TRA is a quaternary sector business. It is the market leader in providing social media data to food manufacturers in country F. TRA's market has grown by 40% over the last year. DF is a multinational business that specialises in non-alcoholic drinks. DF has asked TRA for data about a new bottle of water with pod attachments. The pods give a fruity flavour which is combined with sparkling water. TRA has sampled 8000 potential consumers on social media to identify their favourite fruity flavour (see Fig. 1.1). [Figure 1.1] TRA employs 65 researchers. Since 2020, all of these employees work from home. They are provided with all the necessary IT equipment and a high-speed internet connection. However, motivation is poor, and this has led to high labour turnover. The Human Resource Director has received some feedback from employees. Fig. 1.2 shows some of this feedback. • I hate being so isolated – I never get to speak to any other employees. • I have to use my own electricity, and the cost has doubled in the last two years. • I know some employees are not working very hard, but they get paid the same as me. It's not fair! [Figure 1.2]

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2025). The mark or mark type is shown in brackets.

1. [1] (a)(i) Responses include:
2. [1] The stages of the transformational process:
3. [1] • Inputs
4. [1] • Adding value / production / manufacturing / operations / process
5. [1] • Outputs
6. [1] Do not accept examples of inputs and outputs
7. [3] (a)(ii) A01 Knowledge and understanding
8. [1] Knowledge of one relevant point is used to answer the question.
9. [3] AO2 Application
10. [2] Developed application of one relevant point to a business context.
11. [1] Limited application of one relevant point to a business context.
12. [0] No creditable response.
13. [3] Responses may include:
14. [1] AO1 Knowledge and understanding
15. [1] Knowledge of a multinational businesses (max 1 mark).
16. [1] Must be knowledge that shows clear distinction between a national and international business including:
17. [1] • Capital in more than one country
18. [1] • Operates in more than one country
19. [3] AO2 Application
20. [3] Limited application applies knowledge of a multinational business to a business context.
21. [3] Developed application applies knowledge of a multinational business to a business context.
22. [3] • Any exemplification of a multinational business (not just naming a MNC)
23. [3] • A business might have production factories in country F and another country
24. [3] • Can take advantage of lower cost production in low-income countries
25. [3] • Benefits of lower transport costs and better market information about consumer tastes etc
26. [3] • Can bring the business closer to their main markets
27. [3] • Can take advantage of relatively weak government restrictions.
28. [3] • May avoid import restrictions by producing in the local country.
29. [3] • Gain access to natural resources which might not be available in their base country.
30. [3] • Communication links with headquarters may be poor.
31. [3] • Language, legal and culture differences could make communications difficult.
32. [3] • Coordination with other plants in the multinational group will become more difficult.
33. [3] • Skill levels of the local employees may be low, requiring substantial investment in training programmes.
34. [3] Do not expect, but reward
35. [3] • Can take advantage of comparative/absolute advantage in countries
36. [3] • To gain economies of scale
37. [3] Accept all valid responses.
38. [3] (b)(i) Formula:
39. [1] Number of potential customers = number who prefer lemon + number who prefer strawberry (1 – formula may be inferred by correct use of numbers)
40. [3] Calculation:
41. [1] 34% of 8000 = 2720 (1)
42. [1] 28% of 8000 = 2240 (1)
43. [1] 2720 + 2240 = 4960 (1 – OFR applies)
44. [3] Ans = 4960 (3 marks)
45. [3] OR
46. [1] 34% + 28% = 62(%) (1)
47. [1] 62% of 8000 (1)
48. [1] = 4960 (1)
49. [3] Ans = 4960 (3 marks)
50. [3] (b)(ii) A01 Knowledge and understanding
51. [1] Knowledge of one relevant point is used to answer the question.
52. [3] AO2 Application
53. [2] Developed application of one relevant point to a business context.
54. [1] Limited application of one relevant point to a business context.
55. [0] No creditable response.
