Business Studies - Term 1 - Week 9

Imagine Thandi runs a small bakery in Khayelitsha. One Monday, load-shedding hits during her busiest hour. Her ovens stop, customers leave, and she loses sales. This is a real business problem—something that disrupts how a business runs or makes money. In South Africa, problems like unreliable electricity, late supplier deliveries, or even taxi strikes are common. These issues can be inside the business (like broken equipment) or outside (like new government rules). The key is to spot what is stopping the business from reaching its goals. Many learners think only big companies face problems, but even a tuckshop at your school can struggle with things like stock theft or price increases. Always look for what is blocking success. Even the Springboks face business problems—like sponsorship delays or travel issues—that can affect their performance off the field.

Sipho owns a minibus taxi in Polokwane. One day, his driver calls in sick (internal problem), and the next day, fuel prices rise (external problem). Internal problems come from inside the business—staff, equipment, or management decisions. External problems come from outside—like changes in law, economy, or weather. For example, if Ahmed’s cellphone shop in Durban is robbed, it’s an external problem. But if he forgets to pay his suppliers, that’s internal. A common misconception is to think all problems are caused by the business itself, but many are out of their control. Knowing the difference helps businesses find the right solutions. For instance, if a business faces both a broken fridge and a new tax, they must fix the fridge themselves but lobby or adapt to the tax.

Lerato’s hair salon in Mthatha faces water cuts. She can’t wash clients’ hair, so customers go elsewhere. This leads to less income, unhappy staff, and even negative social media reviews. One small problem can affect many parts of a business—sales, reputation, and staff morale. In the NSC exam, you might be asked to analyse how a single issue (like a supplier delay) impacts different areas. Always think: who is affected, and how? Don’t just stop at the obvious. For example, load-shedding doesn’t just stop production; it can also increase costs if a business has to buy a generator. Over time, repeated problems can cause a business to lose loyal customers, struggle to pay staff, or even close down. That’s why it’s vital to spot and address issues early.

Sipho’s minibus taxi business in Polokwane faces two problems: (a) his driver is often late, and (b) the municipality increases license fees. Classify each problem as internal or external. Step 1: Read each problem carefully and identify the cause. Step 2: If the problem comes from within the business (staff, equipment, management), it is internal. If it comes from outside (government, economy, weather), it is external. Step 3: Problem (a) is about the driver—a staff issue—so it is internal. Problem (b) is about license fees set by the municipality, so it is external. Final Answer: (a) Internal, (b) External. Sanity Check: If Sipho can control it directly, it’s internal. If not, it’s external.

Thandi’s bakery in Khayelitsha loses power during load-shedding. Analyse the impact on her business. Step 1: Identify what the problem stops Thandi from doing (baking bread, serving customers). Step 2: Think about who is affected (customers, staff, owner). Step 3: List the effects: lost sales, wasted ingredients, unhappy customers, possible spoilage, staff with nothing to do. Step 4: Consider long-term effects: customers may not return, reputation suffers, income drops. Final Answer: Load-shedding leads to lost sales, wasted stock, unhappy staff, and possible loss of customers. Sanity Check: Imagine if the problem happened every day—would the business survive?

Question: Ahmed’s cellphone shop in Durban is robbed. The next week, his supplier increases prices. Let’s think: Is each problem internal or external? Model: Robbery is caused by criminals outside the business—so, external. Supplier price increases are also outside Ahmed’s control—external. Worked Response: Both problems are external. These are not caused by Ahmed or his staff, but by outside forces. Your Turn: If Ahmed forgets to pay his electricity bill and the shop is cut off, is this internal or external? Answer: Internal (Ahmed controls bill payments; this is a mistake inside the business).

Question: Lerato’s salon in Mthatha faces water shortages. What practical solution could she try? Model: Think about what’s possible for a small salon. Maybe she could install a water tank or schedule clients when water is available. She could also partner with a nearby business that has water storage. Worked Response: Lerato could install a small water tank to store water for busy times or adjust her appointment schedule to match water availability. Your Turn: Thandi’s bakery faces regular load-shedding. Suggest a realistic solution. Answer: Use a gas oven or generator during power cuts, or bake bread during times when electricity is available.

1. List two common business problems faced by South African spaza shops, such as theft or unreliable electricity supply. 2. Define an internal business problem in your own words and give an example from your community. 3. Give one example of an external problem affecting minibus taxi businesses, explaining why it is external.

1. Classify each as internal or external: (a) Staff theft, (b) New government tax, (c) Broken fridge. Explain your reasoning for each classification. 2. Explain how late supplier deliveries can affect a Durban restaurant’s daily operations and customer satisfaction. 3. Suggest one solution for a tuckshop facing rising bread prices, and explain why your solution is practical for a small business.

1. Analyse the impact of regular load-shedding on a small clothing factory in Soweto, considering both short-term and long-term effects. 2. Suggest two practical solutions for a rural shop facing stock theft, and justify why these solutions would work in that context. 3. In an NSC Paper 2 style: Justify why it is important for a business to distinguish between internal and external problems, using local examples to support your answer.

• Load-shedding
• Staff absenteeism
• Supplier price increase
• Taxi strike

Answer: Staff absenteeism

Staff absenteeism is caused by employees within the business. Many confuse external disruptions like load-shedding with internal issues.

• Internal problem
• External problem
• Personal problem
• Financial problem

Answer: External problem

Government regulations come from outside the business. Some may wrongly think it’s internal because it affects operations.

• Install expensive biometric scanners
• Hire security guards for 24 hours
• Install a simple alarm system
• Move the shop to a new city

Answer: Install a simple alarm system

A simple alarm is affordable and practical. High-tech or drastic moves are unrealistic for small businesses.

• R1 000
• R2 500
• R5 000
• R3 500

Answer: R2 500

R500 x 5 = R2 500. Some may multiply by 7 or forget to use working days.

• It helps decide who to blame
• It guides finding the right solution
• It increases staff morale
• It reduces competition

Answer: It guides finding the right solution

Knowing the type of problem helps choose effective solutions. Blame or morale is not the main reason.

Answer: Robbery, supplier price increases

Both are outside the business’s direct control. Robbery is a crime committed by outsiders, and supplier price increases are decisions made by other companies. Many learners confuse supplier issues as internal, but unless the business owns the supplier, it is external.