Mark Scheme (Results)

Summer 2018

Pearson Edexcel GCE

In Business (9BS0)
Paper 3 Investigating business in a competitive
environment
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Summer 2018
Publications Code 9BS0_03_1806_MS
All the material in this publication is copyright
© Pearson Education Ltd 2018
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
Indicative content Mark
Number
1(a) Knowledge 2, Application 2, Analysis 2, Evaluation 2

Marks for application and analysis include up to 2

marks for quantitative skills

Quantitative skills assessed:

QS2: calculate, use and understand percentages and
percentages changes
QS8: use and interpret quantitative and non-quantitative
information in order to make decisions

● Branding is about creating an image or name that

gives a product an identity which is recognizable and
positive. The more product branding, the greater the
probability of sales.
● It therefore aids promotion and helps in creating,
maintaining and increasing sales

Benefits:
● The product branding in the table shows that for
example Mars UK Ltd can achieve a greater number of
sales in a market by having more products – in 6 out
of 10 highest positions amounting to £198.9m in
2015, 64% of the top 10 added together, stronger
than in 2014 when the same bars achieved £190.8m
out of £308m - 62%
● Having a well known product brand could be
transferable to other products, such as Mars
milkshakes, which can increase sales further
Or enable higher prices to be charged as consumers
will come to trust the quality of the product (PED is
relatively price inelastic)

Possible counter-balance

● Branding can be expensive because of the need to

develop new products, change production processes,
packaging, advertising and marketing for such
products as Mars bars.
● Branding can also be negative if a single product
suffers a problem such as food poisoning, the
reputation of businesses may suffer and also the sales
of its product range (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 effects(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 throughout 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 (b) Knowledge 2, Application 2, Analysis 3, Evaluation 3

● Flexible working is moving away from fixed tasks, working

hours and locations
● Flexible working hours may make it easier to recruit and
retain staff

Value of having flexible working:

● Enables Nestle to have greater flexibility in the way they
deploy their staff ability to vary the way of working whilst
controlling costs.
● Finance staff would be able to work from home to
complete Nestle’s accounts, which could make them more
productive as they will not waste time travelling to, and
from the office
● Flexible job roles across different departments should
allow Nestle to respond with the appropriate level of
staffing to meet changes in demand in the chocolate
market
● Marketing staff at Gatwick HQ may feel more motivated if
they can take their dog to work which may increase
productivity

Possible counter-balance

● Production staff are unlikely to be able to work from home

given the need to work with machinery and plant to make
chocolate
● Staff without dogs may resent others who do take their
dogs to work which might affect staff relations and
productivity
● Dogs may be distracting, so reduce productivity
● Home working staff may be less productive because they
are not closely monitored (McGregor X-type employees)

Possible judgement

● The success of flexible working as an approach to staffing,

very much depends on the nature of the business and the
job. It is less likely to be used in engineering and
production occupations given that practicalities need to be
overcome such as changing from one type of chocolate (10)
bar to another on the production line
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 are
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 by relevant and effective use of the business
behaviour/context.
Analytical perspectives are presented, with chains of
reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using
quantitative and qualitative information, though unlikely to
show the significance of competing arguments.

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

supported 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 qualitative information, and
shows an awareness of competing
arguments/factors leading to a supported
judgement.
Question
Indicative content Mark
Number
1(c) Knowledge 2, Application 2, Analysis 4, Evaluation 4

● Culture refers to shared attitudes, values, customs and

expectations. Social differences come into play when
different groups of people have different ways of
communicating and ways of life. They affect consumer
product preferences and patterns of consumption
● Packaging and ingredients will need to be adapted to suit
the different languages and climates otherwise sales could
suffer

Important of:
● Changing eating habits in India, for example snacking, may
have caused an increase in the demand for on-the-go
convenience foods like chocolate
● As income in emerging economies increase, the demand
for western products such as chocolate may rise
● Indian consumers appear to have a taste preference in
favour of dark chocolate (dark Kit Kat Senses) and
therefore production and sales should be aptly targeted

Potential counterbalance

● Growing prosperity and incomes are more significant

because chocolate is a luxury good to most consumers in
the Indian economy
● Heavily marketed and branded chocolate such as Cadbury or
Nestle may represent a status symbol to consumers so
products will be sold regardless of taste
● Mistakes to do with unintended meanings, inappropriate or
inaccurate translations are less common now given the
growth of globalisation.

