Report CopyRight/DMCA Form For : Markscheme Weebly
N13 3 BUSMT SP2 ENG TZ0 XX M 22 pages MARKSCHEME November 2013 BUSINESS AND MANAGEMENT Standard Level Paper 2
2 N13 3 BUSMT SP2 ENG TZ0 XX M, This markscheme is confidential and for the exclusive use of. examiners in this examination session, It is the property of the International Baccalaureate and must not be. reproduced or distributed to any other person without the. authorization of the IB Assessment Centre,3 N13 3 BUSMT SP2 ENG TZ0 XX M. The markbands on pages 3 4 should be used where indicated in the markscheme. Section A Section B,Q1 Q2 Q3 Q4 Q5,Level descriptors. No knowledge or understanding of relevant issues,concepts and theories. No use of appropriate terminology, Little knowledge and understanding of relevant issues. concepts and theories,Little use of appropriate terminology. No reference is made to the information in the stimulus. material The response is mainly theoretical, A description or partial analysis examination with. relevant knowledge and or understanding of relevant. issues concepts and theories,Some use of appropriate terminology. Some reference is made to the information in the,stimulus material not just to the name of the. organization, A balanced analysis examination with accurate specific. well detailed knowledge and understanding of relevant. issues concepts and theories,An analysis examination that uses appropriate. terminology throughout the response, Explicit references are made to the information in the. stimulus material,4 N13 3 BUSMT SP2 ENG TZ0 XX M,Level descriptors. No knowledge or understanding of relevant issues concepts. and theories,No use of appropriate terminology, Little knowledge and understanding of relevant issues. concepts and theories,Little use of appropriate terminology. No evidence of judgments and or conclusions, No reference is made to the information in the stimulus. A description with some knowledge and or understanding of. relevant issues and concepts,Some use of appropriate terminology. 3 4 No evidence of judgments and or conclusions, Some reference is made to the information in the stimulus. material not just to the name of the organization,The response is mainly theoretical. A response with relevant knowledge and understanding of. relevant issues concepts and theories, A response that uses relevant and appropriate terminology. Evidence of judgments and or conclusions that are little more. than unsubstantiated statements that has balanced analysis and. demonstrates understanding, Explicit references to the information in the stimulus material. are made at places in the response, A response with accurate specific well detailed knowledge and. understanding of relevant issues concepts and theories. A response that uses appropriate terminology competently. throughout the response, A response that includes judgments and or conclusions that is. well supported and underpinned by a balanced analysis. Explicit references to the information in the stimulus material. are made throughout the response,5 N13 3 BUSMT SP2 ENG TZ0 XX M. 1 a i Define the term private sector 2 marks, The private sector also called commercial sector refers to those areas of the. economy mostly owned and run by private individuals partnerships and. corporations typically for a profit Organizations in the private sector are not. controlled by the state The private sector exists operates in contrast to the. public sector which are organizations majority owned and run by local. regional provincial and national governments, Candidates are not expected to word their definition exactly as above. Award 1 mark for a basic definition that conveys partial knowledge. and understanding, Award 2 marks for a full clear definition that conveys knowledge and. understanding similar to the answer above, For only a relevant example or application to the stimulus award 1 mark. ii Identify two advantages for BF of operating as a private limited. company 2 marks, Advantages for BF of operating as a private limited company could include. limited liability of the owners, it allows continuity in the event of the death of one of the principals. principal shareholders, ownership of the company can be more easily transferred. shares could provide an additional source of compensation. with a private limited company there is a convenient legal structure. selling shares to raise additional equity capital, banks trade creditors and other external sources of finance are generally. more inclined to lend money provide finance to private limited companies. Award 1 mark for each correct and relevant advantage for BF of operating. as a private limited company identified up to a maximum of 2 marks. 6 N13 3 BUSMT SP2 ENG TZ0 XX M, b Calculate for BF per month at the current location show all your working. i the break even level of output 2 marks,Fixed costs 400 3600 3600 1400 9000. Contribution per frame sales price variable cost per frame 24 14 1 9. fixed costs 9000,Break even level of output 1000,contribution per frame 9. Award 1 mark for the correct workings and 1 mark for the correct. answer up to a maximum of 2 marks,ii the margin of safety 2 marks. Margin of safety current level of output break even level of output. 1300 1000 300 frames,Apply Own Figure Rule OFR, Award 1 mark for the correct workings and 1 mark for the correct. answer up to a maximum of 2 marks, iii the profit or loss at the current level of 1300 frames sold 2 marks. Profit SR TC 1300 24 9000 1300 15,31200 9000 19500. 31200 28500,Apply Own Figure Rule OFR, Award 1 mark for the correct workings and 1 mark for the correct answer. up to a maximum of 2 marks,7 N13 3 BUSMT SP2 ENG TZ0 XX M. c Construct a fully labelled break even chart for BF at the current location 5 marks. Cost revenue in,Break even,point Total revenue,24 000 Total costs. Margin of safety,9000 Fixed costs,0 1000 1300,Number of frames. Award marks as follows, 1 mark for each appropriately labelled axis award up to a maximum of. 1 mark for an appropriately drawn and labelled total revenue curve. 1 mark for an appropriately drawn and labelled total costs curve. 