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Cambridge International AS & A Level: Business 9609/42

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Cambridge International AS & A Level

BUSINESS 9609/42
Paper 4 Business Strategy October/November 2023
MARK SCHEME
Maximum Mark: Please Specify

Published

This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the
details of the discussions that took place at an Examiners’ meeting before marking began, which would have
considered the acceptability of alternative answers.

Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report for
Teachers.

Cambridge International will not enter into discussions about these mark schemes.

Cambridge International is publishing the mark schemes for the October/November 2023 series for most
Cambridge IGCSE, Cambridge International A and AS Level components, and some Cambridge O Level
components.

This document consists of 19 printed pages.

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9609/42 Cambridge International AS & A Level – Mark Scheme October/November 2023
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Generic Marking Principles

These general marking principles must be applied by all examiners when marking candidate answers. They should be applied alongside the
specific content of the mark scheme or generic level descriptors for a question. Each question paper and mark scheme will also comply with these
marking principles.

GENERIC MARKING PRINCIPLE 1:

Marks must be awarded in line with:

• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the question
• the standard of response required by a candidate as exemplified by the standardisation scripts.

GENERIC MARKING PRINCIPLE 2:

Marks awarded are always whole marks (not half marks, or other fractions).

GENERIC MARKING PRINCIPLE 3:

Marks must be awarded positively:

• marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond
the scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.

GENERIC MARKING PRINCIPLE 4:

Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.

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GENERIC MARKING PRINCIPLE 5:

Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).

GENERIC MARKING PRINCIPLE 6:

Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.

Social Science-Specific Marking Principles


(for point-based marking)

1 Components using point-based marking:


• Point marking is often used to reward knowledge, understanding and application of skills. We give credit where the candidate’s answer
shows relevant knowledge, understanding and application of skills in answering the question. We do not give credit where the answer
shows confusion.

From this it follows that we:

a DO credit answers which are worded differently from the mark scheme if they clearly convey the same meaning (unless the mark
scheme requires a specific term)
b DO credit alternative answers/examples which are not written in the mark scheme if they are correct
c DO credit answers where candidates give more than one correct answer in one prompt/numbered/scaffolded space where extended
writing is required rather than list-type answers. For example, questions that require n reasons (e.g. State two reasons …).
d DO NOT credit answers simply for using a ‘key term’ unless that is all that is required. (Check for evidence it is understood and not used
wrongly.)
e DO NOT credit answers which are obviously self-contradicting or trying to cover all possibilities
f DO NOT give further credit for what is effectively repetition of a correct point already credited unless the language itself is being tested.
This applies equally to ‘mirror statements’ (i.e. polluted/not polluted).
g DO NOT require spellings to be correct, unless this is part of the test. However spellings of syllabus terms must allow for clear and
unambiguous separation from other syllabus terms with which they may be confused (e.g. Corrasion/Corrosion)

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2 Presentation of mark scheme:
• Slashes (/) or the word ‘or’ separate alternative ways of making the same point.
• Semi colons (;) bullet points (•) or figures in brackets (1) separate different points.
• Content in the answer column in brackets is for examiner information/context to clarify the marking but is not required to earn the mark
(except Accounting syllabuses where they indicate negative numbers).

3 Calculation questions:
• The mark scheme will show the steps in the most likely correct method(s), the mark for each step, the correct answer(s) and the mark
for each answer
• If working/explanation is considered essential for full credit, this will be indicated in the question paper and in the mark scheme. In all
other instances, the correct answer to a calculation should be given full credit, even if no supporting working is shown.
• Where the candidate uses a valid method which is not covered by the mark scheme, award equivalent marks for reaching equivalent
stages.
• Where an answer makes use of a candidate’s own incorrect figure from previous working, the ‘own figure rule’ applies: full marks will be
given if a correct and complete method is used. Further guidance will be included in the mark scheme where necessary and any
exceptions to this general principle will be noted.

4 Annotation:
• For point marking, ticks can be used to indicate correct answers and crosses can be used to indicate wrong answers. There is no direct
relationship between ticks and marks. Ticks have no defined meaning for levels of response marking.
• For levels of response marking, the level awarded should be annotated on the script.
• Other annotations will be used by examiners as agreed during standardisation, and the meaning will be understood by all examiners
who marked that paper.

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Guidance on using levels-based marking

Marking of work should be positive, rewarding achievement where possible, but clearly differentiating across the whole range of marks, where
appropriate.

