GCSE (9–1)

Business

J204/02: Business 2: operations, finance and influences on

business

General Certificate of Secondary Education

Mark Scheme for June 2019

Oxford Cambridge and RSA Examinations

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is invested back into the establishment to help towards the development of qualifications and
support, which keep pace with the changing needs of today’s society.

This mark scheme is published as an aid to teachers and students, to indicate the
requirements of the examination. It shows the basis on which marks were awarded by
examiners. It does not indicate the details of the discussions which took place at an
examiners’ meeting before marking commenced.

All examiners are instructed that alternative correct answers and unexpected approaches in
candidates’ scripts must be given marks that fairly reflect the relevant knowledge and skills
demonstrated.

Mark schemes should be read in conjunction with the published question papers and the
report on the examination.

© OCR 2019
J204/02 Mark Scheme June 2019

Annotations

Annotation Meaning

Analysis (AO3a)

Application (AO2)
Benefit of doubt

Blank page

Cross

Evaluation (AO3b)

K Knowledge (AO1a)

Not answered question

No use of text

Own figure rule

Repeat

Noted but no credit given

Too vague

Tick

U Understanding (AO1b)
J204/02 Mark Scheme June 2019

Question Answer Marks Assessment Objective

SECTION A
1 A 1 1b
2 D 1 2
3 B 1 1a
4 C 1 1a
5 C 1 2Q
6 D 1 1a
7 B 1 1b
8 C 1 2Q
9 B 1 1a
10 B 1 2Q
11 D 1 2
12 D 1 1b
13 A 1 2Q
14 B 1 2
15 B 1 1b PS
J204/02 Mark Scheme June 2019

Question Answer Mark Guidance

Answers may include:
16 (a) (i) 2 One mark for a correct
 Sustainability A01a 2 identification
 Waste disposal
 Pollution Only allow one mark for each ‘type’ of
 Climate change consideration or example of each. For
example, do not reward waste disposal
AND recycling.

(ii) Understanding may include:

Recycling, ‘green business’, renewable energy, not using single use plastic etc.. 3 One mark for understanding the
AO1b 1 meaning of being a sustainable
Application may include: AO2 1 business.
 Owned by Coca-Cola A03 1
 Second largest coffeehouse chain in the world 2100 branches in UK, 1200 No further marks can be gained without
branches in rest of world) understanding.
 Switched to environmentally friendly coffee beans
 Use beans from Rainforest Alliance-certified suppliers One further mark for application of
understanding to Costa Coffee
Analysis may include: specifically, using evidence from the
 Improved brand image and competitive advantage text.
 Increase business ability to comply with regulation
 Attract employees and investors One further mark for analysis of
one advantage to of Costa Coffee
 Reduce waste
being a sustainable business.
 Make shareholders happy

Exemplar response:
Costa Coffee may use more recycling (U) in all of it’s 2100 UK branches (APP) which
could persuade more customers to come to their shop (AN)
Exemplar response:
Costs may retain more of it’s workers (AN) because it has switched to an environmental
supplier (U) for it’s coffee beans (APP).

Understanding may include: One mark for understanding of a

J204/02 Mark Scheme June 2019

16 (b)  To help the local communities 4 reason why certain suppliers are chosen
 To use as part of its marketing up to a maximum of 2 marks.
 Reliability of supplies AO1b 2
 Quality of the beans - certified AO2 2 No application marks can be gained
 Ethical reasons without understanding.
 Environmental reasons
One further mark for application of
Application may include: a reason why having ‘Rainforest’
 Meet Costa’s (ethical/environmental) standards certified suppliers is important to
Costa Coffee up to a maximum of 2
 Competitive market, eg Starbucks
marks.
 Switched to environmentally friendly coffee
 Switched to ethically sourced beans
 Owned by Coca-Cola (importance of reputation)
 Importance when selling an edible product

Exemplar response:
Suppliers may be more reliable (U) so that Costa can stock it’s 2100 branches in UK
(APP).

Exemplar response:
Costa Coffee may want to be more ethical (U) than their competition such as Starbucks
(APP).
J204/02 Mark Scheme June 2019

Knowledge may include:

16 (c) 2 One mark for identifying an
 Efficiency/quicker/communication AO1a 1 impact of computer
 Training AO2 1 software/technology.
 Ease
 Cost No application marks can be gained
 Motivation without knowledge.

