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BUSINESS

OCR 2024
GCSE Business
J204/01 Business 1: business activity, marketing
and people
With Marking Scheme Merged

Oxford Cambridge and RSA

Tuesday 14 May 2024 – Afternoon
GCSE (9–1) Business
J204/01 Business 1: business activity, marketing and people
Time allowed: 1 hour 30 minutes
You can use:
• a calculator

*

J

2

0

4

0

1

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Please write clearly in black ink
...

Centre number

Candidate number

First name(s)
Last name
INSTRUCTIONS
• Use black ink
...
If you need extra space use the
lined pages at the end of this booklet
...

• Answer all the questions
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• The marks for each question are shown in brackets [ ]
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• This document has 20 pages
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2
Section A
1

What is a disadvantage of being a sole trader?
A Can only have one employee
B Cannot share business ownership
C Legally required to produce a business plan D
Must pay corporation tax

Your answer
2

[1]

What is a financial method of motivation that a restaurant manager may use?
A An award scheme for the chefs to develop low cost meals
B Introduce profit sharing for the chefs
C Make staff pay for any glasses or plates they break
D Praise staff who suggest how the restaurant could save money

Your answer

3

[1]

What is a benefit to the local community of a nearby carpet factory extending its operating hours?
A A wider choice of carpet designs will be available
B Increased road congestion from more lorries delivering textiles C
More job opportunities will be created
D The business will pay higher taxes

Your answer

© OCR 2024

[1]

3
4

What is one of the ‘four Ps’ of the marketing mix?
A Penetration
B Place
C Planning D
Profit

Your answer
5

[1]

A clothing designer may choose to flatten its organisational structure to reduce the:
A creativity of its garment designers
B independence of its fabric buyers C
need for innovation and change
D time it takes to respond to changes in fashion

Your answer
6

[1]

Two brothers are currently unemployed
...

What is an entrepreneurial risk for the brothers?
A Cold weather
B Paying taxes C
Poor health
D Slippery ladders

Your answer

© OCR 2024

[1]

Turn over

4
7

What is not a benefit to a golfing equipment retailer of training its sales assistants?
A To help staff give advice on which golf clubs to buy
B To increase the sales of golf umbrellas and waterproof clothing C
To motivate staff to assist customers who are trying on golf shoes D
To reduce the time it takes to make golf bags and golf trolleys

Your answer
8

[1]

One purpose of marketing at a library is to:
A advertise for an apprentice librarian
B encourage more families to use the library C
provide better training for librarians
D update the library’s stock of books

Your answer
9

[1]

A business has recently changed its main objective from ‘survival’ to
‘growth’
...

X

Sales

Time
According to the diagram:
A

sales grew rapidly but the product is now in maturity

B

sales grew slowly but the product is now in decline

C

the product continues to be highly profitable

D

the product is experiencing a rapid decline

Your answer

[1]

11 What is a benefit to a patient of receiving communication from their hospital doctor by email
rather than by letter?
A Doctors receive confirmation of receipt when the email is opened
B Emails can contain hyperlinks to further information about treatments C
Emails save money by reducing stationery, printing, and postal costs D
Multiple medical appointments can be sent out at the same time
Your answer

[1]

12 What impacts are a customer boycott most likely to have on a business?
A External growth, reduced profit, increased dividends
B Fewer customers, reduced profit, increased market share C
Improved brand image, more customers, increased profit D
Worsened reputation, lower sales, reduced profit
Your answer
© OCR 2024

[1]
Turn over

6
13 An independent toy business is seeing fewer potential customers visit its
shop
...

This is an example of a:
A diversification
B horizontal takeover C
merger
D vertical takeover

Your answer

[1]

15 A business with a tall organisational structure will
have: A a high market share
B lots of distribution channels C
multiple layers of authority D
short chains of command
Your answer

© OCR 2024

[1]

7
BLANK PAGE

PLEASE DO NOT WRITE ON THIS PAGE

© OCR 2024

Turn over

8
Section B
16
Text 1

J Sainsbury plc (Sainsbury’s)
Sainsbury’s is one of the UK’s largest supermarket chains
...
Sainsbury’s is owned by shareholders who have limited liability
...
An example
is Sainsbury’s price match against similar products sold by Aldi, one of its competitors
...

