0% found this document useful (0 votes)
114 views42 pages

Cambridge International AS and A Level Business: Paper 3 - Case Study

Uploaded by

Maider Serrano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
114 views42 pages

Cambridge International AS and A Level Business: Paper 3 - Case Study

Uploaded by

Maider Serrano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Cambridge International AS and A Level

Business
9609
Paper 3 – Case study
In order to help us develop the highest quality Curriculum Support resources, we are undertaking a
continuous programme of review; not only to measure the success of our resources but also to
highlight areas for improvement and to identify new development needs.

We invite you to complete our survey by visiting the website below. Your comments on the quality and
relevance of Cambridge Curriculum Support resources are very important to us.

[Link]

Do you want to become a Cambridge consultant and help us develop support materials?

Please follow the link below to register your interest.

[Link]

Cambridge International Examinations retains the copyright on all its publications. Registered Centres are
permitted to copy material from this booklet for their own internal use. However, we cannot give permission
to Centres to photocopy any material that is acknowledged to a third party even for internal use within a
Centre.
Contents

Contents .............................................................................................................................. 3

Introduction .......................................................................................................................... 4

Assessment at a glance ....................................................................................................... 6

Paper 3 – Case study .......................................................................................................... 7

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:

Question Paper 12, June 2016


Question paper 9609_s16_qp_12.pdf
Mark scheme 9609_s16_ms_12.pdf
Question Paper 22, June 2016
Question paper 9609_s16_qp_22.pdf
Mark scheme 9609_s16_ms_22.pdf
Question Paper 32, June 2016
Question paper 9609_s16_qp_32.pdf
Mark scheme 9609_s16_ms_32.pdf

Past papers, Examiner Reports and other teacher support materials are available on Teacher Support at
[Link]

4 Cambridge International AS and A Level Business 9609


Introduction

How to use this booklet

Answers by real candidates in


Examiner comments
exam conditions. These show you are alongside the
the types of answers for each
answers, linked to
level.
specific part of the
Discuss and analyse the answers
answer. These explain
with your learners in the
where and why marks
classroom to improve their skills. were awarded. This
helps you to interpret the
standard of Cambridge
exams and helps your
learners to refine their
exam technique.

This explains how the candidate could have


improved their answer and helps you to interpret
the standard of Cambridge exams and helps your
learners to refine exam technique.

This lists the common mistakes candidates made


in answering each question. This will help your
learners to avoid these mistakes at the exam and
give them the best chance of achieving a high
mark.

Cambridge International AS and A Level Business 9609 5


Assessment at a glance

Assessment at a glance

For Cambridge International AS and A Level Business, candidates:

 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.

All components are externally assessed.

Component Weighting

AS Level A Level

Paper 1 Short answer and essay 1 hour 15 minutes

Section A: Four short answer questions (20 marks)


20% 10%
Section B: One essay from a choice of three questions (20 marks)
20% 10%
Based on the AS Level syllabus content

40 marks

Paper 2 Data response 1 hour 30 minutes

Two data response questions based on AS Level syllabus content 60% 30%

60 marks

Paper 3 Case study 3 hours

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]

6 Cambridge International AS and A Level Business 9609


Paper 3 – Case study

Paper 3 – Case study

Question 1

Example candidate response – high Examiner comments

1 It is good practice for a


candidate to define key
terms in their answer.
1 This is a good
definition of human
resource management.

2 2 The candidate makes


effective use of the
case material and
recognises that the
flexible approach being
used represents a
‘hard’ style of HRM.
3
3 In this paragraph, the
candidate makes
effective links between
the changes to
contracts being
introduced, the theory,
and the possible
impact on CJE in
context, i.e. referencing
4 the importance of
engine quality and
reliability. A link is
made to the impact on
market share.
However, the analysis
of this link could have
been made clearer.

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.

Cambridge International AS and A Level Business 9609 7


Paper 3 – Case study

Example candidate response – high, continued Examiner comments

5 The candidate provides


5 some brief analysis of
the impact of
employees learning
new skills. This is
underpinned with
reference to theory.
The chain of argument
is extended to explain
6 that lower labour costs
could increase profit
margins and enable
the firm to offer more
competitive prices,
leading to an increase
in market share.

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.

Total marks awarded =


9 out of 10

How the candidate could have improved their answer


The analysis could have been developed further by extending the chains of argument presented, for
example, by explaining in more detail how demotivated workers might work less effectively, which would
therefore impact the quality of the engines. If engine quality were affected, this could damage CJE’s
reputation, resulting in lower sales and a consequent loss of market share.

