1.1 MACRO ENVIRONMENT: IMPACT OF RECENT LEGISLATION ON BUSINESS

The impact of recent legislation, developed in response to demands for redress and equity, on small and large business operations as well as the role of the government in the implementation of these Acts:

• Skills Development Act, 1998 (Act 97 of 1998) (e.g. skills levies and their implications for small and large businesses)

• The National Skills Development Strategy and the Human Resource Development Strategy (i.e. Sector Education and Training Authorities)

• Labour Relations Act, 1995 (Act 66 of 1995)

• Employment Equity Act, 1998 (Act 55 of 1998)

• Basic Conditions of Employment Act, 1997 (Act 75 of 1997)

• Compensation for Occupational Injuries and Diseases Amendment Act, 1997 (Act 61 of 1997)

• Black Economic Empowerment

• Broad-Based Black Economic Empowerment, 2003 (Act 53 of 2003) (amended in 2013)

• Human Rights as defined in the Constitution (issues of equality, respect and dignity including other economic, social and cultural rights)

• Inclusivity (diversity in the business such as poverty, inequality, race, gender language, age, disability and other factors)

• Environmental issues (protection of the environment and human health by the business)

• National Credit Act, 2005 (Act 34 of 2005) (NCA)

• Consumer Protection Act, 2008 (Act 68 of 28 April 2008) (CPA)

Focus on the FIVE aspects: what, why, how, is it working and recommendations in teaching ALL legislation mentioned above.

Learners should be able to: Describe/Explain/Discuss/Evaluate/Analyse the following about ALL ACTS:

• Nature

• Aims/Purpose

• Evaluate the impact on business operations including advantages/positives and disadvantages/negatives on small and large business operations.

• Suggest/Recommend ways in which businesses can comply with the Acts.

• Discuss penalties/consequences for noncompliance.

• Outline/Explain actions regarded as discriminatory by the various Acts.

• Explain the National Skills Development Strategy and the Human Resource Development Strategy (i.e. Sector Education and Training Authorities)

Describe/Explain/Discuss the following about SETAs:

• Role/Functions of SETAs

• Skills levies

• Learnerships

• Purpose/Benefits

• Funding

• The impact on business operations ALSO focus on the following regarding the BroadBased Black Economic Empowerment Act, 2003 (Act 53 of 2003) (BBBEE):

• Discuss/Analyse the implications/positives and/or negatives of the pillars on businesses.

• Recommend how businesses can implement/ manage BBBEE pillars.

• Distinguish between Black Economic

Empowerment and the BBBEE Act/Justify the introduction of the BBBEE Act in relation to BEE.

NOTE: Human rights/Inclusivity/Diversity issues are covered in Business Roles. ALSO focus on the following regarding NCA &

CPA:

• The rights of business and consumers

Knowledge of this topic should enable learners to:

Answer in short paragraphs/longer and essay type questions.

Types of questions:

Questions based on case studies/scenarios should include direct/indirect short and essay questions, covering all three cognitive levels. Additional resources:

Teachers and learners must use:

• Recent business news from the media (newspapers, radio, television and magazines) to understand the impact of recent legislation and governmental policies on business.

• Acts that impact on business, i.e. the Companies Act, 2008 (Act 71 of 2008), the Income Tax Act, 1962 (Act 58 of 1962) (amended) and the National Credit Act, 2005 (Act 34 of 2005).

• Case studies, company/business reports, real business situations.

• BBBEE Act (as amended) and the EEA Amendment Bill. Make notes using different resources and textbooks.



Devise/Formulate strategies of how a business can respond to the challenges of the macro business environment, critically evaluate such strategies and make recommendations as required.

Advanced problem-solving skills (REVISION) and skills to be used in strategy formulation, e.g. use any creative-thinking technique to devise business strategies, generate business ideas, resolve conflict and solve any business-related problems.

Use the following industry-related tools: SWOT analysis, Porter's Five Forces and PESTLE – exclude a Balanced Scorecard.

Develop strategies in response to challenges in business environments:

• Application of SWOT analysis of the business environments (including PESTLE and Porter's Five Forces)

• Formulation of strategies

• Implementing strategies

• Evaluation of strategies

Types of business strategies, e.g.