Developing new products is important to remain competitive, as customers are always looking for
something new
...

Sainsbury’s managers believe that good food should be accessible to everyone
...


(a) Explain one way that limited liability affects the owners of a company
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[6]

1
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© OCR 2024

9
3
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(c) Analyse one likely reason why Sainsbury’s uses market segmentation when developing
new products
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[3]

© OCR 2024

Turn over

10
(d)
(i) Identify two primary market research methods
...

2
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...
Their market
is very competitive
...
The designers interpret quantitative data carefully when planning
new shoe styles
...


Clarks works hard to retain its team of designers, as they are central to its success
...

(a) State two aspects of employment law that may affect a business
...

2
...


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...

1
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2
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3
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[6]
(d)
(i) Analyse one advantage for Clarks of using interviews to select new designers
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[3]

© OCR 2024

13
(ii) Analyse one advantage for Clarks of using references to select new designers
...


...


...


...


...
[3]

(iii) Recommend whether using interviews or references is likely to be more effective for selecting
new designers
...


...


...


...


...


...
The business partners met whilst studying
hairdressing at college
...
SJ
Salon is currently the only salon in town and uses cost-plus pricing
...
Until recently, the partners
employed one part-time and one full-time worker who works 40 hours per week
...


Sam and Jamila have just found out that a national hairdressing chain is planning to open a new
salon in their town
...
The partners asked
200 current customers to complete a short questionnaire
...

When SJ Salon was set up in 2014, Sam wrote a business plan
...
However, Sam now thinks that a new business
plan should be written to help the business succeed against any new competition
...
She feels that his time would be better
spent keeping current customers satisfied
...

Identify one other characteristic of an entrepreneur
...
[1]
(b) Analyse two advantages for SJ Salon of using cost-plus pricing
...


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...


...

© OCR 2024

15
2
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...


...
They are considering two methods:
•
a weekly team meeting which all employees will be expected to attend
•
a weekly email sent to all employees
...


[6]

Weekly team meeting

...


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...


...


...


...


...


© OCR 2024

17
(ii) Recommend whether a weekly meeting or a weekly email would be the more appropriate
method of communication for SJ Salon to use
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[9]


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You must write the question numbers clearly
in the margin
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© OCR 2024

20

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GCSE
Business
J204/01: Business 1: business activity, marketing and people
General Certificate of Secondary Education

Mark Scheme for June 2024

Oxford Cambridge and RSA Examinations

OCR (Oxford Cambridge and RSA) is a leading UK awarding body, providing a wide range of
qualifications to meet the needs of candidates of all ages and abilities
...


It is also responsible for developing new specifications to meet national requirements and
the needs of students and teachers
...

This mark scheme is published as an aid to teachers and students, to indicate the requirements
of the examination
...
It does not
indicate the details of the discussions which took place at an examiners’ meeting before
marking commenced
...

Mark schemes should be read in conjunction with the published question papers and the
report on the examination
...


Make sure that you have accessed and completed the relevant training packages for on -screen marking: RM Assessor Assessor Online Training;
OCR Essential Guide to Marking
...


Log-in to RM Assessor and mark the required number of practice responses (“scripts”) and the number of required standardisation responses
...


MARKING
1
...


2
...


3
...
It is essential that you meet the RM Assessor 50% and 100% deadlines
...


4
...


5
...
Wh ere no alternative
response has been provided, examiners may give candidates the benefit of the doubt and mark the crossed out resp onse where legible
...


2

J204/01

Mark Scheme

June 2024
When a question requires candidates to select more than one option/multiple options, then local marking arrangements need to ensure consistency of
approach
...

Short Answer Questions (requiring only a list by way of a response, usually worth only one mark per response)
Where candidates are required to provide a set number of short answer responses then only the set number of responses should be marked
...