56. [3] Responses may include:
57. [1] AO1 Knowledge and understanding
58. [1] Identification of a reason why a business uses sampling (max 1 mark), including:
59. [1] • Cheaper/low cost
60. [1] • Quicker/less time
61. [1] • More representative
62. [3] AO2 Application
63. [3] Explanation of a reason why a business uses samplin (max 1 mark), including:
64. [3] Explanation of how this affects market research
65. [3] More practical, for example than asking the entire population
66. [3] Opportunity cost
67. [3] Context applied to TRA (max 1 mark), including:
68. [3] • Quaternary sector business
69. [3] • Market is to provide social media data (vast amounts of data)
70. [3] • To food manufacturers in country F (large industry)
71. [3] • TRA is the market leader in country F to provide this data
72. [3] • Market has grown by over 40% over the last year
73. [3] • Sample size is 8000 potential consumers
74. [3] • 65 researchers
75. [3] • All work from home
76. [3] • Use of Fig 1.1
77. [3] Accept all valid responses.
78. [8] (c) A01 Knowledge and understanding
79. [2] Knowledge of two relevant points is used to answer the question.
80. [1] Knowledge of one relevant point is used to answer the question.
81. [8] AO2 Application
82. [2] Application of two relevant points to a business context.
83. [1] Application of one relevant point to a business context.
84. [8] AO3 Analysis
85. [4] Developed analysis that identifies connections between causes, impacts and/or consequences of two points.
86. [2] Developed analysis that identifies connections between causes, impacts and/or consequences of one point.
87. [8] Responses may include:
88. [2] AO1 Knowledge and understanding – reasons why data collected may not be reliable, including:
89. [2] Identification of a reason why market research data may not be reliable, including:
90. [2] • Bias
91. [2] • Sample size
92. [2] • Sample not representative of the market
93. [2] • Wrong/poor questions
94. [2] • Wrong media used
95. [2] • Human error
96. [2] • Poorly defined objectives
97. [2] • Time lag between research and implementation
98. [2] This is not secondary market research, so do not credit answers about why secondary market research may not be reliable. However, answers which suggest the data may have changed (time lag) are acceptable.
99. [2] AO2 Application
100. [2] Application of the reason to DF, including:
101. [2] • TRA is the market leader in providing social media data to food manufacturers in country F
102. [2] • Market has grown by over 40% over the last year
103. [2] • DF specialises in non-alcoholic drinks
104. [2] • DF is a multinational business
105. [2] • TRA sampled 8000 potential customers
106. [2] • Sampled on social media
107. [2] • Asked about favourite fruity flavours
108. [2] • Use of data in Fig 1.1
109. [2] • TRA employs 65 researchers
110. [2] • All of TRA's researchers work from home
111. [2] • TRA's workers have poor motivation
112. [2] • TRA has high labour turnover
113. [2] • Suggestion that some TRA employees are not working very hard.
114. [4] AO3 Analysis
115. [4] Limited analysis of a reason why market research data may not be reliable – developed analys, including:
116. [4] • Bias; may mean that potential customers are persuaded to give a wrong answer leading to launching the wrong product - low sales.
117. [4] • Sample size; not enough people asked which may mean it launches the product with few sales – leading to a loss.
118. [4] • Sample representation; not enough different views sought leading to the wrong product being launched no profit.
119. [4] • Wrong/poor questions; potential customers may not know what is being asked, leading to the product being purchased - makes a loss.
120. [4] • Wrong media used; if the customers do not tend to use that medium then the results will not transform into sales – leading to it not making a profit.
121. [4] • Human error; if the results are inaccurate this could lead to the wrong products being launched – ruining the brand image of the business.
122. [4] • Poorly defined objectives; if the reason for the research is unclear this can lead to the questions not representing what the business needs to know – leading to launch of the wrong product and weak sales.
123. [4] Accept all valid responses.
124. [12] (d) Level A01 Knowledge and understanding 2 marks
125. [2] Developed knowledge of relevant key term(s) and/or factor(s) is used to answer the question.
