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Move from lesson study to exam practice in Business Studies.
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Imagine Thandi runs a spaza shop in Soweto. One week, her fridge breaks during load-shedding, and all her cold drinks go warm. Her customers start buying from Ahmed’s shop down the road. This is a classic business problem: something unexpected disrupts operations and affects profits. In South Africa, issues like unreliable electricity, taxi strikes, or even a Springboks match can change customer behaviour. A business problem is any obstacle that stops a business from reaching its goals, such as making a profit, growing, or serving customers. Many learners think only big companies face problems, but even a small tuckshop or street vendor must solve daily challenges. Recognising these problems early is the first step to finding solutions. For example, a minibus taxi driver in Mthatha might lose passengers if a new route opens. By noticing these changes, business owners can act before the problem grows.
Sipho owns a car wash in Polokwane. He notices fewer cars on rainy days, but one month, business drops even when it’s sunny. Instead of blaming the weather, Sipho talks to his customers and learns that a new car wash opened nearby with better prices. Analysing the root cause means looking beyond surface issues to find what’s really wrong. It’s easy to jump to conclusions, but good businesspeople gather facts, ask questions, and look for patterns. For instance, Sipho could check if his prices have changed, if his staff are friendly, or if his equipment is working well. A common misconception is to blame external factors (like the economy) without checking internal issues (like pricing or service quality). By understanding the real problem, businesses can fix it more effectively. This approach helps avoid wasting time and money on the wrong solutions.
Lerato runs a hair salon in Durban. She notices her profits are shrinking. Instead of panicking, she follows a step-by-step approach: (1) Identify the problem (profits dropping), (2) Gather information (check expenses, talk to customers), (3) Analyse options (raise prices, offer specials, cut costs), (4) Choose the best solution (run a winter special), (5) Implement the solution, and (6) Review the results. This structured process helps avoid rushed decisions and costly mistakes. For example, if she skips gathering information, she might raise prices when the real issue is poor service. Many learners skip the review step, but it’s crucial: if the solution doesn’t work, you must try something else. Practising these steps prepares you for real business and NSC exam questions. Each step builds on the last, making sure you solve the right problem in the best way.
Step 1: Read the scenario. Sipho’s car wash in Polokwane is losing customers. Step 2: List possible causes. Weather, new competition, price changes, service quality. Step 3: Gather information. Sipho interviews customers and checks his prices against the new car wash. Step 4: Analyse findings. Customers mention the competitor’s lower prices and loyalty cards. Step 5: State the root cause. The main issue is competition offering better value. Final Answer: The root cause is the competitor’s pricing and loyalty programme, not the weather. Sanity check: Does this fit the facts? Yes—customers switched for better deals.
Step 1: Identify the problem. Thandi’s spaza shop loses customers during load-shedding. Step 2: Gather information. She checks which products go unsold and asks customers why they leave. Step 3: Analyse options. Buy a generator, sell more non-perishables, or partner with a neighbour for shared power. Step 4: Choose the best solution. She decides to invest in a small generator. Step 5: Implement the solution. Thandi buys the generator and advertises that cold drinks are always available. Step 6: Review the results. Sales increase, and customers return. Final Answer: Thandi solved her problem by ensuring cold drinks are always available, even during load-shedding. Sanity check: Did this address the root problem? Yes—customers wanted cold drinks.
Question: Lerato’s salon in Durban is losing clients. What might be the problem, and how can she find the root cause? Model: First, list possible reasons: new competition, price increases, poor service, or bad location. Next, gather facts: ask clients for feedback, check if a new salon opened, review prices. Worked response: Lerato surveys her clients and discovers that a new salon nearby offers free Wi-Fi and coffee. She realises the root cause is the competitor’s added value. Now you try: Sipho’s car wash is losing customers. What should he do to find the real reason? Answer: Interview customers, compare services and prices, and check for new competitors.
