Business Studies Paper 1 Grade 11 Exemplars

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                                      BUSINESS STUDIES: PAPER I

Time: 2 hours                                                                    200 marks


1.        This exemplar consists of 12 pages. Please check that your exemplar is

2.        This exemplar covers the four Learning Outcomes for Business Studies:

          LO    1      Business   Environments
          LO    2      Business   Ventures
          LO    3      Business   Roles
          LO    4      Business   Operations

3.        Answer all the questions in the exemplar.

4.        Read the questions carefully and plan the length of your answers in relation to
          the marks allocated for each question.

5.        The exemplar consists of TWO sections:

          Section A: Short questions
          Answer this section on the supplied answer sheet provided at the end of the

          Section B:
           Answer each new question on a new page.
           Number your answers as the questions are numbered in the exemplar.

6.        Refer to the case study when required.

7.        Use your own words and insight when answering questions.

8.        Neatness and a systematic presentation of facts are essential.

9.        It is in your own interest to write legibly and to present your work neatly.

IEB Copyright  2007                                                            PLEASE TURN OVER
GRADE 11: BUSINESS STUDIES EXEMPLAR: PAPER I                                           Page 2 of 12

Read the case study and answer the questions that follow:

Vodacom (Pty) Ltd is the operating company responsible for the construction and maintenance of
                                                  Vodacom's GSM cellular network consisting
                                                  of in excess of 6 026 base stations serving
                                                  more than 12 million customers and
                                                  covering more than 95% of the South
                                                  African population.

                                                  Technical excellence is the goal of all
                                                  Vodacom (Pty) Ltd employees and this
                                                  subsidiary also recognises the potential that
                                                  its operations have for harming the
                                                  environment. Consequently, in June 1998,
                                                  Vodacom (Pty) Ltd became one of the few
                                                  GMS network operators worldwide to
                                                  receive the International Organisation for
                                                  Standardisation (ISO) 14001 environmental
                                                  certification and publicly committed itself to
managing and minimising impacts on the environment.

Vodacom (Pty) Ltd also boasts IS09001 certification, a commitment to quality that has resulted in
enhanced network performance and lower dropped call rates, greatly benefiting Vodacom
customers. Certification to this ISO standard requires companies to effectively implement a System
of Quality Management and be measured for quality purposes against business and quality
elements listed in the standards. The compliance to these requirements is recorded and measured
against the standards by an independent and accredited third party.

Vodacom has always placed a premium on offering its customers the
latest and widest range of value-added products and services. With the
expansion of the group in South Africa and on the continent, it has
become necessary to establish a new product division, to more
effectively serve all Vodacom Group companies with regard to the
development and introduction of new products and services, as well as
the management of certain products already launched.

Vodacom Service Provider Company (Pty) is South Africa's largest
cellular service provider and its customers represent over 70% of Vodacom's customer base.
Teljoy Cellular services (Pty) Ltd, GSM Cellular (Pty) Ltd and Vodac (Pty) Ltd were consolidated
into Vodacom Service Provider (Pty) Ltd in June 2000. This reorganisation was in line with cellular
trends worldwide and was also due to the emergence of prepaid technology, which resulted in
rationalisation and less dependence on the service provider model as the industry matured.

Not only has this ultimately resulted in significant economies of scale, it has enabled Vodacom to
have a more direct and closer relationship with its customers. Services are offered through its
distribution channels with more than 160 franchisee outlets (Vodashops and Vodacom 4U stores)
and over 7, 500 retail outlets. In 2004, the Vodashop franchisee won the FASA award for best
Franchisor and Franchisee.

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GRADE 11: BUSINESS STUDIES EXEMPLAR: PAPER I                                               Page 3 of 12

                                  Vodacom Service Provider Company (Pty) Ltd also manages
                                  Vodaworld; the first and only dedicated cellular shopping mall in the
                                  world and a resounding success ever since its 1998 launch. More
                                  than 70 000 people pass through its doors on a monthly basis. Face-
                                  to-face interaction is possible via its walk-in customer care centre.
                                  Walk-in customer care centres have also been opened at Canal
                                  Walk in Cape Town, Green acres in Port Elizabeth and Gateway
                                  Shopping Mall in Durban.

                                 Another area of responsibility includes the sourcing of mobile
handsets from several manufacturers around the world, on behalf of its dealer and distribution
network thus ensuring bulk discounts, which are passed on to the end-user. Unit sales currently
exceed 2.5 million units a year. The warehouse in Midrand handles an average 1 700 orders per
day. Of all deliveries to the distribution channel, 98% are finalised within 48 hours.

Vodacom Service Provider Company (Pty) Ltd repairs handsets through its Vodacare outlets,
consisting of 27 Branches and franchises in all the major centres, providing walk-in customer
support to Vodacom customers and an advanced repair centre hub for high level repairs situated in
Midrand. With an average of over 35 000 repairs per month, this dedicated customer services
support centre differentiated Vodacom's offering from that of our competitors.

                                                                  (Adapted from )

IEB Copyright  2007                                                                     PLEASE TURN OVER
GRADE 11: BUSINESS STUDIES EXEMPLAR: PAPER I                                      Page 4 of 12

SECTION A                    Short Questions

QUESTION 1                   Multiple Choice

Indicate the most correct answer by drawing a cross (X) over the
corresponding letter in the column on the provided answer sheet.

1.1       When a business acquires a licence to use the name, idea, processes and
          goodwill of an existing business (like Vodacom (Pty) Ltd) in a specific
          geographic area, it is known as ...

          a.           outsourcing
          b.           amalgamation
          c.           financial leasing
          d.           franchising

1.2       Which one of the following scenarios is not seen as a challenge from the market
          environment in which Vodacom (Pty) Ltd operates?

          a.           An advertising campaign by Virgin mobile promoting its wireless
                       technology service.
          b.           Lack of communication between top level management and lower level
                       management on a new salary structure.
          c.           Changes in the demographic structure of the target market.
          d.           Willingness of suppliers to negotiate changes in the price of raw

1.3       The diagram alongside depicts a ... factory layout, to be found at one of
          Vodacom (Pty) Ltd's processing plant that manufactures cellular
          telecommunications masts.

          a.           product  orientated     Machine X        Machine Y
          b.           fixed position
          c.           process - orientated
          d.           mass production

                                                        Machine Z

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GRADE 11: BUSINESS STUDIES EXEMPLAR: PAPER I                                             Page 5 of 12

1.4       In recent months the implementation of the number portability policy,
          introduced by the Minister of Telecommunications, has resulted in conflict at
          Vodacom (Pty) Ltd's head office. Top management has used the interactionst
          view to conflict management. This means that ...

          a.           conflict is natural and an inevitable part of the group dynamics.
          b.           there is the belief that all conflict must be avoided.
          c.           conflict is not only a positive force in a group, but also necessary for a
                       group or team to perform effectively.
          d.           none of the above

1.5       At a Vodacom outlet a consumer may see a cell phone charger with a three-
          point plug packaged together for sale. This is known as ... packaging.

          a.           speciality
          b.           double-use
          c.           kaleidoscopic
          d.           combination

1.6       The human resource department at Vodacom (Pty) Ltd has identified the need
          for a tactical plan to address the high rate of absenteeism in the operations
          department. This challenge is part of the ... environment.

          a.           micro
          b.           market
          c.           macro
          d.           SMME

1.7       The graph alongside depicts a ... graph of the operations plant at the Vodacom
          (Pty) Ltd site in Midrand.

             a.        total fixed cost
             b.        total variable cost            c
             c.        variable cost per unit         o
             d.        fixed cost per unit            s


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