AQA A-level BUSINESS 7132/2 PAPER 2 2020 MS

AQA A-level BUSINESS 7132/2 PAPER 2 2020 MS. Level of response marking instructions Level of response mark schemes are broken down into levels, each of which has a descriptor. The descriptor for the level shows the average performance for the level. There are marks in each level. Before you apply the mark scheme to a student’s answer read through the answer and annotate it (as instructed) to show the qualities that are being looked for. You can then apply the mark scheme. Step 1 Determine a level Start at the lowest level of the mark scheme and use it as a ladder to see whether the answer meets the descriptor for that level. The descriptor for the level indicates the different qualities that might be seen in the student’s answer for that level. If it meets the lowest level then go to the next one and decide if it meets this level, and so on, until you have a match between the level descriptor and the answer. With practice and familiarity you will find that for better answers you will be able to quickly skip through the lower levels of the mark scheme. When assigning a level you should look at the overall quality of the answer and not look to pick holes in small and specific parts of the answer where the student has not performed quite as well as the rest. If the answer covers different aspects of different levels of the mark scheme you should use a best fit approach for defining the level and then use the variability of the response to help decide the mark within the level, ie if the response is predominantly level 3 with a small amount of level 4 material it would be placed in level 3 but be awarded a mark near the top of the level because of the level 4 content. Step 2 Determine a mark Once you have assigned a level you need to decide on the mark. The descriptors on how to allocate marks can help with this. The exemplar materials used during standardisation will help. There will be an answer in the standardising materials which will correspond with each level of the mark scheme. This answer will have been awarded a mark by the Lead Examiner. You can compare the student’s answer with the example to determine if it is the same standard, better or worse than the example. You can then use this to allocate a mark for the answer based on the Lead Examiner’s mark on the example. You may well need to read back through the answer as you apply the mark scheme to clarify points and assure yourself that the level and the mark are appropriate. Indicative content in the mark scheme is provided as a guide for examiners. It is not intended to be exhaustive and you must credit other valid points. Students do not have to cover all of the points mentioned in the Indicative content to reach the highest level of the mark scheme. An answer which contains nothing of relevance to the question must be awarded no marks. MARK SCHEME – A-LEVEL BUSINESS – 7132/2 – JUNE 2020 4 Marking guidance • Be clear on the focus of the question. • Read the response as a whole; follow the flow of the argument as a whole. • Remember that the indicative content provides possible lines of argument but there may be others that are equally valid. Be willing to credit other lines of argument. • Annotate the script as you read in accordance with the instructions given at standardisation. • Consider what it all adds up to, eg is this a good response? A reasonable one? A limited one? Refer back to the standardisation scripts and guidance to help you benchmark. You are marking to the standard agreed at standardisation. Be careful of the standard you are marking at drifting when you have a big centre; refer back to standardisation scripts. • Summarise your findings briefly at the end of the response. This will help you decide on the overall level and is helpful for others to understand the mark given, eg for an extended response ‘well-argued’ but does not focus fully on the issue of ‘long-term’ feels as if it might be good rather than excellent. Make sure the comments fit with the level awarded: ‘unbalanced and not comparing with alternative solutions’ does not sound as if it is ‘good’. • Next to your comment put the level awarded, eg L4. • If in doubt about an approach contact your Team Leader, do not make up your own rules because we must have a standardised approach across all marking. Be positive in your marking. Look to reward what is there. Annotations Key AO linked: KU Knowledge and Understanding AN Analysis without context DEV Developed argument BAL Balance of arguments RNG Range of arguments (will have to be in a comment box) Eval Judgement/Evaluation General ? Question mark - uncertain Tick Correct point Cross Incorrect BOD Benefit of Doubt LF / NFF Losing Focus / Not Fully Focused NAQ Not answered question OFR Own figure rule – REP Repetition - MARK SCHEME – A-LEVEL BUSINESS – 7132/2 – JUNE 2020 5 SEEN Indicates that the point has been noted, but no credit has been given Highlighter High-lighter tool – use to emphasise particular sections Free text box – use this for making comments at end of sections/answers. It is expected that examiners will make comments outlining/summarising marking decisions as appropriate. MARK SCHEME – A-LEVEL BUSINESS – 7132/2 – JUNE 2020 6 0 1 . 1 Using the data in Appendix C, calculate the following ratios for Drake Hotels PLC in 2020. [6 marks] Marks for this question: AO1 = 2, AO2= 4 Current ratio 0.83:1 or 0.83 (3 marks) 3 marks for correct answer 1 mark for correct selection of current asset £15m 1 mark for correct selection of current liabilities £18m Formula alone = 1 mark Gearing 62.22% (3 marks) 3 marks for correct answer 1 mark for correct selection of non-current liabilities £280m 1 mark for correct calculation of capital employed £450m Formula alone = 1 mark OFR applies. MARK SCHEME – A-LEVEL BUSINESS – 7132/2 – JUNE 2020 7 0 1 . 2 Use Appendix B to explain one reason why Drake Hotels PLC has used sensitivity analysis for the investment proposal. [4 marks] Marks for this question: AO1 = 2, AO2 = 2 Level The student will typically demonstrate: Marks 3 A reasonable response overall that focuses on many of the demands of the question. • Explains one reason why Drake Hotels uses sensitivity analysis for this investment proposal. 4 2 A reasonable response overall that focuses on some of the demands of the question. • Explains one reason why a business might use sensitivity analysis when making a decision. 3–2 1 A limited response overall that focuses on a few demands of the question. • Some understanding of the sensitivity analysis. 