Edexcel GCSE Business - Presdales School · 2020. 11. 17. · Edexcel GCSE Business Mark Scheme Paper 2b Page 3 Question Number Answer Mark 2 (a) A, E (2) AO1a Question Number Answer

Edexcel GCSEBusiness

Mark SchemePaper 2b

Building a business

MARK SCHEME

Page 2 Edexcel GCSE Business Mark Scheme Paper 2b

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Mark schemeSection AQuestionNumber

Answer Mark

1 (a) C (1)AO1a

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Answer Mark

1 (b) C (1)AO1a

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Answer Mark

1 (c) Award 1 mark for identifying one advantage of external recruitment, plus 2 further marks for explaining this advantage up to a total of 3 marks.

External recruitment gives the business a much wider choice of potential applicants (1) which means a candidate of higher quality could be recruited (1) leading to an increase in productivity (1).

External recruitment will allow the business to hire workers who have different skills and experience (1) which may lead to changes in working practices (1) which could increase efficiency (1).

Accept any other appropriate response. Answers that list more than one advantage with no explanation will be awarded a maximum of 1 mark.

(3)AO1a = 1AO1b = 2

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Answer Mark

1 (d) Award 1 mark for identification of a disadvantage, plus 2 further marks for explaining this disadvantage up to a total of 3 marks.

Viral advertising using social media sites could damage a business’s brand name (1) because, once released, the business cannot control the message that is displayed on this form of media (1) and, if negative, could result in a loss of sales (1).

Viral advertising using social media sites such as Facebook and Twitter are harder to repeat than other promotional methods (1) meaning the business has to create new promotions each time (1) which increases business costs (1).

Accept any other appropriate response. Answers that list more than one disadvantage with no explanation will be awarded a maximum of 1 mark.

(3)AO1a = 1AO1b = 2

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Edexcel GCSE Business Mark Scheme Paper 2b Page 3

QuestionNumber

Answer Mark

2 (a) A, E (2)AO1a

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Answer Mark

2 (b) D, E (2)AO1a

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Answer Mark

2 (d) Award 1 mark for identification of one benefit, plus 2 further marks for explaining this benefit identified up to a total of 3 marks

Job enrichment can lead to higher productivity (1) because workers will be more motivated to work hard (1) which will lead to lower unit costs and increased profitability (1).

Job enrichment could lead to lower staff turnover (1) because employees feel more valued at work (1) which means recruitment costs are kept to a minimum (1). Accept any other appropriate response. Answers that list more than one benefit with no explanation will be awarded a maximum of 1 mark.

(3)AO1a = 1AO1b = 2

QuestionNumber

Answer Additional guidance Mark

2 (c) Substitution into correct formula:

(£84,000/10) x 100 (1) £35,000

Answer = 24% (1)

Award full marks for correct numerical answer without working.

Do not accept any other answer

(2)AO2


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Answer Mark

2 (e) Award 1 mark for identification of an advantage, plus 2 further marks for explaining this advantage up to a total of 3 marks.

Consistent levels of quality (1) which means customers are more likely to be satisfied (1) which can lead to an increase in repeat business (1).

Cost of producing each unit becomes lower (1) due to high output levels (1) leading to an increase in profit margins (1).

Accept any other appropriate response. Answers that list more than one advantage with no explanation will be awarded a maximum of 1 mark.

(3)AO1a = 1AO1b = 2

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Answer Mark

3 (a) A (1)AO1a

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Answer Mark

3 (c) Award 1 mark for identification of one limitation, plus 2 further marks for explaining this limitation up to a total of 3 marks.

The figures used to make the decision may be out of date (1) which means they may not reflect the current situation the business is facing (1) which could lead to the wrong decision being made increasing business costs (1).

The time period over which the financial performance has been measured may be too short (1) which, for a seasonal business, may mean not enough stock is purchased (1) which could lead to a loss of sales (1).

Accept any other appropriate response. Answers that list more than one limitation with no explanation will be awarded a maximum of 1 mark.

(3)AO1a = 1AO1b = 2

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3 (b) Substitution into correct formula:

£2,500,000 + £3,000,000 + £2,000,000 3 (1) Answer = £2,500,000 (1)

Award full marks for correct numerical answer without working.

Do not accept any other answer.

