Edexcel IGCSE Business Studies (4330) GCSE/Business... · Edexcel IGCSE Business Studies (4330) ... Candidates coped well with the use of the question paper as answer book. There

Summer 2006

IGCSE

Edexcel IGCSE

Business St udies (4330)

Examiners’ Report

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t hroughout t he world. We provide a wide range of qual if icat ions including

academic, vocat ional , occupat ional and specif ic programmes for employers.

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Summer 2006

Al l t he mat erial in t his publ icat ion is copyright

© Edexcel Lt d 2006

4330 Examiners' Report Summer 2006 2

Contents

1. Paper 4330 1F/2H 05

2. Paper 4330 03 11

3. Paper 4330 04 15

i. Assessment Obj ect ive 1 16

ii. Assessment Obj ect ive 2 18

iii. Assessment Obj ect ive 3 20

iv. Assessment Obj ect ive 4 22

4. Statistics 24

Edexcel Lt d holds t he copyright for t his publ icat ion. Furt her copies of t he

Mark Schemes may be obt ained f rom Edexcel Publ icat ion.



4330 / 1F – 2H: Written Paper (Foundation and Higher)

General Comments

This was t he second May series for t hese examinat ions. The overal l performance of

candidat es in t his examinat ion was again good. The mean mark for paper 2H was

very close t o t hat f rom Summer 2005, al t hough t he mean mark for paper 1F fel l

sl ight ly. Cent res appear t o be select ing and ent ering candidat es for t he

appropriat e Tier. Cent res cont inue t o cope wel l wit h t he demands of t he new

Specif icat ion and t he sl ight ly dif ferent approach t o t hat used in O Level

examinat ions. Judging by examinat ion performance, Cent res had again ent ered

t heir candidat es for t he correct Tier.

Candidat es coped wel l wit h t he use of t he quest ion paper as answer book. There

were not many occasions where candidat es used space in addit ion t o t he answer

l ines, in order t o complet e t heir answers. Cent res are again encouraged t o work

wit h t heir candidat es t o ensure t hat (most ) answers are l imit ed t o t hese answer

l ines, t he number of l ines being a good indicat or of t he expect ed lengt h of answer.

The st andard of writ t en communicat ion was general ly good, and somet imes

excel lent .

The Mark Scheme cont ains much informat ion t hat is relevant t o cent res, as fol lows.

Each quest ion indicat es t he level(s) at which it is based:

• AO 1 Demonst rat e - t his Assessment Obj ect ive t est s candidat es on t heir

abil i t y t o demonst rat e t heir knowledge and underst anding of t he business

t erm, idea or concept feat ured in t he quest ion. For example, paper 1F

Quest ion 2 (a) asks candidat es 'What is meant by product ivit y'? Command

words such as 'Def ine', 'Describe', 'Name', 'List ', 'St at e' and 'What is . . . ?'

conf irm t he quest ion is at t his level.

• AO2 Apply - t his Assessment Obj ect ive t est s candidat es' abil i t y t o relat e

t heir answer t o t he cont ext . In t his Series, candidat es were required t o

use t he informat ion given about FlyUs plc. For example, Paper 1F Quest ion

2 (b) required candidat es t o calculat e gross prof it and net prof it f igures: a

quest ion asking t hem t o recal l t he relevant formulae would have been

classed as AO1 Demonst rat e. Command words such as 'Apply' and 'Give [an

example in cont ext ] ' conf irm t he quest ion is at t his level.

• AO3 Analyse - t his Assessment Obj ect ive requires candidat es t o select ,

int erpret or ot herwise analyse some issue present ed by t he quest ion. For

example, Paper 2H Quest ion 2 (b) asked candidat es t o analyse ways in

which FlyUs plc might increase it s market share and improve it s

prof it abil i t y. Command words such as 'Analyse', 'Compare' and 'Select '

conf irm t he quest ion is at t his level.

• AO4 Evaluat e - t his most demanding Assessment Obj ect ive t est s

candidat es on t heir abil i t y t o formulat e some j udgement s. For example,

Paper 2H Quest ion 2 (c) expect ed candidat es t o j ust ify t he use of leaf let s

in a given sit uat ion. Command words such as 'Evaluat e', 'Explain why',

'Judge' and 'Just ify' conf irm t he quest ion is at t his level.


Possible answers are provided as indicat ors of what is expect ed. It remains

import ant for Cent res t o real ise t hat t he answers given in t he Mark Scheme are not

meant t o be exhaust ive. This is conf irmed by t he use of t he st at ement 'Val id point s

could include', and by t he use of t he abbreviat ion 'eg'.

The possible answers are st ruct ured using dashes and obl iques ('slashes'). It remains

t he pract ice in t his examinat ion t o use a dash in order t o separat e point s t hat are

wort h additional marks, and an obl ique t o indicat e an alternative way of making

t he same point .


4330/1F – Foundation Paper

Question 1

Part (a) was general ly wel l answered. Many candidat es achieved at least t hree of

t he f ive marks available, and some obt ained maximum marks. Part (b) was also

general ly wel l answered. Candidat es coped wel l wit h t he unusual layout of t he

quest ion, and of t en accurat ely mat ched t he obj ect ives t o t he given def init ions.

