Aqa 71322 MS Jun22

A-level
BUSINESS
7132/2
Paper 2 Business 2
Mark scheme
June 2022
Version: 1.0 Final
*227132/2/MS*
MARK SCHEME – A-LEVEL BUSINESS – 7132/2 – JUNE 2022
Mark schemes are prepared by the Lead Assessment Writer and considered, together with the relevant
questions, by a panel of subject teachers. This mark scheme includes any amendments made at the
standardisation events which all associates participate in and is the scheme which was used by them in
this examination. The standardisation process ensures that the mark scheme covers the students’
responses to questions and that every associate understands and applies it in the same correct way.
As preparation for standardisation each associate analyses a number of students’ scripts. Alternative
answers not already covered by the mark scheme are discussed and legislated for. If, after the
standardisation process, associates encounter unusual answers which have not been raised they are
required to refer these to the Lead Examiner.
It must be stressed that a mark scheme is a working document, in many cases further developed and
expanded on the basis of students’ reactions to a particular paper. Assumptions about future mark
schemes on the basis of one year’s document should be avoided; whilst the guiding principles of
assessment remain constant, details will change, depending on the content of a particular examination
paper.
Further copies of this mark scheme are available from aqa.org.uk
Copyright information
AQA retains the copyright on all its publications. However, registered schools/colleges for AQA are permitted to copy material from this booklet for their own
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Copyright © 2022 AQA and its licensors. All rights reserved.
2
Level of response marking instructions

Level of response mark schemes are broken down into levels, each of which has a descriptor. The
descriptor for the level shows the average performance for the level. There are marks in each level.
Before you apply the mark scheme to a student’s answer read through the answer and annotate it (as
instructed) to show the qualities that are being looked for. You can then apply the mark scheme.
Step 1 Determine a level

Start at the lowest level of the mark scheme and use it as a ladder to see whether the answer meets the
descriptor for that level. The descriptor for the level indicates the different qualities that might be seen in
the student’s answer for that level. If it meets the lowest level then go to the next one and decide if it
meets this level, and so on, until you have a match between the level descriptor and the answer. With
practice and familiarity you will find that for better answers you will be able to quickly skip through the
lower levels of the mark scheme.
When assigning a level you should look at the overall quality of the answer and not look to pick holes in
small and specific parts of the answer where the student has not performed quite as well as the rest. If
the answer covers different aspects of different levels of the mark scheme you should use a best fit
approach for defining the level and then use the variability of the response to help decide the mark within
the level, ie if the response is predominantly level 3 with a small amount of level 4 material it would be
placed in level 3 but be awarded a mark near the top of the level because of the level 4 content.
Step 2 Determine a mark

Once you have assigned a level you need to decide on the mark. The descriptors on how to allocate
marks can help with this. The exemplar materials used during standardisation will help. There will be an
answer in the standardising materials which will correspond with each level of the mark scheme. This
answer will have been awarded a mark by the Lead Examiner. You can compare the student’s answer
with the example to determine if it is the same standard, better or worse than the example. You can then
use this to allocate a mark for the answer based on the Lead Examiner’s mark on the example.
You may well need to read back through the answer as you apply the mark scheme to clarify points and
assure yourself that the level and the mark are appropriate.
Indicative content in the mark scheme is provided as a guide for examiners. It is not intended to be
exhaustive and you must credit other valid points. Students do not have to cover all of the points
mentioned in the Indicative content to reach the highest level of the mark scheme.
An answer which contains nothing of relevance to the question must be awarded no marks.
3
Marking guidance
• Be clear on the focus of the question.

• Read the response as a whole; follow the flow of the argument as a whole.
• Remember that the indicative content provides possible lines of argument but there may be others that
are equally valid. Be willing to credit other lines of argument.
• Annotate the script as you read in accordance with the instructions given at standardisation.
• Consider what it all adds up to, eg is this a good response? A reasonable one? A limited one? Refer
back to the standardisation scripts and guidance to help you benchmark. You are marking to the
standard agreed at standardisation.
• Summarise your findings briefly at the end of the response. This will help you decide on the overall
level and is helpful for others to understand the mark given, eg for an extended response ‘well-argued’
but does not focus fully on the issue of ‘long-term’ feels as if it might be good rather than excellent.
Make sure the comments fit with the level awarded: ‘unbalanced and not comparing with alternative
solutions’ does not sound as if it is ‘good’.
• Next to your comment put the level awarded, eg L4.
• If in doubt about an approach contact your Team Leader, do not make up your own rules because we
must have a standardised approach across all marking. Be positive in your marking. Look to reward
what is there.
Annotations Key
Annotation Definition
T Free text box – use this for making comments at end of sections/answers
Bal Balance
BD Benefit of Doubt
Cross Incorrect
J Judgement/Evaluation
KU Knowledge/Understanding
NFF Losing Focus/Not Fully Focused
An Analysis without context
Arg Argument with analysis and context
Dev Developed
DP Developed point
CON Context
? Question mark - uncertain
V Vague
NAQ Not answered question
OFR Own figure rule
Rng Range
SEEN Indicates that the point has been noted, but no credit has been given
Tick Correct point/Calculation
Levels used at the end of the response
L1 Level 1
L2 Level 2
L3 Level 3
L4 Level 4
4
0 1 . 1 What is meant by the term extrapolation?

