CAIE A-Level Business A2 7.3.1 Leadership Topic Practice

Note:

- If more than two leadership qualities are referred to, reward the best two.

2

Indicative content

Responses may include:

AO1 Knowledge and understanding

Definition of relevant terms (max K1 mark):

- Leadership is the art of motivating people towards achieving a common goal.

- Theories of leadership include trait, behavioural and contingency theory.

Knowledge of leadership qualities (max K2 marks):

- Leadership qualities include:

- Desire to succeed

- Risk taker

- Confidence, self-belief

- Innovative, creative

- Decisive - decision making skills

- Being inspirational

- Honesty and integrity

- Being a good communicator

- Empathy and emotional intelligence

- Leadership styles, such as democratic

- Ability to delegate

AO2 Application

Max one ${ }^{\text {APP }}$ for application for the first element and max one ${ }^{\text {APP }}$ for application for the second element.

- Qualities illustrated in the case:

- Drive and determination, self-belief - Frederico mortgaged his house to start the business and gave up his role as an executive.

- He communicates effectively and shows charisma - persuaded a venture capital company to invest in his idea and persuaded unions to accepts changes in the factory including the loss of jobs.

- Innovative/creative. - it was Frederico's idea to produce sustainable shoes from bamboo. He spotted a gap in the market.

2

AO3 Analysis

Limited analysis AN - candidate shows one link in the chain of analysis.

Developed analysis L2AN - candidate shows two or more links in the chain of analysis.

- Frederico demonstrates self-belief, being willing to give up his executive role and mortgage his house to set up the business. This has enabled the business to finance the investment in product development to bring Frederico's idea to market. AN

- Creativity and innovation have given the business a competitive edge AN by developing a product that is unique and meets customer demands for a shoe that is lightweight and comfortable to wear in a hot climate. This increases sales. L2 AN

- Frederico spotted a gap in the market which enables CQ to face less direct competition AN and gain control over price to charge a premium price and make more profit. L2 AN

- Frederico's communication skills have encouraged the unions and workers to accept change which will result in job losses. His vision for the business may inspire loyalty. This negotiation will help CQ solve its operational problems and reduce costs AN resulting in a higher profit margin. L2 AN

Accept all valid responses.