Mark Scheme (Results)

October 2020

Pearson Edexcel GCE AS Level

In Business (8BS0)
Paper 1: Marketing and people
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Autumn 2020
Publications Code 8BS0_01_2010_MS
All the material in this publication is copyright
© Pearson Education Ltd 2020
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.
Question Answer Mark
Number
1 (a) Knowledge 2

Knowledge/understanding: up to 2 marks for,

business to business marketing, eg:
• businesses that promote the sale of
products/services (1) to other businesses for use
in their operations (1)

(2)

Question Answer Mark

Number
1 (b) Knowledge 2

Knowledge/understanding: up to 2 marks for, sole

trader, eg:
• a business that that is owned by one person (1)
who has unlimited liability (1)

(2)
Question Answer Mark
Number
1 (c) Knowledge 1, Application 2, Analysis 1

Knowledge/understanding: 1 mark for showing an

understanding of market orientation, eg:

• business products/services are based around

the needs and wants of the customer.

Application: up to 2 marks for suggesting how Hydra

Creative is market orientated, eg:

• by providing SEO services that businesses are

looking for (1)
• Hydra Creative has responded to customer
feedback about how it promotes itself (1)

Analysis: 1 mark is available for explaining the

consequences, eg:

• this could lead to more sales for Hydra Creative

because it is offering services that its customers
need.
(4)
Question Answer Mark
Number
1 (d) Knowledge 1, Application 2, Analysis 1

Knowledge/understanding: 1 mark for showing an

understanding of an extension strategy, eg:

• a method used to lengthen the life/sales of a

product/service.

Application: up to 2 marks for contextualised

examples, eg:

• Hydra Creative may have to offer more modern

options for its business stationery and
packaging (1)
• Hydra Creative may have to update its web
design to offer more interactive elements, such
as virtual assistants (1)

Analysis: 1 mark is available for explaining the

consequences, eg:

• Hydra Creative may be able to

increase/maintain its sales (1)
• Hydra Creative may be less likely to fall into the
decline stages of the product life cycle (1)
(4)
Question
Indicative content Mark
Number
1 (e) Knowledge 2, Application 2, Analysis 2, Evaluation 2

• Ryan may find it difficult to delegate tasks to some of the

other 18 team members as the business gets too big for
him to handle all the orders.
• Ryan may find it difficult to trust other people to do some
tasks that he previously did himself such as talking to
clients or developing websites, moving from a centralised
organisational structure to decentralised.
• Ryan may find it difficult to change his leadership style to
laissez faire as he has more employees who work in a
creative environment and need the freedom to do their job.

Potential counterbalance

• Ryan may only need to delegate minor tasks so that he can

oversee all the work produced.
• A centralised structure may still work as the team of 18 is
still small.
• Ryan may not have the confidence in his new employees
yet and therefore prefer to maintain control. (8)
Level Mark Descriptor
0 A completely inaccurate response.
Level 1 1–2 Isolated elements of knowledge and understanding – recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–5 Accurate knowledge and understanding.
Applied accurately to the business and its context.
Chains of reasoning are presented, showing cause(s) and/or
effect(s) but may be assertions or incomplete.
An attempt at an assessment is presented that is unbalanced and
unlikely to show the significance of competing arguments.
Level 3 6–8 Accurate and thorough knowledge and understanding,
supported by relevant and effective use of the business
behaviour/context.
Logical chains of reasoning, showing cause(s) and/or effect(s).
Assessment is balanced, well contextualised, using quantitative
and/or qualitative information, and shows an awareness of
competing arguments/factors leading to a supported judgement.
Question
Indicative content Mark
Number
1 (f) Knowledge 2, Application 2, Analysis 3, Evaluation 3

• Hydra Creative can raise finance more easily as a private

limited company by selling shares.
• As it uses B2B marketing its customers may take them
more seriously as a Ltd.
• The business has limited liability, which reduces the risk of
losing personal possessions for Ryan and Gemma.

Potential counterbalance

• Profits may have to be shared between the shareholders

whereas Ryan could have kept all the profits as a sole
trader.
• New shareholders have a say in decision making, which
may cause conflict.
• New shares can only be sold privately and with the
agreement of both existing shareholders so the ability to
raise finance could be limited.

