become very expensive once all the intermediaries have added their own
mark-ups. 
 There is direct contact with the target market for feedback and improvements
 Sales staff provide customer information for future market research. 
 Selling through the internet allows smaller businesses to market their products all
over the world. 
 Businesses’ websites can serve as both a distribution method and a promotion
method. 
 Well trained sales staff are able to promote products effectively and establish good
relationships with customers. 
 Suitable intermediaries may not be available/intermediaries may not be willing to sell
the particular product on behalf of the manufacturer. 
 Any other relevant answer related to reasons why manufacturers may prefer to make
use of direct distribution method.
Max (4)
Business Studies P1 NSC June 2024 Common Test
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BREAKDOWN OF MARK ALLOCATION

3.1 6
3.2 4
3.3.1 6
3.3.2 6
3.4.1 4
3.4.2 4
3.5 6
3.6 4
TOTAL 40

QUESTION 4: MISCELLANEOUS

BUSINESS ENVIRONMENTS
4.1 Examples of contemporary legislation
 National Credit Act
 Consumer Protection Act 
 Employment Equity Act 
 Broad Based Black Economic Empowerment Act 
 Basic Conditions of Employment Act 
 Labour Relations Act 
 Skills Development Act 
 Compensation for Occupational Injuries and Diseases Act/COIDA 
NOTE: Mark the first TWO (2) only.

(2 x 1) (2)
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4.2.1
BUSINESS SECTOR MOTIVATION
Earlybird Televisions Secondary sector Earlybird Televisions(ET)
specialise in the manufacturing of
smart televisions sets. 
Kay Distributors Tertiary sector They signed a contract with Kay
Distributors (KD) to deliver their
products to customers. 
Sub max (4) Sub max (2)

NOTE : 1. The answer does not have to be in tabular format.

2. Awards marks for business sectors even if there is no motivation.
3. Do not award marks for motivations, if business sectors were
incorrectly identified.
Max (6)
4.3 Negative impact of strikes on businesses
 Strikes leads to loss of productivity  and decreases economic growth. 
 Loss of revenue  and financial loss on business operations. 
 Looting, destruction of business property/infrastructure  and intimidation of
non-striking workers. 
 Businesses has to hire employees to replace striking workers and
increases the training costs of new employees. 
 Businesses may lose market shares/customers to competitors  during the
period of a strike. 
 Strikes can lead to business to shut down  spells disaster to both parties. 
 The image/reputation of the business might be damaged. 
 Limited availability  of labour. 
 Relations between management and workers  are negatively affected. 
 The supplies of goods and services  are interrupted. 
 Prices sometimes increase  to offset the costs incurred by the strike. 
 May lead to unhealthy working relationships between management and
workers. 
 Any other relevant answers related to the negative impact of strikes on businesses.
Max (6)
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4.4 Purpose of the Labour Relations Act (LRA)

 The act provides the structure for governing the relations between an employer and their
employees. 
 It encourages collective bargaining processes to take place in the workplace. 
 It also encourages the establishment of workplace forums to support employees in decision-
making. 
 The act further encourages fair labour practices between the employer and its employees
 It makes provision for the establishment of the Labour and Labour Appeal Courts and allows
for the establishment of the Commission for Conciliation, Mediation, and Arbitration (CCMA) for
dispute resolutions. 
 The transfer of employment contracts between the existing and new employers is
explained. 
 Provides a framework where the employees, trade unions, and employers work
together to discuss matters relating to employment, e.g. wages, and conditions of
employment. 
 Promotes orderly negotiations and employee participation in decision-making in the
workplace. 
 Promotes resolution of labour disputes. 
 Provides simple procedures for the registration of trade unions and employers'
organizations. 
 Regulates the rights of trade unions and facilitates collective bargaining. 
 Regulates the effectiveness of bargaining councils and statutory councils.  
 Establishes workplace forums to promote the interest of all employees in the workplace
whether they belong to the trade union or not. 
 Endorses the right to strike against retrenchments, and facilitates labour
disputes. 
 Clarifies the transfer of contracts of employment procedures. 
 Any other relevant answer related to the purpose of the Labour Relations Act (LRA)
Max (4)
Business Studies P1 NSC June 2024 Common Test
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BUSINESS OPERATIONS
4.5 Factors that influence pricing
 Input cost
 Demand for the product
 Target market
 Type of product
 Availability of substitute products 
 The economic climate and availability of goods
(1 x 1) (1)
Note: Mark the first ONE only.

