Mark Scheme Extra Assessment Material For First Teaching September 2017
Mark Scheme Extra Assessment Material For First Teaching September 2017
Mark Scheme Extra Assessment Material For First Teaching September 2017
C Enterprise
(1)
Question Answer Mark
Number
1(a) (ii) AO1 1 mark
A Car manufacturer
(1)
Question Answer Mark
Number
1(a) (iii) AO1 1 mark
D Seasonal
(1)
Question Answer Mark
Number
1(a) (iv) AO1 1 mark
D Maturity
(1)
Question Answer Mark
Number
1(a) (vi) AO2 1 mark
B 27.1%
(1)
This will mean the business can keep total costs as low as
possible (1), because e-tailers do not need to have large
premises for customers to visit (1). As a result, the business
has the potential to achieve higher profit margins (1).
AO2
• Beauty By Edge can promote its hair products on a wider scale by
using e-newsletters.
• Beauty By Edge can gain lower total costs as a result of promoting
its manicures using its website.
AO3
• This will increase market size, allowing to Beauty By Edge to
increase its global sales of hair extensions and other beauty products
and therefore generate higher revenue.
• This is because publishing information and offers of beauty
treatments online is cheaper than advertising in beauty magazines
and publications. As a result of this Beauty By Edge will enjoy a
higher profit margin.
This will mean the business will have higher labour costs (1),
therefore the business is likely to have to charge higher prices
(1). As a result, the business is likely to have lower revenue
(1).
AO2
• Option 1 - This involves staff working closely with existing, skilled
stylists.
• Option 2 - This involves new staff being trained outside of the salon
at an external college by tutors and other professionals.
AO3
• Option 1 - Workers can see first-hand the type of work to be done
and can work closely with existing skilled stylists,
• Option 2 - As a result it means that Cindy and other staff can
concentrate on customers in the salon, and not have to be
supervising new trainee staff. This will lead to more satisfied
customers as they feel they are the centre of attention.
AO4
• Option 1 - However, staff can be very needy in terms of the time of
other stylists in the salon. As the main priority for the business is
providing a high-quality service for customers, having unqualified
stylists may damage this reputation.
• Option 2 - However, this might mean that the new staff are not
trained in a realistic salon environment and therefore lack the skills
and standard expected by Cindy.
This means that the salon will have cash available to be able to
pay make-up suppliers (1). Therefore, the salon will have less
risk of insolvency (1).
NB Do not accept answers that state salon A has the highest (2)
payments, as this does not give the net cash flow position.
Question Indicative content
number
3(d) AO2 (3 marks)/AO3 (3 marks)
AO2
• The salon will be able to assess the extent of its outgoings relative to
the cash inflow.
• Salon B will be able to see how much cash is available within the
business.
AO3
• This will enable the salon to decide whether it needs to seek cheaper
supplies for its beauty products, or to charge higher prices. Both
actions will help the salon to improve its net cash flow.
• Therefore, salon B will be able to make informed spending decisions
about new beauty supplies based on accurate information.
AO2
• Option 1 - By opening more salons will increase the opportunities for
customers who are looking for beauty treatments.
• Option 2 - Developing her own brand beauty products will enable
Beauty By Edge to capture market share from existing brands.
AO3
• Option 1 - Therefore, the business will generate greater revenue
which will increase cash inflow and, providing outflows do not
increase by a greater amount, will increase net cash flow.
• Option 2 - Therefore, sales revenue will increase and improve the
net cash flow position.
AO4
• Option 1 - However, although new salons will generate greater
revenue, they will incur large cash outflows associated with start-up
costs. This will lead to lower net cash flow.
• Option 2 - However, own brand beauty products may struggle to
become established in a market dominated by established beauty
brands. As a result the costs associated with the development of
new products may be greater than the revenue generated and net
cash flow may worsen.
(7 000 Dhs ÷ 35 000 Dhs) x 100 Award full marks for correct
(1) numerical answer without
working.
Answer: 20% (1) (2)
AO2
• Fringe benefits will help stylists to feel valued by Beauty By Edge.
• Beauty By Edge operates in a competitive market and fringe benefits
are an effective way to motivate employees who may be tempted by
rival salons.
AO3
• Therefore, they will feel obliged to work hard to develop relationships
with customers who may then pass on by word of mouth how good
the service at Beauty By Edge is. As a result the business may see an
increase in repeat purchase.
• This will allow Beauty By Edge to retain its stylists who may have
developed strong relationships with customers. This will lead to
greater repeat purchase by customers.
AO1
• A flat organisation structure has a small chain of command and short
span of control.
• A flat organisation structure will help stylist to feel that they belong to
Beauty By Edge.
AO2
• This is shown in Figure 4 as lead stylists have close control over stylist in
their team.
• This is because they are closely linked to more senior stylists and line
managers.
AO3
• Therefore, standards of treatments can be maintained as all staff are
closely controlled and Cindy can ensure that all stylists are clear of what
is expected.
• Therefore, Beauty By Edge can generate staff loyalty which allows close
relationships to be built with customers who will want to trust the people
responsible for their beauty treatment.
AO4
• However, this may limit the scope for stylists to be creative. As the
beauty market is based on creativity and individuality, such a tight
organisation structure may be limiting for stylists who may choose to
find jobs in other salons.
• However, this might mean that more senior stylists have to spend
time supervising and overseeing other stylists, which might detract
from their role in helping to achieve high levels of customer
satisfaction.
Level Mark Descriptor
0 No rewardable material.
Level 1 1–4 • Demonstrates elements of knowledge and understanding of
business concepts and issues, with limited business
terminology used (AO1).
• Limited application of knowledge and understanding of
business concepts and issues to the business context (AO2).
• Attempts to deconstruct business information and/or issues,
finding limited connections between points (AO3).
• Draws a conclusion, supported by generic assertions from
limited evaluation of business information and issues (AO4).
Level 2 5-8 • Demonstrates mostly accurate knowledge and understanding of
business concepts and issues, including appropriate use of
business terminology in places (AO1).
• Sound application of knowledge and understanding of business
concepts and issues to the business context although there
may be some inconsistencies (AO2).
• Deconstructs business information and/or issues, finding
interconnected points with chains of reasoning, although there
may be some logical inconsistencies (AO3).
• Draws a conclusion based on sound evaluation of business
information and issues (AO4).
Level 3 9-12 • Demonstrates accurate knowledge and understanding of
business concepts and issues throughout, including appropriate
use of business terminology (AO1).
• Detailed application of knowledge and understanding of
business concepts and issues to the business context
throughout (AO2).
• Deconstructs business information and/or issues, finding
detailed interconnected points with logical chains of reasoning
(AO3).
• Draws a valid and well-reasoned conclusion based on a
thorough evaluation of business information and issues (AO4).