May 21 U1 MS

Mark Scheme (Provisional)
Summer 2021
Pearson Edexcel International Advanced

Subsidiary
In Business (WBS11/01)
Unit 1: Marketing and people
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Summer 2021
Question Paper Log Number P64945A
Publications Code WBS11_01_2106_MS
All the material in this publication is copyright
© Pearson Education Ltd 2021
General Marking Guidance
• All candidates must receive the same

treatment. Examiners must mark the first candidate in
exactly the same way as they mark the last.
• Mark schemes should be applied positively. Candidates
must be rewarded for what they have shown they can do
rather than penalised for omissions.
• Examiners should mark according to the mark scheme
not according to their perception of where the grade
boundaries may lie.
• There is no ceiling on achievement. All marks on the mark
scheme should be used appropriately.
• All the marks on the mark scheme are designed to be
awarded. Examiners should always award full marks if
deserved, i.e. if the answer matches the mark
scheme. Examiners should also be prepared to award
zero marks if the candidate’s response is not worthy of
credit according to the mark scheme.
• Where some judgement is required, mark schemes will
provide the principles by which marks will be awarded
and exemplification may be limited.
• When examiners are in doubt regarding the application
of the mark scheme to a candidate’s response, the team
leader must be consulted.
• Crossed out work should be marked UNLESS the
candidate has replaced it with an alternative response.
Question Answer Mark
Number
1(a) Knowledge 2
Up to 2 marks for defining the term ‘demand’ e.g.

• consumer's desire to purchase goods and services (1) at a given
price, at a given time (1).
(2)

Number
1(b) Knowledge 1, Application 2, Analysis 1
Quantitative skills assessed:
QS2: Calculate, use and understand percentages and percentage
change.
Knowledge
1 mark for identifying a suitable formula for percentage:
• revenue of top three brands / total revenue x 100 (1)
Application
Up to 2 marks for selecting the correct data:
• 18+12.40+11.80 = 42.2 (1) / 130 x 100 (1)
Analysis
1 mark for calculating the percentage share:
• 32.46% (1)
NB: If no working is shown, award marks as follows:

If the answer given is 32.46% award 4 marks.
If the answer given is 32.46 award 3 marks.
(4)
Number
1(c) Knowledge 2, Application 2, Analysis 2
Knowledge
Up to 2 marks for defining pricing strategy, e.g.
• a method used by a business when deciding (1) the price at which a
product is sold (1).
OR
For giving two factors that may determine the pricing strategy, e.g.
• level of competition (1); cost and the need to make a profit (1).
Application
Up to 2 marks for answers contextualised to the chocolate market, e.g.
• there is a high level of competition in the global chocolate market
from manufacturers such as Mars and Ferrero (1)
• cocoa is the key ingredient in the manufacture of chocolate
products, and due to uncertainty in the market the cost of cocoa is
likely to increase (1).
Analysis
Up to 2 marks for reasons / causes / consequences for the chocolate
market, e.g.
• this may lead manufacturers to use a competitive pricing strategy
due to the large number of substitutes (1)
• this may lead the chocolate manufacturers to use a cost-plus
strategy due to rising input costs (1).
(6)
Question Indicative content
Number
1(d) Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of
the points that candidates may make but this does not imply that any of these
must be included. Other relevant points must also be credited.
Knowledge, Application, Analysis, Evaluation – indicative content
• Motivation is the reason for people's actions, willingness and