The remaining responses should not then be marked
...
(The underlying assumption is that the candidate is attempting to hedge
their bets and therefore getting undue benefit rather than engaging with the question and giving the most relevant/correct responses
...
)
Longer Answer Questions (requiring a developed response)
Where candidates have provided two (or more) responses to a medium or high tariff question which only required a single (deve loped) response and
not crossed out the first response, then only the first response should be marked
...


6
...
If the
candidate has continued an answer there, then add a tick to confirm that the work has been seen
...


Award No Response (NR) if:
• there is nothing written in the answer space
Award Zero ‘0’ if:
• anything is written in the answer space and is not worthy of credit (this includes text and symbols)
...


3

J204/01
8
...


Mark Scheme

June 2024
The RM Assessor comments box is used by your team leader to explain the marking of the practice responses
...
Do not use the comments box for any other reason
...

Assistant Examiners will send a brief report on the performance of candidates to their Team Leader (Supervisor) via email by the end of the marking
period
...
Constructive criticism of the
question paper/mark scheme is also appreciated
...
For answers marked by levels of response:
a
...
To determine the mark within the level, consider the following

Descriptor

Award mark

On the borderline of this level and the one below

At bottom of level

Just enough achievement on balance for this
level
Meets the criteria but with some slight
inconsistency

Above bottom and either below middle or at middle of level (depending on number of marks
available)
Above middle and either below top of level or at middle of level (depending on number of marks
available)

Consistently meets the criteria for this level

At top of level

4

J204/01

Mark Scheme

June 2024

11
...

Knowledge/understanding may include:
• Owners/shareholders can only lose up to the amount originally
invested
• Shareholders not required to repay/not personally liable for the
company’s debts
• The owner’s personal assets are protected/not at risk/cannot
be taken from them
• Due to separate legal identity/incorporation
• Less stress/worry/concern/risk/more financial security for
shareholders
• Shareholders may be willing to take more risks
• May encourage shareholders to invest more
Exemplar responses:
Owners cannot lose more than the amount originally invested (1) so
their personal belongings cannot be taken to repay debts (+1)
...

ARA

7

June 2024
Mark
2
AO1a 1
AO1b 1

Guidance
One mark for knowledge of limited liability
plus one further mark for understanding
...


J204/01
16

(b)

Mark Scheme
Explain three advantages for Sainsbury’s of using television to
advertise its products
...

• The supermarket industry is very competitive
• Show price match against Aldi
• Show visuals of its food
• Developing new products is important for Sainsbury’s

8

June 2024
6
AO1b 3
AO2 3

One mark for an advantage of using
television advertising, up to a maximum of
three marks
...

One further mark for each application to
Sainsbury’s, up to a maximum of three
marks
...
Must be specific advantages of
advertising on television
...

Sainsbury’s can target customers (1) by carefully choosing the
programme to show the advert (NUT)
...


3
AO1a 1
AO2 1
AO3a 1

Knowledge may include:
• Create products for specific customer needs
• Tailor products for specific customer needs
Application may include:
• Aimed at middle to high income customers
• Sainsbury’s develops new products to remain competitive
• Customers always looking for something new
• The supermarket industry is very competitive/lots of
competitors
• Sainsbury’s believes that good food should be accessible to
everyone

One mark for a reason for using market
segmentation
...

One further mark for application to
Sainsbury’s
...

NB: Analysis must be business-facing
...


Analysis may include:
Common analytical comments (which must stem from the reason
stated) include positive impacts on market share, revenue, profit,
competitive advantage, reputation, efficiency, etc
...
e
...
Including image,
packaging, quality, ingredients
...
This will help boost revenue (+1)
...
e
...


Can make products to target the needs of customer segments (1)
...


Do not reward adaptations that attempt to meet
the needs of ALL customers (as this does not
relate to market segmentation)
...


June 2024
2
AO1a 2

Indicative content:
• Questionnaire
• Survey
• Interview
• Trialling/trial/taste test
• Focus group
• Observation
16

(d)

(ii)

One mark for each primary market research
method identified, up to a maximum of two
marks
...


Evaluate whether Sainsbury’s should use primary or secondary
market research methods in the future
...

