Business 9609/21 October/November 2023: question paper and mark scheme

Mark scheme

1(a)(i) Identify one non-financial motivator. 1 Indicative content: Identification of an element may include: • Job rotation / enlargement / enrichment • Job redesign • Training and development • Promotion, status and empowerment • Teamworking • Quality circles Accept all valid responses. 1(a)(ii) Exemplar and annotations Mark Rationale Based on how many units produced used when 3 An answer which starts with the knowledge and then output can be measured and it can then be a applies it to a type of output and develops the point in financial motivator. . a business context. Paid per unit produced for example if the employee 3 Again, knowledge first, followed by application to a receives $5 per unit, produces 20 units in a day, they business scenario, with a developed example. will be paid $100 for the day. . Paid per item manufactured , in country V 2 Clear knowledge. Application to an example of a employees paid according to the amount of plastic business from the case study. packaging produced . Pay depends on their units of output . 1 Not a perfect definition, but enough to award the knowledge mark. No attempt to apply. Paying and rewarding for hours they complete 0 This is a time-based payment. Payment for the numbers sold 0 This is commission not piece-rate. 1(b)(i) Refer to Table 1.1 and other information. Calculate the change in forecast profit if the new product is launched. 3 Profit with new product – profit without new product OR [(TR-TC new) – (TR-TC old)] (1) Profit before new product = 40 – (26 + 6) = $8m Profit after new product introduced: Revenue = 40 + 30% = 52 (1) Direct costs + indirect costs = 32 + 6 + 1 = 39 (1) 52 – 39 = $13 m (1) Change in profit = 13 – 8 (2) = $5 m (accept 5) (3) Note: may calculate the percentage change which is 62.5% (3) (5 / 8 × 100). Marks Answer Rationale 3 Correct answer Working, m and $ sign do not matter but if 5 or 62.5% answer a percentage must have % Must be three to denote the three marks. 2 Both of the following: To award two marks, there must be • Correct / implied formula [Profit with new product- • Two and a profit without new product] OR AND • One , one and one • Correct calculation of either new revenue (52) • Correct calculation of new costs (39) • Correct calculation of original profit (8) • new profit (13) OR An incorrect answer with one mistake allowing OFR for final stage. 1(b)(i) Marks Answer Rationale 1 One of the following: To award one mark, there must be: • Correct / implied formula [Profit with new product- One and two profit without new product] OR • Correct calculation of either new revenue (52) • Correct calculation of new costs (39) • Correct calculation of new profit (13) • Correct calculation of original profit (8) 0 No creditable content. To award zero marks, there must be 1(b)(ii) Explain one way PS could use cost information to improve business performance. 3 AO1 Knowledge and understanding – 1 mark AO2 Application – 2 marks 2 marks Developed application of one relevant point to a business context. 1 mark 1 mark Knowledge of one relevant point is used to answer the Limited application of one relevant point to a business question. context. 0 marks 0 marks No creditable response. No creditable response. Indicative content – Responses may include: AO1 Knowledge and understanding: Knowledge of a use of cost information to improve business performance : • Help make the investment decision / to obtain loans e.g from a bank. • Identify unnecessary expense. • Forecast profit. • To set prices. • To improve cash flow. • other factors involved e.g. cost of investment, future market conditions, whether the product will be successful No further marks can be gained without knowledge and understanding. AO2 Application Limited application , applies knowledge to PS once. Developed application + applies knowledge to PS twice OR applies once to PS AND develops answer to explain how it can help improve business performance. • The profit has increased from $8m to $13m. • Environmentally friendly. • Added value. • Expenses do not increase very much so can spread over higher number of units. Accept all valid responses. 1(b)(ii) Exemplar and annotations Mark Rationale To consider where costs can be reduced , as 3 A use explained in the specific context of PS by using the PS move to becoming more capital intensive information in the case study and develops answer to which will require capital investment . explain why it is useful. To determine the impact on profits , if PS launch 3 A financial use in this one and there is context from the the new packaging, profits forecast to increase data in Table 1.1., also how the use given is linked to the by $5 m (62.5% or OFR) issue. To determine if PS can launch the new packaging 3 Although the appears first, it cannot be awarded until as costs will impact the decision but the the has been found. However, there is obvious , so forecast revenue increase is greater than the cost you can go back and award the . increase . To compare labour costs because PS use 2 Relevant use . The context linked to this is reasonable different payment methods . , but is not developed. To help improve cashflow as cost information 1 Knowledge of a use. The rest of the answer is not applying includes fixed and variable costs it to the context so (Not Answering Question). To consider where costs can be reduced , to 1 Both are knowledge of a use but there is only 1 mark for help improve cashflow knowledge . 