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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 Khayelitsha. One week, her fridge breaks during load-shedding, and she loses all her cold drinks. This is a real business problem—an obstacle that stops a business from reaching its goals. In South Africa, business problems often include unreliable electricity, theft, cash flow shortages, or transport strikes. These issues can lead to lost sales, unhappy customers, or even closure. The key is to spot problems early. Many learners think business problems are always huge, like bankruptcy. In reality, even a late supplier delivery can be a serious problem. Recognising the small, everyday issues is the first step to becoming a strong business thinker.
Sipho owns a minibus taxi in Durban. He notices fewer passengers during rainy weeks. At first, he blames the weather. But after talking to commuters, he learns that potholes slow his route, making taxis late and unreliable. Analysing a problem means looking beyond the obvious. Causes can be internal (like poor planning or staff mistakes) or external (like fuel price hikes or new laws). A common misconception is to blame only one thing, but most business problems have several causes. For example, a tuck shop’s low sales might be due to high prices, poor advertising, and competition from a new supermarket. Analysing all causes helps you find the best solution.
Lerato’s hair salon in Mthatha loses customers during load-shedding. Instead of giving up, she buys a small generator and offers discounts during power cuts. Finding solutions means thinking creatively and practically. Solutions can include changing suppliers, improving staff training, using technology, or adjusting prices. In South Africa, businesses often use stokvels (group savings clubs) to solve cash flow problems. Remember, not every solution needs lots of money—sometimes, better communication or teamwork is enough. Many learners think only big changes count as solutions, but small tweaks can make a big difference. The best solutions fit the business’s size, budget, and community.
Ahmed runs a fast-food outlet in Polokwane. When he faces slow sales, he tries brainstorming with his team, then uses the ‘5 Whys’ technique: asking ‘Why?’ five times to find the root cause. Comparing techniques helps choose the best approach. Brainstorming gathers many ideas quickly. SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) helps see the big picture. The ‘5 Whys’ digs deep into causes. Some learners think there’s only one right way to solve problems, but real business leaders use a mix, depending on the situation. For NSC exams, you must compare at least two techniques, showing pros and cons for each.
Step 1: Read the scenario. Thandi’s spaza shop in Soweto has lost customers after a new supermarket opened nearby. Step 2: Identify the problem. The problem is loss of customers (reason: competition). Step 3: Analyse the causes. Thandi’s prices are higher, and her shop has fewer products than the supermarket. Step 4: Suggest a solution. Thandi could offer unique products (like homemade vetkoek), improve customer service, or join a stokvel to buy stock in bulk and lower prices. Step 5: Check if the solution fits the business. The solution uses local resources and doesn’t need much money. Final answer: Thandi’s problem is competition from a supermarket. She should offer unique products and join a stokvel to compete.
Step 1: Read the scenario. Sipho’s taxi business in Durban is losing money due to rising petrol prices. Step 2: Choose two problem-solving techniques to compare. Let’s pick brainstorming and SWOT analysis. Step 3: Describe brainstorming. Sipho and his drivers list all possible ways to save fuel or increase income. Step 4: Describe SWOT analysis. Sipho lists his business’s strengths (good reputation), weaknesses (old vehicles), opportunities (new routes), and threats (fuel prices). Step 5: Compare. Brainstorming is fast and creative but may miss deeper issues. SWOT gives a full view but takes more time. Final answer: Brainstorming is quick for ideas, while SWOT is better for detailed planning. Both help, but together they are strongest.
Question: Lerato’s internet café in Mthatha loses customers when the Wi-Fi is slow. What is the problem, and what could be causing it? Let’s think: The problem is loss of customers. Possible causes: slow Wi-Fi, unreliable service provider, or too many users at once. Worked response: The main problem is slow Wi-Fi, caused by either the service provider or too many users. Similar question for you: Ahmed’s car wash in Polokwane loses business during water restrictions. What is the problem and one possible cause? Answer: The problem is loss of business; a possible cause is water shortages due to municipal restrictions.
Question: Sipho’s taxi business faces delays due to potholes. What practical solution could he try? Let’s think: He could change his route, report potholes to the municipality, or schedule trips to avoid peak times. Worked response: Sipho could adjust his route to avoid the worst potholes and work with other drivers to report them. Similar question for you: Thandi’s spaza shop struggles with cash flow. Suggest one practical solution. Answer: Thandi could join a stokvel to pool money and buy stock in bulk.
1. List two common business problems faced by South African entrepreneurs, such as unreliable electricity or theft. 2. Name one internal cause (like poor planning) and one external cause (like fuel price hikes) of business problems. 3. Define ‘problem-solving’ in your own words, making sure to mention identifying, analysing, and finding solutions to business challenges.
1. Analyse why a hair salon in Durban might lose customers during load-shedding, considering both direct and indirect effects. 2. Suggest two practical solutions for a tuck shop facing competition from a new supermarket, thinking about what is realistic for a small business. 3. Compare brainstorming and the ‘5 Whys’ technique for solving business problems, explaining when each might be most useful and why.
1. Examine a scenario: A minibus taxi owner in Soweto faces rising fuel costs and declining passengers. Identify the problems, analyse at least two causes, and suggest two realistic solutions that fit the local context. 2. Justify why using more than one problem-solving technique can be effective by giving examples from real or imagined South African businesses. 3. Solve an NSC-style question: Given a case study, identify the business problem, analyse its causes in detail, and recommend a solution, explaining your reasoning as you would in a Paper 2 exam.
Answer: Load-shedding
Load-shedding comes from outside the business. Many confuse internal and external causes; staff training is internal.
Answer: Identifying the problem
You must know what the problem is before you can solve it. Many jump to solutions too soon.
Answer: 5 Whys
The ‘5 Whys’ technique is designed for root cause analysis. Learners often confuse it with brainstorming.
Answer: Potholes causing delays
Potholes slow down taxis, leading to late arrivals. Many may wrongly choose high prices, but the scenario links to transport.
Answer: Joining a stokvel
A stokvel is affordable and practical for small businesses. Learners may think a generator is best, but it’s costly.
Answer: It ensures the real reasons are found, so solutions address the true issues, not just the symptoms.
If you only look at one cause, you might miss other important factors and your solution may not work. By analysing all possible causes, you make sure the solution is effective and the problem does not return. This is especially important in South Africa, where problems often have more than one cause, like load-shedding and supplier delays happening together.
Answer: Brainstorming is quick and creative; SWOT is detailed and strategic. Both have strengths and can be combined.
Brainstorming helps generate many ideas fast, which is good for urgent problems or when you need options. SWOT analysis takes more time but gives a deeper understanding of the business’s situation. Using both together means you get lots of ideas and also know which ones fit your business best.
Answer: Join a stokvel, negotiate better supplier terms, or increase sales through promotions.
Borrowing money is not the only way to solve cash flow issues. Businesses can use local savings groups like stokvels, ask suppliers for longer payment periods, or run promotions to boost sales. These options avoid debt and can be more sustainable, especially for small businesses in South Africa.
Answer: R1,650
10% of R1,500 is R150, so new total is R1,650. Many forget to add the increase to the original amount.
Answer: It attracts more customers long-term
Good service builds loyalty. Lowering prices isn’t always sustainable; learners often pick instant results over long-term gains.
Answer: Finding a practical solution
Offering discounts is a creative way to keep customers. Some may confuse this with raising prices.