The examiner should look at the work and then make a judgement about which level statement is the best fit. In practice, work does not always
match one level statement precisely so a judgement may need to be made between two or more level statements.

Once a best-fit level statement has been identified, use the following guidance to decide on a specific mark:

• If the candidate’s work convincingly meets the level statement, award the highest mark.
• If the candidate’s work adequately meets the level statement, award the most appropriate mark in the middle of the range.
• If the candidate’s work just meets the level statement, award the lowest mark.
• L1, L2, etc. must be clearly annotated on the response at the point where the level is achieved.

Assessment objectives

AO1 Knowledge and understanding


Demonstrate knowledge and understanding of business concepts, terms and theories.

AO2 Application
Apply knowledge and understanding of business concepts, terms and theories to problems and issues in a variety of familiar and unfamiliar
business situations and contexts.

AO3 Analysis
Analyse business problems, issues and situations by:
• using appropriate methods and techniques to make sense of qualitative and quantitative business information
• searching for causes, impact and consequences
• distinguishing between factual evidence and opinion or value judgement
• drawing valid inferences and making valid generalisations.

AO4 Evaluation
Evaluate evidence in order to make reasoned judgements, present substantiated conclusions and, where appropriate, make recommendations for
action and implementation.

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NR or 0

0 (zero) marks or NR (no response):

• Award NR if there is nothing at all written in answer to that question (often the case for optional questions).
• Award NR if there is a comment which is not an attempt at the question (e.g. ‘can’t do it’ or ‘don’t know’, etc.)
• Award NR if there is a symbol which is not an attempt at the question, such as a dash or question mark.
• Award 0 (zero) if there is any attempt at the question which does not score marks. This includes copying the question onto an Answer Booklet.

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Question Answer Marks

1 Evaluate the impact of FL’s corporate culture on the success of the business between 2015 and 2022. 20

Level AO1 Knowledge and AO2 Application AO3 Analysis AO4 Evaluation
understanding
3 marks 2 marks 8 marks 7 marks

3 7–8 marks 6–7 marks


Developed analysis of Effective evaluation
the overall strategy A developed judgement/conclusion
that identifies is made in the business context that
connections between draws together developed evaluative
causes, impacts and/or comments which balance some key
consequences. arguments in the business context.

2 2–3 marks 2 marks 4–6 marks 3–5 marks


Developed Developed Developed analysis of Developed evaluation
knowledge of relevant application of individual strategic • A developed
key term(s) and/or relevant point(s) to the element(s) that judgement/conclusion is made.
factor(s) is used to business context. identifies connections • Developed evaluative comments
answer the question. between causes, which balance some key
impacts and/or arguments.
consequences.

1 1 mark 1 mark 1–3 marks 1–2 marks


Limited knowledge of Limited application Limited analysis that Limited evaluation
relevant key term(s) of relevant point(s) to identifies connections • A judgement/conclusion is made
and/or factor(s) is the business context. between causes, with limited supporting
used to answer the impacts and/or comment/evidence.
question. consequences. • An attempt is made to balance
the arguments.

0 0 marks 0 marks 0 marks 0 marks


No creditable response. No creditable response. No creditable response. No creditable response.

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Question Answer Marks

1 Indicative content:

AO1 Knowledge and understanding

No other AO2, AO3 or AO4 marks can be awarded without AO1.

Knowledge (max 3 marks) can be awarded for any relevant business knowledge about corporate culture:
• Corporate culture – the beliefs and behaviours that determine how a company's employees and management interact
with each other and the outside world.
• Often implied, not necessarily explicit, and can develop slowly over time from the personalities of the people that the
business employs and/or the owners.
• Culture is a way of describing the character/personality of the business.
• Often referred to as ‘the way things are done’.
• Types of corporate culture, such as 'Power Culture', 'Role Culture', 'Task Culture' and 'Person Culture' (Handy); clan
culture, adhocracy culture, market culture and hierarchy culture (Quinn and Cameron). Accept any valid types of
corporate culture.
• Corporate culture can be influenced by long-term aims, national cultures and traditions, economic trends, international
trade, company size, and products/services, etc.
• Corporate culture can come from; company-wide value systems, management strategies, employee communications
and relations, work environment and attitude.
• It can also include the way the business has been set up and managed, the skills of its leaders (Managers,
Supervisors, Directors, CEO, etc.), as well as visual symbols such as logos and trademarks.
• Corporate culture can also include; cross-culture refers to people from different backgrounds interacting in the business
environment, culture shock which refers to the confusion or anxiety people experience when conducting business in an
environment other than their own and reverse culture shock which is often experienced by people who spend lengthy
time abroad for business and have difficulty readjusting upon their return.

