Brookdown is a multinational company in the hospitality industry. It owns hotels, sports and leisure facilities, in many parts of the world.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2013). The mark or mark type is shown in brackets.

1. [4] offer quality service and extra facilities
2. offer promotions + example such as 7 days for the price of 6
3. advertise more widely using several media
4. listen to complaints and act upon them
5. lower prices at certain times of the year
6. move into other markets e.g. conferences, exhibitions
7. open more hotels in other countries
8. offer a range of different hotels in widely different locations
9. offer many ways of making bookings especially online booking
10. any other relevant point
11. [6] it will need long-term finance and a large amount of money in order to purchase/lease land and build a resort hotel with a large amount of accommodation and many other facilities
12. it might retain profits if there is sufficient but it is likely to have to borrow as well
13. it is likely to be a public limited company so it might make a rights issue to existing shareholders
14. it might seek a bank loan with fixed interest and repayments from future business
15. it might seek finance from the Hong Kong government who might want to encourage increased tourism
16. it might sell debentures on which fixed interest is paid and which may be secured against company assets
17. it might seek finance from a merchant bank who might offer a loan
18. any other relevant point
19. [4] to provide information about its hotels, sports and leisure facilities
20. to advertise its hotels, sports and leisure facilities
21. to save money on using other more expensive advertising media
22. to provide contact details
23. to provide a facility for online bookings
24. to show any special promotions it may have
25. to give added emphasis/advertising to particular hotels
26. to provide up-to-date information on its business
27. to give extra information about any special event being held
28. so that it can compete with other businesses in the hospitality industry
29. any other relevant point
30. [6] Level 2 (4-6 marks)
31. Has discussed in the context of a multinational in the hospitality industry whether or not Brookdown's trading activities are important to the countries in which it operates and has given a reasoned opinion.
32. (If a candidate gives a discussion with no context, award 4 marks max.)
33. (If a candidate gives a one-sided reasoned argument, award 4 marks max.)
34. Brookdown's trading activities are important to many of the countries in which it operates. It will be contributing to the country's tourist and hospitality industry. Guests from other countries are likely to be staying in its hotels and leisure complexes and spending money within the country. Brookdown is, therefore, earning foreign currency for the country and contributing to its invisible exports.
35. Brookdown is likely to have the financial resources to develop expensive projects such as the resort hotel in Hong Kong. It will employ large numbers of the country's workers in many positions within the hotel and so will reduce unemployment within the country. It will offer them training and make them more employable. It may bring in employees from other countries who will spend in the country's economy. It may buy many of its supplies from businesses based in the country.
36. On the other hand, although Brookdown is likely to be profitable and to pay taxes in the country, much of its profit will be moved overseas for the benefit of the multinational. As a very large company, Brookdown may have undue influence on the economy of the country and in some countries, be involved in the politics of the country. If its hotels are not successful, Brookdown may either close them down or sell them to another company, so suddenly making people unemployed.
37. However, it is extremely likely that Brookdown's activities will prove to be important to the countries in which it operates and it will be encouraged to do business there.
38. Level 1 (1-3 marks)
39. Has commented on multinational companies in relation to the countries in which they operate with little or no context.
40. Multinational companies provide employment. They pay taxes to the country. They train staff especially in the hotel trade. They are important in most countries.