Business 9609/12 February/March 2025: question paper and mark scheme

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1(a) Define the term intrapreneur. 2 Indicative content Responses may include: AO1 Knowledge and understanding Clear understanding • employees in a business who think and act like entrepreneurs/take risks/innovative/creative/challenge existing practices/take responsibility for new projects which improve business performance (2) Partial understanding • employees who have new ideas (1) Accept all valid responses 1(b) Explain one disadvantage of being a small business. 3 Indicative content Responses may include: AO1 Knowledge and understanding – 1 mark for identification of ONE disadvantage of being a small business. – put • uncompetitive • lack power in the market/low sales • lack experience • difficult to raise finance • financial risk is high • work long hours • income instability • uncertainty • lack of guidance • no economies of scale AO2 Application – 2 marks for developed application/explanation of one disadvantage – 1 mark for limited application/explanation of one disadvantage • economies of scale not possible – higher production costs – so prices may be high • suppliers and customers may prefer larger businesses which they trust • more established businesses have greater understanding of the market • lenders/investors may be unwilling to supply finance due to higher risk of failure • forced to take out loan – especially at start-up • limited resources especially in early stages • unreliable revenue streams – fluctuations – reliant on savings • uncertainty of survival – effect of external interruptions • lack of mentor or advice Accept all valid responses

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2(a) Define the term psychographic market segmentation. 2 Indicative content Responses may include: AO1 Knowledge and understanding. Clear understanding • a form of market segmentation that divides consumers into sub-groups based on shared psychographic criteria such as lifestyles / personalities / values / social class / attitudes beliefs / interests / opinions / spending habits (2) Partial understanding • a research method/way of dividing consumers into sub-groups (1) Accept all valid responses 2(b) Explain one factor that might influence the demand for a product. 3 Indicative content Responses may include: AO1 Knowledge and understanding – 1 mark for identification of one factor that might influence the demand for a product • income of customers • price of competitors’ products • price of complementary products • marketing activities • change in customers’ tastes • the price of the product • the particular features of the product AO2 Application – 2 marks for developed application/explanation of one factor – 1 mark for limited application/explanation of one factor • income affects how much of a product the customer is willing and able to buy • if competitors’ products are cheaper the customers are more likely to buy them and vice versa • complementary products are bought together so an increase in price of one will reduce demand for the other and vice versa • effective marketing makes customers aware of a product and can increase demand • fashions and customer tastes can change which may increase or decrease demand for a product • if the price of the product becomes competitive the demand may increase • the product is given a special feature Accept all valid responses

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3(a) Define the term indirect costs. 2 Indicative content Responses may include: AO1 Knowledge and understanding. Clear understanding • Costs that cannot be identified with a unit of production or allocated accurately to a cost centr e / business expenses not related to making of products or delivering services / business expenses necessary for overall operation of a business / overhead expenses such as rent, utilities, depreciation, salaries (2) Partial understanding • An overhead cost (1) Accept all valid responses 3(b) Explain one benefit to a business of using budgets. 3 Indicative content Responses may include: AO1 Knowledge and understanding – 1 mark for identifying one benefit to a business of using budgets • prevents over-spending • assists in the control and appropriate allocation of resources • motivates employees • used to measure, monitor and review business/departmental/individual performance • helps to achieve objectives • improves quality of decisions • identifies problems before they occur • assists in planning for the future • easy to compare present with previous performance AO2 Application – 2 marks for developed application/explanation of one benefit to a business of using budgets – 1 mark for limited application/explanation of one benefit • each manager knows what they have available to use/spend within their department • employees are given responsibility to keep within a budget • can be used as part of an appraisal process for objectives and targets set • progress against budget can measure effectiveness of individual employees or departments • allows business to review/revise how it has performed in controlling/meeting its budgets • extra resources can be directed where they are most needed to improve business performance/efficiency • builds in financial accountability • future need to raise finance anticipated – future cash flow difficulties Accept all valid responses

