Identify and explain two examples of tertiary sector businesses that help WA to be successful.

Mark scheme

Marking points from the official mark scheme (May/June 2019). The mark or mark type is shown in brackets.

1. [8] Knowledge - award one mark for identifying an example of a tertiary sector business [2 x 1 marks]
2. [8] Analysis- award one mark for a relevant explanation of how the tertiary sector business helps WA be successful [2 x 1 marks]
3. [8] Application – award two application marks for explaining in context how the tertiary sector business helps WA to be successful [2 x 2 marks]
4. [8] Answers are likely to include: Bank
5. [8] Answers are likely to include: Insurance
6. [8] Answers are likely to include: Advertising agency
7. [8] Answers are likely to include: Transport services
8. [8] Answers are likely to include: Communication e.g. mobile phone networks, internet providers
9. [8] Answers are likely to include: IT services
10. [8] Answers are likely to include: Retailer / wholesaler e.g. furniture retailer
11. [8] Answers are likely to include: Training companies
12. [8] Indicative response: Transport services (k) that delivers furniture to customers (ap). This saves WA having to purchase its own vehicles to deliver tables and chairs (ap) and so saves WA the expense of delivery vehicles when they would not be used all the time (an).
13. [8] Possible application marks: Family owned ltd; small business; started 10 years ago; furniture; wood from sustainable forests; new fashionable designs each year; individually designed furniture produced; chairs / tables; reduced profit in 2018.
14. [12] Relevant points might include: Use computers in manufacturing and design - Advantages: Less labour required – lower labour costs
15. [12] Use computers in manufacturing and design - Advantages: Increased output – at a faster pace
16. [12] Use computers in manufacturing and design - Advantages: Possibly improved quality – less mistakes from human error
17. [12] Use computers in manufacturing and design - Advantages: Improved designs – less waste producing new models
18. [12] Use computers in manufacturing and design - Disadvantages: High cost of computers
19. [12] Use computers in manufacturing and design - Disadvantages: Cost of redundancy payments for workers
20. [12] Use computers in manufacturing and design - Disadvantages: Disruption while new computers are installed
21. [12] Use computers in manufacturing and design - Disadvantages: Increased training costs for workforce to use new equipment
22. [12] Use computers in manufacturing and design - Disadvantages: May need to recruit workers with new skills
23. [12] Improve employee skills - Advantages: Makes workers more efficient – lower unit costs
24. [12] Improve employee skills - Advantages: Increased motivation as employees feel valued
25. [12] Improve employee skills - Advantages: Increased output may be higher than increased wage costs – lower unit costs
26. [12] Improve employee skills - Disadvantages: Higher cost for training
27. [12] Improve employee skills - Disadvantages: May need to be off-the-job training or may cause interruption to production of the products
28. [12] Improve employee skills - Disadvantages: Workers may demand higher wages as now more skilled
29. [12] Improve employee skills - Disadvantages: Employees may then find new jobs elsewhere as they have more skills
30. [12] Award up to 10 marks using the levels-based mark scheme below.
31. [12] Level 3: At least 2 x Level 2 + 9–10 marks for well justified recommendation as to which would be the best way to increase productivity in order to increase profit compared to other way. 7–8 marks for some limited judgement shown in recommendation as to which would be the best way to increase productivity.
32. [12] Level 2: 4–6 marks Detailed discussion of the advantages and/or disadvantages of each way to increase productivity.
33. [12] Level 1: 1–3 marks Outline of the advantages and/or disadvantages of each way to increase productivity.
34. [12] Level 1 – 1 mark for each L1 statement (max of 3 marks) e.g. Use of computers may lead to fewer workers required so saves wage costs.
35. [12] Level 2 – 1 × L2 explanation can gain 4 marks and a further mark can be awarded for each additional L2 explanation (max 6 marks) e.g. Use of computers may lead to fewer workers required so saves wage costs and this reduces total costs so may help to increase profit. However, workers will need to be made redundant and this will cost money in redundancy payments. (L2)
36. [12] Level 3 - For L3 to be awarded there needs to be at least two L2 marks awarded and then a recommendation which would be the best way to increase productivity in order to increase profit.
37. [12] Award up to 2 additional marks for relevant application.
38. [12] Possible application marks: Family owned Itd company; small business; started 10 years ago; furniture; wood from sustainable forests; uses batch production to make furniture; individually designed furniture produced using job production; environmentally friendly business objective; reduced profit in 2018; $4000 wage cost; 20 workers; 10% above minimum wage; selling price $200 and $250; highly skilled production workers.