The Insert contains the case study.

Mark scheme

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

1. [2 × 1] Knowledge - award one mark for each relevant way
2. [2 × 1] Analysis – award one mark for a relevant explanation for each way
3. [2 × 2] Application – award two application marks for each way
4. Award one mark for each relevant way (maximum of two), such as:
5. [1] It helps to secure a bank loan or overdraft
6. [1] The entrepreneur thinks ahead and plans out carefully the next few years
7. [1] Reduces risks of failure as the owners have thought through problems the business might have
8. [1] To clarify the aims and objectives / targets to aim for
9. [1] Aids financial planning
10. Award a maximum of three additional marks for each explanation – 2 of which must be applied to this context - of the way a business plan might help make the business successful.
11. Indicative response: A business plan reduces risk for the business (k) as Samah and Selina will have thought through problems such as where to source their ingredients for the ice cream and what it will cost them (ap). This will allow them to prepare for any problems and stop these causing difficulties for the business (an). This might include preparing for cash flow problems at times of the year when demand is low (ap).
12. Possible application marks: partnership; produces ice cream; high quality ingredients; expensive ingredients; ice cream sold for a high price; borrow finance easily from the bank; sales increased for four years; demand high for 6 months; cost / revenue data from appendix 3; new products / flavours; redundant workers; have taken out a bank loan; high income consumers.
13. There may be other examples in context which have not been included here.
14. Knowledge / Analysis / Evaluation – award up to 10 marks using the levels-based mark scheme below.
15. Relevant points might include:
16. Advantages (Full-time workers): Likely to be better trained
17. Advantages (Full-time workers): More committed to the business
18. Advantages (Full-time workers): More likely to be trained / skilled than part-time workers
19. Advantages (Full-time workers): Feel secure in job – more motivated (although several made redundant)
20. Advantages (Part-time workers): More flexible hours
21. Advantages (Part-time workers): Easier to extend hours at busy times
22. Advantages (Part-time workers): Accept lower pay as fits in with family commitments
23. Level 3: At least 2 x Level 2 + 9-10 marks for well justified recommendation as to the best type of worker to employ compared to the other type of worker.
24. Level 3: 7-8 marks for some limited judgement shown in recommendation as to the best type of worker to employ.
25. Level 2: 4-6 marks - Detailed discussion of advantages of part-time and / or full-time workers.
26. Level 1: 1-3 marks - Outline of advantages of part-time and / or full-time workers.
27. Level 1 – 1 mark for each L1 statement (max of 3 marks) e.g. part-time workers are more flexible in the hours they are willing to work.
28. 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. part-time workers are more flexible in the hours they are willing to work. This will allow Samah and Selina to reduce the hours of these workers when demand for ice cream is low for 6 months of the year, thus reducing wage costs (4 marks for L2 answer + 1 application mark for mentioning ice cream and demand being low for 6 months of the year).
29. Level 3 - For L3 to be awarded there needs to be at least two L2 marks awarded and then a recommendation which justifies which is the best combination to choose.
30. Award up to 2 additional marks for relevant application.
31. Possible application marks: partnership; produces ice cream; high quality ingredients; expensive ingredients; ice cream sold for a high price; borrow finance easily from the bank; sales increased for four years; demand high for 6 months; cost / revenue data from appendix 3; new products / flavours; redundant workers; have taken out a bank loan; high income consumers.
32. There may be other examples in context which have not been included here.