Practise Business and its Environment through enterprise, ownership, size, objectives, stakeholders and external influences, applying each idea to the organisation in the case.
Analyse one way that a business may be affected by a dynamic business environment.
Analyse one way that a business may be affected by a dynamic business environment.
Indicative content
Responses may include:
AO1 Knowledge and understanding
Effects of a dynamic business environment include:
- increased / decreased demand.
- increased / decreased costs.
- increased / decreased revenue.
- increased / decreased profit.
- increased / decreased competition.
- increased / decreased market share.
- increased uncertainty / instability.
AO2 Application
- changing customer needs for products.
- technology advances / production possibilities.
- government policy e.g. treatment of employees, type of product, ethical behaviour.
- competitor actions e.g. pricing / promotion / product development.
- external environment - inflation, interest rates.
- difficult to forecast future inventory needs.
- must change and adapt.
4
AO3 Analysis
- changing customer needs might affect demand leading to innovation, product development, extension strategies and altering production.
- regular market research needed to adapt to changing demand therefore increasing costs and possibly profit.
- technological changes e.g. availability and speed of the internet can make it easier to find suppliers and sell across the world.
- new policies can change business behaviour which may alter objectives and production methods.
- economic conditions affect spending power and choice of products chosen e.g. needs vs luxuries / cheap vs expensive.
- increase or decrease in competition may alter pricing strategy and therefore profit.
- managers will need to change some of their decisions about inputs, the transformation process or the outputs they produce.
- they might switch production to another country;
become more capital intensive;
sell products to other countries.
- changes may have cost implications for the business and affect revenue and profits.
Accept all valid responses.
Analyse one responsibility to a business of an employee as a stakeholder.
Analyse one responsibility to a business of an employee as a stakeholder.
Indicative content
Responses may include:
AO1 Knowledge and understanding
- To work effectively / productively.
- Meet the business' clear expectations.
- To fulfil terms of contract of employment.
- To follow business policy and regulations.
- Not damage the business reputation.
- Not give/sell employer's trade secrets to competitors.
- Being honest.
- An employee has the responsibility to perform according to the terms of contract of the employment. (1 mark × × )
4
AO2 Application
- Examples may be given in the context of different employees - managers / shopfloor workers.
- Effective and productive employees will perform the duties of their position to the best of their ability.
- Come to work when expected, manage their time well and be a positive part of the team.
- Following company policies and protocols leads to fewer accidents and legal issues.
- Consult managers with any questions or problems to get the job right first time and avoid costly waste.
- Accept responsibility for their own mistakes to prevent a blame culture affecting working relations.
- Work for the good of the business to help it maintain its position in the market.
- Developed application - an employee has a responsibility to consistently follow the policies and procedures of a business and maintain the reputation of that business. (2 marks ×2 )
- Limited application- an employee has a responsibility to always be punctual when attending work. (1 mark ± ± )
AO3 Analysis
- Ensures consistency, reduces risk, achieves high standards therefore helps a business achieve its objectives.
- Improves efficiency and performance therefore the business will have effective use of resources.
- Responsible employees give a business the ability to compete well and improve market share.
- Reduces the risk of mistakes, waste, accidents, legal issues - all of which will prevent the success of the business.
- Developed analysis - if an employee remains loyal to a business and does not share internal production secrets with competitors the business will likely remain very competitive and continue to achieve high levels of profitability. ( 2 marks □ × 2 )
- Limited analysis - when an employee continually achieves high standards of work performance the business will prosper. (1 mark □ × )
Accept all valid responses.
Analyse one way in which ethics may influence the activities of a business.
Analyse one way in which ethics may influence the activities of a business.
Table C
Follow the point-based marking guidance at the top of this mark scheme and use this table to give marks for each candidate response.
Indicative content
Responses may include:
A01 Knowledge and understanding
- The moral principles that guide the way a business behaves - distinguishing between 'right' and 'wrong' and then making the 'right' choice.
4
AO2 Application
- The objectives of a business may include survival, growth, market domination, profit and the pursuit of any of these may well involve ethical dilemmas.
- Ethical decisions will be required when pressures or demands develop which suggest that business performance can be improved through unethical actions.
AO3 Analysis
- A business may decide not to engage in unethical practices such as employing child labour, using inferior raw materials, engaging in questionable advertising or promotion activities.
- A business could reject cheap production methods that pollute the environment and add to social costs.
- A business could decide to be more responsible and avoid locating in countries with low inferior employment conditions.
- A business could avoid supplying or promoting products that might damage health.
- A business could avoid exploiting suppliers and develop strong, more trusting partnerships.
- A business could subscribe to corporate socially responsible practices and objectives.
- Such ethical decisions and practices will likely build and maintain a positive reputation and prevent financial and legal problems.
- A commitment to ethical business activities will enrich the business culture and encourage more productive relations between customers, managers, and employees.
