SECTION A

1a. Fixed assets are

assets used for business operations rather than for selling and is
ast for more than 12
months from the balance sheet date, such as
likely to
equipment. premises, machinery and
[21
Candidates are not
Award [1] mark for a
expected to word their definition exactly as above.
basic definition conveying
the idea that fixed assets are those which last for
more than 12
months in the business. Award
such as the idea that additional [1] mark for extra relevant information,
the asset is not for resale
or for some
(b) Calculate the values of X and Y
examples given.
in Table 1 (no working required). [2]
X =
$2200 (millions of dollarss)
Y $1500 (millions of dollars)
Award [1] mark for each
correct answer up to a maximum of [2].
(ii) Construct a profit and loss account for SE
for 2015 and 2016.
41
Sales revenue 2015 2016
Cost of goods sold 4300
5100
Gross profit_ 2100 2300
Expenses 2200 2800
Net profit before interest and tax 1200 1300
1000 1500

Award f4] if both profit and loss accounts

are correct. Award
candidate correctly formats both [3] if the
mathematical error. profit and loss accounts, but has
one
Ifa candidate does not
correctly format the profit and loss accounts or has two
mathematical errors, award [2]. Award
some understanding of a
[1] if the candidate demonstrates
errors.
profit and loss account but otherwise
has numerous
 Own figure rule applies. Many candidates will probably rough out a P & L on scratch
the P & L on the
paper to produce answers for 1(b)(i) and then neatly reproduce the
examination paper. fa candidate makes a mathematical error
in (b)(i) and makes
same error in (b)fi), apply the OFR.

21
(working capital) for 2016 (show your working)
all
(c) Calculate net current assets
liabilities
calculated by subtracting current
Net current assets (working capital) is
from current assets (all in millions of dollars):
Current assets Current liabilities Net current assets
$700 $300 $400

assets" is not sufficient for getting

liabilities = net current
Writing out "current assets current -300 = 400.
Candidates must write out $700
the [1] for correct working.

answer. Award up to a
Award [1] for the corect working and [1] for the correct
maximum of [2]

2 [21
State two elements, other than a cash flow forecast, of a business plan.
(a)
A n executive summary
A business description
A market analysis
Financial forecasts
Marketing strategies
Organization strategies
Business objectives
Mission/vision statement
.Human resources plan
Type of organization
Analysis, provided the candidate gives some specifics (PESTLE, SWOT, ratio, etc)
.Forecasted: profit and loss and balance sheet

Accept any other relevant, meaningful element (eg product portfolio).

N.B. Ifa candidate states mission and vision statements, award [1]. Ifa candidate states
either vision or mission statement, award [1]. Ifa candidate states forecasted profit and loss
account or forecasted balance sheet, award [1]. Ifa candidate states both forecasted profit
and loss account and forecasted balance sheet, award
[1
Do not award a mark for information such as table of contents, name and address of
business, index, etc. Also, do not accept executive personnel introduction, as in this case
that would be totally irrelevant.

Award [1] for stating an appropriate element of a business plan (application not
required), up to a maximum of [2].
(b) Prepare a cash flow forecast for Las Migas for the first four months of operations. 61
All figures in $

Month 1 Month 2 Month 3 Month 4

Sales 1500 1500 3500 3500

Total receipts (inflows) 1500 1500 3500 3500

Rent 1000 1000 1000 1000

Interest 45 45

Salary 390 390 390 390

Ingredients and supplies 450 450 1050 1050

Electricity 15 5 35 35
Total payments (outflows) 1900 1855 2520 2475
Net cash flow
(400) (355) 980 1025
Opening balance 100 (300) (655) 325
Closing balance (300) (655) 325 1350

Accept slightly different headings /format.