8 Cambridge International AS and A Level Business 9609


Paper 3 – Case study

Example candidate response – middle Examiner comments

1 The candidate provides


a partial definition, but
does not relate it to the
1 management of
employees.

2 A reference to the case


2 study material and a
statement about the
impact on costs,
though without
analysis.

3 Good knowledge of the


3 possible impact of zero
hours contracts, with
some brief analysis.
This could have linked
back to the issue of
profit margins identified
in the case.

4 4 Knowledge of the
possible negative
5 impact on motivation,
although this point
could have been
developed further and
context given.

5 A very brief answer


that demonstrates
understanding of a
more flexible approach
to human resource
management, but there
is limited analysis and
application.

Total marks awarded =


5 out of 10

How the candidate could have improved their answer


Although the candidate provided evidence of understanding the idea of a more flexible approach to human
resource management, analysis and application were not developed in their answer. The definition of flexible
HRM was only partial and references to the case study were not developed. The candidate made statements
about the impact of temporary and zero hour contracts but did not develop any supporting analysis linking
their ideas together. Application could have been improved by using the case study information, such as the
competitive nature of the market, the impact of changes on engine quality and the low levels of profit made
by CJE.

Cambridge International AS and A Level Business 9609 9


Paper 3 – Case study

Example candidate response – low Examiner comments

1 A comprehensive
definition of the role of
1 human resource
management.

2 This links the desire to


2 cut costs to the various
changes made. The
candidate is, however,
just repeating elements
of the case study.

3 Here, the candidate


3 analyses the benefit of
using short term
contracts and links this
4 to the market share
shown in Fig.1 of the
case study.

4 From this point on, the


candidate loses focus
on the question and
analyses different
forms of non-financial
motivation. These
points do not answer
the question.

10 Cambridge International AS and A Level Business 9609


Paper 3 – Case study

Example candidate response – low, continued Examiner comments

Total marks awarded =


4 out of 10

How the candidate could have improved their answer


The candidate did not focus on the impact of the changes made by CJE. Instead, much of their response
discussed a range of approaches, such as quality circles and delegation, which did not answer the question.
The candidate did not fully appreciate the meaning of a flexible approach to human resource management,
i.e. the attempt to convert the fixed costs of employing workers into variable costs.

Common mistakes candidates made in this question

 Weak understanding of flexible HRM.


 Inaccurate definitions of zero hours contracts.
 Confusion between temporary and part-time contracts.
 Candidates provided analysis of the impact of the changes from the case study on the employees, but
gave no analysis of how that translated into an impact on CJE in terms of, for example, productivity,
labour turnover and training costs.

Cambridge International AS and A Level Business 9609 11


Paper 3 – Case study

Question 2

Example candidate response – high Examiner comments

1 A calculation of the unit


1
transport cost.

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.

Mark for (a) = 6/6

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.

7 Further application that


highlights the potential
benefit to CJE of
outsourcing.

12 Cambridge International AS and A Level Business 9609


Paper 3 – Case study

Example candidate response – high, continued Examiner comments

8 The candidate makes a


judgement regarding
the risk of expansion if
economic conditions
change.
8 9 Some developed
analysis of the
problems that could
arise from expansion.
This answer is
enhanced by the use of
appropriate terms such
as ‘spare capacity’ and
‘profit margin’.

9 10 This point could have


been developed
further.

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.

13 This answer shows


good understanding of
relevant issues and
uses case study
12 information throughout.

Mark for (b) = 10/12

Total marks awarded =


13 16 out of 18

How the candidate could have improved their answer


The candidate made a strong case for their recommendation, using their result from (a) effectively. The
candidate gave due consideration to both options, but the key issue of quality was only mentioned but not
developed fully. Analysis could have been improved by building more extended chains of argument.

Cambridge International AS and A Level Business 9609 13


Paper 3 – Case study

Example candidate response – middle Examiner comments

1 Although this is not


stated explicitly, the
candidate has clearly
calculated the unit
transport cost.
1
2 A clear method is
shown to arrive at the
2 figure for total cost.
However, the fixed
costs of the existing
CJE factory should not
have been included
here.
3
3 Unit cost calculated.
OFR applies.

4 Existing fixed costs


4 included.

5 The difference in unit


5 cost identified.

Mark for (a) = 4/6

14 Cambridge International AS and A Level Business 9609


Paper 3 – Case study

Example candidate response – middle, continued Examiner comments

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.

9 9 Some brief analysis


here. This point could
10 have been developed
in more detail to show
greater understanding
of the significance of
being able to increase
the production of
engine blades quickly.

