Business studies ieb GR12

What is UIF in insurance?

UIF stands for Unemployment Insurance Fund, which provides short-term relief for maternity, unemployment, and illness.

What does COIDA stand for?

COIDA stands for Compensation for Occupational Injuries and Diseases Act.

What is the purpose of the Road Accident Fund?

The Road Accident Fund provides compensation for injuries sustained in road accidents.

What is required by law in terms of insurance?

Certain types of insurance, such as UIF and COIDA, are required by law.

What does fire insurance cover?

Fire insurance covers damages to valuable items due to fire, depending on the value of the insured item.

What is crop insurance?

Crop insurance protects farmers against losses due to drought, heatwaves, floods, or famine.

What is fidelity insurance?

Fidelity insurance covers financial losses caused by employee embezzlement or dishonesty.

What does general business insurance cover?

General business insurance covers various risks including third-party liability and natural disasters.

What is the difference between long term and short term insurance?

Long term insurance is for events that will definitely happen, such as death, while short term insurance covers events that might happen, like fire or fidelity.

What is a requirement for obtaining insurance?

1. Absolute good faith and honesty in providing information. 2. Insurable interest, meaning you must prove that a financial loss will occur. 3. Contractual capacity, indicating that the individual must be of sound mind.

What happens if you do not answer insurance questions honestly?

You may be declined insurance.

What does insurable interest require?

You must prove that a financial loss will occur.

What does contractual capacity refer to in insurance?

It refers to being of sound mind and legally able to enter into a contract.

What is the purpose of indemnity insurance?

To provide peace of mind for insured items against possible loss.

What does long-term insurance provide security for?

Retirement, death, or disability.

What is the Average Clause in insurance?

It applies when an asset isn't insured properly at its correct value.

What is the Excess in an insurance policy?

The percentage that determines what the insured must pay.

What does the term Proximate refer to in insurance claims?

The person claiming from an insurance company for something they insured.

What is subrigation in the context of insurance?

The insured must claim from the insurance company, not the guilty party.

What does Assignment refer to in insurance policies?

The right to transfer a policy to a third party.

Define Risk, Peril, and Hazard in insurance terms.

Risk is the probability of an event happening; Peril is a possible cause of loss; Hazard is an event that increases the risk.

What is the main focus of top quality management in a business?

To ensure total customer satisfaction by dedicating efforts to the quality of tasks.

What is benchmarking in the context of business performance?

It involves comparing business performance to ideal standards and implementing measures to close performance gaps.

What are the key financial ratios used to assess business performance?

Solvency, investment return, profitability, and liquidation.

What methods are used to evaluate and improve staff performance?

Performance appraisal and self-evaluation.

What method helps in making decisions based on advantages and disadvantages?

Pros and Cons analysis.

What is a Decision Tree used for?

To help decision makers look at multiple options and consider their outcomes.

What is the goal of Value Chain Analysis?

To add value to the customer.

What does PE^2STLE stand for in analysis?

Political, Economic, Ethical, Social, Technology, Legal, Environment.

What is the purpose of a SWOT analysis?

To evaluate both the internal and external environment of a business.

What is the Delphi Technique used for?

To gather expert opinions anonymously.

What does the Resource-based Approach focus on?

Identifying which resources provide a competitive advantage and maintaining them.

What does the Balanced Scorecard describe?

Key outcomes that a business evaluates to improve performance.

What are the four types of strategies mentioned in strategic management?

Generic, corporate, integration, and defensive strategies.

What is the role of top management in strategic management?

Top management scans events in the business environment.

What are the three generic strategies?

Low cost strategy, differentiation strategy, and niche market strategy.

What is a low cost strategy?

A strategy based on having the lowest costs achieved through cheap raw materials, mass production, technology, reengineering, and outsourcing.

What defines a niche market strategy?

Aimed at specific markets based on location, age, and hobbies, requiring knowledge of the market and the ability to develop tailored products.

What is differentiation strategy?