Possible judgement

● Businesses that want to expand into new markets must

allow time to get to know their target markets by possibly
seeking out partners and so may decide whether to have a
joint venture, use local agents or employees who have a
good understanding of the Indian chocolate/confectionary
market.
● Consumer tastes and preferences need to be met not only
in terms of the actual flavour and packaging of chocolate
but also the appropriateness of its marketing campaigns.
Celebrity endorsement through Bollywood actors in India for
example, may be a way to combine a respect for culture with (12)
promotional methods to increase sales.
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 are
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 5–8 Accurate and thorough knowledge and understanding,

supported 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 9–12 Accurate and thorough knowledge and understanding,
supported throughout 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/or qualitative
information, and shows an awareness of competing
arguments/factors leading to a supported judgement.
Question
Indicative content Mark
Number
1(d) Knowledge 4, Application 4, Analysis 6, Evaluation 6

Marks for application and analysis include up to 2

marks for quantitative skills

Quantitative skills assessed:

QS2: calculate, use and understand percentages and
percentages changes
QS8: use and interpret quantitative and non-quantitative
information in order to make decisions

● A takeover occurs when one business buys over half the

shares in another business to gain control.

Thorntons
● Expediency, given access to more expertise, assets and
resources to enable an increase in production in the UK
without having to build new plant or recruit, employ and
train new staff
● Thorntons was sold for £112m which ought to be
affordable for FI given revenues of over £8bn (1.4% of
2015’s turnover). This may then help to maximize
shareholder wealth for FI.
● Strategically it would provide access to more sales for FI
through high street stores, in a market with more potential
for sales growth (worth £6bn)
● Could have been a useful longer term defensive strategy
to reduce the number of luxury chocolate competitors in
the UK so that it could increase the sales of FI
● However, Thorntons is struggling, possibly because retail
sales in its stores are not covering costs and supermarket
sales are competed against by other brands such as Nestle
or Mars. A takeover would therefore not necessarily
reverse these trends
● The cost of the Oltan Group may well have been greater,
especially given the size of the business and its annual
turnover of £600m

Oltan Group

● By purchasing the Oltan Group, FI may be able to reduce

its costs as it is undertaking backward vertical integration
with a supplier which removes an otherwise intermediary
profit mark-up.
● Ownership of the Oltan Group, may provide access to the
emerging Turkish market or other developing countries
which have a tradition of importing hazelnuts from Oltan
 ● Longer term profits may be higher because hazelnuts are a
key commodity for FI given that they are used in Nutella,
Kinder Bueno and its luxury FI chocolates.
● Having ownership of a hazelnut processor may increase
market dominance for FI for chocolates which contain
nuts, especially if the plant was invested in to be able to
process other nuts such as almonds or brazil nuts.
● However, FI may lack expertise or knowledge of the
hazelnut production process. This may therefore lead to
culture clashes resulting in diseconomies of scale

Possible recommendation

 It very much depends on the nature of the takeovers. If

either were ‘hostile’ there may be resentment from other
shareholders or employees which might make stakeholder
relationships and operations more difficult. In which case
the long term profitability for FI could suffer.
 If the Thorntons takeover had been ‘friendly’ because by
FI taking over the UK company, jobs were saved or indeed
the business, then this may be a better choice than the
Oltan Group. Labour productivity may therefore improve
and thus lead to better profits for FI in the short term

Examples of possible ‘MOPS’ recommendations

Market – The chocolate market is highly competitive and

therefore faced with competition from companies like Nestle and
Mars, by having another manufacturing company in its portfolio,
Ferrero International might be more able to take advantage of
economies of scale and so reduce its average costs to make it
more competitive

Objectives – Maximising revenues and minimising costs

determine profitability. Therefore by taking over a supplier (Oltan
Group) production costs should be reduced giving Ferrero
International and opportunity to increase profits

Product – Hazlenuts are only one ingredient in a limited range of

products, therefore unlike cocoa, the ability to save costs in this
area might not be too significant to production costs as a whole

Situation – The chocolate market is becoming increasingly

competitive on an international level (takeover of Cadburys by
Kraft, then becoming Mondelez International) so it may be less
risky and more profitable in the long run to purchase suppliers of
ingredients, especially given the Oltan Group’s monopoly position.
Under Ferrero International, high prices could be charged to other
chocolate manufacturers like Nestle to support Ferrero
International’s long-term profits. (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(s) and/or consequence(s)/effect(s).
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 cause(s) and/or consequence(s)/
effect(s) 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 and thorough knowledge and understanding,
supported throughout by relevant and effective use of
the business behaviour/context.
Uses developed chains of reasoning, so that cause(s) and/or
consequence(s)/effect(s) are complete, showing an
understanding of the question. Arguments are well
developed.
Quantitative 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 use of relevant and effective use
of the business behaviour/context.
Uses well-developed and logical, coherent chains of
reasoning, showing a range of cause(s) 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
recommendation(s).
Question
Indicative content Mark
Number
2(a) Knowledge 2, Application 2, Analysis 2, Evaluation 2

● Quality control refers to traditional methods of

checking that final products are of a good enough
standard, capable of doing what they were intended to
do

Benefits:
● For chocolate this might mean sample inspections to
check the different shapes of chocolates, the taste, the
packaging before being sold to suppliers/consumers
● It should prevent faulty chocolates such as Wispas
(misshapes, discoloured, damaged) reaching the
customer and so prevent a loss of reputation and a fall
in sales in other chocolates like Flakes.
● It avoids costly returns of chocolates through the
retailer, which could prove particularly problematic if
sold as a gift for Easter.

