GRD 11 - Nov - 2022

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Grade 11 Business Studies November 2022

In pursuit of excellence

BUSINESS STUDIES
NOVEMBER EXAMINATIONS

NOVEMBER 2022 TIME: 3 HOURS


GRADE 11 MARKS: 300
Name of learner:

PLEASE READ THE FOLLOWING INSTRUCTIONS CAREFULLY

1. This question paper consists of 39 pages, an answer sheet of 4 pages. Please check
that your question paper is complete.
2. Read the questions carefully.
3. All questions are COMPULSORY.
4. Answer the questions for SECTION A on the answer-sheet provided and hand in with
your paper. SECTION B and C answer questions on the allocated spaces on the
question paper and hand this in at the end of the examination. Remember to write your
name in the space provided on the question paper.
5. Demonstrate insight, where applicable, when answering the questions. You may refer to
any food retailers (including food courts and retail outlets) that you have studied this
year.
6. You are advised to pay particular attention to the use of language and the allocation of
marks.
7. It is in your own interest to write legibly and to present your work neatly.
8. If you run out of space for a question, ask for folio paper and include it at the end of the
paper. Please clearly indicate the question number of your answer should you use this
extra space.

Allocation of marks

Q1 Q2 Q3 Q4 Q5 Q6 Total

50 50 50 50 50 50 300

SECTION A

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Grade 11 Business Studies November 2022

QUESTION 1

Indicate the most correct answer by writing the letter of the alternative you have
chosen in the space provided on the ANSWER SHEET market SECTION A.

1.1.1 ... is a systematic method of obtaining all the relevant information about the tasks
related to a specific job.

A Job analysis
B Subrogation
C Retention
D Recruitment

1.2 The management of Checkers uses Total assets : Total liabilities as a measure
of ... when doing a quality of performance check.

A solvency
B profitability
C liquidity
D gearing

1.3 The curriculum content prescribed by the Health and Safety Act to the Bakery
departments in all Checkers outlets represents a challenge from the ... environment.

A micro
B external
C internal
D international

1.4 Wellington SPAR has ... control over the implications of the Labour Relations Act as it
relates to staff employment contracts.

A full
B no
C limited
D external

1.5 An unethical practice could be ...

A P’nP allowing providing financial assistance to underprivileged customers.


B employing unskilled workers.
C requiring new employees to undergo an HIV/AIDS test without appropriate
counselling.
D introducing a second-hand clothing section at P’nP Clothing stores.

1.6 A successful business strategy for SPAR South Africa would be to ...

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A upgrade the training programs of senior management.


B diversify their investment portfolio to ensure they deliver the best ROI for all their
franchise owners .
C re-evaluate the performance appraisal procedures of the cleaning staff.
D ALL of the above

1.7 A document that describes expected behaviour for employees would be a/an ...

A memorandum of association.
B prospectus.
C endowment policy.
D code of conduct.

1.8 A code of ethical conduct for Shoprite franchisors will …

A describe the organisation's customers, major products/service, differentiating


qualities as well as environmental concerns.
B invite members of the public to buy shares and/or debentures in the franchise.
C explain the values and beliefs on which the franchise has based its policies.
D determine how many people are required to successfully run a Human Resource
Department.

1.9 A situation where an employee at OK FOODS disobeys an order from senior


management refers to …

A misconduct.
B aggravating circumstances.
C constructive dismissal.
D mediation.

1.10 A Woolworths Foods outlet is damaged by hail. According to the insurance contract a
standard amount of R10 000 need to be paid aon the claim that is not covered by the
policy. This amount is referred to as the …

A proximate cause.
B average clause.
C subrogation amount.
D excess.

1.11 All factory workshops at Woolworths South Africa must have wheelchair accessible
ramps which facilitates movement in the workplace. This shows management's

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willingness to consider … in the workplace.