Annotate as:
Up to 2 marks for application to Sainsbury’s
Up to 2 marks for analysis
Up to 3 marks for evaluation
NB: Context must be used to help explain the
pros/cons of the market research method for it to
be awarded as application
...

For strong evaluation i
...
, the full three marks, the
evaluation must be contextual
...
g
...

NB: Pros of one method are often the cons of the
other method i
...
REP
...


10

J204/01

Mark Scheme

June 2024

Analysis may include:
Do not reward ‘free’
...
This decision should be justified using relevant argument
...


11

J204/01

Mark Scheme

June 2024

Exemplar response:
Utilising primary market research means they can find out specific
information (AN) about sales in its competitive market (NUT) so that
Sainsbury’s can fulfil the needs and wants of its middle to high income
customers (APP)
...
However,
since Sainsbury’s is one of the largest UK supermarkets (APP)
financial constraints are unlikely to be a problem
...

ARA

12

J204/01

Mark Scheme

June 2024

Q16(dii) Evaluate whether Sainsbury’s should use primary or secondary market research methods in the future
...


Good
[APP]
[APP]

2 marks
Two different pros/cons of market research
methods (business-facing)
...

[EVAL]
[EVAL]
[EVAL]
2 marks
A justified judgement about whether Sainsbury’s should
use primary or secondary market research methods in
future
...

[APP]

1 mark

1 mark

One pro/con of a market research method
(business-facing)
...


[AN]

[EVAL]

13

J204/01
17

Question
(a)

Mark Scheme
Answer
State two aspects of employment law that may affect a
business
...
g
...
g
...


Answers do not need to relate to Clarks
...
g
...

‘Employment rights’ (0) TV
‘Pay’/‘How much they are paid’ (0) TV

J204/01
17

Mark Scheme
(b)

June 2024

Analyse one advantage for Clarks of interpreting quantitative
data when designing new products
...

No further marks can be gained without
understanding
...

One further mark for analysis of the advantage to

Application may include:
• Very competitive market/lots of competitors
• Employs specialist designers
• Fast-changing fashion trends
• Footwear for children, women and men
• Need to ensure new styles meet customer needs
• Need to ensure new styles will be profitable

a business of interpreting quantitative data
...

NB: No reward for what quantitative data is
...

Exemplar responses:
Quantitative data will help Clarks identify changes in demand (1) for
its children’s, women’s and men’s ranges (APP)
...

The impact of a new promotion on Clarks’ sales can be analysed
(1)
...

ARA

15

3
AO1b 1
AO2 1
AO3a 1

Do not reward ‘objective’, ‘numerical data’, ‘can be
plotted on a graph’; advantages for business of
these are required
...

Advantage must be to Clarks and NOT the
customer or other stakeholders
...
e
...

High sales (0) TV
High demand (0) TV

J204/01
17

Mark Scheme
(c)

Explain three reasons why employee retention is important for
Clarks
...

It will prevent losing skills to business rivals (1) in this competitive
market (NUT)
...

No further marks can be gained without
knowledge
...


NB: No reward for what employee retention is
...
Importance for the business
is required
...

Understanding may include:
• Can assess the candidate’s body language/facial
cues/communication skills/personal presentation/
personality/how they react under pressure
• Can assess how candidate would fit into the business/work
in a team
• Can find out things from the candidate such as knowledge of
the business, previous experience, skills, specialisms, etc
• Can compare candidates’ responses to similar questions

3
AO1b 1
AO2 1
AO3a 1

One mark for an advantage of using
interviews to select employees
...

One further mark for application to Clarks
...


NB: Analysis must be business-facing
...

Do not reward features of method e
...
‘can see
candidate’/’can ask questions’; advantage for
business of these is required
...

Exemplar responses:
The designers are specialists (APP)
...

They can compare all candidates’ answers to the same questions
(1)
...

ARA

17

Advantage must be for Clarks and NOT the
employee or customer
...

Take care with APP
...