Part (c) required candidat es t o describe product ivit y. Weaker candidat es of t en

confused t his t erm wit h t he t erm 'product ion', of t en simply ment ioning 'out put ',

and t herefore gained one mark at best . The Specif icat ion cont ains t he t erm

'product ivit y' (sect ion 5.3) and Cent res are st rongly encouraged t o ensure t heir

candidat es underst and t hat product ivit y and product ion, t hough l inked, have

dif ferent meanings.

Most candidat es obt ained bot h marks for (d)(i): t here was ef fect ive use of t he

cont ext informat ion, for example t he reference t o London's populat ion (and

t herefore workforce) and it s at t ract ion for t ourist s. It was pleasing t o read so many

answers where candidat es had clearly st udied and used t he cont ext informat ion

ef fect ively.

Part (e) was not wel l answered. Part (i) was set at AO1 (Demonst rat e knowledge)

level, and expect ed candidat es t o describe TQM. However, t here was again

confusion bet ween t his and ot her t erms used in 'qual it y', part icularly bet ween TQM

and 'qual it y cont rol '. Fol lowing t he advice given in (c) above, Cent res are st rongly

encouraged t o ensure t heir candidat es underst and t he dif ferent meanings of - and

relat ionship bet ween - TQM and qual it y cont rol . Answers t o part (i i) were af fect ed

by t he confusion shown in (i), al t hough t he st ronger candidat es made some

analyt ical st at ement s t hat clearly relat ed t o t he work of FlyUs plc as an air l ine

company.

Question 2

This quest ion st art ed by asking candidat es t o ident ify how environment al mat t ers

af fect ed t he work of FlyUs plc. Relevant examples were suppl ied - usual ly relat ed

t o noise and air pol lut ion - al t hough few candidat es could t hen l ink t he examples

ef fect ively t o t he work of t he company (for example, how noise pol lut ion might

af fect f lying t imes).

Alt hough many candidat es found t his an easy t hree marks, some ignored t he

requirement t o avoid ment ioning recruit ment in t heir answers t o (b)(i). Few

candidat es provided st rong answers t o part (i i), which required t hem t o 'assess' a

pol icy. Cent res are encouraged t o ensure t heir candidat es develop t he point s t hey

make - for example 'int ernal recruit ment improves st af f morale because t he

exist ing st af f real ise t hat t hey may get promot ion if t hey work ef f icient ly'.

The vast maj orit y of candidat es gained ful l marks for t heir gross prof it and net

prof it calculat ions in (c). Workings were general ly shown, al t hough t he percent age

sign was somet imes omit t ed (wit hout penalt y).


Answers t o (d) were much weaker, and t here was evidence t hat ROCE was not a

wel l underst ood t erm, wit h confusion bet ween prof it and prof it abil i t y. As in

quest ion 1 t here was, t herefore, evidence t hat many candidat es did not have a

t horough foundat ion knowledge on which t o base t heir answers t o t hese AO1

quest ions.

Part (e) of t en generat ed some sound answers, wit h 'legal requirement ' and 't o

calculat e prof it ' being popular choices.

Question 3 – Foundation Tier (4330/1F) / Question 1 – Higher Tier (4330/ 2H)

Part (a) produced some confused answers because t here was somet imes a

misunderst anding bet ween publ ic and privat e l imit ed companies: for example,

some candidat es bel ieved t hat a plc was publ icly (government ) owned, and a

privat e l imit ed company had unl imit ed l iabil i t y. The quest ion was looking for

'dif ferences' but only a few answers made t hese dif ferences suf f icient ly clear t o

receive ful l marks.

There was some knowledge of t he nat ure of publ ic relat ions shown in answers t o

(b), al t hough many candidat es gave very general ised answers, referring t o

market ing issues rat her t han focusing on why publ ic relat ions is import ant (t he

business is in a compet it ive market , and poor PR wil l have a negat ive ef fect on it s

sales).

Part (c) was of t en wel l answered. The st ronger candidat es l inked t he media wit h

t he new rout e, for example by referring t o aspect s of market segment at ion. There

was a good underst anding shown of t he t wo media, and of advert ising issues in

general.

Not al l candidat es were comfort able wit h t he dif ference bet ween t he pricing

opt ions l ist ed in part (d), t he great est confusion being bet ween compet it ion pricing

and penet rat ion pricing. St ronger answers cont ained some relevant references t o

Airfair (t he compet it or) and/ or t o FlyUs plc being a low-cost airl ine, and how t his

lat t er fact would inf luence pricing pol icy.


4330/2H – Higher Paper

For comment s on Higher Quest ion 1, see comment s on Foundat ion Quest ion 3

above.

Question 2

Part (a) was of t en wel l answered, wit h many candidat es basing t heir answers on

t he fact t hat one 'owns' and t he ot her 'runs' a company. Answers did not have t o be

in t he cont ext of FlyUs plc, t hough many candidat es found it easy t o cont ext ual ise

t heir point s.

Bot h part s t o (b) were not wel l answered. In (i) t here was a t endency t o confuse

increasing market share wit h increasing company size, wit h references t o sel l ing

more shares: al t hough t his would increase t he capit al of FlyUs plc, of i t self i t wil l

not increase market share. Correct answers of t en focused on merger/ t akeover, and

t here were also some references t o price-cut t ing. Part (i i) again showed a general

lack of knowledge of t he dif ference bet ween prof it and prof it abil i t y: some

candidat es argued cost increases (eg more advert ising) t o l i t t le ef fect , and few

comment ed on ways such as cost -cut t ing or increasing price.

