Business 9609/13 October/November 2022: question paper and mark scheme

Mark scheme

1(a) Define the term ‘person specification’. 2 • Description/statement of candidate qualifications/skills/attributes/experience/knowledge (1) • Needed to secure/do a specific job (1) Correct definition – 2 of the factors listed above. (2 marks) Partial definition – 1 of the factors listed above. (1 mark) No creditable content. (0 mark) 1(b) Explain two purposes of a job description. 3 Answers could include: • It outlines the main duties, key tasks and responsibilities that are involved in a particular job • Shows a prospective job holder what they are applying for • An important part of any selection and recruitment process such as attracting appropriate applicants • Shortens the recruitment process and assists the process of shortlisting • Assists management in evaluating job performance • Assists management in determining training and development needs and wage/salary levels • Assists management in allocating job roles in a business • Accept any other valid response Correct explanation of two purposes of a job description. (3 marks) Correct explanation of one purpose or partial explanation of two purposes of a job description. (2 marks) Partial explanation of one purpose or a list of two. (1 mark) No creditable content. (0 mark)

Mark scheme

2(a) Define the term ‘public sector’. 2 • Organisations owned/controlled/run by central/local government (2) • Organisations funded by central/local government (1) • Organisations with objectives other than profit making (1) • Organisations providing essential/needed services (1) • Relevant example such as public transport (1) Correct definition – 2 mark factor or 2 of the 1 mark factors listed above. (2 marks) Partial definition – 1 of the 1 mark factors listed above. (1 mark) No creditable content. (0 mark) 2(b) Explain two reasons why some organisations operate in the public 3 sector. Note: an alternative interpretation of the question is to explain why private sector businesses might concentrate on the public sector for their work/contracts/revenue. Answers could include: • Provide public goods/services • Run for the benefit of the community • To ensure that social needs as well as profit needs are satisfied • To achieve economies of scale • To ensure the public is protected and provided with vital services that might not be provided by the private sector • So that sufficient funding can be provided and a comprehensive service provided • Accept any other valid response Correct explanation of two reasons why some businesses operate in the public sector. (3 marks) Correct explanation of one reason or partial explanation of two reasons why some businesses operate in the public sector. (2 marks) Partial explanation of one reason or a list of two reasons. (1 mark) No creditable content. (0 mark)

Mark scheme

3 Explain how a business might improve its cash flow. 5 Answers could include: • A reliable and up-to-date cash flow forecast can provide the information that highlights cash flow issues and opportunities • Cut costs – identify cost savings in non-essential costs – overhead cost cutting can reduce cash outflows • Inventory management – reduce amount of cash tied up in inventory or goods ready for sale – offer discounts to encourage sales • Delay payments to suppliers – widely used in business to reduce cash outflows – risks damaging relationships with suppliers • Reduce credit period offered to customers and invoice faster or more frequently to accelerate cash inflows – risks damaging relationships with customers • Increase sales/revenue • Debt factoring • Delay or cut back on expansion plans to conserve cash • Sell unused assets and/or lease equipment rather than purchase • Accept any other valid response Effective explanation of how a business might improve its cash flow. (4–5 marks) Explanation of how a business might improve its cash flow. (2–3 marks) Descriptive information about cash flow. (1 mark) No creditable content. (0 mark)

Mark scheme

4(a) Define the term ‘transformation process’. 2 • The conversion of inputs (resources) (1) • The production of outputs (products/services) (1) Correct definition – 2 of the factors listed above. (2 marks) Partial definition – 1 of the factors listed above. (1 mark) No creditable content. (0 mark) 4(b) Explain two ways process innovation could improve the efficiency of 3 business operations. Answers could include: • The use of new or improved methods of production or service delivery • Making operations more efficient e.g. more cost-effective, reduce waste whilst maintaining quality – concerned with inputs (expenditure on raw materials, power, people and time) and outputs (products and services) • Can simplify and streamline existing processes • Examples could include the introduction of robots, AI, new waste management systems/technologies, digital control of inventory and supplies • Process innovation could lead to very significant changes, such as outsourcing production whole or in part • More efficient management of supply chain systems • Accept any other valid response Correct explanation of two ways in which process innovation could improve the efficiency of business operations. (3 marks) Correct explanation of one way or partial explanation of two ways process innovation could improve the efficiency of business operations. (2 marks) Partial explanation of one way or a list of two ways. (1 mark) No creditable content. (0 mark)

