Business Studies · May / June 2020 · Paper 22 · Question 2
0450
As printed in the paper
Show the answer and mark scheme
2(a)[8]
Explain four ways a business plan can be useful. Award 1 mark for each relevant way (maximum of four ways): Relevant ways might include:
Helps gain a bank loan – shows the business is likely to be profitable and repay the loanOrganises thoughts about resources needed – identify types of workers need to recruitCan plan and budget for resources needed- e.g. to budget for new production machineryFinancial documents will help to show expected returns – to see if it will bring the return expected by shareholders Award a maximum of 1 additional mark for each explanation of the way a business plan can be used. For example: Forecast financial documents will show potential profit to be made (1)can see if it will give a satisfactory return on the investment. (1)
2(b)[12]
ES has been considering the following three methods of promotion for its products in export markets. Which method should ES choose? Justify your answer.
Advertise on national televisionAdvertise on ES websiteDisplay its products in shopping malls Level Description Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of two or more methods to promote ES’ products. Well-justified recommendation. Candidates discussing the three methods in detail, in context and with well-justified recommendation including why the alternative methods were rejected should be rewarded with the top marks in the band. 9–12 Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of at least one method. Judgement with some justification/some evaluation of choice made. Candidates discussing two or more methods in detail and applying it to the case should be rewarded with the top marks in the band. 5–8 Limited application of knowledge and understanding of relevant business concepts. Limited ability to discuss the methods to promote the products with little/no explanation. Simple judgement with limited justification/limited evaluation of choice made. Candidates outlining the three methods to promote the products in context should be rewarded with the top marks in the band. 1–4 No creditable response. Relevant points might include: Advertise on national televisionAdvert for scooters will go out to millions of peopleScooters can be shown in very favourable wayCan reach a target audience for scooters if shown during programmes likely to be watched by these target customers e.g. sports programmesVery expensive form of advertisingYounger consumers may not watch as much TV as older people so may not reach these consumers Advertise on ES websiteLarge amount of information can be postedCheap way to advertiseCan include videos of the scootersInternet searches may not highlight the website at the start of the search list and therefore it is missedInternet access may be limited in some countries where scooters are being exported Display its products in shopping mallsProvides a lot of informationCan also be persuasive with scooter to look at and sit onRestricted to a relatively small number of consumers in the mall Recommendation Justification might include:National TV as the scooters will be seen by the mass market and will not be seen by many people in shopping mall displays.Website useful for advertising when other forms of advertising have raised awareness of the scooters such as after the scooter has been seen in a mall display.Displays in shopping malls will be most useful as potential customers can sit on the scooters and see how comfortable they are. This may make people who have not even thought about buying a scooter consider them whereas advertisements in television and on websites may be ignored.
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