Business Studies · Oct / Nov 2025 · Paper 11 · Question 4

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MTL is a large business which sells children’s toys. MTL wants to act ethically with all of its stakeholder groups including its 430 employees. The market MTL operates in has become more competitive. The business uses a range of methods to promote its products. Having a good brand image is important. MTL’s directors are considering entering a new market in another country. They are aware there may be problems if they choose to do this. 4

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4(a)[2]
Define ‘brand image’. Award 2 marks for a full definition. Award 1 mark for a partial definition.
The image or identity given to a product/business which distinguishes it from its competitors brand [2]
Characteristics that distinguish a business from others through design or logo [2]
The general impression of a product/business held by consumers [2]
Personality given to a product/business through marketing activities [2]
Partial definition e.g.
Identity given to a product/business [1]
How product/business is seen by others [1]
Characteristics that make a business unique [1]
2
4(b)[2]
Identify two reasons why some markets have become more competitive. Award 1 mark for each relevant reason (max 2). Points might include:
Globalisation/growth of free trade agreements
Changes in technology or examples e.g. ecommerce/internet/social media
Changes in legal controls / more or fewer regulations / government intervention in the market
Transport improvements/infrastructure improvements Other appropriate responses should be credited. 2 Only award the first two responses given. Do not award:
Factors affecting demand or spending patterns such as changes in population, changes in advertising or changes in prices. Accept reduced barriers to entry once if no other specific reasons e.g. legal control/trade agreements
4(c)[4]
Outline one way MTL could act ethically with each of the following stakeholder groups: Employees Customers Award 1 mark for each relevant way (max 2). Award 1 mark for each relevant reference to this business (max 2). Points might include: Employees:
Pay fair/good wages [k] to its 430 employees [app]
Ensure fair/good working conditions [k] when making the toys [app]
Not employ child labour [k]
Not use zero hours contracts [k] Customers:
Charge a fair price [k] which can help maintain its good brand image [app]
Not advertise misleading prices [k] when operating in a competitive market [app] Other appropriate responses should be credited. 4 To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this question:
(Children’s) toys
430 (employees)
Competitive market
Large (business)
(Good) brand image
New markets in other countries
Methods of promotion Other appropriate examples can be credited.
4(d)[6]
Explain two problems MTL might have when entering a new market in another country. Award 1 mark for identification of each relevant problem (max 2). Award 1 mark for each relevant reference to this business (max 2). Award 1 mark for each relevant explanation (max 2). Points might include:
Lack of market knowledge [k] so may not be aware of competitors’ pricing/promotion [an] for toys [app]
Language differences) [k] so it may have to translate/change wording on the packaging [an] to explain how it is ethical [app]
Cultural differences [k] so product may not sell there [an] which could damage its brand image [app]
Changes in exchange rates [k] may make it difficult to set prices [an] for this large business [app]
Different legal controls [k] which could restrict what/how they can sell [an]
Import restrictions or examples such as quotas [k] which could restrict the number of products they can import [an]
Economic differences e.g. average income, stage in business cycle [k]
Social differences e.g. age structure [k]
Increased transport costs [k] as products may have to be transported over long distances [an]
Level of competition [k]
Lack of recognition of the business [k]
High taxes [k]
Difficulty in locating suppliers [k] 6 To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this question:
(Children’s) toys
Ethical
Stakeholder groups
430 employees
(Good) brand image
Large (business)
Methods of promotion Other appropriate examples can be credited. Some points can be [k] or [an] but only award once. Some [an] can be used for different points, but only award once. Guidance
Increased risk of non-payment/incorrect payment [k] as methods of payment are likely to be different between each country [an] Other appropriate responses should be credited.
4(e)[6]
Explain two methods of promotion a business might use for its products. Which method is likely to be the best for a large business to use? Justify your answer. Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award up to 2 marks for a justified decision as to which method is likely to be the best one for a large business to use. This is a general question so there are no marks for application. Some analysis can be used for more than one method, but only award once. Analysis can be awarded for explaining:
Advantages of methods
Disadvantages of methods
How the method works Guidance Points might include:
Television [k] is expensive/can include moving images to attract attention [an]
Magazines [k] as able to target specific types of customers [an]
Discount offers/promotional pricing/ (money off) coupons/loyalty card [k] which can make the products more affordable [an]
Social media/internet-based advertising/influencers [k] to reach large numbers of people [an]
Leaflets [k] as this is a low-cost method [an]
Posters/billboards [k] as can be seen by everyone who is passing by [an]
Point of sale displays/demonstrations [k] as this allows the customer to be shown how it is used [an]
Radio advertising [k] which allows them to target specific regions [an]
Newspapers [k]
Gifts [k]
Sponsorship [k]
Competitions [k] encourage customer to buy to receive a reward/win [an]
Free samples [k] increase costs [an]
BOGOF [k]
After-sales service [k] Other appropriate responses should be credited. Justification might include: Television [k] as able to include moving images to attract attention [an]. Another method is posters [k] as it can be seen by everyone who is passing by [an]. Television is the best method as this is a large business so it should be able to afford the cost involved [eval] and is likely to reach far more people than a poster [eval]. 6

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