Mark scheme

5(a) Analyse the benefits to a business of product portfolio analysis. 8 Level Description Marks 4 Good analysis of the benefits of product portfolio 7–8 analysis to a business. 3 Some analysis of the benefits of product portfolio 5–6 analysis to a business. 2 Application of the benefits of product portfolio analysis 3–4 to a business. 1 Knowledge and understanding of product portfolio 1–2 analysis/product life cycle. 0 No creditable content. 0 Answers could include: Knowledge and Understanding 2 marks • Understanding of product portfolio analysis • Understanding of product life cycle Application 2 marks • Reference to use of product portfolio analysis in a business context Analysis 4 marks • Analysis of the range of different products currently produced by a business and the allocation of resources between them • It assists a business in deciding when to launch a new product, update an existing one, or stop producing a particular product • One of the main forms of product portfolio analysis is an awareness of the product life cycle • It gives a business some measure of control over its cash flow through the pursuit of a balanced product portfolio • It assists with product planning in conjunction with sales forecasts and management experience • Provides a regular check on the marketing strategy of a business • Uses measures such as market growth rate and relative market share to determine if investment is appropriately allocated • It encourages management to evaluate, to set objectives, to assess risk, to identify weaknesses, strengths and gaps in a portfolio, facilitates investment decisions • Accept any other valid response 5(b) Discuss the importance of branding when promoting a soft drink. 12 Level Description Marks 4 Effective evaluation of the importance of branding when 9–12 promoting a soft drink. 3 Limited evaluation of the importance of branding when 7–8 promoting a soft drink. 2 Analysis and application of branding when promoting a 3–6 product. 1 Knowledge and understanding of branding/promotion. 1–2 0 No creditable content. 0 Answers could include: Knowledge and Understanding 2 marks • Understanding of branding • Understanding of promotion • Understanding of soft drink market Application 2 marks • Reference to the role of branding when a business promotes a soft drink Analysis 2 marks • Branding is a set of associations that people make with a company, product, service or organisation • Branding is concerned with establishing an identifiable product image that supports regular and loyal customer buying behaviour – creates expectations • Branding promotes visibility, reduces price elasticity, establishes a strong connection between customer and product • Produces a competitive advantage • More effective marketing results, it is argued, with a strong brand • Brands help a business stand out from competitors, add value to the offer, and engage with customers • A brand seeks to harness, generate, influence and control associations with a product to help a business perform better – can present a business as distinctive, trusted, exciting, reliable etc. • Analysis might well refer to Coca Cola: its recipe is secret; it is youthful, energetic, refreshing – visual images – red and white logo, corporate colours, unique shape of the original bottles Evaluation 6 marks Any judgements/conclusions can be made at any point in the essay not just in a concluding section. 5(b) A judgement may be made using the following arguments: • It depends on the intensity of competition in the soft drinks industry. The soft drinks industry is very competitive so arguably branding is very important • Branding can be very significant and important – but brands can generate negative images – Coca Cola seen as unhealthy or a symbol of global imperialism by some • Price led marketing – is it breaking down the power of brands and the importance of brands? • Can discount retailers secure product loyalty with consistent low prices – is low price marketing becoming the ‘only game in town’ in some market sectors? • Are some discount retailers creating a generic low price retail brand (Aldi and Lidl) • Are other elements of the marketing mix more important than branding/promotion? • Accept any other valid response