Question: Ahmed’s shop in Khayelitsha runs out of bread every Friday. What steps should he take to solve this problem? Model: (1) Identify the problem (bread shortage), (2) Gather info (sales records, supplier reliability), (3) Analyse options (order more, change supplier, stagger deliveries), (4) Choose the best solution, (5) Implement, (6) Review. Worked response: Ahmed decides to order extra bread on Thursdays and monitor sales. Now you try: Thandi’s fridge breaks during load-shedding. What can she do? Answer: She can buy a generator, sell more shelf-stable goods, or partner with a neighbour for shared power.
1. List two common business problems faced by South African entrepreneurs, such as unreliable electricity or new competition. 2. Define 'root cause' in your own words, explaining why it is important to find the real reason behind a problem. 3. Name one step in the problem-solving process and describe what happens during that step.
1. Explain why it’s important to gather information before choosing a solution, using an example from a local business. 2. Identify a problem a minibus taxi owner in Mthatha might face, such as fewer passengers, and suggest one way to find its root cause. 3. Compare brainstorming and customer feedback as problem-solving techniques, giving one advantage of each.
1. Analyse a scenario: A Durban tuckshop’s sales drop during school holidays. Determine the root cause and suggest a solution that fits the situation. 2. Justify which problem-solving technique would work best for a business facing unpredictable load-shedding, explaining your choice. 3. Solve: Given a case where a business tries a solution that fails, explain what step they missed in the process and how to correct it for better results.
Answer: Customers stop buying due to high prices
A business problem is something that negatively affects the business, such as losing customers. The other options are not problems.
Answer: Identify the problem
You must know what the problem is before you can solve it. Many learners mistakenly start with gathering information.
Answer: To see if the solution worked
Reviewing checks if the problem is solved. Skipping this step can mean missing ongoing issues.
Answer: Brainstorming
Brainstorming is fast and creative, allowing a group to come up with many ideas in a short time. The other techniques are more structured and take longer, so they are not as effective for quickly generating lots of options. Learners often confuse brainstorming with customer surveys, but surveys collect opinions rather than generate solutions.
Answer: Ignoring root causes
Blaming external factors without checking internal ones is a common misconception. Always analyse all possible causes.
Ahmed in Khayelitsha faces a stock shortage. He could brainstorm solutions with his staff, use a decision-making matrix, or ask customers for suggestions. Brainstorming is quick and creative but can get off-topic if not managed well, leading to ideas that aren’t practical. A decision-making matrix scores each option against criteria like cost and speed, helping to choose logically and avoid bias. Customer feedback brings fresh ideas but might not be practical or affordable for the business to implement. Comparing techniques means weighing their strengths and weaknesses for each problem. In exams, you might be asked to justify why one method is better for a specific scenario. Remember, there’s rarely one perfect answer—what matters is your reasoning and how well you match the technique to the problem. Choosing the right approach can save time and resources.
Answer: To gather information about why customers are leaving, which helps identify the real problem.
Talking to customers reveals insights that numbers alone may not show, leading to better solutions.
Answer: Brainstorming generates many ideas quickly; a decision-making matrix helps evaluate and choose the best option logically.
Each technique has strengths: creativity versus logical comparison. Both can be useful at different stages.
Answer: About 9 weeks (R2,500 divided by R300 ≈ 8.33, so after 9 weeks she covers the cost).
To find the break-even point, divide the total cost of the generator by the extra profit per week. R2,500 divided by R300 equals about 8.33 weeks, so she will cover the cost in 9 weeks. Learners often forget to round up to the next full week, which is needed because she can't break even in a fraction of a week.
Answer: Students are not at school to buy snacks
Sales drop because the main customers are absent. The other options don’t fit the scenario.
Answer: It provides direct insights from users
Customer feedback reveals what customers want, which helps tailor solutions. The other options are incorrect.
Answer: The problem may continue unnoticed
Without reviewing, businesses may miss ongoing or new issues. This is a common exam pitfall.