GCSE Business Studies - ocr.org.uk

1 GCSE. Business Studies Unit A293: Production, Finance and the External Business Environment General Certificate of Secondary Education Mark Scheme for June 2016. Oxford Cambridge and RSA Examinations OCR (Oxford Cambridge and RSA) is a leading UK awarding body, providing a wide range of qualifications to meet the needs of candidates of all ages and abilities. OCR qualifications include AS/A Levels, Diplomas, GCSEs, Cambridge Nationals, Cambridge Technicals, Functional Skills, Key Skills, Entry Level qualifications, NVQs and vocational qualifications in areas such as IT, Business , languages, teaching/training, administration and secretarial skills.

2 It is also responsible for developing new specifications to meet national requirements and the needs of students and teachers. OCR is a not-for-profit organisation; any surplus made is invested back into the establishment to help towards the development of qualifications and support, which keep pace with the changing needs of today's society. This mark scheme is published as an aid to teachers and students, to indicate the requirements of the examination. It shows the basis on which marks were awarded by examiners. It does not indicate the details of the discussions which took place at an examiners' meeting before marking commenced.

3 All examiners are instructed that alternative correct answers and unexpected approaches in candidates' scripts must be given marks that fairly reflect the relevant knowledge and skills demonstrated. Mark schemes should be read in conjunction with the published question papers and the report on the examination. OCR will not enter into any discussion or correspondence in connection with this mark scheme. OCR 2016. A293 Mark Scheme June 2016. Annotations Annotation Meaning Blank Page this annotation must be used on all blank pages within an answer booklet (structured or unstructured) and on each page of an additional object where there is no candidate response.

4 Benefit of doubt Cross Expansion of a point Error carried forward Level 1. Level 2. Level 3. Level 4. Not answered question Repeat Tick Unclear Own figure rule 3. A293 Mark Scheme June 2016. Question Answer Marks Guidance 1 (a) Swedish and Norwegian firms have set up in the UK. 1 One mark for a correct answer. There is competition from foreign-based manufacturers particularly the far east. Quotes the report: Competition in our markets has increased. (b) Statements Advantage of Disadvantage 4. about specialisation of specialisation ( ) specialisation at Aaron ( ).

5 Furniture Ltd Workers may . become bored doing the same work all the time. The workers . concentrate on one job and can work more quickly. Workers need . less training than if they did several different jobs. Specialist . workers produce better quality furniture. 4. A293 Mark Scheme June 2016. Question Answer Mark Guidance on Content Levels of Response (c)* i) AF Ltd should close the factory. It makes a 10* K+A Level 1 (1 2 marks). loss (L2) of 12 000 (L2) whilst making a An import is when a product made Knowledge and application profit from (L2) of 50000 (L2).

6 Abroad comes to the UK, as with the Knowledge of imports applied. furniture made in Sweden. Relatively straight forward ideas are However, if the Bowton factory is closed AF expressed relatively clearly, legibly Ltd may lose its USP which would result in a An and appropriately. There will be some fall in sales (L3 x 2). Also if the UK votes to errors of spelling, punctuation and leave the EU, there may be tariffs on The candidate uses the data in Fig 1. grammar which will be noticeable and imported wood from Sweden which would intrusive.

7 Make them more expensive (L3 x 2). Lastly AF Ltd is making a loss (L2) in the UK. incomes are rising in the UK which may make of 12,000 (L2). Level 2 (3 5 marks). costs increase further (L3 x 2) Analysis It makes a profit (L2) on the furniture it The candidate makes use of the data imports of 50,000 (L2). in Fig 1. Straight forward ideas have been Ev expressed with some clarity and fluency. Arguments are generally It may be able to reduce costs in the relevant, though may stray from the UK factory by introducing batch point of the question.

8 There will be production or improving quality control some errors of spelling, punctuation and so make it profitable. and grammar but these are unlikely to be intrusive or obscure meaning. Also it may be able to raise the price it can charge to cover the costs in Level 3 (6 10). Bowton if it sells abroad as demand Evaluation and prices are rising in the Eurozone and Canada. Weighs up other issues 2 x L3. marks for each issue explained, 3. There may be problems with importing issues needed to stated AND. eg certainty of delivery, delivery times.

9 Explained for L3 get to 10. Importing may make AF Ltd appear not NB If the profit/loss discussion about to be eco-friendly (L1) because of long Bowton production and imports is not distance transport. present, the points here should be considered as L2 only. 5. A293 Mark Scheme June 2016. Question Answer Mark Guidance on Content Levels of Response Marketing benefits claim to be a UK. producer, which may increase sales, in this competitive market. Stronger pound so imports even cheaper, so more profitable, so close down. Rising UK incomes means rising labour costs.

10 If Brexit happens, there may be a tariff on the imported wood making the wood more expensive. (Answer has to make clear extra cost does come from the tariff). Depends on capacity of firm(s) in Sweden. To avoid rising debt and the Business going bankrupt. It can sell the building to raise funds. Issue of redundancy costs Question Answer Marks Guidance ii) 1 One mark for the correct answer. Statement Tick ( ) one box Some workers will lose their job . 6. A293 Mark Scheme June 2016. Question Answer Marks Guidance d) i) 6 One mark for accurately drawn curves, one mark for labelling each curve correctly.