(2)AO2

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Answer Mark

3 (d) Award 1 mark for identification of one disadvantage, plus 2 further marks for explaining this disadvantage up to a total of 3 marks.

Junior managers may feel demotivated as they have little input into the decision making process (1) which could result in a higher staff turnover (1) which would increase the recruitment costs of the business (1).

Decisions made centrally may not reflect local market conditions (1) leading to the wrong products being stocked (1) which means the business may lose potential sales to rivals (1).

Accept any other appropriate response. Answers that list more than one disadvantage with no explanation will be awarded a maximum of 1 mark.

(3)AO1a = 1AO1b = 2

QuestionNumber

Indicative content Mark

3 (e) h There is no requirement to pay a dividend to shareholders (AO1b).

h The share capital is permanently invested in the business (AO1b).

h The board of directors will determine the level of dividend payments and as this decision will be based on the business’s profitability and success, there is little risk the business would overstretch itself with these payments and risk its future (AO3a).

h The business is therefore not committed to fixed interest repayments which means profits will not be reduced due to increased expenses (AO3a).

(6)A01b = 3A03a = 3

Level Mark Descriptor

0 No rewardable material

Level 1 1-2 h Demonstrate elements of knowledge and understanding of business concepts and issues, with limited business terminology used (AO1b).

h Attempts to deconstruct business information and/or issues, finding limited connections between points (A03a).

Level 2 3-4 h Demonstrates mostly accurate knowledge and understanding of business concepts and issues, including appropriate use of business terminology in places (AO1b).

h Deconstructs business information and/or issues, finding interconnected points with chains of reasoning, although there may be some logical inconsistencies (A03a).

Level 3 5-6 h Demonstrates accurate knowledge and understanding of business concepts and issues throughout, including appropriate use of business terminology (AO1b).

h Deconstructs business information and/or issues, finding detailed interconnected points with logical chains of reasoning (A03a).


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Answer Mark

4 (a) Award up to 2 marks for linked points outlining a suitable impact on Portakabin of globalisation. Award a maximum of 1 mark if points are not linked.

It faces heavy competition from overseas imports (1) which means the business could lose sales (1).

It can export its buildings more easily (1) which means increased sales due to a larger potential market (1).

Do not accept an impact of globalisation that would be inappropriate for a manufacturer of buildings such as Portakabin.

(2)AO2

Section B

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4 (b) h It means Portakabin’s storage costs are lower as less storage space is needed (AO2).

h Portakabin will have less working capital tied up in stock (AO2).

h This is because lower stocks of bulky raw materials and finished goods, such as doors, windows and finished buildings are held, allowing Portakabin to control costs and profitability (AO3a).

h This is because stock is only obtained when needed and Portakabin’s stock is expensive e.g. buildings, windows, doors, which means the money can be used elsewhere to improve the efficiency of the business e.g. on digital technology (AO3).

(6)AO2 = 3AO3a = 3

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Level 1 1-2 h Limited application of knowledge and understanding of business concepts and issues to the business context (AO2).

h Attempts to deconstruct business information and/or issues, finding limited connections between points (AO3a).

Level 2 3-4 h Sound application of knowledge and understanding of business concepts and issues to the business context although there may be some inconsistencies (AO2).

h Deconstructs business information and/or issues, finding interconnected points with chains of reasoning, although there may be some logical inconsistencies (AO3a).

Level 3 5-6 h Detailed application of knowledge and understanding of business concepts and issues to the business context throughout (AO2).

h Deconstructs business information and/or issues, finding detailed interconnected points with logical chains of reasoning (AO3a).

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5 (a) £42,000 Do not reward a mark if the correct unit (£) is not given.

(1)AO2

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5 (c) Substitution into correct formula:

£45,000 x 250 (1)

Answer: £11,250,000 (1)

Do not reward a mark if the correct unit (£) is not given.

(2)AO2

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Answer Mark

5 (b) Three years ago (1)AO2


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5 (d) h Costs can be reduced, as there will be less wastage and reworking because product quality is checked throughout the production process (AO2).

h Quality assurance can help Portakabin to gain/maintain a competitive advantage because it assures consistent high quality and safe buildings are produced (AO2).

h This means defects do not have to be dealt with, which allows costs to be controlled thus ensuring the business remains profitable and competitive which is vitally important when the business is facing heavy competition from imported rival goods and the costs of raw materials are so expensive (AO3a).

h This means customers are more likely to be satisfied, give favourable reviews which will drive sales of Portakabin’s products. This is important in this heavilycompetitive market, as it will increase the company’s sales and profit levels which can then be reinvested back into other areas such as improvingefficiency, for example improving digital technology (AO3a).