Potential judgement

• It depends on whether friends and family are interested in

buying shares in Hydra Creative when Ryan and Gemma
want to raise more finance.
(10)
Level Mark Descriptor
0 A completely inaccurate response.
Level 1 1–2 Isolated elements of knowledge and understanding – recall
based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–4 Elements of knowledge and understanding, which a r e applied to
the business example.
Chains of reasoning are presented, but may be assertions or
incomplete.
A generic or superficial assessment is presented.
Level 3 5–6 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context. Analytical perspectives are presented, with
developed chains of reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using quantitative
and/or qualitative information, though unlikely to show the
significance of competing arguments.

Level 4 7–10 Accurate and thorough knowledge and understanding, supported

t h r o u g h o u t by relevant and effective use of the business
behaviour/context.
A coherent and logical chain of reasoning, showing cause(s)
and/or effect(s).
Assessment is balanced, wide ranging and well contextualised,
using quantitative and/ o r qualitative information, and shows
an awareness of competing arguments/factors leading
to a supported judgement.
Question Answer Mark
Number
2 (a) Knowledge 2

Knowledge/understanding: up to 2 marks for,

entrepreneurial motives, eg:
• more income/profit maximisation (1)
• ethical/social (1)
• independence (1)

(2)

Question Answer Mark

Number
2 (b) Knowledge 2

Knowledge/understanding: up to 2 marks for,

sponsorship, eg:
• a company giving a product or money (1) to
support another business or person (1)

(2)
Question Answer Mark
Number
2 (c) Knowledge 1, Application 2, Analysis 1

Knowledge/understanding: 1 mark for showing an

understanding of opportunity cost, eg:

• the next best alternative forgone when making a

decision.

Application: up to 2 marks for contextualised

examples, eg:

• Zack quit university to start his business

forfeiting a degree (1)
• starting a healthy snack business could mean he
doesn’t receive a regular income (1)

Analysis: 1 mark is available for explaining the

consequences, eg:

• not having a degree might limit his career

options in the future (1)
• he may not be able to afford to pay his rent or
buy things he wants that he could have done if
he had a job with a salary (1) (4)
Question Answer Mark
Number
2 (d) Knowledge 2, Application 1, Analysis 1

Quantitative skills assessed:

QS3: construct and interpret a range of standard
graphical forms

Knowledge: up to 2 marks for:

• correctly constructing supply and demand
curves (1)
• correctly labelling axes, price and quantity
(1)

Application: 1 mark for:

• correctly interpreting the shift in the
supply curve to the left (1)

Analysis: 1 mark for:

• showing the original and new
equilibrium and consequences on
the quantity and price axes (1)

(4)
Question
Indicative content Mark
Number
2 (e) Knowledge 2, Application 2, Analysis 2, Evaluation 2

• If a celebrity such as Beyonce was seen eating the coconut

snacks this could make them more popular and increase
demand.
• If research showed that coconut was fattening then people
might choose other alternatives therefore reducing
demand.
• As coconut snacks are becoming more popular other
competitors might enter the market so demand for Ape
Snacks could reduce.

Potential counterbalance

• Some people may not like the taste of coconut so will not
be influenced by celebrities eating the snacks.
• There is lots of conflicting information about health foods
so people may ignore it if they enjoy eating Ape Snacks.
• Ape Snacks could have already established a good
reputation and brand loyalty so new competitors may not
be able to compete. (8)
Level Mark Descriptor
0 A completely inaccurate response.
Level 1 1–2 Isolated elements of knowledge and understanding – recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–5 Accurate knowledge and understanding.
Applied accurately to the business and its context.
Chains of reasoning are presented, showing cause(s) and/or
effect(s) but may be assertions or incomplete.
An attempt at an assessment is presented that is unbalanced and
unlikely to show the significance of competing arguments.
Level 3 6–8
Accurate and thorough knowledge and understanding, supported
by relevant and effective use of the business behaviour/context.
Logical chains of reasoning, showing cause(s) and/or effect(s).
Assessment is balanced, well contextualised, using quantitative
and/or qualitative information, and shows an awareness of
competing arguments/factors leading to a supported judgement.
Question
Indicative content Mark
Number
2 (f) Knowledge 2, Application 2, Analysis 3, Evaluation 3

• Social trends include concerns over resource depletion,

waste minimisation, recycling and ethical sourcing.
• Healthy eating and reducing sugar intake is a current social
trend that Ape Snacks may need to consider when creating
recipes for its snacks, i.e. function
• Reducing the use of plastic is important to people so Ape
Snacks may need to consider the material it makes its
packaging out of, switching to paper or card instead of
plastic, i.e. aesthetics
• Being environmentally friendly/ethical is becoming more
important to shoppers so sourcing the coconut ethically
could increase the cost of manufacture.

