GCE Business Studies F291: Mark Scheme for June 2017

Transcription

1 GCE Business Studies Unit F291: An Introduction to Business Advanced Subsidiary GCE Mark Scheme for June 2017 Oxford Cambridge and RSA Examinations

2 OCR (Oxford Cambridge and RSA) is a leading UK awarding body, providing a wide range of qualifications to meet the needs of candidates of all ages and abilities. OCR qualifications include AS/A Levels, Diplomas, GCSEs, Cambridge Nationals, Cambridge Technicals, Functional Skills, Key Skills, Entry Level qualifications, NVQs and vocational qualifications in areas such as IT, business, languages, teaching/training, administration and secretarial skills. It is also responsible for developing new specifications to meet national requirements and the needs of students and teachers. OCR is a not-for-profit organisation; any surplus made is invested back into the establishment to help towards the development of qualifications and support, which keep pace with the changing needs of today s society. This mark scheme is published as an aid to teachers and students, to indicate the requirements of the examination. It shows the basis on which marks were awarded by examiners. It does not indicate the details of the discussions which took place at an examiners meeting before marking commenced. All examiners are instructed that alternative correct answers and unexpected approaches in candidates scripts must be given marks that fairly reflect the relevant knowledge and skills demonstrated. Mark schemes should be read in conjunction with the published question papers and the report on the examination. OCR will not enter into any discussion or correspondence in connection with this mark scheme. OCR 2017

3 These are the annotations, (including abbreviations), including those used in RM, which are used when marking Annotation Meaning Blank Page this annotation must be used on all blank pages within an answer booklet (structured or unstructured) and on each page of an additional object where there is no candidate response. Unclear Benefit of doubt Cross Level 1 Level 2 Level 3 Level 4 Not answered question No use of text Own figure rule Repetition Noted but no credit given Too vague Tick 3

4 1 a PP is a small business. State two ways to measure the size of a business. 2 2 x 1 mark Do NOT accept market Number of shops share, share price. Number of products made/sold Value of assets (shops) (Amount of) Profit Turnover Number of employees Market capitalisation (share value) Accept value of assets but not assets. 1 b State what is meant by primary research. 1 1 mark only Accept responses along the lines of: Research/gaining data/getting information directly from the target market Gathering data/information that does not already exist 1 c State one reason why PP might use sampling. 1 1 mark only Cost/ it s cheap It saves time /PP may need the information quickly (If done properly) sampling can be quite accurate (and therefore sufficient) Make sure reference is made to sampling not market research in general 4

5 It s not necessary to research the whole market It may not be practicable to research the whole market 1 d PP might also use secondary data as part of its market research. Outline two sources of secondary data that PP could use to gather information about its customers. 4 Mark as 2 x (1 + 1) 1 mark for a source named and 1 mark for the outline. PP s own sales figures - from past months/years. Trends could be established Competitors some information could be gained from competitors (Report and Accounts, website information/publicity etc.) Data bought from specialist market research companies. This would save PP time. The internet quite a lot of data available generally on the food industry trends. Also competitors websites as above. Specialist publications/trade journals etc relevant information specifically for businesses making these sorts of products. Newspapers quality newspapers publish economic/business information regularly. 1 e Outline two ways in which PP could benefit from clear business planning. Accept any valid references to the planning process i.e. constructing a plan will entail analysing the business situation (via SWOT/PEST etc) and so may help avoid mistakes in all of the four functional areas of the business. 4 As a L2 question, context is not required. Mark as 2 x (1 + 1) 1 mark for a benefit and 1 mark for the outline. 5

6 Therefore, planning will: help ensure PP has the necessary resources e.g. employees, finance, cash-flow - to operate effectively/be successful/continue to exist/expand etc. help raise finance (for future growth) - it will be essential to show to potential investors in PP. (Allow reference to it having been used in the past to gain finance) provide a series of targets to aim for - so that everyone at PP knows what they are expected to do provide a means of reviewing progress - towards PP s objectives/essential if PP is not to drift 2 Analyse one possible effect on PP of a reduction in competition in the market for food at sporting events. There are two possible diagrams corresponding to the two routes into the question; consideration of the effect on demand or on supply. Supply Level 2. If a correct diagram is drawn with no accompanying written analysis this is still a level two answer: award 3 or 4 marks as shown below. 6 Level 3 (6-5 marks) Some analysis of the effect on PP of a reduction in competition Level 2 (4-3 marks) Understanding demonstrated of concepts involved. No context required. Level 1 (2-1 marks) Appropriate concepts identified. If drawn, supply/demand/price. 6