(6)AO2=3 AO3a=3









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QuestionNumber

Answer Mark

6(b) Award up to 2 marks for linked points outlining a benefit to Portakabin of its environmental considerations. Award a maximum of 1 mark if points are not linked.

Being environmentally friendly will increase Portakabin’s reputation with its customers and potential customers (1) which may result in the company receiving more sales as it could help to differentiate it from the heavy competition the business is currently facing (1).

Recycling and re-using raw materials for insulation will reduce costs (1) leading to increased profits (1).

Accept any other appropriate response. Do not accept benefits that would not be appropriate for a manufacturer such as Portakabin.

(2)AO2

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6(c) h Changing from batch to flow production will allow production of standard sized buildings that will reduce unit costs (AO2).

h However, customers may prefer the specialised nature of the building that batch production allows (AO2).

h As a result, profitability would increase due to increases in efficiency. If price had to be reduced due to the standardisation of buildings, sales volume should increase, as the buildings would be more competitively priced which would increase the company’s profitability. This would therefore meet the objective of the board of directors successfully (AO3a).

h As a result of introducing flow production, demand for Portakabin’s buildings could fall as they no longer meet customer requirements leading to a decline in sales and profit, as customers move to rival firms that may meet customer needs more exactly. This idea would therefore not increase profitability (AO3a).

(9)AO2=3AO3a=3

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Answer Mark

6(a) Award 1 mark for stating one factor Portakabin will consider when choosing its suppliers.

Speed of delivery of materials, such as windows (1).

Reliability of delivery as Portakabin delivers 99% of projects on time (1).

Accept any other appropriate response. Do not accept factors that would not be appropriate for a building manufacturer such as Portakabin, for example freshness of raw materials.

(1)AO2


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h Makes a judgement, providing a simple justification based on limited evaluation of business information and issues relevant to the choice made (AO3b).



h Makes a judgement, providing a justification based on sound evaluation of business information and issues relevant to the choice made (AO3b).


h Deconstructs business information and/or issues finding detailed interconnected points with logical chains of reasoning (AO3a).

h Makes a judgement, providing a clear justification based on a thorough evaluation of business information and issues relevant to the choice made (AO3b).

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6(c)Cont.

h Flow production would not allow Portakabin’s to meet customer requirements in terms of producing different sized buildings which the use of batch production currently does. The introduction of flow production may then lead to Portakabin’sproducts being similar to rivals, which may lead to lower demand and lower prices having to be charged, as customers will not be prepared to pay as much for a set, standard design leading to a reduction in profitability (AO3b).

h If the board choose to go ahead with one of these options, the most appropriate might be for Portakabin to move its production overseas leading to a reduction in unit costs whilst still using batch production to produce specialised buildings. This option would ultimately lead to an increase in profitability (AO3b).

AO3b=3

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QuestionNumber

Answer Mark

7 (a) Award 1 mark for correct definition of a multinational.

A multinational is a business that has operations in more than one country (1).

(1)AO1a

Section C

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Answer Mark

7 (b) £17.6 billion (1)AO2

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Answer Mark

7 (c) Award up to 2 marks for linked points outlining one reason why Tesco trains and develops it employees. Award a maximum of 1 mark if points are not linked.

To retain employees (1) to prevent an increase in recruitment and training costs which is important when profit margins are already squeezed in the grocery market (1).

To motivate employees (1) to ensure they provide excellent customer service in the highly competitive grocery market (1).

Do not accept reasons that would not be appropriate for a retailer such as Tesco.

(2)AO2

QuestionNumber


7 (d) h Extending the online service it offers customers is likely to increase sales because more potential customers will be able to access the service (AO2).

h Lowering prices will make more customers want to buy their food and groceries from Tesco (AO2).

h This is due to the growth of e-commerce and the way in which people are now doing their shopping. This could mean Tesco benefits from the growth of online grocery shopping which would increase its share of online sales leading to an increase in overall market share by 2021 (Figure 5) (AO3a).

h This is because they will save money on their weekly shopping bill so customers will choose Tesco over other supermarkets particularly as Tesco sell a larger number of items compared to the discount stores. This will increase Tesco’s sales and market share (AO3a).