goals.
• Ferrero regards its employees as part of the family who contribute
to the growth of the business. This may create a sense of
belonging and lead to Ferrero retaining the best employees.
• Every employee is inspired to innovate, starting from the first day
they join. This will motivate workers to be creative and help Ferrero
to produce superior chocolates in the competitive market in which
it operates.
• Ferrero motivates employees financially by paying a competitive
wage. This is important to retain and attract the best people in the
industry.
• Motivated employees feel valued and part of a team. Ferrero asks
employees for suggestions as well as analysing employee
feedback. This should improve productivity at Ferrero.
• However, methods of motivating employees can be costly.
Providing extensive training programmes and attractive wages will
increase the costs for Ferrero. This may push up prices of its
products which may result in loss of competitiveness.
• Ferrero asks all employees to act like entrepreneurs and provide
suggestions for improvement. Highly trained and motivated
employees may leave the business and work for competitors once
trained, which will increase the recruitment costs.
Level Mark Descriptor
0 No rewardable material.
Level 1 1–2 Isolated elements of knowledge and understanding – recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–5 Accurate knowledge and understanding.
Applied accurately to the business and its context.
Chains of reasoning are presented, showing cause(s) and/or effect(s)
but may be assertions or incomplete.
An attempt at an assessment is presented that is unbalanced and
unlikely to show the significance of competing arguments.
Level 3 6–8 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Logical chains of reasoning, showing cause(s) and/or effect(s).
Assessment is balanced, well contextualised, using quantitative and/or
qualitative information, and shows an awareness of competing
arguments/factors.
Number
1(e) Indicative content guidance
• Segmentation is dividing the market into groups of people with similar

attributes or common characteristics.
• The global chocolate market is segmented in a number of ways such
as type of chocolate, sale frequency, organic and seasonal chocolates.
• Focusing on specific market segments allows a company such as
Ferrero to analyse segments of the markets and tailor products to
meet the particular needs of those customers.
• Market segmentation helps to direct advertising and promotion to
specific groups of customers, e.g. those looking for health benefits,
and therefore help to make marketing more effective.
• Market segmentation can help chocolate suppliers to identify
underserved customers, such as those seeking organic and fair-trade
chocolate, which provide the opportunity to increase sales.
• It helps a company to focus on the most profitable and productive
segments of the market to increase revenue and profitability.
• However, segmentation increases costs. When a company attempts to
serve different groups of customers the cost of production rises as
well as research, promotional and distribution costs.
• By focusing on providing niche chocolates there is a danger that this
specialisation could lead to problems if consumers change their
purchasing habits significantly.
• The market segments identified may be too small, e.g. organic
chocolate, and may not generate sufficient sales to be viable/profitable
for the business.
0 A completely inaccurate response.
Level 2 3–4 Elements of knowledge and understanding, which are applied to the
business example.
Chains of reasoning are presented, but may be assertions or
incomplete.
A generic or superficial assessment is presented.
behaviour/context.
Analytical perspectives are presented, with developed chains of
reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using quantitative and/or
qualitative information, though unlikely to show the significance of
competing arguments.
behaviour/context.
A coherent and logical chain of reasoning, showing cause(s) and/or
effect(s).
Assessment is balanced, wide ranging and well contextualised, using
quantitative and/or qualitative information and shows an awareness of
competing arguments/factors, leading to a supported judgement.
Number
2(a) Knowledge 2
Up to 2 marks for defining the term ‘customer loyalty’, e.g.

• To continue buying (1) from a specific seller/manufacturer (1).
(2)

Number
2(b) Knowledge 1, Application 2, Analysis 1
Quantitative skills assessed:

QS2: calculate, use and understand percentages and percentage
changes.
QS7: interpret values of price and income elasticity of demand.
Knowledge
1 mark for identifying the formula for YED:
• YED = % change in quantity demanded / %change in income (1).
Application
Up to 2 marks for selecting the correct data:
• 112,000 – 100,000 / 100,000 x 100 = 12% (1) / 6% (1).
Analysis
1 mark for calculating YED:
• 2 (1).
NB: Award 4 marks for answers that give the correct answer
regardless of working.
(4)
Number
2(c) Knowledge 2, Application 2, Analysis 2
Knowledge
Up to 2 marks for defining supply, e.g.
• the quantity of goods and services (1) sellers are willing/able to
supply at a given price (1).
OR
For providing two factors leading to a change in supply, e.g.