Mark scheme

6 ‘Human resource management (HRM) is the most important business 20 function in a hospital’. Discuss the extent to which you agree with this view. Level Description Marks 5 Effective evaluation of the extent to which human 17–20 resource management (HRM) is the most important business function in a hospital. 4 Limited evaluation of the extent to which human 15–16 resource management (HRM) is the most important business function. 3 Good analysis of the view that human resource 11–14 management (HRM) is an important business function. 2 Limited analysis with application of the role of human 5–10 resource management (HRM)/other functions in a business. 1 Knowledge and understanding of HRM/business 1–4 functions. 0 No creditable content. 0 Answers could include: Knowledge and Understanding 4 marks • Understanding of human resource management • Understanding of business functions • Understanding of the operation of a hospital Application 4 marks • Reference to the role of HRM in a hospital Analysis 6 marks • Analysis of the role and of the HRM – issues relating to compensation, performance management, organisation development, safety, wellness, work-life balance, employee morale and motivation, training – a strategic role in managing people and the workplace culture and environment • HRM managers apply the best use of human assets in an organisation through human resource planning, workforce planning, recruitment and selection, training and development, performance appraisal, compensation, and retirement/dismissal Evaluation 6 marks Any judgements/conclusions can be made at any point in the essay not just in a concluding section. 6 A judgement may be made using the following arguments: • Can HRM processes help hospitals achieve high levels of operational and clinical performance? • Is the quality and continuity of patient care determined solely by the work of HRM? • The management and development of employees is vital in most businesses. Is it more important in a hospital? • Is HRM the key to maintaining services, attracting skilled doctors, nurses, promoting a positive professional atmosphere and workplace safety? • A hospital is often defined by the quality of its staff. This affects the quality of service given. If human resource planning and management is neglected, then there may well be critical shortages and poor service • Should the role of HRM be considered in isolation and as ‘the most important business function in a hospital’? • Other hospital sub-systems/functions also play a crucial part – the role of information management, health and safety, operations and strategic management, and financial planning and management may be considered to play a complementary role in the successful working of a hospital • Although there is expensive capital equipment in a hospital the major asset is the employees providing the care • How do you judge what is the most important business function? • Accept any other valid answer

Mark scheme

7(a) Analyse the advantages of a public limited company (plc) as a legal 8 structure for a business. Level Description Marks 4 Good analysis of the advantages of a public limited 7–8 company (plc) as a legal structure for a business. 3 Limited analysis of the advantages of a public limited 5–6 company (plc) as a legal structure for business. 2 Application of the advantages of a public limited 3–4 company (plc) as a legal structure for a business. 1 Knowledge and understanding of a public limited 1–2 company/legal structure of a business. 0 No creditable content. 0 Answers could include: Knowledge and Understanding 2 marks • Understanding of public limited company (plc) • Understanding of legal structure of a business Application 2 marks • Reference to the characteristics/role of a public limited company (plc) as a legal business structure Analysis 4 marks • The business has a separate legal identity • There is limited liability for shareholders • Can raise significant capital through the issue of shares • A listing on a stock exchange can attract investors worldwide • The shareholder base is wide, the risk spread and the influence of one or two ‘angel investors’ reduced • Better financial opportunities are available – suggests the organisation is credit worthy - able to attract other potential sources of finance – banks and other financial institutions more willing to lend to a publicly listed company and give better terms • Growth and expansion opportunities may follow from these finance advantages e.g. able to make acquisitions, purchase significant capital assets, grow organically • Can achieve a prestigious profile – better brand recognition • Accept any other valid response 7(b) Discuss the view that the activities of banks should be significantly 12 influenced by ethics. Level Description Marks 4 Effective evaluation of the view that the activities of 9–12 banks should be significantly influenced by ethics. 3 Limited evaluation of the view that the activities of a 7–8 business should be significantly influenced by ethics. 2 Analysis and application of how the activities of a 3–6 business could be influenced by ethics. 1 Knowledge and understanding of banks/ethics. 1–2 0 No creditable content. 0 Answers could include: Knowledge and Understanding 2 marks • Understanding of ethics • Understanding of banks Application 2 marks • Reference to how the activities of a bank/business could be significantly influenced by ethics Analysis 6 marks • The activities of some businesses are affected by ethics in terms of i.e. notions of right and wrong or of moral codes • Ethical activities could include treatment of employees, consideration of customer needs, links with suppliers • Analysis of legal compliance restrictions on banks that contain implicit/explicit ethical decisions • Banks could be more ethical e.g. providing social loans, loans to small businesses, transparency of information given • Some bank activities can be considered unethical, e.g. PPI, mis-selling of endowment mortgages, poor pension products, poor treatment of small borrowers/businesses, favouring new customers with preferential rates, over existing customers Evaluation 6 marks Any judgements/conclusions can be made at any point in the essay not just in a concluding section A judgement may be made using the following arguments: • To what extent could/should ethics play a part in the activities of a business – ethics is about moral values – right and wrong – codes of conduct • Is there room for ethics in the activities of commercial banks? 7(b) • How does an ethical approach sit with commercial objectives, especially ‘profit making’? • While decisions could/should be influenced by ethics, how realistic is this in practice? • Are there more important influences such as the need for profit and satisfying shareholders? • To what extent will the activities of banks be influenced by other factors, such as poor understanding of market, poor information, confusion about objectives, copying other businesses • Accept any other valid response