A-LEVEL Business Studies

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1 A-LEVEL Business Studies BUSS4 The Business Environment and Managing Change Mark scheme 2130 June 2016 Version 1.0: Final Mark Scheme

2 Mark schemes are prepared by the Lead Assessment Writer and considered, together with the relevant questions, by a panel of subject teachers. This mark scheme includes any amendments made at the standardisation events which all associates participate in and is the scheme which was used by them in this examination. The standardisation process ensures that the mark scheme covers the students responses to questions and that every associate understands and applies it in the same correct way. As preparation for standardisation each associate analyses a number of students scripts. Alternative answers not already covered by the mark scheme are discussed and legislated for. If, after the standardisation process, associates encounter unusual answers which have not been raised they are required to refer these to the Lead Assessment Writer. It must be stressed that a mark scheme is a working document, in many cases further developed and expanded on the basis of students reactions to a particular paper. Assumptions about future mark schemes on the basis of one year s document should be avoided; whilst the guiding principles of assessment remain constant, details will change, depending on the content of a particular examination paper. Further copies of this mark scheme are available from aqa.org.uk. Copyright 2016 AQA and its licensors. All rights reserved. AQA retains the copyright on all its publications. However, registered schools/colleges for AQA are permitted to copy material from this booklet for their own internal use, with the following important exception: AQA cannot give permission to schools/colleges to photocopy any material that is acknowledged to a third party even for internal use within the centre.

3 Assessment Objectives The Assessment Objectives represent those qualities which can be demonstrated in candidates work and which can be measured for the purposes of assessment. AO1 Demonstrate knowledge and understanding of the specified content AO2 Apply knowledge and understanding to problems and issues arising from both familiar and unfamiliar situations AO3 Analyse problems, issues and situations AO4 Evaluate, distinguish between and assess appropriateness of fact and opinion, and judge information from a variety of sources Quality of Written Communication Candidates give accurate definitions of relevant terms. Candidates can also gain credit for identifying a point relevant to the question. Candidates should apply their knowledge to the business context in which the question is set, through recognition of some specific business aspect, the management of the business or the problems or issues faced by the business. Candidates will not be rewarded for simply dropping the company name or product category into their answer. Candidates use relevant business theory and select information from a range of sources, using appropriate methods, to analyse business problems and situations. For example, candidates may be asked to build up an argument that shows understanding of cause and effect. Candidates evaluate evidence to reach reasoned judgements. This can be shown within an answer, through the weighting of an argument or it can also be shown within a conclusion, perhaps by weighing up the strength of the candidate s own arguments for and against a proposition. Candidates will not gain credit by the simple use of drilled phrases such as On the other hand or Business operates in an everchanging environment. The quality of written communication is assessed in all assessment units where candidates are required to produce extended written material. Candidates will be assessed according to their ability to: ensure that text is legible, and that spelling, grammar and punctuation are accurate, so that meaning is clear. select and use a form and style of writing appropriate to purpose and complex subject matter organise information clearly and coherently, using specialist vocabulary when appropriate The assessment of the quality of written communication is included in Assessment Objective 4. 3 of 14

4 ADDITIONAL GUIDANCE FOR MARKING SCHEME Essay marking The process of essay marking When marking an essay it is important to follow the flow of the arguments. This means that you should a read paragraph as a whole to see how an argument develops. In some cases, you may need to read more than one paragraph to follow through an argument to its conclusion. When reading, you need to identify the relevant skill (eg application, analysis and evaluation) and then decide on the level of this skill. At the end of an essay, you should reflect on the response as a whole - take a view of how the essay works in its entirety and, if necessary, be prepared to revisit particular paragraphs to consider the level. At the bottom of the script you should write down the skills and levels, eg Reasonable Analysis and Reasonable Application. This determines the level you award - in this case Level 3. You then need to decide on where within the level the mark should fall, eg the default for Level 3 is 15 marks. Add up your marks for the Application and Analysis and for the Evaluation to give the total. The total should be recorded in the right hand margin. Make sure you check your addition at this stage and when totaling up the marks for the paper as a whole. Annotation When rewarding knowledge you annotate K. This is common, for example, at the start of an essay when there are often definitions. Once other skills have gone beyond Limited it is not necessary to keep annotating K through the script. For the other skills: Limited Application: use LAp Reasonable Application: use RAp Good Application: use GAp Limited Analysis: LAn Reasonable Analysis: RAn Good Analysis: GAn Limited Evaluation: E1 Reasonable Evaluation: E2 Good Evaluation: E3 Note: if you are want to flag where a skill is within a level you can use +/-, eg if it is at the top of Reasonable Analysis you can highlight this as RAn+; if it is only just Reasonable Evaluation you might show this as E2. This is not essential but some markers find this a useful way of showing if they feel it is as the top or bottom of level of a skill. It is very important that you annotate the skills you see fully. This shows that all the script has been read and that you have taken relevant arguments into account. You should also tick or initial blank pages please read all plans and annotate, eg K. 4 of 14