N.B. Allow candidate own figure rule
(OFR): if a candidate makes an error in one
row and carries it through the remainder of the forecast that is
only one error. This
provision includes both mathematical errors and conceptual errors (for example, if a
candidate has the interest in the incorrect month then candidates should
(1] for that error. only lose

Ifa candidate misclassifies an item, like

salary, as an infiow, consider that one error.
Award [1] if the candidate conveys some
understanding of what a cash flow forecast
is, but otherwise the forecast is largely inaccurate,
incomplete,
or illegible.
If the candidate produces a cash flow as below:

4
 Month 1 Month 2 Month 3 Month 4

Total receipts (inflows) 1500 1500 3500 3500

Total payments (outfiows) 1900 1855 2520 2475

Net cash flow (355) 980 1025

(400)
Opening balance (655) 325
100 (300)
Closing Balance 325 1350
(300) (655)
futher marks
Award maximum of [5] if otherwise fully correct. Deduct any
a
and conceptual errors.
for mathematical
according to the guidance above

it is not in a generally
Award [2-3] ifa cash flow forecast is drawn, but either
forecast contains three or more errors,
it is untidy, and/or the
accepted fomat or
which could include, in addition to number placement problems and mathematica
word profit" rather than "net cash filow) or
erors, conceptual errors (using the
omissions, such as not having a line like "closing balance" or totals.

Award [4-5] if the cash flow forecast is drawn essentially

correctly and neatly in a

there is error for [5] or two errors for [4

generally accepted format, but one

Award [6] if the cash fiow forecast is drawn accurately and neatly in a generaly
candidate provides a heading of total
accepted format, and is error free. If the or outflow- do not
infiow/outfiow without using another heading above of inflow
penalise as an omission.

the
f the candidate omitted both headings of outfiow/infiow one error substituting
=

tem "net profit in the cash flow forecast for "net cash fiow" is inaccurate and [1]
should be deducted. If the candidate has only one row for all
cash outflows, deduct
[1] from the total mark awarded.

Full working is not expected

 business.
[2]
as a new
(c)Explain one problem that Las Migas may experience
credit to new businesses
suppliers are sometimes reluctant give
to
Banks and Carolina the money sne
with trading records. The local bank may not lend
no is already very competitive.
to set up the bakery, especially if the market
needs are insufficient.
Her personal savings, as for many start-up owners,
owners may lack management skills, leadership
skills, etc.
Many start-up
has no experience with financial records, account and estimates, Wnicn
Carolina can be risky
are vitalfor business survival. Carolina's lack of managerial skills
and jeopardize Las Migas' survival.
L a s Migas will have to face competition from established bakeries. In a small
Will
town, will demand be for another bakery? As a start-up, Las Migas
enough
have to find a USP to survive and build its own customer base.
One problem that Las Migas could face is that the salary expected is low relative
personal casn
to her rent as she tries to establish her business. She might have a

flow issue

N.B. Accept cash flow problems/a need for finance, referring to the cash flow forecast
constructed.

Do not accept Tegal issues, as it is a reasonabie assumption that Carolina is

operating within the law.

Award [1 for a relevant generic problem identified or described and [1] for any
additional explanation in context

(2] cannot be awarded for the problem if the response lacks either explanation
and/ or application.

For example: for identification or a description of the problem with or without

application [1
For explanation of the problem with no application [1].

For explanation of the problem and application [2.

6
Section B
3

(a) Define the term offshoring. (2

Offshoring occurs when a company moves a business process (manufactunng.

for example) from one country to another country (thus, "offshore").

and outsourcing.
Disagreement exists over the relationship between offshoring
Two possible relationships are
offshoring occurs only by foreign direct investment (a company bullding
or

facilities offshore and then operating them itself):

purchasing manufacturing
an external organization
offshoning can be achieved by outsourcing (having that the external
perform some aspect of a business's operations provided
organization is "offshore").

maximum of [1] when a candidate defines

N.B. accept either. However, award a
as a necessary condition of
offshoring as outsourcing or considers outsourcing
offshoring.

Accept any other relevant definition.

N.B. no application required. Do not credit examples.

and understanding
Award [1] for a basic definition that conveys partial knowledge
moves a business process to
another
that offshoring occurs when a company
Country.
Award [2] for a full definition that conveys knowledge and understanding similar
to the answer above.