Providing unique products or services based on quality, after-sales support, product features, and marketing.

What are the components of corporate strategies?

Growth strategy, defensive strategy, and corporate combination.

What is a defensive strategy in business?

Reducing operational functions or products, which may include retrenchment, divestiture, or liquidation.

What is market penetration?

Using existing products to expand within existing markets at the lowest price.

What does product development involve?

Creating new or modified existing products for existing markets.

What is market development?

Introducing existing products into new markets.

What is diversification in business strategy?

Developing new products for new markets.

What are the three types of integration strategies?

Forward integration, backward integration, and horizontal integration.

What is forward integration?

A strategy where a business takes over one of its distributors to eliminate the middleman in the distribution process.

What does backward integration aim to achieve?

Eliminating supplier power by creating its own factory or acquiring suppliers.

What is horizontal integration?

A strategy where a business takes over one of its competitors.

What is a retrenchment strategy?

A defensive strategy that reduces the size of the business or its range of products or services.

What are the key components of strategic planning in marketing?

Vision, mission, creating the marketing strategy, and implementing the marketing strategy.

What is the purpose of an environmental scan in marketing?

To analyze both internal and external markets and define the target market and unique selling point.

What are the 7 P's of marketing that should be implemented in a marketing strategy?

Product, price, place, promotion, people, physical evidence, and process.

What is the significance of determining a unique selling point in marketing?

It helps differentiate the product/service from competitors and attract customers.

What consumer rights are protected under the Consumer Protection Act?

Rights against discriminatory marketing practices, privacy, choice, disclosure of information, fair and responsible marketing, fair value, good quality, and safety.

What is the role of the Advertising Standards Authority (ASA) in marketing?

To ensure businesses advertise in an ethical and legal manner.

What distinguishes ethical marketing from unethical marketing?

Ethical marketing adheres to legal standards and promotes transparency, while unethical marketing may involve false needs and deceptive practices.

What are the steps influencing buyer decision-making?

Receiving salary or influence, seeking information, weighing alternatives, making a purchase decision, and post-purchase behavior based on experience.

What is branding and what are its two forms?

Branding involves brand names and trademarks, with two forms being manufacturing trademarks and retailer trademarks.

What is brand extension in marketing?

Launching a new product under an existing brand in similar markets.

What is brand stretching?

Using an existing brand to enter new markets or services.

What are important factors for maintaining or creating brand value?

Consistency, clear identity, trust, closeness with customers, and a distinctive voice.

What is franchising in the context of marketing?

A contract between a franchisor and franchisee where the franchisee operates a business using the franchisor's brand.

What are the advantages of franchising for franchisees?

Good chance of success, easier access to capital, and support from the franchisor.

What are the advantages of franchising for franchisors?

Easily expand without large capital investment and the ability to leverage franchisee resources.

What are some disadvantages of franchising for franchisees?

Franchisees may face frustrations related to operational restrictions and ongoing fees.

What is the importance of evaluating marketing strategy success?

To identify performance gaps and make necessary adjustments to improve effectiveness.

What does the term 'post-purchase behavior' refer to?

The buyer's experience and satisfaction after making a purchase.

How does a marketing strategy help in building a brand?

By gaining new customers and strengthening brand identity.

What is the role of marketing in consumer protection?

To ensure fair practices and protect consumer rights in the marketplace.

What is the significance of a marketing budget in strategy formulation?

It determines the financial resources allocated for marketing activities and initiatives.

What are the three levels of management in an organization?

Top management, middle management, and lower management (supervisors).

What is the role of an entrepreneur in business?

An entrepreneur utilizes all factors of production to start a business, identifies opportunities, understands target markets, and assesses environmental factors.

What is the importance of communication in general management?

Clear communication and cooperation are essential for coordinating efforts among all stakeholders.

What is a key characteristic of effective decision-making in management?

Decision-making must be objective, free from personal opinions that could affect outcomes.

What does it mean to have global awareness in management?

It involves understanding the global environment and its impact on business opportunities and threats.