Edexcel A Level Business Paper 2 mark scheme graded A+ LATEST UPDATE 2023 FINAL (END OF YEAR)

Edexcel A Level Business Paper 2 mark scheme graded A+ LATEST UPDATE 2023 FINAL (END OF YEAR) Mark Scheme (Results) Summer 2023 Pearson Edexcel GCE A Level in Business (9BS0) Paper 03 Investigating business in a competitive environment Edexcel and BTEC Qualifications Edexcel and BTEC qualifications are awarded by Pearson, the UK’s largest awarding body. We provide a wide range of qualifications including academic, vocational, occupational and specific programmes for employers. For further information visit our qualifications websites at. Alternatively, you can get in touch with us using thedetails on our contact us page at Pearson: helping people progress, everywhere Pearson aspires to be the world’s leading learning company. Our aim is to help everyone progress in their lives through education. We believe in every kind of learning, for all kinds of people, wherever they are in the world. We’ve been involved in education for over 150 years, and by working across 70 countries, in 100 languages, we have built an international reputation for our commitment to high standards and raising achievement through innovation in education. Find out more about how we can help you and your students at: Summer 2023 Publications Code 9BS0_03_2306_MS All the material in this publication is copyright © Pearson Education Ltd 2023 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 Number Indicative content Mark 1 (a) Knowledge 2, Application 2, Analysis 2, Evaluation 2 ● Sales forecasts are estimates of future sales that are usually based on previous sales figures, market surveys or managerial estimates ● Sales forecasts may be less accurate due to changing consumer trends (fashion for electric cars) / economic variables (supply chain shortages, rising costs of fuel) / the actions of competitors (e.g. potential price wars between Audi and BMW) ● Higher interest rates might increase the cost of buying a car using a loan which could reduce demand to lower than was initially forecast ● Government grants should make purchasing electric cars more attractive for consumers because they should now be more affordable resulting in higher than expected sales. Possible counter-balance ● Sales forecasts may be accurate because future sales are based on previous sales. Although fashions might change market research re consumer car tastes could be useful, a switch from diesel to petrol cars, from fuel to electric cars, from 4 x 4s to smaller cars, etc. ● Past data e.g. the 78.7% increase in sales of BEVs between 2021 and 2022 and experienced car manufacturer managers can be a useful guide and adjust on the basis of market intelligence ● Results from focus groups, product trials or test marketing at Jaguar can be extrapolated to help ensure that sales forecasts are more accurate. (8) Level Mark Descriptor 0 • A completely inaccurate response. 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. • 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 using quantitative and/or qualitative information • Supported throughout by use of the business behaviour/context, though unlikely to show the significance of competing arguments. Level 3 6–8 • Accurate and thorough knowledge and understanding. • Logical chains of reasoning, showing cause(s) and/or effect(s). • Assessment is balanced, well contextualised, using quantitative and/or qualitative information • Supported throughout by relevant and effective use of the business behaviour/context, and shows an awareness of competing arguments/factors including supported judgement Question Number Indicative content Mark 1 (b) Knowledge 2, Application 2, Analysis 3, Evaluation 3 Marks for application and analysis include up to 2 marks for quantitative skills Quantitative skills assessed: QS8: use and interpret quantitative and nonquantitative information in order to make decisions QS9: interpret, apply and analyse information in written, graphical and numerical form. ● Just in time stock control means that manufacturers do not need to hold large stocks of components (tyres, car seats or windscreens) since these arrive as and when needed ● It becomes easier for companies like Jaguar to be flexible and respond to special orders or changes in demand (BEV rose from 22,003 in 2021 to 39,315 in 2022) ● Holding less stock saves on warehouse costs. Space in manufacturing plants may have been needed for stocks of components, which can be freed up to increase production capacity ● JIT may improve liquidity for car manufacturers because they no longer need to buy large volumes of components such as tyres/car seats/semiconductors. Possible counter-balance ● Deliveries to car manufacturers for the 39,315 electric cars in March 2022 (a 78.7% increase on 2021) are likely to be more frequent, which therefore depends on close relationships between car manufacturers and suppliers to ensure that components are not late ● If car manufacturers only use small amounts of supplies at a time, such as batteries/tyres/car seats/windscreens, then purchasing economies of scale may not be achieved resulting in higher unit costs ● Shortage of key components such as semiconductors which may have otherwise been bought in bulk can disrupt production and therefore prove costly to manufacture. Possible judgement ● JiT may save storage costs but is only as good as the suppliers. It is clearly important, as supplies of key components e.g. semiconductors, are crucial to the successful manufacture of all cars. (10) Level Mark Descriptor 0 • A completely inaccurate response. 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 3–4 • 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. Level 3 5–6 • Accurate and thorough knowledge and understanding. • 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 • Supported throughout by use of the business behaviour/context, though unlikely to show the significance of competing arguments. Level 4 7–10 • Accurate and thorough knowledge and understanding. • A coherent and logical chain of reasoning, showing cause(s) and/or effect(s). • Assessment is balanced, and well contextualised, using quantitative and/or qualitative information. • Supported throughout by relevant and effective use of the business behaviour/context, and shows an awareness of competing arguments/factors leading to a supported judgement Question Number Indicative content Mark 1 (c) Knowledge 2, Application 2, Analysis 4, Evaluation 4 ● Foreign Direct Investment (FDI) occurs when companies with their head office in one country set up factories or offices or distribution outlets in another country. It can also be external growth ● It may create manufacturing jobs in regions like the West Midlands. Incomes in the area might therefore increase which should help to fuel growth of car sales and thus the