2019-Ocr-Gcse-Business1 - MS
2019-Ocr-Gcse-Business1 - MS
2019-Ocr-Gcse-Business1 - MS
Business
It is also responsible for developing new specifications to meet national requirements and
the needs of students and teachers. OCR is a not-for-profit organisation; any surplus made
is invested back into the establishment to help towards the development of qualifications and
support, which keep pace with the changing needs of today’s society.
This mark scheme is published as an aid to teachers and students, to indicate the
requirements of the examination. It shows the basis on which marks were awarded by
examiners. It does not indicate the details of the discussions which took place at an
examiners’ meeting before marking commenced.
All examiners are instructed that alternative correct answers and unexpected approaches in
candidates’ scripts must be given marks that fairly reflect the relevant knowledge and skills
demonstrated.
Mark schemes should be read in conjunction with the published question papers and the
report on the examination.
© OCR 2019
J204/01 Mark Scheme June 2019
Annotations
Annotation Meaning
and for correct and incorrect responses
BOD benefit of doubt
TV vague
NUT no use of text/context/application
REP repetition
NAQ not answering question
REP repeat
K knowledge
U understanding
APP application of knowledge/understanding
AN analysis
EVAL evaluation
BP blank page
Where ARA is indicated within the Guidance column for any item on this mark scheme, examiners must accept any reasonable answer that in their
professional opinion is as worthy of merit as those indicated on the final mark scheme. However, examiners should liaise with their Team
Leaders/Principal Examiner wherever there remains any doubt as to whether or not a response (or part-response) should be awarded.
J204/01 Mark Scheme June 2019
2
J204/01 Mark Scheme June 2019
3
J204/01 Mark Scheme June 2019
16 b Explain the purpose of marketing within Ford Motors. 2 1 mark for the identification of a purpose of
marketing plus one mark for application.
Answers may include: AO1a 1
AO2 1
Increase sales/sell more Annotate as:
Inform customers Purpose of marketing
Improve corporate/brand image/reputation Application to Ford
Raise awareness/advertise/promote
Attract customers Accept purposes of market research.
Gain/increase brand loyalty
To identify gaps in the market ‘Sales’, ‘sell’, ‘make sales’ too vague . As
this is the role of the sales function rather than the
Identify customer needs
marketing function. If referring to ‘sales’ the
Understand customer needs
answer must refer to more/increase/extra/
Meet customer needs additional, etc.
Exemplar responses: Application is likely to include a reference to cars,
vans, trucks, buses, names of models, vehicles,
One purpose of marketing at Ford is to tell customers about the petrol, mpg, acceleration, eco-friendly models,
availability of a new model of car . driver, etc.
The purpose of marketing within Ford is to increase the number of car Do not accept ‘model’, annotate TV.
it sales .
ARA
4
J204/01 Mark Scheme June 2019
16 c Explain one way that preparing a business plan may be useful to 2 1 mark for understanding why preparing a business
Ford Motors. plan may be useful to a business plus one mark for
AO1b 1 application.
AO2 1
Answers may include:
Annotate as:
Secure finance/investment Use of business plan
Helps to achieve/focus on aims/objectives Application to Ford
Helps to identify markets
Identify the resources a business may need Accept uses or benefits of a business plan.
Reduce risk
Helps with scheduling tasks Do not accept purposes of business planning in
Helps to forecast financial achievement general e.g. helping a business to
succeed/stopping it from failing.
Helps to set budgets
Helps to monitor progress
Do not award ‘helps set objectives’.
Provides guidance for implementation Do not award ‘communicate with employees’.
Exemplar responses: Do not allow vague answers e.g. being organised;
Preparing a business plan should help Ford Motors to secure finance improves performance, etc please annotate .
, f for the manufacture of its new car designs.
Application is likely to include a reference to cars,
Risk will be reduced as a result of the careful thought that will has vans, trucks, buses, names of models, vehicles,
been put in. transport, etc.
ARA
Do not accept ‘model’, annotate TV.
