BUSINESS ENVIRONMENTS.
QUESTION
State any four provisions of the Basic Conditions of Employment Act (BCEA), 1997 (Act 75 of 1997
The Basic Conditions of Employment Act (BCEA), 1997 (Act 75 of 1997), establishes several key provisions to protect the rights of employees in the workplace.
One of the primary provisions is the regulation of working time, which includes setting limits on ordinary hours of work, managing overtime, and ensuring appropriate meal intervals and rest periods. The Act also provides guidelines for work on Sundays and public holidays, ensuring that employees are fairly compensated for their time.
Additionally, the BCEA outlines various types of leave that employees are entitled to. These include annual leave, sick leave, family responsibility leave, as well as maternity, paternity, and parental leave. These provisions ensure that employees can take necessary time off for personal and family-related matters without fear of losing their employment.
The Act also stipulates that employers must provide clear particulars of employment and remuneration. This includes the terms of employment, such as the nature of the work, pay details, and any other conditions related to the job. This provision ensures transparency and fairness in the employer-employee relationship.
Termination of employment is another critical area addressed by the BCEA. The Act sets out the procedures for lawful termination, including notice periods and the reasons for dismissal, thereby protecting employees from unfair dismissal practices.
Finally, the BCEA prohibits the employment of children and forced labour, ensuring that all employment practices are ethical and that vulnerable groups are protected from exploitation. These provisions underscore the Act’s role in promoting fair and humane working conditions across South Africa.
QUESTION
Elaborate on the meaning of learnerships.
Learnerships are structured educational programs defined by an agreement between a learner or trainee and an employer or a training provider. This agreement ensures that the workplace is utilized as an active learning environment where practical and theoretical training opportunities are provided. The training is designed to lead to a recognized occupational qualification, offering the learner both practical skills and formal education.
The structured learning program is typically completed during work hours and is set for a specified period of time, ensuring that the learner gains hands-on experience while also benefiting from theoretical instruction. Upon completion of the learnership, there may be opportunities for employment for a specified period, allowing the learner to apply their newly acquired skills in a real-world setting.
In addition to on-the-job training, learnerships include a formal training course that comes with learning materials. This course is complemented by practical work experience, thus making leadership a comprehensive approach to acquiring both knowledge and practical skills in a specific occupation.
Read the scenario below and answer the questions that follow.
REMI TRADERS (RT)
Remi Traders are well known for selling quality products to different outlets. They introduced online transactions for their remote customers. RT’s employees do not have the knowledge and skills to provide online transaction services
QUESTION
Name the Pestle factor that poses a challenge to RT in the scenario above.
The Pestle factor that poses a challenge to Remi Traders (RT) in the scenario above is the Technological factor. This factor is relevant because RT’s employees lack the knowledge and skills required to provide online transaction services. As a result, the introduction of online transactions for remote customers is hindered by the technological capabilities of the workforce, making technology the core challenge in this context.
QUESTION
Explain ways in which RT can deal with the challenges posed by the pestle factor above
To address the technological challenges identified at Remi Traders (RT), several strategic actions can be taken.
First, RT should conduct continuous research on the latest available technology and equipment in the market. This ongoing research will help the company stay informed about advancements and innovations that can enhance their online transaction services.
Additionally, RT should train existing employees or appoint new ones who have the skills to maintain and use new equipment. By providing employees with the necessary knowledge and skills, RT can ensure they are equipped to handle online transactions effectively, thereby overcoming the technological hurdle.
RT can also compare prices and select suitable suppliers for new equipment at reasonable prices. By doing so, the company can acquire the technology needed for online transactions without overspending, ensuring a cost-effective approach to upgrading their systems.
Business Studies Grade 12 Term 2 Revision
Finally, RT must ensure that the business is geared for online trading and e-commerce. This involves not only having the right technology in place but also adapting business processes and strategies to fully embrace the digital marketplace, allowing them to meet the demands of their remote customers effectively.
QUESTION
Describe how SETAs are funded.
SETA funding is primarily sourced from Skills Development levies that employers pay to the South African Revenue Service , which acts as a collecting agency for the government. Employers whose annual salary bill exceeds 500,000 Rands are required to contribute one percent of their annual salaries as a levy, which forms a significant part of the funding for SETAs.
From these levies, eighty percent (80%) is allocated to the various SETAs to cover their organizational expenses, while the remaining twenty percent (20%) is directed to the National Skills Fund, ensuring that broader skills development initiatives are supported.