Part (c) was also weakly answered by many. Only t he st ronger candidat es decided

t o base t heir answers on t he nat ure of leaf let s (being quit e cheap t o produce or a

relat ively permanent form of communicat ion) and use t hese fact ors in relat ion t o

cust omers at airport s.

Candidat es eit her knew Herzberg's t wo-fact or t heory or did not , and so most

answers t o part (d) were eit her very good or very weak. Some candidat es resort ed

t o t rying t o apply Maslow rat her t han Herzberg, while ot hers wrot e about

mot ivat ion in general t erms only. Al t hough 'hygiene fact ors' is specif ic t o Herzberg,

t he use of t he word 'hygiene' confused some of t he weaker candidat es, who

discussed issues of personal or work hygiene such as t he need t o wash hands

regularly. Cent res are t herefore st rongly advised t o ensure as best t hey can t hat

t heir candidat es are able t o ident ify and underst and t he meaning of a word when it

is used in a specif ic cont ext (such as 'hygiene' in t he cont ext of Herzberg's t heory)

and when it occurs in general, non-business, usage.

Question 3

This quest ion wil l always be designed t o be t he most chal lenging faced by

candidat es t aking t he Higher Paper. Candidat es were expect ed t o use t he skil ls of

analysis and evaluat ion – in t his Paper when answering part s (b)(i i) and (c).

Part (a) was general ly very wel l answered, wit h t he calculat ion proving easy.

However, even many of t he st ronger candidat es eit her ignored t he percent age sign

or expressed t heir answer incorrect ly (such as 'mil l ions'). Cent res are t herefore

encouraged t o ensure not only t hat t heir candidat es can calculat e f igures

accurat ely, but also t hat t hey can describe t he result using appropriat e t erms or

symbols.

There were surprisingly many weak answers t o part (b)(i), which should have been

an easy t wo marks for most . Answers t o (i i) were of t en quit e good, wit h t he


st ronger candidat es appreciat ing t hat t he ident ical net prof it f igures did not mean

an ident ical f inancial performance when percent age comparisons (ie prof it abil i t y

rat ios) were made. This was pleasing given t he relat ive dif f icul t y of t his quest ion

(being t arget ed at AO4 Evaluat ion).

Part (c) was also t arget ed at AO4 Evaluat ion, conf irmed by t he use of t he opening

st at ement 'To what ext ent . . . ' made in t he quest ion. The dif ference in

achievement on t his quest ion was of t en down t o whet her t he candidat e read and

answered t he quest ion as set - ie, 'To what ext ent is TQM l ikely t o be import ant t o

FlyUs plc? - or whet her t he candidat e ignored t he appl icat ion t o t his company. The

st ronger answers t herefore referred t o issues t o do wit h t his air l ine business, such

as t he fact t hat it operat es in a compet it ive market and t hat it is growing as a

business, whereas t he weaker ones simply described and explained TQM in what

was a 't ext book'-t ype answer. It is import ant for candidat es t o real ise t hat t hey

must apply t heir answers when asked t o do so.


4330 / 03 – Written Alternative

General Comments

The general performance of candidat es remains encouraging al t hough t here was

evidence, in t his series, of poor basic knowledge for some candidat es t hat had an

impact on t heir performance across t he paper. There was no evidence t hat

candidat es had insuf f icient t ime and it was encouraging t o not e t hat t he maj orit y

of candidat es made good use of t he t ime available t o t hink t hrough t heir

responses. Some candidat es benef it ed f rom planning t heir responses and an

increasing number of papers were seen wit h t his wel l evidenced. Fewer candidat es

made use of addit ional sheet s of paper and Cent res are reminded t hat candidat es

should be encouraged, wherever possible, t o mat ch t heir responses t o t he space

available on t he answer book.

This paper is t aken by t hose candidat es who have chosen not t o submit coursework

and t herefore, unl ike Papers 1F and 2H, covers t he complet e range of awards, ie

A*-G. There are t wo quest ions wit h each being sub-divided in exact ly t he same

fashion, as set out below.

Quest ions 1(a) and 2(a) address Assessment Obj ect ive 1 t hat requires

candidat es t o demonst rat e t heir knowledge and underst anding of t he

specif ied subj ect cont ent .

Quest ions 1(b) and 2(b) address Assessment Obj ect ive 2 t hat requires

candidat e t o apply knowledge and underst anding using appropriat e t erms,

concept s, t heories and met hods ef fect ively t o address problems and issues.

Quest ions 1(c) and 2(c) address Assessment Obj ect ive 3 t hat requires

candidat es t o select , organise, analyse and int erpret informat ion f rom

various sources t o analyse problems and issues.

Quest ions 1(d) and 2(d) address Assessment Obj ect ive 4 t hat requires

candidat es t o evaluat e evidence, make reasoned j udgement s and present

conclusions accurat ely and appropriat ely.

Each quest ion is wort h f ive marks and hence mat ches t he balance of Assessment

Obj ect ives as appl ied t o coursework. The Examiner’ s Report for Papers 1F and 2H

gives furt her det ails on t hese Assessment Obj ect ives and t hese also apply t o Paper

03 as does t he comment ary on how t he mark scheme format works.

