Version 1.0: 0608 abc General Certificate of Secondary Education Business Studies 3132 Specification A Foundation Tier Mark Scheme 2008 examination - June series Mark schemes are prepared by the Principal Examiner and considered, together with the relevant questions, by a panel of subject teachers. This mark scheme includes any amendments made at the standardisation meeting attended by all examiners and is the scheme which was used by them in this examination. The standardisation meeting ensures that the mark scheme covers the candidatesresponses to questions and that every examiner understands and applies it in the same correct way. As preparation for the standardisation meeting each examiner analyses a number of candidatesscripts: alternative answers not already covered by the mark scheme are discussed at the meeting and legislated for. If, after this meeting, examiners encounter unusual answers which have not been discussed at the meeting they are required to refer these to the Principal Examiner. It must be stressed that a mark scheme is a working document, in many cases further developed and expanded on the basis of candidatesreactions to a particular paper. Assumptions about future mark schemes on the basis of one years document should be avoided; whilst the guiding principles of assessment remain constant, details will change, depending on the content of a particular examination paper. Further copies of this Mark Scheme are available to download from the AQA Website: www.aqa.org.uk Copyright © 2008 AQA and its licensors. All rights reserved. COPYRIGHT AQA retains the copyright on all its publications. However, registered centres for AQA are permitted to copy material from this booklet for their own internal use, with the following important exception: AQA cannot give permission to centres to photocopy any material that is acknowledged to a third party even for internal use within the centre. Set and published by the Assessment and Qualifications Alliance. The Assessment and Qualifications Alliance (AQA) is a company limited by guarantee registered in England and Wales (company number 3644723) and a registered charity (registered charity number 1073334). Registered address: AQA, Devas Street, Manchester M15 6EX Dr Michael Cresswell Director GeneralBusiness Studies 3132/F -AQA GCSE Mark Scheme 2008 June series 3 Foundation Tier (3132/F) INTRODUCTION Whilst every effort is made to give clear guidance, the mark scheme will always require the exercise of judgement in interpreting marginal points, not just occasionally, but continuously throughout the scripts. It should be seen as a set of guidelines, not rigid performance criteria. One key area of judgement relates to the level of access to levels. In principle, candidates can come inat any level, according to the quality of their response, with Level 1 commonly bypasssed However, problems can arise when, on a higher mark question, the candidate make, or hints at, one high level point in an otherwise Level 1 (or zero mark) response. Usually the situation is anticipated by the structure of the mark scheme, but examiners should feel able to withhold access to a level should the spirit of the mark scheme appear to have been breached. Responses suggested in this scheme are not exhaustive. The mark scheme cannot anticipate all possible responses. Any valid response should be given full credit, with reference being made to your team leader when serious doubt arises. Business Studies 3132/F -AQA GCSE Mark Scheme 2008 June series 4 SECTION A 1 Total for this question: 12 marks For each sub-question (a) to (d) the following should be adopted. AO1 (max 2 marks) AO2 (max 1 mark) Level 2 Clear understanding demonstrated (2 marks) Level 1 Some understanding demonstrated (1 mark) Appropriate example used (1 mark) (a) Manufacturer A business/person that makes a product to be bought by a consumer. Secondary type of industry, eg Kelloggs, Ford. (b) Fringe benefit A reward, in addition to wages, made by a business to an employee. Often used to motivate/recruit/retain employees, eg health insurance, gym facilities, company car. (c) Tax Money paid to the government. The money is used to fund public services, eg income tax, VAT, corporation