Application may include: One further mark for application

of the impact on Costa Coffee
 Less time taken doing jobs in finance
employees.
 May lead to redundancy in finance area
 Allow management employees to co-ordinate the 2100 branches in UK/1200
branches in rest of the world
 Motivate employees in Welshpool branch
 Co-ordinate the supply chain
 Co-ordinate the wide-range of products
 Plan refurbishment of shops
 New coffee product development

Exemplar response:
One possible impact is that the new software may improve the efficiency (1) of a Costa
Coffee employee as they can produce financial data more quickly (1).

16 (d) (i) Answers may include: 2 One mark for each correct
AO1a 2 identification, up to a maximum of
 Cost/rent of the location two marks
 Transport/infrastructure
 Proximity to the market/customers (number of customers, size/population)
 Proximity to labour/workers
 Proximity to raw materials
 Government – encourage to set up in an area (enterprise zone)
 Competition/rivals
 Marketing reasons

ARA
J204/02 Mark Scheme June 2019

Application may include: Use levels of response criteria

(ii)  Town centre 7
 High street AO2 2 All level descriptors describe the TOP of
 Near other businesses – including offices and shops APP the level – please read guidance at the
 Only two other coffee shops AO3a 2 beginning of the mark scheme regarding
AN best fit approach.
Analysis may include: AO3b 3
 The level of competition – this was low meaning they could compete with them EVAL Level 3 (5-7 marks)
 They are a large firm with lots of money behind them – costs may not have been (AO2 – 2 marks, AO3a – 2 marks, AO3b
an issue – 3 marks)
 They were near lots of other businesses and offices – footfall would be high in a
town centre Good application of knowledge and
understanding of location factors in
 The local businesses would provide a lot of customers
Welshpool for Costa Coffee.
 The infrastructure in the town would be good so stock/staff can get to the shop
easily
There are no additional marks available
for application above those achieved at
Evaluation may include:
level 2.
 Which factor is most influential?
 The relative influence of different factors Good analysis of the location factors for
 Why a factor is influential Costa Coffee. There is a deconstruction
 What the level of influence of a factor might depend upon of relevant information and/or issues to
find connections and to provide logical
Exemplar response: chains of reasoning. (AO3a)
By locating in the town centre there will be many people walking past (APP) and so
Costa is likely to have more customers and make a profit (AN). Strong evaluation of the location factors
influence on Costa Coffee decision to
However, there were two other coffee shops already located there when Costa set their locate in Welshpool. A judgement is
shop up (APP). This may make it difficult to get enough customers to make the shop made and conclusions are drawn that
profitable (AN). are fully justified and which draw on
underpinning knowledge and
Overall the number of potential customers is more important than the level of understanding. (AO3b)
competition (EVAL) when deciding on a suitable location because a coffee shop cannot
compete at all without passing trade (EVAL) so the High Street is ideal (EVAL). Level 2 (3-4 marks)
(AO2 – 2 mark, AO3a – 1 mark, AO3b –
1 mark)

Good application of the location factors

J204/02 Mark Scheme June 2019

Application Analysis Evaluation affecting Costa Coffee. There is a

(2 marks) (2 marks) (3 marks) detailed understanding of the relevant
Strong
3 marks elements of the scenario. (AO2)

A justified evaluation about Limited analysis of the location factors.

one or more factors that may There are some relevant chains of
2 marks
influence location, using the
data reasoning such as simple statements of
2 marks Two (business-facing) cause and consequence. (AO3a)
[EVAL]
pieces of analysis of
[EVAL]
Two uses of data factors that may have
affected location
[EVAL] Limited evaluation of the location
Good [APP] 2 marks factors on Costa Coffee. (AO3b)
[APP] [AN]
[AN] A justified evaluation about
one or more factors that may Level 1 (1-2 marks)
influence location
[EVAL] (AO2 – 1 mark, AO3a – 1 mark)
[EVAL]
Limited 1 mark Limited application of the location
1 mark
1 mark factors and how they influence Costa
One (business-facing) Coffee’s decision.
pieces of analysis of An evaluative statement
One use of data
factors that may have about one or more factors that
affected location may influence location There is some use of the relevant
[APP]
[EVAL] elements of the scenario. (AO2 – 1
[AN] mark)

Limited analysis of the location factors

There are some relevant chains of

reasoning such as simple statements of
cause and consequence. (AO3a – 1
mark)

No evaluation of the impact of the

location factors on Costa Coffee’s
decision on where to locate.