7 Supply. On a demand & supply diagram this reduced competition will change (reduce) the conditions of supply. (Technical terms are not necessary). This is shown by a shift of the supply curve to the left. In theory this means less food is sold by PP but at a higher price. If there is no diagram accept comments such as market price will go up (3 marks). If a comment such as and so the quantity of pies/food being sold will fall is added this will be 4 marks. And vice versa the amount of pies/food sold will go down is 3 marks. The addition of because the price has gone up makes the answer worth 4 marks. 7

8 Demand. Alternatively, the effect on PP s demand could be shown. This would be shown as a rightward shift of the demand curve since it is reasonable to assume that PP would be gaining some business from the reduction in competition. If there is no diagram accept comments such as The demand for PP s pies (etc) will go up (3 marks). If a comment such as because they will get some of the competitor s business is added this will be worth 4 marks. For level 3 award the level for simple statements, accompanying a diagram or not, of the effect on, implication of, or reaction by PP to the changes such as: In the case of supply changes: Although less is sold, the higher price could/will increase revenue/profit (5). And if costs stay the same/low/are kept down this will mean more profit (6). In the case of demand changes: More is sold at a higher price and this could/will increase revenue/profit (5). And if costs stay the same/low/are kept down this will mean more profit (6). PP now does not/may not need to advertise (promote/market) as much (5) because there is less competition to deal/compete/fight with (6) PP can/might now increase its market share (5) If it takes the right (marketing) decisions/if other competitors do not get in first (with their marketing) (6) Comments about the extent (and/or likely duration) of the price/demand change are also valid. If the price rise is small it won t affect them much are also to be credited at Level 3. 8

9 3 In 2013 PP created a new website (Line??). Analyse two reasons why it is important for PP to have an effective website. PP s website: Provides an online presence 24/7. Particularly for a small and relatively new business this could well be the way people find PP. Even if they have heard of PP it may be the first port of call to learn more. The existence of a website can add credibility to a business since most business have them the PP can be regarded as a proper business by potential customers and suppliers who may otherwise not want to deal with the company. It can publicise the business generally and the awards it has won and so (hopefully) attract new customers and generate more revenue and profit. 10 Two reasons analysed award 9/10 marks. One reason analysed award 7/8 marks. Two reasons explained award 5/6 marks. One reason explained award 3/4 marks. Level 3 (10-7 marks) Some analysis of the importance to PP of an effective website. Level 2 (6-3 marks) Some understanding of the benefits of a website to a business. No context required. Level 1 (2-1 marks) Knowledge of what a business website can be used for. Offers the ability for potential customers to look at the product range and PP s company philosophy (accept the way they run the business. It offers the chance to make an impression on PP s own terms. It is cost effective advertising. Information about local sourcing etc may be what sways potential customers into buying or at least making an initial contact which PP can follow up and (hopefully) build on. 9

10 Gathers information via cookies (the term does not have to be used and detailed knowledge is not required) on those who visit. E.g. IP address, geographical location, browser type, referral source, length of visit and number of page views. This will help build up customer profiles and allow more effective marketing in order to sell more pies etc. Advertises job opportunities for the company. It is a very cost effective way of making vacancies known. Cost control could well be important for a small business such as PP. 4 Discuss how a change in social influences might affect PP. Trends in leisure activities. More people attending sporting events. E.g. Rugby World Cup 2015/Euro 2016 may have stimulated interest in attending sports games at stadiums across the country. (Also might pies etc. become popular at other sporting events?) If this occurs then it is likely that PP may sell more pies if they are able to capitalise on the increase. There may be implications for installing more capital equipment (how best to raise funds for this as a private limited company?) and/or employing more staff (training implications/costs). May be a change in consumer attitudes/tastes towards the pies or away from them. Greater awareness of what we are eating. On one hand pies could be seen as unhealthy but on 14 Evaluation could be achieved by a consideration of which factor(s) are likely to be the most significant and/or a consideration of the short term versus the long term One L2 annotation = 4 or 5 marks 3. Two L2 annotations = 5 or 6 marks 4. One L3 annotation = 7 or 8 marks Level 4 (14-11 marks) Some evaluation of how a change in social influence(s) might affect PP. Level 3 (10-7 marks) Some analysis of how a change in social influence(s) might affect PP. Level 2 (6-4 marks) Some understanding of social influence(s) No context required. Level 1 (3-1) Identification of social influence(s) on a business. 10