Cent res are encouraged t o work wit h t heir candidat es t o ensure t hat t hey have a

clear underst anding, not only of t he st ruct ure of t his paper but also of t he

Assessment Obj ect ives as t his should enable candidat es t o work t owards t heir ful l

pot ent ial .

It was again disappoint ing t o see t oo many candidat es simply re-arranging t he

words of t he st em and t he quest ion as t heir response. This st rat egy wil l never be

credit ed. Ot her candidat es used t he quest ion as an int roduct ion t o t heir response.

This does not present a problem but it remains an avoidable misuse of t he available

t ime.


Question 1

Part (a) was wel l answered. Many candidat es gained ful l marks. The most common

errors were where t elephone int erviews and product t est ing were cat egorised as

secondary research. Weaker candidat es had a t endency t o adopt a ‘ scat t er-gun’

approach t hat clearly demonst rat ed t heir lack of basic knowledge in t his area.

In part (b)(i), t he maj orit y of candidat es were able t o apply t heir knowledge and

correct ly ident ify t he t hree mont hs wit h a negat ive closing balance. Some

candidat es correct ly responded wit h t wo of t he correct mont hs but did not add t he

t hird mont h. A few candidat es gave no response t o t his quest ion.

Part (b)(i i) dif ferent iat ed wel l . The best candidat es had references t o planning,

monit oring and l iquidit y as benef it s of using a cash f low forecast . Such a response

was, ‘ A cash f low forecast shows t he est imat ed cash in and out f lows (1) on a

mont hly basis. This wil l help Ben decide when he wil l be short of cash (1) which

wil l enable him t o t alk t o his bank manager about organising an overdraf t (1) or

using anot her short -t erm met hod of f inance. It wil l also show Ben if he has t oo

much cash (1) which could be put t o bet t er use. Ben wil l know appox when he wil l

have lot s of expenses and t his wil l al low him t o plan ahead (1)’ . This candidat e has

also answered t he quest ion using t he cont ext wel l .

Most candidat es did recognise t hat cash f low relat es t o money f lowing in and out of

a business. Weaker candidat es had responses t hat addressed, incorrect ly, t he issue

of prof it . Such responses did not do wel l and t his appeared t o be a maj or

misconcept ion for t hose candidat es.

In part (c), t his was t he f irst t ime t hat t his st yle of quest ion has been used and

alt hough it did not perform as wel l as had been hoped t here were few candidat es

t hat did not achieve at least one mark. The market ing t erms t hat were consist ent ly

misunderst ood and t herefore were not correct ly analysed f rom t he case st udy were

market segment and market share.

Part (d) was general ly wel l answered. Where is was not it was due t o candidat es:

(i) st at ing benef it s t o employee and employers or concent rat ing j ust

on employers when t he quest ion clearly required candidat es t o

st at e t he benef it s t o employees only,

(i i) ignoring t he reference t o of f -t he-j ob t raining and int roducing

eit her or bot h induct ion and on-t he-j ob t raining int o t he response,

(i i i) demonst rat ing knowledge but not using t hat knowledge t o assess

t he benef it s.

A poor answer was, ‘ Of f -t he j ob t raining is when employees are t rained away f rom

t he act ual j ob or place. The benef it s are t hat it is less expensive t hen work and

pract ising wit h real t hings l ike machines. On-t he-j ob t raining can also be dangerous

if t he employee is doing it wrongly he can hurt himself or hurt ot hers’ . In t his

response basic knowledge of of f -t he-j ob t raining is present but t here are no marks

for knowledge in t his quest ion. The cost argument wil l relat e t o t he employer not

t he employee and t he f inal sent ence relat ing t o on-t he-j ob t raining is not required

by t he quest ion. This response gained no marks.


A good response was, ‘ . . . carried out by special ist t rainers not only in t he j ob but

in t raining (1) . . . l ikely t herefore t o receive bet t er t raining t han on-t he-j ob (1) . .

. It can be very mot ivat ing for an employee (1) . . . The t raining should make t hem

more ef f icient at t heir j ob which could result in an increase in pay/ monet ary

reward (1) . . . The t raining may also result in a bet t er j ob or t he employee may

receive more delegat ed t asks f rom t he manager due t o t heir increased capabil i t y .

. . (1)’ .

Question 2

Part (a)(i) was general ly wel l answered. It did, however, indicat e a def iciency in

knowledge for some candidat es who confused t he four fact ors of product ion wit h

t he four Ps. Many candidat es gave al l four fact ors of product ion. This was not

necessary and candidat es who did t his were not penal ised.

Part (a)(i i) was poorly answered eit her because t he candidat es did not have t he

knowledge or t hey did not complet e bot h part s of t he quest ion. The usual mark for

t his quest ion was one mark where a correct example had been st at ed. The meaning

of t he t erm was usual ly missing. A good response was, ‘ An act ivit y or business who

uses a great er proport ion of machinery t han of manual labour (1), for example a

fact ory which builds t oys using robot s rat her t han people (1)’ . The most common

example given was t he manufact ure of cars.

In part (b) most candidat es gained t hree marks for t his quest ion because t hey were

able t o apply t heir knowledge of t he t hree sect ors t o t he cont ext of t he quest ion.