1 The demands of the question are: • explain one reason sensitivity analysis • is used by Drake Hotels for this investment proposal. Indicative content: • sensitivity analysis considers what would happen if there were changes in the initial assumptions behind a calculation • in this case the business is considering the effect of a change in exchange rates or overseas income which would change the likely net inflows and therefore change the expected values of ARR and net present value. MARK SCHEME – A-LEVEL BUSINESS – 7132/2 – JUNE 2020 8 0 1 . 3 Analyse the challenges the Human Resource manager faces as a result of the patterns of room bookings in Appendix E. [9 marks] Marks for this question: AO1 = 2, AO2 = 3, AO3 = 4 Level The student will typically demonstrate: Marks 3 A good response overall that focuses on many of the demands of the question. Provides an answer to the question set that: • demonstrates a depth and range of knowledge and understanding of issues in the question • demonstrates analysis which is well-developed and is applied effectively to the context. 7–9 2 A reasonable response overall that focuses on some of the demands of the question. Provides an answer to the question set that: • demonstrates a limited knowledge and understanding of a range of issues in the question or a good knowledge and understanding of relatively few issues in the question • demonstrates analysis which is developed and is applied to the context. 4–6 1 A limited response overall with little focus on the demands of the question. Provides an answer to the question set that: • demonstrates a limited range and depth of knowledge and understanding of issues in the question • demonstrates analysis with little development and with mainly descriptive application to the context. 1–3 The demands of the question are: • to analyse challenges the Human Resources manager might face • as a result of the patterns of room bookings in Appendix E. Indicative content: • the data in Appendix E shows that room bookings vary throughout the year; the business is seasonal as you might expect for a hotel • this seasonality will affect the HR manager because staffing levels will need to vary. HR may want to employ people on temporary contracts (eg only over summer) so that the hotel is not committed to salaries when staff are not needed. The challenge will be to recruit people at certain times of the year • the data also shows variation during a week. To match demand requirements the challenges for the HR manager will be to vary the labour requirement; in this case wanting part time staff on Friday and Saturdays • challenges might include getting well trained staff for short periods of time; getting employee engagement if only there for part of the week or part of the year. Allow other relevant arguments. MARK SCHEME – A-LEVEL BUSINESS – 7132/2 – JUNE 2020 9 0 1 . 4 Using the data, recommend whether Drake Hotels PLC should go ahead with the proposed investment. Justify your answer. [16 marks] Marks for this question: AO1 = 2, AO2 = 3, AO3 = 4, AO4 = 7 Level The student will typically demonstrate: Marks 4 An excellent response overall that is fully focused on the key demands of the question. Provides an answer to the question set that: • demonstrates a depth and range of knowledge and understanding that is precise and well-selected in relation to issues in the question • demonstrates analysis throughout which is well-developed, is applied effectively to the context and considers a balanced range of the issues in the question • makes judgements or provides solutions which are built effectively on analysis, show balance and have a clear focus on the question as a whole throughout. 13–16 3 A good response overall that focuses on many of the demands of the question. Provides an answer to the question set that: • demonstrates a depth and range of knowledge and understanding of issues in the question • demonstrates analysis which is well-developed, applied effectively to the context and considers a range of issues in the question • makes judgements or provides solutions which are built on analysis, show balance and address the question as a whole throughout. 9–12 2 A reasonable response overall that focuses on some of the demands of the question. Provides an answer to the question set that: • demonstrates a limited knowledge and understanding of a range of issues in the question or a good knowledge and understanding of relatively few issues in the question • demonstrates analysis which is developed, applied to the context and considers some of the issues in the question • makes judgements or provides solutions which are built on analysis, but lack balance and not fully focused on the question as a whole. 5–8 1 A limited response overall with little focus on the demands of the question Provides an answer to the question set that: • demonstrates a limited range and depth of knowledge and understanding of issues in the question • demonstrates analysis with little development, mainly descriptive application to the context and considers a limited number of issues in the question • makes judgements or proposes solutions which have limited links to analysis or limited focus on the question as a whole. 1–4 MARK SCHEME – A-LEVEL BUSINESS – 7132/2 – JUNE 2020 10 The demands of the question are: • use the data to analyse arguments for and against the proposed investment • to recommend whether Drake Hotels should go ahead with the proposed investment into the new hotel. Indicative content: • the hotel has a 12% ARR which is higher than the cost of borrowing (8%) and much higher than its current ROCE (profit is £18m; Capital employed £450 m; ROCE 4%) • the project has a positive NPV showing that the present value of its discounted returns are higher than the initial costs • there is a 30% probability of income overseas being even higher which, given that demand is income elastic (+2) and that 70% of customers are from overseas, would benefit the hotel • Mary has experience of upmarket (luxury) hotels; she was brought in to increase profitability and this seems to achieve this objective. However, need to consider: • finance - gearing is already relatively high at 62.2% and if the business borrowed an additional £20m this would rise • there is 20% of an unfavourable exchange rate change which would probably decrease overseas visitors and reduce the returns • move from budget to premium; will this cause an issue with branding and perception? • quality of data- is the new Chief Executive eager to show they have a good plan? Mary’s background is marketing; need to ensure the financial data is right. Overall, there seems a very strong case for the new hotel; there are finance issues but if forecasts are right the returns will cover interest payments. We may just want to check her/his projections before finally deciding.