1(c) Analyse two elements of the marketing mix that PS should consider when launching the new packaging. 8 Level AO1 Knowledge and AO2 Application AO3 Analysis understanding 2 marks 4 marks 2 marks 2 3–4 marks Developed analysis • Developed analysis that identifies connections between causes, impacts and / or consequences of two points. • Developed analysis that identifies connections between causes, impacts and / or consequences of one point. 1 1–2 marks 1–2 marks 1–2 marks • Knowledge of two relevant • Application of two relevant Limited analysis points is used to answer the points to a business • Limited analysis that identifies question. context. connections between causes, impacts • Knowledge of one relevant • Application of one relevant and / or consequences of two points. point is used to answer the point to a business context. • Limited analysis that identifies question. connections between causes, impacts and / or consequences of one point. 0 0 marks 0 marks 0 marks No creditable response. No creditable response. No creditable response. Indicative content Knowledge of elements of the marketing mix (max 2 s), may include: AO1 Knowledge and understanding • Product • Price • Promotion • Place (distribution channels) 1(c) No further marks can be gained without knowledge and understanding. AO2 Application Max one application for the first element and a second , application for the second element • Product environmentally friendly • Higher cost of production • Used for packaging food • Premium product AO3 Analysis Limited analysis – candidate shows one link in the chain of analysis. Developed analysis – candidate shows two or more links in the chain. • Product is environmentally friendly – could use in marketing and may allow a premium price • Costlier to produce – likely to be higher priced than competitors • Quality is an issue particularly as product is used with food • May have an impact on sales of existing products and therefore their Marketing Accept all valid responses. Exemplars and annotations AO1 Knowledge AO2 Application AO3 Analysis One element of the marketing mix When launching the Price directly affects the demand from that PS should consider is price . environmentally friendly packaging businesses that buy the environmentally Annotations for the first impact friendly packaging therefore they could should be placed in the left-hand use penetration pricing and set the prices margin. low when they launch . Another element of the marketing For example, when a business They can give discounts or some of their mix could be promotion. buys their new environmentally other products for free, this will lead to a Annotations for the second friendly packaging above a certain higher willingness to buy their new product impact should be placed in the amount and they will be noticed in the market and right-hand margin. increase their sales 1(d) Evaluate whether PS should use the same payment method and employee development in both factories. 12 Level AO1 Knowledge and AO2 Application – AO3 Analysis – AO4 Evaluation – 6 marks understanding – 2 marks 2 marks 2 marks 3 5–6 marks Developed evaluation in context • A developed judgement / conclusion is made in the business context. • Developed evaluative comments which balance some key arguments in the business context. 2 2 marks 2 marks 2 marks 3–4 marks Developed knowledge of Developed Developed analysis Developed evaluation relevant key term(s) application of that identifies • A developed and / or factor(s) is used to relevant point(s) to connections between judgement / conclusion is answer the question. the business causes, impacts made. context. and / or consequences. • Developed evaluative comments which balance some key arguments. 1 1 mark 1 mark 1 mark 1–2 marks Limited knowledge Limited application Limited analysis Limited evaluation of relevant key term(s) of relevant point(s) that identifies • A judgement / conclusion is and / or factor(s) is used to to the business connections between made with limited supporting answer the question. context. causes, impacts comment / evidence. and / or consequences. • An attempt is made to balance the arguments. 0 0 marks 0 marks 0 marks 0 marks No creditable response. No creditable No creditable response. No creditable response. response. 1(d) Indicative content Responses may include: AO1 Knowledge and understanding - knowledge of one of the key terms (max 2 s), including: • Payment methods • Development opportunities • Depends on finances • Financial / non-financial motivators No further marks can be gained without knowledge and understanding. AO2 Application Limited application applies knowledge of payment method / employee development of PS once. Developed application + applies knowledge of payment method / employee development of PS twice. • Currently pay and opportunities different in countries • Payments different, time based v piece rates • Fewer opportunities in some countries • Use of non-financial motivators vary • Employees demanding equal treatment AO3 Analysis Limited analysis – candidate shows one link in the chain of analysis. Developed analysis – candidate shows two or more links in the chain of analysis. Analysis marks can be awarded without context. • Could be expensive. • Management of change can be difficult. • Could lead to discontent with those workers who have an advantage. • Might be difficult to get arrangements that suit laws in several countries. • May not recognise local conditions. • May give firm good reputation as fair employer. • Could enable employees to move from country to country easily. • Would act as a motivator in some countries. • Whether or not trades unions are involved and the extent to which they cooperate. 