1
(b) Explain one advantage and one disadvantage for Vinn of using an identical
marketing mix. 41
Possible advantages include:
could
Vinn develop a brand identitywhich in turn could improve Vinn's
Customer and brand recognition and loyalty everywhere they sell. Customers
decision making in favour of Vinn could be enhanced.
Vinn is likely to experience a promotion/ advertising economies of scale. With
increased movement by consumers and the
widespread use of media,
uniformity in promotion could be less expensive regionalized marketing
allowing Vinn to use resources for other purposes.
Without a need for product adaptation, Vinn can cut costs of production of its
jeans substantially. Product and promotional adaptation (or any adaptation)
can create a material extra cost.
Accept any other relevant beneft for Vinn due to any use of identical
marketing mix like price/ distribution and so on.

Possible disadvantages include

A n identical marketing mix everywhere it sells may not recognize cultural and
language differences. For instance, Vinn advertisements could use male and
female models, colours and language that may not be
acceptable in some
places with strong religious traditions. Vinn may not be able to reach local
markets as it fails to capture local audiences.
Brand image: anti-globalization pressure groups such as "B-Local"
may argue
that Vinn is imposing a uniform culture on different
regions by the power of
advertising. Vinn's brand image and consumer perception may be negatively
affected
Differences in the legal environment may prevent Vinn from actually applying
the same marketing strategy everywhere it sells. Vinn may find some legal
restrictions to advertise its jeans in some countries.
An identical marketing mix would include the same
price, and the same price
may preclude sales in some markets.

Accept any other relevant advantage / disadvantage.

Accept any other relevant explanation.

N.B. just using the name Vinn does not constitute application to the stimulus

Mark as 2+2.

Award [1] for each correct advantage/disadvantage identified or described and

[1] for a relevant explanation with application to Vinn. Award up toa maximum of
[2]

[2] can not be awarded per advantage / disadvantage if the response lacks either
explanation and/ or application.
For example:
For an identification or a description of an advantage / disadvantage with or
without application [1.
For explanation of an advantage / disadvantage with no application [1]
For explanation of an advantage / disadvantage and application [2].

8
(c) Explain one advantage and one disadvantage for Vinn of operating as a public
limited company. [41

Advantages of operating as a public limited company (plc) could include:

E a s i e , and typically cheaper, access to additional capital. Vinn may need
is likely to be
additional capital to implement its repositioning strategy that
expensive as new technology is needed.
Enhanced media coverage, especially beneficial when the news is positive
itself and create
Being an American plc, Vinn can use the media to reposition
awareness in the American market.
recruit first-rate
Greater prestige and, thus, typically greater opportunities to
recruit better designers or
employees and executives. Vinn may need to
employees who can work with the new technology.

could include
of as a public limited company (plc)
Attracts greateroperating
Disadvantages media coverage, which can be negative when used by anti
could be tarnished
globalization pressure groups/ Vinn's brand image
everywhere it sells.
as greater efforts have to be
Decision making tends to be more cumbersome,
coordinate with stakeholders. Vinn has
made to communicate with and even
back to the US. Some shareholders
to communicate their decision to offshore
of strategic focus.
may disagree with a complete change
The re-shoring and re-direction
Lack of privacy or the required transparency.
for Vinn, which could
of focus could lead to a reduction in short-term profits
damage its reputation in the market place.
to a public limited
N.B. advantages and disadvantages do not have to be unique
could have as an advantage "limited
company. For example, a candidate
liability", which is also an advantage for private limited companies.

Accept any other relevant advantage/disadvantage.

Accept any other relevant explanation.

Mark as 2+2.

Award [1] for each correct advantage /disadvantage identified ordescribed and
maximum of
1] for a relevant explanation with application to Vinn. Award up to a

[2]
[2] can not be awarded per advantage / disadvantage if the response lacks either
explanation and/ or application.
For example:
For an identification or description of an advantage /disadvantage with or
without application f1].
For explanation of an advantage/ disadvantage with no application [1].
For explanation of an advantage/ disadvantage and application [2].