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4 Analyse one impact on employees of trade union involvement in the workplace. 5 Indicative content Responses may include: AO1 Knowledge and understanding – 1 mark for identifying ONE impact on employees of trade union involvement in the workplace • financial benefits • job security • participation in decision-making – collective bargaining • improved working conditions • motivation • may put employees into conflict situations with employers AO2 Application – 2 marks for developed application/explanation of one impact – 1 mark for limited application/explanation of one impact • maximising wages for every member by collective bargaining • union represents/supports employees threatened by redundancy • unions can encourage employers to include employees in job enrichment, redesign, etc • union negotiates with employers regarding health and safety needs • reference to Maslow/Herzberg • trade unions may dispute with employers AO3 Analysis – 2 marks for developed analysis of one impact – 1 mark for limited analysis of one impact • more power with trade unions than individual attempts so members can bargain for higher wages • unions will act on behalf of employees and support them during issues relating to job security 4 • employees will be motivated by more involvement in their role so enjoy their work more • better working conditions will protect employees from injury when they are at work • helps achieve Maslow’s physiological needs and Herzberg’s hygiene factors • employers may victimise trade union representatives Accept all valid responses

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5(a) Analyse two limitations to a business of capital intensive operations. 8 There are 8 marks in total for q 5(a) – 4 marks for each of the limitations analysed. 1 mark for 1 mark for 2 marks for Indicative content Responses may include: AO1 Knowledge and understanding – 1 mark for each limitation identified • expensive to set up • higher breakeven output • machinery may be designed for mass production only • can be inflexible • demotivates employees • skilled employees are needed to operate capital intensive operations AO2 Application – 1 mark for application of each limitation • new machinery must be purchased • fixed costs can be higher 5(a) • large output of standardised product • may be difficult to adjust machines to produce different products • redundancies / less interest in work / stressful training / adaptation to new working style AO3 Analysis – 2 marks for developed analysis of each limitation – 1 mark for limited analysis of each limitation • in the short-term new machinery can be more expensive than employing workers to do the same job. The business may not be able to afford this without taking out a loan which is expensive to repay • more products will have to be made to reach the breakeven output and make a profit. This will increase variable costs and the supplier may not be able to supply the necessary raw materials/components • demand may not be high enough to require capital intensive production so a business might operate under capacity therefore wasting resources • difficult to customise products to individual customer needs/changes in customer demand. Niche market customers may be lost to competitors • less need for employees/less labour intensive/jobs of retained employees may be boring or require extra training. HR problems may increase and costs of changes to workforce may be too expensive to make a change to capital intensive operations Accept all valid responses 5(b) ‘A soft drinks manufacturer must improve its sustainability in order to compete successfully.’ 12 Evaluate this view. 2 marks for 2 marks for 2 marks for 6 marks for Indicative content Responses may include: AO1 Knowledge and understanding – 2 marks for developed knowledge and understanding – 1 mark for limited knowledge and understanding • manufacturer – secondary production, raw materials/components to finished product • sustainability – prevent waste – use the minimum of non-renewable resources so levels of production are sustained in future • compete successfully 5(b) AO2 Application/context – 2 marks for developed application/context – 1 mark for limited application/context • soft drinks – non-alcoholic e.g. fruit juices, cordials, soda, lemonade • packaging – bottles (glass, plastic), cartons, recycle, refill AO3 Analysis – 2 marks for developed analysis 1 mark for limited analysis Importance/benefits of sustainability • reduces negative impact of operations on the environment – part of CSR objective • climate change pressure groups and bad media reports are reduced – these can disrupt production and/or reputation • customers increasingly interested in production methods – can influence purchasing decisions /expand customer base • may attract investors, employees and consumers who share values relating to sustainability • costs may be reduced through recycling and reusing resources or using fewer resources/less waste • governments may give support/grants to businesses to help improve sustainability Implications of sustainability – • costs of changing supply chain and/or production methods • reconsider what is produced e.g. low or no sugar soft drinks • find ways to be sustainable e.g. recyclable packaging, alternative energy • will involve change EVAL regarding HRM – planning, training 5(b) AO4 Evaluation – up to 6 marks for Developed/Supported judgement in context 6 marks Developed/Reasonable evaluative comments in context 5 marks Developed/Supported judgement without context 4 marks Developed/Reasonable evaluative comments without context 3 marks Limited supported judgement 2 marks An attempt to balance the arguments/Weak attempt at evaluative comments 1 mark A judgement/decision is made on whether a soft drinks manufacturer must improve its sustainability if it is to compete successfully. These judgements/decisions may be made at any point in the essay but will normally be made in a concluding section. • how sustainable are the operations of the business now/is it necessary/possible to improve further? • how competitive is the market/is there a threat from other businesses being more sustainable? • what is the attitude of customers to sustainability/will it make any difference to their buying habits? • how expensive will it be to adjust operations to become more sustainable/is it worth the cost? • how important is improving sustainability compared to the marketing mix, product development, quality of employees, external environment, etc? Accept all valid responses

