Grade 12 IEB Business Studies Terminology Bank

A comprehensive collection of key Grade 12 IEB Business Studies terminology across all major syllabus sections including environments, strategies, legislation, and management.

Micro environment

Internal factors that the business can largely control.

Market environment

External factors that the business can influence to some extent.

Macro environment

External factors over which the business has little/no control.

Business strategy

A plan developed to achieve business objectives.

Environmental scanning

Monitoring internal and external factors affecting the business.

SWOT analysis

Identifies strengths, weaknesses, opportunities and threats.

PESTLE Analyses

Political, Economic, Social, Technological, Legal and Environmental factors.

Threat

An external factor that could negatively affect the business.

Opportunity

An external factor that could benefit the business.

Strength

An internal advantage of the business.

Weakness

An internal limitation of the business.

Forward integration

Business takes control of activities closer to the customer.

Backward integration

Business takes control of its suppliers.

Horizontal integration

Business combines with/acquires a competitor at the same level.

Diversification

Business enters a completely new market/product area.

Market penetration

Increasing sales of existing products in an existing market.

Market development

Existing products are introduced into new markets.

Product development

Developing new products for an existing market.

Divestiture

Selling off part of a business.

Liquidation

Business sells its assets to pay debts and ceases operating.

Contingency plan

A plan prepared for possible future problems/emergencies.

Value chain

Activities through which a business creates value for customers.

Employment Equity Act (EEA)

Promotes equal opportunity and fair treatment in employment.

Basic Conditions of Employment Act (BCEA)

Establishes minimum employment conditions.

Labour Relations Act (LRA)

Regulates labour relations and protects workplace rights.

Skills Development Act (SDA)

Promotes employee skills development and training.

COIDA

Provides compensation for occupational injuries/diseases.

BBBEE

Framework aimed at increasing economic participation of previously disadvantaged South Africans.

Consumer Protection Act (CPA)

Protects consumers and regulates business-consumer relationships.

National Credit Act (NCA)

Regulates credit and protects consumers from irresponsible lending.

Redress

Correcting an unfair situation or addressing past disadvantage.

Compliance

Following laws, regulations and requirements.

Discrimination

Unfair treatment based on a prohibited characteristic.

Affirmative action

Measures intended to improve employment opportunities for disadvantaged groups.

Autocratic leadership

Leader makes decisions with little/no employee input.

Democratic leadership

Employees participate in decision-making.

Laissez-faire

Employees receive substantial freedom to make decisions.

Situational leadership

Leadership style changes according to circumstances.

Transactional leadership

Employees are motivated through rewards and consequences.

Transformational leadership

Leader inspires employees to achieve change and a shared vision.

Delegation

Giving responsibility/authority to another person while retaining overall accountability.

Accountability

Being responsible for decisions and outcomes.

Authority

The right/power to make decisions.

Coordination

Ensuring activities work together effectively.

Ethics

Moral principles that guide behaviour.

Professionalism

Conducting oneself according to expected professional standards.

Code of ethics

Guidelines establishing expected ethical behaviour.

Conflict of interest

Personal interests interfere with professional responsibilities.

Bribery

Offering/giving something of value to influence someone's decision.

Corruption

Dishonest or unlawful use of power for personal gain.

Transparency

Openness and honesty in business dealings.

Whistle-blowing

Reporting unethical/illegal behaviour.

Tax avoidance

Legally arranging affairs to reduce tax liability.

Tax evasion

Illegally avoiding paying tax.

Social responsibility

Responsibility to contribute positively to society.

CSR

Business's ongoing responsibility to operate ethically and contribute to society/environment.

CSI

Investment of business resources to achieve social outcomes.

Corporate citizenship

Business acting as a responsible member of society.

Sustainability

Meeting current needs without preventing future generations from meeting theirs.

Triple bottom line

People, Planet, Profit.

Social investment

Using business resources to create social benefits.

Stakeholder

Person/group affected by or able to affect the business.

Community development

Activities aimed at improving a community's social/economic conditions.

Recruitment

Process of attracting suitable candidates.

Selection

Choosing the most suitable candidate.

Induction

Process of familiarising new employees with the organisation.

Placement

Assigning an employee to a suitable position.

Job description

Describes duties and responsibilities of a position.

Job specification

Describes qualifications, skills and characteristics required.

Performance appraisal

Formal evaluation of employee performance.

Performance management

Process of managing and improving employee performance.

KPI

Measurable indicator used to assess achievement of objectives.

Staff turnover

Rate at which employees leave and are replaced.

Fringe benefits

Additional benefits received in addition to salary.

Time-related pay

Employee is paid according to time worked.

Piecemeal pay

Employee is paid according to quantity produced.

Employment contract

Agreement setting out employment terms and conditions.

Exit interview

Interview conducted when an employee leaves to identify reasons for leaving.

Team

Group of people working towards a common goal.

Team dynamics

Interactions and relationships between team members.

Conflict

Disagreement between individuals/groups.

Conflict management

Methods used to resolve/manage disagreements.

Mediation

Neutral third party helps conflicting parties reach an agreement.

Negotiation

Parties discuss differences to reach an agreement.

Collective bargaining

Negotiation between employer and employees/union about employment conditions.

Picketing

Employees demonstrate peacefully to express dissatisfaction.

CCMA

Commission for Conciliation, Mediation and Arbitration.

NEDLAC

Forum where government, business and labour discuss socio-economic issues.

Quality control

Checking products/services to identify defects.

Quality assurance

Planned processes designed to prevent defects.

Quality management

Overall approach to maintaining and improving quality.

Total Quality Management (TQM)

Organisation-wide commitment to continuous quality improvement.

Quality circle

Group of employees who meet to solve work-related quality problems.

Continuous improvement

Ongoing effort to improve processes/products.

Benchmarking

Comparing performance against leading businesses/standards.

Quality standards

Required level of quality that products/services should meet.

Target market

Specific group of consumers a business aims to serve.

Market research

Gathering information about customers/market.

Market segmentation

Dividing a market into groups with similar characteristics.

Product

Good/service offered to customers.