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2.1 List any FOUR forces of Porter's Five Forces model - NSC Business Studies - Question 2 - 2018 - Paper 1
Question 2
2.1 List any FOUR forces of Porter's Five Forces model. 2.2 Outline the role of SETAs in supporting the Skills Development Act, 1998 (Act 97 of 1998). 2.3 Identify... show full transcript
Worked Solution & Example Answer:2.1 List any FOUR forces of Porter's Five Forces model - NSC Business Studies - Question 2 - 2018 - Paper 1
Step 1
Step 2
Outline the role of SETAs in supporting the Skills Development Act, 1998 (Act 97 of 1998).
Answer
SETAs play a critical role in implementing the Skills Development Act by facilitating the development and implementation of training programs. They assist in identifying the skills needs of various sectors and promote learning opportunities that enhance the skills of the workforce. Through collaboration with employers and training providers, SETAs ensure compliance and support the government's vision of improving skill levels across the economy.
Step 3
Identify the pillar of the Broad-Based Black Economic Empowerment Act (BBBEE), 2003 (Act 53 of 2003) that Mpho Auditors has complied with in EACH statement below:
Answer
2.3.1 Mpho Auditors uses Themba Shuttle services to transport their employees.
- This complies with the Enterprise Development pillar as they are supporting a black-owned business.
2.3.2 They have donated laptops to schools in rural areas.
- This falls under the Socio-Economic Development pillar which supports educational initiatives.
2.3.3 A learnership programme has been offered to all their employees.
- This is part of Skills Development, promoting training and educational opportunities.
2.3.4 Mpho Auditors has promoted two black females as heads of various departments.
- This ensures compliance with the Employment Equity pillar, promoting diversity in leadership.
2.3.5 They have invited the Bakwena community to buy shares in their company.
- This supports the Ownership pillar by encouraging community participation in business.
Step 4
Distinguish between product development and market development.
Answer
Product Development:
- Involves generating new ideas and developing a new product or service.
- It includes introducing a new product or service into existing markets.
Market Development:
- Focuses on exploring new markets for existing products.
- It involves finding new customers or increasing market share through strategic marketing.
Step 5
Step 6
Discuss the negative impact of the Act, identified in QUESTION 2.5.1, on MGM.
Answer
The violation of the Occupational Health and Safety Act can lead to several negative impacts on MGM, including:
- Potential fines and legal liabilities resulting from non-compliance.
- Increased insurance costs due to higher risks associated with workplace injuries.
- Damage to company reputation, leading to decreased customer trust.
- Low employee morale due to unsafe working conditions, which can further lead to high turnover rates.
Step 7
Step 8
Identify THREE challenges for SEE's business and classify EACH challenge according to the business environment.
Answer
a) SEE employees are regularly absent from work.
- Micro Environment (Internal Challenge)
b) They buy their raw material from Early Bird Maize Farm which is out of stock sometimes.
- Market Environment (External Challenge)
c) The local government has instructed the management of SEE to register their products with the South African Bureau of Standards.
- Macro Environment (Regulatory Challenge)
Step 9
Analyse the impact of the National Credit Act, 2005 (Act 34 of 2005) on business.
Answer
The National Credit Act imposes several requirements that affect business operations:
- It requires businesses to assess the creditworthiness of borrowers, which can limit the ability to extend credit to customers.
- Businesses must maintain strict compliance with reporting standards, which increases administrative burdens.
- The Act aims to prevent over-indebtedness among consumers, which can impact sales for businesses that rely on credit as a payment option.