Ms 202301 Business U1
Ms 202301 Business U1
Ms 202301 Business U1
BUSINESS
BU01
Unit 1 Business and Markets
Mark scheme
January 2023
Version: 1.0 Final
*231xBU01/MS*
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
Mark schemes are prepared by the Lead Assessment Writer and considered, together with the relevant
questions, by a panel of subject teachers. This mark scheme includes any amendments made at the
standardisation events which all associates participate in and is the scheme which was used by them in
this examination. The standardisation process ensures that the mark scheme covers the students’
responses to questions and that every associate understands and applies it in the same correct way.
As preparation for standardisation each associate analyses a number of students’ scripts. Alternative
answers not already covered by the mark scheme are discussed and legislated for. If, after the
standardisation process, associates encounter unusual answers which have not been raised they are
required to refer these to the Lead Examiner.
It must be stressed that a mark scheme is a working document, in many cases further developed and
expanded on the basis of students’ reactions to a particular paper. Assumptions about future mark
schemes on the basis of one year’s document should be avoided; whilst the guiding principles of
assessment remain constant, details will change, depending on the content of a particular examination
paper.
Copyright information
OxfordAQA retains the copyright on all its publications. However, registered schools/colleges for OxfordAQA are permitted to copy material from this booklet for
their own internal use, with the following important exception: OxfordAQA cannot give permission to schools/colleges to photocopy any material that is
acknowledged to a third party even for internal use within the centre.
Copyright © 2023 Oxford International AQA Examinations and its licensors. All rights reserved.
2
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
How to mark
Aims
When you are marking your allocation of scripts your main aims should be to:
Approach
It is important to be open-minded and positive when marking scripts.
The specification recognises the variety of experiences and knowledge that students will have. It
encourages them to study business in a way that is relevant to them. The questions have been
designed to give them opportunities to discuss what they have found out about business. It is important
to assess the quality of what the student offers.
Assessment Objectives
This component requires students to:
AO1 Demonstrate knowledge of terms, concepts, theories, methods and models to show an
understanding of how individuals and organisations are affected by and respond to
business issues.
AO2 Apply knowledge and understanding to various business contexts to show how
individuals and organisations are affected by and respond to issues.
AO3 Analyse issues within business, showing an understanding of the impact on individuals
and organisations of external and internal influences.
AO4 Evaluate quantitative and qualitative information to make informed judgements and
propose evidence-based solutions to business issues.
3
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
Within each Assessment Objective there are three or four broad levels representing different levels of
achievement. Do not think of levels as equivalent to grade boundaries.
The indicative content gives examples of the kind of things students might do that would exemplify the
level. They are neither exhaustive nor required – they are simply indicative of what would appear at this
level. You will find that they sometimes indicate areas of content that can be handled with increasing
sophistication and subtlety. You will also find statements which only characterise work at the bottom or
top of the range.
Depending on the part of the examination, the levels will have different mark ranges assigned to them.
This will reflect the different weighting of Assessment Objectives in particular tasks and across the
examination as a whole. You may be required to give different marks to bands for different Assessment
Objectives.
Having familiarised yourself with the descriptors and indicative content, read through the answer and
annotate it (as instructed below) to identify the qualities that are being looked for and that it shows. You
can now check the levels and award a mark.
When assigning a level you should look at the overall quality of the answer and not look to pick holes in
small and specific parts of the answer where the student has not performed quite as well as in the rest.
If the answer covers different aspects of different levels of the mark scheme you should use a best fit
approach for defining the level and then use the variability of the response to help decide the mark within
the level; eg if the response fulfils most but not all of level 3 with a small amount of level 4 material, it
would be placed in level 3 but be awarded a mark near the top of the level because of the level 4
content.
4
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
It is often best to start in the middle of the level’s mark range and then check and adjust. If there is a lot
of indicative content fully identifiable in the work you need to give the highest mark in the level. If only
some is identifiable or it is only partially fulfilled, then give the lower mark.
The exemplar materials used during standardisation will also help. There will be an answer in the
standardising materials that will correspond with each level of the mark scheme. This answer will have
been awarded a mark by the lead examiner. You can compare the student’s answer with the example to
determine if it is of the same standard, better or worse than the example. You can then use this to
allocate a mark for the answer based on the lead examiner’s mark on the example.
You may well need to read back through the answer as you apply the mark scheme to clarify points and
assure yourself that the level and the mark are appropriate.
In addition to the generic descriptors (presented in bold text), paper-specific indicative descriptors
(presented in plain text) are provided as a guide for examiners. These are not intended to be exhaustive
and you must credit other valid points.