• Integration strategies:

- Forward vertical integration

- Backward vertical integration

- Horizontal integration

• Intensive strategies:

- Market penetration

- Market development

- Product development

• Diversification strategies:

- Concentric diversification

- Horizontal diversification

- Conglomerate diversification

• Defensive strategies:

- Retrenchment

- Divestiture

- Liquidation

Other strategies

The company repositions itself by replacing one or more individuals, revising a business mission, establishing or revising objectives, devising new policies, issuing stock to raise capital, adding additional salespersons and allocating resources differently, or developing new performance incentives.

Strategic evaluation Evaluate these strategies and make recommendations for their improvement.

Three activities/steps of strategy evaluation:

• Examine the underlying bases of business strategy.

• Compare expected performance (measure business performance).

• Take corrective action where necessary

Learners should be able to:

• Outline/Describe/Explain/Discuss the strategic management process.

• Apply the strategic management process to solve business-related problems.

• Identify business challenges from given case studies.

• Identify and describe/explain/discuss the different types of business strategies.

• Devise/Develop/Analyse/Formulate strategies to overcome challenges from given scenarios of businesses and make recommendations for improvement.

• Explain how/when businesses can apply each type of business strategy.

• Evaluate the effectiveness (positives/negatives) of each type of business strategy.

• Analyse case studies and apply the following industrial analysis tools to analyse the challenges of the business environment:

- SWOT analysis

- Porter's Five Forces

- PESTLE analysis

• Recommend business strategies to address challenges identified from given case studies/ scenarios.

• Outline/Explain/Recommend activities/steps in strategy evaluation. Knowledge of this topic should enable learners to: Answer in short paragraphs/longer and essay type questions.



Select a business from each sector and describe the three environments related to these sectors and the extent to which a business can control these environments.

Describe the three business environments related to the three economic sectors and give an explanation of the extent to which a business can control these environments.

Learners should be able to:

• Identify a business from each business sector (primary, secondary and tertiary).

• Identify each business environment from each sector (micro, market and macro).

• Explain the extent to which a business (operating in any of the three sectors) can control the three business environments from given scenarios and case studies.

Knowledge of this topic should enable learners to:

Answer in short paragraphs/longer and essay type questions.

Types of questions:

Questions based on case studies/scenarios should include direct/indirect short and essay questions, covering all three cognitive levels.

Additional resources: Teachers and learners must use:

Recent business news from the media (newspapers, radio, television and magazines) to understand how business environments are affected in the business sectors.



Distinguish between management and leadership styles and approaches.

• The difference between leadership and management.

• Leadership styles, e.g. democratic, autocratic, laissez faire, charismatic, transactional, bureaucratic.

• Theories of management and leadership, e.g. leaders and followers, situational leadership, transitional and transformational leadership.

• The role of personal attitude in success and leadership.

Learners should be able to:

• Define and distinguish between leadership and management.

• Discuss/Distinguish between the following leadership styles:

- Democratic

- Autocratic

- Laissez faire/Free reign

- Charismatic

- Transactional

- Bureaucratic

• Evaluate/Analyse (including advantages/ positives and/or disadvantages/negatives) of each leadership style.

• Identify the leadership styles from given case studies and scenarios and motivate answers.

• Suggest/Recommend situations in which different leadership styles can be applied.

• Discuss/Distinguish between the following theories of management and leadership:

- Leaders and followers

- Situational leadership

- Transitional management/leadership

- Transformational leadership

• Discuss the role/effect/positives/negatives of personal attitude in success and leadership.



A range of available business investment opportunities, distinguish between assurance and insurance (compulsory and non-compulsory) (as investment opportunities), and discuss the viability and relevance of all these investment opportunities to / individuals and businesses.

• The Johannesburg Securities/Stock Exchange

• Discuss types of investments, e.g. business investments, types of shares, unit trust and government retail bonds.

• Discuss returns, e.g. dividends and interest.

• The difference between compound interest and simple interest.

• Calculations (interests, etc.)

Learners should be able to:

• Describe/Explain/Discuss the following about the JSE:

- Functions

- Types of investments available on the JSE

• Investigate a range of available business investment opportunities.

• Analyse the risk factor of each type of investment opportunity.

• Discuss the types of shares, their preference, rights and limitations.