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Question Answer Marks

1 AO2 Application
Application (max 2 marks) can be awarded for applying knowledge of corporate culture, to FL between 2015 and
2022:
• FL operates online with every employee home working – may have an effect on group consultation/decision-making.
• Jane’s aim was to create an intrapreneurial, dynamic, low-cost clothing retailer – data may reflect this and suggests
elements of laissez-faire leadership.
• Employees from other software businesses – need to be aligned with FL’s culture, may have caused a culture clash.
• Marketing Manager came from a supermarket – very different type of business/culture.
• Finance Manager has no experience – this may be an advantage as he could be indoctrinated into FL’s culture, or it
may prove a disadvantage.
• FL’s digital promotion needed to be aligned with FL’s corporate culture – did this have an effect on FL as a whole.
• FL named one of the top 10 most innovative businesses in 2016 – link to Jane’s aims.
• By taking over GY in 2021, FL now has on-site manufacturing employees – rumour of unethical working practices.
• Increasing competition in the market – different pressures on FL.

AO3 Analysis
Analysis of the impact of corporate culture on a business ( and and ) including:
• Intrapreneurial culture allowed FL to develop an innovative product in a competitive marketplace.
• FL is operating in a dynamic market which requires innovation and creativity, this can be developed in a business
culture.
• Home working culture allowed FL to lower its costs and achieve Jane’s aim and increase profit margin.
• Culture formed the basis for FL to become an innovative business – promotion – growth in sales.
• FL’s culture will have been important in the successful takeover of GY – increases scale of FL – sales – profit.
• Culture clash between unethical working practices in GY and FL’s innovative, intrapreneurial culture.
• FL’s culture gives a basis for future strategy decisions and can improve the motivation of the employees – particularly
important with employees who are working from home as it gives them direction and manages expectations.

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Question Answer Marks

1 AO4 Evaluation
Evaluation ( and and ) including:
• Corporate culture is likely to have played a part in FL’s success because of the nature of the business and market.
• Corporate culture was an important aspect of Jane’s aim to create an intrapreneurial, dynamic, low-cost clothing
retailer. FL’s success may have led from this aim.
• The extent of the impact is likely to depend on whether FL can align GY’s culture with their own.
• The extent of the impact may also depend on the new product Jane is launching – if it is in a similar market then the
culture is likely to continue to be an important impact on FL’s decision making.
• Overall, the impact of corporate culture on FL’s decision making is likely to have contributed to the success of FL and
the continued success of the business in the future. However, other aspects are also likely to be important, such as the
integration of GY, HRM, marketing and the ability of FL to maintain its financial commitments.

Accept all valid responses.

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Question Answer Marks

1 Exemplars and annotations for AO3 (assuming relevant AO1 has been awarded):

No credit
L1 L2 L3 (developed analysis
(no analysis on FL)
(limited analysis) (developed analysis) of strategy)

By having an By having a dynamic By having a dynamic culture, By having a dynamic culture, FL is


intrapreneurial culture, FL is able to FL is able to adapt to the able to adapt to the changing market
culture, FL is able to adapt to the changing changing market conditions, conditions, which allowed FL to
adapt to the changing market conditions, which allowed FL to produce produce innovative products. which
market conditions. which allowed FL to innovative products. which allowed FL to increase its revenue.
produce innovative allowed FL to increase its However, this creativity may mean
products. revenue. employees do not always make good
decisions, leading to mistakes that
may increase costs.

Home working can Home working can lead Home working can lead to Home working can lead to more
lead to more to more motivated more motivated workers who motivated workers who increase FL’s
motivated workers. workers who increase increase FL’s productivity productivity and may have been one of
FL’s productivity. and may have been one of the reasons for the increase in market
the reasons for the increase share.
in market share. But it is possible that separation from
the other employees might make some
employees less productive and might
lead to a future reduction in FL’s
competitiveness.

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Question Answer Marks

1 Exemplars and annotations for AO4 (assuming relevant AO1 has been awarded):

No credit
L1 (limited L2 (developed supporting L3 (developed supporting
(no supporting
supporting evidence) evidence) evidence with context)
evidence)

The biggest The biggest impact was The biggest impact was the The biggest impact was the dynamic
impact was the the dynamic corporate dynamic corporate culture corporate culture chosen by Jane
dynamic culture chosen by Jane chosen by Jane because it because it allowed FL to adapt to the
corporate culture because it allowed FL to allowed FL to adapt to the changing market. It had a positive
chosen by Jane. adapt to the changing changing market. It had a influence that meant that employees
market. positive influence that meant were more motivated as the business
that employees were more grew to having a 4% share of the
motivated as the business grew. market.

