5. (a). Content. Secondary [1] because business is a manufacturer{t] (b). Content. The public sector comprises business activities that are not usually profit motivated but whose rationale is to provide a range of acceptable quality services to al irrespective of abilty to pay. Knowedge Understanding ‘Awate of what public sector comprises [2] ‘Appreciates significance of differences [2] (c). (9). £200 times $1.5 [1 30012] (ii). Content. Rise in exchange rate implies that £ rate is higher against $. Thus might have risen to say £1 = $17 will rise and hence outcome Is unt '. Thus consequence will be that export price helpful to the business. Knowedge Understanding | application ‘Shows what change means [i] ‘Shows appreciation of significance [2] (@). (). Content. Pressure groups might awareness of their anti social act bring bad publicity or increase public ites. The purpose of this approach is to damage the company's sales and hence profits. Fear of this might bring about a change in company policies. Knowledge Understanding Application ‘Awareness of action [1] ‘appreciation of action [2] ‘applied to context [1] (ii). Content. Firms are often profit driven. Thus only consider financial costs. Social consequences of action often ignored. Thus the logic of legislation to curtail ‘such activity. Opinion required in answer based upon argument. Understanding Evaluation ‘Appreciation of issues [2] (Conclusion justified [2](a) (b) fa) (o) (c) {i)_A fixed cost is a cost that is unrelated to output [1k plus tu]. Simple response such as does not vary [1]. An acceptable example of a fixed cost [1]. 2 (ii) $16 000 fu). § sign not needed fo) (iii) $48 000/10 000 [1] = $4.8 [Zan] 2 (iv) unit cost = $6.4 [1] plus 0% = $3.2 [1] = $9.6 [1] [1W/tulta]. If $4.8 plus 50% 57.2 [2] i.e. 50% mark up on diract cost per unit not full cost per unit. 1 mark for correct method but numerical errors. (31 Method used is full cost mark up. This ensures that all costs are covered and thus profit is made on what is sold. However fails to consider competitors prices or market conditions. Thus unlikely to be the best [2k + Zap + 2e] Identifies method [1-2] Analyses method [1-2] Evaluates method [1 —2] (6) If machinery is old then probably less efficient than new machines. Furthermore probably carries higher repair and maintenance costs. [2] marks for identification of advantages [k]/[2] marks for [anJ/[2] marks for [ap]. (6) 11 mark per point identified [3] plus further mark for explanation [3] access to larger markets/image boosted/size/features/cost effective [3k/3ap]. awareness of opportunities [1-3] explanation of opportunities [1-3] [68] Technology creates opportunities e.g. cost savings/inew methods/new productsinew markets. It has also created problems eg. training/cost/breakdowns [2k/2an/2e]. identification of benefits/disadvantages [1-2] analysis of points made [1-2] evaluative comments showing judgement [1-2] [6](c) (i) Structure is an indication of the relationships between employees in an organisation often showing hierarchy and areas of responsibility. Reference to things like functional areas also acceptable. Simple answer such as shows way the business is organised [1] [1k/1u]. fea} Span of control refers to the number of subordinates directly accountable to an individual [1k/1u]. To gain full marks reference to Fig. 2 necessary. fea} (iii) Problems of a narrow span of control are over supervision/lack of delegation/top heavy business/costly (2k/2an] identification of problems [1-2] analysis of problems [1-2] [41 Value of computer sales = 3/8 of $240 [1] Answer =$90m [2] Value of exports = 10% of total value [1] Answer = $24m [2] In both cases correct answer alone gets full marks. (b) (i) L1 Demand not much affected by price [1] L2 Change in demand less than change in price [2] L3.% change in Q.D / % change in P less than 1 OR concept explained [3] (ii) If demand is price inelastic then prices will probably rise because such a change ‘would increase turnover [sales revenue]. However other business objectives might be being pursued e.g. market share. If so then price may be kept low. Knowledge of link [1] Understanding / application of link fawareness of other objectives [2-3] (c) A channel of distripution is the route taken by a product as it passes from the producer to the customer. Distribution is one element of the marketing mix. Thus it is important as part of an overall strategy of generating sales. Knowledge of channels of distribution [1-2] Application of concept to Playwal’s computer products [1-2] Evaluative judgement of importance [1-2] (d) tis difficult for a company to sell products in new markets overseas for various reasons. These might include reference to — tastes may differ in different countries hence customers might not like the games / existing brands may be hard to dislodge / distribution, network not well established / lack of awareness of potential customers / import taxes and other barriers to entry / adverse changes in exchange rates. Awareness of possible reasons [1-2] Explanation of reasons [1-2](a) (b) () (a Flow production usually involves large scale production where each operation on a unit is performed continuously, one after the other, offen on a production line. Thus companies Use the technique as a means of reducing unit costs when large volumes are being produced. Explanation of the term flow production [1-2] Evaluative judgement as to why BMF uses the method [1-2] Methods that can be identified are numerous but are likely to include — financial means [higher wages / bonuses etc] non-financial methods such as job enlargement / enrichment / fringe benefits. [1] mark per method identified plus [1] mark for explaining how it might operate plus [1] for linkage with motivation. Thus 2 times 3 marks available, To gain the third mark it is necessary to show how the method specifically creates a motivational force [by helping satisfying a need perhaps} Productivity is a measure of the effective use of a resource measured in terms of the output generated by that resource. It is important to the management of a business because it has a direct impact on unit cost and hence on competitiveness and profitability Knowledge of productivity [1-2] Social costs usually refer to the costs to society as well as to a business. They are usually regarded as being the negative externalities associated with business activity. In this context they would include nose / air / visual pollution as well as things like congestion and damage to local environment and other businesses. Knowledge of social costs [1-3] Explanation fapplication of the concept [1-3]