1(d) AO4 Evaluation Limited evaluation – unsupported judgement and / or a weak attempt at evaluative comment Developed evaluation – supported judgement and / or reasonable evaluative comment Developed evaluation in context – supported judgement in context and / or reasonable evaluative comment in context. • A justified recommendation • Identifying that the decision will ultimately depend on a number of unknowns (e.g. extent of differences between the regulations, financial state of firm, strength of views of workforce). • Discussion of costs v benefits Accept all valid responses. Exemplars for awarding evaluation L1 (limited L2 (developed supporting L3 (developed supporting evidence with supporting evidence) evidence) context) PS should use the PS should use the same payment PS should use the same payment method and same payment method method and employee development in employee development in both factories and should and employee both factories and should use time- use time-based pay, non-financial motivators and development in both based pay, non-financial motivators and employee development in country Z as this will factories employee development increase motivation and satisfy the employees demanding equal pay and opportunities. PS shouldn’t use the PS shouldn’t use the same payment PS shouldn’t use the same payment method in both same payment method method in both countries because in countries because in one country employees might in both countries one country employees might be more be more motivated by non-financial motivators, such motivated by non-financial motivators. as in country Z, whereas in country V employees might like to know they can get higher pay by working faster.

Mark scheme

2(a)(i) Identify one function of a manager. 1 Indicative content Identification of a function may include: • Planning • Organising • Directing • Controlling • Fayol – Commanding, motivating, co-ordinating and measuring performance / appraisal 2(a)(ii) Explain the term secondary market research. 3 AO1 Knowledge and understanding – 1 mark AO2 Application – 2 marks 2 marks Developed application of one relevant point to a business context. 1 mark 1 mark Knowledge of one relevant point is used to answer Limited application of one relevant point to a business context. the question. 0 marks 0 marks No creditable response. No creditable response. Indicative content AO1 Knowledge and understanding of secondary may include: • Uses data that already exists • Collected by someone else • Can be from another organisation No further marks can be gained without knowledge and understanding AO2 Application to market research Limited application applies knowledge of secondary market research including: • Cheaper than primary research / outdated / not tailored to business OR • Example or some other way of showing good understanding of secondary market research. Developed application + applies knowledge of secondary market research including • Cheaper than primary research / outdated / not tailored to business AND • Example or some other way of showing good understanding of secondary market research. Application can be made to DN or any other scenario / context / business / product. 2(a)(ii) Accept all valid responses. Exemplars and annotations Marks Rationale Information that already exists for other purposes 3 An answer which starts with the knowledge of such as in a newspaper or magazine It saves on secondary, then applies it to market research and research costs . develops the point in a business context. Second-hand research such as magazines, online 3 Again, knowledge of secondary, followed by reports etc. They are not tailored to a specific developed application to market research business but can establish market trends . Market research conducted by others , can be out 2 Clear knowledge of secondary. Limited application to of date and incorrect . market research. second-hand research. secondary but there is no application to market research. Only 1 knowledge mark. Secondary market research is testing your product 0 This is a primary research method. with the public Research from online sources 0 No knowledge / understanding of secondary, without no other marks can be awarded. 2(b)(i) Refer to Table 2.1. Calculate the percentage increase in total revenue of online monthly magazines from 2020 to 3 2022. Indicative content – Responses may include: Revenue 2020 = 50 Revenue 2022 = 150 Change = 150 − 50 = 100 (1) Formula: Can be implied Change / original × 100 (1) (150 – 50) / 50 × 100 (1) = 100 / 50 × 100 = 200% (3) Accept all valid responses. Exemplars and annotations Marks Answer Rationale 3 Correct answer Working and % sign do not matter 200% Must be three to denote the three marks. 2 Both of the following: To award two marks, there must be • Correct / implied formula • Two and a AND OR Correct calculation of the change in total revenue (100) • One , one and one OR An incorrect answer with one mistake allowing OFR for final stage. For example, (150 – 50) / 150 × 100 = 100 / 150 × 100 = 66.67% (accept any figure between 66.6 and 67) – 2 marks, (wrong denominator) 1 One of the following: To award one mark, there must be: • Correct / implied formula One and two OR • Correct calculation of the change in total revenue (100) 0 No creditable content. To award zero marks, there must be 2(b)(ii) Explain one additional piece of market research data DN would find useful before making the decision to produce 3 QLine. AO1 Knowledge and understanding – 1 mark AO2 Application – 2 marks 2 marks Developed application of one relevant point to a business context. 