A inclusivity
B Black Economic Empowerment
C Affirmative Action
D green – environmental issues

1.12 Which one of the following would be part of an internal environmental scan
completed by a manager at Checkers?

A Loyalty of the Forage and Feast brand by Checkers consumers.


B Cost advantages in resizing the human resources department.
C Legislation regarding patent rights.
D Removal of international barriers for the export of frozen chickens.

1.13 A compulsory form of insurance where the premiums are funded by means of a
levy on fuel sold to be used for the 60-Sixty delivery drivers and owners of vehicles
refers to the …

A Road Accident Fund.


B Compensation for Occupational Injuries and Diseases Act.
C Unemployment Insurance Fund.
D Occupational Health and Safety Act.

1.14 This will have a negative effect on the performance of Toyota South Africa:

A high sales turnover; high staff turnover


B low labour costs; low productivity
C low labour costs, low overhead costs
D high overhead costs; low productivity

1.15 Management at the SPAR’s head office subscribe to the 'principle based theory'
towards ethical decision-making. This implies that …

A SPAR uses different stories to complement each other in order to lead to an


understanding between right and wrong.
B management uses predetermined rules to determine whether the action is
right or wrong.
C it is the consequence of an action that determines whether the action is right
or wrong.
D the character of a person is judged, rather than his/ her actions.

1.16 When determining how many people are required for the amount of work
that must be done, the human capital manager at P’nP performs a …

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A work-load analysis.
B corporate social investment initiative.
C break-even calculation.
D None of the above

1.17 Which policy in marketing refers to the operating systems and procedures
linked to the service experience of the customer?

A promotion
B product
C process
D people

1.18 The management task referring to the transfer of authority to sub-ordinates


so that daily tasks can be accomplished, is …

A control.
B delegation.
C organisation.
D planning.

1.19 An advantage of Woolworths having a strong brand could be that …

A management is able receive above-inflation salary increases.


B environmental scanning is neglected.
C performance appraisals are limited to top level management.
D the brand inspires customer loyalty leading to higher sales

1.20 Which one of the following statements is TRUE with regards to insurance?

A Fidelity insurance covers the loss of cash being transported to the bank.
B Through liability insurance, a customer may claim damages for injuries sustained due to
the negligence of the franchisee.
C The excess amount is the monthly payment to ensure compensation by the insurance
company.
D The iron safe clause ensures that employees have the necessary health and safety
training in a food retail franchise.

1.21 A director who resigns from his/her position in the Pick ‘n Pay company because of
insider trading is displaying …

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Grade 11 Business Studies November 2022

A synergy.
B accountability.
C indemnification.
D vertical integration.

1.22 The appearance of SPAR Express staff, the signage used on the retail premises and
the website of the business on the internet forms part of the … policy of marketing.

A product
B promotion
C distribution
D physical evidence

1.23 A challenge that a Shoprite retailer could face from the micro-environment could be …

A an increase in the number of food retailers stations in the Western Cape.


B a change in the VAT rate.
C dissatisfaction by cashiers with the way performance appraisals are
done.
D genetical modified organisms replacing fresh and natural produced vegetables.

1.24 A shareholder that invests in P’nP shares …

A will receive interest as a return on the investment.


B pays a capital gains tax when shares are bought.
C could have capital growth and good dividends over the long-term.
D will earn a high return on the investment as they are risk free in the shortterm.

1.25 Top level management at SPAR is responsible for …

A the long-term strategic business plan, including the vision, mission,


objectives and strategies for the overall business.
B tactical plans, which involve the acquisition of resources needed by the
departments they control.
C planning work schedules and programs daily.
D None of the above.

1.26 Which marketing policy describes the process that a manufacturer uses to get the
product to the consumer?

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Grade 11 Business Studies November 2022

A Product
B Promotion
C Distribution
D Price

1.27 When Mr Price Ltd borrows money and pays interest, it is known as …

A equity capital.
B debentures.
C off-shore investments.
D endowments.

