Cambridge International AS and A Level Business: Paper 3 - Case Study
Cambridge International AS and A Level Business: Paper 3 - Case Study
Business
9609
Paper 3 – Case study
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Contents
Contents .............................................................................................................................. 3
Introduction .......................................................................................................................... 4
Question 1 ................................................................................................................... 7
Question 2 ................................................................................................................. 12
Question 3 ................................................................................................................. 18
Question 4 ................................................................................................................. 23
Question 5 ................................................................................................................. 30
Question 6 ................................................................................................................. 35
Introduction
Introduction
The main aim of this booklet is to exemplify standards for those teaching Cambridge International AS and
A Level Business (9609), and to show how different levels of candidates’ performance (high, middle and low)
relate to the subject’s curriculum and assessment objectives.
In this booklet candidate responses have been chosen to exemplify a range of answers. Each response is
accompanied by a brief commentary explaining the strengths and weaknesses of the answers.
For each question, each response is annotated with a clear explanation of where and why marks were
awarded or omitted. This, in turn, is followed by examiner comments on how the answer could have been
improved. In this way it is possible for you to understand what candidates have done to gain their marks and
what they will have to do to improve their answers. At the end there is a list of common mistakes candidates
made in their answers for each question.
This document provides illustrative examples of candidate work. These help teachers to assess the standard
required to achieve marks, beyond the guidance of the mark scheme. Some question types where the
answer is clear from the mark scheme, such as short answers and multiple choice, have therefore been
omitted.
The questions, mark schemes and pre-release material used here are available to download as a zip file
from Teacher Support as the Example Candidate Responses Files. These files are:
Past papers, Examiner Reports and other teacher support materials are available on Teacher Support at
[Link]
Assessment at a glance
take Papers 1 and 2 only (for the Cambridge International AS Level qualification)
or
follow a staged assessment route by taking Papers 1 and 2 (for Cambridge International AS Level
qualification) in one series, then Paper 3 (for the Cambridge International A Level qualification) in a later
series
or
take Papers 1, 2 and 3 in the same examination series, leading to the full Cambridge International
A Level.
Component Weighting
AS Level A Level
40 marks
Two data response questions based on AS Level syllabus content 60% 30%
60 marks
Five questions and one essay (from a choice of two) based on a case
study
– 50%
Based on the additional A Level syllabus content and also assumes
knowledge and understanding of the AS Level syllabus content
100 marks
Teachers are reminded that the latest syllabus is available on our public website at [Link] and
Teacher Support at [Link]
Question 1
4 Knowledge of zero
hour contracts is
demonstrated here,
along with an
explanation of how
these could reduce
costs. This point could
have been linked back
to the objective stated
earlier.
6 This answer
demonstrates a sound
understanding of
theory and makes
effective use of the
case study by linking
together the different
strands of the material
provided.
4 4 Knowledge of the
possible negative
5 impact on motivation,
although this point
could have been
developed further and
context given.
1 A comprehensive
definition of the role of
1 human resource
management.
Question 2
2 A calculation of the
additional unit fixed
cost.
2
3 The difference in unit
cost is identified. All
working is shown by
3 the candidate.
4 An accurate definition.
4
5 Recognition that the
unit cost of outsourcing
5 is less than building an
6 extension. The
candidate uses the
calculation from part
(a) to answer the
question.
7 6 Stating the
consequence for the
profit margin
demonstrates analysis.
11 Further application to
10 the case study.
12 The candidate
develops their
evaluation by making a
recommendation that is
supported by their
11
earlier analysis and by
identifying the most
significant factor, using
the case study
information to support
this.
6 It is useful to make a
recommendation at the
6
start of an answer, as
this can help the
candidate focus on the
question. It is then
important to develop a
7 range of points that
support the
recommendation.
7 Knowledge of a
relevant factor
identified.
8
8 Relevant application.
10 The initial
recommendation has
been supported by
subsequent
commentary.
2(b)
Not giving a balanced argument.
Only considering their answer from (a).
Not making a recommendation regarding outsourcing.
