SENG manufactures cameras. Last year its market share increased by 2% to 18%. Production is capital intensive. This allows SENG to use lean production methods such as just-in-time. Cameras have a short product life cycle. SENG spends $200m each year on extension strategies. The Marketing manager thinks that an increase in market share will lead to higher profits.

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. machinery is the key resource rather than labour.
2. [1] Some knowledge [1]: e.g. use machines.
3. [2] (b) Application [2 × 1]: 1 mark per reason.
4. [4] (c) Knowledge [2 × 1] - award 1 mark for each relevant advantage.
5. [2] Application/analysis [2 × 1] – award 1 mark for each relevant explanation.
6. [0] Do not accept points such as 'increased efficiency' or 'better motivation' for knowledge [tv].
7. [6] (d) Knowledge [2 × 1] – award 1 mark for each relevant strategy identified.
8. [2] Application [2 × 1] – award 1 mark if relevant reference made to SENG's business/cameras.
9. [2] Analysis [2 × 1] - award 1 mark for each relevant explanation.
10. [3] For each reason: maximum 3 marks [1k + 1ap + 1an].
11. [0] Accept practical examples.
12. [0] Do not accept general marketing strategies such as advertising or lower prices on own OR new products.
13. [6] (e) Knowledge [2] – award up to 2 marks for identification of relevant issue(s).
14. [1] Application [1] – award 1 mark if relevant reference made to SENG's business.
15. [1] Analysis [1] - award 1 mark for relevant development of point(s).
16. [2] Evaluation [2] – justified decision made as to whether an increase in market share will always lead to higher profits. For 6 marks must address the word 'always'.