Additionally, SETAs are funded through donations and grants received from the public, businesses, and Corporate Social Investment (CSI) programs. They may also receive surplus funds from government institutions and funds generated from rendering their services, further supporting their financial needs. These multiple funding streams enable SETAs to fulfill their role in skills development across various sectors.
QUESTION
Discuss the positive impact of the Employment Equity Act (EEA), 1998 (Act 55 of 1998) on businesses.
The Employment Equity Act (EEA) of 1998 has significantly shaped the way businesses operate in South Africa, bringing about the following positive changes that go beyond mere compliance.
1, Encourages Consultation
The EEA actively fosters a consultative environment within businesses, encouraging ongoing dialogue between employers and employees. This not only helps in creating policies that are fair and inclusive but also ensures that employees feel valued and heard. By involving employees in decision-making processes, businesses can create a more cohesive and cooperative workplace culture.
2, Promotes Equal Opportunity and Fair Treatment
One of the core tenets of the EEA is the promotion of equal opportunities and fair treatment for all employees. This means that businesses are required to eliminate any form of discrimination in their hiring and promotion practices. As a result, businesses benefit from a workforce that is selected based on merit and potential, rather than being limited by prejudiced views, leading to a more competent and motivated team.
3, Improves BEE Ratings
Compliance with the EEA can have a substantial positive impact on a business’s Broad-Based Black Economic Empowerment (BEE) ratings. Higher BEE ratings can enhance a business’s reputation and increase its chances of securing government contracts and other business opportunities. This not only provides a competitive edge but also aligns the business with national transformation goals, making it a key player in the broader economic landscape.
4, Clearly Defined Appointment Process
The EEA mandates a clearly defined and transparent appointment process, ensuring that all stakeholders understand the criteria and steps involved in hiring and promoting employees. This clarity reduces the potential for disputes and misunderstandings, leading to smoother operations and a fairer, more transparent workplace. Businesses that implement clear processes also tend to attract better talent, as prospective employees value transparency and fairness.
5, Motivates a Diverse Workforce
Diversity in the workforce is not just about meeting quotas; it’s about bringing different perspectives and experiences into the business. The EEA’s focus on creating a diverse and representative workforce can significantly enhance employee motivation and engagement. When employees see that their workplace values inclusivity and offers equal opportunities for advancement, they are more likely to feel connected to the company’s goals and motivated to contribute their best work.
6, Promotes Affirmative Action Measures
The EEA requires businesses to implement affirmative action measures, which help redress historical inequalities in the workforce. This proactive approach to creating opportunities for underrepresented groups not only fosters social justice but also enriches the business by bringing in a wider range of talents and ideas. Businesses that embrace these measures often find themselves better equipped to innovate and adapt in a rapidly changing market.
Read the scenario below and answer the questions that follow.
JAMES ENGINEERS (JE)
James Engineers are responsible for inspecting housing projects. The management of JE set specific dates for control and follow up as part of their inspection programme. They also implement corrective actions when deviations occur.
QUESTION
Quote two steps in strategy evaluation implemented by JE from the scenario above.
In the scenario involving James Engineers (JE), two key steps in strategy evaluation are clearly implemented.
First, the management of JE has set specific dates for control and follow-up as part of their inspection program. This step ensures that the progress of housing projects is monitored regularly and that any issues can be identified promptly.
Additionally, JE implements corrective actions when deviations occur, addressing any discrepancies between the planned outcomes and actual results. This proactive approach to correcting deviations ensures that the projects stay on track and meet the required standards.
QUESTION
Explain other steps in strategy evaluation.
In addition to the steps already mentioned, other critical aspects of strategy evaluation involve
1, Examining the Underlying Basis of a Business Strategy
One crucial step in strategy evaluation is to examine the underlying basis of the business strategy. This involves assessing the assumptions, conditions, and rationale that initially supported the strategy to ensure they remain relevant and accurate in the current context.
2, Looking Forward and Backwards in the Implementation Process
Another important step is to look both forward and backward into the implementation process. This means reviewing past actions to understand their alignment with the strategy and projecting future steps to anticipate and address potential challenges.
3, Comparing Expected Performance with Actual Performance
A fundamental aspect of strategy evaluation is to compare the expected performance with the actual performance. This comparison helps identify any gaps or discrepancies, providing a clear picture of how well the strategy is being executed.