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6(a) Analyse two benefits to a business of using online recruitment methods. 8 There are 8 marks in total for q 5(a) – 4 marks for each of the benefits analysed. 1 mark for 1 mark for 2 marks for Indicative content Responses may include: AO1 Knowledge and understanding – 1 mark for each benefit identified • cost effective • immediate/flexible • bigger audience • easy • more dynamic • accessible/targeted AO2 Application – 1 mark for application of each BENEFIT • pay as much or little as wanted • edit/update/remove advert in real time 6(a) • advertisements can be global • process is clear, easy to understand and user friendly • creative e.g. video to show business and role • connect via internet – computer/laptop/tablet/phone • use social media e.g. LinkedIn, Facebook AO3 Analysis – 2 marks for developed analysis of each benefit – 1 mark for limited analysis of each benefit • managed properly can save money/avoids the cost of using other methods • interact with/update applicants as soon as changes to vacancy occur – speeds up recruitment process • online advertisements can be seen by potential applicants with internet connection globally • employers and potential applicants can contact each other more quickly and easily • makes business more attractive to applicants and might be more likely to apply • younger target market uses this method of research and communication more than others • one person who sees the advert can easily share with colleagues/friends/family Accept all valid responses 6(b) ‘Improving employee morale and welfare is the most important role of human resource management (HRM) in an 12 airline business.’ Evaluate this view. 2 marks for 2 marks for 2 marks for 6 marks for Indicative content Responses may include: AO1 Knowledge and understanding – 2 marks for developed knowledge and understanding – 1 mark for limited knowledge and understanding • employee morale – satisfaction of employees within the workplace • employee welfare – facilities that are essential for the well-being of the employees • roles of HRM – workforce planning, recruitment, training, motivation, redundancy, dismissal 6(b) AO2 Application/Context – 2 marks for developed application/context – 1 mark for limited application/context • likely causes of reduced morale and welfare – flights at anti-social hours, long periods away from home, standing for long periods of time, difficulty in moving along aisles, aggressive passengers, • airline business – training cabin staff in health and safety actions, customer service, recruiting experienced pilots, planning workforce for changes in seasonal demand (holiday periods) AO3 Analysis – 2 marks for developed application/context – 1 mark for limited application/context • importance/benefits of improving morale and welfare – employees will have safety and security needs met, may be less likely to leave the business, labour turnover is reduced, cost of recruitment is reduced, motivation might be increased, passengers will receive good customer service and will return, improve reputation of airline brand, could increase prices so more profit • drawbacks/limitations of improving morale and welfare – cost of provision of facilities for employees may be expensive and difficult e.g. space to relax during a long flight, nature of the work means long periods standing, customers may reduce morale due to their behaviour/attitude towards staff AO4 Evaluation – up to 6 marks for Developed/Supported judgement in context 6 marks Developed/Reasonable evaluative comments in context 5 marks Developed/Supported judgement without context 4 marks Developed/Reasonable evaluative comments without context 3 marks Limited supported judgement 2 marks An attempt to balance the arguments/Weak attempt at evaluative comments 1 mark 6(b) A judgement/decision may be made at any point in the essay as to the importance of employee morale and welfare but will normally be made in a final evaluation section Consider whether other roles of HRM are important – • workforce planning – vital to anticipate future staff requirements in dynamic airline market, can seasonal contracts be used, how important is using employees as resources in meeting the objectives of the business? • recruitment – very important to have the best employees available for ground crew, flight crew and pilots – different skills and experience necessary and must follow correct/legal procedures • training – must offer appropriate type of training – cabin staff need different skills to pilots – safety vital in airline industry • motivation – financial/non-financial methods, prevent/reduce labour turnover and associated benefits/costs • redundancy – changing demand for flights e.g. seasonal fluctuations – reduce need for some employees, need to save cost • dismissal – safety failures and poor customer service ruin the airline’s reputation and employees will have to leave • what is the current employee morale and welfare like/can it be improved further? • do employees feel that the business should focus on their morale and welfare or are other things more important to them? • morale and welfare probably meet safety and security needs but how important is achieving self -actualisation to workers? • is the importance of improving morale and welfare dependant on the type of employee e .g. pilots, cabin staff? Accept all valid responses