Identify and explain two characteristics David needs to be a successful entrepreneur.

Mark scheme

Marking points from the official mark scheme (May/June 2015). The mark or mark type is shown in brackets.

1. [2] Knowledge (2 × 1) – award one mark for each relevant characteristic identified
2. [2] Analysis (2 × 1) – award one mark for a relevant explanation of each characteristic
3. [4] Application (2 × 2) – award two application marks for each relevant characteristic
4. Relevant characteristics might include: Hard working; Risk taker; Creative; Optimistic; Self-confident; Innovative; Independent; Effective communicator; Forward thinker; Determined
5. Award a maximum of three additional marks for each explanation – 2 of which must be applied to this context – of why these characteristics are needed to be a successful entrepreneur.
6. Indicative response: Hard working (k) as the business has only been established for 10 years and has non-current assets worth $100m (ap). David worked long hours 7 days a week to find customers so the business has grown (ap). He has had to work hard to manage the business effectively so that it is successful (an).
7. Possible application marks for (a): cake manufacturing; food; shareholder; private limited company; started 10 years ago in country x; invested all his savings; profits have been constantly increasing every year; constantly develops a new range of cakes; works 7 days a week; has four managers for each department; e-commerce; Figures from Appendix 2; new markets abroad.
8. There may be other examples in context which have not been included here.
9. Relevant points for (b) might include: Planning - sets aims/targets; plan for necessary resources; Organising - delegate tasks; people and resources; ensure everyone working effectively/no duplicated tasks; Coordinating – ensure departments working together; aims/tasks linked together; chair regular meeting between departments; Commanding – guiding employees; leading/supervising employees; ensure employees keep to targets/tasks; Controlling - measure/evaluate work of employees; identify poor performance/identify problems
10. Knowledge/Analysis/Evaluation – award up to 10 marks using the levels-based mark scheme below.
11. Level 3: At least 2 x Level 2 + 9-10 marks for well justified recommendation as to the most important management function of the Operations Manager compared to the other functions
12. Level 2: 7-8 marks for some limited judgement shown in recommendation as to the most important management function of the Operations Manager.
13. Level 2: 4-6 marks Detailed discussion of each management function of the Operations Manager.
14. Level 1: 1-3 marks Name management function and/or identifies key tasks Operations manager will carry out.
15. Level 1: 1 mark for each L1 statement (max of 3 marks), e.g. the Operations Manager needs to control the department.
16. Level 2: One L2 explanation can gain 4 marks and a further mark can be awarded for each additional L2 explanation (max 6 marks), e.g. the Operations Manager needs to control the department. This will involve ordering the ingredients to ensure that the planned production of cakes can be made otherwise bakers may not be able to bake the batches of cakes ordered. (4 marks for L2 answer + 1 application mark for mentioning bakers and making cakes.)
17. Level 3: For L3 to be awarded there needs to be at least two L2 marks awarded and then a recommendation which justifies the most important management function, e.g. planning will be the most important management function because if the Operations Manager does not plan efficiently then workers may not work effectively. They could be waiting for ingredients to arrive and not be able to work. This is more important than commanding the workers to do their work as if they do not have ingredients then commanding them to work will not be effective.
18. Award up to 2 additional marks for relevant application.
19. Possible application marks for (b): cake manufacturing; constantly develops a new range of cakes; e-commerce; Figures from Appendix 2; new markets abroad; large supermarkets; small food shops; 125 workers; may need to make some workers redundant; automated production line; efficiency increases by 10% for option A; investment of $8m; 10 production employees for option B.
20. There may be other examples in context which have not been included here.