Cutter is a family owned private limited company. It manufactures a luxury brand of coats. In 2013 sales revenue increased by $3m and retained profits also increased. ‘The marketing mix is working' said the Marketing Director. Cutter's Operations Director thinks that batch production is still the right method of production to use, but he cannot decide whether on the job or off the job training is better for the business.

Mark scheme

Marking points from the official mark scheme (May/June 2014). The mark or mark type is shown in brackets.

1. [2] (a) Good knowledge [2]: e.g. net profit reinvested back into business [1] after tax and/or dividends [+1].
2. [1] Some knowledge [1]: e.g. money left after dividends and/or taxes paid, money kept by business.
3. [0] Do not accept net profit or definition of profit [0].
4. [2] (b) Application [2 × 1] – award one mark per advantage.
5. [4] (c) Knowledge [2 × 1] – award 1 mark for each relevant benefit.
6. [2] Application [2 × 1] – award 1 mark for each relevant explanation in context.
7. [0] Do not accept cheaper/less waste/consistency of product as all too vague.
8. [0] Points must be related to business not employees.
9. [6] (d) Knowledge [2 × 1] – award 1 mark for each relevant element identified.
10. [2] Application [2 × 1] - award 1 mark if relevant reference made to Cutter.
11. [2] Analysis [2 × 1] - award 1 mark for each relevant explanation.
12. [3] For each reason: maximum 3 marks [1k + 1ap + 1an].
13. [0] Do not accept packaging on its own due to nature of the product [tv].
14. [0] Accept only one example from each category.
15. [6] (e) Knowledge [2] – award up to 2 marks for identification of relevant issue(s).
16. [1] Application [1] – award 1 mark if relevant reference made to Cutter's business.
17. [1] Analysis [1] – award 1 mark for relevant development of point(s).
18. [2] Evaluation [2] – justified decision made as to whether it is better for Cutter to use on the job or off the job training. Either viewpoint is acceptable.
19. [0] Do not accept definitions of terms as knowledge.