0 marks – no response or no response

worthy of credit.
J204/02 Mark Scheme June 2019

Question Answer Mark Guidance

17 (a) Answers may include: 1 1 mark for a correct
AO1b 1 identification
Salaries
Rent
Insurance

ARA
17 (b) (i) Answers may include: 2
AO1a 2 1 mark for identifying that
Variable costs are costs that change (1) as output/sales changes (1). variable costs change

1 further mark for linking the

change to output.

2 Up to 2 marks for correct

(ii) SP spent on wages: A02 2 answer.

35% of £5500 Award 2 marks for correct answer even if

=£5500 x 0.35 workings not shown.
=£1925 (1) £ sign does not have to be given.

£1925 x 12 months = £23 100 (2) If candidate has used 2017 figures award
one mark for a correct calculation of
The first mark is for correctly calculating the proportion of wages from 2018’s £1760 x 12 months = £21,120 (OFR)
variable costs.

The second mark is for correctly calculating this as an annual figure (ie multiply
by 12 months) – this mark can be based on a candidate own figure if a mistake
has been made in the first part.

OFR
J204/02 Mark Scheme June 2019

(iii) Application may include: 3

1 mark for applying information in
 £880 a month (£10 560 a year) in 2017 to £1100 a month (£13 200 a AO2 1 pie charts 1 and 2 to SP
year) in 2018 AO3a 2
 An increase of £220 a month or an increase of £2640 a year 2 marks for analysing the change
in SPs spending on dry cleaning
Analysis may include: chemical products
 The costs have increased by £220 (1) however the proportion of all
variable costs has stayed the same (1) The analysis marks can come from two
 SP is paying more dry cleaning chemical costs (1) however the separate pieces of analysis (effects on
proportion of all variable costs has stayed the same (1) the business) leading from one change
 May be due to more sales (1) leading to SP having to purchase more OR from the development of one piece of
dry cleaning chemicals (1) analysis (effects on the business) leading
 May be due to the cost of the chemicals increasing (1) leading to SP from one change,
having to purchase more raw materials (1)

NB If a candidate analyses the effect on SP’s costs as a proportion of variable

costs, then there must be a clear indication that SP’s costs have increased.
However one analytical mark can be gained by recognising that the proportion
of costs stayed the same, even if the cost increase is not explicit.
J204/02 Mark Scheme June 2019

17 (c) This question is asking candidates to calculate ARR form the perspective of SP 3 Award 3 marks for a correct answer with
(Stuart and Pippa). Therefore their ‘income’ would be the net profit from HD or without working or %.
sewing. To give SP a ‘profit’ figure from the purchase of HD the purchase price AO2 3
of HD would need to be subtracted. One mark for the correct
If candidates have not subtracted the purchase price of HD they will have calculation of total income from
missed a stage in the calculation and should be awarded appropriate marks the purchase of HD sewing
under the OFR. ($25,000 x 5 years = £125 000).

Accept clear rounding errors One mark for the correct

calculation of profit gained from
The correct process is: the purchase of HD Sewing (£125
000 - £80 000 = £45 000) – OFR
 £25 000 x 5 years = £125 000
 £125 000 - £80 000 = £45 000 One mark for the correct calculation of
 £45 000 ARR (£45 000/5 years
5 years = £9000 £80 000 x100 =11.25%)
 £9000 - OFR
£80 000 x 100 = 11.25% (3) – accept 11.3% or 11% as fully correct
answers

The following answer is incorrect but can be rewarded 2 marks (with or without
supporting working):

 £25 000
£80 000 x 100 = 31.25% (2)

Reward answers, wherever possible, based on the processes above to reward

candidates under the OFR.
J204/02 Mark Scheme June 2019

17 (d) (i) Understanding may include: 3 1 mark for understanding of a

 Growth/expansion reason for buying a business
 Profit/owner income/return on investment AO1b 1
 Meet objectives AO2 1 No further marks can be gained without
 Reduce average costs AO3a 1 understanding.
 Enter a new market
1 further mark for use of the data
Application may include: in Table 1 (and/or Q17c – OFR)
 HD has higher sales revenue of £90 000 but FS only has sales revenue
of £82 500
 HD has a higher annual net profit of £25 000 more than FS at £22 000 1 further mark for analysis of one
advantage to SP of purchasing
 HD has a higher net profit margin of 28% than FS’s 27%
HD
 Reference to their answer to 17c compared to FS’s ARR of 13.8% –
OFR
 HD will return the investment in just over 3 years

Analysis may include:

 Higher sales may mean SP will gain more sales/customers if they
purchase HD
 Higher net profit may mean FS has a better control of costs/expenses
which will benefit SP’s overall costs if they purchase HD
 Better net profit margin may mean a more efficient business
 HD would add more annual profit to SP than FS
 Stuart and Pippa would gain more annual profit than FS
 Allow the business to grow

ARA

Allow the use of ANY answer form Q17c as OFR – this may lead to very
different application and analysis marks which should all be fully rewarded if in
line with the candidates response to Q17c

Exemplar
HD has a better annual net profit (1) than Fast Stich by £3000 (1) which means
that it is likely to be a more successful business and Stuart and Pippa will be
able to pay themselves a bigger income (1)
J204/02 Mark Scheme June 2019

(ii) Understanding may include: 3 1 mark for understanding of a

 Growth/expansion reason for buying a business
 Profit/owner income/return on investment AO1b 1
 Meet objectives AO2 1 No further marks can be gained without
 Reduce average costs AO3a 1 understanding.
 Enter a new market
1 further mark for use of the data
Application may include: in Table 1 (and/or Q17c – OFR)
 FS has a lower purchase price of £65 000, less than HD’s price of
£80 000
 FS has a better ARR of 13.8% compared to HD’s 11.25% - OFR 1 further mark for analysis of one
advantage to SP of purchasing
 FS will return the investment in less than three years
Fast Stich (FS)

Analysis may include:

 Less money needs to be used – lower cost to SP
 Less risk to SP
 Allow the business to grow

ARA

Allow the use of ANY answer form Q17c as OFR – this may lead to very
different application and analysis marks which should all be fully rewarded if in
line with the candidates response to Q17c

Exemplar
Fast stich has a better return than HD (1) of 13.8% compared to 11.2% (1). This
means that SP will gain more profit compared to the cost (1).
J204/02 Mark Scheme June 2019

(iii) A full answer needs a supported judgement based on a comparison so students 3 One mark for a judgement whether
could justify the purchase of HD or Fast stitch SP should purchase HD Sewing or
AO3b 3 Fast Stich.
Further analysis of the methods of production should not be rewarded, but can
form part of a candidates justification One further mark for justification of
a judgement whether SP should
Exemplar purchase HD Sewing or Fast
It is clear that SP should buy FS (1) because Pippa is more concerned about Stich.
the return on her investment than any other factor (1) and FS has the higher
ARR (1) One mark for use of context within
the justification.
In such an answer as the one above – it is important that the candidates own
figure in question 17c is in line with the justification.

Exemplar
SP should buy HD (1) because Stuart and Pippa as business owners want to
make as much profit as possible (1) and HD has the higher annual net profit (1).

18 (a) Answers may include:

Application in this question, may be liked to food and/or M&S and can be 1 1 mark for a correct identification
implied AO2 1 linked to M&S

Example of application linked to food: Do not reward a disadvantage to the

 Customers may choose not to purchase food they cannot touch/smell customer - NAQ
 Cost of transportation of the food
 Food may become damaged in transit

Examples of application linked to M&S:

 Damage to reputation if the website crashes
 Cost of website/security (for such a big business)
 Cost of cyberattack (M&S is a big target)

ARA
J204/02 Mark Scheme June 2019

(b) Understanding may include:

 It may cost more to be ethical to workers 3 One mark for understanding of the
 It may cost more to be ethical to suppliers AO1b 1 impact of ethical considerations.
 It may cost more to be ethical to customers AO2 1
 It may benefit a business’s reputation AO3a 1 No further marks can be gained without
 It may benefit sales revenue understanding of the impact (not
 It may benefit recruitment/retention necessarily understanding of ethics).

Application may include: One further mark for application of

 ‘Nourishing our wellbeing’ – including looking after staff and their needs understanding to M&S specifically,
– wages, hours, safe working conditions using evidence from the text.
 ‘Transforming local communities’ – including supporting staff who want
One further mark for analysis of
to volunteer in charities
an impact of ethical considerations
 ‘Caring for the planet we share’
on M&S’s profitability.
Analysis may include:
Analysis of a cost
 If the price/revenue stays the same, it will decrease profitability
 If revenue goes up (by even more than costs) then it may increase
profitability
Analysis of a benefit:
 If costs stay the same, it will increase profitability
 If costs go up (by even more than the price/revenue) then it may
decrease profitability

ARA

Exemplar response:

M&S ethical programme has an impact on the staff retention (U) because M&S
will support them in volunteering (APP), however this may increase the costs of
the business reducing their profitability if they do not increase their prices (AN)
J204/02 Mark Scheme June 2019