• Describe and evaluate (positives/negatives) of the following forms of investment:

- Government/RSA retail savings bonds

- Unit trusts

- Shares

- Fixed deposit

• Define/Explain the meaning of debentures, dividends, capital gain, simple interest, compound interest.

• Describe/Explain/Discuss/Evaluate types/forms of investment based on investment factors, e.g.:

- Return of investment (ROI)

- Risk

- Investment term/period

- The influence of inflation on the pay-out value/growth of investments

• Distinguish between compound interest and simple interest.

• Calculate compound and simple interest from given scenarios.

• Recommend types/forms of investment based on the calculations.



Compulsory and non-compulsory insurance Understanding life insurance and retirement annuities

Insurance of goods (compulsory and non - compulsory)

Calculation of under-insurance Unemployment Insurance Fund (UIF), Road Accident Fund (RAF) and Compensation of Occupational Injuries and Diseases Act (COIDA)

Learners should be able to:

• Distinguish between compulsory and noncompulsory insurance and give examples.

• Understand the concepts, principles and

importance/advantages of insurance for a business.

• Identify and explain insurable and non-insurable risks.

• Identify/Explain the types of life insurance and give examples.

• Discuss/Evaluate the viability and relevance of insurance to both individuals and businesses.

• Distinguish between insurance and assurance and give examples.

• Explain over-insurance, under-insurance, average clause and reinstatement, using examples.

• Make calculations in the case of underinsurance.

• Explain the types of benefits paid out by the UIF.

• Know the rights of workers registered for UIF.

• Explain the provisions of the RAF.

• Know the rights of road users in terms of the RAF.

• Explain the main purpose of COIDA as a type of compulsory insurance.

• Keep abreast of the changes in legislation from time to time, e.g. the RAF is currently changing to the RABS (Road Accident Beneficiary Scheme).



Determining the extent to which a particular form of ownership can contribute to the success or failure of a business.

Taxation, capacity, management, capital, division of profits and legislation.

RECAP (Examinable): Characteristics, advantages, disadvantages and comparison of forms of ownership i.e. sole trader, partnership, close corporation, cooperatives, profit companies and non-profit companies (focus on issues of capacity, taxation, management, capital, division of profits and legislation) and their impact on the success or failure of a business.

Forms of ownership (all forms of ownership) and their impact on the success of a business. Learners must understand the characteristics, advantages and disadvantages to be able to analyse the impact on the success or failure of business in terms of the six criteria listed above.

Learners should be able to:

• Evaluate the contribution of the forms of ownership to the success/failure of the business in terms of the following criteria:

- Capacity: Refers to the ability/potential of management to start and operate a business as planned.

- Tax implications: The tax requirements of each form of ownership determine the impact of taxation on business success/ failure.

- Management: Ownership impacts on management functions which determine the success/failure of the business.

- Capital: Refers to the ability to obtain capital from various sources (e.g. own/borrowed capital). The amount of capital that can be

sourced will also impact on business success/failure.

- Division of profits: Refers to how profit is divided between owner(s)/shareholders/ investors.

- Legislation/Legal requirements for establishment/starting a business impact on the establishment costs and time before a business can legally do business.

• Evaluate the impact (positives/advantages and/or negatives/disadvantages) of the different forms of ownership on business success/failure.



Accurate and concise verbal and non-verbal presentation of a variety of business-related information (including graphs), respond professionally to questions and feedback, and amend information as necessary.

• RECAP (Examinable): Presentation of business information in verbal and non-verbal format (the use of support materials).

• Describe the criteria for a logical and effective presentation of information, e.g. know your audience, put important information first, use tables, graphs, charts or diagrams.

• Process and style of presentation using visual aids, e.g. position to allow clear vision, immediate display and change of transparencies/ slides, PowerPoint slides, using a laser pointer to focus attention.

• Responding in a non-aggressive and professional manner to questions about work and presentations, e.g. answer all questions, make notes, do not argue, apologise for errors.

• Handling of feedback, amend plans and documents accordingly and integrate these into future plans and activities.

• Identify areas for improvement.

Learners should develop the following skills:

• Outline/Describe/Explain/Discuss the criteria for logical and effective presentations.

• Outline/Explain factors that must be considered when preparing for a presentation.

• Outline/Explain factors that must be considered by the presenter while presenting, e.g. maintain eye contact/use visual aids effectively/move/do not speak fast/use pauses effectively, etc.

• Give examples of non-verbal presentations, e.g. written reports, scenarios, types of graphs (e.g. line, pie, bar charts) as well as other types of non-verbal information such as pictures and photographs.

• Discuss/Explain how to design a multimedia presentation to include visual aids, e.g. start with the text, select the background, choose relevant images/create graphs, etc.

• Explain/Evaluate the effectiveness/advantages/ disadvantages of visual aids.

• Explain how to respond to questions about work and presentations/handle feedback after a presentation in a non-aggressive and professional manner.

• Discuss/Explain how to identify areas for improvement of the next/a future presentation.

• Motivate/Make recommendations for future improvements based on feedback from presentations.



How professional, responsible, ethical and effective business practice should be conducted in changing and challenging the business environment.

• The meaning of ethical behaviour and business practice.

• Ethical and unethical business practice with practical examples, e.g. fair and unfair advertisement.

• Professional and unprofessional business practices with practical examples, e.g. good use of work time and abusing working time.

• The relationship between ethical and professional behaviour. Ways in which professional, responsible, ethical and effective business practice should be conducted, e.g.

• Not starting a venture at the expense of someone else

• Payment of fair wages

• Regular payment of tax, etc

Reflection on the business environment and identify issues that could challenge ethical and professional behaviour (e.g. taxation, sexual harassment, pricing of goods in rural areas, unfair advertising, unauthorised use of funds, abusing work time, etc.) and ways/strategies that could be used to address these issues.

• Define ethical behaviour and business practice.

• Give practical examples of ethical and unethical business practice, e.g. using fair vs. unfair advertising techniques, etc.

• Give practical examples of professional and unprofessional business practices, e.g. good use of work time and abuse of work time, etc.

• Explain how businesses can apply King Code principles of transparency, accountability and responsibility for good corporate governance to improve ethical and professional business practices.

• Suggest/Recommend ways in which professional, responsible, ethical and effective business practice should be conducted, e.g. payment of fair wages, providing quality goods and services, not starting a business venture at someone else's expense, etc.

• Evaluate situations and reflect on issues/ situations in terms of ethical/professional behaviour in given scenarios/case studies that

pose challenges in the business environments:

- Ethical and professional behaviour in the workplace

- Sexual harassment

- Unauthorised use of workplace funds and resources

- Unfair advertising – definition and examples

- Pricing of goods in rural areas

- Taxation/Tax evasion

- Abuse of work time

• Identify the above-mentioned unethical/ unprofessional behaviour from given case studies/business scenarios.

• Recommend improvements for the abovementioned unethical business behaviour/ practices.



Apply creative thinking to respond to challenges in dynamic and complex business contexts:

• Acquire advanced problem-solving skills.

• Apply creative thinking to solve complex business problems in case studies and given scenarios. RECAP (Examinable) (content covered in Grade 11).

Learners should be able to:

• Distinguish between problem-solving and decision-making.

• Name/Outline/Apply the steps in problem-solving to scenarios/case studies.

• Identify and address challenges from given scenarios by applying advanced problem-solving techniques.

• Apply creative thinking skills to solve complex business problems.

• Explain the benefits/advantages of creative thinking in the workplace.

• Evaluate the impact (positives/negatives) of creative thinking/problem-solving techniques, e.g.

- Delphi technique

- Force-field analysis

- Brainstorming

- Mind mapping

- Nominal group technique

- SCAMPER

- Forced combination

- Empty chair

• Explain how businesses can apply the above creative-thinking/problem-solving techniques.

• Suggest/Recommend ways for businesses to create an environment that promotes creative thinking.



Define the concept of social responsibility:

• The implications of social responsibility for both business and communities. Contribute time and effort meaningfully to advancing the well-being of others in a business context. Ways in which a business project can contribute towards the community. Corporate Social Responsibility (CSR)

• Definition of CSR

• Nature and process of corporate social responsibility

• Benefits to business and community

• Problems/Challenges: business and community

• Components of corporate social responsibility, e.g. environment, ethical corporate social investment, health and safety, etc.

Corporate Social Investment (CSI)

• Definition of CSI

• Nature of corporate social investment

• Corporate social investment projects, including

human rights issues

• Responsible business practice

• Challenges to the business: A challenge to meet the long-term needs of the society within which they operate.