• new technology (1) increased input costs (1).
Application
Up to 2 marks for answers contextualised to on-demand delivery
suppliers, e.g.
• delivery businesses are adapting new technology by developing
applications to allow people to shop online (1)
• businesses like BiSU have a large team of delivery drivers, and
wages in Turkey are increasing (1).
Analysis
Up to 2 marks for reasons/causes/consequences for on-demand
delivery suppliers, e.g.
• improvements in technology will attract new companies to the
market that will utilise applications to become part of this growing
online market, therefore increasing supply (1)
• if labour costs and other input costs rise significantly this may
reduce profit margins and result in a decrease in supply of the
delivery services in the future (1).
(6)
Number
2(d) Indicative content guidance
• Part-time employees generally work a few hours or a few days a

week. Temporary work is generally for a limited period of time.
• Kapgel uses part-time and temporary employees to deliver goods to
customers in Istanbul.
• A benefit of using part-time employees is that it provides flexibility to the
business as staff can be scheduled at the busiest times of the day to
meet customer demand and deliver goods on time to customers.
• A major benefit of using temporary employees is lower costs. Often
temporary employees receive fewer or no benefits compared to
permanent staff, depending on their contract. The lack of benefits saves
money for the business which can be used elsewhere to grow the
business.
• Using part-time employees may attract staff who have other
commitments and do not wish to work on a full-time basis. This may
improve the work life balance of staff and result in motivated and
productive staff.
• However, temporary employees, may have less knowledge and
familiarity with the company. This can affect employee performance
and impact the efficiency of the delivery service.
• Recruitment costs may be higher if a business has a more flexible
workforce as the turnover of staff may be high. This may reduce
Kapgel’s profit margins.
• Some employees prefer full-time employment and a permanent
contract. This may lead to a lack of commitment by workers at
Kapgel. This may lead to Kapgel losing workers to competitors and
facing disruption to customer service.
Level 2 3–5 Accurate knowledge and understanding.
Applied accurately to the business and its context.
Chains of reasoning are presented, showing cause(s) and/or effect(s)
but may be assertions or incomplete.
An attempt at an assessment is presented that is unbalanced, and
unlikely to show the significance of competing arguments.
behaviour/context.
Logical chains of reasoning, showing cause(s) and/or effect(s).
Assessment is balanced, well contextualised, using quantitative and/or
qualitative information and shows an awareness of competing
arguments/factors.
Number
2(e) Indicative content guidance
• Product is one element of the marketing mix. The other three

elements are place (distribution), promotion and price.
• Product range may be an important element in the delivery market.
Getir stock 1,000 different products in its warehouses. Kapgel do not
keep stock and allow the customer to shop from a wide range of
shops.
• This may influence demand for the businesses if consumers are
looking for a wider variety of goods.
• Tap water in Turkey is not drinkable, therefore the product of clean
water is crucial to the success of BiSu.
• However, other aspects of the marketing mix: place, price and
promotion are equally as important to the success of the delivery
businesses.
• Price may be an important element due to the competition in the on-
demand market. Increased numbers of people are using the delivery
services in Istanbul and therefore suppliers may need to compete on
price to survive.
• Deliveries are made within one hour by Kapgel for a delivery fee of 5
Turkish Lira. Getir add a cost to each product and has a minimum
shopping total of 15 Turkish Lira before it will deliver an order. Price
may be an important element for some consumers resulting in
reduced revenue for Getir.
• Due to the intense competition in Turkey, delivery businesses must
stand out in the market and ensure they are using promotional
methods suited to the audience.
• The distribution of the goods may also be important to consumers.
Kapgel deliver in one hour but Getir, who have warehouses located
around Istanbul, are able to delivery to customers in under ten
minutes. If speed of delivery is important to consumers’ then place
will be an important element of the marketing mix.
• Whilst product is crucial to the success of the delivery services, all
elements of the marketing mix are equally importance to ensure the
business succeeds in the long term.
business example.
Chains of reasoning are presented but may be assertions or
incomplete.
A generic or superficial assessment is presented.
behaviour/context.
Analytical perspectives are presented, with developed chains of
reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using quantitative and/or
qualitative information, though unlikely to show the significance of
competing arguments.
behaviour/context.
A coherent and logical chain of reasoning, showing cause(s) and/or
effect(s).
Assessment is balanced, wide ranging and well contextualised, using
quantitative and/or qualitative information, and shows an awareness
of competing arguments/factors, leading to a supported judgement.
Number
3 Indicative content guidance
Cost efficiency
• Cost efficiency aims to minimise the costs of producing goods and

