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Title: Edexcel a level business question paper 3 june 2024 + mark scheme
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE A Level In Business (9BS0) Paper 03 Investigating Business in a competitive environment
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE A Level In Business (9BS0) Paper 03 Investigating Business in a competitive environment
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Edexcel a level business
question paper 3 june
2024 + mark scheme
Please check the examination details below before entering your candidate information
Candidate surname
Centre Number
Other names
Candidate Number
Pearson Edexcel Level 3 GCE
Thursday 6 June 2024
Morning (Time: 2 hours)
Paper
reference
Business
9BS0/03
Advanced
PAPER 3: Investigating business in a competitive
environment
You must have:
Source Booklet (enclosed)
Total Marks
Instructions
Use black ink or ball-point pen
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There are two sections in this question paper
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the questions in the spaces provided
• Answer
– there may be more space than you need
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•
marks for each question are shown in brackets
• The
– use this as a guide as to how much time to spend on each question
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Advice
Read each question carefully before you start to answer it
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•
• Check your answers if you have time at the end
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F:1/1/1/1/1/
*P75857A0124*
Read the extracts (A to C) in the Source Booklet before answering Question 1
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*P75857A0524*
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(c) Assess the importance of business ethics to the success of Vinted
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It is reviewing the source of its clothing inventory (stock)
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(d) Using the data in Extract C, evaluate these two options and recommend which
one is likely to support Mango’s aim of delivering the latest fashion trends to
UK customers
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*P75857A0924*
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(Total for Question 1 = 50 marks)
TOTAL FOR SECTION A = 50 MARKS
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SECTION B
Read the extracts (D to G) in the Source Booklet before answering Question 2
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(b) Assess the importance of scenario planning for Jonathan Trumbull Ltd
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(d) Using the data in Extracts D to G, evaluate these two options and recommend
which one will help Jonathan Trumbull Ltd compete effectively
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Context
year the context is the clothing retail and manufacturing industries and the
• This
businesses operating in this market
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cannot take any of your research or investigation data carried out as part of
• You
the pre-release into the examination
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F:1/1/1/1/1/
*P75857A*
SECTION A
Read the following extracts (A to C) before answering Question 1
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It operates across Europe and the USA, and recently raised
€250m in share capital to help fund expansion into new markets
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Sellers pay
no fees until the items are sold and then Vinted receives a percentage of the selling price
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Vinted is part of the circular economy which describes how goods, such as clothing, are
recycled and re-sold, helping to prolong usage in a sustainable way
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In the UK, charity shops are a significant channel for used goods, where people
donate clothes to help organisations such as the British Heart Foundation, which sell
them in physical stores to raise funds
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10
(Source: adapted from https://techcrunch
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The rise of resale clothing
The secondhand clothing market will grow three times faster than the global clothing
market overall
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With customer incomes
squeezed, resale helps with affordability
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Sustainability
Fast-fashion brands are sometimes criticised for the methods they use to manufacture
and produce clothing, involving long global supply chains
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10
3
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This expense is driving many fashion brands back into traditional retail
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15
(Source: adapted from https://www
...
com/uk/enterprise/ecommerce-fashion-industry)
P75857A
3
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Extract C
Clothes manufacturing in China
Value of textile exports ($bn, 2020)
Asia
Vietnam
38
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26
Europe
151
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76
India
29
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52
Rest of Asia
87
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15
Africa
less than 20
Australasia
less than 10
(Source: adapted from OEC)
Previously clothing brands were attracted to China by a large labour force, low
labour costs, clothing manufacturing technology, and high product quality
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Fast-fashion brand
Shein has its base in China
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“What
we’re looking at is the extent to which all this global sourcing, developed over many
years, might become more local,” he said
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Products manufactured in China are not as competitive
once shipping and transport costs are taken into account
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Many clothing brands are moving production to Turkey, which has a customs
agreement with the European Union
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Turkey has easy access to raw materials, such as cotton, as well as having a skilled
workforce protected by strong labour laws
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10
15
(Source: adapted from https://www
...