J204/01
17

Mark Scheme
(d)

(ii)

Analyse one advantage for Clarks of using references to select
new designers
...
g
...
g the candidate’s
standard of work/behaviour/attitude/skills/personality/
teamworking/specialisms
• Can verify information (e
...
as supplied in an application
form)
• Can offer additional information about the candidate (which
they may not have disclosed)
• Low labour time/input/quicker/low cost
Application may include:
• Very competitive market/lots of competition
• Designers are specialist
• Fast-changing fashion trends
• Employees need to work closely with other functional areas
such as marketing, finance and retail
• Designers need to be able to interpret quantitative data
Analysis may include:
Common analytical comments (which must stem from the reason
stated) include positive impacts on market share, revenue, profit,
competitive advantage, beating the competition, reputation,
efficiency, productivity, customer service, innovation, teamwork,
decision making, etc
...
This is important because the
designers will work with colleagues from other functional areas
(APP), potentially increasing productivity in the workplace (+1)
...

No further marks can be gained without
understanding
...

One further mark for analysis of the
advantage for a business of using
references to select new employees
...

NB: No reward for what references are
...
g
...

Advantage must be for Clarks and NOT the
employee or customer
...

Take care with APP
...


J204/01

Mark Scheme

June 2024

The reference can verify the information on an application form (1)
which should help to increase competitive advantage (+1)
...
Give a reason
for your answer
...

Justification can be made using any combination of features/
advantages/disadvantages so long as a comparison is being made
(i
...
a link between them as opposed to separate points)
...
A reference is unlikely to
include this information unless they previously worked for another
fashion business (+2)
...
Whereas a reference provides the opinion of the
previous employer (NUT (+1))
...
References evidence whether
the applicant worked efficiently with other employees when
designing shoes (CONT)
...

References are best (1) because they are cheaper as you only need
time to read through the reference for each candidate
...

ARA

19

3
AO3b 3

One mark for a recommendation of
whether Clarks should use interviews or
references
...

Double tick
OR
in margin
One further mark for a non-contextual
recommendation of the judgement whether
Clarks should use interviews or references
to select new designers
...

NB Justification is why one method is BETTER
THAN the other for the business (rather than just
good for business)
...

I
...
Positive point for one method compared with
rejected option (even if the comparative
justification for the rejected option is basic e
...

‘cannot do …’ or ‘doesn’t allow …’)
...
e
...
e
...

To gain full marks the justification must also be
contextual (but not necessarily applied)
...


Mark
1
AO1a 1

Guidance
One mark for a characteristic of an
entrepreneur
...

Answers do not need to relate to SJ Salon
...

Accept synonyms of the indicative content e
...

‘perseverance’ for ‘determination’ or ‘self -assured’
for ‘confidence’, etc
...


20

J204/01
18

Mark Scheme
(b)

June 2024
6

Analyse two advantages for SJ Salon of using cost-plus
pricing
...

Exemplar responses:
Can easily adjust the price (1) to ensure that the labour cost of the
two additional employees (APP) is covered so that a profit is still
made (+1)
...
This
avoids the salon making a loss (+1)
...

No further marks can be gained without
understanding
...

One further mark for analysis of an advantage of
cost-plus pricing for a business, up to a maximum
of two marks
...
Do not credit impacts on
customers or employees
...


J204/01
18

Mark Scheme
(c)

(i)

Analyse one advantage for SJ Salon of each method of
communication
...

No further marks can be gained without
understanding
...

One further mark for analysis of the
advantage for a business of the method
...

NB: No reward for what communication is
...

No reward for what email is
...


Do not reward responses that solely refer to
features of the methods e
...
staff meet together,
two-way communication, verbal discussion, can
raise questions, body language, facial
expressions, written record, can get receipts, etc
...


Exemplar responses:
The owners can check everyone understands (1)
...


Meeting:
Feel valued (0) – advantage to employee rather
than advantage for the business
...