18 (c) Understanding may include: One mark for understanding of the

 to maintain reputation 3 importance of quality.
 to sell more products AO1b 1
 to reduce returns AO2 1 No further marks can be gained without
 to make more profit AO3a 1 understanding.
 to create brand loyalty
One further mark for application of
Application may include: understanding to M&S specifically,
 M&S has ‘high quality, own brand-food, clothing & home products’ using evidence from the text.
 Food must be of a minimum legal quality
One further mark for analysis of a
 Some ‘home’ items are covered under minimum legal requirements
reason why quality is important to
(ie electrical home goods)
M&S’s.
 Standards across 283 food factories
 Ethical programme – poor quality increases waste

Analysis may include:

 Increased costs from products that do not meet standards
 Increased time from having to return orders
 Lost sales from unhappy customers/poor reputation
 Increased costs from legal disputes

Exemplar response:

Ensuring quality is vital to M&S as it maintains reputation (U) because M&S has
a reputation for high quality products (APP) which directly links to demand/sales
and company profits (AN).
J204/02 Mark Scheme June 2019

(d) (i) Understanding may include: 6 1 mark for understanding of an

Advantages AO1b 2 advantage of switching from U
 Quicker to produce U batch to flow production
 Cheaper to produce AO2 2
 More machinery can be used/less workers needed APP 1 further mark for application of an
 Better productivity AO3a 2 advantage of switching from
 Improved quality control/assurance AN batch to flow production to the
Disadvantages Montana Bakery specifically,
 Cost of making the change using evidence from the text.
 Production may need to be stopped
 Perceived quality may be lower 1 further mark for analysis of an
 Cost of making workers redundant advantage of switching from
batch to flow production to the
Application may include: Montana Bakery.
 Montana produces products for M&S – high quality requirements
 Automating some of its production
 Specialty products – perceived quality may be important
 Produces ‘breads, rolls, garlic breads and pizza bases’ – all fairly 1 mark for understanding of a
standardised disadvantage of switching from U
 M&S is not it’s only customer – retailers and sandwich makers batch to flow production
 Bakery has grown
1 further mark for application of a
Analysis may include: disadvantage of switching from
 Increased/decreased costs for Montana batch to flow production to the
 Potential to gain new customers/sales Montana Bakery specifically, using
 Potential to offer new varieties/gain sales/new market evidence from the text.
 Possible loss of confidence of M&S – loss of sales
 Impact on the workforce – boring jobs – increased absenteeism/costs 1 further mark for analysis of a
etc disadvantage of switching from
ARA batch to flow production to the
Exemplar response: Montana Bakery.
Flow production would allow MB to produce more products in the factory (U).
This would give MB more breads which it can sell to M&S (APP) which will
increase their sales and may make the business more profits (AN).
However, it is likely to make MB’s products less unique (U) especially products
like their speciality breads (APP). This might mean that M&S do not order as
many products from MB (AN).
J204/02 Mark Scheme June 2019

(ii) A full answer needs a justified judgement based on the context. 3

One mark for a judgement whether
Further analysis of the methods of production should not be rewarded but can AO3b 3 the Montana Bakery should switch
form part of a candidate’s justification. from batch to flow production in the
new factory.

Exemplar response: One further mark for justification of

The Montana Bakery should switch to flow production (1) because the cost a judgement whether the Montana
savings it is likely to make are more important than any loss of perceived quality Bakery should switch from batch to
(1) in a competitive market such as bread where people often buy the cheapest flow production in the new factory.
(1).
One mark for use of context within
the justification.
J204/02 Mark Scheme June 2019

