Centre Number Candidate Number Candidate Name

NAMIBIA SENIOR SECONDARY CERTIFICATE

BUSINESS STUDIES ORDINARY LEVEL 4346/2

PAPER 2 2 hours
Marks 100 2013

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Candidates answer on the Question Paper in the spaces provided.

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Write your Centre Number, Candidate Number and Name in the spaces at the top of this

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Write in dark blue or black pen.

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You may use a soft pencil for any rough work, diagrams or graphs. For Examiners Use

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Do not use correction fluid. 1
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Answer all questions.

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The number of marks is given in brackets [ ] at the end of each 4

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question or part question.
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This document consists of 15 printed pages and 1 blank page.

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Republic of Namibia
MINISTRY OF EDUCATION

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Sasa (Pty) Ltd
Sasa (Pty) Ltd is a producer of clothing based in the North West. The
firm was privatised in late 2009, having been a public sector organisation
before. The firm has tended to produce relatively small batches of clothes,
allowing it to change quickly in response to market trends.
However, the managing director is eager to expand quickly. He
communicates with his staff and seeks their inputs and suggestions.
Even though the company is still quite young its managers are hungry for
growth and believe the way to do this is to attack the mass market. Until
now its clothes designs have been ever changing, aimed at a younger
market and sold under the Energise brand. The brand loyalty of their
customers helps them in a decision to expand the business.
However, they rely on desk research, and dont conduct any primary
research before they take a decision.
The company thinks it is possible to take its brand to a wider audience
and produce on a much larger scale. In 2012 Sasa (Pty) Ltd signed a
joint venture agreement with another business. They signed contracts
for the supply of school clothing with a large number of schools. It is
considering a significant expansion of its production capabilities in 2013.
However, the project will only be successful if the equipment is used almost
continuously, and they do not make frequent design changes. They will
make less use of labour and become more capital intensive. The process
of changing over to the new production equipment will be expensive and
may involve other problems.
According to the agreement, both firms will contribute to the building of
the factory. They must decide on a site where they can locate the factory,
but must also adhere to government laws. However, they only take into
consideration the private costs and private benefits of the expansion and
ignore the external costs.
As the business changed to being a private company, and as it expanded
and joined the joint venture, the management produced a new, revised
organisational structure and chart.

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For
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1 (a) Define productivity. Use

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(b) Under what circumstances can improvements in the level of mechanisation

and the modernising of plant and equipment be

(i) a benefit for the workforce?

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(ii) a problem for the workforce?

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(c) Evaluate the importance of the production of quality products to the Use
business.

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2 (a) List three ways to measure the size of Sasa (Pty) Ltd. Use

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(b) The government intervened in the production and locations decision of Sasa
(Pty) Ltd. What could be the drawbacks to Sasa (Pty) Ltd?

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(c) Consider the problems that Sasa (Pty) Ltds smaller rivals may experience Use
when they try to operate, expand and compete with Sasa (Pty) Ltd.

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3 (a) Define the term brand loyalty. Use

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(b) Understanding the product life cycle is important for Sasa (Pty) Ltd
to determine its price and promotion. Suggest a pricing strategy and
promotion method that could be used in the introduction/launch stage
and why.

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(c) Describe one function that packaging performs for Sasa (Pty) Ltd.

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(d) Identify and explain two weaknesses of secondary research for Sasa Use
(Pty) Ltd.

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4 (a) In the context of Sasa (Pty) Ltd, distinguish between nationalisation and Use
privatisation.

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(b) Discuss the impact of privatisation on the consumers and the government.

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(c) Compare the aims and objectives of Sasa (Pty) Ltd with the aims of a similar Use
business in the public sector.

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5 (a) Outline two opportunities and two risks for Sasa (Pty) Ltd in engaging in a Use
joint venture.

Opportunities

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(b) Describe the need for Sasa (Pty) Ltd having an organisational structure for
expansion and how might this affect them positively.

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(c) (i) What is meant by the term capital employed? Use

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(ii) If the expansion goes ahead in 2013, suggest one reason why the
percentage return on capital employed might increase in 2014.

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For
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6 (a) Identify the type of leadership that Sasa (Pty) Ltd is using. Use

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(b) Say with reasons, whether you would prefer to work for a Theory X manager
or a Theory Y manager.

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(c) Leadership skills are practised not so much in words as in attitude and in Use
action.

Explain any other two qualities of a good manager.

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(d) Explain one management function.

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For
Examiners
7 (a) Identify two ways that Sasa (Pty) Ltd has specialised during the period Use
2011 to 2012.

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(b) When Sasa (Pty) Ltd expanded, its output increased and it changed from
batch to flow production for its product. It applied the principles of division of
labour. Do you think it is a good idea? Justify your answer.

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