10 The initial
recommendation has
been supported by
subsequent
commentary.

Mark for (b) = 6/12

Total marks awarded =


10 out of 18

How the candidate could have improved their answer


Although the candidate showed they understood the significance of their result from (a), their response
would have benefited from further analysis of the issues and consideration of the advantages of extending
the factory. The candidate’s knowledge and application skills were sufficient but their chains of argument
remained underdeveloped.

Cambridge International AS and A Level Business 9609 15


Paper 3 – Case study

Example candidate response – low Examiner comments

1 1 The concept of unit


cost is understood.
2 The annual fixed costs
of the existing CJE
2 factory should not be
included in the
3 calculation.
3 The contracted price
per blade has not been
4 included in the
calculation of the unit
cost for outsourcing
production.
5 4 The unit variable cost
has been added to the
existing fixed costs and
the additional fixed
6 costs before being
divided by 3 000.
Incorrect method
demonstrated.

7 5 The difference in unit


cost has been
calculated here.
8
Mark for (a) = 2/6
6 A definition given.
7 Some application here.
9 8 The candidate
manipulates the case
study data to make a
valid point here. This is
one way of
10 demonstrating
application.
9 Some brief analysis of
the impact of lower unit
cost on profit margin.
10 A brief answer that
identifies the relevant
factors but does not
contain any developed
analysis or make a
recommendation.
Mark for (b) = 4/12

Total marks awarded =


6 out of 18

16 Cambridge International AS and A Level Business 9609


Paper 3 – Case study

How the candidate could have improved their answer


The candidate identified the relevant factors using the case study information in (b) and referring to their
answer for (a). The candidate could have improved their response by extending their analysis of the factors
identified. For example, although the candidate recognised that outsourcing would result in earlier deliveries
than increasing output, there was no analysis of this benefit. As sales have been increasing and CJE is
already operating at 95 % capacity, the business risks losing sales to competitors if there is any delay in
increasing output. The candidate did not make a recommendation regarding outsourcing, as required by the
question.

Common mistakes candidates made in this question


2(a)
 Including the existing fixed costs of CJE’s factory in the calculation.
 Not dividing the transport cost of $200 by 10 to find the unit transport cost.
 Not calculating the difference in unit cost between outsourcing and increasing the capacity of the existing
factory.

2(b)
 Not giving a balanced argument.
 Only considering their answer from (a).
 Not making a recommendation regarding outsourcing.

Cambridge International AS and A Level Business 9609 17


Paper 3 – Case study

Question 3

Example candidate response – high Examiner comments

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.

4 Further analysis of the


consequences of fines.
5 There is a well-
developed chain of
argument in this
6
paragraph, along with
some evaluation in the
reference to
‘substantial’ fines and
the drastic decline in
sales revenue.

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.

18 Cambridge International AS and A Level Business 9609


Paper 3 – Case study

Example candidate response – high, continued Examiner comments

7 Assessing the long-


term impact is a useful
way of developing
7 evaluation. The
candidate also
recognises that further
quantitative data would
be useful in deciding
whether CJE should try
to get the contract.

Total marks awarded =


13 out of 16

How the candidate could have improved their answer


The candidate could have included further evaluative content in the main body of their answer. They could
also have structured their evaluation in the final paragraph more effectively; the last sentence did not offer a
strong conclusion.

Cambridge International AS and A Level Business 9609 19


Paper 3 – Case study

Example candidate response – middle Examiner comments

1 This summarises the


background
1
information to this
decision.

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.

4 This provides analysis


4 of the consequences of
making a bribe.

5 5 A recommendation is
made here.

20 Cambridge International AS and A Level Business 9609


Paper 3 – Case study

Example candidate response – middle, continued Examiner comments

6 Clear supporting
6 evidence for the
recommendation,
highlighting the risk
that CJE would be
taking.

Total marks awarded =


9 out of 16

How the candidate could have improved their answer


The candidate could have improved their answer by analysing more thoroughly the benefits and
disadvantages of making the facilitating payments, for example, the consequences for CJE of facing legal
action and/or the impact of losing customers if an act of bribery became public. The candidate identified
these issues but did not develop them.

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.

Cambridge International AS and A Level Business 9609 21


Paper 3 – Case study

Example candidate response – low Examiner comments

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.

3 Further analysis of how


CJE might incur losses
by acting illegally.

4 A brief answer that


shows understanding
3 of the purpose of
making facilitating
payments. However,
4 the analysis of the
benefits to CJE of
winning the contract is
not developed.