1.28 When the rights of a life insurance policy are transferred to a bank as security for a
loan, this is referred to as …

A diversification.
B a cession.
C indemnification.
D over insurance.

1.30 The unauthorised and illegal duplication of products protected by patents refers
to …

A piracy.
B insider trading.
C bootlegging.
D price discrimination.

1.31 A Woolworths manager who understands that suppliers may originate from a range of
countries are showing a … competency.

A global awareness
B talent development
C teamwork
D All of the above

1.32 When Woolworths’ management team compares the desired performance with the
actual performance of a particular line of clothing they are …

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A promoting corporate social investment.


B measuring whether their sales targets were realistic.
C diversifying their investment portfolio.
D developing black economic empowerment.

1.33 Which one of the following would NOT be part of a marketing plan?

A Brainstorming strategy to effectively deal with customer complaints


B Picketing over a wage dispute
C Developing recyclable packaging for product
D Expanding the franchise network of Woolworths

1.34 Woolworths is committed to the promotion of black people, women and the disabled.
This shows that Woolworths is implementing the requirements of the … Act.

A Basic Conditions of Employment


B Occupation Health and Safety
C Employment Equity
D Compensation for Occupational Injuries and Diseases

1.35 The return on investment in a retirement annuity is dependent on the …

A level of corporate social investment in the economy.


B size of the contributions and how long the contributions were made.
C rates offered on mortgage bonds.
D None of the above.

1.36 It is unethical for a Macro franchise owner to …

A personally use funds that have been set aside for corporate social initiatives.
B have a promotion where customers can buy one product and get another
similar product free.
C deduct legal expenses before calculating taxable income.
D give an additional bonus to the employee of the month.

1.37 The beliefs and values in Makro that define the way business is conducted is known
as the …

A specialist culture.
B generalist culture.
C organisational culture.
D individual culture.

1.38 The monitoring of best business practice includes economic, environmental and
social issues. This is largely due to …

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Grade 11 Business Studies November 2022

A a SWOT analysis.
B general management.
C problem-solving techniques.
D triple bottom line reporting.

1.39 An example of an external stakeholder is …

A resources.
B strategy.
C supplier.
D organisational structure

1.40 Which one of the following factors is NOT part of the PESTLE analysis?

A Employee motivation
B Exchange rates
C Labour Relations Act
D Environmental awareness

1.41 A loss resulting from … is usually an example of an insurable risk.

A a new technological invention


B inflation
C storm damage to the franchise
D insolvency of a franchise manager

1.42 A return offered to an investor who has invested funds in a fixed deposit
would be ...

A dividends.
B interest.
C shares.
D depreciation.

1.43 Customers possess a high level of power when …

A the business has many substitute products in the market.


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Grade 11 Business Studies November 2022

B the business has many large clients.


C there are a few suppliers in the market.
D the government controls access to the market.

1.44 Marketers at a Pick n Pay store would most likely offer product discounts
when …

A the product has little competition in its market from other products.
B development and production costs for the product are high.
C a market differentiation strategy is used to market the product.
D the business has high inventories of the product.

1.45 … is when an employee exposes unethical behaviour of his manager.

A Insider trading
B Whistle-blowing
C Delegation
D Bootlegging

1.46 If someone from SPAR is part of a recruitment and selection panel and they fail to
disclose that one of the applicants is a family member, it would be considered as …

A piracy.
B insider trading.
C a conflict of interest.
D staff deployment.

1.47 SPAR will use the … ratio when it ensures that total assets exceed total liabilities.

A liquidity
B current
C gearing
D solvency

1.48 The marketing communication mix of Shoprite consists of …

A product, distribution and pricing policies.


B advertising, personal sales, sales promotion and publicity.
C introduction, growth, maturity and decline phases.
D manufacturer, wholesaler, intermediary and retailer

1.49 Which one of the following statements is true?

A Ethics in advertising is monitored by the CSIR.