• RECAP the relevant Acts. Legislative requirements, e.g. Employment Equity Act, Skills Development Act (e.g. skills levies and their implications for small and large business), BEE and compliance.

• The National Skills Development Strategy (i.e. Sector Education and Training Authority)

• Define social responsibility.

• Explain its impact on businesses and communities.

• Link/Explain the relationship between social responsibility and the triple bottom line.

• Suggest ways in which a business project can contribute towards the community, e.g. charitable contributions to NGOs, involvement in community education, employment, employee volunteer programmes, etc.

• Identify and discuss socio-economic issues that challenge social responsibility, e.g. HIV/Aids, unemployment, poverty, human rights aspects etc.

• Recommend ways in which businesses can contribute time and efforts in advancing the wellbeing of others in a business context, e.g.:

- Improve the general quality of life (e.g. paying fair wages, develop skills, etc.)

- Refrain from engaging in harmful practices

(e.g. employing children, selling illegal substances, etc.)

- Make ethically correct business decisions (e.g. not to engage in unfair advertising, etc.)

- Provide support to employees (e.g. transport, nutritional programme, housing, time off to get involved in community projects, etc.) • Analyse and explain the following regarding CSR:

- Define

- Describe the nature of CSR.

- Examine/Analyse/Critically evaluate/Assess its role/benefits/problems/challenges in the business world and in different communities.

- Identify and name/outline the components, e.g. environment, ethical corporate social investment, health and safety, etc.

• Analyse and explain the following regarding CSI:

- Define

- Describe the nature of CSI.

- CSI focus areas, e.g. community, rural development, employees, environment.

- List practical examples of projects.

- Evaluate/Discuss the benefits/problems/ challenges for both business and communities.

- Explain the implication of the following legislative requirements on CSI and CSR programmes:

Employment Equity Act (EEA)

Skills Development Act (SDA)

BEE

The National Skills Development Strategy (i.e. Sector Education and Training Authority)



The extent to which a business venture addresses issues such as human rights, inclusivity, and environmental issues. Assess a business venture against criteria to measure human rights, inclusivity and environmental issues. Can do this through informal surveys, interviews, etc.

• Human rights issues as defined in the Constitution of the Republic of South Africa

• Diversity in the business – issues of diversity such as poverty, inequality, race, gender, language, age, disability and other factors

• Environmental protection and human health

• Issues of equality, respect and dignity

• Other economic, social and cultural issues

• Explain human rights, inclusivity and environmental issues.

• Analyse and evaluate the extent to which a business venture addresses these issues.

• Assess a business venture in terms of human rights, inclusivity and environmental issues, using informal surveys, interviews, etc.

• Recommend ways in which businesses can address human rights/inclusivity/environmental issues

• Suggest how businesses may promote/address human/social/economic/cultural rights in a workplace.

• Explain the meaning of diversity in the business.

• Recommend ways in which businesses may embrace/deal with issues of diversity in the workplace, e.g. poverty, inequality, race, gender, language, age, disability and other factors.

• Discuss the benefits/value of diversity in the workplace.

• Suggest strategies businesses may use to protect the environment and human health.

• Explain the responsibilities of employers and workers in protecting the workplace environment and promoting human health and safety.

• Discuss the roles of the health and safety representatives in protecting the workplace environment, e.g. checking on the effectiveness of health and safety measures/identifying potential dangers in the work environment/ investigating workers' complaints, etc.

• Explain the meaning of equality, respect and dignity and its implications on businesses.

• Suggest/Recommend strategies businesses may use to promote social/cultural rights in the workplace.



Collaboration with others to contribute towards the achievement of specific objectives.

• Criteria for successful team performance, stages of team development, team dynamics and theories: RECAP (Examinable)

• Self-assessment and team performance assessment according to team criteria, e.g. interpersonal attitudes and behaviour, shared values, communication, etc.

• How to effectively perform a specific role within a team.

Problem-solving and management of problems that arise from working with others (include steps to resolve conflict). Correct procedures to deal with grievances. Different ways of dealing with difficult people (personalities)

TEAM WORK

• Recommend how to collaborate/work with others from given scenarios/case studies.