1 mark for the identification of the break even level of output. Award 0 marks if a candidate produces a table and award no more than 3 marks. if the chart is not neat not drawn with a straight edge or is not to scale If a. candidate produces a chart with no figures which prevents determination if it is. to scale but in other respects it is fully accurate award a maximum of 3 marks. Ideally the candidate will draw an arrow pointing to the break even point and. label the arrow However accept as an appropriately labelled break even point. a vertical line from the x axis to the break even point provided that the line is. labelled break even point,8 N13 3 BUSMT SP2 ENG TZ0 XX M. d Examine one factor that might improve employee motivation and one factor. that might worsen employee motivation if BF moves to a building in the. industrial park in Belluno 5 marks, Factors that might improve employee motivation include. possible extra financial rewards, growth and possible increased professionalization and visibility of business. evidence that Antonio is thinking about the long term health of the business. accept any other relevant positive factor, Factors that might worsen employee motivation include. move from small town where people live,increased commute time costs. slight decrease in the face to face feel of the business. expectation that they produce more frames per month. accept any other relevant negative factor, Overall the move to Belluno represents a form of modernization of BF In many. ways this transition will be de motivating for the reasons identified above. On the other hand Antonio s moves show that he is concerned about the. long term viability of his family s business and is taking the necessary steps for. BF to be successful in the future which could give comfort and satisfaction to. the employees,Accept any other relevant examination. N B Balance means that the candidate has considered both factors that improve. and worsen employee motivation, Marks should be allocated according to the markbands on page 3. 9 N13 3 BUSMT SP2 ENG TZ0 XX M, 2 a Describe two appropriate sources of finance for NTB to acquire the 5 cars. Option 2 4 marks,Appropriate sources of finance would include. hire purchase,personal savings, becoming a partnership and taking equity funds from the new partner. profits from the business, Accept any other appropriate sources of finance identified with an appropriate. description,Mark as 2 2, Award 1 mark for each appropriate source of finance identified and 1 mark for. an appropriate description up to a maximum of 2 marks. b i Calculate for Option 1 the payback period and the average rate of. return ARR show all your working 4 marks,Payback period. Payback period is 3 years,Average rate of return, Average profit from investment 40000 investment 120000. 40 000 6 240000,240000 120000 120000,Average rate of return on motorcycles 16 67. Mark as 2 2 2 marks for payback period and 2 marks for ARR. Award 1 mark for the correct workings and 1 mark for the correct. answer up to a maximum of 2 marks,10 N13 3 BUSMT SP2 ENG TZ0 XX M. ii Calculate for Option 2 the payback period and the average rate of. return ARR show all your working 4 marks,Payback period. 110000 27 000 yr 1 35000 yr 2 35000 yr 3 13000,35000 yr 4. 0 3714 12 month 4 4568 months 5 months, Payback period is 3 years and 5 months accept 3 years and 4 5 months or. 3 years and 4 6 months,Average rate of return,Average profit from investment. 27 000 5 35000 202000,202000 110000 92000,0 1393 100 13 94. Average rate of return on cars 13 94, Mark as 2 2 2 marks for payback period and 2 marks for ARR. Award 1 mark for the correct workings and 1 mark for the correct answer. up to a maximum of 2 marks,Award a maximum of 4 marks. 11 N13 3 BUSMT SP2 ENG TZ0 XX M,c Comment on your results to part b 3 marks. Both investment options purchasing 10 motorcycles or 5 cars are attractive. investment options with payback periods of 3 years motorcycles and 3 years and. 5 or 4 46 months cars and ARRs of 16 67 motorcycles and 13 94 cars. The difference in ARRs is material If no other factors were involved it would. clearly be better to invest in motorcycles Over time a 2 73 difference in. investment returns the difference between 16 67 and 13 94 is substantial. There is also a difference in the payback period indicating that the motorcycles. are a better investment However these forecasted returns are just that forecasts. and actual returns may vary, Award 1 mark if the candidate recognizes that the motorcycles represent the. better investment Award 2 marks if the candidate recognizes that the. motorcycles represent the better investment and explains in numerate terms why. Award 3 marks if the candidate recognizes that the motorcycles represent the. better investment explains in numerate terms why and provides some other. relevant comment other factors could influence the investment decision these. investment appraisals are based upon forecasts and that actual returns could. differ etc Award up to a maximum of 3 marks, d Analyse whether NTB should purchase the 10 motorcycles Option 1 or the. 5 cars Option 2 5 marks, NTB s decision whether to purchase motorcycles or cars probably depends on 1. the organization s commitment to social responsibility 2 Chinh s concerns over. increasing the scale of his business and 3 Chinh s long term vision Based upon. the information provided the motorcycles have a better average rate of return. However from the point of view of social responsibility NTB should purchase. the cars Though they consume petrol they are much quieter than the motorcycles. In addition Chinh will have far less paperwork than with the motorcycles which. rent on a daily basis, From an investment point of view the reason that NTB has a lower rate of return. from the cars is the lower profits in first year when the organization is trying. to establish its identity in the car rental market Once it is established Chinh. predicts no problem offering car rental and the rate of return will improve to what. he would have on motorcycles Thus if Chinh can accept the slightly lower rate. in the first year he will soon be making as much with cars as with motorcycles. the scale of his business will not be as large as with motorcycles and he can. appease the pressure group in Nha Trang,Accept any other relevant analysis. N B If the candidate fails to use figures in their argument award a maximum. of 3 marks, Marks should be allocated according to the markbands on page 3. 