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B Publicity is concerned with the image of Shoprite, whereas advertising is


concerned with increasing Shoprite’s sales volume.
C The purpose of public relations is to increase sales.
D Marketing is the same as advertising.

1.50 When the management of Famous Brands would like to analyse the impact of inflation
on the price of Debonairs pizzas, they would most probably use … to analyse the
challenge.

A PESTLE
B Porter's Five Forces model
C Resource-based Approach
D All of the above

SECTION A

TOTAL 50

SECTION B

QUESTION 2

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2. Ethics and professionalism at the Wellington SPAR outlet garage

2.1.1 Evaluate the importance of having a code of ethics for a food retailer such as SPAR.
(5)

2.2.1 Give an example of unethical behaviour by a SPAR employee. (1)

2.2.2 Suggest and explain TWO different ways in which SPAR's management could deal
with the unethical behaviour mentioned in question 4.2.1. (4)

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2.3 John is a junior manager and in the past month, he arrived late 4 times for his
shift. He received a warning that if he arrived late again that he will be dismissed.
On Tuesday he arrived late due to his alarm not working due to load shedding. He
received an envelope with his letter of dismissal and his severance package.
SPAR implements a strict policy on arriving late for shifts.

2.3.1 Use the Narrative Theory of ethics to prove that John’s action can be seen as ethical.

(3)

2.3.2 Use the Consequence Theory to illustrate how this will impact on the performance of
SPAR. (4)

2.3.3 Use THREE examples to illustrate the implications of unethical business practice on a
company like SPAR. (6)

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2.4 9 October 2021

Food safety is critically important to Woolworths and we take all issues regarding the production
of our food extremely seriously.

Following routine quality tests, Woolworths is recalling Woolworths branded 100% APPLE JUICE
200 ml cartons (single boxes and six packs) with the best before date of 23, 28 and 29 March
2022. It was identified that the apple juice in these products contains levels of patulin above the
regulatory limits. Patulin is a naturally occurring mycotoxin produced by mould and is commonly
associated with apples.

Customers who have purchased the product, should return the product to their local store for a
full refund. For more information please contact our customer service centre on 0860 022 002 or
visit woolworths.co.za Woolworths and our suppliers proactively manage and prevent microbial
contamination of food and have done so for many years. We have very strict protocols in place as
part of our standard food safety management process. To verify the safety of our food products,
we implement additional monitoring where we independently have our food products tested
randomly. (https://www.woolworths.co.za/corporate/cmp212878)

2.4.1 Briefly explain any FOUR elements for the Public Relations campaign of
WOOLWORTHS SA to be successful. (4x2=8)

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2.4.2 Identify any THREE external stakeholders who might be influenced by the recall of the
Woolworths Apple Juice.
(3x2=6)

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Stakeholder How the stakeholder might be affected

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2.4.3 Identify the medium Woolworths have used to communicate with the shareholders. (1)

a) List any FOUR elements that could be included in the PRODUCT policy of
2.5 Checkers retail outlets. (4)

- _________________________________________

- _________________________________________

- _________________________________________
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- _________________________________________
Grade 11 Business Studies November 2022

TOTAL 50
QUESTION 3

3.1 Discuss how the Head Office of Pick ‘n Pay South African can improve the quality of the
overall performance of the company using the following criteria: (3x2=6)

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Business
Culture

Unique
products

3.2 Porter’s SIX Forces Analysis

3.2.1 Explain the purpose of the Porter’s Forces model. (2)

3.2.2 List and explain any TWO forces of the Porters model. (4)

3.2.3 Describe any THREE factors that result in the buyers of Pick ‘n Pay to have strong bargaining
powers? (3x2=6)

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3.3 Read the following extract and answer the questions to follow:

Several factors have recently culminated in a perfect storm of threats that South African
retailers have to defend against, says Howard Barratt, principal consultant at Retail
Directions, a retail management platform with Cotton On as a principal client.