tax, but allow any clear reference to a specific tax, such as tax on wages, but not a tax on goods. (d) Multinational company A business that has its headquarters in one (or more) countries and operates/produces in other countries, eg Kelloggs, Ford. 1 Explain briefly the meanings of the following Business Studies terms and give an example of each. Your examples can be drawn from the Case Study or from any other source. (a) Manufacturer (3 marks) (b) Fringe benefit (3 marks) (c) Tax (3 marks) (d) Multinational company (3 marks) Business Studies 3132/F -AQA GCSE Mark Scheme 2008 June series 5 2 Total for this question: 6 marks Process of determining the demand for a product, the price consumers are prepared to pay, what they think about the product; etc. The process of gathering information about possible sales. Often involves performing interviews, surveys. AO1 (max 2 marks) Level 2 Clear understanding demonstrated (2 marks) Level 1 Some understanding demonstrated (1 mark) Possible answers include: • interviews with target groups; • questionnaires, eg on websites; • telephone/on the street surveys; • trialling the product in a chosen area; • researching competitors. NB: The two methods should be different and not two variants on one method, eg conducting interviews in the street and in supermarkets. Allow both desk and field research for one mark each (AO1). AO1 (max 2 marks) AO2 (max 2 marks) Level 2 2 valid forms of market research identified (2 marks) Both actions adequately explained or one action well explained (2 marks) Level 1 1 valid form of market research identified (1 mark) 1 action adequately explained (1 mark) 2 (a) What is meant by market research? (2 marks) 2 (b) Describe two different types of market research that Kelloggs might use before it brings out a new type of breakfast cereal. (4 marks) Business Studies 3132/F -AQA GCSE Mark Scheme 2008 June series 6 3 Total for this question: 6 marks Employee/job is no longer required. The employee has agreed to leave the business in return for a payment, enhanced pension etc. NB: Both voluntaryand redundancyneed to be addressed for Level 2. AO1 (max 2 marks) Level 2 Clear understanding demonstrated (2 marks) Level 1 Some understanding demonstrated (1 mark) Reasons could include: Demand for the product has fallen, because of: • greater competition at home or abroad; • change in consumer tastes; • decline stage of product life style. Alternative method of production, because of: • greater use of machinery; • deskilling means less need for skilled employees; • more efficient use of labour; • moved out of the area/abroad. NB: Both reasons can be drawn from either a fall in demand or an alternative method of production, but must be sufficiently different. AO1 (max 2 marks) AO2 (max 2 marks) Level 2 2 valid reasons identified (2 marks) Both reasons adequately explained or one reason well explained (2 marks) Level 1 1 valid reason identified (1 mark) 1 reason adequately explained (1 mark) 3 (a) What is meant by voluntary redundancy? (2 marks) 3 (b) Give two reasons why jobs sometimes become redundant. (4 marks) Business Studies 3132/F -AQA GCSE Mark Scheme 2008 June series 7 4 Total for this question: 6 marks A method of production that involves the product moving continually along a line during the production process where a different part of the process is completed. NB: Allow an example to support the definition. AO1 (max 2 marks) Level 2 Clear understanding demonstrated (2 marks) Level 1 Some understanding demonstrated (1 mark) Level 0 Incorrect or very weak understanding (0 marks) Reasons could include: • more efficient than alternatives, eg batch production; • large scale production available; • allows economies of scale; • allows greater use of capital/less reliance on labour; • improvement in quality/greater standardisation of products. AO1 (max 2 marks) AO2 (max 2 marks) Level 2 2 valid reasons identified (2 marks) Both reasons adequately explained or one reason well explained (2 marks) Level 1 1 valid reason identified (1 mark) 1 reason adequately explained (1 mark) 4 (a) What is flow production? (2 marks) 4 (b) Describe two reasons why many large businesses choose to use flow production. (4 marks) Business