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Mark Scheme (Results)

Summer 2017
Pearson Edexcel International
Advanced Level
in Business Studies (WBS03)
Paper 01 Strategic Business Decisions
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Summer 2017
Publications Code WBS03_01_1706_MS
All the material in this publication is copyright
© Pearson Education Ltd 2017
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General Marking Guidance

 All candidates must receive the same

treatment. Examiners must mark the first candidate in exactly
the same way as they mark the last.
 Mark schemes should be applied positively. Candidates
must be rewarded for what they have shown they can do rather
than penalised for omissions.
 Examiners should mark according to the mark scheme
not according to their perception of where the grade boundaries
may lie.
 There is no ceiling on achievement. All marks on the
mark scheme should be used appropriately.
 All the marks on the mark scheme are designed to be
awarded. Examiners should always award full marks if deserved,
i.e. if the answer matches the mark scheme. Examiners should
also be prepared to award zero marks if the candidate’s response
is not worthy of credit according to the mark scheme.
 Where some judgement is required, mark schemes will
provide the principles by which marks will be awarded and
exemplification may be limited.
 When examiners are in doubt regarding the application
of the mark scheme to a candidate’s response, the team leader
must be consulted.
 Crossed out work should be marked UNLESS the
candidate has replaced it with an alternative response.
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Section A: Data response

Question
Number
1 (a) What is meant by the term ‘customers’? 2 marks
Mark
Knowledge – up to 2 marks:

 the persons or organisations that actually make the

purchase (1) of goods/services from a business (1)
1-2
1 mark for partial or vague definition but a valid example
lifts to 2 marks.

Any other suitable alternative.

Question
Number
1 (b) What is meant by the term ‘annual revenue’? 2 marks
Mark
Knowledge – up to 2 marks:

 the total value of sales/price x quantity sold (1)

made within a trading period of one year (1)
1-2
1 mark for partial or vague definition but a valid example
lifts to 2 marks.

Any other suitable alternative.

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Question
Number
2 Explain the importance of mission statements for a business 6 marks
such as SurveyMonkey
Mark
(Knowledge 2, Application 2, Analysis 2)

Knowledge/understanding: up to 2 marks are available 1-2

for knowledge/understanding why a business such as
SurveyMonkey has mission statements

e.g. to direct or stimulate members of the organisation to

work/operate to a given company ethos (1) which is
designed to inform or impress customers and other external
stakeholders (1)

Application: up to 2 marks are available for contextualised 1-2

answers based on the mission statements such as those in
Evidence B

e.g. SurveyMonkey wants to help its customers conduct

their own research (1) so that they can make better
decisions (1)

Analysis: up to 2 marks are available for developing 1-2

reasons/causes/consequence of mission statements

e.g. Employees will be more motivated as they understand

the aims of the business (1) SurveyMonkey is hoping that
its stakeholders will form a better impression/image of the
business as a result of reading its mission statements (1)
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Question
Number
3 Analyse the corporate culture at SurveyMonkey. 8 marks
Mark
(Knowledge 2, Application 2, Analysis 4)

Knowledge/understanding: up to 2 marks are available 1-2

for showing understanding of the corporate culture at
SurveyMonkey

The evidence suggests that the corporate culture is directed

by the thoughts and opinions of CEO, Dave Goldberg (1)
valuing and developing employees (1)

Application: up to 2 marks are available for contextualised 1-2

answers

e.g. 24 hour support/service (1) 99.5% customer

satisfaction (1)

Analysis: Candidate analyses using reasons/causes/ 1-4

consequences/costs of the corporate culture described in the
evidence

e.g. Customers become the main focus of the business (1)

satisfying customer needs is demonstrated by high levels of
customer satisfaction (1) which has contributed to increased
revenues (1) delivered by well motivated employees (1)
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Question
Number
4 Dave Goldberg states that "Recruiting talent is expensive. 10 marks
Recruiting the wrong talented person is even more
expensive." (Evidence C)

Assess the extent to which Dave Goldberg’s opinion has

contributed to the success of SurveyMonkey.
Level Mark Descriptor Possible content
1 1-2 Knowledge/understanding of basic e.g. recruitment is finding
terms. suitable new employees
and can be done
Material presented is often irrelevant internally or externally
and lacks organisation. Frequent
punctuation and/or grammar errors
are likely to be present and the
writing is generally unclear