5
J204/01 Mark Scheme June 2019
16 d Explain how Ford Motors could use market segmentation when 2 1 mark for understanding of how market
deciding where to place an advert for its new car models. segmentation may be used when placing an advert
AO1b 1 plus one mark for application.
AO2 1
Answers may include:
To target the advertising Annotate as:
Use of market segmentation for advertising
Exemplar responses: Application to Ford
The company could then advertise the cars in the way that
would appeal to its target market . Application is likely to include a reference to cars,
vans, trucks, buses, names of models, vehicles,
It allows Ford Motors to advertise in a way which directs its adverts transport, etc.
at high income sports car owners.
Do not accept ‘model’, annotate TV.
It allows Ford Motors to target its advertising at different age groups
.
ARA
6
J204/01 Mark Scheme June 2019
16 e Analyse one disadvantage to Ford Motors of manufacturing and 3 1 mark for showing understanding of large range of
selling such a large range of products. products by giving a disadvantage, plus one mark
AO1b 1 for application and/or one mark for analysis.
AO2 1
Answers may include: AO3a 1
Increased workload Annotate as:
Bad publicity from one product may affect the others Disadvantage to business
More difficult to control and coordinate Application to Ford
Focus is diluted Analysis of disadvantage
Diseconomies of scale e.g. increased advertising, unable to bulk
buy NB Analysis must be a business-facing impact of
the disadvantage awarded.
Exemplar response:
Application is likely to include a reference to cars,
Ford Motors may experience diseconomies of scale because vans, trucks, buses, names of models, vehicles,
different car models require different parts. This increases the transport, etc.
cost of production .
Do not accept ‘model’, annotate TV.
If one car model develops a bad reputation, it may damage the
reputation of Ford’s other models . This may lead to a decrease in
sales revenue .
ARA
7
J204/01 Mark Scheme June 2019
16 f i State one advantage to a business of using the product lifecycle 1 1 mark for identification of an advantage of using
to plan the marketing of its products. the product lifecycle to plan the marketing of
AO1a 1 products
Answers may include:
Annotate as:
Indicates when/whether to change marketing Beneficial use of product lifecycle to plan marketing
spend/activities/introduce extension strategies.
Do not award answers relating to Price, Product or
Exemplar response: Place.
16 f iii Evaluate whether or not Ford Motors should continue to use the 7 Use marking grid to assess skill levels.
product lifecycle when planning the marketing of its products.
AO2 2 Annotate as:
AO3a 2
Application could include: AO3b 3 Up to 2 marks for application to Ford
Cars, vans, trucks, buses, names of models, vehicles, transport, etc. Up to 2 marks for analysis
Up to 3 marks for evaluation
Analytical points could include:
Positive: indicates when/whether to change marketing Do not award answers relating to Price, Product or
spend/activities/introduce extension strategies. Place.
8
J204/01 Mark Scheme June 2019
Evaluation: Candidate can justify going ahead or not going ahead and
gain full marks.
Exemplar response:
When a car model is first launched and it is at the introduction stage of
the product lifecycle, the model is unknown and Ford Motors will need
to advertise the car significantly to make people aware of it. This
will help Ford Motors increase sales revenue .
ARA
9
J204/01 Mark Scheme June 2019
Evaluate whether or not Ford Motors should continue to use the product lifecycle when planning the marketing of its products.
10
J204/01 Mark Scheme June 2019
17 a Explain one method Redrow Homes’ head office employees could 3 1 mark for the identification of an appropriate
use to communicate with staff working on one of its building sites. AO2 3
communication method, plus one mark for
contextual reference and/or one mark for
Answers may include: appropriate explanation.