Studies 3132/F -AQA GCSE Mark Scheme 2008 June series 8 SECTION B In Section B, Level 2 AO2 and AO3 marks are not available for responses that fail to link firmly with Kelloggs. Answers that could apply to any business are limited to Level 1 with these AOs. The lack of meaningful analysis with such responses will probably restrict assess to Level 1 in AO4. Clear context is needed to access Level 2 in AO2 and AO3. Context requires more than a mere mention of the companys name. The presence of context does not guarantee a Level 2 mark; it is a requirement. If a low level answer contains context, it remains at Level 1 for these two assessment objectives. 5 Total for this question: 14 marks Methods could include: • Different target markets: Frosties children; Special K slimmers/women; • Different programmes: Frosties are aimed at children so advertisements would be shown on kidsTV, Special K would be shown later in the evening or during school hours; • Different approach: Frosties probably includes cartoons/humour. Special K is sophisticated. NB: Responses should be restricted to advertising (not one of the other Ps, including promotion). AO1 (max 2 marks) AO2 (max 2 marks) Level 2 2 valid ways identified (2 marks) Both ways adequately applied to Case Study or one way well applied (2 marks) Level 1 1 valid way identified (1 mark) 1 way adequately applied to Case Study (1 mark) On page 7 of the Case Study, we are told that Kelloggs has many brands of cereals. Each brand needs to be advertised on television to keep it well known. There is a freephone customer telephone number printed on the packaging of each product. Many of Kelloggs products are aimed at children. 5 (a) Describe two ways in which advertising of Frosties would be different from that of Special K. (4 marks) Business Studies 3132/F -AQA GCSE Mark Scheme 2008 June series 9 Possible ways include: • reassures the customer that the company is concerned about quality; • provides feedback on customersviews/form of market research; • keeps up with competitors which do the same. AO2 (max 2 marks) AO3 (max 2 marks) Level 2 2 valid benefits applied (2 marks) Both benefits briefly analysed/commented upon in context or one benefit well analysed in context (2 marks) Level 1 1 suitable benefit applied (1 mark) 1 benefit briefly analysed/commented upon (1 mark) Possible areas for discussion include: • children are big market for cereals; • safeguard in case demand for one cereal falls; • different brands appeal to different childrens age groups; but • expensive to have brands can compete with each other, eg additional advertising; • do not receive scale economies; • may need to keep switching production. To secure AO4 Level 2, both sides of the argument needs to be expressed clearly and judgments need to be supported by the analysis undertaken. AO3 (max 2 marks) AO4 (max 4 marks) Level 2 2 or more areas analysed in context (2 marks) Good judgement offered based on balanced analysis (3-4 marks) Level 1 1 area only analysed (1 mark) Some judgement based on analysis (1-2 marks) 5 (b) Explain two benefits to Kelloggs of having its freephone customer telephone number printed on each product. (4 marks) 5 (c) Discuss whether it is a good idea for Kelloggs to have so many different brands aimed at children. (6 marks) Business Studies 3132/F -AQA GCSE Mark Scheme 2008 June series 10 6 Total for this question: 14 marks Possible reasons include: • make them more loyal/give them more ownership; • encourage them to work more efficiently; • to provide additional finance to Kelloggs. AO1 (max 2 marks) AO2 (max 2 marks) Level 2 2 valid reasons identified (2 marks) Both reasons adequately applied to Case Study or one reason well applied (2 marks) Level 1 1 valid reason identified (1 mark) 1 reason adequately applied to Case Study (1 mark) Possible types include: • increases the number of available employees, eg mothers with dependent children; • improve its caring image; • employees motivated by more relaxed working conditions. NB Response should address whyand not how. AO2 (max 2 marks) AO3 (max 2 marks) Level 2 2 valid reasons applied (2 marks) Both reasons briefly analysed/commented upon in context or 1 reason well analysed in context (2 marks) Level 1 1 suitable reason applied (1 mark) 1 reason briefly analysed/commented upon (1 mark) Kelloggs believes in treating its employees well to get the best from them. On page 8 of the Case Study, we are told that Kelloggs encourages its employees to buy shares in the business. Kelloggs also has a family-friendly approach to working. Office workers are allowed to wear casual clothing, rather than business suits. 