5 Remember that once a student has reached a level they cannot go lower. For example, if a student achieves Good Analysis in one argument they stay at this level even if the rest of the response only demonstrates limited analysis. Application occurs when a student relates their arguments or judgments to a context such as a business, an industry, some aspect of a business such as its scale that is relevant to the question, real world events or real world data. Note: application does not have to be about specific businesses. Good application is likely to include: arguments that are consistently based on the context provided by the question, eg relevant businesses, relevant industries, relevant cases, relevant reference to data. This can provide a range of relevant effective examples that have been used meaning the answer as a whole is well rooted in the context a depth of application to support an argument e.g. the use of data/businesses/cases which perhaps compares and contrasts examples well in its arguments or combines examples effectively. Reasonable application is likely to include: some use of context is used in the argument providing support to the response but this is not substantial enough for the response to feel well rooted overall in the context provided some arguments are supported by examples but the context is not referred to consistently and/or examined in depth examples are explained but require greater links to the argument. Limited application is likely to include: some reference is made to the context but without development the use of examples is descriptive and provides only limited support to the arguments made. 5 of 14

6 Analysis occurs when there is a chain of argument. Good analysis is likely to include: an effective examination overall of the key issues in the question a relevant argument that is well developed - it provides logical, well-reasoned examination of a relevant, significant issue in the question, eg analysing the cause of a change or the effect of a change and examining the links between the different stages of the argument Reasonable analysis is likely to include: the argument(s) are developed examining some of the stages in a logical argument but not following it through fully to its conclusion the analysis is rather general rather than directly focused on the question the argument lacks some precision, focus or appropriateness. Limited analysis may occur when: there are basic development of points; the elements of an argument are referred to but left undeveloped or lack clarity. Evaluation occurs when a judgment is made. Overall advice When considering the judgments made in an essay, look at the essay as a whole and the arguments that have been made in the response. Consider the extent to which the judgment builds on the arguments presented and the extent to which it addresses and reaches a conclusion regarding the question as set. 6 of 14

7 Good evaluation is likely to include: Judgments that build directly on, and weigh up, the arguments made to address key issues Reasonable evaluation is likely to include: some overall judgments are made with support, however, they do not fully address the key issues and/or fully build on arguments supported judgments of individual arguments but no effective overall judgment of the set question Limited evaluation is likely to include: judgments are made but these may be unsupported or lack development. They may be mainly based on assertion or have only basic explanation. General notes Be careful of a collection of descriptive stories; the volume of examples here does not mean the application is good if the examples do not support an argument. Be careful of chains of argument that have several stages to them but are generic, not precise and not well considered or thought through in relation to this question; this may be reasonable rather than good. Be prepared to follow an argument through - it may develop from one paragraph to another. Equally, a judgment at the end of an essay may in fact be building on earlier analysis (similarly an assertion at the start of a paragraph may be supported by the following analysis). If application or analysis is limited then it remains in Level 1 however many times it is demonstrated. Skills can be demonstrated at the same time - a well-developed chain of argument supported by industry or business insight could be good application and good analysis. 7 of 14