Accept all valid responses.
AO1
AO2
AO3
Level
AO1 Knowledge and understanding
2 marks
AO2 Application
2 marks
AO3 Analysis
4 marks
Description
Description
Description
2
3-4 marks
Developed analysis
- Developed analysis that identifies connections between causes, impacts and/or consequences of two points.
- Developed analysis that identifies
[4 marks] connections between causes, impacts and/or consequences of one point. [3 marks]
1
1-2 marks
- Knowledge of two relevant points is used to answer the question.
- Knowledge of one relevant point is used to answer the question.
[2 marks]
[1 mark]
1-2 marks
- Application of two relevant points to a business context.
- Application of one relevant point to a business context.
[2 marks]
[1 mark]
1-2 marks
Limited analysis
- Limited analysis that identifies connections between causes, impacts and/or consequences of two points.
- Limited analysis that identifies
[2 marks] connections between causes, impacts and/or consequences of one point.
[1 mark]
0
0 marks
No creditable response.
0 marks
No creditable response.
0 marks
No creditable response.
Table E
Use this table to give marks for each candidate response for Questions 5(b) and 6(b).
Level
AO1 Knowledge and
understanding
2 marks
AO2 Application
2 marks
AO3 Analysis
2 marks
AO4 Evaluation
6 marks
Description
Description
Description
Description
3
5-6 marks
Developed evaluation in context
- A developed judgement/ conclusion is made in the business context.
- Developed evaluative comments which weigh up some key arguments in the business context.
2
2 marks
Developed knowledge of relevant key term(s) and/or factor(s) is used to answer the question.
2 marks
Developed application of relevant point(s) to the business context.
2 marks
Developed analysis that identifies connections between causes, impacts and/or consequences.
3-4 marks
Developed evaluation
- A developed judgement/ conclusion is made.
- Developed evaluative comments which weigh up some key arguments.
1
1 mark
Limited knowledge of relevant key term(s) and/or factor(s) is used to answer the question.
1 mark
Limited application of relevant point(s) to the business context.
1 mark
Limited analysis that identifies connections between causes, impacts and/or consequences.
1-2 marks
Limited evaluation
- A judgement/conclusion is made with limited supporting comment/ evidence.
- An attempt is made to weigh up the arguments.
0
0 marks
No creditable response.
0 marks
No creditable response.
0 marks
No creditable response.
0 marks
No creditable response.
9609/01
SPECIMEN
For examination
from 2023
EITHER
Analyse one way in which conflict between stakeholders may affect a business.
Analyse one way in which conflict between stakeholders may affect a business.
Indicative content
Responses may include:
NOTE: Stakeholder conflict may be between different stakeholder groups e.g. managers and shareholders, or between members of the same stakeholder group e.g. employee vs employee.
AO1 Knowledge and understanding
Conflict may affect a business in the following ways:
- Demotivated workers
- Reduced profit
- Slow decisions
- Industrial action
- Damage to reputation
- Conflicting objectives
- Conflict between different stakeholders may lead to industrial action. (1 mark □ × 1)
4
AO2 Application
- Different stakeholders in a business may have different expectations - resulting in conflict - management want to invest in more capital equipment - workers fear for their jobs.
- Different stakeholders may require a business to operate in different ways - employees will focus on wages/salaries and working conditions while directors may favour higher dividends to attract more investment.
- Potential for conflict is real - so many stakeholders internal and external with different agendas.
- Developed application - managers may wish to automate production in search of a more efficient process of production - employees/workers may fear for their jobs and be less motivated. (2 marks ± 2 )
- Limited application - workers may strike in order to preserve their jobs. (1 mark ± 1)
AO3 Analysis
- Shareholders - will focus on bottom line - short-term profits - conflict with long term planning concerns of senior management.
- Core business purpose - some stakeholders such as government, community, overseas workers may seek to have CSR as a business objective - other stakeholders will be concerned at the cost - shareholders concerned at a drift from commercial considerations - the business of business should be business not social support.
- Conflict between employees and owners/managers - aim of management is to contain cost increases arising from increase wages/salaries - workers and unions threaten strike.
- Local community may object to business decisions - new factory - impact on the local environment.
- Customers want lower prices - impact on quality of product as viewed by the business.
- Government increases taxes on businesses/employees - business does not absorb the tax, puts up prices and customers become critical and threaten to switch to other providers.
- Developed analysis - shareholders will likely focus on the bottom line in pursuit of profits and dividends which may have consequences for long term business planning for a business that requires to build up internal financial resources for growth investment. Shareholders will likely oppose proposals for more retained earnings. (2 marks L2)
- Limited analysis - shareholders will likely only focus on the bottom line and seek profit maximisation regardless of the effect on other stakeholders. (1 mark □ L1)
Accept all valid responses.