6 (a) Give two reasons why Kelloggs might encourage its employees to buy shares in the business. (4 marks) 6 (b) Explain why Kelloggs might want family-friendly working conditions for its employees. (4 marks) Business Studies 3132/F -AQA GCSE Mark Scheme 2008 June series 11 Possible areas for discussion include: • whether employees work better/prefer to work in casual clothing; • the benefits/goodwill Kelloggs receive from its employees from having this policy; • whether a fall in standards affects the work of employees; • whether the companys image improves in eyes of suppliers/customers. AO3 (max 2 marks) AO4 (max 4 marks) Level 2 2 or more areas analysed in context (2 marks) Good judgement offered based on balanced analysis (3-4 marks) Level 1 1 area only analysed (1 mark) Some judgement based on analysis (1-2 marks) To secure AO4 Level 2, both sides of the argument needs to be expressed clearly and judgments need to be supported by the analysis undertaken. 6 (c) Discuss whether you believe it is a good idea that Kelloggs allows office workers to wear casual clothes. (6 marks) Business Studies 3132/F -AQA GCSE Mark Scheme 2008 June series 12 7 Total for this question: 14 marks Assets: goods/funds owned by Kelloggs, can be current or fixed, eg stock (cereals), vehicles, debtors (supermarkets). Liabilities: money Kelloggs owes to other people/organisations, eg loans, suppliers/creditors. AO1 (max 2 marks) AO2 (max 2 marks) Level 2 2 terms understood (2 marks) Both terms adequately applied in context or 1 term well applied (2 marks) Level 1 1 term understood (1 mark) 1 term adequately applied (1 mark) Fixed assets = Total Assets Current Assets 10 714 2 427 = $8 287 m 1 mark for selecting 10 714 and 2 427 as part of the calculation. 1 mark for performing subtraction. 1 mark for millions (or appropriate billions) and $ sign. Correct answer with $m is 4 marks. All marks are AO2. (max 4 marks) Details of Kelloggs finances can be found on page 9 of the Case Study. The graphs show that Kelloggs sales and its operating profit in Asia fell between 2005 and 2006. 7 (a) What is meant by: (i) assets; (ii) liabilities? (4 marks) 7 (b) Calculate the value of Kelloggs fixed assets in 2006. (Show your working) (4 marks) Business Studies 3132/F -AQA GCSE Mark Scheme 2008 June series 13 Possible areas for discussion include: For moving out: • money is being lost by producing there, better to cut losses; • could use resources to develop more profitable markets. Against moving out: • Kelloggs might still be being established there demand might pick up; • look for ways of developing demand before withdraw; • profit in case study are percentage change so a profit not loss might still be being made. To secure AO4 Level 2, both sides of the argument needs to be expressed clearly and judgments need to be supported by the analysis undertaken. AO3 (max 2 marks) AO4 (max 4 marks) Level 2 2 or more areas analysed (2 marks) Good judgement offered based on balanced analysis (3-4 marks) Level 1 1 area only analysed (1 mark) Some judgement based on analysis (1-2 marks) 7 (c) Discuss whether you believe that Kelloggs should stop selling cereals in Asia. (6 marks) Business Studies 3132/F -AQA GCSE Mark Scheme 2008 June series 14 8 Total for this question: 14 marks Possible responses include: • sponsor/donate money to local causes; • employ local people; • specific help, eg school mentoring; • use local suppliers (as long as it is clear this does not mean cereals). AO1 (max 2 marks) AO2 (max 2 marks) Level 2 2 valid ways identified (2 marks) Both ways adequately applied to Case Study or one way well applied (2 marks) Level 1 1 valid way identified (1 mark) 1 way adequately applied to Case Study (1 mark) Possible reasons include: • increase demand for breakfast cereals; • promotes the brands to children; • good PR. AO2 (max 2 marks) AO3 (max 2 marks) Level 2 2 or more valid benefits applied (2 marks) Both benefits briefly analysed/commented upon or 1 reason well analysed (2 marks) Level 1 1 suitable benefit applied (1 mark) 1 benefit briefly analysed/commented upon (1 mark) We are told in the Case Study (page 8) that Kelloggs has donated funds to improve deprived areas in Manchester and Wrexham. On the same page we learn that Kelloggs supports breakfast clubs in schools. On page 5, we are told that Kelloggs needs to make 220 jobs redundant. 