Question 3
1 This introduction
paraphrases
information from the
case study and does
1 not fulfil any
assessment objectives.
2
2 Knowledge of relevant
business terms here.
3 Understanding of the
3 possible consequences
of infringing the law,
applied to the case
study by linking this to
4 the level of competition
and existing
shareholder
dissatisfaction.
5 Good application,
which links to other
data in the case study.
6 An effective
counterargument to the
previous paragraph,
both analytical and
well-founded in the
context of the case
study.
2 The candidate
2 demonstrates
understanding of the
use of foreign bank
accounts to make the
facilitating payments.
3 This shows
3 understanding of the
nature of the facilitating
payments.
5 5 A recommendation is
made here.
6 Clear supporting
6 evidence for the
recommendation,
highlighting the risk
that CJE would be
taking.
Application to the case study could also have been developed further by referring to the competitive nature
of the market. For example, the candidate could have mentioned that customers could go elsewhere, or
considered whether or not CJE would need to make changes to their engine to service the helicopter market,
and whether or not they would have the capacity to meet increased demand. The evaluation in the answer
could also have been fuller.
1 This shows
understanding of the
role of the facilitating
payments in securing
the contract. The
commentary here
develops the answer
beyond merely
repeating the case
study information.
1
2 Some brief analysis of
the possible
consequences if the
payments become
2 public.
Some candidates did not understand that facilitating payments were in fact bribes.
Some candidates only focused on the negative results of making bribes. Although candidates were
correct to consider the negative aspects of paying bribes / condemn the use of bribery, they also needed
to consider the implications for the company of not making these payments and losing a lucrative
contract / making the payments and winning a lucrative contract
Some candidates misinterpreted the material in the case study, for example, analysing the implications of
CJE moving its operations to country Y.
Question 4
5 4 A correct calculation
with a correct unit of
6 measurement.
Mark for (a)(i) = 4/4
7 5 A correct formula.
8
6 Adding additional sales
revenue is incorrect
here.
7 As the candidate uses
the figure calculated
above, the own figure
rule applies here.
9
8 A partially correct
calculation of capital
employed. Intangible
non-current assets are
not included. Proposed
10 change to depreciation
is not included.
Mark for (a)(ii) = 1/4
11 11 A recognition of how
increased profit might
benefit CJE.
12 This shows
understanding of the
gearing ratio, but the
calculation of current
gearing (before the
proposed changes) is
incorrect. The
candidate shows
limited judgement in
identifying that the
change is not
12 significant.
13 Knowledge of window
13 dressing here.
14 An analysis of the
benefit of not giving
discount.
16 The candidate
demonstrates good
knowledge and
application in this
answer, but the
analysis and evaluation
are not developed and
15 remain in Level 1.
16
Mark for (b) = 8/12
1 A partial calculation of
1 new operating profit
following the proposed
2 changes. The impact of
the change to
depreciation is not
included.
2 A correct calculation of
new revenue following
the proposed changes.
3 Mark for (a)(i) = 2/4
5 This answer is in
context, as it makes a
5
link to possible
pressure from
shareholders to
increase profit and
recognises the likely
impact of offering
discount.
6
6 This deals with the
impact of extra
demand on market
share. Some low-level
analysis of lower prices
impacting brand
loyalty.
Analysis and evaluation were evident in this response, but only at Level 1 owing to limited chains of
argument and support for judgements.
The candidate should have included developed comment on the proposed change to depreciation; without
this their answer was incomplete.
1 1 Correct formula.
2 Correct formula.
2
Mark for (a)(ii) = 1/4
3 Descriptive
3 understanding of
financial reports but
lacking focus on the
question.
4 Knowledge of
4 depreciation.
5 This misunderstands
the impact of changing
depreciation. Reducing
5 depreciation would not
attract buyers when
assets are sold. The
change in depreciation
does not provide any
finance for CJE’s other
projects.
6
6 Knowledge of the
possible impact of
offering the discount.
