Explain four characteristics that make Simon a successful entrepreneur.

Mark scheme

Marking points from the official mark scheme (May/June 2020). The mark or mark type is shown in brackets.

1. [1] (a) Self-confident
2. [1] (a) Creative
3. [1] (a) Independent
4. [1] (a) Hard worker
5. [1] (a) Risk taker
6. [1] (a) Effective communicator
7. [1] (a) Optimistic
8. [1] (a) Innovative
9. [1] (a) Application of characteristic to the context (e.g., Simon is a risk taker as he risked giving up his well-paid job to start his own business)
10. [9-12] (b) Level 3: Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of two or more methods. Well-justified recommendation. Candidates discussing three methods in detail, in context and with well-justified recommendation including why the alternative methods were rejected should be rewarded with the top marks in the band.
11. [5-8] (b) Level 2: Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of at least one method. Judgement with some justification/some evaluation of choice made. Candidates discussing of two or more methods in detail and applying it to the case should be rewarded with the top marks in the band.
12. [1-4] (b) Level 1: Limited application of knowledge and understanding of relevant business concepts. Limited ability to discuss the methods with little/no explanation. Simple judgement with limited justification/limited evaluation of choice made. Candidates outlining three methods in context should be rewarded with the top marks in the band.
13. [0] (b) Job production advantage: Suitable for one-off drinks
14. [0] (b) Job production advantage: Needs exact requirements of customers
15. [0] (b) Job production advantage: Higher price charged for product
16. [0] (b) Job production disadvantage: Skilled labour may be required - higher wages - higher costs
17. [0] (b) Job production disadvantage: Costs higher as labour intensive and specially ordered fruits used
18. [0] (b) Job production disadvantage: Production takes longer than other two methods
19. [0] (b) Batch production advantage: Flexible way of working - can easily change to produce different drinks
20. [0] (b) Batch production advantage: Still some variety for workers in their jobs
21. [0] (b) Batch production advantage: More variety of products produced - consumers will have more choice
22. [0] (b) Batch production disadvantage: Can be expensive if semi-finished drinks need moving around the factory
23. [0] (b) Batch production disadvantage: Machines have to be reset between batches (delay in production, lower productivity)
24. [0] (b) Batch production disadvantage: Warehouse space needed for fruits and finished batches of drinks - cost of space
25. [0] (b) Flow production advantage: High output of standardised drinks
26. [0] (b) Flow production advantage: Cost to make each drink is low
27. [0] (b) Flow production advantage: Easier for capital intensive production methods to be used
28. [0] (b) Flow production advantage: May use lower skilled workers as machines can be used in the production line
29. [0] (b) Flow production advantage: May benefit from economies of scale as may buy the 2 types of fruit ingredients in bulk
30. [0] (b) Flow production disadvantage: Can be boring for workers - less motivated
31. [0] (b) Flow production disadvantage: Storage costs may be high unless use JIT
32. [0] (b) Flow production disadvantage: Capital costs of setting up production line are high
33. [0] (b) Flow production disadvantage: If one machine breaks down, then the whole production line may have to be halted with no fruit drinks produced
34. [0] (b) Justification for Batch: Batch will be the best as different types of healthy drinks will be produced but not in large enough quantities to make flow production viable until the business has grown significantly.
35. [0] (b) Justification for Flow: Flow production will allow more automated machinery to be installed in the factory which will reduce unit costs than if job or batch production is used. Lower prices for the fruit drinks may then be charged leading to higher demand. Also supply to the additional market stalls can easily be met and the business can expand quickly.