1 mark 1 mark Knowledge of one relevant point is used to answer the question. Limited application of one relevant point to a business context. 0 marks 0 marks No creditable response. No creditable response. Indicative content AO1 Knowledge and understanding Knowledge of additional market research may include: • Customer data • Customer feedback • What are forecast trends • What subscription level are customers prepared to pay • Information about competitors • Potential size of the market No further marks can be gained without knowledge and understanding. AO2 Application Limited application , applies knowledge to DN once. Developed application + applies knowledge to DN twice or develops one point • What potential readers want in a magazine • Aimed at 18-30 market, so characteristics / requirements of this market • Other online magazines available, do they charge a subscription fee? • Plans to stop publishing QNews. 2(b)(ii) Accept all valid responses. Exemplars and annotations Mark Rationale DN can use primary research to ask people about 3 Knowledge of an additional piece of market research in the their reading habits and interests because DN specific context of DN by using the information in the case plans to stop publishing QNews it needs to study and develops answer to explain why it is useful. have accurate information about market trends. . Another piece of useful market research would be 3 Although the appears first, it cannot be awarded until the approximately how many 18-30 year olds has been found. However, there is obvious , so you have news subscriptions this will allow them to can go back and award the . anticipate the approximate amount of news subscriptions they may get from people in the targeted demographic . One additional market research data is what 2 Relevant additional data . The context linked to this is topics their targeted group is interested in this reasonable (subscriptions) , but is not developed. would allow DN to have a high revenue from subscriptions . Find out common interests and trends and 1 Knowledge of additional data, the rest of the answer is not identifying their target market using the context so (Not Using the Text). One additional piece of market research DN 0 This is market segmentation not market research so would find useful is to sell their products in a (not Answering the Question) even though there is context niche market so they should segment their without knowledge and understanding no other marks market to 18-30 age group. can be awarded. 2(c) Analyse two reasons why Shila and Lucy will have to change DN’s objectives. 8 Level AO1 Knowledge and AO2 Application – 2 marks AO3 Analysis understanding – 2 marks 4 marks 2 3–4 marks Developed analysis • Developed analysis that identifies connections between causes, impacts and / or consequences of two points. • Developed analysis that identifies connections between causes, impacts and / or consequences of one point. 1 1–2 marks 1–2 marks 1–2 marks • Knowledge of two • Application of two relevant Limited analysis relevant points is used to points to a business • Limited analysis that identifies connections answer the question. context. between causes, impacts and / or • Knowledge of one • Application of one relevant consequences of two points. relevant point is used to point to a business • Limited analysis that identifies connections answer the question. context. between causes, impacts and / or consequences of one point. 0 0 marks 0 marks 0 marks No creditable response. No creditable response. No creditable response. Indicative content AO1 Knowledge and understanding – Knowledge of two reasons (max 2 s), may include: • Market conditions • Importance of objectives • Relationship between mission statement, aims, objectives and strategy • SMART objectives • How change influences objectives • Relationship of objectives to budget planning 2(c) No further marks can be gained without knowledge and understanding. AO2 Application – Application of knowledge of a reason for DN to change its objectives (max 2 s), including: Max one for application for the first reason and another for application for the second reason • Employees concerned about the change. • Mission statement change • National revenue data • Not all employees have the right skills • Change from daily news reporting to magazine aimed at a young age group • Impact on local community AO3 Analysis Limited analysis – candidate shows one link in the chain of analysis. Developed analysis – candidate shows two or more links in the chain of analysis or a two-sided analysis. • Change essential for competition and survival – otherwise firms may make losses / go out of business. • Communicates the direction of the firm to employees – important as a change impacts employees working practices. • Will need to change objectives if want growth – as market conditions change. • Costs of change v benefits Accept all valid responses. Exemplars and annotations AO1 Knowledge AO2 Application AO3 Analysis One reason why Shila and Lucy will have to to provide a community This may mean a more national change DN’s objectives is because of the newspaper for local people readership as opposed to a niche change from its original mission . focus DN may become more Annotations for the first impact should be commercially focused to attract placed in the left-hand margin. advertisers. . Another reason to change objectives is to Who will subscribe to a monthly It is important that DN makes sure retain loyal customers product. that customer expectations are met Annotations for the second impact should and the product maintains quality be placed in the right-hand margin. to ensure they still gain profits 2(d) Evaluate the importance to DN of effective supply chain management. 