Overall, the Overall, the corporate Overall, the corporate culture Overall, the corporate culture had a
corporate culture culture had a positive had a positive impact on FL, positive impact on FL, because the
had a positive impact on FL, because because the business grew business increased its revenue from
impact on FL. the business grew between 2017 and 2020. It is $2m to $20m between 2017 and
between 2017 and 2020. unlikely that FL could have 2020. It is unlikely that FL could have
achieved this growth without the achieved this growth without the
innovation provided by the innovation provided by the culture.
culture.

The impact of The impact of FL’s The impact of FL’s corporate The impact of FL’s corporate culture
FL’s corporate corporate culture culture depends on many depends on many factors, such as
culture depends depends on many factors, such as whether FL can whether FL can incorporate GY’s
on many factors. factors, such as whether incorporate GY into its culture factories in low-cost countries into its
FL can incorporate GY successfully. This clash of culture successfully. This clash of
into its culture cultures may mean that FL loses cultures may mean that FL loses its
successfully. its competitive edge. competitive edge.

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Question Answer Marks

2 Advise Jane on whether blue ocean strategy is the most useful approach as she attempts to diversify the 20
business.
Level AO1 Knowledge and AO2 Application AO3 Analysis AO4 Evaluation
understanding 2 marks 8 marks 7 marks
3 marks

3 7–8 marks 6–7 marks


Developed analysis of Effective evaluation
the overall strategy A developed
that identifies judgement/conclusion is made in
connections between the business context that draws
causes, impacts and/or together developed evaluative
consequences. comments which balance some
key arguments in the business
context.

2 2–3 marks 2 marks 4–6 marks 3–5 marks


Developed knowledge Developed application Developed analysis of Developed evaluation
of relevant key term(s) of relevant point(s) to individual strategic • A developed
and/or factor(s) is used the business context. element(s) that judgement/conclusion is
to answer the question. identifies connections made.
between causes, • Developed evaluative
impacts and/or comments which balance
consequences. some key arguments.

1 1 mark 1 mark 1–3 marks 1–2 marks


Limited knowledge of Limited application of Limited analysis that Limited evaluation
relevant key term(s) relevant point(s) to the identifies connections • A judgement/conclusion is
and/or factor(s) is used business context. between causes, made with limited supporting
to answer the question. impacts and/or comment/evidence.
consequences. • An attempt is made to
balance the arguments.

0 0 marks 0 marks 0 marks 0 marks


No creditable response. No creditable response. No creditable response. No creditable response.

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Question Answer Marks

2 Indicative content

AO1 Knowledge and understanding


Knowledge (max 3 marks) can be awarded for any relevant business knowledge on Blue Ocean strategy, including:
• Blue Ocean Strategy – the aim to combine product differentiation with low-cost to develop new markets and demand.
It is about finding new markets with zero or limited competition to gain a competitive advantage. A firm using blue
ocean strategy will not be confined by existing market structures or industry boundaries and will be able to think
‘outside of the box’ to find new ideas and products.
• Create uncontested markets to enter.
• Make the competition irrelevant.
• Create and exploit new demand.
• High value customers, but at a low-cost.
• Product differentiation and low cost.

No further AO1, AO2, AO3 or AO4 without at least one K from blue ocean strategy.

Knowledge can also be awarded for any relevant business knowledge on diversification, including:
• Process/product innovation – changing current processes or developing new products or adopting new ways of
producing products or delivering services.
• Ansoff’s matrix – new product strategy.
• Boston matrix and product life cycle.
• Unique selling point (USP).

Knowledge can also be awarded for any business knowledge of other approaches to developing business strategy,
including:
• scenario planning – identify possible future situations/scenarios.
• SWOT analysis – all four elements.
• PEST analysis – all four elements.
• Porter’s five forces – two forces.
• core competence framework – about the firm’s capabilities/abilities/what it does best.
• Ansoff matrix – all four quadrants.
• force field analysis – driving (for) forces and restraining (against) forces.
• decision trees – probabilities and (net) outcomes – assessing alternatives.