Possible counter-balance

● Quality control does not attempt to find out why the

chocolates were misshaped or damaged as it is simply
a way of preventing faulty chocolates being sold to the
consumer such as TQM
● The process reinforces the idea that mistakes in the
chocolate manufacturing process are unavoidable
which may cause the production staff to be
complacent as its is the responsibility of the quality
controller (quality assurance) to find the faulty (8)
chocolates/packaging
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 effects(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 throughout 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(b) Knowledge 2, Application 2, Analysis 3, Evaluation 3

● CSR involves a business paying attention to the needs and

preferences of all stakeholders, not just the shareholders
who own the business. It includes customer care, staff
working conditions, pay, product quality and value for
money, impact of the business on the environment

Positive values of CSR:

● For Cadbury, looking after employees (gift of chocolates,
paying at least the living wage, providing housing and
even amenities like schools), supporting the Government’s
voluntary obesity policies, has resulted in providing a
quality chocolate bar because of improved employee
motivation
● By supporting social initiatives, the reputation of
Cadburys should improve and so consumers may be
more likely to buy

Potential counterbalance

● Financial considerations are more important than CSR such

as using value for money ingredients (sultanas) in Fruit &
Nut bars to reduce costs
● Chocolate is often an impulse purchase, so consumers are
not going to be discerning towards a chocolate
manufacturer which exercises CSR
● Consumers may be seeking lower prices, for example
during a recession, so will not be affected by the Cadbury
decision not to use FairTrade cocoa beans. Indeed, the
Cocoa Life farmer cocoa beans may be better quality, as
might be the non-FairTrade sugar

Possible judgement

● CSR may reduce profitability because costs increase

(cocoa farmers paid £1,600 per tonne) which may reduce
opportunities for product development and so limit
consumer choice of chocolates in the future.
● CSR is a long-term attitude to operating a business, which
may improve long-term profitability in a highly competitive
chocolate market by providing a means of differentiation
(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 are
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 by relevant and effective use of the business
behaviour/context.
Analytical perspectives are presented, with chains of
reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using
quantitative and qualitative information, though unlikely to
show the significance of competing arguments.

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

supported 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 qualitative information, and
shows an awareness of competing
arguments/factors leading to a supported
judgement.
Question Indicative content Mark
Number
2 (c) Knowledge 2, Application 2, Analysis 4, Evaluation 4

Marks for application and analysis – include up to 6 marks

for quantitative skills

Quantitative skills assessed:

QS6: calculate investment appraisal outcomes and interpret

results
QS8: use and interpret quantitative and non-quantitative
information in order to make decisions
QS9: interpret, apply and analyse information in written,
graphical and numerical forms

Indicative content (quantitative skills)

● Payback =

Cumulative Cash Flows:

Year 1 = 20
Year 2 = 45
Year 3 = 75

= 3 years (workings not required)

● NPV = £13.81m (workings not required)

Net cash flows £m Discount rate DCF £m

20 .909 18.18
25 .826 20.65
30 .751 22.53
22 .683 15.03
20 .621 12.42
Total 88.81
NPV 13.81

● It takes exactly three years to pay back the £75m

investment which in business is very favourable;
usually capital investments are longer term and take 10
years or more to pay for themselves. In the highly
competitive chocolate market, earning back an
investment quickly can mean that that any profits
which follow can be used for other investments such as
new plants in emerging economies

● The NPV is positive (plus £13.81m) which given that

the discount rates were set at 10%, is very favourable,
especially given that training costs need to be afforded
and pay increases of 2% are to be paid.
Possible counter-balance:

● All investment appraisal methods assume that predicted

cashflows will be achieved. Should a new chocolate
competitor enter the market or Cadbury production of
chocolate suffer from a lack of cocoa beans due to drought
in Africa, this may not be the case.
● A senior manager at Cadbury may have manipulated
the forecast data so as to promote the Mondelēz
International investment in the Birmingham factory
in order to save their career
● 10% is a high discount rate when compared to the present
based rate of 0.25% (2017) therefore a lower discount
rate will give you a higher NPV

Possible judgement

● Focussing on the financial values of the £75m investment

may miss out on the qualitative issues. The pros and cons
of the project should be considered within the context of
corporate objectives, CSR, market position, long term
survival – the latter may be very appropriate given the
investment enables better production by ‘state of the art’
production lines.
● Given that Cadbury chocolate is worth £4bn in sales to
Mondelēz International, rising to £6bn by 2020, and
that the chocolate products have enjoyed consumer
loyalty for many years, it is worth the investment. Also
especially given the growing demand for Dairy Milk,
(12)
Oreos and Marvellous Creations.
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 are
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 5–8 Accurate and thorough knowledge and understanding,

supported 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 9–12 Accurate and thorough knowledge and understanding,
supported throughout 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/or qualitative
information, and shows an awareness of competing
arguments/factors leading to a supported judgement.
Question
Indicative content Mark
Number
2 (d) Knowledge 4, Application 4, Analysis 6, Evaluation 6

 Competitive advantage is a feature of a business and/or its

products that enable it to compete effectively with rival
producers/products.

