Business 9609/11 May/June 2024: question paper and mark scheme

Mark scheme

1(a) Define the term outsourcing. 2 Indicative content Responses may include: AO1 Knowledge and understanding Clear understanding 2 marks when a business uses another business to carry out some of its activities Partial understanding 1 mark the use by a business of another organisation Accept all valid responses. 1(b) Explain one purpose of JIC (Just in Case) inventory management. 3 Indicative content Responses may include: AO1 Knowledge and understanding 1 mark for identifying one purpose of JIC inventory management method that holds excess inventory (buffer stock) so that a business always has inventory when required. never runs out of inventory can meet any increase in customer demand (spike) can respond to supply delays/interruptions. AO2 Application 2 marks for a developed application/explanation of one purpose of JIC 1 mark for a limited application/explanation of one purpose of JIC Extra inventory is available in case there are any problems with supply or a spike in demand The business can continue to produce until the next delivery is received There will be no delay in meeting the demands of customers If demand increases unexpectedly, there is enough inventory to increase supply until the next delivery of inventory Accept all valid responses.

Mark scheme

2(a) Define the term salary. 2 Indicative content Responses may include: AO1 Knowledge and understanding Clear understanding 2 marks an amount of income paid to an employee/annual/over a set period/ often on a monthly basis(2) Partial understanding 1 mark money paid to an employee Accept all valid responses. 2(b) Explain one impact on a business of training its employees. 3 Indicative content Responses may include: AO1 Knowledge and understanding 1 mark for identifying ONE impact on a business of training its employees improves employee performance/efficiency/flexibility improves employee morale and productivity business develops the right workforce business gains good reputation lower labour turnover costs money and time trained employees may leave can disrupt work while training takes place puts extra pressure on managers as they do the work of those being trained 2(b) AO2 Application 2 marks for developed explanation of one impact on a business of training its employees 1 mark for limited explanation of one impact on a business of training its employees new skills and knowledge improve the competitive position of the business employees are loyal, stay with the business and produce more and better products training is a method of motivation trained workforce will help to achieve objectives business will find it easier to retain and recruit employees due to respected reputation resources used in training could be used elsewhere in the business business risks spending resources training employees who then leave taking skills with them work stops when employees receive training managers have to take Accept all valid responses.

Mark scheme

3(a) Define the term industrial marketing. 2 Indicative content Responses may include: AO1 Knowledge and understanding Clear understanding 2 marks promoting/selling/marketing goods and services to other business’s rather than to individual customers (B2B) Partial understanding 1 mark marketing to other industries Accept all valid responses. 3(b) Explain one implication to a business of market growth. 3 Indicative content Responses may include: AO1 Knowledge and understanding 1 mark for identifying one implication to a business of market growth more potential customers for the business more potential sales for the business more competitors in the market production process may need to change may need to take on more employees may need to invest more in machines may need to change suppliers may experience economies/diseconomies of scale 3(b) AO2 Application 2 marks for developed explanation of one implication to a business of market growth 1 mark for limited explanation of one implication to a business of market growth more demand from new customers to the market a business can gain more sales revenue without its market share changing may attract other competitors which see the same opportunity may affect the type of pricing and promotion needed if new customers or locations are involved recruitment and selection of additional employees becomes necessary more capital investment to provide more machines production costs fall/rise as levels of output increase Accept all valid responses.

Mark scheme

4 Analyse one impact on the workforce of effective communication of business objectives. 5 Indicative content Responses may include: AO1 Knowledge and understanding 1 mark for identifying one impact on the workforce of effective communication of business objectives employees now know what they are doing and why employees feel more involved employees are more confident at work knowing the objectives can be very motivating business sections/departments work better together – more team working. AO2 Application 2 marks for a developed application of one impact on the workforce of effective communication of business objectives 1 mark for limited application of one impact on the workforce of effective communication of business objectives sets workers a target, so they have something to aim for employees now better understand their roles objectives are turned into individual targets employees given a sense of direction 4 AO3 Analysis 2 marks for developed analysis of one impact on the workforce of effective communication of business objectives 1 mark for limited analysis of one impact on the workforce of effective communication of business objectives communication of objectives throughout the organisation helps to ensure everyone is working towards the same aim if employees feel that the objectives are realistic, they are more likely to be committed to achieving them, motivated if employees are not aware of the objectives, they cannot work towards them and the business will not achieve them if a target is forced on an employee or they do not agree with it, they may not try to achieve it or may leave the business if employees are aware of a target they can be reviewed and rewarded for achieving it e.g. with promotion Accept all valid responses.