8 Section A 01 Total for this question: 40 marks To what extent do you think that e-commerce is good for consumers but bad for shareholders? Justify your answer with reference to your own research and the item above. [40 marks] Relevant answers might include: For consumers e-commerce may be good because it can: offer more choice, lower prices and more convenience for consumers enable businesses to offer recommendations and provide a better service. However it may mean businesses track customer buying habits; this may be seen as a good or bad thing there may be issues with safety of information such as bank details it may reduce the number of high street stores which may worsen the shopping experience for some. For the shareholders e-commerce may be bad because: It puts pressure on prices and sales as customers shop around more and have more bargaining power; this may affect the profits available for shareholders may involve high costs e.g. initial and ongoing investment in technology However it offers more access to markets and creates new market opportunities enabling higher profits and possibly increasing the share price over time enables businesses to manage their supply chain more effectively and efficiently increasing the profit and value of the business Whether e-commerce is good for consumers but bad for shareholders may depend on: how well a business manages the change to e-commerce; some have exploited this opportunity whilst others have suffered the impact of e-commerce on business performance the nature of the good or services; some may be more suited to e-commerce than others the ability of consumers to use e-commerce (e.g. the quality of the technological infrastructure) meaning of good e.g. may encourage excessive spending Good Evaluation must make a clear supported judgment building on analysis that considers the impact of e-commerce on both consumers and shareholders. For advice on how to mark and annotate the essay see pages 4 7. Remember that for Good Application there must be some use of the item 8 of 14

9 02 Total for this question: 40 marks To what extent do all businesses need to make e-commerce the main focus of their strategies in the future? Justify your answer with reference to your own research and the item above. [40 marks] Relevant answers might include: the benefits that e-commerce can bring to a business, eg - access to new markets - faster growth - higher profits - a means of competitive advantage - a means of maintaining sales - a better understanding of customers the likely future growth of e-commerce and the opportunities that this creates the threats that might exist if a business does not make e-commerce a focus, eg loss of market share. However whether this should be the main focus of their strategies may depend on: the investment to date, ie it is already a key element of the strategy for some businesses whether it can be managed effectively the impact on competitiveness and growth the benefits relative to the costs the type of business it is and what industry it is in other possible priorities. Responses can refer to corporate or functional strategies. Good Evaluation will make a clear judgement based on analysis as to whether e-commerce should be the main focus of strategy A good response should not just consider the benefits of e-commerce (i.e. it is or is not a good thing ) but whether it should be the main focus of strategy in the future For advice on how to mark and annotate the essay see pages 4 7. Remember that for Good Application there must be some use of the item 9 of 14

10 Section A level descriptors Level Descriptor Default Marks L5 Application/analysis Good AN and Good AP L4 Application/analysis Good AN and Reasonable AP or Good AP and Reasonable AN L3 Application/analysis Reasonable AP and Reasonable AN or Good AN and Limited AP or Good AP and Limited AN L2 Application/analysis Reasonable AP and Limited AN or Reasonable AN and Limited AP L1 Limited response Answer based primarily on knowledge NB: Reasonable application must have evidence of research. Good application must have evidence of research and use of item. For Evaluation, you should award marks using the grid below: Level E3 Descriptor Good evaluation with evidence of research. Judgments that build directly on, and weigh up, the arguments made to address key issues Coherent structure with consistent and appropriate use of technical terms. There are few errors in accepted conventions of written communication. Default mark Marks E2 Reasonable evaluation with evidence of research. This is likely to include some overall judgments are made with support, however, they do not fully address key issues and/or build on arguments supported judgments of individual arguments but no effective overall judgment of the set question Logical structure with some appropriate use of technical terms. There are occasional errors in accepted conventions of written communication. Limited evaluation. E1 Ideas are communicated with some structure evident, with occasional use of appropriate technical terms. There are some errors in accepted conventions of written communication of 14