[2 marks]
Marks for this question: AO1 = 2
Extrapolation is the action of estimating or concluding something by assuming that existing trends will
continue.
Or the extension of a graph, curve, or range of values by inferring unknown values from trends in the
known data.
2 marks for good understanding

1 mark some/partial understanding of the term
0 1 . 2 Using Appendix B, calculate the combined market share of the top four tea brands in
2019.
[3 marks]
Marks for this question: AO1 = 1, AO2 = 2
Total market = £562m (108 + 99 + 98 + 90 + 23 + 144)

Top four brands = £395m (108 + 99 + 98 + 90)
395m
Market share of 'top four' = × 100 = 70.28%
562m
3 marks for correct answer 70.28% or 70.3%

2 marks for partial calculation eg with one error or % sign missing
1 mark for calculation of both elements e.g. total market = £562m and Top four brands = £395m
1 mark for correct definition of market share with no valid calculation or correct formula
5
0 1 . 3 Using the data in Appendix D, explain one benefit of the use of market segmentation to a
business selling tea.
[4 marks]
Marks for this question: AO1 = 2, AO2 = 2.
Level The student will typically demonstrate: Marks
A good response that focuses on many of the demands of the

3 question. 4
• Benefit explained clearly in context.
A reasonable response overall that focuses on some of the demands

2 of the question. 3–2
• Good understanding. Or some understanding with some use of case.
A limited response overall that focuses on a few demands of the

1 question. 1
• Some understanding of market segmentation.
The demands of the question are:
• to demonstrate an understanding of market segmentation

• explain a benefit of market segmentation
• to contextualise to the tea market by using the data.
Indicative content:
• market segmentation is splitting the consumers into groups depending on certain characteristics
• benefits of this incudes better understanding customer needs; better targeting of promotional
messages; designing products more in line with segments’ needs
• targeted promotion may be a way to save money as well as being more effective
• relevant data provided includes:
• Age –
• over 65s drink black tea more frequently
• younger people are more likely to never drink tea
• Gender – males less likely to drink health tea
• Lifestyle –
• ethical sourcing seen as important
• growing niche parts of market are associated with health benefits.
Allow other relevant arguments.
6
0 1 . 4 A business sells two types of tea: black tea and health tea.
Analyse how the data in Appendix C will affect how this business might change the price
it charges for each type of tea to increase its sales revenue.
[9 marks]
Marks for this question: AO1 = 2, AO2 = 3, AO3 = 4
A good response overall that focuses on many of the demands of the

question.
Provides an answer to the question set that:
3 • demonstrates a depth and range of knowledge and understanding of issues 7–9
in the question
• demonstrates analysis which is well-developed and is applied effectively to
the context.
A reasonable response overall that focuses on some of the demands of

the question.
2 • demonstrates a limited knowledge and understanding of a range of issues 4–6
in the question or a good knowledge and understanding of relatively few
issues in the question
• demonstrates analysis which is developed and is applied to the context.
A limited response overall with little focus on the demands of the
question.
1 • demonstrates a limited range and depth of knowledge and understanding of 1–3
• demonstrates analysis with little development and with mainly descriptive
application to the context.
• show understanding of price elasticity of demand