Email e.g. can send lots of information, attachment, links, Annotate as:
instant, no travelling, multiple recipients at once, record of Appropriate communication method
communication Contextual reference to Redrow Homes
Text e.g. multiple recipients at once, information received Why method is appropriate
instantly, no travelling, record of communication
Phone/mobile e.g. two-way communication, can discuss, clarify, Do not award any marks if method identified is
can be instantaneous, no travelling inappropriate e.g. letter/presentation too vague,
Face to face/onsite e.g. can discuss in detail, body language, e.g. digital communication, online, etc.
not affected by technology, deliver hard copies/materials
Messaging systems e.g. instant messaging, intranet, Whatsapp Do not accept ‘meeting’, ‘call/calling’, ‘quick and
Radio/walkie talkie e.g. inexpensive, free of charge easy’ without explanation, annotate TV.
Head office employees may use email to communicate with ‘Site’ and ‘trades people’, ‘workers’, are too vague
multiple employees at the same time . for application.
ARA
NB Do not accept ‘building site’ as application as it
is in the question.
11
J204/01 Mark Scheme June 2019
17 b Identify two reasons why employee motivation is important to 2 1 mark for identification of a contextual reason, up
Redrow Homes. to a maximum of 2 contextual reasons.
AO2 2
Answers may include: Annotate as:
Improved quantity of properties First contextual reason
Improved quality of houses Second contextual reason
Low absenteeism of construction workers
Punctuality of carpenters If response cannot be awarded due to lack of
High retention of customer service administrators application, annotate rather than a cross.
Low turnover of landscape designers
Less supervision required of bricklayers Application of knowledge to Redrow Homes
required for marks to be awarded.
More sales will be made by sales advisors
Ease of recruitment of construction workers
Contextual references include houses, homes,
Increased custom of house buyers build/builders, construct, apprentices, electrical
work/electrician, carpentry/carpenter,
Exemplar response: plumbing/plumber, bricklaying/bricklayer,
landscape design(er), etc.
More beautiful homes will be built .
ARA Do not accept vague references as being
contextual e.g. site, trades, workers, employees,
sales staff, administrators etc.
17 c i State one example of a financial method to motivate employees 1 1 mark for the identification of a financial method of
motivation.
Answers may include: AO1a 1
12
J204/01 Mark Scheme June 2019
17 c ii State one example of a non- financial method to motivate 1 1 mark for the identification of a non-financial
employees method of motivation.
AO1a 1
ARA
17 d State one reason why a business may need to recruit new 1 1 mark for the identification of a reason for
employees. recruiting new employees.
AO1a 1
ARA
13
J204/01 Mark Scheme June 2019
17 e i Analyse one way in which Redrow Homes could use each of the 3 1 mark for showing understanding of interviews as
following methods when selecting new apprentices. a selection method, plus one mark for application
- Interviews AO1b 1 and/or one mark for analysis.
AO2 1
AO3a 1
Answers may include: Annotate as:
One to one conversation Understanding/benefit of interview
Can ask candidates the (same) questions verbally Application to Redrow Homes
Can see how well candidates present themselves Advantage of interviews as a selection method
Can judge how well candidates communicate
Two way interaction NB Analysis must be a business-facing impact.
Can observe how well they perform under pressure
Contextual references include houses, homes,
Exemplar response: build/builders, construct, electrical work/electrician,
carpentry/carpenter, plumbing/plumber,
Interviews allow one to one conversations to take place which bricklaying/bricklayer, landscape design(er), etc.
Redrow can use to have an in depth assessment of applicants’
knowledge of building-related matters. Do not award ‘apprentice’ as context.
ARA
14
J204/01 Mark Scheme June 2019
Interviews are the best way because they can discuss with Contextual references include houses, homes,
candidates about their experience of working on a building site . build/builders/building site, construct, electrical
work/ electrician, carpentry/carpenter, plumbing/
Group activities are a better way to select apprentices as plumber, bricklaying/bricklayer, etc.
witnessing how well candidates work with others is a more accurate
assessment than just asking questions in an interview . Do not award ‘apprentice’ as context as it is in the
ARA question.
15
J204/01 Mark Scheme June 2019
17 f Analyse one benefit to Redrow Homes of using apprenticeships 3 1 mark for showing understanding of
as a method of staff development. apprenticeships by giving a benefit, plus one mark
AO1b 1 for application and/or one mark for analysis.