4.6.1
PRICING TECHNIQUE MOTIVATION
1. Cost-based/orientated  The manager of HM adds a profit
pricing percentage to the cost of an item, when
determining the price at which the item will
be sold. 
NOTE : 1. The answer does not have to be in tabular format.
2. Awards marks for the pricing technique even if there is no motivation.
3. Do not award marks for motivation, if pricing technique is
incorrectly identified.
Sub Max (3)
4.6.2.1 Penetration pricing
 Penetration pricing happens when products are sold at very low prices to attract
consumers to products that are being introduced into the market. 
 The aim is to convince customers to buy the product, and as soon as the
introductory offer is over, the price is increased. 
 It is often used for new products, and it is not a profitable long-term marketing
strategy. 
 Any other relevant answer related to penetration pricing.
Sub max (4)
Business Studies P1 NSC June 2024 Common Test
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4.6.2.2 Psychological pricing

 Psychological pricing uses the customers’ emotional response to encourage
sales. 
 The idea behind it is that customers will read the slightly lower price and consider it
to be lower than the price is. 
 For example, the avocados and apples are priced at R6,99 and R24,99
respectively, instead of R7,00 and R25,00. The customers mentally view the item as
cheaper. 
 Any other relevant answer related to psychological pricing.
Sub max (4)
Max (8)
4.7 Requirements of a good trade mark
 A trademark must be attractive for the consumer. 
 It is important that it suits the product. 
 The trademark must be suitably designed for the target market. 
 It must be different from its competitors. 
 It must also promote the image of the enterprise. 
 Enterprises use it for display and therefore it must be suitable for display purpose. 
 It must be possible to link the product to its promotion strategy. 
 It must indicate the name and contact details of the manufacturer. 
 Any other relevant answer related to requirements of a good trade mark.
Max (6)
4.8 Importance of pricing
 It defines the value of the product in terms of production costs and customer use. 
 It is a tangible price point that lets customers know whether the product will be worth
their time and investment. 
 The pricing process needs to consider flexibility/discount/territory/life cycle
status/allowance. 
 The price of a product can influence the consumers’ attitude towards the product or the
brand. 
 Pricing too high may have a negative impact/decrease in sales. 
 If the price is too low, consumers may perceive the product as being of poor quality.

Business Studies P1 NSC June 2024 Common Test
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 The price of a product must make provision for transport costs. 

 The price of a product should take the VAT into account. 
 Any other relevant answer related to importance of pricing.
Max (4)
[40]

BREAKDOWN OF MARK ALLOCATION

4.1 2
4.2.1 6
4.3 6
4.4 4
4.5 1
4.6.1 3
4.6.2.1 4
4.6.2.2 4
4.7 6
4.8 4
TOTAL 40
Business Studies P1 NSC June 2024 Common Test
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SECTION C
QUESTION 5: BUSINESS ENVIRONMENTS

5.1 Introduction
 Managers should be able control the micro environment, to ensure the
efficient running of the business.. 
 Business managers should be advised of why they have more control over
the micro environment and less control over the market environment, in order to
manage the business properly. 
 Businesses should be able to identify the challenges of the market environment,
in order to stay ahead of their competitors. 
 Business must find different ways to overcome competition in the
market. 
 Any other relevant introduction related to the business environment.
Any (2x1)(2)