12 Level AO1 Knowledge and AO2 Application – AO3 Analysis – AO4 Evaluation – understanding – 2 marks 2 marks 2 marks 6 marks 3 5–6 marks Developed evaluation in context • A developed judgement / conclusion is made in the business context. • Developed evaluative comments which balance some key arguments in the business context. 2 2 marks 2 marks 2 marks 3–4 marks Developed knowledge of Developed Developed analysis Developed evaluation relevant key term(s) and / or application of that identifies • A developed factor(s) is used to answer relevant point(s) to connections between judgement / conclusion is the question. the business causes, impacts made. context. and / or consequences. • Developed evaluative comments which balance some key arguments. 1 1 mark 1 mark 1 mark 1–2 marks Limited knowledge Limited Limited analysis Limited evaluation of relevant key term(s) application that identifies • A judgement / conclusion is and / or factor(s) is used to of relevant point(s) connections between made with limited supporting answer the question. to the business causes, impacts comment / evidence. context. and / or consequences. • An attempt is made to balance the arguments. 0 0 marks 0 marks 0 marks 0 marks No creditable response. No creditable No creditable response. No creditable response. response. 2(d) Indicative content Knowledge of supply chain (max 2 s), may include: AO1 Knowledge and understanding: • Supply Chain Management understanding • The process of creating content • Managing content • Delivering content to the consumer • Customer expectations • Employee skills • Suitable content • Quality issues • Cost control No further marks can be gained without knowledge and understanding. AO2 Application Limited application applies knowledge of effective supply chain management to DN once. Developed application + applies knowledge of effective supply chain management DN twice. • content accessible on any device at any time / the magazine content should be available on all devices, • Through all internet service providers and easily available to subscribers. • Content suitable for target market (18-30) • Not easily available to non-subscribers • Need to keep costs low • Allow DN to compete in the new market • Difference between local and national market 2(d) AO3 Analysis Limited analysis – candidate shows one link in the chain of analysis. Developed analysis – candidate shows two or more links in the chain of analysis. • Do current employees have the right skills – to provide appropriate content? • Can the business survive inefficient management of the supply chain – as costs need to be carefully controlled throughout the chain? • Large variation of formats required – will involve many suppliers of different platforms / devices. • Multiple service providers add additional complexity – which can be challenging to manage. • Need to provide a quality product – which requires careful monitoring throughout the supply chain. • Content should be easy to find – how to ensure that this applies to all platforms / devices. • Employees important part of the supply chain – they have concerns / careful workforce planning required. AO4 Evaluation Limited evaluation – unsupported judgement and / or a weak attempt at evaluative comment Developed evaluation – supported judgement and / or reasonable evaluative comment. Developed evaluation in context – supported judgement in context and / or reasonable evaluative comment in context. • A justified recommendation • Assessment of the decision • Identification of factors critical in the supply chain • How to ensure quality – what to compare to / what is quality content • Is there enough information to implement • Will revenue outweigh costs • Require complex negotiations with multiple platforms – do they have the expertise? • Discussion of further information required. • Other factors more important e.g., marketing Accept all valid responses. 2(d) Exemplars for awarding evaluation L1 (limited L2 (developed supporting L3 (developed supporting evidence with supporting evidence) evidence) context) Effective supply chain Effective supply chain management Effective supply chain management is important to DN management is is important to DN as it needs to as it needs to deliver content that meets customer important to DN deliver content that meets customer expectations. The main premise of their product is to expectations. deliver factual, entertaining and informative news. Supply chain Supply chain management is not as Supply chain management is not as important as management is not as important as marketing because marketing because without awareness and advertising important as marketing. without awareness and advertising there will be a lack of demand. Since Qline will be a there will be a lack of demand. new online monthly magazine DN will need social media accounts to promote this product.