War, extreme weather, power cuts, looting, and connectivity issues, are core issues facing the
industry in South Africa currently, while belt-tightening by consumers amid soaring inflation is
also a major concern

(Source: https://businesstech.co.za/news/finance/594056/online-shopping-shootout-woolworths-vs-
pick-n-pay-vs-checkers/7 Jun 2022)

Over the past three years South African retailers have faced severe challenges in an
everchanging retail environment.

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3.3. Write your answers in the spaces provided below to highlight some of the possible
challenges the various South African retailers could encounter.

3.3.1 Challenge: Russia’s invasion of Ukraine.


A. Identify the business environment to which the challenge belongs. (1)
______________________________________________________________________

B. Explain the effect of the challenge on the South African retailers. (2)
___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

_______________________________________________________

C. Devise a strategy on how retailers could respond to the challenge. (2)


___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

__________________________________________________________________________

3.3.2 Challenge: SPAR launches the SPAR2U delivery service.


A. Identify the business environment to which the challenge belongs. (1)

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Grade 11 Business Studies November 2022

______________________________________________________________________

B. Explain the effect of the challenge on SPAR retailers. (2)


___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

C. Devise a strategy on how the other retailers could respond to the challenge. (2)
___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

__________________________________________________________________________

3.3.3 Challenge: High turnover of staff in retail.


A. Identify the business environment to which the challenge belongs. (1)
______________________________________________________________________
B. Explain the effect of the challenge on the retailers. (2)
___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

_______________________________________________________

C. Devise a strategy on how retailers could respond to the challenge. (2)

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___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

_______________________________________________________

3.3.4 Challenge: The frequency of load shedding.


A. Identify the business environment to which the challenge belongs. (1)
______________________________________________________________________
B. Explain the effect of the challenge on the retailers. (2)
___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

C. Devise a strategy on how retailers could respond to the challenge. (2)


___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

3.4 Explain how the following PESTLE challenges impact the Micro - and Market
environment of food retailers such like SPAR. (6x2=12)
Challenge Impact on the Micro- Impact on the Market Opportunity created by

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environment environment SPAR from the


PESTLE challenge.

On top of raising
the drinking age
to 21, SAAPA
has called for the
implementation
of the World
Health
Organisation’s
(WHO)
interventions:
The enactment
and enforcement
of restrictions on
the physical
availability of
alcohol in sales
outlets (via
reduced hours of
sale).

(2) (2) (2)

Year-on-year, the
average cost of
the Household
Food Basket
increased by
R611. 44
(14.8%), from
R4,137 in July
2021. The
massive 14.8%
hike is far above
headline inflation
(CPI) recorded in
July at 7.4% and
far outstrips
reported food
inflation at 8.6%
(2) (2) (2)

TOTAL 50

QUESTION 4

4.1 Fill in the missing elements from the table:

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Characteristics of companies:

Characteristic Explanation of the characteristic

Formation
procedure

(2)

Continuity of
existence

(2)

Tax
implications

(2)

Management
and control

(2)

4.2 Write out the name of the company that end with the following letters. (4)
Abbreviation Type of company

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(PTY) LTD

LTD.

INC.

SOC LTD.

4.3 Study the following graph and then answer the questions that follow:

4.3.1 Describe the purpose of an OK Foods franchisor drawing up this graph. (4)

4.3.2 Identify each of the labels on the graph: (4)

A = _________________________________________________________

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B = _________________________________________________________

C = _________________________________________________________

D = _________________________________________________________

4.3.3 Describe how the "safety margin" fits into the analysis of the graph. (2)

4.4 Explain why Shell would take out insurance to cover themselves against the following
insurable risks at a Shell petrol station: (7)
Fidelity
insurance

(2)

Business
interruption
insurance

(2)

Public liability
Insurance

(3)