Only a few candidat es were capable of more t han basic appl icat ion. In t he

fol lowing response t he candidat e goes beyond basic appl icat ion t o gain four marks.

‘ In t he primary sect or lumberj acks cut down t rees (1) and t hese are made int o

planks (1) . . . In t he secondary sect or t he wood is assembled int o t he chairs (1) . .

. In t he t ert iary sect or t he chairs wil l be sent over t o t he shops where t hey wil l be

sold (1). If t his candidat e had replaced ‘ sent over’ wit h a specif ic reference t o

t ransport / dist ribut ion t hen al l f ive marks would have been available.

Part (c) was not wel l answered and many candidat es did not have knowledge of

t arif f s t o respond ef fect ively. Many candidat es missed t he emboldened phrase in

t he quest ion ‘ . . . a count ry t hat set s t hem. ’ and demonst rat ed a l imit ed

knowledge of t arif fs t hat did not gain any marks. A number of candidat es wrot e

responses t hat referred t o currency exchange.

There were, however some good responses and one fol lows. ‘ . . . By set t ing t arif fs,

t he government or count ry is prot ect ing it s own businesses f rom mult inat ional

compet it ion (1) eg if Spain put s a 50% t arif f on al l import ed goods Spanish

businesses would do wel l because people would f ind it cheaper t o buy t heir

product in Spain (1) . . . i f Spanish business did wel l , t his would encourage

employment and benef it t he Spanish economy (1). However t his lack of

compet it ion may t ake away business mot ivat ion t o be ef f icient (1) and ot her

count ries could also set t arif fs which would reduce t he t rading possibil i t ies (1). ’

In part (d) t he best candidat es concent rat ed on t he use of ret ained prof it s and

gave accurat e and real ist ic j ust if icat ions for t heir use. Typical ly t heir responses

would only address t he use of ret ained prof it s and t here would be no reference t o

bank loans as t hat decision had been made. It was pleasing t o see how many


candidat es picked up t he fact t hat t he business had been t rading for t en years.

Such candidat es demonst rat ed t he import ance of a careful reading of t he st em t o

improve and enhance t heir response t o t he quest ion.

Weaker candidat es gave a mixed response t hat compared t he use of ret ained

prof it s and a bank loan. Whilst such a response would gain some marks it could not

gain ful l marks. One candidat e responded, ‘ It is a good decision because when t hey

t ake loan f rom t he bank t hey wil l have t o pay wit h int erest and t he amount t hey

need may be t he bank wil l not give (1). Using ret ained prof it t his means t he

business has grown wit h it s own st rengt h (1)’ .

The weakest candidat es only demonst rat ed knowledge of ret ained prof it s or bank

loans and as t he quest ion had t o meet Assessment Obj ect ive 4 no marks could be

given.


4330/04 – Coursework Option

In t he May 2006 series one cent re ent ered candidat es for t his opt ion. In t his series

f ive Cent res ent ered candidat es. Each of t hese Cent res has received a report t hat

is specif ic t o t hem.

As for May 2005 t he int ent ion of t his report is t o give furt her guidance on t he

appl icat ion of t he coursework crit eria t o assist ot her Cent res in deciding whet her

t o ent er candidat es for coursework or for t he 03 paper. The format wil l be similar

t o t hat used in t he May 2005 report wit h t his addit ion of i t al icised comment s t hat

relat e specif ical ly t o t he work seen in t his series.

The crit eria are not hierarchical and can be awarded as and when t hey are found

wit hin t he coursework.

The crit eria t hat were of t en inaccurat ely appl ied were:

Assessment Objective 1 – 1.2, 1.6, 1.8 and 1.9;

Assessment Objective 2 – 2.4 and 2.7;

Assessment Objective 3 – 3.6, 3.7 and 3.9;

Assessment Objective 4 – 4.5, 4.7, 4.8 and 4.9.

The crit eria t hat were of t en not appl ied when t hey should have been were:

Assessment Objective 3 – 3.4 and 3.5

Assessment Objective 4 – 4.1, 4.2, 4.3 and 4.4

Candidat es can raise t heir achievement by always:

• present ing t heir act ion or business plans in t he fut ure t ense (2.3, 2.6, 2.9);

• ident ifying act ual sources used by name (1.2, 3.4, 3.7);

• present ing report s in a recognised report format (3.9);

• doing more t han just describe (1.6, 1.7, 1.9, 2.8, 3.5, 3.8, 4.7, 4.8)

• present ing original work and not work copied f rom t ext books, phot ocopies or

downloads f rom CD-ROMs or t he Int ernet ;

• being concise and keeping volume of erroneous mat erial t o t he minimum (eg

only mat erial which is capable of being given crit eria).

Cent res should not e t hat where t he market ing coursework is set it is not necessary

for candidat es t o include a copy of every quest ionnaire t hey have complet ed. It is

suf f icient t o include a copy of eit her an uncomplet ed quest ionnaire or one

complet ed quest ionnaire. What is import ant is t he use t hat candidat es have made

of t he dat a t hey have col lect ed f rom t heir quest ionnaire and t his wil l be evidenced

in t he report .


ASSESSMENT OBJECTIVE 1 Demonstrate knowledge and understanding of the specified subject content

1.1 Candidat es are expect ed t o have a basic knowledge of t he subj ect cont ent

so t hey could ment ion, for example, prof it , revenue, cost s in a given

cont ext and gain t his cri t erion. Obviously knowledge f rom any sect ion of t he

Specif icat ion is equal ly accept able.