• Assess self and team according to team criteria/characteristics for successful teams, e.g. interpersonal attitudes and behaviours, shared values, communication, etc.

• Identify and explain the stages of team development, e.g.

- Forming

- Storming

- Norming

- Performing

• Describe/Explain/Discuss the importance of team dynamics theories in understanding team performance, e.g. allocating tasks according to the roles of team members.

• Explain/Describe the nature of each team dynamic theory.

CONFLICT RESOLUTION

• Identify and discuss causes of conflict from given scenarios/case studies.

• Apply conflict resolution techniques (steps and procedures).

• Discuss the correct procedures to deal with grievances from given scenarios and case studies.

• Suggest different ways/strategies of dealing with difficult people (personalities).



RECAP (Examinable): The relevant legislations and the following activities of the human resources function:

• Recruitment

• Selection

• Employment contracts

• Induction

• Placement

• Salary administration

• Employee benefits

• Skills development

• Analysis of human resource activities, e.g. recruitment and selection, induction, salaries and other benefits

• Procedures related to recruitment, selection and interviewing Discuss:

• Labour Relations Act, 1995 (Act 66 of 1995), Basic Conditions of Employment Act, 1997 (Act 75 of 1997), Employment Equity Act, 1998 (Act 55 of 1998), Compensation for Occupational Injuries and Diseases Act, 1993 (Act 130 of 1993) RECAP (Examinable)

• Legalities of employment contracts

• Procedures of screening and placement

• Interviewing, selection and induction

• Salary determination (piecemeal and time related), including personal tax, linked to basic conditions of employment

• Employee benefits: pension, medical, other RECAP (Examinable)

• Skills Development Act, 1998 (Act 97 of 1998) and link with the purposes of SETAs, learnerships, skills programmes, qualifications, National Qualifications Framework, SAQA, etc.

• Discuss and apply human resource activities.

• Distinguish between job description and job specification as components of a job analysis.

• Discuss/Analyse the following human resource activities:

- Recruitment, e.g. types/methods/ advantages/disadvantages

- Selection procedure/steps:

Interviews (purpose, role of the interviewer/interviewee)

Induction, e.g. purpose/benefits/ advantages and aspects that should be included in an induction programme

Placement procedure

- The importance of training/skills development in HRM

- Retrenchment

- Employment contracts, e.g. legalities, content/details and termination of the contract

- Salary determination, e.g. piecemeal and time-related and personal tax (link to BCEA)

• Discuss employee benefits on businesses: Fringe benefits:

- Pension

- Medical aid

- Provident fund

- Allowances

Compulsory benefits:

- Benefits required by law, e.g. UIF, etc.

- Any other relevant benefits

• Evaluate advantages/positives and/or disadvantages/negatives of fringe benefits to business.

• Discuss the implication of Acts like the LRA/ BCEA/EEA/SDA on human resources



Discuss how the quality of performance within the business functions can influence the success or failure of a business.

• Define the concept quality (definition). RECAP (Examinable) content from Grade 10.

• The relation between quality and the various business functions. RECAP (Examinable) content from Grade 10, e.g. how quality of performance can contribute to success or failure of each business function.

• The impact of quality on different business structures, e.g. sole traders vs. large businesses.

Discuss the elements of management (TQM):

• Continuous skills development

• Total client satisfaction

• Continuous improvements to processes and systems, etc.

• Define the following:

- Quality

- Quality control

- Quality assurance

- Quality management

- Quality performance

- Quality management systems

• Explain the advantages/positives/benefits of a good quality management system.

• Critically discuss how the quality of performance can contribute to success or failure of each business function.

• Outline quality indicators for each business function.

• Discuss the following elements of total quality management (TQM):

Continuous skills development/Education and training

Team work

Total client/customer satisfaction

Top management involvement/Commitment

Involvement of all employees/People-based management

Adequate financing and capacity

Continuous improvement to processes and systems (including the application of the 'PDCA' model/cycle)

Planning

Monitoring and evaluation of quality processes

Management by facts

• Apply the elements of TQM and analyse the impact of these elements on small and large businesses.

• Explain how TQM can impact on the reduction of the cost of quality, etc.

• Compare the impact of the TQM system on small (sole traders) and large (big companies) enterprises.

• Discuss the impact of TQM if poorly implemented by businesses.

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