12 N13 3 BUSMT SP2 ENG TZ0 XX M, 3 a With reference to the product life cycle diagram below identify the. missing stages,Introduction,i A 1 mark,Accept growth or development. Award 1 mark for the correct answer,ii B 1 mark,Accept saturation or maturity. Award 1 mark for the correct answer,13 N13 3 BUSMT SP2 ENG TZ0 XX M. b With reference to Anigam distinguish between above the line and below the. line promotion 4 marks, Above the line promotion refers to forms of advertising in a newspaper on the. internet on television and on the radio where the business in this case Anigam. is not entirely responsible for the process as another organization controls. the process For example Anigam could advertise Anislim through short. commercials on television and on YouTube showing animals that are losing weight. at the same time as their owners, Below the line promotion refers to methods of promotion where the business. in this case Anigam is in direct contact with customers for example through. loyalty cards point of sale displays direct marketing even public relations. As Anitox is sold B2B to veterinary clinics Anigam is very likely to use below. the line promotion with the vets it targets, N B Candidates are not expected to word their answer exactly as above. 1 to 2 marks, Award 1 mark for an answer that shows some basic knowledge of the. definitions of above the line and below the line promotion Award 2 marks. for a theoretical answer that shows clear knowledge of the difference between. above the line and below the line promotion,3 to 4 marks. Award 3 marks for a clear answer that is not just theoretical but applies the. concepts to Anigam Award 4 marks for a thorough answer that applies the. concepts to Anigam and explicitly shows the difference between above the line. and below the line promotion with reference to different products of Anigam. c Explain one reason why a promotional mix chosen by Anigam might fail 2 marks. A promotional mix is a combination of different methods of promotion with. specific targets Anigam s promotional mix may fail if the chosen methods do not. properly target the intended segments for example as Anitox is sold B2B to. veterinary clinics it would be inappropriate to target individual animal owners. through television adverts as they are not the ones who decide which drugs are. used in their veterinary clinic Likewise a system of loyalty cards or regular. purchase coupons would be inappropriate for Aniplus as it would suggest that the. drug does not work well if customers are expected to buy it regularly. Do not credit elements of an answer about the marketing mix the 4Ps or 7Ps. as the question is about a promotional mix not a marketing mix. Award 1 mark for an answer that shows some basic knowledge of the definition. and or purpose of a promotional mix, Award 2 marks for an answer that explains one reason why a promotional mix. chosen by Anigam might fail,14 N13 3 BUSMT SP2 ENG TZ0 XX M. d Analyse Anigam s portfolio of animal drugs by applying the Boston consulting. group BCG matrix 5 marks, The BCG matrix distinguishes between four types of products according to. their market share and to the growth rate of the market in which they are sold. Relative Market Share,Stars Question marks,Market Growth Rate. Cash cows Dogs, The Anigam portfolio of products lends itself well to a BCG matrix. Anitox is a cash cow it has a high 25 share of the global market and. the market is growing very slowly, Anisan is a star it already has a high 15 share of a rapidly growing. Aniplus is a question mark the market is growing rapidly however it. seemingly has a low market share as it is not performing well. Anislim is not a perfect fit for the BCG matrix it is too early to tell whether it. will become a star a question mark or a dog,Accept any other relevant analysis. If the candidate presents the matrix theoretically award up to 2 marks. Award 1 mark for a basic presentation of the model with a minor error or. omission or poor labelling award 2 marks for a correct and accurate. presentation of the model, N B For 5 marks the candidate must demonstrate thorough knowledge of the. BCG matrix and accurately address all four products. Marks should be allocated according to the markbands on page 3. 15 N13 3 BUSMT SP2 ENG TZ0 XX M, e With reference to Anigam and one other company of your choice discuss. reasons for the increase in the number of multinational companies 7 marks. Positive reasons for the increase in the number of multinational companies. include the following, strategies of market development to use a concept from the Ansoff matrix. when national markets are saturated, potential growth in some foreign markets that are still untapped available. cost saving being closer to global customers and or to cheaper labour and or. cheaper raw materials,differentiation from competitors. exploitation of a brand name already popular with market research showing. financial motivation taxes may be lower in some foreign markets. accept any other relevant positive reason, Negative reasons for the increase in the number of multinational companies. include the following,saturation within host country market. consolidation within a company s industry is forcing companies to find means. government legislation or regulation within the home country are limiting. domestic sales, being forced to offshore as a means to reduce costs. accept any other relevant negative reason, Accept any other relevant discussion of the reasons identified. N B To achieve more than 5 marks candidates must include explicit examples. of multinational companies such as Starbucks Subway etc. Marks should be allocated according to the markbands on page 4.