AO2 1
Answers may include: AO3a 1
Training is tailored to the needs of business Annotate as:
Low cost method of training Benefit to business
On the job training Application to Redrow Homes
Possible government funding Analysis of benefit
Apprentices contribute by working whilst they are training
Increased employee loyalty NB Analysis must be a business-facing impact.
High retention levels.
Do not award ‘money’ - TV. Reference to costs,
Exemplar response: revenue, profit, loss, cash flow required.
Apprenticeship can be tailored to the needs of the business so
Redrow can train them to build houses to the specification the Contextual references include houses, homes,
company requires so that the quality of the houses remains high . build/builders, construct, electrical work/electrician,
carpentry/carpenter, plumbing/plumber,
By offering apprenticeship Redrow Homes can obtain government bricklaying/bricklayer, etc.
funding thereby reducing business costs .
ARA Do not award ‘apprentice’ as context as it is in the
question.
16
J204/01 Mark Scheme June 2019
18 a Analyse two benefits for Beautiful Buds plc of growing externally. 6 In each of two cases:
One mark for showing an understanding of external
Understanding may include: AO1b 2 growth externally plus one mark for application
AO2 2
Merger, merging, takeover, taking over, buy out, joint with another, AO3a 2 and/or one mark for analysis.
business joint venture, being a part of another business, vertical
integration, horizontal integration, buying a business, etc. In each case:
Annotate as:
Benefits may include: Explicit understanding of external growth
Quick way to grow/quicker than inorganic/internal methods of Application to Beautiful Buds
growth Benefit of growing externally
Can help the business to expand into the markets/increase
product ranges of other business
NB Analysis must be a business-facing impact.
Benefits from the reputation of the other business
Acquires the skills, technology and processes of the other Do not award ‘money’ - TV. Reference to costs,
business revenue, profit, loss, cash flow required.
Secure the potential supply of raw materials or retail
opportunities for the business Contextual references include plants, garden,
Gaining reputation/positive brand image of other business garden centres, 12%, country’s largest, directors,
More well known due to popularity of other business senior managers, middle managers, team leaders,
supervisors, operatives, £110,000 etc.
Exemplar responses:
‘Managers’ and ‘Leaders’ are too vague for
Merging will allow Beautiful Buds to increase its sales revenue from application.
selling plants .
Beautiful Buds plc will benefit from acquiring the other business’
assets and skills .
ARA
17
J204/01 Mark Scheme June 2019
18 b Identify one way that Beautiful Buds plc could have grown 1 1 mark for a contextual identification of a method of
organically. growing organically.
AO2 1
Answers may include: Annotate as:
Increasing output of plants Contextual method
Gaining new customers at garden centres
More/Improved marketing/sales of flowers If response cannot be awarded due to lack of
Offering improved trade deals to garden centres application, annotate r rather than a cross.
Reducing prices of gardening equipment
Developing new types of plants Application of knowledge to Beautiful Buds plc
Extending the range and variety of plants required for marks to be awarded.
Enter a new market, possibly garden tools
Do not award ‘open more garden centres’ but do
Sell at more/other garden centres
award ‘open a garden centre’.
Selling plants online
Increasing market share in the gardening industry Contextual references include plants, garden,
garden centres, 12%, country’s largest, directors,
ARA senior managers, middle managers, team leaders,
supervisors, operatives, £100,000 etc.
18
J204/01 Mark Scheme June 2019
18 c i Analyse the impact on two stakeholder groups of the proposed 6 In each of two cases:
vertical merger between Beautiful Buds plc and Green Gardens One mark for showing an understanding of the
plc. AO1b 2 stakeholder groups by giving an example, plus one
AO2 2
AO3a 2 mark for application and/or one mark for analysis.