(9)AO2=3AO3a=3


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7 (d)Cont.

h The most appropriate strategy for Tesco is to extend its online service. This is because this is an area of growth; by 2021 £17.6bn compared to £10.5 billion will be spent online and given the competitive nature of the market Tesco needs to focus on areas of growth in order to stay ahead of the competition to increase its market share (AO3b).

h Reducing prices may not be possible without profits falling too much, as Tesco may be unable to compete with the likes of discounters such as Aldi and Lidl which have lower costs due to running less expensive stores. Therefore increasing its online delivery service may be the only way to increase sales and market share as it is an area that the discount retailers currently do not fully operate in. This will provide Tesco with a competitive advantage in terms of convenience for shoppers and enable Tesco to build on its already successful online operation and meet customer needs more exactly meaning the company should experience an increase in market share (AO3b).

AO3b=3





h Makes a judgement, providing a simple justification based on limited evaluation of business information and issues relevant to the choice made (AO3b).

Level 2 4-6 h Sound application of knowledge and understanding of business concepts and issues related to the business context although there may be some inconsistencies (AO2).

h Deconstructs business information and/or issues finding interconnected points with chains of reasoning, although there may be some logical inconsistencies (AO3a).

h Makes a judgement, providing a justification based on sound evaluation of business information and issues relevant to the choice made (AO3b).



h Makes a judgement, providing a clear justification based on a thorough evaluation of business information and issues relevant to the choice made (AO3b).

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QuestionNumber


7 (e) h Motivational techniques can help a business to attract employees (AO1a).

h Motivational techniques can help to retain employees (AO1a).

h Current motivation methods used by Tesco appear to be working in terms of attracting potential employees to the business (AO2).

h The introduction of new financial methods such as a bonus scheme may help improve employee retention because employees are committed to achieving a bonus. Similarly, non-financial methods such as job rotation can prevent boredom and make employee job roles more fulfilling (AO2).

h This means Tesco is unlikely to benefit from the introduction of new techniques in terms of attracting employees. The introduction is therefore likely to lead to increased costs and reduced profits (AO3a).

h This means employees are likely to be more motivated which means they will provide increased levels of customer service. Customer service may be a deciding factor over shoppers’ preferred choice of supermarket. Therefore if the standard is high, customers are more likely to choose Tesco over competitors, such as Lidl and Aldi, which will increase Tesco’s sales and market share (AO3a).

h New techniques are therefore unlikely to benefit Tesco in terms of attracting employees and not all stores have an employee retention problem. These measures are therefore unlikely to benefit Tesco as a whole.

h Tesco is struggling to retain employees, as employee retention is lower than the industry average and as a result, some stores have staff shortages. It is therefore likely that Tesco will benefit from new methods of motivation and, even though the employee retention problem is not in all stores, the overall impact on motivation is likely to be a benefit to Tesco in terms of customer service, sales and market share (AO3b).

(12)AO1b=3AO2=3AO3a=3AO3b=3



Level 1 1-4 h Demonstrates elements of knowledge and understanding of business concepts and issues, with limited business terminology used (AO1b).

h Limited application of knowledge and understanding of business concepts and issues related to the business context (AO2).


h Draws a conclusion, supported by generic assertions from limited evaluation of business information and issues relevant to the choice made (AO3b).


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Level 2 5-8 h Demonstrates mostly accurate knowledge and understanding of business concepts and issues, including appropriate use of business terminology in places (AO1b).

h Sound application of knowledge and understanding of business concepts and issues to the business context although there may be some inconsistencies (AO2).


h Draws a conclusion based on sound evaluation of business information and issues (AO3b).

Level 3 9-12 h Demonstrates accurate knowledge and understanding of business concepts and issues throughout, including appropriate use of business terminology (AO1b).

h Detailed application of knowledge and understanding of business concepts and issues to the business context throughout (AO2).


h Draws a valid and well-reasoned conclusion based on a thorough evaluation of business information and issues (AO3b).

Documents

Edexcel GCSE Business - Presdales School · 2020. 11. 17. · Edexcel GCSE Business Mark Scheme Paper 2b Page 3 Question Number Answer Mark 2 (a) A, E (2) AO1a Question Number Answer