The response for (b) was hampered by the missing calculations in (a). However, even without these
calculations, the candidate could have developed their analysis of how the proposed adjustments might
benefit CJE, as the Finance Director clearly believed that there would be an increase in sales and operating
profit margin. Recognition that the proposed adjustments included window dressing would have enabled the
candidate to discuss the potential outcome with regard to shareholder attitudes. The candidate’s limited
understanding of the relevant issues made it harder for them to develop their evaluation.
4(a)
Candidates amended the revenue but made no corresponding amendment to operating profit.
Candidates based the operating profit margin calculation on data before the proposed adjustments.
Candidates were uncertain about how to calculate capital employed from the given data.
4(b)
Candidates included evaluation unsupported by argument or evidence.
Some failed to identify the issue of window dressing.
Some misunderstood the impact of depreciation; candidates commonly stated that a reduction in
depreciation would increase the finance available for investment. Some candidates argued that the
adjustment to depreciation would enhance the value of assets when sold.
Question 5
1 Knowledge of
functional departments.
1 2 Awareness of the
usefulness of
information about
growth in labour costs
to HR.
5 The candidate
demonstrates
understanding of the
limitations of the data;
their judgement is
5 supported through
developed chains of
argument.
6
6 Application to the case
study.
7
7 Links could have been
made to the strategic
options for growth and
the impact on financing
8 of a change in interest
rates.
8 Analysis of the
usefulness of forecasts
to the finance
department, along with
evaluative comment.
9 Further evaluation.
11 11 Further evaluation.
1 Knowledge of
1 functional departments.
2 Understanding of the
2 GDP per capita data.
Analysis of its
usefulness to the
marketing department.
3 Analysis of the
usefulness of the
3 labour cost data to the
finance department
and a link to the choice
between Strategies 1
and 2.
4 4 Analysis of interest
rates.
5 Developed application,
showing partial
understanding of the
5 change in permitted
pollution level. This is
most likely to require
CJE to invest in R&D in
order to meet the
permitted level.
6 6 An evaluative
statement.
7 7 Further evaluation of
the forecasts’
usefulness.
1 Planning based on
global economic
forecasts is not
contingency planning.
1 2 Knowledge of
functional departments.
4 An indication of how
HR might use the data.
4 5 The understanding is
limited here, as the
data is about the
market share of Asian
aircraft manufacturers.
The relevance of the forecast growth in the market share of Asian aircraft manufacturers was
misunderstood; some candidates considered the aircraft manufacturers to be competition for CJE rather
than their customers.
External costs were incorrectly defined and changes to maximum permitted pollution levels
misunderstood. Some candidates were not familiar with index numbers.
Some candidates failed to refer to any functional departments in their answers, or referred to only one
functional department.
Question 6
1 A useful introduction
which recognises that
1 this question is about
strategic choice. The
candidate identifies
relevant strategic
choice techniques.
2 2 Descriptive
understanding of
Ansoff’s matrix.
3 Application of Ansoff’s
matrix to strategy 1.
3 The analysis is not
developed in this
paragraph.
4 Understanding of
strategy 2. Ansoff’s
matrix applied.
4
5 Repetition of
information from the
5 case study.
9 Application.
10 Analysis and
10 evaluation.
11 Evaluation.
11
12 Further evaluative
comment.
1 Understanding of
theory. Ansoff’s matrix
1 is a relevant tool of
strategic choice.
3 3 A benefit of strategy 1
identified.
4 Reference could be
4
made to Table 3 here.
6 Knowledge and
6 application.
7 7 Analysis.
8 A link to information
8 from the case study
provides limited
support for this
judgement.
9 General points of
evaluation.
1 Knowledge
demonstrated.
2 Application, though no
1 developed analysis.
3 Understanding of EMV
is not demonstrated.
Does it matter that
EMV is less than
2
costs? EMV takes into
account capital costs.
3
4 This just repeats case
study information.
4 5 Application through
making a comparison
between the two
5 options.
6 Repetition of case
study information,
rather than
development of that
information.
6 7 An evaluative
statement with limited
7 support from the
preceding factors
given.
Going through the data in Table 3 without offering any developed analysis of it or applying it to CJE.
Failing to identify the most important factors influencing the decision.
Only making evaluative comments in their conclusion.