PART A: 1a) AO1 = 1 A (1) b) AO1 = 1 Unit 3: Building a Business (GCSE Business Studies) Sample Past Paper 1 (Mark Scheme) Common/consistent procedures and systems in place Clarity for employees on what to do Managers focusing on higher-level decisions c) AO1 = 1, AO3 = 2 One mark for identifying the reason and a further two for the development. For 2 development marks further points will be made in relation to the reason. This may include an example for one of the marks. Possible reasons include: Shows what jobs they are supposed to do (clarity) Shows how they relate to the wider organisation Shows opportunities for promotion in the company Shows chain of command Shows span of control Shows who is in charge of them (line manager) / who they are in charge of (sub-ordinates) d) AO1 = 1, AO2 = 1, AO3 = 1 For 3 marks, there will be one disadvantage identified and two clearly identifiable strands of explanation between the statements. These may contain connective words such as, this leads to because etc. development will clearly show why borrowing from a bank can be a problem. Possible disadvantages include: Communication issues: as many layers of hierarchy to pass through Resistance to change: more people in the chain of command to resist change Demoralised workers: feel alienated / peripheral to the business if at the bottom Loss of overall business focus: levels of hierarchy just focusing on their own affairs
2a) AO1 = 1 C (1) bi) A01 = 1, A02 = 1, A03 = 1 For 3 marks, the description will make three relevant points associated with branding which may include a definition and/or an appropriate example which is more than simply giving the name of the business. The points will clearly show the importance of the brand to the success of a business. Two marks are awarded for the points and 1 mark is awarded for the use of context High research & development costs meaning cash outflow is high Low sales (and cash inflow) due to customers being unaware of the product Low sales (and cash inflow) due to lack of repeat purchase / customer loyalty in the early stages of the PLC bii) AO1 = 2 1 mark for each appropriate response Methods to increase revenue e.g. better products, better research Destocking / holding less stock Chase up debtors / reduce time given to toy shops in terms of trade credit Debt factoring Overdraft / loan Longer-term solutions e.g. issue shares, sell assets Accept any appropriate response that would improve cash flow ci) AO1 = 1 1 mark for each appropriate response Employing / paying legal experts Having to give refunds to customers Ensuring product safety (quality control costs) Fines if consumer protection laws are not met cii) AO1 = 1, AO2 = 1, AO3 = 1 For 3 marks, there will be three clearly identifiable strands of explanation between the statements. These may contain connective words such as, this leads to because etc. development will clearly show how consistently meeting / exceding the laws will help a business improve its long-term revenue Possible answers include increased revenue due to: Reputation / PR advantages of taking care of customers Customers loyalty & repeat purchase
3. a) AO1 = 1 C (1) bi) AO1 = 2 1 mark for each appropriate response Interest on loans to pay for stock Storage costs e.g. rent, cost of warehouse, insurance Stock management technology Staff costs e.g. warehouse managers, security Wastage costs e.g. if components get damaged in storage bii) AO1 = 1, AO3 = 2 For 3 marks, the description will make three relevant points associated with the downsides of JIT to business which may include a definition and/or an appropriate example which is more than simply giving the name of a business. The points will clearly show how JIT can be a drawback for a business. Turning orders away if there is not enough components to make a computer Have to stop production if stock runs out / is not delivered on time (i.e. relies on reliable suppliers and transport network) Lose out on bulk buying discounts as orders are smaller ci) AO1 = 1 1 mark for each appropriate response Piece rate Performance related pay e.g. bonuses, Suggested rewards must have some reward for increased productivity (i.e. results based) cii) AO1 = 1, AO2 = 1., AO3 = 1 For 3 marks, the explanation will show how the reward scheme identified in (c) (i) would cause productivity to increase. Within the answer there will be at least three clearly identifiable strands of explanation. These may contain connective words such as, this leads to because etc PRP/Bonus: higher pay if targets met therefore incentive to improve productivity Piece-rate: having higher productivity increases total production and therefore pay