11 Section B 03 Total for this question: 40 marks In a report on the UK banking sector, it was claimed that it would take many years to change the culture of the banks to make them reduce their risk taking and be less greedy. To what extent is it inevitable that changing the culture of a business will take many years? Justify your answer with reference to banks and/or other businesses that you know. [40 marks] Relevant answers might include: Culture refers to the values, attitudes and beliefs of employees Culture may be slow to change because: it may reflect deeply held views those who are senior many have gained their status from these values and behaviours in the past and so they may be reluctant to change the reward systems may reward the old type of behaviour there may be thousands of people involved in some organizations so may need to change the values of many people which could take time individuals may not understand why they need to change or disagree with it. may take time to change people eg as someone retires or leaves new people with new views and a greater alignment with the desired culture can be employed may take time to train people may take time to develop new codes of conduct may take time to change the reward and recognition systems. The time taken to change culture may depend on: how strongly held values are methods used by managers to change culture the extent of the culture change the pressures for change the extent to which the need for cultural change is understood the role and effectiveness of the leader Good Evaluation must include a sense of cultural change rather than just change and will make a clear supported judgement based on analysis on whether culture change will inevitably take many years. A good response must be focused on culture change rather than any form of change For advice on how to mark and annotate the essay see pages of 14

12 04 Total for this question: 40 marks The UK Government can affect businesses in the UK in many ways such as through its economic policies and through its legislation. To what extent is the success of any business operating in the UK determined by the UK Government? Justify your answer with reference to businesses that you know. [40 marks] Relevant answers might include: The effect of Government actions can affect the success of businesses in different ways including: costs demand eg the size of a market and market growth consumer confidence profits create opportunities and threats have an impact on the success of a business. But the success of a business depends on many other factors including: the quality of leadership the ability to be flexible and adapt to change the chosen strategy and its implementation other factors in the macro and the competitive environment such as technology and competitors actions. Government actions can have a significant effect on business success but the relative importance may depend on: which Government actions which market and business the intervention by other Governments eg in Europe Good Evaluation will make a clear supported judgement based on the analysis of the extent to which UK Government actions determines the success of businesses operating in the UK. A good response must be mainly focused on Government actions rather than focusing mainly on other factors. For advice on how to mark and annotate the essay see pages of 14

13 05 Total for this question: 40 marks Several Chief Executives, including Dalton Philips at the retailer, Morrisons and Andrew McNaughton at the construction company, Balfour Beatty, have resigned or been replaced due to the poor performance of their businesses. To what extent is appointing a new leader likely to be a good way to improve business performance? Justify your answer with reference to businesses and/or leaders that you know. [40 marks] Relevant answers might include the following: A new leader can: set an example and provide a new vision for the business help establish a new reward systems and culture of the business help establish a new strategy for the business bring different experience bring in a new team to change strategy. However A new leader: may face opposition may take time to understand the business may take time to introduce a new approach. Whether bringing in a new leader is a good way to improve business performance depends on: the underlying problem the power and support the new leader has the resistance to change he or she is likely to face. Good Evaluation will make a clear supported judgement based on analysis on whether this is a good way or not of improving business performance A good response should be focused on a new leader rather simply considering the effect of leadership. The question asks whether this is a good way and not whether it is the best way. The focus of a good response should be on an analysis of the benefits and potential issues with a new leader rather than focusing on other factors/ways of improving performance. Business performance may be measured in many ways such as profits, sales, market share,sare price. For advice on how to mark and annotate the essay see pages of 14

14 Section B level descriptors Essays Level Descriptor Default Marks L5 Application/analysis Good AN and Good AP L4 Application/analysis Good AN and Reasonable AP or Good AP and Reasonable AN L3 Application/analysis Reasonable AP and Reasonable AN or Good AN and Limited AP or Good AP and Limited AN L2 Application/analysis Reasonable AP and Limited AN or Reasonable AN and Limited AP L1 Limited response Answer based primarily on knowledge For Evaluation, you should award marks using the grid below: For Evaluation, you should award marks using the grid below: Level E3 Descriptor Good evaluation Judgments that build directly on, and weigh up, the arguments made to address key issues Coherent structure with consistent and appropriate use of technical terms. There are few errors in accepted conventions of written communication. Default mark Marks E2 Reasonable evaluation This is likely to include some overall judgments are made with support, however, they do not fully address key issues and/or build on arguments supported judgments of individual arguments but no effective overall judgment of the set question Logical structure with some appropriate use of technical terms. There are occasional errors in accepted conventions of written communication. Limited evaluation. E1 Ideas are communicated with some structure evident, with occasional use of appropriate technical terms. There are some errors in accepted conventions of written communication of 14