com/content/0e23cf24ed9c-4a0a-916c-7059d3795b93)
4
P75857A
SECTION B
Read the following extracts (D to G) before answering Question 2
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John’s son, David Kingsley, is still a director and manager and is one of 20 staff
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Estimated expansion costs for one of these stores ranges between
£25 000 and £30 000
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The business sells clothing from a variety of
brands, including Armani, Tom Ford, and Moschino
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It stocks a wide
variety of additional labels, including an extensive range of suits and formalwear, which
may not appear in stores
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Expansion of e-commerce could cost 30% more than the original set-up cost
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It has regularly been voted one of the top five retail destinations in the UK
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jonathantrumbull
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uk/
about-us-i2 and interview with manager)
Extract E
Ginger reopens in its former shop
Ginger is part of the Jonathan Trumbull Ltd retail group, one of Norwich’s
longest-established businesses
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Beckie Kingsley is the store manager
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Beckie said: “When the building
became available, we thought we would come back
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It has a great community spirit, and it is full of thriving independent shops, including
other fashion retailers
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Timberhill is a beautiful street, near lovely green areas
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”
5
10
(Source: adapted from https://www
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co
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high-end-boutique-reopens-former-shop/)
P75857A
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Extract F
Extract from Jonathan Trumbull Ltd’s statement of financial position
2022
2021
30 683
30 568
Inventory (£)
639 340
687 560
Receivables (£)
13 518
45 171
Cash (£)
491 844
299 732
1 144 702
1 032 463
345 824
417 974
Fixed assets (£)
Current assets (£)
Total current assets (£)
Creditors due within 12 months (£)
(Source: adapted from © Crown copyright)
Extract G
Competition for Jonathan Trumbull Ltd
In 2023, the multinational clothing retailer, Urban Outfitters, announced the opening of
its store in Chantry Place, Norwich’s biggest shopping mall
...
5
Urban Outfitters began in 1970 in the USA, and now operates more than 200 stores in
North America and Europe
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Online sales increased by 150% in 2022, however Urban Outfitters is also opening new
stores
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Its store layouts are more varied between
locations than other retailers, based on stylish loft apartments, with features such as
exposed ceilings and wooden floors
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eveningnews24
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uk/news/
business/22318417
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medium
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We provide a wide range of qualifications including academic, vocational,
occupational, and specific programmes for employers
...
edexcel
...
btec
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uk
...
edexcel
...
Pearson: helping people progress, everywhere
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Our aim is to help everyone
progress in their lives through education
...
We’ve been involved in education for
over 150 years, and by working across 70 countries, in 100 languages, we have built
an international reputation for our commitment to high standards and raising
achievement through innovation in education
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pearson
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© Pearson Education Ltd 2024
General Marking Guidance
•
All candidates must receive the same treatment
...
•
Mark schemes should be applied positively
...
•
Examiners should mark according to the mark
scheme not according to their perception of where the
grade boundaries may lie
...
All marks on the
mark scheme should be used appropriately
...
Examiners should always award full marks if
deserved, i
...
, if the answer matches 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
...
•
Crossed out work should be marked UNLESS the
candidate has replaced it with an alternative response
...
●
Vinted has raised €250m from selling additional shares
to investors invited by existing shareholders to help fund
expansions into new markets
As Vinted is a private limited company it means existing
shareholders control who can buy new shares in the
business, increasing financial control and preventing a
takeover from rivals, such as Alibaba
Limited liability is less risky for shareholders, such Milda
Mitkute and Justas Janauskas, compared to a different
form of business, such as a partnership, as they are not
responsible for the debts if the business fails
...
(8)
Descriptor
0
•
A completely inaccurate response
...
Weak or no relevant application to business examples
...
•
•
Level 2
3–5
• Accurate knowledge and understanding
...
• An attempt at an assessment is presented using quantitative
and/or qualitative information
• Supported throughout by use of the business
behaviour/context, though unlikely to show the significance of
competing arguments
...
• Logical chains of reasoning, showing cause(s) and/or
effect(s)
...
Arguments for global clothing markets being dynamic
● The second-hand clothing market is growing three times
faster than the global clothing market overall, which
shows how customer demand is changing
● Online retail continues to increase in the clothing market,
with technology, such as eBay, such as providing new
opportunities to purchase
● Greater consideration of sustainability from customers is
encouraging retailers to review their supply chains to
address this issue
● Tastes and fashions change, so businesses need to
respond to this in a dynamic way, through stock ordering
and marketing
...
Possible judgement
●
●
The clothing market is dynamic because tastes and
fashions change, and retail businesses need to adjust
their stock accordingly
...
The clothing retail market is changing gradually, rather
than dynamically
...
(10)
Level
Level 1
Mark
Descriptor
0
•
A completely inaccurate response
...
Weak or no relevant application to business examples
...
•
•
Level 2
3–4
•
•
•
•
Elements of knowledge and understanding
...
Chains of reasoning are presented but may be
assertions or incomplete
...
Level 3
5–6
• Accurate and thorough knowledge and understanding
...
• An attempt at an assessment is presented using
quantitative and/or qualitative information
• Supported throughout by use of the business
behaviour/context, though unlikely to show the
significance of competing arguments
...
•Assessment is balanced and well contextualised, using
quantitative and/or qualitative information
...
Importance of business ethics
● Environmental sustainability is a big feature of Vinted’s
business model, as it provides a platform for customers to
buy and sell second-hand clothing
● Vinted has taken advantage of the trend particularly
amongst younger consumers resulting from the circular
economy, where prolonged usage of clothing, rather
than wearing a few times and throwing away
● Vinted’s planned focus on developing charitable
donations shows that it sees ethical considerations as a
key part of its success, that it would like to expand on
● 42% of customers have identified the purchase of ecofriendly and sustainable products as important to
them, Vinted is tapping into this market
...
This could be high,
suggesting that Vinted is more interested in profits
than ethics
Other considerations impact on a business’ ethics, such
as the way Vinted treats its staff
...
Possible judgement
●
●
Consumers are increasingly more concerned about
environmental sustainability, particularly considering some
of the problems caused by ‘fast-fashion’
...
Vinted is only providing an online marketplace for buyers
and sellers of second-hand clothing
...
It could be
considered successful because it satisfies a trend for
methods of buying and selling, rather than because it
supports sustainable purchases
...
1–2
•
Isolated elements of knowledge and understanding –
recall based
...
Generic assertions may be presented
...
Which are applied to the business example
...
A generic or superficial assessment is presented
...
• Analytical perspectives are presented, with developed
chains of reasoning, showing cause(s) and/or effect(s)
...
• Supported throughout by use of the business
behaviour/context, though unlikely to show the significance
of competing arguments
...
• A coherent and logical chain of reasoning, showing
cause(s) and/or effect(s)
...
• Supported throughout by relevant and effective use of
the business behaviour/context, and shows an
awareness of competing arguments/factors leading to a
supported judgement
...
Option 1 - China
●
●
●
●
●
China is a world leader in textile exports, selling
$275
...
This shows that it has experience and
expertise in this market, which may be why Mango
currently sources its stock from China
Traditionally China had low labour costs, which is likely to
be passed on in lower prices to retailers such as Mango,
which allows the retailer to either charge low prices or
maintain high profit margins
China’s clothing manufacturing technology means that it
can produce high quality, reliable clothing for export
...
Option 2 - Turkey
●
●
●
●
Turkey has a free trade agreement with the UK
...
This could enable Mango to respond to
changing fashion trends more quickly
Turkey has strong labour laws, so this should lead to less
exploitation of workers compared to some factories in
China
...
Possible recommendation
• Mango’s priority is to meet the needs of its customers for
the latest fashion trends
...
Its closer
geographic proximity, membership of the customs union and
skilled workers, all mean that it is more likely that suppliers
in Turkey can respond to these new trends
...
• China is the location for Mango’s current suppliers, and it
Mark
still remains the world leader in textile exports worth
$275
...
