CAIE A-Level Business AS 1 Business and Its Environment Questions

Define the term quaternary sector.

Indicative content

Responses may include:

AO1 Knowledge and understanding

Clear understanding 2 marks

- economic activity based on the intellectual or knowledge-based economy

- consists of industries providing information services, such as computing, ICT (information and communication technologies), consultancy (offering advice to businesses) and R&D (research, particularly in scientific fields)

Partial understanding 1 mark

- sector of production

- 4th economic sector

- subset of tertiary sector

- ICT/R&D/computing

Accept all valid responses.

Explain one factor of production needed for business activity.

Indicative content

Responses may include:

AO1 Knowledge and understanding - 1 mark for identifying one factor of production needed for business activity. Use of any factor below as an input into the transformation process

- land

- labour

- capital

- enterprise

AO2 Application - 2 marks ${ }^{\Delta=\text { Fe }}$ for a developed explanation of one factor of production needed for business activity.

1 mark ${ }^{5 * e}$ for a limited explanation of one factor of production needed for business activity.

- choosing the location of the business, e.g. for shops, to build a factory, natural resources in the land such as water, oil, fields, woods. Land to fish, grow crops, drill for oil, mine

- people that work in the business such as teachers, joiners, builders or doctors. Employees to work in the business, skilled and unskilled, their quality and experience

- the money and equipment such as machinery or delivery trucks, used to produce the product or service

- set of skills that develops new ways of doing things or new things to do. Ability to be creative and innovative, having an idea of how to use the land, labour and capital to make a profit, to create a business/product which will succeed in the market

- start a business/risk taking/new ideas

Accept all valid responses.

PUBLISHED

Explain one way to measure the size of GT.

Indicative content

AO1 Knowledge and understanding

- Knowledge of an appropriate way to measure the size of a business;
revenue, number of outlets, number of employees, market share, number of customers, market capitalisation capital employed, area/space etc.

Do not allow profit - which is a measure of success or performance, but not size.

No further marks can be gained without knowledge and understanding

AO2 Application

Limited application ${ }^{\triangle p \mathrm{~F}}$, applies knowledge to GT once.

percentage change).

1(b)(ii)

\multirow{7}{*}{- Use of data related to GT to show the size of the business (this data can be used more than once)

& 2020 & 2021 & 2022

Sales revenue ($m) & 3.4 & 3.2 & 2.8

Number of

employees

54

55

Profit ($m)

0.9

0.3

0.2

Number of visitors

(m)

0.8

0.8

0.65

\end{tabular}

- GT includes a museum, tours, a roller coaster, restaurant, and gift shop

- Some employees previously worked in the gold mine

- Some employees are tour guides and customer service representatives

Accept all valid responses.
\end{tabular}}

1(b)(ii)

Evaluate the importance to the ongoing success of GT of developing intrapreneurship.

&

1(d)

Indicative content
AO1 Knowledge and understanding
Knowledge of intrapreneurship (max $2{ }^{\mathrm{a}} \mathrm{s}$ ), including:
- Intrapreneurship is where the workers come up with innovative ideas using enterprise to increase the profitability of the
business. The business may reward the intrapreneur for their ideas.
- Allows employees to act like entrepreneurs / introduce enterprise within the business (employed).
- The qualities of intrapreneurship, including;
passion, talent, curiosity, motivation, resourcefulness, networking,
confidence, knowledge and experience.
- the role of intrapreneurship, including: problem solving, idea generation, identify opportunities, overcome threats,
empowerment.
No further marks can be gained without knowledge and understanding
AO2 Application
Limited application ${ }^{\Delta \mathrm{FB}}$ applies knowledge of intrapreneurship to GT once.
Developed application ${ }^{\mathrm{App}}+{ }^{\mathrm{App}}$ applies knowledge of intrapreneurship to GT twice.
- Link to leisure markets, such as days out and entertainment.
- Link to elements specific to GT's intrapreneurship, such as:
- some employees used to work in the gold mine - good knowledge about the theme of GT
- some employees are younger workers on flexible contracts
- falling sales ($3.4m in 2020 to $2.8m in 2022 - 17.65\% fall)
- fewer employees in 2022 than 2021 - loss of intrapreneurship skills
- falling profit ($0.9m in 2020 to $0.2m in 2022-77.78\% fall) - link to ability to fund ideas
- fall in visitors due to;
not fun, too high prices.
AO3 Analysis
Limited analysis - candidate shows one link in the chain of analysis.
Developed analysis - candidate shows two or more links in the chain of analysis.
Advantages of intrapreneurship to GT may include:
- Using GT's own resources to find solutions to their falling visitor numbers may be cheaper than external management
consultants - lower GT's cost and increase profit.
- GT workers may provide better / more effective solutions to GT's problems - more likely to increase visitor numbers.
- Use of the mine's previous employees for their intrapreneurial ideas may be more likely to improve the business -
increase visitor numbers.
- Asking for employee involvement may increase the motivation of the staff - increased productivity/sales revenue,

1(d)

Disadvantages of intrapreneurship to GT may include:

- GT's employees (especially the younger workers on flexible contracts) may not have the experience and/or knowledge to help GT increase visitor numbers - opportunity cost of spending time on tasks other than their main function.

- GT's employees may not provide adequate solutions which may not increase visitor numbers - GT may make a loss in the future.

- GT needs a quick solution (because profit is likely to become loss in the near future) and intrapreneurship may not provide this - visitor numbers may not increase leading to GT making a loss or not surviving.

- GT already has two possible solutions (lower price and increase fun of the park), so a focus on intrapreneurial ideas may waste time - opportunity cost.

AO4 Evaluation

Limited evaluation - unsupported judgement and/or a weak attempt at evaluative comment

Developed evaluation E - supported judgement and/or reasonable evaluative comment

Developed evaluation in context ${ }^{\text {EE }}$ - supported judgement in context and/or reasonable evaluative comment in context.

- A judgement about the likely role of intrapreneurship in the ongoing success of GT.

- What the judgement might depend upon;
the timeframe that GT must find a solution to their falling visitor numbers, the ability/skill of GT's workers, the ability/skill of Kayo to utilise the intrapreneurial skills of GT's employees, the validity of GT's previous primary market research, the findings of the secondary market research etc.

- Weighing up of the arguments for the role of intrapreneurship to the ongoing success of GT.

Accept all valid responses.

1(d)

Exemplars for awarding evaluation