Mr David White
INTERNATIONAL BACCALAURÉAT BACHILLERATO
c
BACCALAUREATE INTERNATIONAL INTERNACIONAL
N04/370/S(2)M+
MARKSCHEME
November 2004
BUSINESS AND MANAGEMENT
Standard Level
Paper 2
14 pages
–2–
N04/370/S(2)M+
This markscheme is confidential and for the exclusive use of examiners in this examination session. It is the property of the International Baccalaureate and must not be reproduced or distributed to any other person without the authorization of IBCA.
–3– 1. (a) Explain what is meant by the phrase strong cash flow position.
N04/370/S(2)M+ [2 marks]
A strong cash flow position occurs when the balance between inflows and outflows of cash is favourable and enables the business to meet its daily cash needs without cash problems. [2 marks] A full explanation of the strong cash flow is evident. [1 mark] Some explanation of the strong cash flow is evident. (b) Explain two potential advantages for Bcool of aiming their product at a specific group such as “the 15-25 year old market”. Answers might include risk spreading (since it is a new market) increase product portfolio; more options for profit easier to identify and select celebrities for promotion easier to identify appropriate media for advertising less “waste” in advertising effort. For example a good response will argue that this new market segment could offer opportunities for greater profits because demographic changes could increase the market size in the 15-25 year old market and that having a clear definition of your target group will provide opportunities to ensure that the marketing mix is tailored to this market segment (young, internationally minded). [3 to 4 marks] Identifies two advantages and offers a good explanation of two advantages in relation to the case study. [1 to 2 marks] Identifies at least one advantage and offers an explanation. [4 marks]
–4– (c)
N04/370/S(2)M+
Analyse three factors that could allow Bcool to set its prices “10-15 % higher than
c
BACCALAUREATE INTERNATIONAL INTERNACIONAL
N04/370/S(2)M+
MARKSCHEME
November 2004
BUSINESS AND MANAGEMENT
Standard Level
Paper 2
14 pages
–2–
N04/370/S(2)M+
This markscheme is confidential and for the exclusive use of examiners in this examination session. It is the property of the International Baccalaureate and must not be reproduced or distributed to any other person without the authorization of IBCA.
–3– 1. (a) Explain what is meant by the phrase strong cash flow position.
N04/370/S(2)M+ [2 marks]
A strong cash flow position occurs when the balance between inflows and outflows of cash is favourable and enables the business to meet its daily cash needs without cash problems. [2 marks] A full explanation of the strong cash flow is evident. [1 mark] Some explanation of the strong cash flow is evident. (b) Explain two potential advantages for Bcool of aiming their product at a specific group such as “the 15-25 year old market”. Answers might include risk spreading (since it is a new market) increase product portfolio; more options for profit easier to identify and select celebrities for promotion easier to identify appropriate media for advertising less “waste” in advertising effort. For example a good response will argue that this new market segment could offer opportunities for greater profits because demographic changes could increase the market size in the 15-25 year old market and that having a clear definition of your target group will provide opportunities to ensure that the marketing mix is tailored to this market segment (young, internationally minded). [3 to 4 marks] Identifies two advantages and offers a good explanation of two advantages in relation to the case study. [1 to 2 marks] Identifies at least one advantage and offers an explanation. [4 marks]
–4– (c)
N04/370/S(2)M+
Analyse three factors that could allow Bcool to set its prices “10-15 % higher than