• interpret the figures of –0.5 as price inelastic and –1.2 as price elastic
• analyse a link between price elasticity of demand, a related pricing strategy and increasing sales
revenue.
Indicative content:
• a clear chain of argument interpreting the meaning of the –0.5 figure; health tea being price inelastic
demand
• price inelastic demand will allow the business to increase price of health tea and as percentage
increase in price will be half the fall in percentage demanded then revenue would rise if price
increased
• a clear chain of argument interpreting the meaning of the –1.2 figure; black tea being price elastic
demand
• price elastic demand will allow the business to decrease the price of black tea then revenue would rise
if price decreased.
7
0 1 . 5 To what extent does the information provided suggest that now is a good time to launch a
new brand of tea?
[16 marks]
Marks for this question: AO1 = 2, AO2 = 3, AO3 = 4, AO4 = 7
An excellent response overall that is fully focused on the key demands

of the question.
• demonstrates a depth and range of knowledge and understanding that is
precise and well-selected in relation to issues in the question
4 • demonstrates analysis throughout which is well-developed, is applied 13–16
effectively to the context and considers a balanced range of the issues in
the question
• makes judgements or provides solutions which are built effectively on
analysis, show balance and have a clear focus on the question as a whole
throughout.
question.
• demonstrates a depth and range of knowledge and understanding of
3 issues in the question 9–12
• demonstrates analysis which is well-developed, applied effectively to the
context and considers a range of issues in the question
• makes judgements or provides solutions which are built on analysis, show
balance and address the question as a whole throughout.
the question.
• demonstrates a limited knowledge and understanding of a range of issues
• demonstrates analysis which is developed, applied to the context and
considers some of the issues in the question
• makes judgements or provides solutions which are built on analysis, but
lack balance and not fully focused on the question as a whole.
question
• demonstrates a limited range and depth of knowledge and understanding
of issues in the question
1 1–4
• demonstrates analysis with little development, mainly descriptive
application to the context and considers a limited number of issues in the
question
• makes judgements or proposes solutions which have limited links to
analysis or limited focus on the question as a whole.
8
• to consider the arguments for it being a good time to launch a brand of tea
• to consider the arguments against it being a good time to launch a brand of tea
• to consider the balance of arguments to make a judgement about the decision based on the
information provided.
Indicative content:
• the traditional tea market is declining at a significant rate potentially making it a bad time
• the traditional tea market remains large and valuable, so could be an attractive time
• the tea market is sub-divided and there are growing niches that could be focused on
• younger people are favouring coffee and health (herbal/fruit/green) tea
• ethically sound products may be favoured – does this provide an opportunity to focus on
• established brands are very strong brands – providing a large barrier to entry (Porter) – sales
dominance of top four brands so not a good time to enter – could use calculation from Question 2
(70.32%) or OFR.
However, need to consider:

• Finance – is the new brand able to penetrate the market effectively eg is it a brand with backing
(financial or as a name) from another market. If so it may more readily enter the market.
• Other information (data beyond that provided) would be useful – such as the channels of distribution
available eg dominance of supermarkets; the coffee market; the scale at which the new brand wishes
to operate.
Overall, there may be opportunities even though the market is declining, but it will depend upon a range
of factors eg:
• the niche/segment being aimed at
• what the new brand’s USP is
• how well the brand can be supported and promoted.
9
0 2 . 1 What is meant by the term shareholder dividend?

[2 marks]
Marks for this question: AO1 = 2
Dividend is the reward to shareholders, the proportion of the profits allocated to shareholders. It is
allocated in relation to the number of shares held.
1 mark: some understanding shown

2 marks: good understanding
0 2 . 2 Explain why the Ocado share price rose following the announcement of the venture.
[4 marks]
A good response that focuses on many of the demands of the question.

3 4
• Reason why is explained clearly in context.

the question.
2 3–2
• Good understanding of share price movements. Or some understanding
with some use of case.

1 question. 1
• Some understanding of share price movements.
• To demonstrate an understanding of the meaning of ‘share price’.

• To analyse the cause and process of the change in share price. Particularly in the context of the
announcement of the (joint) venture.
Indicative content:
• shareholders are investors and owners of the business

• the venture was being viewed positively
• potential investors may therefore be attracted to Ocado, increasing demand for shares
• more demand (other things being equal) will lead to the rise in share price.
10
0 2 . 3 With reference to Maslow’s theory, analyse the possible impact of this venture on the
motivation of senior managers of the two businesses.
[9 marks]


question.
in the question
the context.

the question.

question.
• to show understanding of selected elements from Maslow’s motivation theory

• to relate this to the context of senior managers cooperating on a challenging venture.
Indicative content:
• the venture is a high profile and important project for both businesses and should give the managers
pride (esteem)
• if successful – managers will be proud of their part in it and this can help higher level needs (esteem
or even self-actualisation)
• cooperation with new people in different organisations will be interesting and may motivate through
social level ie teamwork
• the whole venture is a massive investment showing the importance (esteem) but also if successful will
secure the future of both businesses (security).
• If the senior managers of one of the companies feels the venture is a threat to their business, it could
have a negative effect on motivation – making the feel undermined reducing their motivation (security).
• If the senior managers of one of the companies feels the venture is a threat to their position, it could
have a negative effect on motivation – reducing their motivation (esteem).
11
0 2 . 4 Are ventures a good way for all businesses to grow?
Justify your view.