5.2 Meaning of the micro environment

 The micro environment is the internal business environment it includes everything
inside the business. 
 All the internal affairs of the business are managed by directors or the owners of the
business. 
 The micro environment is also known as the internal operating system. 
 A business has full control / complete control over the micro environment. 
Any other relevant answer related to the meaning of the micro environment.
Max (8)

5.3 Reasons why businesses have full control over the micro-environment
 Businesses establish and revise its vision, mission statement, goals, and
objectives in line with current trends. 
 Businesses engages strategic management systems and ensures that plans are
implemented and revised when necessary. 
 They establish policies, procedures, and management structures that could move
the business in the right direction. 
Business Studies P1 NSC June 2024 Common Test
18
 They also ensure that all the business’ resources are used efficiently and
effectively to the benefit of the business. 
 Businesses are ensuring that all employees understand the culture of the
business,and are working toward the agreed goals and values that accommodate
all the stakeholders of the business. 
 Businesses are leading employees, organising and directing their activities, and
controlling their actions to achieve the goals and objectives of the business. 
 Any other relevant answer related to reasons why businesses have full control over
the micro-environment. Max (10)
OR

Reasons why businesses have limited control over the market environment.
 A business only has limited control over the market environment , but in some
cases , it is possible to influence and shape some components in this environment .. 
 Market environment for a business includes company related influences.
 The market environment refers to influences that have an impact on the success in
forming and keeping a sustainable business such as competition and suppliers
 Businesses can influence their competitors by increasing the quality of their
products√ in relation with competitor prices
 The opposite can also be that suppliers’ raw materials can influence
the quality of business products
 Any other relevant answer related to reasons why businesses
have limited control over the market environment. Max (10)
5.4 Challenges of the market environment
5.4.1 Shortages of supply
 Essential for a business to have a regular supply  of all the materials that are inputs in
the production process. 
 Any shortage  can have a seriously negative effect on production and profits. 
 Dissatisfied customers can damage the reputation  and threaten the future of the
business. 
 The business needs to plan and communicate  well so that any change in goods and
services needed is fulfilled on time. 
 Any other relevant answer related to shortage of supply.
Challenge(2)
Explanation(2)
Submax. (4)
Business Studies P1 NSC June 2024 Common Test
19
5.4.2 Competition 
 Other businesses which sell similar/substitute products  pose a problem to/threaten the
success of a business. 
 Consumers will buy  from the business where they get the most value for their
money. 
 If a business is not able to match the quality of service/products and the price of its
competitors, it will be in real danger. 
 Businesses could find that they are unable to make sufficient profit when the demand is
not high enough to support the supply of the same goods/ services. 
 The business must ensure that it differentiates itself from its competitors  in order to
gain a competitive advantage. 
 The challenges around competitors can be industry rivalry where businesses aim to sell
more than competitors, new entrants with better products/cheaper or better substitutes
 Businesses should be aware of competitors  and their prices/influences/operation. 
 Any other relevant answer related to strong competition.
Challenge(2)
Explanation(2)
Submax. (4)
5.4.3 Changes in consumer behaviour 
 A business is dependent on its customers  /to purchase its products. 
 Consumers are influenced by many factors  / and are mostly unpredictable in their
buying behaviour. 
 Consumers’ preferences and tastes can change  / as fashions change and as
technology advances. 
 Changes in consumer behaviour, spending habits, tastes and preferences present an
ongoing challenge to businesses. 
 The challenges include keeping up with changes in consumer tastes and demand by
doing research, finding ways to influence consumer demand /and /conducting
/advertising /campaigns /and consumer surveys. 
 Businesses should be aware of and understand changes in demand and the
behavioural patterns of consumers and adjust accordingly. 
 Any other relevant answer related to changes in consumer behaviour.
Challenge(2)
Explanation(2)
Submax. (4)
Business Studies P1 NSC June 2024 Common Test
20
5.4.4 Demographics and psychographic 
 Consumers’ attitude, interest, opinions and lifestyle  determine the characteristics of the
consumer. 
 It is difficult to determine the demographics/psychographics of the target market
because they change frequently. 
 Business should be aware of the diversity of the markets  and the cultural and social
influences on the choices people they make. 
 The challenges include collecting/interpreting information about the target market and
to use the data to develop a marketing strategy. 
 Business need to study the attitudes, tastes and desires of the market. 
 The demographics and psychographics can change quickly and businesses need to
change just as quickly  if they want to retain their customers. 
 Any other relevant answer related to demographics and psychographic.
Challenge(2)
Explanation(2)
Submax. (4)
5.4.5 Socio-cultural factors 
 Social-cultural factors describe the common behaviour and attitudes  of a particular
society. 
 As society changes  so will the cultural values and practices of individuals. 
 Business must be aware of change  and that they can avoid threats and take
advantage of the new opportunities that the change may present. 
 Business should be aware of social trends and influential campaigns  that promote
buying. 
 The challenge is to gather information about changes  and to respond to them by
adapting practices to maintain and increase its customer base. 
 Any other relevant answer related to socio-cultural factors.
Challenge(2)
Explanation(2)
Submax. (4)
Max (16)
Mark the first FOUR (4) only.
Business Studies P1 NSC June 2024 Common Test
21