11 the other because these are (product) positioned and 5. Two L3 marketed differently to other pies they may be seen as annotations = 9 or 10 healthy and nutritious. Sales could rise or fall. If sales fall marks what action would PP need to take? (Detailed knowledge of 6. One L4 annotation marketing/operations management not necessary). = 11 or 12 marks 7. Two L4 Customers may want new tastes/flavours. PP already make annotations = 13 or 14 pies that are different to the standard meat and veg but marks consumers may be adventurous and want even more variety. Case makes reference to new products constantly being developed. There may be a trend towards the butternut squash and spicy vegetable type of pies that they sell. PP would then have to undertake MR/test market/ source ingredients (On a consistent basis) etc. Can existing suppliers supply? The change in tastes may come from a change in income. Would more pies be bought more regularly if income rose? Are pies a normal or an inferior good? (The terms do not have to be used.) If income falls will less people attend sporting fixtures? (And so less PP pies may be sold). Even if they continue to attend will they cut out a pie which may be seen as an unnecessary purchase? Or is it traditional to have a pie at a game? Vice versa. PP may have to change pricing policy. Effect on revenue/profit margins/profits. Also, what about sales of their other products such as cakes? 5 Evaluate how the continued success of PP might affect its stakeholders. Allow references to PP s current and future success. Employees want job security, pay rises, training to One L2 annotation = 5 or 6 marks 9. Two L2 annotations = 7 or 8 marks 10. One L3 annotation Level 4 (18-14 marks) Some evaluation e.g. supported judgment concerning the effect(s) of PP s success on its stakeholder(s). Complex ideas have been expressed 11

12 increase skills, and want the best conditions for themselves. = 9, 10 or 11 marks If there are increases in the number of sales of pies (etc.) this 11. Two L3 will provide income for PP to be able to provide these. annotations = 11, 12 or 13 However, to what extent might PP opt for spending funds on marks expansion/upgrading equipment/product development ( new 12. One L4 annotation = 14, 15 or 16 marks products are being developed all the time ) rather than Two L4 annotations = 16, spending it on employees? Employees may feel proud that 17 or 18 marks their business is successful this could motivate them and make them happier in their work. Customers More revenue/profit means that new products can be developed and existing ones improved upon - new products are being developed all the time. Consumers can benefit from a wider selection of food with the PP values/taste/quality - which in turn attracts more visitors. A virtuous circle might develop (the term does not have to be used). Suppliers allow references to food ingredients and baking (etc.) equipment. Accept answers along the lines that a more successful PP will mean more orders and that success means greater security (of revenue/profit/cash flow for them). PP are keen to source locally but this may not always be possible. Capital equipment is going to be a one off or at least infrequent purchase but references to suppliers of it would still be a valid response. Shareholders - Could gain higher dividends (do not accept references to rises in PP s share price as this is a private company) if profits rise. However, if profit is retained for expansion this may not be the case. Candidates might well reason that Joanne is likely to be the majority shareholder and might well adopt this attitude; she would (obviously) therefore not mind this course of action being taken (as she clearly and fluently using a style of writing appropriate to the complex subject matter. Sentences and paragraphs, consistently relevant, have been well structured, using appropriate technical terminology. There may be few, if any, errors of spelling, punctuation and grammar. Level 3 (13-9 marks) Some analysis of the effect(s) of PP s success on its stakeholder(s). Relatively straight forward ideas have been expressed with some clarity and fluency. Arguments are generally relevant, though may stray from the point of the question. There will be some errors of spelling, punctuation and grammar, but these are unlikely to be intrusive or obscure meaning. Level 2 (8-5 marks) Some understanding of the issues(s) concerning business success/stakeholders. No context required. There are likely to be some errors of spelling, punctuation and grammar of which some may be noticeable and intrusive. Level 1 (4-1 marks) Knowledge recalled about stakeholders. 12

13 had decided on it!) The local community - jobs may be created at PP and There will be some errors of spelling, punctuation and grammar which will be local suppliers will benefit creating a local multiplier effect noticeable and intrusive. Writing may on income, spending and jobs. How extensive will this be also lack legibility. given that PP is a small business? Presumably the government will be happy, as it will get more tax revenue (Corporation tax, VAT on sales of products/national insurance) from PP and income tax and National insurance from employees. This can help with the government s objective of abolishing the budget deficit or/and can be used for public expenditure such as health/education/roads. Competitors if PP is successful it might well be at the expense of rivals (unless the whole market is growing) and so rivals may lose out on sales/revenue/profit unless they can successfully fight back. However, how big an effect is this likely to be? PP might increase sales by a large percentage but if the sales figure is low to start with this may not mean a significant impact on rivals especially if they are large well established firms. 13

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