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 scenario illustrates 'Bargaining Power of Suppliers' in Porter's Five Forces model, indicating that Local Plastics holds a unique position, limiting alternatives for retailers and allowing them greater control over pricing and supply.

This correlates to 'Barriers to Entry' within Porter's Five Forces, representing how significant capital investment creates a barrier for new entrants into the fashion industry, favoring established brands.

This points to 'Bargaining Power of Buyers,' as having regular clients who place large orders grants Medi-Care a stable income, showing the potential influence customers can have on a business's operations and pricing.

This reflects 'Threat of Substitute Products' again, shifting consumer preference from formal wear to functional items, emphasizing the need for businesses to understand consumer behavior and adjust their offerings accordingly.

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

The strategic management process involves several key steps:

1. Define Vision and Mission: Establishing the organization's purpose and the direction for achieving its objectives.
2. Environmental Scanning: Analyzing internal and external environments to identify strengths, weaknesses, opportunities, and threats (SWOT analysis).
3. Formulation of Strategy: Developing strategies based on the insights from the environmental scan. This may include using models like PESTEL (Political, Economic, Social, Technological, Environmental, and Legal factors).
4. Implementation: Executing the chosen strategy through the allocation of resources and establishing responsibilities.
5. Evaluation and Control: Monitoring performance against strategic goals to determine success and making necessary adjustments.

1. Developing sector skills plans.
2. Implementing the sector skills plans.
3. Administering learnerships.

The Skills Development Act aims to improve the skills of the South African workforce by promoting education and training, ensuring workers are more competent and better integrated into the economy. It also facilitates the implementation of strategies responsive to the skills needs of employers and employees.

1. Retrenchment: Restructuring the organization to reduce costs and improve efficiency, potentially leading to downsizing.
2. Diversification: Expanding into new markets or product lines to reduce risk and enhance stability.
3. Liquidation: Closing unprofitable divisions to focus on core business operations and pay off debts.

1. Right to Choose: Consumers have the right to select from a variety of goods and services at competitive prices.
2. Right to Access Information: Consumers are entitled to clear and truthful information regarding the products and services they purchase.
3. Right to Fair Treatment: Consumers should be treated fairly and without harassment in all transactions.

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

1. Ownership
2. Skills Development
3. Enterprise and Supplier Development

The BBBEE Act has significant implications for businesses: it promotes greater diversity in the workforce, ensures compliance with transformation requirements, and can enhance a company's reputation and competitiveness. Businesses must adopt inclusive practices to align with the goals of BBBEE.

The impact of the BBBEE Act can be viewed positively as it drives economic inclusion and growth for previously disadvantaged groups. However, it may also impose challenges such as compliance costs and the need for strategic changes in management practices. Overall, embracing BBBEE can lead to sustainable economic development and community upliftment.