5.5 Ways in which businesses can overcome competition in the market

 Businesses must ensure that they produce unique/ differentiated goods or services for
the target market. 
 Businesses need to provide more personalised services by being responsive to their
customer’s needs/ wants. 
 Goods / services must be priced lower than competitor’s goods/ services in the
market. 
 Businesses must produce high quality goods / services that the customers might be
interested in. 
 Create a positive image / publicity through regular engagements in community
development projects. 
 Businesses must improve on customer services and keep customers happy. 
 Businesses must create a positive outlook by regularly renovating their premises and
improving their systems. 
 Businesses must undertake good marketing campaigns that will draw the attention of the
target market. 
 Businesses must offer low-cost extras such as improved credit terms/discounts/loyalty
schemes etc. 
 Businesses must ensure that they have well-trained and dedicated employees that create
a better working atmosphere. 
 Any other relevant answer to the ways in which businesses can overcome competition in
the market Max (12)
5.6 Conclusion
 General managers have full control over all components/departments of the micro
environment and should ensure the efficient running of the business. 
 Businesses can influence the business environments in one way or the
other, and need to take into consideration the components of the market
environment. 
 Businesses must pay careful attention to challenges that are posed by
market environment and devise strategies to overcome those challenges. 
 Businesses that find ways to overcome competition in the market, will be able to maintain
a competitive advantage. 
 Any other relevant conclusion related to the business environments
Any (1x2) (2)
Business Studies P1 NSC June 2024 Common Test
22

QUESTION 5: BREAKDOWN OF MARK ALLOCATION

DETAILS MAXIMUM TOTAL
Introduction 2
Meaning of micro environment 8
Reasons why businesses have
more control over the micro
10
environment/less control over
market environment
Challenges of the market Max
16
environment 32
Ways in which businesses can
overcome competition in the
market 12

Conclusion 2
INSIGHT
Layout 2
Analysis/Interpretation 2 8
Synthesis 2
Originality/Examples 2

40
TOTAL MARKS
LASO – For each component:
Allocate 2 marks if all requirements are met.
Allocate 1 mark if some requirements are met.
Allocate 0 marks where requirements are not met at all.
Business Studies P1 NSC June 2024 Common Test
23
QUESTION 6: BUSINESS OPERATIONS

6.1 Introduction
 Businesses must ensure that safety in the workplace is managed properly. 
 It is important for all businesses to understand the requirements that should be met to
ensure a safe environment. 
 Employees should know the safety precautions when handling machinery. 
 Managers should ensure that businesses comply with the Occupational Health and
Safety Act (OHSA). 
 Any other relevant introduction related to reasons why businesses must manage
safety in the workplace/requirements for a safe environment/precautionary measures
that businesses should take when handling machinery/ways businesses can comply
with the Occupational Health and Safety Act.
Any (2 x 1) (2)

6.2 Reasons why businesses must manage safety in the workplace

 Workplace accidents can result in injuries and deaths, and can result in possible
financial trouble for the business. 
 The publicity of workplace accidents will negatively impact a business’
image. 
 Regular or serious workplace accidents may even cause investors to withdraw their
money and invest it in another company. 
 Employees may lose confidence in the business and leave it to join safer companies.

