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O-LevelBusiness StudiesOperations management7115/21 · Oct/Nov 2017 · Q320 Marks

Identify and explain two possible ethical issues that AH should consider.

  1. (a)Identify and explain two possible ethical issues that AH should consider.[8]
  2. (b)Consider the advantages and disadvantages of the three sites Elsie is considering. Recommend which site is the best one for AH to choose. Justify your answer.[12]

Mark scheme

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

  1. Knowledge [2 x 1] - award one mark for each ethical issue ('Doing the right thing')
  2. Analysis [2 x 1] - award one mark for a relevant explanation for each ethical issue
  3. Application [2 x 2] – award two application marks for each ethical issue
  4. Award one mark for each ethical issue (maximum of two), such as: Types of animals looked after – all legal?; Welfare of animals/danger to animals; Working conditions; Child labour employed; Fair pay/paying minimum wage; Disposal of waste in a responsible manner
  5. Award a maximum of three additional marks for each explanation – 2 of which must be applied to this context – of the ethical issue
  6. Indicative response: AH employs children (K) and then pays them below the legal minimum wage. (ap) This keeps costs low but will give AH a bad reputation leading to a lower number of customers. (an) This will make it more difficult for Elsie to expand the business to a larger site as there may be insufficient number of customers to make this worthwhile. (ap)
  7. Possible application marks: Animals; dogs; cats; pets; pet owners; washing and brushing animals; 12 adults and 6 children workers; paid legal minimum wage; complaint on the social media message; cage; rare animal
  8. There may be other examples in context that have not been included here.
  9. Relevant points might include: Site X: Advantages: Lowest cost, Plenty of room for large kennels owners will like this, Room to expand in the future so will not need to relocate again soon. Disadvantages: Small farm buildings = not big enough, Needs converting and a long way from customers – would they travel that far? Additional costs of $10 000 to repair. Serving fewer customers than they have already = 25 per day Site Y: Advantages: Larger area – more demand, Buildings in good repair so less required to convert them, Serve twice as many customers as Site X and more customers than existing site. Disadvantages: Additional costs of $5 000 to convert the building. A lot fewer customers served than Site Z Site Z: Advantages: Existing customers – large demand – serve the most customers, Near to many potential customers as in centre of city – convenient for customers. Disadvantages: High cost - most expensive of the three sites, Busy area - hard to park, Limited space – small cages – not able to expand in the future – may need to move again in the future, Cramped space may lead to bad reputation – lower quality services
  10. Knowledge/Analysis/Evaluation – award up to 10 marks using the levels-based mark scheme below.
  11. Level 3 (9-10 marks): At least 2 x Level 2 + well justified recommendation as to best site to choose and why not the other sites. (7-8 marks): For some limited judgement shown in recommendation as to best site to choose.
  12. Level 2 (4-6 marks): Detailed advantages and/or disadvantages of each site or explanation of the impact of the site on the business
  13. Level 1 (1-3 marks): Outline advantages and/or disadvantages of each site or simple comparative statement
  14. Level 1 - 1 mark for each L1 statement (max of 3 marks) e.g. Site X is the cheapest of the three sites.
  15. 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. Site X is the cheapest of the three sites and this will reduce the amount of finance required to purchase the site. However, it is a long way from customers who are in the city centre and this may mean she has to reduce prices. (L2 = 4 marks plus one application mark for using the information in case)
  16. Level 3 - For L3 to be awarded there needs to be at least two L2 marks awarded and then a recommendation which justifies the best site to choose.
  17. Award up to 2 additional marks for relevant application.
  18. Possible application marks: Animals; dogs; cats; pets; pet owners; ;washing and brushing animals; set up 2 years ago; $10 000 from grandfather; $10 000 from bank loan; 12 adults and 6 children workers; shampoo and brushes purchased from wholesaler; needs to recruit a new manager; information on the three sites; information from Appendix 1 on the AH advert; information from Appendix 3 on the costs and revenue of AH.

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About this question

Topic
Operations management, O-Level Business Studies (syllabus 7115). Structured question, 20 marks.
Source
O-Level Business Studies, Oct/Nov 2017 Paper 2 Variant 1, question 3.

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