Potential counterbalance

• Customers may be more concerned with how the product

tastes rather than how much sugar it contains.
• Because it is a food product, keeping it fresh and of a high
quality may not be possible in a paper packet.
• Ethical sourcing could provide a USP so Ape Snacks could
increase price meaning cost is not an important factor.

Potential judgement

• Social trends change rapidly and food is a dynamic market,

so it is important for Ape Snacks to achieve customer
loyalty by offering new products regularly to meet the
changing needs and wants in the snack market.
(10)
Level Mark Descriptor
0 A completely inaccurate response.
Level 1 1–2 Isolated elements of knowledge and understanding – recall
based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–4 Elements of knowledge and understanding, which a r e applied to
the business example.
Chains of reasoning are presented, but may be assertions or
incomplete.
A generic or superficial assessment is presented.
Level 3 5–6 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context. Analytical perspectives are presented, with
developed chains of reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using quantitative
and/or qualitative information, though unlikely to show the
significance of competing arguments.

Level 4 7–10 Accurate and thorough knowledge and understanding, supported

t h r o u g h o u t by relevant and effective use of the business
behaviour/context.
A coherent and logical chain of reasoning, showing cause(s)
and/or effect(s).
Assessment is balanced and well contextualised, using
quantitative and/ o r qualitative information, and shows
an awareness of competing arguments/factors leading
to a supported judgement.
Question
Indicative content Mark
Number
3 Knowledge 4, Application 4, Analysis 6, Evaluation 6

Increased costs
• Jamie’s Italian has made a £9.9m loss, this could in part be
because of increase costs of rent, which is high for high street
outlets. Jamie may need to negotiate lower rent or move
restaurants to cheaper locations.
• Increased food costs may mean that Jamie’s Italian has lower
gross profit on menu items, which could be reduced by
switching to cheaper suppliers.
• By closing more of his Italian restaurants this could further
reduce fixed costs making it easier for the remaining business
as a whole to survive.

Adapting to change
• The casual dining market is dynamic and customers want to try
new things so it is important that Jamie’s Italian keeps updating
its menu to reflect this.
• Veganism is a growing trend and customers are looking for
restaurants that meet these needs, which Jamie’s Italian is not
known for. This presents an opportunity for Jamie to adapt his
menus in order to regain customers.
• Jamie’s Italian has lots of direct competition such as Ask Italian,
Prezzo, Zizzi and Pizza Express as well as indirect competition
such as Byron the burger chain, JD Wetherspoon and Nando’s,
so it is important that they stay ahead by adapting to the
changing needs of customers.

Potential recommendation

• The rising cost of rent and ingredients could have affected all
the restaurant chains, but some are still profitable. Therefore,
by changing suppliers and negotiating costs, Jamie could
prevent further business failure.
• The casual dining market is dynamic as customer tastes and
preferences are constantly changing. So, keeping up to date
with current trends and meeting customer needs is the most
important factor to maintain sales and preventing further
business failure. (20)
Level Mark Descriptor
0 A completely inaccurate response.
Level 1 1–4 Isolated elements of knowledge and understanding.
Weak or no relevant application of business examples.
An argument may be attempted, but will be generic and fail to
connect cause and/or consequences.

Level 2 5–8 Elements of knowledge and understanding, which are applied

to the business example.
Arguments and chains of reasoning are presented, but
connections between causes and/or consequences are
incomplete. Attempts to address the question.
A comparison or judgement may be attempted, but it will not
successfully show an awareness of the key features of business
behaviour or business situation.
Level 3 9–14 Accurate knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Uses developed chains of reasoning, so that causes and/or
consequences are complete, showing an understanding of the
question.
Arguments are developed.
Quantitative and/ or qualitative information is introduced in an
attempt to support judgements, a partial awareness of the
validity and/or significance of competing arguments and may
lead to a conclusion.
Level 4 15–20 Accurate and thorough knowledge and understanding,
supported throughout by relevant and effective use of the
business behaviour/context.
Uses well-developed and logical, coherent chains of reasoning,
showing a range of cause and/or effect(s).
Arguments are fully developed.
Quantitative and/or qualitative information is/are used well to
support judgements. A full awareness of the validity and
significance of competing arguments/factors, leading to
balanced comparisons, judgements and an effective conclusion
that proposes a solution and/or recommendations.
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