8 (a) Describe two ways in which Kelloggs might help deprived areas of Manchester and Wrexham. (4 marks) 8 (b) Explain two benefits to Kelloggs of supporting local schoolsbreakfast clubs. (4 marks) Business Studies 3132/F -AQA GCSE Mark Scheme 2008 June series 15 Possible areas for discussion include: • are the two things connected? • charitable giving helps soften impact to public of cutting jobs; • cutting back on jobs will help the business be profitable in the long run; • if it did cut back on charitable giving, would the jobs be saved? • charitable donations gives Kelloggs a good reputation; • the redundancies are voluntary, not compulsory. AO3 (max 2 marks) AO4 (max 4 marks) Level 2 2 or more areas analysed in context (2 marks) Good judgement offered based on balanced analysis (3-4 marks) Level 1 1 area only analysed (1 mark) Some judgement based on analysis (1-2 marks) 8 (c) Discuss whether Kelloggs should cut back the money which it gives to charity instead of reducing the number of jobs in Manchester. (6 marks) Business Studies 3132/F -AQA GCSE Mark Scheme 2008 June series 16 9 Total for this question: 14 marks Usually cheaper goods, sold as offering good value for money. Products made by another manufacturer but sold under supermarket name. An example may be used to support the answer. AO1 (max 2 marks) Level 2 Good understanding shown (2 marks) Level 1 Some understanding of term shown (1 mark) Responses could include: • less advertising on own brand; • often used as loss leaders; • ingredients might be cheaper/inferior. AO3 (max 4 marks) Level 2 2 strategies containing good analysis (3-4 marks) Level 1 Some analysis on both strategies, or 1 strategy well analysed (1-2 marks) On page 5 of the Case Study, we are told that Kelloggs does not make cereals to be sold as supermarketsown brands. 9 (a) What is meant by supermarketsown brand products? (2 marks) 9 (b) Explain two reasons why a packet of a supermarkets own brand of cornflakes is usually sold at a lower price than a Kelloggs packet. (4 marks) Business Studies 3132/F -AQA GCSE Mark Scheme 2008 June series 17 To access the AO4 marks, candidates need to weigh up arguments for and against. In favour: • demand for Kelloggs products will increase; • size of Kelloggs could increase making it more dominant in the cereal market. Against: • if consumers find out, it could lower demand for Kelloggs branded products as consumers turn to own labels; • Kelloggs might get a downmarket image; • Kelloggs will be supplying a competitor; • more advertising might be needed to make Kelloggs seem better than supermarketsown labels. AO4 (max 8 marks) Level 3 Good judgement offered based on balanced analysis (7-8 marks) Level 2 Good evaluation of 1 side or some evaluation of both (4-6 marks) Level 1 Some judgement based simple analysis (1-3 marks) 9 (c) Discuss whether you believe that Kelloggs should sell cornflakes to supermarkets that will then be sold as supermarketsown brands. (8 marks) Business Studies 3132/F -AQA GCSE Mark Scheme 2008 June series 18 Marking Criteria for Quality of Written Communication High Performance Candidates spell, punctuate and use the rules of grammar with almost faultless accuracy, deploying a range of grammatical constructions; they use a wide range of specialist terms adeptly and with precision. 4-5 marks Intermediate Performance Candidates spell, punctuate and use the rules of grammar with considerable accuracy; they use a good range of specialist terms with facility. 2-3 marks Threshold Performance Candidates spell, punctuate and use the rules of grammar with reasonable accuracy; they use a limited range of specialist terms appropriately. 1 mark