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For
Examiner's
Centre Number Candidate Number Candidate Name Use

NAMIBIA SENIOR SECONDARY CERTIFICATE

BUSINESS STUDIES HIGHER LEVEL 8336/2
PAPER 2 2 hours 30 minutes
Marks: 100 2007

No Additional Materials are required.

INSTRUCTIONS AND INFORMATION TO CANDIDATES

$ Candidates answer on the Question Paper in the spaces provided.

$ Write your Centre Number, Candidate Number and Name in the spaces at the top of this page and
on all separate answer sheets used.
$ Write in dark blue or black pen.
$ You may use a soft pencil for any rough work, diagrams or graphs.
$ Do not use staples, paperclips, highlighters or correction fluid.
$ Do not write in the margin For Examiner's Use.

$ Answer ALL questions.

$ The number of marks is given in brackets [ ] at the end of each question or part question.
$ The businesses mentioned in this question paper are entirely fictitious.

For Examiner's Use

Total

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

Republic of Namibia
MoE/DNEA MINISTRY OF EDUCATION [Turn over
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Read the case study and answer all the questions which follow. The case study is purely Examiner's
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fictitious.

www.nambooks.com.na

Alis father was a bookseller and Ali grew up in the business. After Ali's father died
he inherited the business and decided to expand his bookselling business. Alis
father had been a sole trader but Ali recognised that if he wanted expansion, he
also needed capital and possibly a change of business organisation.

Alis plan was to increase the number of retail outlets, to offer a wholesaling 5
service to other booksellers and to sell books over the internet. His costing
indicated an initial capital requirement of N$250 000. He decided to register
the business as a private limited company with an authorised capital of 100 000
x N$5 ordinary shares. Ali invested N$80 000, three relatives each subscribed
N$20 000, and two friends from the publishing world put in N$15 000 and 10
N$25 000 respectively.

Ali opened six additional bookshops and a company warehouse. The head office
and on-line facility were also based here. He used his computer knowledge to
improve business systems e.g. stock control, accounts, payroll and ordering.
He introduced computerised direct ordering on his own website (www.nambook. 15
coms.na), which offers books at attractive discount prices. After three years of
Alis leadership, annual turnover has grown from N$800 000 to more than N$5
million.

Developing the business meant installing a management structure. Ali is the

Chairman and Managing Director; the three relatives are executive directors 20
looking after retail, warehouse and ordering, and administration. The other two
investors are non-executive directors. Ali is specifically responsible for the on-line
facility. When the business became a private company, it had a pyramid structure
because it was easy to manage but he didnt draw up an organisation chart. Now,
however, he is beginning to think about changing the structure. 25
He employs 72 full-time staff members that have a minimum level of education
and are fully trained. All staff members have strictly applied working hours but
he has been approached to offer job-rotation and flexitime. The nature of the
workplace has changed: some staff members continue to deal with customers
face to face, whilst others sit in front of computers. His business is doing well, not 30
just because of his skill and enterprise but also because of political and economic
policies, social trends and technology.

When introducing the on-line facility, others in the trade warned Ali that internet
sales would fail because people like browsing the internet and talking in
bookshops. However, Ali is doing very well and on-line sales, in both home and 35
overseas markets, represent about 55 % of total turnover.

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1 Explain the significance of the following terms as used in the case. Examiner's
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(a) capital
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(b) retail
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(c) executive director
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(d) economic policies Examiner's
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(e) internet sales

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2 (a) Why do you think Ali prefer to set up a private company instead of going public? Examiner's
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Explain your answer.

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(b) Apart from his own ambitions, explain other business objectives that Ali might Examiner's
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have set for this company? Justify your answer.
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(c) Ali raised N$180 000 from issuing shares. Discuss the suitability of one other
source of capital that he could use to raise the remaining amount of capital
required.
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3 (a) Ali insists on a minimum level of education when recruiting workers and on staff Examiner's
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training.

(i) Why do you think trained and educated staff are important to Alis business?

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(ii) Compare the different methods of training and advise Ali on the best method to
use.
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(b) Ali only employs full-time staff who work strict company hours. Some staff Examiner's
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suggested that he should introduce job rotation.
Explain how job rotation might increase job satisfaction in Alis business.
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WILDLIFE RESORTS UNVEIL NEW RATES Examiner's
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*Staff Reporter

The Namibia Wildlife Resorts (NWR) on Wednesday announced new prices that
will apply from November 1 2004 to October 31 2005.

The average increase for all resorts under NWR management is 5,7 per cent,
Peter Mietzner, the NWRs PRO said.

Specific prices are available at the 2004 Namibia Holiday & Travel Expo, he said.
NWR would like to advise all its esteemed customers that the 2004/2005 tariff
structure already includes the anticipated 2 % NTB tourism levy. Should this
levy not be introduced by November 1 2004, NWR tariffs will be reduced by that
percentage as a matter of course, he said.

The NWR has not introduced any additional fees for day visitors. The media
and the industry will be informed well before introduction of such a fee once
consensus has been achieved on this issue with the various role players in the
industry," Mietzner said.

Due to popular demand, NWR also announced the re-introduction of transportation

from the nearest landing strip to the resort. The facility is available to all fly-in
clients at a nominal charge per person depending on the distance from the resort,
he said.

The gates at Sesriem are to be opened an hour earlier and closed an hour later
and a nominal charge applies to this special service too.

He pointed out that all Namibian citizens (and permanent residents) automatically
qualify for a 25 per cent discount on accommodation rates/camping fees and a
50 per cent discount on park fees. Senior citizens over 60 years of age qualify
for an additional 10 per cent discount on accommodation/camping fees.
The Namibian 14 May 2004

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4 (a) Namibian Wildlife Resorts are dependent on the support of local and foreign Examiner's
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people (visitors).

Do you think that the increase in prices will have a significant impact on visitor
numbers to the resorts? Justify your answer.
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(b) Do you think that private lodges, which are in direct competition with NWR, will
benefit from these increased tariffs? Justify your answer.
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(c) NWR announced the reintroduction of transportation from the Airport landing Examiner's
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strips to the resorts.
Explain how NWR might have found out that this transport service was likely to
be popular.
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5 Using all of the information given in question 4, write a report to the Board of Directors Examiner's
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of Namibia Wildlife Resorts (NWR), advising them on changes that should be made to
their marketing mix strategy as a result of the change in the increase of tariffs.

Your report should include:

a brief summary of the problem
the alternative changes that could be made to the parts of the marketing mix
consideration of how each of these changes would affect NWR
a conclusion and recommendation of the most appropriate changes that should
be made to the marketing mix
reference to relevant business studies theory as and where appropriate
Marks will be awarded for using the correct format for a report.
Write your report on the pages which follow. You may ask for additional paper
if needed. [20]

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