Total marks awarded =


6 out of 16

How the candidate could have improved their answer


The candidate provided a brief answer that demonstrated understanding of the role of the facilitating
payments in winning the contract. However, the analysis was not fully developed and there was no overall
judgement about whether the payments should be made or not.

Common mistakes candidates made in this question

 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.

22 Cambridge International AS and A Level Business 9609


Paper 3 – Case study

Question 4

Example candidate response – high Examiner comments

1 The correct equation


for calculating
1
2 operating profit margin
is given here.
2 An accurate calculation
3
of operating profit with
4 a clear method shown.
3 An accurate calculation
of revenue with a clear
method.

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

9 This shows application


as it uses data from the
case study to compare
the operating profit
margin before and after
the proposed changes.
10 The benefit of making
changes is briefly
analysed here.

Cambridge International AS and A Level Business 9609 23


Paper 3 – Case study

Example candidate response – high, continued Examiner comments

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.

15 The candidate makes a


judgement here but
14 includes limited
support for it.

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

Total mark awarded =


13 out of 20

How the candidate could have improved their answer


The candidate used their answer for (a) effectively and developed some of their analysis of the issues in (b).
However, most of the analysis was not sufficiently extended and contained only one or two links. The
response contained some evaluation, but this was underdeveloped. The candidate did not fully understand
the impact of the proposed adjustments; for example, the case study accounting forecasts predict that the
value of non-current assets will increase to $1 295m. The candidate recognised that the adjustments involve
window dressing, but did not explain the impact of the change to depreciation.

24 Cambridge International AS and A Level Business 9609


Paper 3 – Case study

Example candidate response – middle Examiner comments

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

3 The correct formula for


gearing.
4
4 An incorrect calculation
of capital employed:
 depreciation
unaccounted for
 intangible non-current
assets excluded
 net current asset
excluded
 total non-current
assets excluded
 sales revenue
included.
Mark for (a)(ii) = 1/4

Cambridge International AS and A Level Business 9609 25


Paper 3 – Case study

Example candidate response – middle, continued Examiner comments

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.

7 The candidate does


7 not explain why there
would be an increase
in overheads.

26 Cambridge International AS and A Level Business 9609


Paper 3 – Case study

Example candidate response – middle, continued Examiner comments

8 The candidate does


not explain why
shareholders might
start selling shares at
low cost. The analysis
lacks clarity in this
paragraph.
8
9 The candidate makes a
judgement, but their
supporting arguments
are limited.

Mark for (b) = 7/12


9
Total marks awarded =
10 out of 20

How the candidate could have improved their answer


The candidate partially calculated the change to operating profit but did not calculate the operating profit
margin. They needed to understand how to calculate capital employed from the data provided.

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.

Cambridge International AS and A Level Business 9609 27


Paper 3 – Case study

Example candidate response – low Examiner comments

1 1 Correct formula.

Mark for (a)(i) = 1/4

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.

28 Cambridge International AS and A Level Business 9609


Paper 3 – Case study

Example candidate response – low, continued Examiner comments

7 The candidate makes a


limited judgement here,
7 but this lacks
supporting evidence.

Mark for (b) = 4/12

Total marks awarded =


6 out of 20

How the candidate could have improved their answer


This candidate needed more practice making amendments to financial data and manipulating balance sheet
data to calculate capital employed.

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.

Common mistakes candidates made in this question


Candidates should practice making amendments to financial data and manipulating balance sheet data to
calculate capital employed.

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.

Cambridge International AS and A Level Business 9609 29


Paper 3 – Case study

Question 5

Example candidate response – high Examiner comments

1 Knowledge of
functional departments.

1 2 Awareness of the
usefulness of
information about
growth in labour costs
to HR.

3 Analysis of the impact


of increasing labour
costs. The candidate
2 could have highlighted
how this might be used
by HR.
3 4 The forecasts do not
4 show this; they only
provide evidence of the
growth in labour costs.

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.

30 Cambridge International AS and A Level Business 9609


Paper 3 – Case study

Example candidate response – high, continued Examiner comments

9 Further evaluation.

9 10 The candidate could


have focused here on
the case study
information: location of
factories and strategic
10 options, for example.

11 11 Further evaluation.

Total marks awarded =


15 out of 16

How the candidate could have improved their answer


The candidate demonstrated clear understanding of the usefulness of the data to functional departments.
The evaluation was particularly well developed, both in the body of the answer and in the conclusion. The
candidate could have included further analysis of how the functional departments might use the data in
decision-making and planning.

Cambridge International AS and A Level Business 9609 31


Paper 3 – Case study

Example candidate response – middle Examiner comments

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.