4, Determining and Analyzing the Reasons for Deviations
When deviations from the expected performance are noted, it is essential to determine the reasons behind these discrepancies and analyze them thoroughly. Understanding the causes of deviations can provide insights into necessary adjustments and improvements.
5, Drawing Up a Table of Advantages and Disadvantages
Creating a table of the advantages and disadvantages of the strategy is another valuable step. This helps in evaluating the benefits versus the risks associated with the strategy, facilitating more informed decision-making.
6, Deciding on the Desired Outcome for Achieving Business Goals
Deciding on the desired outcome that will lead to the achievement of business goals is critical. This ensures that all strategic efforts are focused on achieving specific objectives that align with the overall mission of the business.
7, Considering the Impact of Strategic Implementation
Finally, it is important to consider the impact of the strategic implementation on both the internal and external environments of the business. This step ensures that the strategy is not only effective but also adaptable to changes in the business environment and sustainable in the long term.
QUESTION
Advise businesses on how they could apply the following forces of the Porter’s Five Forces model to analyse their position in the market environment:
A, Power of suppliers
When applying the power of suppliers from Porter’s Five Forces model to analyze their position in the market environment, businesses should consider the following factors.
1, Influence of High-Quality Suppliers
Suppliers that deliver high-quality products may exert significant power over a business. When suppliers provide superior products, their influence increases because their goods are essential for maintaining the company’s standards and competitiveness. Businesses should evaluate how this high quality translates into supplier power and its implications for their operations.
2, Assessment of Supplier Pricing Power
It is important for businesses to assess the power of suppliers in influencing prices. Suppliers with substantial leverage can dictate higher prices, impacting the business’s cost structure and overall profitability. Understanding how supplier pricing power affects financial performance is crucial for strategic planning.
3, Control Over Supplier Influence
The more powerful the suppliers, the less control the business will have over them. This reduced control can lead to less favorable terms and conditions, which might affect the company’s flexibility and cost management. Businesses should analyze how the level of supplier power affects their control and negotiating position.
4, Number of Available Suppliers
The number of suppliers available to a business can influence their power. If the number of suppliers is limited, each supplier may have greater leverage due to the restricted choice. Businesses should consider how a smaller supplier base impacts their bargaining power and dependency on specific suppliers.
5, Evaluation of Supplier Capabilities
Businesses should assess the type of power suppliers have in terms of the quality of their services, reliability, and their ability to make prompt deliveries. Evaluating these factors helps businesses understand the extent of supplier influence on their operations and service levels.
B, Power of competitors/Competitive rivalry
When analyzing their position in the market environment using Porter’s Five Forces model, businesses need to understand the power of competitors, or competitive rivalry. By examining the following aspects of competitive rivalry, businesses can better position themselves to navigate market pressures and maintain a competitive edge.
1, Impact of Competitors Selling Similar Products
Competitors selling the same or similar products or services may have a significant impact on the market environment of a business. When multiple businesses offer comparable products, the competitive pressure increases, potentially affecting market share, pricing strategies, and overall profitability. Businesses need to analyze how this similarity influences their market position and adjust their strategies accordingly.
2, Power of Unique Products or Services
If competitors offer unique products or services, they may wield greater power in the market. Unique offerings can differentiate competitors and attract customers, giving them a competitive edge. Businesses should assess how the uniqueness of competitor products or services affects their own market position and consider ways to innovate or differentiate their offerings.
3, Influence of Market Saturation
A business operating in a market with many competitors may find it challenging to exert significant influence. High levels of competition can reduce a business’s power and make it more difficult to command higher prices or maintain market share. Analyzing the level of competition and its effect on market control can help businesses develop strategies to enhance their competitive advantage.
4, Risk of Price Wars
Some competitors have the resources to initiate price wars, selling products at a loss to drive other competitors out of the market. This strategy can be detrimental to businesses with fewer resources, as it can lead to reduced profitability and market instability. Businesses should evaluate the risk of price wars and prepare strategies to manage or counteract such competitive threats.
5, Effect of Pricing and Marketing Strategies
Competitors employing various pricing and marketing strategies can influence the market dynamics and impact a business’s performance. Effective pricing and marketing tactics by competitors can attract customers and shift market preferences, affecting a business’s ability to compete. Businesses should analyze competitor strategies and adapt their own approaches to remain competitive
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