Its developed infrastructure,
technology, and capacity, suggests that it can still be a
suitable production location for Mango’s suppliers
...
Examples of possible ‘MOPS’ recommendations
Market – There is an increased awareness from customers
regarding business ethics and sustainability in clothing
retailing
...
Objectives – Mango is aiming to target customers
interested in the latest trends, therefore quick manufacture
and transportation to its stores makes Turkey more
attractive
...
The expertise it has
developed means it remains a good location for Mango’s
suppliers
...
Other
changes in the market, such as trends in online selling mean
that reliability and experience may be more important in
Mango being supplied with the clothing needed to meet their
(20)
customers’ needs
...
Level 1
1–4
•
•
•
Isolated elements of knowledge and understanding
...
An argument may be attempted, but will be generic and
fail to connect cause(s) and/or consequence(s)/effect(s)
...
• Arguments and chains of reasoning are presented, but
connections between cause(s) and/or consequence(s)/
effect(s) are incomplete
...
• 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
...
• Uses developed chains of reasoning, so that cause(s)
and/or consequence(s)/effect(s) are complete, showing
an understanding of the question
...
• 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
...
• Uses well-developed and logical, coherent chains of
reasoning, showing a range of cause(s) and/or
effect(s)
...
• Quantitative and/or qualitative information are used
well to support judgements
...
Question
Number
2(a)
Indicative content
Mark
Knowledge 2, Application 2, Analysis 2, Evaluation 2
●
Demand measures the amount of a good or service
that people are willing and able to buy at a given
price
...
Falling incomes could lead
customers to demand less new clothing, particularly
expensive designer labels, such as Armani or Tom
Ford
The price of the clothing sold by Jonathan Trumbull
will influence the demand for new clothing
...
Businesses, such as H&M, may see
an increase in demand as they are more responsive to
these changes
...
Level
Level 1
Mark
Descriptor
0
•
A completely inaccurate response
...
Weak or no relevant application to business examples
...
•
•
Level 2
3–5
Level 3
6–8
• Accurate knowledge and understanding
...
• An attempt at an assessment is presented using
quantitative and/or qualitative information
• Supported throughout by use of the business
behaviour/context, though unlikely to show the significance
of competing arguments
...
• Logical chains of reasoning, showing cause(s) and/or
effect(s)
...
A
current director, David Kingsley, has been in post for a
long time and may retire soon and will need a
successor, such as his daughter, Beckie
● Jonathan Trumbull Ltd uses IT for its stock
management and accounting system
...
A plan if there is a failure of its IT
system will help to ensure that customers still receive
orders on time and sales are recorded effectively
● Scenario planning will help Jonathan Trumbull Ltd to
predict market trends and how it might respond to
new competitors, such as Urban Outfitters, opening in
its market
...
Potential judgement
●
●
As a family business of over 50 years, it is likely that
scenario planning has been an important part of the
business success
...
Scenario planning is better suited to larger businesses
that are at risk of more serious threats such as natural
disasters
...
(10)
Level
Level 1
Mark
Descriptor
0
•
A completely inaccurate response
...
Weak or no relevant application to business examples
...
•
•
Level 2
3–4
•
•
•
•
Level 3
5–6
Level 4
7–10
Elements of knowledge and understanding
...
Chains of reasoning are presented but may be
assertions or incomplete
...
• Accurate and thorough knowledge and understanding
...
• An attempt at an assessment is presented using
quantitative and/or qualitative information
...
• Accurate and thorough knowledge and understanding
...
• Assessment is balanced and well contextualised, using
quantitative and/or qualitative information
...
Question
Number
2(c)
Indicative content
Knowledge 2, Application 2, Analysis 4, Evaluation 4
Marks for application and analysis include up to 6 marks
for quantitative skills
...
QS8: use and interpret quantitative and non-quantitative
information in order to make decisions
...
31
Current ratio in 2021 = 1 032 463/417 974 = 2
...
46
Acid test in 2021 = 344 903/417 974 = 0
...
47 in 2021 to 3
...
83 in 2021 to 1
...