32 Cambridge International AS and A Level Business 9609


Paper 3 – Case study

Example candidate response – middle, continued Examiner comments

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.

Total marks awarded =


9 out of 16

How the candidate could have improved their answer


Application in this answer could have been improved, for example, by linking growth in GDP per capita to a
likely increase in the demand for air travel and, therefore, in the demand for aircraft and, consequently,
engines from CJE. The candidate’s conclusion showed evaluation but this could have been developed more
within the body of the answer.

Cambridge International AS and A Level Business 9609 33


Paper 3 – Case study

Example candidate response – low Examiner comments

1 Planning based on
global economic
forecasts is not
contingency planning.

1 2 Knowledge of
functional departments.

3 This data is not


2 included in Appendix 1.
However, the
candidate could have
identified that such
additional information
would be useful to CJE
and that the global
3 economic forecasts in
Appendix 1 are
insufficient for HRM to
make decisions.

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.

Total mark awarded =


5 5 out of 16

How the candidate could have improved their answer


Analysis of the usefulness of the labour data was underdeveloped in this answer. The candidate could have
shown applied understanding by linking this data to decisions regarding strategic growth options or whether
the finance/operations/human resources department(s) would recommend shifting operations to take
advantage of the slower growth of labour costs in the European Union compared with the BRICS countries.
The candidate could have developed their analysis of how marketing could focus more on sales to Asian
aircraft manufacturers, since their market share is projected to increase.

Common mistakes candidates made in this question

 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.

34 Cambridge International AS and A Level Business 9609


Paper 3 – Case study

Question 6

Example candidate response – high Examiner comments

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.

Cambridge International AS and A Level Business 9609 35


Paper 3 – Case study

Example candidate response – high, continued Examiner comments

4 Understanding of
strategy 2. Ansoff’s
matrix applied.
4
5 Repetition of
information from the
5 case study.

6 The candidate has lost


focus on the question
and describes strategic
implementation. They
6 should demonstrate
how this helps make
the decision.
7
7 Evaluation of the
8 usefulness of the
technique.
9
8 Application.

9 Application.

10 Analysis and
10 evaluation.

11 Evaluation.
11
12 Further evaluative
comment.

12 13 The candidate makes a


final evaluation,
recognising the factor
that success will
depend on.
13
Total marks awarded =
13 out of 16

How the candidate could have improved their answer


There was a strong focus on strategic choice techniques in the candidate’s answer. However, it was often
descriptive rather than analytical. Although there was some effective evaluation in the body of the answer
and particularly in the conclusion, it could have included more detailed analysis of the data in Table 3.

36 Cambridge International AS and A Level Business 9609


Paper 3 – Case study

Example candidate response – middle Examiner comments

1 Understanding of
theory. Ansoff’s matrix
1 is a relevant tool of
strategic choice.

2 CJE sells 35.7% of its


2 engines in the USA.

3 3 A benefit of strategy 1
identified.

Cambridge International AS and A Level Business 9609 37


Paper 3 – Case study

Example candidate response – middle, continued Examiner comments

4 Reference could be
4
made to Table 3 here.

5 5 The calculation of the


difference in cost is
application.

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.

10 A range of factors are


identified but with only
limited analysis. The
candidate includes
some evaluation but
their supporting
arguments should have
been developed in
9 more detail.
10
Total marks awarded =
9 out of 16

38 Cambridge International AS and A Level Business 9609


Paper 3 – Case study

How the candidate could have improved their answer


The candidate showed understanding of a range of factors but needed to include further analysis of these.
Chains of argument were short and needed to be extended. The candidate could have focused on a
narrower range of factors and given more attention to discussing them. Evaluation was evident but any
supporting arguments were underdeveloped.

Cambridge International AS and A Level Business 9609 39


Paper 3 – Case study

Example candidate response – low Examiner comments

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.

Total marks awarded =


6 out of 16

How the candidate could have improved their answer


The candidate’s answer tended to repeat the data from Table 3 without demonstrating an understanding of
what the data meant. Definitions of key terms such as IRR and EMV were lacking. Although the candidate
made some comparisons of the data for both options, the application of their answer was otherwise limited.
The candidate needed to include more developed analysis of each strategic option and make judgements
throughout their answer.

Common mistakes candidates made in this question

 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.

40 Cambridge International AS and A Level Business 9609


Cambridge International Examinations
1 Hills Road, Cambridge, CB1 2EU, United Kingdom
t: +44 1223 553554 f: +44 1223 553558
e: info@[Link] [Link]

© Cambridge International Examinations 2017


Version 1.0

42 Cambridge International AS and A Level Business 9609

You might also like