1.2 Candidat es are expect ed t o ident ify t heir sources of knowledge. This

crit erion is l inked t o 3.4 and 3.7. The plural should be not ed and t o gain t his

crit erion candidat es would have t o have somewhere in t heir coursework

somet hing along t he fol lowing l ines, ‘ In doing t his coursework I used a

t ext book cal led Business St udies by Karen Borringt on and Pet er St imson and

received help f rom my t eacher Mr A. N. Ot her’ . In t his case t he candidat e

has ident if ied f rom t he t ext and people group.

For t he lat t er group t he person must be named and a candidat e who wrot e

my business st udies t eacher would not be ident ifying t he person. For t he

ot her t wo groups relevant references would be for organisat ions, Tesco plc

and for elect ronic a ful l web address such as www.bized.ac.uk. In a wel l

designed piece of coursework t his crit erion would normally be found eit her

in t he act ion plan or in an informat ion log kept by t he candidat e.

In t his series t his cr i t er ion was of t en incorrect ly awarded when (i) t here was only one source given or (i i ) t he ident i f icat ion was incomplet e, eg t he t i t le of a t ext book had been given but not t he aut hor(s).

1.3 Candidat es have t o ident ify a minimum of two business aims or obj ect ives.

These must not be personal aims of t he candidat e. The business aims should

be in t he cont ext of t he problem or issue t hat t he coursework is addressing.

For most candidat es t hey are l ikely t o be f rom t he fol lowing, prof it ,

prof it abil i t y, survival , expansion, market share.

In t his series t his cr i t er ion were t oo of t en incorrect ly given for candidat es personal aims. In most cases t he aims given were generic in t he sense t hat t hey were survival , prof i t and expansion. This is accept able but obviously aims t hat relat e t o t he act ual business being used have t he benef i t of great er real ism.

1.4 Candidat es have t o recognise a minimum of two const raint s. It is suf f icient

t hat candidat es recognise t he const raint . Examples of const raint s could be

locat ion, capit al or communicat ion.

1.5 Candidat es have t o recognise dif ferences or check availabil i t y. If i t is

dif ferences (t he most usual reason for t his crit erion t o be given) t hen two

dif ferences must be ment ioned. Financial dif ferences could refer t o sources

of f inance; in market ing it could be primary and secondary research, in

product ion j ob and bat ch, in Human Resources on-t he-j ob and of f -t he-j ob

t raining. The availabil i t y opt ion in t his crit erion is rarely seen. To gain it

candidat es might for sources of f inance, look at t he availabil i t y of dif ferent

sources in t he cont ext of t he problem or issue.


1.6 Candidat es have t o consider inf luences. The word ‘ consider’ appears in a

number of crit eria, specif ical ly 1.7, 2.4, 3.6, 4.4 and 4.6. In each of t hese

crit eria consider means t hat t he candidat e has t o do more t han j ust st at e

fact s. Candidat es have t o be t aught t o del iberat e and t o t hink about , in t his

case t he cont ent of t he Specif icat ion. It is at t his point t hat t he

‘ underst and’ part of t his Assessment Obj ect ive real ly comes int o play. A

candidat e who j ust l ist s point s relat ing t o locat ion wil l not have met t he

crit erion whereas t he candidat e who looks at locat ion wit hin a cont ext and

shows evidence of t hought and del iberat ion wil l have met t he crit erion.

Candidat es’ work where t his cr i t er ion was incorrect ly given did not demonst rat e t he ‘ consider’ aspect as required. General ly only knowledge was present wit h no underst anding.

1.7 Candidat es have t o consider al t ernat ives f rom a knowledge and

underst anding perspect ive. Taking as an example measuring success, t hen a

successful candidat e wil l be able t o show t heir clear underst anding of how

t he dif ferent ways of measuring success can be used wit hin in t he cont ext

of t he problem t hey are deal ing wit h.

1.8 This is of t en seen as a dif f icult crit erion t o give. It is not . Teachers wil l

inst inct ively know when a candidat e is showing t heir own sound knowledge

and are not j ust repeat ing what t hey have found in a t ext book or a

download f rom t he int ernet . A candidat e looking at t he way businesses

organise t hemselves would be expect ed t o demonst rat e and underst and

wel l t wo forms of organisat ion, say part nerships and f ranchises. This would

go beyond simple st at ement s about part nerships and f ranchises and would

demonst rat e clear underst anding by t he candidat e.

The recognit ion of relat ionships could be bet ween revenue and cost s,

employer and employee.

Candidat es who had been given t his cr i t er ion general ly did not demonst rat e sound knowledge and i t was usual ly dif f icul t t o f ind evidence of t heir underst anding of what t hey had present ed.

1.9 Candidat es would be expect ed t o make crit ical comment s on t he subj ect

cont ent or t o make comparisons making use of t heir own knowledge and

underst anding.


ASSESSMENT OBJECTIVE 2 Apply knowledge and understanding using appropriate terms, concepts,

theories and methods effectively to address problems and issue.

2.1 Candidat es are expect ed t o be able t o st at e t he basic t erms, concept s or

t heories t hat relat e t o business, for example t hey might ment ion t hat a sole

t rader t akes al l t he risks and has t o do everyt hing t hemselves if t he cont ext

and problem were so relat ed.