Mark scheme

5(a) Analyse two limitations of using the number of employees to measure the size of a business. 8 There are 8 marks in total for Q5(a) – 4 marks for each of the two limitations of sampling for a business: 1 mark for 1 mark for 2 marks for Indicative content Responses may include: AO1 Knowledge and understanding 1 mark for identifying one limitation of using the number of employees to measure the size of a business there are many ways to measure the size of a business and most are more reliable than using the number of employees business that relies on machines rather than people will be undervalued–fails to take account of capital investment does not take account of the assets of a business does not take account of the cash flow of a business no reference to revenue, output, sales, profit workers can be full time or part time workers can be outsourced workers can be multi-skilled so fewer needed 5(a) AO2 Application 1 mark for application/explanation of one limitation of using the number of employees to measure the size of a business Large business may have more employees than a small business – a franchise vs a local shop large capital intensive business may have few employees – car production done by robots Large IT/internet businesses often have few employees Small business may have many employees – labour intensive clothing production factory AO3 Analysis 2 marks for developed analysis of one limitation of using the number of employees to measure the size of a business L2 1 mark for limited analysis of one limitation of using the number of employees to measure the size of a business L1 number of employees can be misleading depending on whether business is labour or capital intensive one measure used on its own can give a misleading measurement of size number of employees may be less important than other measures such as market share, turnover Accept all valid responses. 5(b) Evaluate whether small retail businesses have an important role in the economy. 12 There are 12 marks for Q5(b): 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 L2 1 mark for limited knowledge L1 small retail business likely to be local small retail businesses buy from producers and sell to customers provide job opportunities stimulate income through trade compete with and support larger businesses small retail business trade leads to tax revenues 5(b) AO2 Application 2 marks for developed application L2 1 mark for limited application L1 retailers buy goods and sell them to customers on a small scale–tertiary sector examples of small retail businesses e.g. local shop, convenience store, family business selling food items/clothes/flowers names of small retailers e.g. Walmart supermarkets, 7UP stores, BATA shoe stores serve local consumers and niche products/markets AO3 Analysis 2 marks for developed analysis L2 1 mark for limited analysis L1 job creation in small villages and towns – increase standards of living small business numbers may be high, but people employed may be low so limited effect on unemployment sole traders/family businesses are common type of small business majority of businesses in many countries are small but play a significant economic role stimulate local and national economy – government collect taxes from small retailers and their customers provide greater choice to consumers with niche products/innovative ideas large businesses tend to sell many products which are standardised, so consumer choice is limited niche products often important to small businesses and communities e.g. wedding dresses and cakes increase competitiveness in economy as alternative to large businesses small businesses can grow into large businesses growth potential for small business may be high which promotes economic growth many small businesses sell products to large businesses so help economy to develop production and trade retailers often demonstrate strong entrepreneurial skills 5(b) AO4 Evaluation 6 marks for evaluation Developed/Supported judgement in context L3 6 marks Developed/Reasonable evaluative comments in context L3 5 marks Developed/Supported judgement without context L2 4 marks Developed/Reasonable evaluative comments without context L2 3 marks Limited supported judgement L1 2 marks An attempt to balance the arguments/Weak attempt at evaluative comments L1 1 mark A judgement/conclusion is made as to whether small retail businesses have an important role in the economy. These judgements/conclusions may be made at any point in an essay, not only in a concluding section. Importance of small business may depend on what the retailer is selling. Personalised services – lawyers, photographers and hairdressers are more likely to be small and the employees are skilled. importance of different types of business may depend on what the consumers in a market want. If they are prepared to pay high prices for unique items then small, niche retailers may be very important. Where cheap and standardised products are what consumers demand large businesses may be more important. Quality in particular is more likely to be higher in small retailers e.g. customer service, as they differentiate themselves from large retailers in this way, making their contribution to niche markets higher than large businesses Small businesses may need more support e.g. government grants and therefore their importance in the economy may depend on their importance to the government Small business in the primary or secondary sector may be more important to the economy of some countries than small retail businesses Large business more likely to be well known, branded and have high promotion so their contribution to the economy in terms of employment and taxation revenue may be higher Accept all valid responses.