 If the competitive advantage is based on cost, this may be

down to achieving lower costs than competitors due to
purchasing economies of scale of cocoa beans or sugar or
mass marketing techniques, such as TV advertising
 The competitive advantage may be down to differentiation
because of the quality of the chocolate. This may have
been enabled by using high value ingredients, in batch
production or made by hand by highly trained and skilled
staff

Cost competitiveness

● Cadbury have adopted Coco Life instead of Fairtrade to

save on costs.
● Cadbury have managed to seek out low cost production
locations in emerging economies (offshoring in Argentina,
Brazil and India) which has enabled price competitiveness
for chocolate products like Dairy Milk.
● The outsourcing of the production of some chocolate bars
to low cost labour countries such as Poland could prevent
a rise in prices caused by higher costs of ingredients like
sugar caused by the fall in the £ sterling
● Cadbury could use cost leadership pricing strategies to
target market segments that are most price-sensitive, for
example by selling multipacks of CDM aimed at families on
a limited budget who buy from supermarkets
● Productivity gains could be achieved by using more
automation thanks to the £75m investment in the
modernisation at the Birmingham plant which might
enable 24 hour production of products such as Crème Eggs
in the run up to Easter.

Product differentiation

● Building a brand or reputation, which might be achieved

through the promotion of the Cocoa Life partnership with
farmers in Ghana. This CSR strategy should increase sales
to the more discerning consumer, though it is less ethical
that Fair Trade schemes
● Improve the quality of the chocolate by using more cocoa
solids and cocoa butter so that customers who may be
prepared to pay a premium price may help boost revenues
above the current £4bn
 ● Ensuring that the chocolate is reliable in terms of taste,
colour, safe to eat. The Cadbury salmonella outbreak in
2006 caused sales of certain chocolate products to fall by
as much as 20%
● Enhance the core product through augmentation, such as
the Cadbury World experience which serves to promote
the image of Cadbury and its products to families and
schools
● Advertising or promotion, such as by the £10m a year
sponsorship of ITV’s Coronation Street from 1997-2006.
This had more impact than 30 second TV adverts

Possible recommendations

● Choice of strategy depends very much on the economic

climate/ownership e.g. Mondelēz International. Cost
competiveness strategies may be more successful as the
market becomes more sensitive to rising prices due to a
shortage of cocoa or as real incomes fall given lower than
inflation pay increases
● As incomes in emerging economies like India rise, then
product differentiation strategies may be more appropriate
to attract those consumers who may buy less frequently
the more indulgent type of chocolate rather than on the go
snack bars. In which case Cadbury could improve its
position in the global market by advertising itself as a
lifestyle product, like Coca Cola.

Examples of possible ‘MOPS’ recommendations

Market - The chocolate market is highly competitive, (oligopoly)

dominated by the Mars and Nestle. Cadbury, as part of Mondelez
International, might gain more sales in new markets like India
and Brazil if it extended consumer choice in these countries
through product differentiation

Objectives – Product differentiation is what extends consumer

choice, particularly important for impulse buys like chocolate. So
by having a range of products, total sales of Cadbury products
like Flake, Twirl and CDM should add up to provide a competitive
advantage given the higher probability of consumer sales over,
say, Mars products.

Product - World commodity prices for things like cocoa are

rising. So, cost competitiveness is critical to competitive
advantage in order to offset these significant rising costs over
rivals like Nestle.

Situation - Choice of strategy depends very much on the

economic climate. Cost competiveness strategies may be
more successful as the market becomes more sensitive to
rising prices due to a shortage of cocoa or as real incomes fall
given lower than inflation pay increases (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(s) and/or consequence(s)/effect(s).
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 cause(s) and/or consequence(s)/
effect(s) 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 and thorough knowledge and understanding,
supported throughout by relevant and effective use of
the business behaviour/context.
Uses developed chains of reasoning, so that cause(s) and/or
consequence(s)/effect(s) are complete, showing an
understanding of the question. Arguments are well
developed.
Quantitative 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 use of relevant and effective use
of the business behaviour/context.
Uses well-developed and logical, coherent chains of
reasoning, showing a range of cause(s) 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
recommendation(s).

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