Business Studies Grade 12 – Creative Thinking, Problem Solving & Strategy (Ch. 1 pp. 27–38)

25 Question-and-Answer flashcards covering key Grade 12 Business Studies concepts: environments, environmental scanning, creative problem solving, analytical tools (PESTLE, SWOT, Delphi, Value Chain, Balanced Scorecard), strategic management, and competitive strategies.

Which three levels make up the business environment that managers must analyse?

The micro environment, the market environment, and the macro environment.

What is the primary purpose of environmental scanning in a business context?

To gather information about current and future internal and external events so that the firm can realign resources and gain competitive advantage.

Why is creative thinking crucial when solving business problems?

Because it helps a firm discover unmet consumer needs and devise innovative solutions that create or maintain competitive advantage.

State the first step in a structured problem-solving process.

Identify the resource gap and obtain the required resources.

During problem solving, what should a business do after identifying a resource gap?

Explain the impact on the business and consider different possible solutions.

What is the final step of the three-step problem-solving model presented in the notes?

Choose the best solution(s) and explain it in breadth and depth.

How does a Pros-and-Cons chart assist decision making?

By listing and weighing the advantages and disadvantages of each alternative to clarify the best choice.

What type of visual tool asks a series of yes/no questions to guide choices, such as deciding whether to answer a SMS while studying?

A decision tree.

Differentiate between internal and external customers.

Internal customers are co-workers or supervisors within the firm, while external customers are individuals or organisations that buy the firm’s products or services.

What is the main aim of Value Chain Analysis?

Adding value for customers in a cost-effective manner throughout the entire business process.

Expand the PESTLE acronym.

Political, Economic, Social, Technological, Legal, Environmental (Ethical is sometimes included within Social or Legal).

In a SWOT analysis, which quadrant deals with internal factors that make the firm superior to rivals?

Strengths.

What type of factors are classified as ‘Threats’ in a SWOT analysis?

External issues that the business cannot change but must navigate around.

For what purpose is the Delphi Technique primarily used?

To collect expert opinions on a topic without bringing the experts together face-to-face.

According to the Resource-Based Approach, what should a business identify first when tackling a problem?

Which tangible and intangible resources are of strategic importance for building competitive advantage.

Give two examples of tangible resources and two examples of intangible resources in the Resource-Based Approach.

Tangible: scarce raw materials, buildings/equipment. Intangible: patents, brand reputation.

Name the four perspectives of the Balanced Scorecard.

Financial, Customer, Internal Process, and Learning/Growth perspectives.

Which Balanced Scorecard perspective would include measures like market share and customer retention?

The Customer Perspective.

What is the first task of top management in the strategic-management process?

Analyse internal and external events (trends or crises) that may affect the firm.

Define ‘strategy’ as used in business studies.

Any plan of action designed to achieve a desired outcome for the organisation.

List Porter’s three generic competitive strategies.

Low-cost leadership, differentiation, and focus/niche.

What are the three main integration strategies a firm can pursue?

Forward integration, backward integration, and horizontal integration.

Which defensive strategy aims at maintaining quality through continuous organisational-wide improvements?

Total Quality Management (TQM).

How does benchmarking contribute to improved organisational performance?

By comparing the firm’s processes and metrics against best-in-class standards to identify performance gaps and adopt superior practices.

In strategic planning, what is the difference between a ‘trend’ and a ‘crisis’?

A trend develops gradually over time, whereas a crisis occurs suddenly and unexpectedly.