9
(d) Discuss Vinn's decision to re-shore back to the US and to produce only
individually designed jeans. (10)
Re-shoring:
In the near future Vinn may not be able to benefit from lower manufacturing costs
as labour costs in China are rising faster than in the US. Producing jeans in
China and Turkey will be less attractive and cost effective for Vinn and generally
for multinational companies.

offshoring resulted in some quality issues that negatively affected Vinn's brand
image given customers' complaints. Given the increase in global competition,
communication issues and the erosion of costs advantage, perhaps the decision
to reshore is appropriate, especially if coupled by the repositioning strategy. With
a
change/re-shoring, brand reputation may be gained and communication
problems with offshored employees will be eliminated as manufacturing will now
take place in the US. Moreover,
re-shoring the production process could improve
quality control processes and improve Vinn's quality standards.

However, re-shoring manufacturing to the US may not be that straight forward,

Vinn will have to invest in the building of new factories, and the necessary finance
may not be that easy to raise in a context of globai economic recession.
Nevertheless, one may judge these issues as less significant due to their
term nature.
short

Change of strategic focus to produce individually

designed jeans:
Vinn is planning to change its strategic focus from standardized jeans to
individually designed jeans to create a new competitive position. Although,
management made the decision, does this have shareholder agreement? The
production of individually designed jeans requires specialized technology which is
Currently available in the US only. In addition, highly skilled creative labour such
as
designersare currently located
in major American cities. Re-shoring
production to the US will enable both market proximity and labour proximity to
produce jeans for a niche market ready to pay high prices at iower costs.
Transport cost will also be reduced. The strategic refocus may be judged as an
appropriate one given the intense competition in the mass market and the
discovery of an untapped and potentially profitable niche market in the US. To
gain a first-mover advantage, Vinn must re-shore and change its strategic focus.
These two strategies appear complementary.

10
However, Vinn is moving into a new market. one it is unfamiliar with There are
risks assoCiated with possible misjudgments about the size and nature of the
target market - how good is its market research? Designer branded jeans are not

exactly new. Could there be competitive issues either known or unknown?

Although the potential profits per unit in niche markets are usually high. by their
nature, niche markets are small and success may attract other manufacturers
that are possibly smaller and more flexible. Stil, further niche markets usually
emerge as part of trends, and this is especially so in fashion

N.B. candidetes do not have to favour both decisions to (1) re-shore and (2) to
switch strategic direction However, they are expected to evaluate both and
make a judgment about both. For example, a candidate could conclude that Vinn
should re-shore but not switch strategic direction.

Candidates are expected to provide a conclusion and a judgment.

Accept any other relevant discussion.

Candidates are not expected to use the term "a change in strategic focus"

Marks should be allocated according to the markbands on page 3 with further

guidance below.

A "balanced response" means that the response covers at least one argument for
and one argument against each decision (re-shoring and producing individually
designed jeans).

Maximum One decision Two decisions Judgments/conclusions

mark
award
3 Unbalanced N/A N/A
NIA unbalanced N/A
One balanced and one unbalanced N/A
Balanced N/A Judgments/conclusions
N/A Balanced No
judgments/conclusions

A nominal conclusion
(conclusion paragraph)
does not necessarily
mean

judgments/conclusions.
7-8 Balanced Judgments/conclusions
based upon analysis and
explanation in the body of
the response
9-10 Balanced Judgments/conclusions
based upon analysis and
explanation in the body of
the response.

11
 State two types of business, other than grocery stores, that operate in the tertiary sector. [2]
4. (a)

The tertiary sector is the service sector of an economy, including retal outlets
Candidetes may name any type of service sector business. Do not give credt tor
"online grocery stores" but award a mark for convenience store (or some other
small shop where some grocery items might be sold)
Award [1] for each type of busines in the service sector identified up to [2]
(b) Explain two elements of UFoods marketing mix other than price. 41
The four Ps of the marketing mix that candidates may write about are place
promotion, and product. In the stimulus, place and product can be identified:
Place: retail stores.
Product: According to the stimulus, U-Foods sells all-organic foods. High-
quality, all-organic products are its USP.

