Skills You Need to Demonstrate (AQA A Level Business): Revision Note
Exam code: 7132
Knowledge
You can gain knowledge marks for recognising and showing understanding key business terms, concepts, theories, methods and models to show how individuals and organisations are affected by and respond to business issues
Knowledge can also be demonstrated by making relevant points, such as stating a feature, benefit, drawback or implication
In this 2-mark response, knowledge has been demonstrated by giving a fully correct definition of the business term in the question
What is meant by the term shareholder dividend? [2 marks] | |
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Application
You can gain application marks by using market data or business information from stimulus material to support a point
Application marks are also awarded for correct calculations
In this 4-mark response, knowledge has been demonstrated by giving a fully correct definition of the business term in the question
Ocado venture with M&S Marks & Spencer (M&S) started to sell its popular food range online for the first time in September 2020 by forming a venture (also known as a joint venture) with Ocado. Ocado is a solely online supermarket that has well-established distribution networks and market-leading advanced technology. M&S funded its part of the £1.5bn venture by selling £600m of shares to existing shareholders and by cutting shareholder dividends by 40%. M&S stated that it had always believed M&S-branded food should be available online, and combining with Ocado was a ‘win-win’ situation that would drive long-term growth of both businesses. Following the announcement of the venture, Ocado’s share price rose by 3%. The launch of the venture followed over a year of hard work and required senior managers from both businesses to work together to make it happen. Explain why the Ocado share price rose following the announcement of the venture. [4 marks] | |
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Analysis
You can gain analysis marks by developing logical chains of reasoning, showing cause and effect, impacts and outcomes
The best analysis considers consequences and impacts for individuals and organisations of external and internal influences
In this extract from a 9-mark response, analysis has been demonstrated by a coherent X → Y → Z chain of reasoning that shows effect and impact
Daihatsu Daihatsu is a Japanese manufacturer of small cars. Its customers are now able to customise their vehicles with car panels that they design for themselves online. Until recently, customising cars was expensive because it required skilled craftsmen to produce individual parts. With 3-D printing, panels can be produced quickly and cheaply. Customers ordering a Daihatsu car from their local dealership can design their own panels for the sides of the car to create exactly the look that they want. Offering more customisation is one way that car manufacturers are trying to gain a competitive advantage in a fiercely competitive environment. Cars are a high value item for consumers and are usually bought on credit; the finance to buy the car is often provided by the manufacturer. In 2016 over 74 million cars were sold worldwide. This represents a global capacity utilisation in the car industry of only 78%. Some commentators predict global capacity utilisation in the industry will fall in the next few years and that many car manufacturers will respond to this situation by price cutting. Analyse the likely effects of a significant increase in interest rates on the profits of car manufacturers. [9 marks] | |
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Evaluation
You can gain evaluation marks by showing judgement, weighing up the relative importance of factors, comparing points of view or recommending a course of action
Top-level evaluation needs to be balanced, which requires both sides of an argument to be considered in context
In the essay example below, instances of evaluation in the response are highlighted, both within the main body and the concluding paragraph, including:
Alternative points of view
Recommendations
Consideration of likelihood and significance
Weighing up impact
Online sales have grown significantly in recent years. To what extent has this led to distribution (place) decisions becoming a more important element of an effective marketing mix? [25 marks] | |
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