2 3-4 Application: basic points developed to e.g. a willingness to

show awareness of Goldberg’s recruit inexperienced
recruitment policy people

Material is presented in simple, e.g. a willingness to train

logical, easy to follow way but there people to fit the culture
are likely to be passages that lack of SurveyMonkey
proper organisation. Punctuation
and/or grammar errors are likely to e.g. a willingness to
be present which affect clarity and invest long-term in an
coherence employee

3 5-7 Analysis in context must be present, e.g. as Chief Executive,

i.e. the candidate must Dave Goldberg's opinion
give reasons/causes/costs will carry a lot of weight,
/consequences of the recruitment and has given a clear
policy espoused by Dave Goldberg direction for recruitment

N.B. if analysis is not in context, e.g. as a result of

limit to Level 2 following this strategy,
SurveyMonkey has ended
Material is presented in a generally up with a very strong
relevant and logical way but this may team of committed
not be sustained throughout. Some employees
punctuation and/or grammar errors
may be found which cause some e.g. this strategy has
passages to lack clarity or coherence resulted in a high degree
of employee loyalty, as
the business has trusted
them and spent
time/money
training/investing in them
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4 8-10 Evaluation must be present and in e.g. there are risks in the
context, i.e. a candidate balances strategy described, as the
the positive impact of Dave business could spend a lot
Goldberg's opinion against the of time and effort in
potential downside training a person, who
may then leave
N.B. if evaluation is not in
context, limit to Level 3 e.g. unproven workers
may have already reached
Material is presented in a relevant their highest level of
and logical way. Some punctuation achievement and may
and/or grammar errors may be never reach the level that
found but the writing has overall the business expects
clarity and coherence
e.g. some recruits may
never be able to fit in with
the culture at
SurveyMonkey

e.g. some recruits may

have all the training but
never achieve the
productivity expected
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Question
Number
5 To assist customers who need to make an objective decision, 12 marks
SurveyMonkey publishes examples of decision tree questionnaires
on its website, based on a series of simple yes/no questions.

Assess the usefulness of decision trees when making

business decisions.
Level Mark Descriptor Possible content
1 1-2 Knowledge/understanding of the e.g. a decision tree is a graphical
nature and purpose of decision trees way of setting out options
available, that will lead to a point
Material presented is often irrelevant where a decision can be made
and lacks organisation. Frequent
punctuation and/or grammar errors e.g. a decision tree is a device
are likely to be present and the which will enable a decision to be
writing is generally unclear made, based on consideration,
rather than ignorance

2 3-4 Application must be present, i.e. e.g. SurveyMonkey publish

candidate must give a contextualised examples for its customers
answer
e.g. candidate uses own example
Material is presented in simple, of decision tree
logical, easy to follow way but there
are likely to be passages that lack
proper organisation. Punctuation
and/or grammar errors are likely to
be present which affect clarity and
coherence

3 5-7 Analysis in context must be present, e.g. a decision tree will lead to a
i.e. the candidate must decision based on a logical
give reasons/causes/costs sequence of considered answers
/consequences of using a decision to questions involved in a
tree to make decisions decision, rather than making a
random decision without the
N.B. if analysis is not in context, necessary consideration
limit to Level 2
e.g. a decision tree will reduce
Material is presented in a generally the risks involved in making a
relevant and logical way but this may wrong decision, as it takes the
not be sustained throughout. Some user through a series of
punctuation and/or grammar errors questions/steps which lead to a
may be found which cause some conclusion
passages to lack clarity or coherence.
e.g. it can be used to give some
justification to a decision

e.g. because they are simple to

construct/easy to interpret, they
are likely to be used more
readily/ more frequently than
more difficult methods of making
decisions
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4 8-12 Evaluation must be present, giving e.g. it can be difficult to develop

the limitations of decision trees the right questions or options
which should be taken into
Low Level 4: 8-10 marks. consideration when making the
Evaluation must be present i.e. a decision
candidate balances their answer by
identifying the downside of using e.g. Decision trees may be good
decision trees for making tactical decisions but
are not suitable for making
High Level 4: 11-12 marks. strategic decisions
Evaluation is developed to show a
real perceptiveness on the part of the e.g. the quality of the outcome of
candidate. Several strands may be a decision tree is dependent on
developed; the answer is clear and the quality of the
articulate, leading to a convincing construction/sequence of
conclusion questions entered, if these are
not right a business may be
N.B. if evaluation not in context, misled into making a poor or
limit to Level 3 wrong decision

Material is presented in a relevant e.g. decision trees can become

and logical way. Some punctuation cumbersome/ unwieldy/overly
and/or grammar errors may be found complex if too much data is
but the writing has overall clarity and entered
coherence.
e.g. the decision is limited to the
data used
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Section B: Essay questions