Award 1] for identificetion of one of the three Ps and an additional [1] for
application to the stimulus and explanation.

Mark as [2+2

N.B. If the candidate mentions promotion, award a maximum of [1], as nothing in

the stimulus would allow for application. Thus, if a candidate explained promotion
with some theoretical types and, then correctly exp/ained and applied product.
the total mark would be [3]: [1] for promotion and [2] for product.

(c) Calculate for 2019:

() NS 507s gross profit margin (no working required):

S5 300000x 100 =26.5 % Gross profit margin is 26.5 %

20 000 000

Award [1] for the correct answer

(ii) NS 507s net profit before interest and tax (no working required)
Net profit before interest and tax =
3% x 20 000 000 $600000.
Award [1] for the correct answer

12
(d) Explain oneeconomy of scale, other than
which NS might benefit.
purchasing economies of scale, from
[21
Other economies of scale from which NS
might benefit include:
.Marketing economies of scale
Financial Economies of scale
Managerial economies of scale
Human resources economies
of scale
Network economies of scale

Accept any other relevant economy of scale.

Award [1] for identification of an appropriate economy of scale and an additional

(1] for appropriate application to and explanation of the stimulus. Maximum
award: [2)
(e) Discuss two possible methods that NS 507 could use to regain lost market share (101
The stimulus provides some guidance to the students on ways to recover lost
market share. The fact that sales revenue is down 12 % suggests that NS 507
has lost some sales to U-Foods. Given that the number of transactions has
remained the same suggests that some customers continue to shop at NS but

13
 also go to U-Foods for certain items. One way that NS could attempt to recover
those lost sales is to determine which specific items have seen their sales go
down. It is likely that, for these items, shoppers are going to U-Foods. Once NS
has identified which items customers are going to U-Foods for, NS can make
modifications: improve the product, alter the price, or have better promotions A
disadvantage to this strategy is that it may not work or may be too expensive to
Work. For example, some customers are probably going to U-Foods for locally
produced organic meats. However, probably few opportunities exist for
economies of scale when U-Foods (or NS) purchase this type of meat. For
U-Foods, passing on high costs to customers is probably not a problem. U-Foods
is more expensive than NS and customers expect that. For NS customers,
however, prices lower than U-Foods is the expectation. Were NS to start
charging more, many customers may resist.

Another strategy is to use more aggressive pricingNS is a huge firm, and it

could lower its prices to trytogain more customers. Predatory pricing is probably
illegal, but NS 507 could, with the backing of the whole organization, be very
aggressive in its pricing just short of predatory to win back customers or the
Specific purchases that are going to U-Foods. The problem with this strategy is
that NS already has thin margins - typical of the grocery store industry and
lowering prices even further may be a problem.

A third option is to start allowing customers to order online and have home
delivery. This option would be expensive to set up and operate, and NS would
lose impulse sales.

Accept any other relevant way that NS 507 can recover lost market share

Maximum mark One way A second way Judgments/conclusion

award
Unbalanced N/A N/A
Unbalanced Unbalanced NIA
One balanced and one unbalanced N/A
Both balanced No
judgments/conclusions
7-8 Balanced Judgments/conclusions
based upon analysis
and explanation in the
body of the response
9-10 Balanced Judgments/conclusions
based upon analysis
and explanation in the
bodyof the response

5. (a) State two types of above-the-line promotion. 12

Appropriate types of above-the-line promotion include

O newspapers
O magazines
Oradio advertisements
televisionadvertisements.
Accept any other relevant answer, including "advertising on the Internet" or "the
Internet."
Award [1] for each appropriate type of above the line promotion up to [2]

14
(b) Using Table 1, construct a product position map/perception map for all four
hotels prior to the opening of GR. [41