2.2 Candidat es are expect ed t o apply basic met hods t o t he problem or issue

t hey are considering. This could be a graph, chart , t al ly or t able.

2.3 Candidat es wil l prepare a basic act ion plan. This could be as simple as a few

sent ences st at ing what t he candidat e int ends t o do. It must be in t he fut ure

t ense. Candidat es should be encouraged t o draw up an appropriat e act ion

plan t hat set s out what t hey are going t o do, how t hey are going t o do it

and what t hey need t o carry out t heir plan.

2.4 Candidat es wil l need t o consider issues or legislat ion. Most candidat es t end

t o go for t he legislat ion opt ion. If t his is so candidat es must be t old t hat t his

is t he ‘ Apply’ Assessment Obj ect ive and it is not suf f icient j ust t o l ist

det ails of legislat ion but t hat t hey must show how t his legislat ion wil l

impact upon t heir issue or problem.

Candidat es who give j ust t he det ai ls of a piece of legislat ion cannot be given t his cr i t er ion. They have t o apply t he legislat ion t o t he business or problem t hat t hey are deal ing wit h and of t en his was not done. In a number of inst ances t his cr i t er ion had been indicat ed against j ust a l ist of legislat ion t i t les t hat may or may not have been relevant t o t he business/ problem under considerat ion.

2.5 Candidat es wil l be given t his crit erion where t he met hods being appl ied are

relevant t o t he t opic being st udied or t he issue or problem being

considered.

2.6 Candidat es wil l have already met 2.3 and wil l now furt her develop t heir

act ion plan by adding deadl ines for complet ion and indicat ing if such

deadl ines have been met and if not why not .

2.7 Candidat es have t o undert ake t hree dist inct act ivit ies; (i) recognise

st rengt hs of ideas t hey have used, (i i) recognise l imit at ions of ideas t hey

have used and t hen (i i i) make decisions. In many cases t his could be

achieved t hrough a SWOT analysis if relevant t o t he issue or problem being

addressed. It does not have t o be a SWOT analysis as long as t here are a

minimum of t wo st rengt hs, t wo l imit at ions and t wo decisions.

Of t en given incorrect ly where candidat es had no evidence of t he t hree element s of t his cr i t er ion. The element t hat was usual ly missing relat ed t o a decision. There were SWOT analyses seen but t here was no evidence of how t he informat ion had led t o any decisions, i f such were present , and usual ly t hey were not .


2.8 The candidat e wil l have ef fect ively addressed t he issue or problem t hat has

been set t hrough t he use of t heir knowledge and underst anding and

appl icat ion of appropriat e business t erms, concept s, t heories and met hods.

2.9 Candidat es wil l present t heir act ion plans, probably as a t able, which wil l

include ful l references t o t he sources used, t he value of t hese sources,

dat es and deadl ines and an indicat ion of changes t o t he original plan wit h

reasoning.


ASSESSMENT OBJECTIVE 3 Select, organise, analyse and interpret information from various sources to

analyse problems and issues.

3.1 Candidat es wil l gat her basic informat ion f rom t he sources t hat t hey have

indicat ed in 1.2. A t ypical response could be: ‘ I went t o see t he bank

manager and t he local building societ y t o get my informat ion on borrowing

money for a business’ . This would t hen be fol lowed by an indicat ion of t he

relevant informat ion gat hered f rom t hat source.

3.2 Candidat es can record informat ion, be it t ext ual, numerical or graphical, in

a number of format s. These could include candidat e’ s own not es, t ables,

chart s, graphs and diagrams as appropriat e.

3.3 Candidat es can col lat e informat ion in a number of ways. Examples could

include a t al ly chart t hat relat es t o a quest ionnaire, a pie chart for t he

purpose of comparison, a spreadsheet showing cash f low or report s f rom a

dat abase.

3.4 Candidat es wil l eit her gain t his t hrough evidence of having used t hree

sources or, and t his is more l ikely, t hrough demonst rat ing t heir abil i t y t o

organise and use t he informat ion t hey have gat hered.

Under appl ied in many cases. Al t hough many candidat e wi l l not gain t his t hrough t he use of t hree sources i t is rare t hat a candidat e cannot gain i t f or organising and using t he informat ion t hey have gat hered.

3.5 Candidat es wil l be able t o int erpret and analyse t he evidence t hey have

gat hered, recorded and col lat ed. They might , for example, comment on a

graph relat ing t o prof it or responses t o part s of a quest ionnaire t hey have

carried out .

This was general ly under appl ied by some Cent res and i t was usual t o f ind t he necessary evidence for i t in most pieces of coursework.

3.6 Candidat es are expect ed t o consider al t ernat ive ways of select ing,

organising and int erpret ing. This could be evidenced t hrough t he use of

dif ferent t ypes of graphs so t he most suit able is chosen t o mat ch t he

purpose or t hrough a considerat ion of t ypes of quest ions in a quest ionnaire.

3.7 Candidat es must have made use of al l four sources and must t hen furt her

demonst rat e clearly t he syst em t hey have used t o ensure t hat t he

informat ion t hey have gat hered does what t hey have planned for it t o do.