An answer that contains nothing of relevance to the question must be awarded no marks.
Examiners are required to assign each of the students’ responses to the most appropriate level
according to its overall quality, then allocate a single mark within the level. When deciding upon a mark
in a level examiners should bear in mind the relative weightings of the Assessment Objectives and be
careful not to over/under credit a particular skill. For example, in question 12, 13 and 14 more weight
should be given to AO4 than to AO1, AO2 and AO3. This will be exemplified and reinforced as part of
examiner training.
Annotating scripts
You should write a summative comment at the end for each Assessment Objective and indicate the
marks for each Assessment Objective being tested at the end of the answer in the margin in sequence.
It is vital that the way you arrive at a mark should be recorded on the script. This will help you with
making accurate judgements and it will help any subsequent markers to identify how you are thinking.
Please do not write negative comments about students’ work; this is unprofessional and it impedes a
positive marking approach.
5
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
6
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
AO1 = 1
Business Sales ($)
AO2 = 1
Business W 35 m
Business X 32 m
Business Y 28 m
Business Z 33 m
7
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
8
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
9
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
10
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
11
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
Examiners are reminded that AO1, AO2 and AO3 are regarded as interdependent. When deciding on a
mark all should be considered together using the best fit approach. In doing so, examiners should bear
in mind the relative weightings of the Assessment Objectives for this question.
3 7–9 A good response that focuses on many of the demands of the question
• includes well-focused analysis with logical chains of reasoning
• includes well-focused application to the given context
• shows sound knowledge and understanding of business terminology and
concepts with few, if any, errors
• is well-structured.
1 1–3 A limited response that has little focus on the demands of the question
A limited response with some understanding that may:
• include some limited analysis but lacks focus and development
• include some limited application to the given context
• include some limited knowledge and understanding of business terminology
and concepts but some errors are likely.
12
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
Indicative content
• A strong brand is an intangible asset to a business. It means that the business will be highly
recognised, for example through a logo.
• In a competitive market, businesses compete on either low price or high quality. A strong brand can
result in a USP which can illustrate high quality. This can help the business to stand out against its
competitors and increase its market share/sales.
• Having a strong brand can often result in high levels of repeat business. This could mean the
business does not have to spend as much on advertising, lowering the costs to the business. In a
competitive market, this additional profit margin could help the business increase its investment into
new products/R&D etc.
• If the business launched a new product, it should be easily recognised and accepted as a result of the
brand, helping it to stand out against the high level of competition with ease.
13
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
Examiners are reminded that AO1, AO2 and AO3 are regarded as interdependent. When deciding on a
mark all should be considered together using the best fit approach. In doing so, examiners should bear
in mind the relative weightings of the Assessment Objectives for this question.
3 7–9 A good response that focuses on many of the demands of the question
• includes well-focused analysis with logical chains of reasoning
• includes well-focused application to the given context
• shows sound knowledge and understanding of business terminology and
concepts with few, if any, errors
• is well-structured.
1 1–3 A limited response that has little focus on the demands of the question
A limited response with some understanding that may:
• include some limited analysis but lacks focus and development
• include some limited application to the given context
• include some limited knowledge and understanding of business terminology
and concepts but some errors are likely.
14
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
Indicative content
• Multi-channel distribution means utilising more than one channel from the business to the consumers,
for example a physical store, an e-commerce store, an app etc.
• The ability to target a number of market segments, for example through the use of e-commerce in
addition to a retail store. This could increase the number of sales/awareness for the business.
• This could help the retail business to remain competitive, as more and more businesses are offering
multi-channel distribution to provide ease for customers.
• If a retail store is out of stock, customers can still access the product via a different channel, which
means the business would not lose the sale.
• The channels can be available at different times, which means the business can make the purchasing
experience more flexible for customers.
• Multi-channel distribution can result in cannibalisation of sales rather than increasing them. This
would increase costs but not necessarily increase revenue.
• Having a number of outlets can result in differences in the marketing mix, for example different prices.
This can cause irritation and confusion amongst customers.
15
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
Examiners are reminded that AO1, AO2 and AO3 are regarded as interdependent. When deciding on a
mark all should be considered together using the best fit approach. In doing so, examiners should bear
in mind the relative weightings of the Assessment Objectives for this question.
3 7–9 A good response that focuses on many of the demands of the question
• includes well-focused analysis with logical chains of reasoning
• includes well-focused application to the given context
• shows sound knowledge and understanding of business terminology and
concepts with few, if any, errors
• is well-structured.