High-quality service
A

Low prico High pric

D Low-quality service

Award [1] for the overall layout of the map with both axes labelled correctly
(price: high or low; service: high or low).
N.B. It does not matter which one is horizontal/vertical.
The correct positioning is as shown above. Adjust appropriately if a candidate
makes the price the vertical axis and quality the horizontal axis.
Award [2] for a correctly labelled position map with two of the companies properly
placed.
Award [3] for a correctly labelled position map with three of the companies
properly placed.
Award [4] for a correctly labelled position map with all four companies properly
placed
The position map has been scaled from $155-$245 for the horizontal axis and 3
stars to 5 stars for the vertical axis. If candidates scale the perception map
differently (1 to 5 stars, for example), mark accordingly and per the explanation
for [1]. [2]. 13] and [4] above.

The candidates were asked to position the four hotels prior to the opening of the
GR. The four hotels represent the full range of the market (at the time, before
GR opened) and, therefore, the positioning should be as shown above.
However, candidates may consider a 3-star hotel to be "middle quality" rather
than low quality because three is the mid-point between 1 star and 5 star. Thus,
some candidates may position the four hotels more toward quadrant one than
they should.
Nevertheless, examiners should have some forbearance: as long as the relative
position of the hotels is accurate, award marks appropriately. For example, the
position map below would earn 4].

15
 High-quality service

Low pnce D
High pric

Low-quality service

N.B. If the relative position is correct but the candidate has compressed the
positions of the four hotels into one quadrant (which would typically be quadrant
1), awarda maximum of [3].

(c) Explain two ways in which GR is able to offer rooms at a lower price than IF. [4]
Three ways in which GR is able to have lower costs than traditional hotels
include:
more modest rooms, which include smaller room size and less elegant
furniture
lower personnel costs, as much ofthe traditional staff is replaced by kiosks
and automated billing
Feweramenities, likea swimming pool and a high-quality restaurant.
Accept any other relevant example.
If a candidate refers to the airport versus city-centre location and assumes that the
airport location is less expensive, award [1].
Mark as [2 + 2.

Award [1] for identification of a way to lower costs and an additional [1] for an
explanation thereof.

(d) Discuss possible changes to IF's marketing mix to reduce the loss of customers
to GR. [10
Main differences in the marketing mix of the two hotels are

Imperial Falls Guest Rooms

Product Elegant/high end Clean, appropriate amenities for

16
business travellers, though not elegant.
Price High Lower cost, though there is the membership fee.
Place Same/City centre Same/Near airport.
Promotion Limited Both above-the-line promotion and social media marketing

The question of place is tricky. At one level of argument, place is different than
location. However, in the case of a hotel, place and location are virtually
hotels ontologically a venue where customers rent
indistinguishable, as are

rooms for the night. Thus, in the case of hotels, place devolves to location.

Possible changes to the IF's marketing mix include

too
and passing some of those savings
on
O Product: Cutting back on amenities
are negatives to this tack. First,
Customers via lower room rental rates. The
deterioration of the high quality,
a reduction of amenities could be viewed as a
which is curently IF's USP.
lowered and
for rooms. If prices are

O Price: Reducing the rates that it charges

of service or amenities, IF could experience
changes are not made in quality room. Unclear is
lower profits. IF would certainly
experience lower profits per
whether the lower prices would lead to higher occupancy.
features that GRR
O Promotion: Increasing
its promotion. IF has three noteworthy
centre location.
have: elegance, five-star quality and a central city
does not
customers back based upon
be able to attract
With greater promotion, IF may in an
centre and the elegance of staying
the convenience of being in the city

old palace. its

that IF would or could change
Place/Location: It is not very realistic to think
O under promotion,
location will probably o c c u r
location. Any discussion of
promotion,
candidates will discuss ways
in which IF can, through
whereby
make their location in
the city centre a selling point.
to know the
the candidates are not expected
Remember that at standard level,
promotion,
rather just the four Ps: price, place,
extended marketing mix but extended
if they address the
Candidates should not be penalized
product.
marketing mix.
markbands on page 3 with further
Marks should be
allocated according to the
guidance below. Candidates
are maximum awards.
in the far right column
N.B. The marks listed balanced way yet
addresses two Ps in a
a response that
could technically have
or application
for [4] (for example).
still lacks the depth, precision,