manufacturer might benefit from extra sales revenue in the longer term ● FDI may reduce the need for imports, such as Toyota cars to the UK because they are being manufactured in Derby. This might help reduce car prices and improve choice for the car consumer. Thus, increasing demand for Toyota cars made in the UK ● Other businesses in the UK, which are part of the car supply chain, may benefit directly from supplying companies like Jaguar with components. Potential counter-balance ● Profits might be repatriated back to the home country (e.g. Japan or India) which might deny the UK Government tax revenues ● UK business culture may be harmed by Japanese business culture which might affect the productivity of staff in UK car production plants ● Local community and environment may be damaged by the FDI such as an increase in pollution, congestion caused by the manufacture or transport of cars ● FDI may not be that important for job creation because car manufacturing is capital intensive and therefore may not generate many additional jobs. Possible judgement ● The impact of FDI would be positive if a region has a strong reputation for employee skills such as engineering. Jobs could be created in areas like Derby because the workforce already has the necessary skills and FDI is essential for the car manufacture in the UK. ● The foreign business directly investing may choose to withdraw its investment in the UK car industry, e.g. wages become too expensive / there are a lack of trade agreements making the UK less attractive. In which case more production facilities may be built by Jaguar in the home country of India. (12) Level Mark Descriptor 0 • A completely inaccurate response. 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 3–4 • 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. Level 3 5–8 • Accurate and thorough knowledge and understanding. • 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. • Supported throughout by use of the business behaviour/context, though unlikely to show the significance of competing arguments. Level 4 9–12 • Accurate and thorough knowledge and understanding. • 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. • Supported throughout by relevant and effective use of the business behaviour/context, and shows an awareness of competing arguments/factors leading to a supported judgement. Question Number Indicative content Mark 1 (d) Knowledge 4, Application 4, Analysis 6, Evaluation 6 ● Differentiation involves making products or services more attractive and distinct from competing products ● Cost leadership is a strategy of seeking lower cost to allow a business to reduce prices and therefore increase sales and revenue. Differentiation ● This might be achieved by a car manufacturer in the electric car market making effective use of the design mix, e.g. making the car with the higher mileage range per battery charge more attractive / to create more attractive cars which are more aesthetically pleasing ● Effective sales and after sales service through premium car dealerships, e.g. Tesla, might help increase demand for cars as customers feel valued ● Successful sales of electric cars may require close relationships with customers and effective market research, such as knowing that customers value the guarantees on battery life ● As the car market is likely to be competitive, successful marketing strategies to communicate any USPs (distinctive brands such as Polestar, cheaper running costs, relatively quiet engine) to the consumer ● Differentiation may prove too costly especially given the need for effective R & D, e.g. designing batteries with longer mileage Cost leadership ● Larger scaled production of BEVs should help reduce average costs and so allow manufacturers like VW to sell BEVs at lower prices making them more affordable and so help to boost sales ● Cost leadership might be a strategy of lowering costs in order to raise profit margins by not altering prices. This could give car manufacturers the extra profits required to invest in improvements in technology to produce BEVs ● Use of JIT stock control in the BEV production process helps to reduce stock holding costs and improve quality. This should lead to reduced average costs ● Car manufacturing is capital intensive and investments in new technology such as CAD/CAM may lead to improved efficiencies in production and lower costs of manufacturing Possible recommendation ● Differentiation may be better given the importance of how a car looks and functions. Competitors might be able to copy the cost saving techniques used by matching investments in car manufacturing technology or even by outsourcing production ● Cost leadership may be more effective because the electric car market is becoming more competitive as more manufacturers produce electric cars. Consumers may be more price conscious requiring manufacturers to become more efficient in order to charge affordable prices. Examples of possible ‘MOPS’ recommendations Market – Customers with high incomes and long-term views may be attracted by the differentiation aspects of BEVs Objectives – Net zero timetable if supported by government might make differentiation of cars more likely in order to meet environmental objectives Product – BEVs at present involve lower running costs which may important to consumers faced with an overall increase in the cost of living Situation – the rising costs of energy and fuel may determine which option is better for the customer. Especially the case if real incomes fall (20) Level Mark Descriptor 0 • A completely inaccurate response. Level 1 1–4 • Isolated elements of knowledge and understanding. • Weak or no relevant application of business examples. • An argument may be attempted, but will be generic and fail to connect cause(s) and/or consequence(s)/effect(s). Level 2 5–8 • Elements of knowledge and understanding • Which are applied to the business example. • Arguments and chains of reasoning are presented, but connections between cause(s) and/or consequence(s)/ effect(s) 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. Level 3 9–14 • Accurate and thorough knowledge and understanding • Supported throughout by use of the business behaviour/context. • Uses developed chains of reasoning, so that cause(s) and/or consequence(s)/effect(s) are complete, showing an understanding of the question. Arguments are developed. • Quantitative and 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. Level 4 15–20 • Accurate and thorough knowledge and understanding • Supported throughout by use of relevant and effective use of the business behaviour/context. • Uses well-developed and logical, coherent chains of reasoning, showing a range of cause(s) and/or effect(s). Arguments are fully developed. • Quantitative and qualitative information 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 recommendation(s)