1 1–3 A limited response that has little focus on the demands of the question
A limited response with some understanding that may:
• include some limited analysis but lacks focus and development
• include some limited application to the given context
• include some limited knowledge and understanding of business terminology
and concepts but some errors are likely.
16
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
Indicative content
• The change in concentration ratio suggests that there are a larger number of smaller firms in the
market, or that the existing firms in the market have become more competitive and increased their
market share.
• This could result in lower profits for the largest three airlines, because a higher number of airlines in
the market could mean lower sales of tickets and therefore capacity utilisation may fall. Costs would
remain the same (eg fuel, rental of the gate) but revenue would fall, decreasing profits.
• A lower three firm concentration ratio could mean the three largest airlines needs to alter their
marketing strategies in order to attract more customers (eg increase the amount of advertising). This
is likely to increase costs and as they probably have a fixed capacity on each aeroplane, this would
lower profits.
• The increased competition could force the three largest airlines to lower prices to remain competitive.
The lower prices could result in lower profits due to the difficulty of airlines to lower costs.
17
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
Examiners are reminded that AO1, AO2, AO3 and AO4 are regarded as interdependent. When deciding
on a mark all should be considered together using the best fit approach. In doing so, examiners should
bear in mind the relative weightings of the Assessment Objectives for this question. More weight should
therefore be given to AO4 than AO1, AO2 and AO3.
3 7–9 A good response that focuses on many of the demands of the question
Likely to demonstrate sound, focused analysis and some supported evaluation:
• includes some reasonable, supported evaluation
• includes analysis with some logical chains of reasoning
• includes some good application to the given context
• shows sound knowledge and understanding of business terminology and
concepts with relatively few errors
• is relatively well-structured and generally focused on the question.
A relatively complete and coherent argument leading to an attempt to
conclude. The content is detailed and correct and most of it is integrated.
There is recognition of arguments and counter-arguments, but balance is not
always present and the weight to be given to each argument is not always fully
clear.
18
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
1 1–3 A limited response that has little focus on the demands of the question
A limited response with some understanding:
• includes no evaluation or attempts evaluation but this is unsupported
• includes some limited analysis but it may lack focus and/or become
confused
• includes some limited application to the given context
• includes some limited knowledge and understanding of business terminology
and concepts but errors are likely.
19
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
Indicative content
• Primary marketing research can be tailored to the needs of the business, allowing it to ask specific
questions in relation to its product, increasing the chance of success in the USA.
• It can also provide qualitative data which can help with the design of the product. As this is a new
market, detailed feedback could help the business adapt to suit the needs of American consumers.
• China and America are culturally very different. Specific data from primary marketing research may
assist the business to identify any amends it needs to make to the marketing mix.
• The introduction of technology means primary marketing research can be conducted online more
easily (eg via zoom, online surveys etc) which would be easy to arrange and run from China.
• Primary marketing research is often more costly than secondary, which could be difficult for a
business if it also has high costs associated with entering a new market.
• The USA is a large and diverse market and therefore it is unlikely that the business will be able to
conduct primary marketing research with a big enough sample to be representative enough to support
the business in making decisions.
• Secondary marketing research could allow them to collect information much faster, which could allow
for first mover advantage into the market in the USA.
Overall, it depends on the product that is being sold and the information the business is looking to
achieve from conducting the research. If it requires an adaptation to the market mix, conducting primary
marketing research should allow it to get specific feedback which would help with product decisions.
However, if the business is selling a standardised product, secondary research may be more appropriate
if it is more easily accessible. It may also depend on the budget this business has to conduct the
research.
Credit valid alternative content. No decision is right or wrong but should be assessed on the quality of
argument.
20
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
Examiners are reminded that AO1, AO2, AO3 and AO4 are regarded as interdependent. When deciding
on a mark all should be considered together using the best fit approach. In doing so, examiners should
bear in mind the relative weightings of the Assessment Objectives for this question. More weight should
therefore be given to AO4 than AO1, AO2 and AO3.
3 7–9 A good response that focuses on many of the demands of the question
Likely to demonstrate sound, focused analysis and some supported evaluation:
• includes some reasonable, supported evaluation
• includes analysis with some logical chains of reasoning
• includes some good application to the given context
• shows sound knowledge and understanding of business terminology and
concepts with relatively few errors
• is relatively well-structured and generally focused on the question.
A relatively complete and coherent argument leading to an attempt to
conclude. The content is detailed and correct and most of it is integrated.
There is recognition of arguments and counter-arguments, but balance is not
always present and the weight to be given to each argument is not always fully
clear.