 Potential employees may decide not to accept a job offer at a business where many
accidents have occurred. 
 Any other relevant answer related to reasons why businesses must manage safety in
the workplace.

Max (10)

6.3 Requirements for a safe environment

 A safety policy - businesses should draw up their safety policy and enforce
necessary control measures. 
Business Studies P1 NSC June 2024 Common Test
24
 Visible warning signs - the necessary safety warnings and signs should be visible in
the workplace.
 The business should inform employees of any dangers in the workplace. 
 First aid kits - businesses are required to have an up-to-date first aid kit in an easily
accessible place. 
 According to law, at least one employee should be trained in first aid, and he/ she
should be available on site. 
 Safe working environment - there should be no hazardous substances that can
cause damage, disease, or injury to employees or visitors. 
 Information, instructions, and training should be provided to all employees. 
 Workers should be informed of the potential safety and health hazards. 
 Any other relevant answer related to requirements for a safe environment.

Max (14)
6.4 Precautionary measures that businesses should take when handling machinery
 Every employee must be familiar with the safety procedures of the
business. 
 Management must strive to develop a culture of safety in the workplace. 
 The business must ensure that all machinery and equipment are correctly installed
and safe to use. 
 All the workers must be properly trained on how to use machinery, and must be
informed about the risks when using the machinery. 
 Regular safety checks must be carried out, and machinery should be maintained and
serviced regularly. 
 Workers need to wear protective clothing and gear. This includes items like overalls,
safety helmets, masks, heavy-duty safety boots, and welding goggles when working
with machinery and equipment. 
 Hard hats should always be worn on construction sites by all persons on the site. 
 Any other relevant answer related to precautionary measures that businesses should
take when handling machinery.
Max (12)

6.5 Ways businesses can comply with Occupation Health and Safety Act (OHSA)
 Provide workers with protective gear to protect themselves against potentially
dangerous situations. 
 Ensure that first aid boxes are readily available at the workplace and in the factory. 
Business Studies P1 NSC June 2024 Common Test
25
 Make fire extinguishers available at the workplace or in the factory. 
 These fire extinguishers need to be serviced regularly. 
 Machinery must be maintained at regular intervals and repaired promptly. 
 Any other relevant answer related to ways businesses can comply with Occupational
Health and Safety Act (OHSA).

Max (10)
6.6 Conclusion
 Managers that are aware of the reasons why safety should be managed in the
workplace, will run successful businesses. 
 Businesses should follow the necessary requirements to ensure a safe working
environment . 
 Managers should advise employees on preventative measures when handling
machinery. 
 Businesses should comply with OHSA to avoid penalties. 
 Any other relevant conclusion related to reasons why businesses must manage safety
in the workplace/requirements for a safe environment/precautionary measures that
businesses should take when handling machinery/ways businesses can comply with
the Occupational Health and Safety Act.
Any (1 x 2) (2)
Business Studies P1 NSC June 2024 Common Test
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BREAKDOWN OF MARKS
Details Maximum Total
Introduction 2
Reasons why businesses must manage safety in 10
the workplace
Requirements for a safe environment 14 Max 32
Precautionary measures that businesses should 12
take when handling machinery
Ways businesses can comply with OHSA 10
Conclusion 2
INSIGHT
Layout 2
Analysis, interpretation 2
Max 8
Synthesis 2
Originality/Examples 2
TOTAL MARKS 40

LASO – For each component:

Allocate 2 marks if all requirements are met.
Allocate 1 mark if some requirements are met.
Allocate 0 marks where requirements are not met at all.