126. [1] Limited knowledge of relevant key term(s) and/or factor(s) is used to answer the question.
127. [0] No creditable response.
128. [12] AO2 Application 2 marks
129. [2] Developed application of relevant point(s) to the business context.
130. [1] Limited application of relevant point(s) to the business context.
131. [0] No creditable response.
132. [12] AO3 Analysis 2 marks
133. [2] Developed analysis that identifies connections between causes, impacts and/or consequences.
134. [1] Limited analysis that identifies connections between causes, impacts and/or consequences.
135. [0] No creditable response.
136. [12] AO4 Evaluation 6 marks
137. [5-6] Developed evaluation in context
138. [5-6] • A developed judgement/conclusion is made in the business context.
139. [5-6] • Developed evaluative comments which balance some key arguments in the business context.
140. [3-4] Developed evaluation
141. [3-4] • A developed judgement/conclusion is made.
142. [3-4] • Developed evaluative comments which balance some key arguments.
143. [1-2] Limited evaluation
144. [1-2] • A judgement/conclusion is made with limited supporting comment/evidence.
145. [1-2] • An attempt is made to balance the arguments.
146. [0] No creditable response.
147. [12] Responses may include:
148. [2] AO1 Knowledge and understanding
149. [2] Knowledge of ways to improve motivation (max 2 marks), including:
150. [2] • Payment (financial) methods: time based, salary, piece rates, commission, bonuses, profit sharing, performance-related pay, fringe benefits
151. [2] • Non-financial motivators: training, opportunities for promotion, development, status, job re-design, team working, empowerment, participation, job enrichment
152. [2] • Use of the main motivation content theories (Taylor, Mayo, Maslow, Herzberg and McClelland) and motivation process theory (Vroom).
153. [2] AO2 Application
154. [2] Application to TRA, including:
155. [2] • TRA is the market leader in providing social media data to food manufacturers in country F
156. [2] • Market has grown by over 40% over the last year
157. [2] • Samples using social media
158. [2] • TRA employs 65 researchers
159. [2] • High speed internet connection
160. [2] • TRA's workers have poor motivation
161. [2] • TRA has high labour turnover
162. [2] • Suggestion that some TRA employees are not working very hard.
163. [2] • Data from Fig 1.2
164. [2] – I hate being so isolated – I never get to speak to any other employees.
165. [2] – I have to use my own electricity, and the cost has doubled in the last two years.
166. [2] – I know some employees are not working very hard, but they get paid the same as me. It's not fair!
167. [2] AO3 Analysis
168. [2] Limited analysis of ways to improve motivation – developed analys, including:
169. [2] • Payment methods: may increase costs – however may make employees work harder for higher pay, leading to improved productivity.
170. [2] • Non-financial methods; may be less cost or free – leading to higher productivity without impacting the costs of the business.
171. [2] • Content theories: likely to improve working conditions for the employees leading to increased productivity – however may have a significant cost increase leading to lower profit.
172. [2] • Process theory: increased productivity for workers who expect increased rewards – however if the employees do not believe the promises, then this may increase costs for no benefit.
173. [2] AO4 Evaluation
174. [6] Limited evaluation of the most effective way to improve motivation – develope developed in conte, including:
175. [6] • Relative importance of motivation to TRA – how important is the productivity of employees – likely to be highly important due to the quaternary nature of the business.
176. [6] • Choice of method depends on; cost of method, likely increases in productivity, finance available, future forecasts in market changes, how skilled the researchers job actually is and what training is involved.
177. [6] • The impact of the chosen motivation method(s) and the impact of poor motivation / high labour turnover.
178. [6] • The extent to which this is a matter of working from home and is inherent in the whole country, as opposed to just TRA employees.
179. [6] • A judgement that other issues may be more important than motivation of the employees.
180. [6] A valid judgement must identify one way to motivate the employees (a ‘depends upon' may include more than one because it is not a judgement as such). If the candidate gives more than one judgement, only reward the best judgement and put SEEN next to the other(s).
181. [6] Accept all valid responses.