Business Management SL
Business organisation and environment — Unit 1
- 1.
A company is deciding whether to close a local factory and move production abroad to reduce costs. Identify two stakeholder groups affected by this decision, and explain how their interests might conflict.
[3 marks] · no calculator - 2.
Marking analysis: A learner attempts the following task: “A company is deciding whether to close a local factory and move production abroad to reduce costs. Identify two stakeholder groups affected by this decision, and explain how their interests might conflict.” Their response addresses only this point: “Identifies shareholders/owners as one stakeholder group, whose interest is typically in reducing costs and increasing profit, favouring the move.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 3.
Distinguish between internal stakeholders and external stakeholders, giving one example of each for a typical company.
[2 marks] · no calculator - 4.
Marking analysis: A learner attempts the following task: “Distinguish between internal stakeholders and external stakeholders, giving one example of each for a typical company.” Their response addresses only this point: “Defines internal stakeholders as individuals or groups who work directly within the organization. Gives a valid example, such as employees, managers, or owners.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 5.
Using a PEST(LE) framework, explain how a change in government regulation (a political/legal factor) could affect a business, using a specific example.
[3 marks] · no calculator - 6.
Marking analysis: A learner attempts the following task: “Using a PEST(LE) framework, explain how a change in government regulation (a political/legal factor) could affect a business, using a specific example.” Their response addresses only this point: “States that political/legal factors are part of a business's external environment, over which the business has little or no control.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 7.
Distinguish between a company's mission statement and its objectives, and explain why clear objectives should be SMART.
[3 marks] · no calculator - 8.
Marking analysis: A learner attempts the following task: “Distinguish between a company's mission statement and its objectives, and explain why clear objectives should be SMART.” Their response addresses only this point: “Defines a mission statement as a broad, often inspirational statement of a company's overall purpose and core values.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 9.
Explain the difference between organic (internal) growth and inorganic (external) growth as strategies for a business to expand, giving one example method of each.
[2 marks] · no calculator - 10.
Marking analysis: A learner attempts the following task: “Explain the difference between organic (internal) growth and inorganic (external) growth as strategies for a business to expand, giving one example method of each.” Their response addresses only this point: “Defines organic growth as expansion achieved using the company's own internal resources and operations. Gives a valid example, such as opening new branches, developing new products, or expanding into new domestic markets.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 11.
Explain what is meant by corporate social responsibility (CSR), and suggest one potential business benefit of a company adopting strong CSR practices, beyond simply 'being ethical'.
[2 marks] · no calculator - 12.
Marking analysis: A learner attempts the following task: “Explain what is meant by corporate social responsibility (CSR), and suggest one potential business benefit of a company adopting strong CSR practices, beyond simply 'being ethical'.” Their response addresses only this point: “Explains CSR as a company voluntarily taking responsibility for the social and environmental impact of its operations, going beyond its minimum legal obligations.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 13.
Distinguish between a sole trader and a partnership as forms of business ownership, and state one advantage a partnership has over a sole trader.
[3 marks] · no calculator - 14.
Marking analysis: A learner attempts the following task: “Distinguish between a sole trader and a partnership as forms of business ownership, and state one advantage a partnership has over a sole trader.” Their response addresses only this point: “Defines a sole trader as a business owned and run by one person, who typically has unlimited liability for the business's debts.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 15.
Explain one advantage and one disadvantage for a business of converting from a private limited company to a public limited company (going public, or 'floating' on a stock exchange).
[2 marks] · no calculator - 16.
Marking analysis: A learner attempts the following task: “Explain one advantage and one disadvantage for a business of converting from a private limited company to a public limited company (going public, or 'floating' on a stock exchange).” Their response addresses only this point: “Explains a valid advantage, such as the ability to raise much larger amounts of capital by selling shares to the general public, supporting faster expansion.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 17.
A bakery owner is considering opening a second branch. Explain how a SWOT analysis could help with this decision.
[2 marks] · no calculator - 18.
Marking analysis: A learner attempts the following task: “A bakery owner is considering opening a second branch. Explain how a SWOT analysis could help with this decision.” Their response addresses only this point: “States that strengths and weaknesses are internal factors (e.g. loyal customers, limited capital) while opportunities and threats are external (e.g. a growing neighbourhood, a new competitor).” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 19.
Explain how technological change could present both an opportunity and a threat to a traditional high-street retailer.
[2 marks] · no calculator - 20.
Marking analysis: A learner attempts the following task: “Explain how technological change could present both an opportunity and a threat to a traditional high-street retailer.” Their response addresses only this point: “Explains the opportunity, such as selling online to reach new customers and using data to personalise marketing.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 21.
Distinguish between a private sector business and a public sector organization in terms of ownership and main objective.
[2 marks] · no calculator - 22.
Marking analysis: A learner attempts the following task: “Distinguish between a private sector business and a public sector organization in terms of ownership and main objective.” Their response addresses only this point: “States that private sector businesses are owned by individuals or shareholders and typically aim to make profit.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 23.
Explain what is meant by a social enterprise, and explain one challenge it faces compared with a purely profit-seeking firm.
[2 marks] · no calculator - 24.
Marking analysis: A learner attempts the following task: “Explain what is meant by a social enterprise, and explain one challenge it faces compared with a purely profit-seeking firm.” Their response addresses only this point: “Explains that a social enterprise trades goods or services mainly to achieve social or environmental aims, reinvesting most surplus in that mission.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 25.
Explain one benefit to a franchisor of expanding through franchising rather than opening its own outlets.
[2 marks] · no calculator - 26.
Marking analysis: A learner attempts the following task: “Explain one benefit to a franchisor of expanding through franchising rather than opening its own outlets.” Their response addresses only this point: “Explains that franchisees supply much of the capital for new outlets, so the franchisor can grow faster with less of its own investment.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 27.
Explain how diseconomies of scale could limit the growth of a large business.
[3 marks] · no calculator - 28.
Marking analysis: A learner attempts the following task: “Explain how diseconomies of scale could limit the growth of a large business.” Their response addresses only this point: “Defines diseconomies of scale as a rise in average cost when a firm grows beyond its efficient size.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 29.
Explain two reasons why a business owner might choose to keep the business small rather than grow it.
[2 marks] · no calculator - 30.
Marking analysis: A learner attempts the following task: “Explain two reasons why a business owner might choose to keep the business small rather than grow it.” Their response addresses only this point: “Explains a valid reason such as retaining personal control and a close relationship with customers and staff.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator