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Mark Scheme (Results)

Summer 2023

International A Level in
Business (WBS11)
Unit 1: Marketing and people
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May 2023
Question Paper Log Number P72043A
Publications Code WBS11_01_2306_MS
All the material in this publication is copyright
© Pearson Education Ltd 2023
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General Marking Guidance

• All candidates must receive the same treatment. Examiners

must mark the first candidate in exactly the same way as they
mark the last.
• Mark schemes should be applied positively. Candidates must
be rewarded for what they have shown they can do rather than
penalised for omissions.
• Examiners should mark according to the mark scheme not
according to their perception of where the grade boundaries
may lie.
• There is no ceiling on achievement. All marks on the mark
scheme should be used appropriately.
• All the marks on the mark scheme are designed to be awarded.
Examiners should always award full marks if deserved, i.e. if
the answer matches the mark scheme. Examiners should also
be prepared to award zero marks if the candidate’s response
is not worthy of credit according to the mark scheme.
• Where some judgement is required, mark schemes will
provide the principles by which marks will be awarded and
exemplification may be limited.
• When examiners are in doubt regarding the application of the
mark scheme to a candidate’s response, the team leader must
be consulted.
• Crossed out work should be marked UNLESS the candidate has
replaced it with an alternative response.
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Question Define the term ‘product differentiation’ Mark

Answer
1(a) Knowledge 2

Up to 2 marks for defining the term ‘product differentiation’ e.g.

• Any aspect or feature of a product or service (1) that
distinguishes it from its competitors (1)
(2)

Question Construct a supply and demand diagram to show the impact on Mark
the market for sportswear from an increase in advertising
Answer

1(b) Knowledge 1, Application 2, Analysis 1

Quantitative skills assessed:

QS3: construct and interpret a range of standard graphical forms.

Knowledge
1 mark for correctly constructing a supply and demand diagram with
correctly labelled axes as ‘price’ and ‘quantity’ (1)

Application
Up to 2 marks for: Showing the original equilibrium (1)
Shifting the demand curve to the right (1)

Analysis
1 mark for showing the new equilibrium and its effect on price
(increasing) and quantity demanded (increasing) (1)

(4)
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Question Analyse two methods that Li-Ning could have used to develop Mark
customer loyalty.

Answer

1(c) Knowledge 2, Application 2, Analysis 2

Up to 2 marks for defining customer loyalty e.g.

• the likelihood that current customers (1) continue to buy from a
specific seller (1).
OR

For giving two methods to develop customer loyalty e.g.

• providing innovative products (1) responding to customer
feedback (1)

Application
2 marks for answers that contextualise the methods, e.g.
• Li-Ning used technology to develop the sports equipment and
provide innovative ranges of sportswear (1)
• Li-Ning uses social media to gather feedback of its customers (1)

Analysis
Up to 2 marks for reasons/causes/consequences of the methods e.g.
• Sportswear consumers interested in buying high performance
and technically advanced products may repeat purchase from Li-
Ning rather than buy from competitors (1)

• The feedback from social media may be used to address any

problems resulting in improved customer service which should
retain customers (1) (6)
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Question Discuss the possible difficulties Li may have met as a result of this move.

Indicative content

1(d) Indicative content guidance

Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of the
points that candidates may make but this does not imply that any of these must
be included. Other relevant points must also be credited.

Knowledge, Application, Analysis, Evaluation – indicative content

• An entrepreneur is someone who starts a business and takes

risks. A leader is a person who inspires and motivates others to
meet objectives
• As an entrepreneur, Li founded the business by pursuing his own
business idea to support the Olympic team. He may have found
it difficult to share decision making and control with others as
the business grew
• Li was a gymnast for many years and so may have lacked the
experience and qualities needed to lead a team in a business
• However, Li may have had the ability to delegate and trust other
employees. Li-Ning employs a large team to take responsibility
for research and development of innovative designs
• Li was likely to have shown characteristics such as resilience and
commitment as a gymnast. These same qualities are required to
become a good leader
• There are similarities between entrepreneurs and leaders as
they both have the inspiration and motivation to succeed.
Therefore, Li may not have encountered many difficulties when
he became leader of the business
• Li-Ning is now a large successful business competing with major
sportswear brands. This may indicate that Li overcame any
difficulties and has led the business effectively

Level Mark Descriptor

0 No rewardable material.
Level 1 1–2 Isolated elements of knowledge and understanding – recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–5 Accurate knowledge and understanding.
Applied accurately to the business and its context.
Chains of reasoning are presented, showing cause(s) and/or effect(s)
but may be assertions or incomplete.
An attempt at an assessment is presented that is unbalanced and
unlikely to show the significance of competing arguments.
Level 3 6–8 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Logical chains of reasoning, showing cause(s) and/or effect(s).
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Assessment is balanced, well contextualised, using quantitative and/or

qualitative information, and shows an awareness of competing
arguments/factors.
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Question Assess the advantages of using market segmentation for a business such as Li-
Ning
Indicative content

1(e) Indicative content guidance

Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of the
points that candidates may make but this does not imply that any of these must
be included. Other relevant points must also be credited.

Knowledge, Application, Analysis, Evaluation – indicative content

• Segmentation is dividing the market into groups of people with similar

attributes or common characteristics
• Li-Ning segments the market by income and behavioural characteristics
• Focusing on specific market segments allows a business such as
Li-Ning to analyse segments of the markets and tailor products to meet
the particular needs of those customers
• Market segmentation helps to direct advertising and promotion to
specific groups of customers, e.g. those looking for badminton or
basketball equipment, or high-spec running shoes. This helps to make
their marketing more effective
• Market segmentation can help sports suppliers to identify underserved
customers, such as pickleball, which provide the opportunity to
increase sales
• It helps give a business the opportunity to focus on the most profitable
and productive segments of the market to increase revenue and
profitability
• However, segmentation increases costs. When a firm attempts to serve
different groups of customers the cost of production rises as well as
research, promotion and distribution costs
• By focusing on specific sports there is a danger that this specialisation
could lead to problems if consumers change their purchasing habits
significantly
• The market segments identified may be too small, e.g. pickleball, and
may not generate sufficient sales to be viable/profitable for the
business
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Level Mark Descriptor

0 A completely inaccurate response.
Level 1 1–2 Isolated elements of knowledge and understanding – recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–4 Elements of knowledge and understanding, which are applied to the
business example.
Chains of reasoning are presented, but may be assertions or
incomplete.
A generic or superficial assessment is presented.
Level 3 5–7 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Analytical perspectives are presented, with developed chains of
reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using quantitative and/or
qualitative information, though unlikely to show the significance of
competing arguments.
Level 4 8–10 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
A coherent and logical chain of reasoning, showing cause(s) and/or
effect(s).
Assessment is balanced, wide ranging and well contextualised, using
quantitative and/or qualitative information and shows an awareness of
competing arguments/factors, leading to a supported judgement.
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Question Define the term ‘market share’ Mark

Answer
2(a) Knowledge 2

Up to 2 marks for defining the term ‘market share’ e.g.

• the percentage/proportion of sales in a market (1) held by a
business or a product (1).
(2)

Question Calculate, to two decimal places, the percentage change in the Mark
number of meals donated by Mindful Chef between 2020 and 2021
Answer

2(b) Knowledge 1, Application 2, Analysis 1

Quantitative skills assessed:

QS2 Calculate, use and understand percentages and percentage
change

Knowledge
1 mark for identifying a suitable formula for percentage change:
• Difference in quantity / original quantity x 100 (1)

Application
Up to 2 marks for: selecting the correct data
• 4.7 - 4.2 (1) / 4.2 (1) x 100

Analysis
1 mark for calculating the percentage change
• 11.90% (1).

NB if no working is shown award marks as below:

If the answer given is 11.90% award 4 marks.
If the answer given is 11.90 award 3 marks.

(4)
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Question Analyse two factors that are likely to determine the pricing strategy Mark
used by UK businesses supplying food boxes.
Indicative content guidance

2(c) Knowledge 2, Application 2, Analysis 2

Knowledge
Up to 2 marks for defining pricing strategy, e.g.
• A method used by a business when deciding (1) the price at which
a product is sold for (1).

OR

For giving two factors that may determine the pricing strategy, e.g.
• Level of competition (1); Amount of differentiation (1).

Application
Up to 2 marks for answers contextualised to UK businesses supply
food boxes, e.g.
• Mindful Chef is one of the three main suppliers of food boxes in the
market (1).
• Mindful Chef differentiates itself by providing a wide range of
vegetarian, vegan and gluten-free food boxes (1).

Analysis
Up to 2 marks for reasons/causes/consequences for the business e.g.
• This may lead to a business using a competitive price due to the
availability of substitutes (1).
• Business providing goods that respond to changes in social
trends/eating habits may be able to use high/premium pricing (1).

(6)
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Question Discuss the advantages to the owners of Mindful Chef of using surveys collected
from their family and friends.

Indicative content

2(d) Indicative content guidance

Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of the
points that candidates may make but this does not imply that any of these must
be included. Other relevant points must also be credited.

Indicative content

• Primary market research is new data collected, which is specific to

the needs of the business. It is referred to as field research
• Using a survey to gather data may have helped Mindful Chef
to gain an insight into consumer preferences. This may have
helped them to improve the recipes before launching on a
larger scale and so prevent costly mistakes
• Rather than surveying the general public, using family and
friends to gather research is likely to be a cheaper and
quicker option. This would have saved costs for the three
friends. It may have allowed them to enter the market
quicker and benefit from first mover advantages
• The feedback from family and friends could possibly be more
reliable than from the general public as they may be honest in
their feedback
• However, using surveys could result in biased results. Family
members may not be honest in their feedback if they fear this
will cause conflicts in the family. This may have resulted in
launching the wrong recipes
• The owners may not have been experienced in writing and
conducting surveys or analysing the results. This may have
led to wasted time/resources and inaccurate data
• Results from surveying only family and friends may not be
conclusive as the feedback may not be representative of other
groups of customers

Level Mark Descriptor

0 No rewardable material.
Level 1 1–2 Isolated elements of knowledge and understanding – recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–5 Accurate knowledge and understanding.
Applied accurately to the business and its context.
Chains of reasoning are presented, showing cause(s) and/or effect(s)
but may be assertions or incomplete.
An attempt at an assessment is presented that is unbalanced, and
unlikely to show the significance of competing arguments.
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Level 3 6–8 Accurate and thorough knowledge and understanding, supported

throughout by relevant and effective use of the business
behaviour/context.
Logical chains of reasoning, showing cause(s) and/or effect(s).
Assessment is balanced, well contextualised, using quantitative and/or
qualitative information and shows an awareness of competing
arguments/factors.
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Question Assess the impact on Mindful Chef of its social objectives

Indicative content

2(e) Indicative content guidance

Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of the
points that candidates may make but this does not imply that any of these must
be included. Other relevant points must also be credited.

Knowledge, Application, Analysis, Evaluation – indicative content

• Social objectives are a company’s goals and commitment to manage

the impact of its operations on others. This is also referred to as
corporate social responsibility (CSR)
• Mindful Chef donates a school meal to a child living in poverty for
every meal it sells in the UK. It also buys from local farmers and
uses recyclable packaging
• For some customers, the social goals and practices of a company
are important which may increase sales and encourage repeat
purchase of Mindful Chef food boxes
• Pursuing social objectives may lead to increased media coverage
for a business and increased demand. Helping to tackle poverty
may help to improve the public image of the company and may
lead to high levels of revenue for Mindful Chef
• A benefit of focussing on social goals is the possibility of attracting
new investors/employees if the social goals align with
investor’s/employee’s views
• However social objectives can increase the costs for the company.
Donating meals to help reduce poverty is likely to be an expensive
commitment. This may impact the costs/competitiveness for the
business in the UK market
• Using sustainable and recyclable materials pushes up costs and
prices of goods. If price is an important factor to consumers, they
are likely to buy from rivals such as Gousto
• It depends if customers are ethically minded and are aware of the
social objectives of Mindful Chef
• Overall if the social objectives provide a USP for the business it will
differentiate the business from its competitors. This is likely to have
a positive impact and increase revenue and profits of Mindful Chef