18 (e)* Knowledge may include: 9 Use levels of response criteria

 Ethics are to do with moral principles AO1a1
 What is right and wrong K All level descriptors describe the TOP
AO1b 1 of the level – please read guidance at
Understanding may include: U the beginning of the mark scheme
 Being fair and consistent in how a business deals with employees (not AO2 2 regarding best fit approach.
about the legal rights and responsibilities) APP
 Paying a ‘fair’ wage (not about paying the minimum wage) AO3a 2 Level 3 (7-9 marks)
 Having good working conditions (not about health and safety) AN (AO1a & b – 2 marks, AO2 – 2 marks,
 Allowing workers time off beyond minimum legal requirements AO3b 3 AO3a – 2 marks, AO3b – 3 marks)
 Treating employees with dignity EVAL
Good knowledge and understanding of
Application may include: ethical treatment of workers and how it
Motivation: may impact the retention and
motivation of M&S’s workers. (AO1a &
 Making workers happier in the workplace
b)
 Employees wanting to come to work
 Employees working harder There are no additional marks available
Retention: for knowledge and understanding
 Encouraging workers to stay at M&S above those achieved at Level 2.
 Workers not looking for different jobs
Good application of knowledge and
Analysis may include: understanding of ethical treatment of
 Higher productivity of workers for M&S workers. There is an understanding of
 Increased costs of promoting ethical behaviour the relevant elements of the scenario.
 Lower recruitment costs for M&S (AO2)
 Lower training costs for M&S
There are no additional marks available
Evaluation may include: for application above those achieved at
 Whether ethical treatment of workers has more benefits than costs for level 2.
M&S
 Whether the impact is bigger on motivation or retention of M&S staff Good analysis of the importance of
 The relative importance of the ethical treatment of workers at M&S, ethical treatment of workers to M&S in
compared with other factors retaining and motivating workers.
There is a deconstruction of relevant
information and/or issues to find
connections and to provide logical
chains of reasoning. (AO3a)
J204/02 Mark Scheme June 2019

Knowledge Understanding Application Analysis Evaluation Strong evaluation of the importance of

(1 mark) (1 mark) (2 marks) (2 marks) (3 marks) ethical treatment of workers to M&S in
Strong 3 marks
retaining and motivating workers. A
A justified judgement is made and conclusions
2 marks judgement of the are drawn that are fully justified and
impact of the ethical which draw on underpinning knowledge
One (business treatment of and understanding. (AO3b)
facing) piece of workers on the
2 marks analysis which motivation AND
shows how retention of M&S
One use of motivation may workers Level 2 (4-6 marks)
ethics to the impact M&S (AO1 a&b – 2 marks, AO2 – 2 mark,
motivation of [EVAL]
workers AND AND [EVAL]
AO3a – 1 mark, AO3b – 1 mark)
one use of [EVAL]
Good ethics to the One (business 2 marks Good knowledge and understanding of
retention of facing) piece of ethical treatment of workers and how it
workers analysis which A justified may impact the retention and
1 mark shows how judgement of the
[APP] retention may impact of the ethical motivation of M&S’s workers. (AO1a &
1 mark
Understanding [APP] impact M&S treatment on b)
of how ethics motivation OR
Knowledge
may be [AN] retention of M&S Good application of knowledge and
of ethics
involved in the [AN] worker
treatment of
understanding of ethical treatment of
[K]
workers [EVAL] workers. There is an understanding of
[EVAL] the relevant elements of the scenario.
Limited [U] 1 mark (AO2)
One (business
facing) piece of
Limited analysis of the importance of
1 mark analysis which ethical treatment of workers to M&S in
1 mark
shows how retaining and motivating workers.
One use of motivation may There are some relevant chains of
A judgement of the
ethics to the impact M&S reasoning such as simple statements
impact of the ethical
motivation OR OR
retention of One (business
treatment of of cause and consequence. (AO3a)
workers
workers facing) piece of
analysis which
[EVAL] Limited evaluation of the importance of
[APP] shows how ethical treatment of workers to M&S in
retention may
impact M&S
retaining and motivating workers.

[AN] Level 1 (1-3 marks)

J204/02 Mark Scheme June 2019

(AO1 – 1 mark, AO2 – 1 mark, AO3a –

1 mark)

Limited knowledge and/or

understanding of ethical treatment of
Exemplar response: workers (AO1a or b)

Ethics is about being moral and fair (K) which may include paying workers Limited application of knowledge and
a fair wage (U). If M&S is being ethics then workers are likely feel well understanding of ethical treatment of
looked after which makes them happier and more motivated (APP). It may workers. There is some use of the
also lead to workers not wanting to leave M&S to work somewhere else relevant elements of the scenario.
(APP). (AO2 – 1 mark)
By having more motivated workers, M&S won’t need to advertise jobs as often
Limited analysis of the importance of
which decreases their costs (AN).
ethical treatment of workers.. There are
M&S will also find that workers are happier, and this could lead to more sales in
some relevant chains of reasoning
their stores (AN).
such as simple statements of cause
Overall ethics can effect both motivation and retention on the workers to a great
and consequence. (AO3a – 1 mark)
extent (EVAL) but effect of retention on costs is likely to be larger (EVAL) than the
effect of motivation on sales because M&S is in a competitive market (EVAL).
No evaluation of the importance of
ethical treatment of workers to M&S in
retaining and motivating workers.

0 marks – no response or no response

worthy of credit.
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