[16 marks]

of the question.
the question
analysis, show balance and have a clear focus on the question as a whole
throughout.

question.
• demonstrates a depth and range of knowledge and understanding of issues
3 in the question 9–12

the question.
2 in the question or a good knowledge and understanding of relatively few
issues in the question 5–8
12

question.
• demonstrates a limited range and depth of knowledge and understanding of
1 issues in the question
1–4
question
• to analyse the case for and against (joint) ventures being a good way to grow
• to judge the relative merits of (joint) ventures against other ways of growing a business
• for all businesses.
Indicative content:
Ventures see the cooperation of two or more businesses on a project in order to benefit the interests of
each of the businesses involved. Could refer to the case and/or other examples.
Reasons venture may be a good way to grow include:

• it may utilise the strengths of the 2 parties to the mutual benefit of both – possibly shown in this case
• a venture may allow sharing specialist skills or equipment
• a venture may be a cheaper option than eg developing completely new skills ‘in-house’ or a full
takeover.
However, ventures may be difficult:

• there may be mistrust between the parties
• cooperation and communication may be difficult
• if one party is seen as stronger than the other the second may struggle to enjoy the full benefits.
Also, other methods of growth could be provided as a counter argument:

• organic growth – keeps control and allows communication and systems to evolve as the business
grows
• merger/acquisition may be better as it allows a clearer direction and structure to develop rather than
on going coordination issues of a venture.
Overall it will depend on:

• the situation in the market
• the strategic direction of the businesses
• the relative strengths and weaknesses of the businesses involved
• elements of the external environment.
13
0 3 . 1 With reference to Figure 1, calculate the lead time.

[2 marks]
Reading from the graph:
Reorder level is reached on day 11

Inventory arrives on day 15
Lead Time is 15-11 = 4 days
An alternative method is:

In 15 days it has used 5250 units (6000 – 750)
It reorders at 2150 and has a buffer of 750 i.e. uses 1400 after reordering
1400/5250 is the proportion used after reordering
So (1400/5250) x 15 = 4 days which is the lead time
2 marks for correct answer of 4 days

1 mark for answer 4 but no ‘days’
1 mark for definition, demonstrating understanding of lead time
0 3 . 2 With reference to Figure 1, calculate the re-order quantity.

[2 marks]
Maximum stock level is 6,000; Buffer stock level 750. 6,000 - 750 = 5,250
2 marks for correct answer of 5250 units

1 mark for 5250 with no ‘units’
1 mark for 3850 units
1 mark for definition, demonstrating understanding of reorder quantity
0 3 . 3 With reference to Figure 1, calculate how much inventory DT uses each day.
[2 marks]
The reorder quantity (5250) is used over a period of 15 days.
5250
= 350 units per day.
15
Credit alternative methods to calculate the same figure.
2 marks OFR (from 3.2) = x units per day

15
2 marks for correct answer of 350 units/units per day
1 mark for answer 350 but no ‘units/units per day’
1 mark for some understanding or partial calculation eg one error
14
0 3 . 4 Explain one impact of a fall in the value of the pound on DT’s sales.
[4 marks]
A good response that focuses on many of the demands of the question.

3 4
• Impact of a fall in the value of the pound is explained clearly in context.

the question.
2 3–2
• Good understanding of exchange rates. Or some understanding with
some use of case.

1 question. 1
• Some understanding of exchange rates or relevant point made.
The demands of the question:
• to understand the impact of a fall in value of the pound

• understand the context of a business trading internationally
• linking a change through to DT’s sales.
Indicative content:
• exchange rate is the price of one currency in terms of another

• DT exports to Europe all of its product
• if the pound falls in value (relative to the Euro for example) the products will appear less expensive to
European customers, meaning that sales are likely to be positively affected
Allow other relevant answers.
15
0 3 . 5 Analyse how contingency planning might have helped DT maintain its competitiveness.
[9 marks]

question.
in the question
the context.

the question.

question.
• to understand contingency planning

• to analyse how this may help DT reduce the negative impacts of problems with supply
• to analyse this through to the impact on competitiveness.
Indicative content:
• contingency plans allow a business to work through ‘what if’ scenarios to plan in case predictable
disruptions might occur
• in effect the contingency plan allows managers to give thought to what to do if XYZ happens –
meaning if something does happen the business does not start from scratch and will appear more
organised in tackling problem
• in this case the business had no contingency plan.
• managed to source alternatives – but not quickly enough to fulfil existing orders, at greater cost and
with more defects.
• but at least this maintained production and kept supplying customers
• in this case the events were unexpected – so possibly not part of a contingency plan – but if the
process of planning had happened managers may be equipped to manage changes
• with no plan, some customers’ were not fulfilled and as a result competitiveness may fall.
16
0 3 . 6 Reliability is the most important factor in a business’ choice of supplier. To what extent is
this true for all businesses?
[16 marks]

of the question.
the question
analysis, show balance and have a clear focus on the question as a
whole throughout.