This crit erion cannot be given j ust for t he use of four dif ferent sources. It is

possible t hat a very good act ion plan as explained in 2.9 might enable a

candidat e t o achieve t his crit erion.


When t his was given i t was usual ly possible t o f ind t he four sources t hat had been used but i t was not possible t o f ind evidence of t he syst emat ic approach t hat t he candidat e had used.

3.8 Candidat es are expect ed t o use t heir informat ion wit h specif ic reference t o

t he issue or problem t hey have been set and t hat t he use of t his informat ion

is bot h ef fect ive and val id in addressing t hat issue or problem.

3.9 Candidat es should not e t he t wo key words; t hese are logical and

comprehensive. Logical impl ies t hat t here is a recognisable format t o t he

report or present at ion and comprehensive impl ies t hat al l t hat has t o be

covered has been covered.


ASSESSMENT OBJECTIVE 4

Evaluate evidence, make reasoned judgements and present conclusions

accurately and appropriately.

4.1 Candidat es are required t o make at least t wo basic comment s t hat have an

impl ied sense of eit her j udgement or evaluat ion. A t ypical response might

say: ‘ The f igures show The Body Shop has not got a very high net prof it

margin, which could mean t hat t he f irm is not very good at cont rol l ing

cost s’ .

4.2 Candidat es are required t o draw a minimum of t wo conclusions t hat relat e

t o t he issue or problem t hey have been set and t hat are support ed by what

has already been writ t en. Again, a t ypical response might be: ‘ When new

employees were t rained in t he fact ory t hey kept get t ing int errupt ed so it

was agreed t hat in fut ure al l t raining would t ake place at a Col lege’ . For

t he crit erion t o be given anot her conclusion, relat ed t o t he t ask, would st i l l

be required.

4.3 Candidat es can make reference t o eit her social , f inancial or environment al

ef fect s, but t hey must be ef fect . So t here could be t wo f inancial ef fect s or

one social and one environment al ef fect , but t here must be t wo. A t ypical

social ef fect might be: ‘ By engaging t he employees I wil l be helping Cairo

and t he wider Egypt ian economy in a small way by reducing

unemployment ’ .

General ly appl ied wit h some harshness by Cent res. In most pieces of coursework sampled t here was suf f icient evidence t o warrant t he appl icat ion of t his cr i t er ia.

4.4 Candidat es are expect ed t o consider any result s t hey have indicat ed in t heir

work or make a l imit ed at t empt at analysis and conclusion. It should be

not ed here t hat a ful l conclusion is not required but t here should be

evidence of an at t empt at making a conclusion f rom t he analysis.

4.5 Candidat es can gain t his crit erion t hrough t he st at ement of a hypot hesis

and t hen eit her proving or disproving it . When using a quest ionnaire a

candidat e can st at e what t hey t hink t he opinion wil l be and t hen compare

t hat wit h t he fact s gat hered f rom t he quest ionnaire. Limit ed conclusions

are required. The fol lowing example gives an indicat ion of what is being

looked for. ‘ The cash f low gave an est imat e of t he amount l ikely t o be

made and spent in t he f irst 12 mont hs. However t he act ual income and

expendit ure showed t hat £40,000 and not £30,000 had t o be invest ed. This

improved overal l cash-f low. ’

4.6 Candidat es would develop t he basic references given in 4.3 and would show

t hat t hey had t hought about t he ef fect s and not j ust described t hem. Again

such considerat ions can be for t he same area of dif ferent areas.

4.7 Candidat es need t o not e t hat a minimum of t wo out comes need t o be

evaluat ed and t hat t here must be an indicat ion of at least t wo

improvement s.


4.8 Candidat es need t o present a det ailed evaluat ion based on what t hey have

researched and writ t en and t he suggest ed improvement s (a minimum of

t wo) have t o be j ust if ied in t he l ight of t heir own f indings.

4.9 Whilst 4.3 and 4.6 can be of a more general nat ure t his crit erion requires

candidat es t o l ink t he f inancial , social or economic ef fect s t o t he

suggest ions t hey have made.


4330 Statistics

Option 1 : Written Paper 1F with Written Alternative (Paper 03)

A*

A

B

C

D

E

F

G

Foundation

Tier 43 38 33 29 25

Option 2 : Written Paper 1F with Coursework (Paper 04)

A*

A

B

C

D

E

F

G

Foundation

Tier 44 38 33 28 23

Option 3 : Written Paper 2H with Written Alternative (Paper 03)

A*

A

B

C

D

E

F

G

Higher

Tier 80 66 52 39 28 22

Option 4 : Written Paper 2H with Coursework (Paper 04)

A*

A

B

C

D

E

F

G

Higher

Tier 79 66 53 40 29 23

Note: Grade boundaries may vary f rom year t o year and f rom subj ect t o

subj ect , depending on t he demands of t he quest ion paper.


For more informat ion on Edexcel qual if icat ions, please visit www.edexcel.org.uk/ qual if icat ions Alt ernat ively, you can cont act Customer Services at www.edexcel.org.uk/ ask or on 0870 240 9800 Edexcel Limit ed. Regist ered in England and Wales no.4496750 Regist ered Of f ice: One90 High Holborn, London, WC1V 7BH

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Edexcel IGCSE Business Studies (4330) GCSE/Business... · Edexcel IGCSE Business Studies (4330) ... Candidates coped well with the use of the question paper as answer book. There