Stakeholder groups include:
In each case:
Employees Annotate as:
job losses, job (in)security, new opportunities, career Example of stakeholder group
progression, etc Application to Beautiful Buds
Impact on stakeholder group
Competitors
may lose orders, face stronger competition, forced out of
Impacts may be positive or negative.
business, need to reduce prices, etc
NB Analysis must be a stakeholder-facing impact
Customers
increased availability, increased choice, wider product range, Accept any appropriate stakeholder group.
lower prices, etc
Accept any specific job role as a separate
Shareholders stakeholder group e.g. Directors/Managers/Team
share buy backs, change in share prices/profit/dividends, etc Leaders/Supervisors, Operatives.
Exemplar response: NB if ‘employee’ is given as the stakeholder
group, then all specific job roles are REP.
Customers . Prices may be cheaper , so they would be able to
buy more plants . Accept ‘community’ for ‘local community/local
residents’, etc. Accept ‘government’.
Employees . The merger may lead to greater job opportunities
for more employees ,. Contextual references include plants, garden,
garden centres, 12%, country’s largest, 2 layers,
ARA 124 employees, directors, senior managers, middle
managers, team leaders, supervisors, operatives,
shareholders, £110,000, etc.
19
J204/01 Mark Scheme June 2019
20
J204/01 Mark Scheme June 2019
18 c ii Recommend which stakeholder group will be most impacted by 3 1 mark for recommendation, plus up to two marks
the vertical merger between Beautiful Buds plc and Green for a justification.
Gardens plc. Give reasons for your answer. AO3b 3
Annotate as
Candidate can choose any stakeholder group and gain full marks. Decision
Plus:
Exemplar response: Non contextual justification
or Contextual justification
Customers would be most affected because they would be able to
buy Beautiful Bud’s plants at more locations . Contextual references include plants, garden,
garden centres, 12%, country’s largest, 2 layers,
Employees are likely to be the stakeholder group most affected by 124 employees, directors, senior managers, middle
the change because it may lead to some of them losing their job .. managers, team leaders, supervisors, operatives,
shareholders, £110,000, etc.
ARA
‘Managers’ and ‘Leaders’ are too vague for
application.
18 d* Discuss, with reference to the data in Text 3, whether Beautiful 9 Use marking grid to assess skill levels.
Buds plc should go ahead with the plan to change its
AO1a 1 Annotate as:
organisational structure. AO1b 1
AO2 2 1 mark for knowledge
AO3a 2
Knowledge could include: AO3b 3
1 mark for understanding
hierarchical, tall, flat, layers/tiers/levels, delayering, span of control, Up to 2 marks for numerical application*
chain of command etc Up to 2 marks for analysis
Up to 3 marks for evaluation
Application could include:
A saving of £600,000 of salaries of middle managers per year, saving of *Application refers to the use of data only.
£700,000 per year from losing the Team Leaders, combined saving of
£1.3m. £300,000 extra costs for the 10 new supervisors, total net Analysis must be a business facing impact
saving per year of £1m. 32 current staff will be lost (loss of over 25% of
employees). 10 additional supervisors will be gained. Overall 22 fewer For strong evaluation i.e. the full three marks, the
staff will be lost. evaluation must be contextual.
21
J204/01 Mark Scheme June 2019
Evaluation: Candidate can justify going ahead or not going ahead and
gain full marks.
Exemplar response:
Moving from a tall to a flat organisational structure involves
delayering, which means staff will lose their jobs . This will enable
the business to reduce the amount spent on salaries by £600,000
for Middle Managers and by £700,000 for Team Leaders
because two layers of management will disappear. The total saving can
be used to improve the business to support future growth .
I think that the change should go ahead because in the long term
they save wage bills which they can reinvest in developing new
varieties of plants .
22
J204/01 Mark Scheme June 2019
18d. Discuss, with reference to the data in Text 3, whether Beautiful Buds plc should go ahead with the plan to change its
organisational structure.
23
OCR (Oxford Cambridge and RSA Examinations)
The Triangle Building
Shaftesbury Road
Cambridge
CB2 8EA
www.ocr.org.uk
© OCR 2019