Identify two ways the size of AH can be measured. Explain the limitations of each of these measures.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.

1. [2 x 1] Knowledge - award one mark for each way
2. [2 x 1] Analysis - award one mark for a relevant explanation for each way
3. [2 x 2] Application - award two application marks for each way
4. Award one mark for each way (maximum of two), such as: Capital employed; Number of employees; Sales revenue/revenue/income; Output/quantity of services/number of customers
5. Do not accept profit
6. Award a maximum of three additional marks for each explanation – 2 of which must be applied to this context – of the way
7. Indicative response: The number of employees (K) as the more employees a business has the larger the business. However, some businesses may use a lot of technology and therefore have fewer employees. (an) AH is a small business because it only has18 employees (ap) and it is also a service sector business as it looks after animals for their owners and therefore they do not use much technology. (ap)
8. Possible application marks: Animals; dogs; cats; pets; pet owners; washing and brushing animals; $10 000 from grandfather; $10000 from bank loan; 12 adults and 6 children workers; information from Appendix 3 on the costs and revenue of AH.
9. There may be other examples in context that have not been included here.
10. Relevant points might include: Questionnaires (Advantages: Quantitative data – estimate size of market; Disadvantages: Expensive to collect, May not have expertise to collect accurate information)
11. Interviews (Advantages: Qualitative information- specific information on customer needs; Disadvantages: Interviewer bias possible, Expensive to collect)
12. Focus groups (Advantages: Qualitative information; Disadvantages: Answers may be influenced by other group members, Time taken to set up)
13. Business reports/government statistics (Advantages: Cheap to collect, Wide range of data available; Disadvantages: May not be able to collect this information themselves, May be out of date, Gathered for another purpose, May not be valid/accurate)
14. Note: Also reward – Survey; Observation; Newspapers; Internet/online data; Government statistics.
15. Knowledge/Analysis/Evaluation – award up to 10 marks using the levels-based mark scheme below.
16. Level 3 (9-10 marks): At least 2 x Level 2 + well justified recommendation of which method to choose for the proposed location and why not the alternative methods. (7-8 marks): For some limited recommendation of which method to choose.
17. Level 2 (4-6 marks): Discussion of the method used to find out the number and types of customers and/or Detailed discussion of advantages and/or disadvantages of each method.
18. Level 1 (1-3 marks): Name of a suitable method of research stated or outlined Advantage and/or disadvantage of the method of research stated.
19. Level 1 - 1 mark for each L1 statement (max of 3 marks) e.g. Government statistics are cheap to collect.
20. Level 2 - 1 x L2 explanation can gain 4 marks and a further mark can be awarded for each additional L2 explanation (max 6 marks) e.g. Government statistics are cheap to collect and can be obtained quickly. However, the information may have been gathered for another purpose and may be of little use when trying to predict the pet owner requirements at the different locations. (Level 2 – 4 marks plus one application mark for referring to the pet owners at the new locations)
21. Level 3 - For L3 to be awarded there needs to be at least two L2 marks awarded and then a recommendation of which method to choose.
22. Award up to 2 additional marks for relevant application.
23. Possible application marks: Animals; dogs; cats; pets; pet owners; washing and brushing animals; New City; expand and move to larger site; information on the three sites; information from Appendix 1 on the AH advert; complaint on the social media message; information from Appendix 3 on the costs and revenue of AH.
24. There may be other examples in context that have not been included here.