Centre Number Candidate Number Candidate Name

NAMIBIA SENIOR SECONDARY CERTIFICATE

BUSINESS STUDIES ORDINARY LEVEL 4346/2

PAPER 2 2 hours
Marks 100 2016

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INSTRUCTIONS AND INFORMATION TO CANDIDATES

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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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page and on all separate answer sheets used.
• 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 Examiner’s Use

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• Do not use correction fluid. 1
• Do not write in the margin For Examiner’s Use.

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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.

Republic of Namibia
MINISTRY OF EDUCATION, ARTS AND CULTURE

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Nando’s: Not a Headless Chicken

Nando’s peri-peri chicken is famous all over the world. A truly global brand,
it employs around 30 000 people and has at least a thousand restaurants
specialising in the spicy hot chicken brand in places like Washington, London 5
and Johannesburg. Some restaurants are still owned by the company but
many are franchise operations. But South Africa is where it all started.

Nando’s founder Robert Brozin, 53, looks, speaks and swears more like a
surfer than the head of a food industry giant. 10

“Our basic vision, when we started twenty five years ago, was to have fun.
If you are not going to have fun, do not do it. We are trying to keep that
balance while at the same time changing how the world thinks about chicken,”
he says. 15

Nando’s has certainly changed the way the world thinks about chicken,
not only through the spicy meals they dish up, but through their infamous,
sometimes political, advertising campaigns.
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Where did it all start?

While working at Teltron, Brozin met his future business partner Fernando
Duarte, who introduced him to a shop in the small suburb of Rosettenville,
called Chickenland that sold Portuguese chicken. They later bought the 25
shop. “Fernando and I used to go and eat in Rosettenville and I liked the
chicken. I wanted to be an investor. I thought I would put money in and
Fernando would be there and I would just come to check how things were.
But this was not the case. I soon found out I had to be full-time,” says
Brozin. 30

Brozin wanted to take the brand global and enlisted the services of various
advertising agencies to help him market the brand name. “Our biggest
achievement was in creating a breakthrough and advertising helped to
create the personality of the brand,” he says. However he also had to borrow 35
a significant amount of finance from the bank. Today, Nando’s, a mixture of
company owned restaurants and franchise operations, can be found in more
than 25 countries around the world, across five continents. But it hasn’t
been plain sailing for Brozin, and his partner to get it to this level. “When we
started out everyone knew about other brands like Chicken Licken and KFC, 40
but we were passionate about our chicken. The front line people are the real
heroes at Nando’s. You can’t have a great organisation without having good
people at that level”, he says.

Everything is about cost, good management of cash flow and having a good 45
stock control system in place. Fernando has been fantastic for me. We
disagree many times but he has gotten me out of trouble many times. It’s not
how you get into trouble but how you get out of it,” he says.

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For
Examiner’s
Brozin has stepped down as CEO of Nando’s and has appointed David Niven 50 Use
to replace him. “It needed the right time and the right guy to come in and
thicken the Nando’s brand globally. I gave the new CEO a watch. I said, “You
might have the watch but Africa has the time. As you get bigger you get tighter
and you squeeze people and your workers which may lead to conflict. That is
not the way to do it.” 55

It is clear that he is not only driven by profits, but he is passionate about his
efforts to curb the spread of malaria in Africa. Nando’s sells ‘united against
malaria’ bracelets in all of its restaurants to raise awareness. The proceeds
go to buying mosquito nets for people in affected regions. 60

However, it is in business where Brozin is an expert. He offers some advice

to those wishing to follow in his footsteps. “Entrepreneurs come to me and
ask for cash. Cash is the last thing. Money has four legs, man has two
legs. Money will always catch up to man.” 65
(Adapted from Forbes Africa, May 2013 - S Madikane)

1 Explain the following terms used in the case.

(a) Investor (line 27)

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(b) Brand name (line 33)

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(c) Advertising (line 34) Use

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(d) Profits (line 57)

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(e) Entrepreneurs (line 63)

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For
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2 (a) Define the term specialisation. Use

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(b) Explain why it might be more important for the bank manager to see a
Cash Flow Forecast rather than either a Balance Sheet or a Profit and
Loss Account.

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For
Examiner’s
(c)  (i) Use the information to calculate and evaluate on the success of Use
Nando’s in 2013.

N$
Current assets 220 000
Gross profit 101 000
Sales turnover 450 000
Net profit 85 000
Current liabilities 78 000

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(ii) How reliable might your answer be?

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For
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3 (a) Explain the term organisational conflict. Use

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(b) Explain three possible causes of conflict in Nando’s.

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For
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(c) “We disagree many times” said Brozin. Use

Explain and evaluate two ways how Nando’s can resolve disputes at the
workplace.

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[15]

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For
Examiner’s
4 (a) (i) Use an example to distinguish between centralised and decentralised Use
decision making.

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(ii) What will be the possible drawbacks for Nando’s of using a centralised
decision making process?

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For
Examiner’s
(b) Explain and evaluate potential benefits to Brozin for being a franchisor and Use
one disadvantage.

Benefits

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Disadvantage

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[15]

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For
Examiner’s
5 In a large organisation like Nando’s communication can sometimes be a Use
problem.

(a) Define the term effective communication.

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(b) Explain the importance of effective communication in Nando’s.

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(c)  (i) Suggest two possible barriers of communication that this business
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(ii) How might Nando’s overcome these barriers mentioned in c (i)?

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For
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(d) Evaluate the appropriateness of using written communication to Nando’s. Use

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[15]

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For
Examiner’s
6 (a) List three factors which made Nando’s product successful. Use

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(b) Explain two advantages for Nando’s of having a good stock control
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(c) Distinguish between the term market and marketing.

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For
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(d) Why is it best for Nando’s to be a market orientated business? Use

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For
Examiner’s
7 (a) Explain two social benefits for the community if Nando’s locate in their Use
area.

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(b) What would be the impact on Nando’s if the Namibian government decide
to increase profit tax?

Explain your answer.

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