4. a) AO1 = 1, A (1) b) AO1 = 2 c) AO1 = 1, AO2 = 1, AO3 = 1 For 3 marks, the explanation will show why the national minimum wage meant Dyson would relocate abroad. Within the answer there will be one mark for identifying the way and at least two clearly identifiable strands of explanation which are in context. Note that context goes beyond simply mentioning the name Dyson. These strands may contain connective words such as, this leads to because etc Need to pay workers higher wages NMW is a legal minimum for workers to be paid Wages are an example of a variable costs Increased variable costs and increased total costs as a result Answers need to cover both the idea of NMW being costly for manufacturers such as Dyson and that costs would be lower in Asia to obtain full marks d) AO2 = 2, AO3 = 4 The aim here is for candidates to make a judgement as to whether relocating abroad or increasing international trade is best at improving Dyson s profits. There is no right answer and the candidate can argue that either method is best, depending on the circumstances. Candidates might consider the following possible ideas as part of their answer: Relocation abroad: Cheaper labour costs abroad Cheaper land costs abroad Possibility of less strict regulations reducing costs More competitive as a result International trade: Increased sales revenue as more markets to sell to Increased incomes in many countries (e.g. China, India, Japan) To be evaluative candidates may suggest that in the long-term relocation to Asia may be less effective as wage costs rise (although Dyson could relocate elsewhere) or that overtime more market may become available as other developing countries grow (e.g. African market?) or perhaps there will be more competitors as countries develop their manufacturing industries.
PART B: 5ai) AO1 = 2 2 marks for an accurate definition. If an accurate definition is not given award 1 mark or 0 marks depending on quality or getting part of the definition correct. Elaboration of the answer to indicate what this means raises the answer to 2 marks. This could take the form of an additional clarifying sentence or an example. A customer getting an experience of a high standard when dealing with a business. The customers experience meets or exceeds customer needs and expectations. 5aii) AO1 = 1, AO2 = 1, AO3 = 1 For 3 marks, the explanation will show how high quality customer service by CGH Ltd will benefit it. There will be one mark for identifying the benefit and at least two clearly identifiable strands of explanation in context. These may contain connective words such as, this leads to because etc Repeat purchase Brand image & reputation / PR benefits Less costs to put things right b) AO1 = 1, AO2 = 1, AO3 = 1 For 3 marks, the description will make three relevant points associated with how CGH Ltd can care for the well-being off its staff, i.e. mark for identification and two points (one of which is in the context of CGH Ltd)
c) AO2 = 4, AO3 = 4 This question has a 2 x 4 mark split. There is one mark for identifying a benefit. The remaining 3 marks are for the explanation which will show how the benefit affects CGH Ltd. Within the answer there will be at least three clearly identifiable strands of explanation and reference to context. These may contain connective words such as, this leads to because etc Do not reward twice if identical explanations are given for each reason. 6. ai) AO1 = 1, point correctly labelled on break-even chart (where TR = TC) aii) AO1 = 1, 90 guests aiii) AO1 = 1, 9,000 b) AO2 = 2, AO3 = 1 For 3 marks, the explanation will show how increased price will affect the break-even chart. The candidate must identify that the break-even point will be lower and give some explanation of this in the context of CGH Ltd Higher price means more revenue per unit Steeper TR line Lower break-even point as can cover costs with less units sold c) AO2 = 3, AO3 = 5 The aim here is for candidates to consider two possible benefits to CGH Ltd from using break-even analysis. The question asks the candidate to assess, so the candidate must develop some evidence of balance within the answer. This could take the form of examining the disadvantages of using break-even or through stating which benefit is the most important Possible benefits: Used to gauge past performance and can form a part of a business plan