Section C further guidance

assessment criteria on pages 4 to 5 with
allocated using the
Marks should be
below. mark awarded per criterion
and abrief note
include a breakdown of each
should The main aim of paper 2
N.B.: examiners each candidate's response.
mark awarded at the end of
explaining the understandingof the
six (change, major concepts
candidates'
HL) section Cis to assess
Candidates are to
business context.
(SL or
innovation, strategy) within a

culture, ethics, globalization, of their choice. The expectation of the

through an organization
demonstrate their
understanding
17
use of an organization is to allow assessment of the depth of candidates' understanding through
of
their ability to apply the concepts and their knowledge. Assessment of candidates' knowledge
minor factual errors
the organization itself is not an aim of the assessment. If a candidate makes
the
and these minor erors have no genuine bearing on whether the candidate understands
concepts, examiners should not penalize. For example, a minor error of historical fact (the year
when a company was founded, or the year in which a change was implemented) which has no
genuine bearing on candidates' understanding of the concepts does not warrant penalty.

6.With reference to an organization of your choice, examine the impact of innovation

onpromotional strategy [20]
7.With reference to an organization of your choice, examine the impact of globalizationon change
in operations management.[20]
8.With reference to an organization of your choice, examine the impact of ethics andculture on
human resource management (20]

It is expected that the candidate explains the chosen theoretical direction / content of their
response. Additional guidance in relation to the assessment criteria For each criterion, the aim is
to find the descriptor that conveys most accurately the level attained by the candidate, using the
best-fit model. It is not necessary for every single aspect of a level descriptor to be met for that
mark to be awarded.
The highest-level descriptors do not imply faultless performance and should beachievable by a
candidate
A candidate who attains a high level of achievement for one criterion will not necessarilyreach
high levels of achievement for the other criteria and vice versa.If only one concept is addressed:
Criteria A, B, C and E: award up to a maximum [3].
Criterion D: full marks can be awarded. Where the question asks for impacts of two concepts on
content, examiners must allow for unbalanced treatment of the two concepts throughout a
candidate's response. One concept may be more significant than the other.

In section C, the question rubric explicitly states that "organizations featured in sections A and B
and in the paper 1 case study may not be used as a basis" to candidate's answers to questions
6,7 and 8. When this happens please award marks as follows:
Criterion A Award a maximum of [1]. The business management content cannot be relevant if the
organization is fictitious.
Criterion B0 marks - there is no connection to a real-world organization.
Criterion C Award a maximum of [1]. The arguments cannot be relevant if the organization is
fictitious.
Criterion D Mark as normal.
Criterion E Award up to a maximum of [1].

The individual and/or group perspective(s) cannot be relevant if the organization isfictitious
Criterion B For (2"...connection is notdeveloped" should be treated the same as superficial.
Criterion C .Questions 6 to 8 require consideration of the impact of one concept on a second
concept- therefore accept 2+2 arguments for a balanced response.Justification is through
logic or data.For [2] there is no balance as there are no counter arguments at all, or the

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arguments areeall one-sided then this would be unjustified..For [3] there is some balanced
arguments some of which are justified.
Criterion D
Introductions need to be concise and related to the question.
The candidate's response does not to have explicit headings for each structural element.
A body is the area in which the substance of arguments occur. It is usually located between the

introduction and the conclusion.

Fit-for-purpose paragraph means that ideas are presented in a clear academic way. For
example, one idea per paragraph.
Criterion E
One example of an "individual" could be an individual consumer or an individual manager.
However this could not tbe considered with a "group" of consumers or a management team.
For 14). a balanced response: need to look at the perspectives of both individual and group(s).
The chosen individual, group needs to be applicable and relevant to the question with specific
explanation.
Candidates need to go beyond stating the stakeholder.
Candidates need not explicitly say "stakeholders"