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QUESTION 2: BUSINESS ENVIRONMENTS 2.1 Name any TWO types of integration strategies - NSC Business Studies - Question 2 - 2020 - Paper 1
Question 2
QUESTION 2: BUSINESS ENVIRONMENTS 2.1 Name any TWO types of integration strategies. 2.2 Outline the steps in strategy evaluation. 2.3 Read the scenario below and ... show full transcript
Worked Solution & Example Answer:QUESTION 2: BUSINESS ENVIRONMENTS 2.1 Name any TWO types of integration strategies - NSC Business Studies - Question 2 - 2020 - Paper 1
Step 1
2.3.1 Quote THREE challenges for GTE from the scenario above.
Answer
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GTE could not export products to other countries due to the lockdown, impacting their sales and revenue.
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Essential employees requested to work from home, indicating disruptions in normal operations and potential productivity losses.
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Sally Manufacturers delayed the distribution of personal protective equipment to GTE, highlighting supply chain challenges.
Step 2
2.3.2 Classify GTE's challenges according to the THREE business environments.
Answer
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Economic Environment: The inability to export products due to lockdown measures represents a significant economic challenge affecting trade and revenue.
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Social Environment: Employee requests to work from home reflect social factors influencing workplace dynamics and employee welfare during the pandemic.
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Supply Chain Environment: Delays from suppliers like Sally Manufacturers indicate challenges in the supply chain affecting operations.
Step 3
2.3.3 State the extent of control GTE has over EACH business environment named in QUESTION 2.3.2.
Answer
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Economic Environment: GTE has limited control over the external economic factors such as lockdowns imposed by the government which affect their ability to trade.
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Social Environment: GTE can exert some control through workplace policies and health measures to manage employee requests and well-being during the pandemic.
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Supply Chain Environment: GTE has partial control over their suppliers and can negotiate terms, but ultimately relies on suppliers’ capacities and external conditions.
Step 4
2.4.1 Management control
Answer
Management control is crucial as businesses must ensure compliance with BBBEE standards at all operational levels. This includes appointing black individuals in key management positions to enhance representation and decision-making processes. Companies must actively involve black stakeholders in management to foster a transformation culture.
Step 5
2.4.2 Skills development
Answer
Businesses should focus on engaging black employees in skills development initiatives. Providing training opportunities and mentorship can help build a capable workforce. Furthermore, businesses must dedicate a percentage of their payroll to skills development programs to comply with BBBEE requirements and facilitate growth in previously disadvantaged communities.
Step 6
2.5.1 Identify the Act that is applicable to CBS. Motivate your answer by quoting from the scenario above.
Answer
The applicable Act is the Labour Relations Act (LRA). This is evident as Martha's dismissal for late coming due to circumstances beyond her control relates directly to employment standards governed by LRA principles.
Step 7
2.5.2 Explain other actions that could be regarded as discriminatory according to the Act identified in QUESTION 2.5.1.
Answer
Other actions could include unfair treatment of employees based on their personal circumstances, such as denying promotions or opportunities because of absences due to valid reasons. Additionally, retaliating against employees for seeking assistance or legal recourse, like referring their cases to the CCMA, could also be seen as discriminatory.
Step 8
2.6.1 Technological
Answer
Businesses should continuously invest in research to adopt the latest technologies in their operations. This involves training current employees on new systems and hiring skilled personnel to bridge any technological gaps. Embracing e-commerce could also open new revenue streams while enhancing operational efficiency.
Step 9
2.6.2 Environmental
Answer
Businesses must ensure all chemicals and ingredients used in their products comply with safety regulations. Clearly indicating environmental practices on product packaging helps in building trust with consumers. Employing sustainable practices and reducing waste can help mitigate negative environmental impacts associated with production processes.