Question
Number
6 Evaluate the growth strategy used by SurveyMonkey. 20 marks

Level Mark Descriptor Possible content

1 1-2 Knowledge/understanding of what is e.g. the development/expansion
meant by company growth of a business which may be
organic, by expanding from
Material presented is often irrelevant within its own resources or
and lacks organisation. Frequent inorganic, through mergers,
punctuation and/or grammar errors takeovers and acquisitions
are likely to be present and the
writing is generally unclear

2 3-6 Application must be present, i.e. e.g. in its early days, growth
candidate must give a contextualised appeared to be organic,
answer which may be based on past achieving $30m from start-up
company growth
e.g. since 2009 SurveyMonkey is
Low Level 2: 3–4 marks. reported to have had a 'period of
Candidate give one or two examples sustained buying'
of application
e.g. raising $250m in equity
High Level 2: 5–6 marks. financing grew the business in
Candidate gives more than two financial terms
examples of application
e.g. with the $250m funding,
Material is presented with some SurveyMonkey is expected to
relevance but there are likely to be 'pursue future takeovers'
passages that lack proper
organisation. Punctuation and/or e.g. new products are being
grammar errors are likely to be developed
present which affect clarity and
coherence

3 7 -12 Analysis in context must be present, e.g. as a result of Dave

i.e. the candidate must give Goldberg's statement at the end
reasons/causes/costs/consequences of Evidence D, it appears that
of the company growth exhibited by the business is planning to grow
SurveyMonkey through both inorganic as well
as organic strategy
Low Level 3: 7–9 marks.
Analysis limited: only 1or 2 e.g. the reason for historic
reasons/causes/costs or inorganic growth appears to be
consequences are outlined to take competitors out of the
market
High Level 3: 10–12 marks.
Analysis is more developed: 2 or e.g. as a result of the finance
more reasons/causes/costs and/or raised, Evidence E,
consequences are outlined and SurveyMonkey has a large sum
developed of money to fund growth
through takeovers
N.B. if analysis is not in context,
limit to Level 2
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e.g. the 25 million people using

Material is presented in a generally SurveyMonkey, will provide a
relevant and logical way but this target market for increasing
may not be sustained throughout. revenue, which will result in
Some punctuation and/or grammar organic growth
errors may be found which cause
some passages to lack clarity or e.g. growth is not just inorganic,
coherence SurveyMonkey has acquired
shares in other businesses, and
is also growing organically by
developing new products

4 13-20 Evaluation must be present and in e.g. with such high growth, the
context, considering the downside of business could lose sight of its
the nature of company growth that basic product, on-line surveys,
SurveyMonkey has experienced which could be made available
very easily by competitors,
Low Level 4: 13–14 marks. which could pick-off
Some evaluative points are made, customers/revenue
based on analysis of the business
situation without arriving at a e.g. the reported high levels of
conclusion/judgement organic and inorganic growth,
will make it difficult to manage
Mid Level 4: 15–17 marks. the overall growth of the
A judgement is attempted with some business
effort to show that such rapid growth
may have its downside e.g. growth through investment,
does not necessarily translate
High Level 4: 18–20 marks. into growth in revenue, hence
Convincing evaluation with a the need to 'bulk up' the
conclusion, on the extent to which features for the 25 million users
the business has become vulnerable
as a result of the way that it has e.g. like any DOT.COM business,
grown growth is a 'bubble' as the
business has no tangible assets
Several strands may be developed; such as plant/machinery/stock
the answer is clear and articulate to protect the business if
leading to a convincing conclusion investors decide to withdraw
their funding
N.B. if evaluation not in context,
limit to Level 3 e.g. growth from start-up to
$2bn in 2014 is unlikely to be
Material is presented in a relevant sustainable
and logical way. Some punctuation
and/or grammar errors may be
found but the writing has overall
clarity and coherence
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Question
Number
7 Assess the extent to which contingency planning could have 20 marks
protected SurveyMonkey from shocks such as the death of its
CEO, Dave Goldberg.
Level Mark Descriptor Possible content
1 1-2 Knowledge/understanding of what is e.g. plans prepared in advance
meant by contingency planning, or for unwanted/
'shock' in the context of contingency unforeseen/unlikely possibilities,
plans so that the business can
implement the plan if things go
Material presented is often irrelevant wrong or problems arise
and lacks organisation. Frequent
punctuation and/or grammar errors e.g. shock refers to an
are likely to be present and the unforeseen event that is out of
writing is generally unclear the control of a business, but has
major impact on that business
and its stakeholders

