Business Studies Flashcards from Lecture Notes (Chapters 1-9)

A diverse set of practice flashcards covering key concepts from chapters 1–9, formatted as Q&A with a mix of direct questions and fill-in-the-blank prompts to aid exam preparation.

What are the three environments in the Business Environments framework?

Micro (internal), Market (external inputs like consumers, suppliers, intermediaries, competitors), Macro (PESTLE factors).

What is Environmental Scanning?

Process of obtaining information about current and future events that may impact business success to identify challenges and opportunities and develop flexible strategies.

PESTLE stands for , , , , , and .

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

Name the six forces in Porter's model (including complements).

Threat of new entrants; Rivalry among existing competitors; Threat of substitutes; Bargaining power of buyers; Bargaining power of suppliers; Complementary products/services.

What is SWOT Analysis used for?

To identify internal strengths and weaknesses and external opportunities and threats to inform strategy.

In SWOT, internal factors are Strengths and __.

Weaknesses

Value Chain Analysis

A review of internal activities that create value for customers; keep value-adding activities and outsource non-value-adding ones.

Resource-Based Analysis

Identify tangible and intangible resources, assess their strategic value, and determine how to use them for sustainable competitive advantage.

Marketing Mix: the 7 Ps

Product, Price, Place, Promotion, People, Process, Physical Evidence.

Brand Extension vs Brand Stretching

Brand extension uses an existing brand to launch a new product in a related market; Brand stretching uses the brand to enter an unrelated market.

Branding: key concepts for creating brand value

Brand represents values; Trademark; Brand consistency, clear identity, trust, distinctive voice; advantages include easier pricing and brand loyalty; Franchising expands reach with defined strategy.

King IV - 4 broad governance outcomes

Ethical culture; Good performance; Effective control; Trust and good reputation (with market/regulatory discipline and accountability).

JSE SRI

The JSE Social Responsibility Index identifies companies with strong governance and triple bottom line reporting; assesses CSR and sustainability for investors.

GRI

Global Reporting Initiative; international framework for sustainability reporting guiding economic, environmental, and social impact disclosures.

BCEA (Basic Conditions of Employment Act) basics

Regulates working hours, overtime, leave, notice periods, and minimum standards to protect employees.

UIF

Unemployment Insurance Fund; 1% of gross salary from employee and 1% from employer; provides unemployment, Maternity, illness relief; max days and amounts apply.

COIDA

Compensation for Occupational Injuries and Diseases Act; provides compensation for work-related injuries/diseases; employers pay annual fees based on risk.

RAF

Road Accident Fund; compulsory insurance for road users; covers injuries/rehabilitation; funded via petrol price.

Indemnification (in insurance)

Indemnifies the insured to restore them to the position before a loss; not a profit from insurance.

Insurance vs Assurance

Insurance transfers risk for events that may occur; Assurance covers events guaranteed to happen (life, retirement, etc.).

Debentures

Unsecured long-term debt instruments (bonds); provide interest income; higher risk than bank deposits but lower than shares; can be redeemable, irredeemable, or convertible.

Fixed Deposits

Fixed-term bank deposits with predetermined rate and maturity; low risk; penalties for early withdrawal; interest may be capitalised for growth.

Money Market Accounts

Short-term, highly liquid investments with higher interest than savings; very accessible; typically 1 month to 1 year terms.

Unit Trusts

A basket of shares managed by a fund manager; diversified; can be lump-sum or regular contributions; aims to outperform inflation over 3–5 years.

Real Estate as an investment

Long-term investment; potential capital appreciation and rental income; possible capital gains tax on second properties.

Ethical theories: Principle-based, Consequence-based, Utilitarian

Principle-based relies on intrinsic rules; Consequence-based on outcomes; Utilitarian evaluates actions by greatest good for the greatest number.

Conflict Management Styles (CM Approaches)

Accommodating, Avoidance, Collaborating, Competing, Compromise.

CCMA

Commission for Conciliation, Mediation and Arbitration; independent body that handles workplace disputes via conciliation, mediation, and arbitration.

POLC

Planning, Organising, Leading, Controlling — the four primary management functions.