21
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
1 1–3 A limited response that has little focus on the demands of the question
A limited response with some understanding:
• includes no evaluation or attempts evaluation but this is unsupported
• includes some limited analysis but it may lack focus and/or become
confused
• includes some limited application to the given context
• includes some limited knowledge and understanding of business terminology
and concepts but errors are likely.
22
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
Indicative content
• Shares can be sold on the stock market which can help raise a large amount of capital quickly. As the
business is growing rapidly, it may need to invest heavily into purchasing materials, marketing, new
stores, etc to support their growth.
• Due to the rapid growth, it is possible the costs may also be rising rapidly. This could result in
negative cash flow (possibility of over trading). Raising a large amount of share capital can help with
this.
• This may be a better option than a loan because it does not have to be repaid. A rapidly growing
business may struggle to make repayments as there will be other demands on its budget.
• Remaining as a private limited company would allow the business to retain control over who
purchases the shares, ensuring the business can focus on its objectives/the rapid growth.
• As a PLC, there may be more pressure to pay dividends, meaning less money to be able to invest into
the company, for example financing future growth.
• A private limited company requires less paperwork than a public limited company which may be
preferable to the business as it is growing quickly so will have a number of other demands to manage.
• As a PLC, public image will be important in order to maintain a high market capitalisation. If
something was to go wrong, this could damage the market capitalisation.
Overall, it may depend on the current cash position of the company. If it needs finance to be able to
support its growth, operating as a public limited company would allow it to do this without getting in to
debt. It may also depend on the reputation of the business. If it is not well known, the shares may
struggle to sell or they may achieve a low price for them on the stock market.
Credit valid alternative content. No decision is right or wrong but should be assessed on the quality of
argument.
23
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
Examiners are reminded that AO1, AO2, AO3 and AO4 are regarded as interdependent. When deciding
on a mark all should be considered together using the best fit approach. In doing so, examiners should
bear in mind the relative weightings of the Assessment Objectives for this question. More weight should
therefore be given to AO4 than AO1, AO2 and AO3.
3 7–9 A good response that focuses on many of the demands of the question
Likely to demonstrate sound, focused analysis and some supported evaluation:
• includes some reasonable, supported evaluation
• includes analysis with some logical chains of reasoning
• includes some good application to the given context
• shows sound knowledge and understanding of business terminology and
concepts with relatively few errors
• is relatively well-structured and generally focused on the question.
A relatively complete and coherent argument leading to an attempt to
conclude. The content is detailed and correct and most of it is integrated.
There is recognition of arguments and counter-arguments, but balance is not
always present and the weight to be given to each argument is not always fully
clear.
24
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
1 1–3 A limited response that has little focus on the demands of the question
A limited response with some understanding:
• includes no evaluation or attempts evaluation but this is unsupported
• includes some limited analysis but it may lack focus and/or become
confused
• includes some limited application to the given context
• includes some limited knowledge and understanding of business terminology
and concepts but errors are likely.
25
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
Indicative content
• Dividends to shareholders could increase the share price, which means if it wanted to sell more
shares, it could raise a larger amount of money.
• As Tapas Entrega (TE) are facing increasing competition, it may need to sell more shares. This
money could be invested into improving its service or updating its online platform which could create a
stronger USP. This could help to counter the effects of the higher level of competition.
• Shareholders expect dividends. If they see that the business is profitable but they receive no
dividends, they could sell their shares, causing the value of the business to fall. This could leave it
even more vulnerable to new entrants into the market.
• The threat of the new market entrants may be low to TE as it is a chain, therefore is likely to have high
levels of brand loyalty. The profits could be better distributed to shareholders as an intense marketing
campaign may not be needed.
• With increasing levels of competition, the business may see a fall in sales. If it chooses to pay
dividends to shareholders, it could leave it with no cash reserves and therefore it could run into cash
flow difficulties.
• Rather than paying dividends to shareholders, it may need to invest more money into promotional
campaigns to encourage loyalty and minimise the risk of new competitors in the market.
• If dividends are paid, shareholders may continue to expect dividends, which could cause future
problems for the takeaway as it may struggle to maintain this if sales and profits fall due to the higher
level of competition.
Overall, it depends on the perspective of the shareholders and who they are. If they are prepared to wait
for a return on their investment, they may be happy for the business to invest more into the business to
improve competitiveness. It may also depend on its ability to borrow money, as it may prefer to pay
dividends to keep their shareholders happy and borrow money in order to create new promotional
campaigns etc. It may also depend on whether or not the business are intending on selling more shares
in the future.
Credit valid alternative content. No decision is right or wrong but should be assessed on the quality of
argument.
26
MARK SCHEME – INTERNATIONAL AS BUSINESS – BU01 – JANUARY 2023
27