Mark scheme

6(a) Analyse two factors which may influence a business’ choice of sources of finance. 8 There are 8 marks in total for Q6(a) – 4 marks for each of the two factors which may influence a business’ choice of sources of finance. These 4 marks consist of : 1 mark for 1 mark for 2 marks for Indicative content Responses may include: AO1 Knowledge and understanding 1 mark for identifying one factor which may influence a business’ choice of sources of finance reason for needing finance short term or long term availability of finance cost of the finance reputation of business past trading record amount of finance needed amount of control willing to accept cash flow and ability to pay back relationship with financial institutions 6(a) AO2 Application 1 mark for application/explanation of one factor which may influence a business’ choice of sources of finance Start-up finance, expansion, product development – why is it needed? suitable source of finance to suit the business needs e.g. owner’s savings, crowdfunding, overdraft, trade credit, loan, share capital, retained earnings relationship with potential providers AO3 Analysis 2 marks for developed analysis of one factor L2 1 mark for limited analysis of one factor L1 start–up business with no established record or reputation may have to rely on owner’s savings or crowdfunding as not attractive to other investors small established business wanting to grow may take on more partners/owners but limit this to keep control with original owner finance such as overdraft or trade credit will give short term boost to working capital to cover temporary problems business with trading record may gain a loan from the bank to pay back long term with interest limited company may sell more shares to raise larger amount of finance but will further dilute ownership of existing owners profitable business may have retained earnings to use without diluting ownership further or borrowing money Accept all valid responses. 6(b) Evaluate whether setting budgets is important to the success of a farming business. 12 There are 12 marks for 6(b): 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 L2 1 mark for limited knowledge L1 budgets – role and purpose variance from the budget business factors which may be important to success AO2 Application 2 marks for developed application L2 1 mark for limited application L1 farming items – arable, crops, fruit, livestock, cattle, dairy, sheep, chicken , fertiliser, farm machinery 6(b) AO3 Analysis 2 marks for developed analysis L2 1 mark for limited analysis L1 budgets encourage forward thinking/planning so can plan for future financial needs provide discipline and a framework for planning and control many farmers unlikely to have financial knowledge of setting budgets but are still successful due to experience farming businesses may set budgets, but this may be informal as part of their normal seasonal planning a farm may operate for survival and consider budgeting irrelevant e.g. small, subsistence farm profit driven farm may see budgets as essential for achieving profit external conditions are often unpredictable in farming making budgeting difficult even if variances are monitored, natural conditions may make changes to budget impossible/difficult may give stakeholders of large commercial farms the profit they judge success by AO4 Evaluation 6 marks for evaluation Developed/Supported judgement in context L3 6 marks Developed/Reasonable evaluative comments in context L3 5 marks Developed/Supported judgement without context L2 4 marks Developed/Reasonable evaluative comments without context L2 3 marks Limited supported judgement L1 2 marks An attempt to balance the arguments/Weak attempt at evaluative comments L1 1 mark 6(b) A judgement/conclusion is given as to the importance of budgets for the success of a farming business These judgements/conclusions may be given at any point in an essay, not just in a concluding section. effectiveness of budget may only be seen at the end of the trading period, which can be a long time in some types of farming how is success measured – survival/security for family members/better quality of produce/increased number of customers/increased revenue gained/amount of profit/ability to compete in the market and gain market share/expansion of the business/ improved reputation? it is meaningless to set budgets if the information included in them is badly researched or recorded. Does the business have suitable employees and experience to produce budgets correctly? Is the success of a farming business, especially a small one, more dependent on the experience of farming rather than knowledge of finance and budgeting? Accept all valid responses.