Possible downsides: Assumes all rooms are sold Assumes goods sold at same price. If more than one price need to use an average price (e.g. hotel rooms at different prices_ Break-even is a forecast and is only as accurate as the forecasted figures themselves. Does not take account of unexpected changes e.g. changes in costs, more competition in the market It is likely that evaluation will be demonstrated by considering how important break-even is for a business such as CGH Ltd as a hotel. Outstanding candidates may link the economic uncertainty in the UK with difficulty making any sort of forecast accurately or the use of break-even if an average price is used. No mark 0 Non-rewardable material. No mark is to be awarded if the candidate just re-states the question. Level 1 1-2 Reference to one benefit is given with some weak development or two benefits are given with limited or no development of either. If there is just a simple judgement/value attached to one of the benefits, 1 mark should be awarded. If this judgement/point has some simple support, the response should be placed at the top of this level. The quality of written communication will be poor with frequent spelling, punctuation, style and grammar errors. Level 2 3-5 Reference to two benefits are given, with some development of at least one at the lower end. A judgement/point is given at the lower end of the level with some development/support, which includes at least one reason/cause/consequence etc. At the middle of the level this analysis will be relevant and linked to the judgement/point made. Answers at the middle of this level will tend to assume that the judgement/point made will work (i.e. the benefit will have no downside). At the top of the level there will be some evidence of balance to the point/judgement in the form of advantage/disadvantage, cost/benefit, pro/con or some counterbalancing factor. At the top of the level, candidates will attach some value/importance to one of the benefits. There will be a good level of quality of written communication with few mistakes in spelling, punctuation and grammar. The quality of the language used will be appropriate for the subject matter.
Level 3 6-8 Reference to two benefits is given with development of each. A judgement/point is given with some development which includes at least two reasons/causes/consequences etc. and the use of the it depends rule. Some balance will be given in the form of advantage/disadvantage, pros/cons, costs/benefits. The candidate will be able to show some appreciation that the benefit is not inevitable or automatic. At this level, candidates will attach some value/importance to both of the benefits and may make a judgement about which of the benefits is more important/valuable to CGH Ltd. The quality of written communication will be of a high standard with few, if any, errors in spelling, punctuation and grammar. The style of writing and the structure of the response will be appropriate and of a high standard and there will be clear evidence that the candidate has structured their answer clearly and coherently, using appropriate terminology. PART C: 7. AO1 = 2 2 marks for an accurate definition. If an accurate definition is not given award 1 mark or 0 marks depending on quality or getting part of the definition correct. Elaboration of the answer to indicate what this means raises the answer to 2 marks. This could take the form of an additional clarifying sentence or an example. The process of gaining information about customers, competitors and market trends through collecting primary and secondary data 8. AO1 = 2 1 mark for each appropriate response. Primary e.g..surveys, focus groups Secondary e.g. market research companies, websites, Government statistics Candidates must give examples of market research not just types (i.e. primary & secondary) These must be relevant and appropriate to B&R 9. AO2 = 3, AO3 = 3 The aim here is for candidates to consider two possible benefits to B&R from conducting market research. The question asks the candidate to discuss, so the candidate must develop some evidence of balance within their answer. This could take the form of considering the drawbacks and costs of and whether or not it outweighs the benefits. Equally the route to evaluation could be achieved by considering which benefit will be more valuable to B&R. Possible benefits:
Possible downsides Sampling issues Accuracy of market research Cost of conducting market research Time spent doing research 10. AO2 = 4, AO3 =6 The aim here is for candidates to make a judgement as to the importance of quality to a business such as B&R Ltd. The evaluative skill will be present through candidates considering which benefit of clear communication identified is most significant to the business. Possible benefits of assuring quality are: Ability to set higher prices / value added arguments Higher sales & profits Better reputation / promotional benefits Repeat purchase & customer loyalty The discursive/evaluative element could come from explaining which benefit of high quality is more important. Other routes to evaluation could come through considering drawbacks of improved quality (or the methods to ensure it) or considering the importance of quality compared to factors e.g. marketing, design of the product, state of the economy
Quality Quality