22

J204/01

Mark Scheme

June 2024

Weekly email
Understanding may include:
• Time efficient/takes little time/quick
• Message can be sent to many recipients at once
• Does not need scheduling/diarising
• Can be accessed anytime/anywhere/remotely
• Can be kept/referred back to/read multiple times
• Can emphasise points using highlights/underlining/italics/
capitals, etc
• More useful for complex/numerical information
Application may include:
• 200 customers completed a questionnaire
• Employ one part-time employee and one full-time employee
• Recruiting two new part-time employees
• Jamila thinks it is more important to keep customer satisfied
• Concerned about the additional competition
Analysis may include:
Common analytical comments (which must stem from the reason
stated) include positive impacts on market share, revenue, profit,
profit margin, avoiding a loss, competitive advantage, reputation,
expansion, efficiency, productivity, customer service, labour
turnover, motivation, etc
...

Sending an email is time efficient (1) which should help improve
productivity (+1)
...
Give a reason for your answer
...

Justification can be made using any combination of features/
advantages/disadvantages so long as a comparison is being made
(i
...
a link between them as opposed to separate points)
...
All employees can meet
together once a week helping SJ Salon’s newly enlarged staff team
(CONT) work together effectively to satisfy customers
...

The company should use a meeting (1)
...

Emails do not involve any staff interaction so do not help
teamworking (NUT (+1))
...
Three of the employees work
part-time (CONT) so finding a time when everyone is available to
have a staff meeting will be difficult
...

A weekly email should be chosen (1)
...
An email can be
read at any time (NUT (+1))
...

PLUS
Two marks for a contextual justification of whether
SJ Salon should use a weekly meeting or email
...

Single tick
in margin
NB: Context, rather than application, required for
full marks
...
A comparison is required;
therefore, the response must cover both
methods to gain a mark for justification
...
e
...
g
...

NB: If two separate points are made i
...
one
about meetings and one about email, there must
be a comparative link i
...
both about time (accept
quicker than), both about cost (accept cheaper
than), both about accessibility, etc
...

Knowledge and understanding:
• Definition:
o Knowledge: business plan is a document/record/e-file
o Understanding: Content details/outlines - purpose of
business/business ideas/product or service/
resources/marketing/market research/production/ target
market/the competition/aims/objectives/goals, finance,
etc
...

Annotate as:
1 mark for knowledge
1 mark for understanding
Up to 2 marks for quantitative application*
Up to 2 marks for analysis
Up to 3 marks for evaluation
*Application assesses quantitative skills and refers
to the use of data only
...

Understanding – a named item of content within
the definition
...


o 52%/around half were aware of the competitor o
48% were not aware of the competitor
o 96 were not aware of the competitor
o 42%/almost half would try competitor if cheaper o
58% would not try the competitor if cheaper
o 116 would not try the competitor if cheaper
o 33%/one third consider quality of service over price o
66%/67% do not consider quality more important than
price
o 134 do not consider quality more important than price o
18 more customers would try the rival if price cheaper
than those who thought that quality was more important
o etc

25

Evaluation – the decision must be explicit for 1
mark
...
For strong evaluation i
...
, the full
three marks, the evaluation must be contextual
...
e
...
This decision should be justified using relevant
argument
...


26

June 2024

J204/01

Mark Scheme

June 2024

Exemplar response:
A business plan is a document (K)
...

42% (APP) of customers would consider having their hair cut at the
new hairdressing salon if it were cheaper which is concerning for SJ
Salon
...

However, creating a business plan will take a long time (AN) and will
mean Sam will lose three-quarters (APP) of a week’s revenue
...
The
additional competition is a concern for SJ Salon, especially as over
40% of customers would consider having their hair cut there
(CONT)
...

ARA

27

J204/01

Mark Scheme

June 2024

Q18(d)* Evaluate, using the data in Text 3, whether Sam should write a new business plan
...


2 marks
2 marks
Good

1 mark
1 mark
Knowledge that a
business plan is a
specific document
(rather than a process)
...


[K]

[U]

Two demonstrations of
quantitative skill
...


[APP]
[APP]

[AN]
[AN]

[EVAL]
[EVAL]
[EVAL]
2 marks
A justified judgement as to

whether SJ Salon should write a

new business plan
...


One pro or con (business
facing) of a business plan
...


[APP]

[AN]

[EVAL]

28



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