question.
• demonstrates a depth and range of knowledge and understanding of
A reasonable response overall that focuses on some of the demands

of the question.
2 in the question or a good knowledge and understanding of relatively few
issues in the question 5–8

question.
• demonstrates a limited range and depth of knowledge and understanding
1 of issues in the question
1–4
question
17
• to analyse the case for and against the reliability of suppliers being the most important factor
• to judge the extent to which reliability of supply is the most important factor in choice of supplier
• for all businesses.
Indicative content:
Choice of supplier is important for many businesses and will take into account many factors – quality;
price charged; after sales service; ethical issues as well as reliability.
Reliability is the most important as:

• delays in supply will potentially interrupt production
• it can have a knock-on effect to your customers making your business appear unreliable to your
customers
• many businesses wish to keep buffer stock as low as possible to help financially, this will need
suppliers to be reliable eg to operate JiT systems.
Reliability not the most important as:

• you could plan to mitigate the impact – run a larger buffer stock if a less reliable supplier has other
great attributes
• other factors may be more important:
• most obviously price charged, the cheapest supplier may allow your business to increase profit
margins or reduce final price
• quality − the best quality – could this make up for lack of reliability.
The extent to which reliability is the most important factor will depend upon:
• the nature of the business
• the type of business/industry
• the nature of the product and the final customer expectations
• does the supplier supply competitors too so effect may be mirrored – ie a monopsony supplier may be
equally unreliable for your business and competitors?
• the way the business manages its inventory.
Judgement should be supported with prior arguments.
18

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A-level

Further copies of this mark scheme are available from aqa.org.uk

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Level of response marking instructions

Step 1 Determine a level

Step 2 Determine a mark

• Be clear on the focus of the question.

Levels used at the end of the response

0 1 . 1 What is meant by the term extrapolation?

Marks for this question: AO1 = 2

2 marks for good understanding

Marks for this question: AO1 = 1, AO2 = 2

Total market = £562m (108 + 99 + 98 + 90 + 23 + 144)

3 marks for correct answer 70.28% or 70.3%

Marks for this question: AO1 = 2, AO2 = 2.

Level The student will typically demonstrate: Marks

A good response that focuses on many of the demands of the

A reasonable response overall that focuses on some of the demands

A limited response overall that focuses on a few demands of the

The demands of the question are:

• to demonstrate an understanding of market segmentation

Allow other relevant arguments.

Marks for this question: AO1 = 2, AO2 = 3, AO3 = 4

Level The student will typically demonstrate: Marks

A good response overall that focuses on many of the demands of the

A reasonable response overall that focuses on some of the demands of

The demands of the question are:

• show understanding of price elasticity of demand

Allow other relevant arguments.

Marks for this question: AO1 = 2, AO2 = 3, AO3 = 4, AO4 = 7

Level The student will typically demonstrate: Marks

An excellent response overall that is fully focused on the key demands

The demands of the question are:

However, need to consider:

Allow other relevant arguments.

0 2 . 1 What is meant by the term shareholder dividend?

Marks for this question: AO1 = 2

1 mark: some understanding shown

Marks for this question: AO1 = 2, AO2 = 2

Level The student will typically demonstrate: Marks

A good response that focuses on many of the demands of the question.

A reasonable response overall that focuses on some of the demands of

A limited response overall that focuses on a few demands of the

The demands of the question are:

• To demonstrate an understanding of the meaning of ‘share price’.

• shareholders are investors and owners of the business

Allow other relevant arguments.

Marks for this question: AO1 = 2, AO2 = 3, AO3 = 4

A good response overall that focuses on many of the demands of the

A reasonable response overall that focuses on some of the demands of

A limited response overall with little focus on the demands of the

The demands of the question are:

• to show understanding of selected elements from Maslow’s motivation theory

Allow other relevant arguments.

0 2 . 4 Are ventures a good way for all businesses to grow?

Justify your view.

Marks for this question: AO1 = 2, AO2 = 3, AO3 = 4, AO4 = 7

Level The student will typically demonstrate: Marks

An excellent response overall that is fully focused on the key demands