2 3-6 Application must be present, i.e. the e.g. the 'shock' was the fact
candidate's answer must identify the that person who had expanded
shock, the potential extent of the the company to $2bn was
shock, and any contingency plan suddenly dead
that the business may have in place
e.g. with the loss of its chief
Low Level 2: 3–4 marks. executive, a business of the size
Candidate identifies 1 or 2 aspects of of SurveyMonkey would need
the 'shock' of losing Dave someone to head up the
Goldberg/chief exec company immediately

High Level 2: 5–6 marks. e.g. the business very quickly

Candidate identifies stakeholders appointed an interim CEO,
and makes detailed references to Zander Lurie/within 5 days,
more than 2 aspects of the 'shock' of SurveyMonkey had an interim
losing Dave Goldberg/chief exec CEO in place

Material is presented with some e.g. or any other valid

relevance but there are likely to be applications
passages that lack proper
organisation. Punctuation and/or
grammar errors are likely to be
present which affect clarity and
coherence

3 7-12 Analysis in context must be present, e.g. a contingency plan means

i.e. the candidate must that if a shock happens the
Give business can move quickly and
reasons/causes/costs/consequences continue trading as normal
of having contingency plans in place
e.g. stakeholders would be
Low Level 3: 7-9 marks. reassured that the
Candidate will attempt a very basic business/their investment would
analysis, making general points be protected because a
about the benefits of having contingency plan exists
contingency plans in place
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High Level 3: 10-12 marks. e.g. the speed which the interim
Candidate makes a more detailed CEO was in place would mean
analysis, making specific points that customers/employees
about the benefits of having would not notice any major
contingency plans in place change as a result of the death
of Dave Goldberg
N.B. if analysis is not in context,
limit to Level 2 e.g. the corporate strategy
which has already been
Material is presented in a generally established by Dave Goldberg is
relevant and logical way but this likely to be maintained as
may not be sustained throughout. Zander Lurie is already on the
Some punctuation and/or grammar SurveyMonkey board of
errors may be found which cause directors
some passages to lack clarity or
coherence e.g. if the business has
contingency plans in place the
decisions have already been
made and only need to be
implemented thus saving time
and money

4 13-20 Evaluation must be present and in e.g. contingency planning

context, based on the extent to cannot cover everything and
which contingency planning may not does not prevent things from
have been useful following the shock going wrong
of SurveyMonkey losing its CEO
e.g. contingency plans might be
Low Level 4: 13-14 marks. out of date or too complex to be
Some basic evaluative points are effective
made, referring to how there are
some limitations to the extent that e.g. most evaluation of
contingency planning will protect a contingency planning would
business from shocks conclude that it is essential for a
business, a bit like insurance –
Mid Level 4: 15-17 marks. it needs to be in place, with the
Candidate gives a range of hope that it is never needed
comments on limitations to the
extent that contingency planning will e.g. contingency planning is
protect a business from shocks likely to be positive for the
business unless its
High Level 4: 18-20 marks. implementation was onerous
Candidate gives a wide range of and consequently ignored
arguments, to show how
contingency planning may well be e.g. to be effective, contingency
important and already in place for a planning will need to focus on a
business, but concluding that it realistic risk assessment and not
cannot actually stop any shocks from concentrate on unlikely
affecting a business extremes such as earth being
hit by meteor etc.
Several strands may be developed;
the answer is clear and articulate e.g. there is a risk that the plan
leading to a convincing conclusion which brought about the swift
appointment of an interim CEO/
N.B. if evaluation is not in Zander Lurie could upset
context, limit to Level 3 employees/ customers/
stakeholders
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Material is presented in a relevant

and logical way. Some punctuation e.g. there is a risk that the
and/or grammar errors may be contingency plan which resulted
found but the writing has overall in the recruitment of new
clarity and coherence. CEO/Bill Veghte may not be
smooth/seamless as he will
bring his own style/culture to
SurveyMonkey which may upset
employees/customers/stakehold
ers

e.g. although the contingency

planning has helped
SurveyMonkey find a
replacement for Dave Goldberg
quickly, it may have been too
quick and the new CEO may not
be able to manage the business
as well as Dave Goldberg/there
may not be a good culture fit
with the new CEO

Question knowledge application analysis evaluation TOTAL

1a 2 - - - 2
1b 2 - - - 2
2 2 2 2 - 6
3 2 2 4 - 8
4 2 2 3 3 10
5 2 2 3 5 12
6 2 4 6 8 20
7 2 4 6 8 20
TOTAL 16 16 24 24 80
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