Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of the
points that candidates may make but this does not imply that any of these must
be included. Other relevant points must also be credited.
QS: QS2, QS5, QS8 and QS9
Knowledge, Application, Analysis, Evaluation - indicative content
- Stakeholders are groups or individuals that have an interest in the
actions of a business such as employees, owners, customers, suppliers
and the local community
- There could be winners and losers from the new Starbucks Pickup
concept
- The shareholders of Starbucks could benefit from this new concept as it
could provide customers with another channel by which they can
purchase Starbucks products thus increasing sales
- Extract G shows how the shareholders of Starbucks have been
negatively affected with the operating margin falling to (14.4%)
therefore this strategy could bring in much needed revenue into
Starbucks
- The shares in Starbucks did increase after the news of the expansion of
the Starbucks Pickup service so shareholders may see the value of their
investment increase in the long term
- Employees could benefit from this new concept as it could provide job
security at a time of falling sales if the new concept is successful
- Customers might be positively affected by the new Starbucks Pickup
service as it offers an alternative way to purchase Starbucks products
and could save time by using the app
- Suppliers to Starbucks might see an increase in the amount of
inventory if Starbucks sees an increase in sales due to the success of
the new concept
- However, the new Starbucks Pickup concept may result in fewer
employees being needed to work in the stores as more customers pre-
order their drinks and fewer employees are needed overall
- Some employees may need to be retrained to use the new app and the
handheld point-of-sale devices adding to the cost of the service
- Some customers do not like to use apps and prefer to use existing
distribution channels with personal interaction with the barista so may
lose customers
- Starbucks will need to invest into further developing the technology for
the app, adapt stores to be able to pick up pre-ordered drinks and
provide training for existing employees at a time when it is currently
facing a huge drop in revenue and profit
- There may be an environmental impact of the new service if customers
are unable to use their own cups for refills with the Pickup service
- The overall impact on Starbucks stakeholders will depend on whether
Starbucks can make this success and it benefits all of its stakeholder
groups and not just some
Level
Mark
Descriptor
0
No rewardable material.
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 causes 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 and thorough 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 well 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.
Question
Evaluate whether organic growth is the best method for Spotify to use when
planning for further expansion.