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Question Answer Marks

2 AO2 Application
Application (max 2 marks) can be awarded for applying knowledge of approaches to developing business
strategy, to FL, including:
• FL has a well-known brand name; however this may not help in a diversified market.
• Intrapreneurial management team – likely to have the skills to successfully implement a blue ocean strategy.
• Low-cost factory in a developing country, may have a lack of flexibility in changing production processes and output.
• Highly geared – especially after takeover of GY, which may limit diversification.
• Subscription sales have reached maturity stage – hence need for a new strategy.
• Opportunity to sell manufactured products through other retailers, may suggest a different strategy other than
diversification.
• Opportunity to offer new subscription products – could still be diversified, subscription is only a distribution channel.
• Increasingly competitive market (0 to 5 competitors up to 2020), including established retailers.
• Increasing profit margin in this established market (–2% to 3%).
• Bad publicity about GY factory, which may affect future strategies.

AO3 Analysis
Analysis of the impact of usefulness of approaches to develop business strategy ( and and ) including:
Usefulness of Blue Ocean strategy may include:
• Blue ocean strategy can help FL to gain an uncontested market space to increase revenue – increased profit
margin however it may not have the necessary finance and FL may need to borrow .
• May allow FL to overcome the threat of established retailers entering the market – allow FL to gain new customers and
a USP in a new market.
• FL’s current subscription service is in the maturity stage, so business is unlikely to grow unless they can either extend
the product life cycle or develop a new product – blue ocean strategy may allow FL to see opportunities that exist
beyond their current portfolio.
• FL has a very limited, single product offering, blue ocean strategy may allow FL to diversify and enter a new market,
reducing risk and allowing a more secure future for the business.
• However, FL has a well-known brand-name in the online clothing market and finding new approaches in a new market
may eliminate this strength from the business.
• FL is highly geared and may not be able to finance the likely high cost of developing a new product or service in a new
market.
• FL might be better to focus on their current market instead of developing a totally new market with high risk.
• FL may need to focus on their core competencies instead of diversifying into new markets.
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Question Answer Marks

2 Analysis of the usefulness of other approaches may include:


• Scenario planning could allow Jane to analyse markets and consider uncertainties in each market. It could be
especially useful in finding a diversified market for FL to enter. However, Jane may not know enough about new
markets to plan a scenario.
• SWOT analysis to understand the internal strengths and weaknesses of FL. Use the strengths to overcome future
threats and the opportunities to overcome present weaknesses. Jane may have an excellent understanding of FL, so
she may be able to develop the strengths and overcome the weaknesses. However, with the market and product being
new (diversification) she may not have enough data to understand the threats and opportunities.
• PEST analysis will be useful to understand the external environment of a new potential market. FL currently operates in
an international (global) market, so may already have a good understanding of these external influences. However,
these influences may not be as applicable to a new market/product.
• Porter’s five forces may help Jane to develop an understanding of the forces in a new market. It will require an
investment in market research to understand the competitive nature of each market. Jane can use the five forces to
find market(s) where FL can have a competitive advantage and may have a low intensity of rivalry.
• Jane is likely to understand the core competencies of FL. However, how useful will core competencies be for a
diversified strategy? Many of FL’s core competencies are likely to be transferable (such as administration, marketing,
etc.), however they are in a dynamic and specific environment and depending on what market(s) they diversify into.
• Ansoff matrix may help Jane to categorise different strategies and ignore ones which do not fit into the diversification
quadrant. Ansoff suggests that diversification is the riskiest strategy, and it may help Jane to understand the elements
needed for a successful strategy. However, the board has already asked for a diversification strategy, so may not be as
useful as some other approaches.
• Force field analysis could help Jane to understand the constraining and driving forces that FL could face in a
diversification strategy. This may help Jane to identify actions that need to be taken to reduce constraining forces.
However, Jane may not have enough data and experience to do a force field analysis, especially in a new market –
could require market research.
• Decision trees are unlikely to be helpful in developing a diversification strategy, but they could be used to help decide
between alternative strategies. Jane may find it difficult to obtain the data on probabilities and economic outcomes to
construct a decision tree.

