Business Studies Paper 1 — NSC Final Exam Study Notes

Vocabulary flashcards covering core concepts, business environments, strategies, Grade 12 legislation, human resources, quality management, and leadership from the NSC Business Studies Paper 1 study notes.

Micro environment

Factors inside the business that management can generally control, such as vision, mission, organisational structure, resources, functions, and employees, over which the business has full control.

Market environment

External groups that interact directly with the business and create opportunities and threats, such as customers, suppliers, competitors, intermediaries, and trade unions, over which the business has little or minor control.

Macro environment

Broad external forces that affect the business and are largely outside its control, including economic, political, legal, technological, social, natural, international, and institutional factors, over which the business has no control.

Primary sector

The business sector involved in extracting and harvesting natural resources, such as mining, farming, fishing, and forestry.

Secondary sector

The business sector that processes and manufactures raw materials into finished or semi-finished goods, including factories, food processing, and construction.

Tertiary sector

The business sector that provides distribution and services to consumers or other businesses, such as retail, banking, transport, tourism, and education.

Formal sector

Registered, regulated businesses operating within the formal economy that usually keep records and comply with applicable laws.

Informal sector

Small-scale economic activities that may operate outside some formal structures, often with fewer resources and less formal administration.

Public sector

Enterprises owned and controlled by the state that are generally focused on providing public services and meeting public objectives.

Private sector

Enterprises owned by private individuals or investors that generally operate to generate profit, subject to legal requirements.

Market penetration

An intensive strategy that focuses on selling more of an existing product in an existing market.

Market development

An intensive strategy that involves taking existing products into a new market.

Product development

An intensive strategy that involves creating or improving products for an existing market.

Forward integration

An integration strategy where a business takes control of activities closer to the customer or distribution stage, such as a manufacturer buying or controlling a retailer.

Backward integration

An integration strategy where a business takes control of activities closer to the suppliers or input stage, such as a manufacturer buying or controlling a supplier.

Horizontal integration

An integration strategy where a business takes control of or combines with a competitor at the same level of the supply chain.

Divestiture

A defensive strategy that involves selling a part or division of a business that is no longer suitable or profitable.

Liquidation

A defensive strategy where a business sells its assets and winds up or closes the business, often to settle outstanding debts.

Retrenchment

A defensive strategy that reduces the scale or operating costs of a business to survive, often by cutting costs and resources.

Broad-Based Black Economic Empowerment (B-BBEE)

Legislation and policy designed to increase meaningful participation of previously disadvantaged South Africans in the economy and promote broader economic empowerment.

Skills Development Act 97 of 1998 (SDA)

An Act aimed at developing workforce skills, supporting training and learning opportunities, and improving employability and productivity.

Sector Education and Training Authority (SETA)

A body operating within a specific economic sector to identify skills needs, support and monitor training, facilitate workplace learning, and implement sector skills strategies.

Labour Relations Act 66 of 1995 (LRA)

An Act designed to promote fair labour relations, regulate relationships between employers, employees, and trade unions, support collective bargaining, and provide dispute resolution mechanisms.

Employment Equity Act 55 of 1998 (EEA)

An Act intended to promote equality in the workplace, eliminate unfair discrimination, and implement affirmative action for designated employers to improve the representation of designated groups.

Basic Conditions of Employment Act 75 of 1997 (BCEA)

An Act that sets minimum conditions of employment relating to working time, overtime, leave provisions, public holidays, meal intervals, and termination notice.

Compensation for Occupational Injuries and Diseases Act 61 of 1997 (COIDA)

An Act that provides a framework and system of compensation for employees who suffer injuries or contract diseases in the workplace.

National Credit Act 34 of 2005 (NCA)

An Act established to promote responsible credit granting, protect consumers in credit transactions, and support fair and transparent credit practices.

Consumer Protection Act 68 of 2008 (CPA)

An Act designed to protect consumers and promote fair, open, and transparent consumer transactions in the marketplace.

Credit provider

A person or business that provides credit to a consumer under a formal credit agreement.

Credit bureau

An organisation that collects, maintains, and provides credit-related information on consumers to authorised users.

Creditworthiness

An assessment of a consumer's financial reliability, ability, and risk level regarding credit repayment.

Cooling-off period

A legally provided period during which a consumer has the right to cancel or withdraw from certain transactions under applicable rules.

Guarantee

A formal agreement or assurance given to repair or replace goods that are faulty, subject to specific agreed terms.

Internal recruitment

The process of filling a job vacancy using candidates who already work within the business, such as through promotions, transfers, or internal notices.

External recruitment

The process of attracting candidates from outside the business using methods such as newspapers, online job postings, or recruitment agencies.

Job description

A written document describing the duties and responsibilities of a specific job, answering 'What will the employee do?'.

Job specification

A written document describing the qualifications, skills, experience, knowledge, and personal traits required for a candidate to fill a specific position.

Induction

The process of introducing a newly appointed employee to the business, its workplace, colleagues, policies, procedures, culture, and duties.

Placement

The process of assigning a newly hired employee to the most suitable position and work environment based on their skills and job requirements.

Time-related pay

A remuneration method where an employee is paid based on the amount of time worked.

Piece-rate pay

A remuneration method where an employee is paid based on the number of units or outputs produced.

Fringe benefits

Additional compensation or benefits provided to employees over and above their basic salary or wages, such as medical aid, pension contributions, and paid leave.

Quality

The degree to which a product, service, or process meets required standards, specifications, and customer expectations.

Quality control

The process of checking outputs and finished products to detect defects and verify that required standards are satisfied.

Quality assurance

A planned and systematic approach designed to prevent quality problems by ensuring processes and systems consistently comply with required standards.

Quality management

A comprehensive management approach involving planning, organising, leading, and controlling quality activities throughout an entire business.

Total Quality Management (TQM)

A business-wide approach where all employees and functional departments continuously work to improve processes, goods, and services to satisfy customer needs.

Quality circles

Small groups of employees who meet regularly to identify, investigate, and solve work-related quality problems and recommend improvements.

Prevention costs

Expenditures incurred to prevent defects before they happen, including staff training, quality planning, and equipment maintenance.

Appraisal costs

Costs associated with testing, inspecting, and checking whether products and processes meet specified quality standards.

Internal failure costs

Costs that arise from defects discovered before products or services reach the customer, such as rework, scrap, and material waste.

External failure costs

Costs that arise when defects are discovered after products or services have reached the customer, including returns, complaint handling, and reputational damage.

Autocratic leadership style

A leadership style in which the leader makes decisions with limited employee input, useful during crises or when urgent direction is needed.

Democratic leadership style

A leadership style where employees actively participate in decision-making, which is useful when shared commitment and input are essential.

Laissez-faire leadership style

A leadership style where employees are given substantial freedom and independence to carry out their duties, useful when staff are skilled and self-directed.

Learnership

A structured learning programme that combines theoretical learning with practical, workplace-based experience.

Performance appraisal

A formal assessment that compares an employee's actual job performance against expected performance standards.

Collective bargaining

The formal negotiation process between employers and employees or trade unions regarding wages and working conditions.

Workplace forum

An employee representative body established under labour law to consult with employers on workplace matters and engage in joint decision-making.