services.
• TOMS is experiencing increasing costs and low profit margins. Due
to financial problems in 2014 it was given a $313m investment from
a private company but growth and profit margins remain lower than
expected.
• Reducing its costs may be important to increase its profit margins.
Profits are important to TOMS to enable it to reinvest into the
growth of the company and develop its portfolio.
• Reducing costs and increasing profit margins are also necessary to
keep its investors satisfied. TOMS may fail to attract further private
investors if returns are low.
• Reducing material costs of the shoes may help the company to sell
at a lower price and compete with companies such as Skechers that
are selling a similar style shoe at half the price.
• However, reducing the costs may impact the quality of the shoes. If
TOMS use an inferior quality of material or less responsible
suppliers it may lose its brand identity.
Social objectives
• Social objectives are a company’s goals and commitment to

manage the impact of its operations on others. This is also
referred to as corporate social responsibility.
• TOMS donate a pair of shoes for every pair it sells. For some
customers, the social goals and practices of a company are
important which may increase sales and encourage repeat
purchase for TOMS.
• Helping to improve eyesight should help to improve the public
image of the company. This shows consumers that the business is
going above and beyond to help the society in which it operates
and may lead to higher levels of revenue for TOMS.
• Pursuing social objectives may lead to increased media coverage
for TOMS and increased demand.
• A benefit of focussing on social goals is the possibility of attracting
new investors. If the social goals align with an investor’s view, they
may be more inclined to invest in a company.
• Likewise, employees who share the same social goals of the
company will be more motivated at work when they know the
company is working toward the same objectives.
• However, social objectives can increase the costs for the company.
The one-for-one policy and helping improve eyesight is an
expensive commitment.
• Also using sustainable and re-cyclable materials pushes up costs
and prices of goods. If price is an important factor for consumers,
they are likely to buy from rivals such as Skechers.
• Other factors may also be important to its survival such as widening
its portfolio. The portfolio of products is small and since it was
founded in 2006, the company has done little to expand beyond its
basic style of shoe.
• Overall it is likely that cost efficiency is important to TOMS in order
to survive financially. It may need to reduce costs and increase its
profitability if it is to survive long term.
• However, the USP of TOMS is its ethical behaviour and its pursuit of
social objectives. If this is compromised, then TOMS may lose its
means of differentiation and not survive in the long term.
Weak or no relevant application of business examples.
An argument may be attempted, but will be generic and fail to connect
causes and/or consequences.
business example.
Arguments and chains of reasoning are presented but connections
between causes and/or consequences are incomplete. Attempts to
address the question.
A comparison or judgement may be attempted but it will not
successfully show an awareness of the key features of business
behaviour or business situation.
behaviour/context.
Uses developed chains of reasoning, so that causes and/or
consequences are complete, showing an understanding of the
question.
Arguments are well developed.
Quantitative and/or qualitative information is introduced in an attempt
to support judgements, a partial awareness of the validity and/or
significance of competing arguments and may lead to a conclusion.
behaviour/context.
Uses well-developed and logical, coherent chains of reasoning,
showing a range of cause and/or effect(s).
Arguments are fully developed.
Quantitative and/or qualitative information is/are used well to support
judgements. A full awareness of the validity and significance of
competing arguments/factors, leading to balanced comparisons,
judgements and an effective conclusion that proposes a solution
and/or recommendations.
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Mark Scheme (Provisional)

Pearson Edexcel International Advanced

Pearson: helping people progress, everywhere

• All candidates must receive the same

Up to 2 marks for defining the term ‘demand’ e.g.

Question Answer Mark

NB: If no working is shown, award marks as follows:

Knowledge, Application, Analysis, Evaluation – indicative content

• Motivation is the reason for people's actions, willingness and

Knowledge, Application, Analysis, Evaluation – indicative content

• Segmentation is dividing the market into groups of people with similar

Up to 2 marks for defining the term ‘customer loyalty’, e.g.

Question Answer Mark

Quantitative skills assessed:

For providing two factors leading to a change in supply, e.g.

Knowledge, Application, Analysis, Evaluation – indicative content

• Part-time employees generally work a few hours or a few days a

Knowledge, Application, Analysis, Evaluation – indicative content

• Product is one element of the marketing mix. The other three

Knowledge, Application, Analysis, Evaluation – indicative content

• Cost efficiency aims to minimise the costs of producing goods and

• Social objectives are a company’s goals and commitment to

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