4.5 Study the financial statements of Geneva Superette for the year ended 2019.

Income statement / Statement of Comprehensive Income on February 2019

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Gross Profit 453 200


Income from services rendered 89 400
Other operating income 34000
Gross operating income 576 600
Operating expenses (293 010)
Operating profit 150 730
Profit before interest expense 283 590
Interest expense (25 480)
Net profit before tax 258 110
Tax (28%) 72 270.8
Net profit for the year 185 839.2

Balance Sheet / Statement of financial position on 28 February 2019

Assets
Non-Current Assets 162 899
Tangible assets 162 899
Current Assets 134 500
Inventories 88 500
Trade and other receivables 13 300
Cash and equivalents NEDBANK 32 700
TOTAL ASSETS 297 399
Equity and Liabilities
Capital and reserves 162 900
Non-Current Liabilities 95 000
Long-term Loan 95 000
Current Liabilities 24 250
Trade and other payables 24 250
Bank overdraft ABSA 15 249
TOTAL EQUITY and LIABILITIES 297 399

4.5.1 Use the following formulas to calculate the various financial ratios and comment on the
ratio’s where possible.
Current Capital Ratio:

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Grade 11 Business Studies November 2022

(5)
Comment:

(2)
Solvency Ratio: Total Assets / Total Liabilities

(3)
Comment:

(2)

4.6 Study the following graph relating to Pick ‘n Pay Holdings to answer the questions that
follows:

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4.6.1 Use any THREE criteria that you as an investor need to consider when choosing a
company to invest in: (3x3=9)
-

(3)

(3)

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(3)

Total 50
SECTION B

TOTAL 150

QUESTION 8

SOURCE A

SOURCE B

Discover the new Crafted Collection range, made with the finest local and
internationally sourced ingredients. We’ll show you how to go from every
day, to gourmet. Build your Crafted Collection range today! Available in-
store, on the website and Pick n Pay asap! app, for same-day delivery.

SOURCE C

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Wagyu is a premium Japanese breed of cattle. What makes it so special is it’s marbling – the
small white flecks of fat between the muscle tissue that, when cooked, melts into the meat like
butter. The result? A rich tender and absolutely delicious steak with a velvety finish.

Required:

You have been awarded the contract to launch the Pick ‘n Pay Gourmet Crafted Range in
South Africa.
You need to develop a comprehensive marketing strategy. Your marketing strategy should
focus on the use of the FOUR policies in marketing to ensure that through your campaign, Pick
‘n Pay can build a strong brand identity and achieve a competitive advantage in the high-
income retail section in South Africa.

The following aspects will be considered when marks are


allocated in this paper:
 Format:
‒ The CORRECT format for each question must be used, i.e. Business report.
‒ Where applicable, include an introduction and conclusion.
‒ Use headings and sub-headings where appropriate.
 Terminology: Correct business terminology should be used.
 Content: Must be sufficient to cover all aspects of the question.
 Substantiation: Justification for statements made.
 Application to case study/context.
 Creative problem solving rather than just giving theoretical facts.
 Synthesis and sequencing

TOTAL 50

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INTRODUCTION

Pick ‘n Pay’s product – orientated approach to marketing

Pick ‘n Pay’s market-orientated approach to marketing

The Marketing Process

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Aims of the marketing function of Pick ‘n Pay

PRODUCT POLICY
Different types of products offered in the Crafted Range

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Factors that will make the P’nP Crafted Range successful.

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What you will do to extend the lifecycle of the Crafted Range

PRICE POLICY
Objectives set for the price set for the P’nP Crafted Range

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Pricing strategies

PLACE POLICY
Factors to consider when deciding on the distribution channel
- Type of product

- Purchase Timing

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- Competitors

PROMOTION POLICY
Explain how you will go about planning the advertising campaign.
Step 1

Step 2

Step 3

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Step 4

Step 5

Conclusion

Compiled by

Signature

Extra space

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