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Question Answer Marks

2 AO4 Evaluation
Evaluation ( and and ) including:
• Blue ocean strategy may give FL a competitive advantage, but it depends on whether Jane/the management team can
come up with another good idea for a new market.
• Blue ocean strategy is likely to be useful in technological businesses and in coming up with new products and
processes because it allows FL to come up with an original idea which may give FL a new market to dominate.
• Jane is likely to need other approaches to develop a new strategy to launch a new product in the next six months, such
as focussing on the core competencies of FL, an updated internal audit, a new external audit (PEST), five forces, etc.
• The time scale given to Jane (six months) may mean that an open approach to developing a new strategy (such as
blue ocean) may not be appropriate. If FL need a ‘quick fix’ then it may be more appropriate to focus on what FL has
already done well, instead of a totally new approach.
• A judgement over which approaches (or combination of approaches) are most likely to be useful for Jane when
attempting to build a strategy of diversification.
• Weighing up of different approaches within the context of FL developing a diversification strategy.
• The need for further data/techniques (such as market research) to enable the use of these techniques. May also
include evaluation of the usefulness of approaches depending on the markets targeted.
• Elements that the use of approaches may depend upon, such as; the market, external influences, timescale needed to
diversify, whether FL can continue in their current market or not, etc.

Accept all valid responses.

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Question Answer Marks

2 Exemplars and annotations for AO3 (assuming relevant AO1 has been awarded):

No credit
L1 (limited L2 (developed L3 (developed analysis of strategy)
(no analysis on FL)
analysis) analysis)

Blue ocean strategy Blue ocean strategy Blue ocean strategy will Blue ocean strategy will allow FL to focus on
will allow FL to focus will allow FL to focus allow FL to focus on markets which have greatest potential to sell
on markets which on markets which markets which have innovative products to the public, thereby
have greatest have greatest greatest potential to sell increasing the profits of FL. However, FL
potential. potential to sell innovative products to the has already achieved significant growth by
innovative products to public, thereby increasing focussing on its core products and a new
the public. the profits of FL. blue ocean strategy may mean that they
lose their competitive edge in this market.

Assuming that the Assuming that the Assuming that the online Assuming that the online fashion market is
online fashion online fashion market fashion market is now a now a red ocean market, blue ocean will
market is now a red is now a red ocean red ocean market, blue help FL find a market with untapped
ocean market, blue market, blue ocean ocean will help FL find a customers to increase its revenue and future
ocean will help FL. will help FL find a market with untapped profits.
market with untapped customers to increase its But if this market is not red ocean, then FL
customers to increase revenue and future profits. might be better to stick to what it knows and
its revenue. increase its market share further to gain
higher profit.

SWOT could be SWOT could be used SWOT could be used to SWOT could be used to focus FL on
used to focus FL on to focus FL on focus FL on overcoming overcoming its threats by using its
overcoming its overcoming its threats its threats by using its weaknesses, for example by increasing
threats by using its by using its weaknesses, for example production in the low-cost factories, which
strengths. weaknesses, for by increasing production may enable FL to compete against the
example by increasing in the low-cost factories, established retailers. However, the SWOT
production in the low- which may enable FL to lacks the detail needed to diversify into a
cost factories. compete against the new market, and therefore may provide
established retailers. weak information for decision making.

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Question Answer Marks

2 Exemplars and annotations for AO4 (assuming relevant AO1 has been awarded):

No credit
L1 L2 (developed supporting L3 (developed supporting
(no supporting
(limited supporting evidence) evidence with context)
evidence)
evidence)

Blue ocean Blue ocean strategy is Blue ocean strategy is the most Blue ocean strategy is the most useful
strategy is the most the most useful useful approach as Jane attempts approach as Jane attempts to
useful approach as approach as Jane to diversify the business because diversify the business because it
Jane attempts to attempts to diversify it allows FL to find an uncontested allows FL to find an uncontested
diversify the the business because market. This could allow FL to market. This could allow FL to
business. it allows FL to find an dominate this new market and dominate this new market and lead to
uncontested market. lead to greater success. greater success than the 4% it has of
the online fashion market.

The usefulness of The usefulness of The usefulness of blue ocean The usefulness of blue ocean
blue ocean blue ocean depends depends on the skills of the depends on just how experienced the
depends on many on the skills of the people using it. new Director of Strategy, recruited by
factors. people using it. The risk involved in diversification Jane actually is.
may mean that by focussing on a The risk involved in diversification
blue ocean market, FL may lose may mean that by focussing on a blue
its competitiveness in the online ocean market, FL may lose its
fashion market. competitiveness in the online fashion
market.

FL should use a FL should use a core FL should use a core competency FL should use a core competency
core competency competency framework so that FL does not framework so that FL does not lose
framework. framework so that FL lose sight of what has made it sight of what has made it successful
does not lose sight of successful up until now. There is up until now. There is no reason why
what has made it no reason why FL cannot use FL cannot use what the business
successful up until what the business does well now does well now, such as its well-known
now. to help enter a diversified market. brand name in the online fashion
market, to help enter a diversified
market.

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