In 2021, it relied on
stock, the least liquid current asset to meet its liabilities
...
Potential judgement
●
●
In terms of the current ratio, and acid test, the liquidity
position of Jonathan Trumbull Ltd has improved between
2021 and 2022
...
It is unclear if Jonathan Trumbull Ltd’s liquidity position
has improved relative to previous years of the business
and similar retail businesses in this market
...
Level
Level 1
Mark
Descriptor
0
•
A completely inaccurate response
...
Weak or no relevant application to business examples
...
•
•
Level 2
(12)
3–4
•
•
•
•
Level 3
5–8
Level 4
9–12
Elements of knowledge and understanding
...
Chains of reasoning are presented but may be
assertions or incomplete
...
• Accurate and thorough knowledge and understanding
...
• An attempt at an assessment is presented using
quantitative and/or qualitative information
...
• Accurate and thorough knowledge and understanding
...
• Assessment is balanced, wide ranging and well
contextualised, using quantitative and/or qualitative
information
...
Question
Number
2 (d)
Indicative content
Knowledge 4, Application 4, Analysis 6, Evaluation 6
•
Physical stores are those that customers visit in person and
purchase from directly, whilst online sales involve
customers purchasing from a website or application and
having the products delivered
Option 1 – Developing physical stores
•
•
•
•
•
•
•
Jonathan Trumbull Ltd’s three stores provide the
opportunity to give face to face customer service, which
may increase sales
...
This is identified in research as
being important, and is also cited as a reason for
competitors such as Urban Outfitters opening more stores
Developing one of the stores could cost between £25 000
and £30 000, but this is a small investment relative to the
value of its cash (£491 844 in 2022), which could be used
to fund these plans
Displays of the clothing on sale can be an effective
example of point of sale marketing, and one which
encourages customers to make more purchases
Jonathan Trumbull Ltd already has a presence of three
separate stores in Norwich, and this has proven successful
in targeting different market segments, such as men’s and
women’s clothing
The re-opening of Ginger in Timber Hill has shown the
importance of face-to-face custom and being located in an
area customers want to visit
...
5%) of Trumbull’s cash deposits
...
Potential judgement
•
•
Given Jonathan Trumbull Ltd’s success as an independent
clothing store retailer, with a traditional presence in
Norwich, it is best if it focuses on physical stores
...
Urban Outfitters is locating
in Chancery Place mall, along with other national clothing
retailers, so there is the opportunity for Trumbull’s to
compete through differentiation and customer service
...
Urban Outfitters has been
successful in this area, with 150% growth in online sales,
which complement its in store sales
...
Therefore, it should expand
its online sales, particularly as the estimated cost of
£2600 is much lower than expanding its physical stores
...
As a local business, that has
succeeded as a physical store, it is important that Jonathan
Trumbull Ltd expands its stores
Objectives – To survive and compete with businesses such
as Urban Outfitters, Trumbull needs to continue to grow its
online sales
...
Product – Customers are concerned about clothing not
being as it appears online, or not fitting as expected
...
Situation – Jonathan Trumbull Ltd faces a new
multinational competitor, that sells both online and in
physical stores
...
Level
Mark
Descriptor
0
•
A completely inaccurate response
...
Weak or no relevant application of business examples
...
Level 2
5–8
Level 3
9–14
• Elements of knowledge and understanding
• Which are applied to the business example
...
Attempts to address the
question
...
• Accurate and thorough knowledge and understanding
• Supported throughout by use of the business
behaviour/context
...
Arguments are developed
...
Level 4
15–20
• Accurate and thorough knowledge and understanding
• Supported throughout by use of relevant and effective
use of the business behaviour/context
...
Arguments are fully developed
...
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
recommendation(s)
...
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with its registered office at 80 Strand, London, WC2R 0RL, United Kingdom
Title: Edexcel a level business question paper 3 june 2024 + mark scheme
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE A Level In Business (9BS0) Paper 03 Investigating Business in a competitive environment
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE A Level In Business (9BS0) Paper 03 Investigating Business in a competitive environment