Level Mark Descriptor

0 No rewardable material.
Level 1 1–2 Isolated elements of knowledge and understanding – recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–4 Elements of knowledge and understanding, which are applied to the
business example.
Chains of reasoning are presented but may be assertions or incomplete.
A generic or superficial assessment is presented.
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Level 3 5–7 Accurate and thorough knowledge and understanding, supported

throughout by relevant and effective use of the business
behaviour/context.
Analytical perspectives are presented, with developed chains of
reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using quantitative and/or
qualitative information, though unlikely to show the significance of
competing arguments.
Level 4 8–10 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
A coherent and logical chain of reasoning, showing cause(s) and/or
effect(s).
Assessment is balanced, wide ranging and well contextualised, using
quantitative and/or qualitative information, and shows an awareness of
competing arguments/factors, leading to a supported judgement.
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Question Evaluate the extent to which the changes to Unilever’s organisational structure
may improve business efficiency and employee motivation
Indicative content

3 Indicative content guidance

Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of the
points that candidates may make but this does not imply that any of these must
be included. Other relevant points must also be credited
Knowledge, Application, Analysis, Evaluation – indicative content

• An organisational structure shows the roles, responsibilities, and

hierarchy of employees in an organisation
• A matrix structure organises employees from different disciplines or
divisions into projects/teams
• A flat structure has fewer levels of hierarchy, and a wider span of
control
• Creating business groups may allow teams and managers to focus their
attention on one specific area of the business. This responsibility may
motivate the employees to succeed in their business group
• Flattening the structure will reduce labour costs which may result in
lower prices or increased profitability, enabling Unilever to be more
competitive
• Reducing the number of senior managers will shorten the chain of
command and allow ideas and instructions to be communicated quickly,
enabling Unilever to be more responsive to customer needs
• However, moving from a matrix structure may have its
disadvantages; one advantage of having a matrix organisation is
that it encourages the sharing of ideas and good practice which may
have helped the business to be more effective
• Removing 15% of the senior managers from the hierarchy may create
skills shortages within the business and Unilever may lose managers
with valuable experience
• Job losses can have a negative impact on motivation and employees
may seek other employment. Unilever may encounter high recruitment
and redundancy cost, reducing its profitability
• Managers remaining after the re-organisation will have a wider span of
control which, may damage communication within the business
• Replacing the senior managers with junior managers may result in
lower efficiency if the junior managers do not have sufficient knowledge
and experience
• It depends on whether the changes can be made effectively, and staff
are not demotivated in the process.
• Overall, the structure should give focus to specific business areas and
enable managers to focus on the strategy of the business group. The
new structure should be introduced carefully to ensure a smooth
transition and prevent key skills being lost to competitors

Level Mark Descriptor

0 No rewardable material.
Level 1 1–4 Isolated elements of knowledge and understanding.
Weak or no relevant application of business examples.
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An argument may be attempted, but will be generic and fail to connect

causes and/or consequences.
Level 2 5–8 Elements of knowledge and understanding, which are applied to the
business example.
Arguments and chains of reasoning are presented but connections
between causes and/or consequences are incomplete. Attempts to
address the question.
A comparison or judgement may be attempted but it will not
successfully show an awareness of the key features of business
behaviour or business situation.
Level 3 9–14 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Uses developed chains of reasoning, so that causes and/or
consequences are complete, showing an understanding of the question.
Arguments are well developed.
Quantitative and/or qualitative information is introduced in an attempt
to support judgements, a partial awareness of the validity and/or
significance of competing arguments and may lead to a conclusion.
Level 4 15–20 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Uses well-developed and logical, coherent chains of reasoning, showing
a range of cause and/or effect(s).
Arguments are fully developed.
Quantitative and/or qualitative information is/are used well to support
judgements. A full awareness of the validity and significance of
competing arguments/factors, leading to balanced comparisons,
judgements and an effective conclusion that proposes a solution and/or
recommendations.