Cambridge International AS & A Level

BUSINESS 9609/42
Paper 4 Business Strategy May/June 2024
MARK SCHEME
Maximum Mark: 40

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 May/June 2024 series for most
Cambridge IGCSE, Cambridge International A and AS Level and Cambridge Pre-U components, and some
Cambridge O Level components.

This document consists of 16 printed pages.

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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 descriptions 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.

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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).

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).

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

Description Description Description Description

3 7–8 marks 6–7 marks

Developed analysis of the Effective evaluation
overall strategy that A developed judgement/conclusion is
identifies connections made in the business context that draws
between causes, impacts together developed evaluative
and/or 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 of Developed application of Developed analysis of Developed evaluation
relevant key term(s) and/or relevant point(s) to the individual strategic  A developed judgement/conclusion
factor(s) is used to answer business context. element(s) that identifies is made.
the question. connections between  Developed evaluative comments
causes, impacts and/or which balance some key
consequences. 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) and/or relevant point(s) to the identifies connections  A judgement/conclusion is made
factor(s) is used to answer business context. between causes, impacts with limited supporting
the question. and/or consequences. comment/evidence.
 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.

Please refer to this grid when marking both questions.

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Question Answer Marks

1 Evaluate the extent to which CA’s operations strategy between 2019 and 2024 led to the failure of the city Z branch. 20

AO1 Knowledge and understanding

Knowledge (max 1 mark) can be awarded for any relevant business knowledge about operations, including:

 The transformation process  The need for flexibility with regard to volume, delivery
 Efficiency, effectiveness, productivity and time and specification
sustainability  Process innovation: changing current processes or
 Capital intensive and labour intensive operations adopting new ways of producing products or
 Job, batch, flow and mass customisation delivering services
 Managing inventory, including JIT  Location
 Capacity utilisation  Internal and external economies and diseconomies of
 Outsourcing scale
 Location  Quality management
 Economies and diseconomies of scale  Benchmarking
 Quality management, including benchmarking  Improving flexibility and innovation
 The influence of human, marketing and finance  Enterprise resource planning (ERP)
resource availability on operations decisions  Lean production
 The changing role of Information Technology (IT) and  Operations planning, including critical path analysis.
Artificial Intelligence (AI)

Award for any explanation of relevant business knowledge, up to a max of 2 marks.

Operations strategy involves lean production, which is about reducing waste . One way to 1 K for identification
implement lean production is using just in time, which involves only ordering inventory when and 1 DEV for a
it is needed . point of explanation

AI can improve the efficiency of a business because it uses a computer instead of a person 1 K for identification
. A computer can work seven days a week for 24 hours a day . Unlike a person who and 2 DEVs for two
is legally allowed to take comfort breaks and breaks for meals . points of explanation

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Question Answer Marks

1 AO2 Application
Application (max 2 marks) can be awarded for applying operations/operations strategy to CA between 2019 and
2024 CA’s operations decisions, including:
 CA is Nala’s first job after university, only experience before being made Operations Manager was as a cleaner for CA.
 Planning opening of the new city Z branch, including:
– The use of critical path analysis
– 13 weeks to plan and open the branch (assuming no delays)
– Float available on activities C, D, F, G and H
– Critical path = A, B, E and J
– No built-in time to respond to research results
 Lean production methods introduced by Nala in 2021, including:
– Kaizen (continuous improvement) introduced throughout city Z branch
– All cleaners are placed in a quality circle, including one manager and eight cleaners in each team
– A target to ethically recycle 90% of customers waste
– Just in time re-ordering of cleaning materials
 CA’s new AI system introduced in 2022, including:
– Majority of customer services operatives made redundant
– Chatbot system to interact with customers
– Book appointments, answer customer queries and take complaints
– Poor customer/media reaction
 Comparison between the operations of the city Z branch and the city A branch of CA in 2023, including:
– City Z branch has lower revenue than city A
– City Z branch has sightly improved revenue between 2021 and 2023 (2% increase)
– City A branch has 10% improved revenue between 2021 and 2023
– City Z branch has improved revenue, same number of cleaners whereas city A branch has increased cleaners
– City Z branch has a loss of $0.1m in 2023, compared to an increased profit for city A branch.
– City Z branch has increased direct costs, despite introduction of lean production methods
– Rate of inventory turnover has increased in city Z branch (suggesting improvement) but may not have added to
cost savings.

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Question Answer Marks

1 AO3 Analysis
Analysis is likely to be based on how operations may have affected CA’s decision making ( and and ) between
2019 and 2024, including:
 Nala’s inexperience – poor decision making – too much responsibility – may have been integral to the failure of city Z
branch – particularly important since city A branch has increased profitability.
 Did the city Z branch open too quickly? – Is 13 weeks long enough to plan such a large investment? – poor
implementation of decisions.
 Critical path analysis is a useful theoretical tool, but does it have enough practical value when Nala and the business
are new to the city? – increased costs – reduced profit.
 Built-in float may suggest inefficiency – Was the rent paid for too long before opening? – increased costs – reduced
profitability.
 Employee recruitment in city Z had float – increased costs – reduced profit.
 However, CPA may have led to a more efficient opening – reduced costs – increased profit.
 No float between advertising and bookings – efficient.
 CPA allowed Nala to focus on what areas are most important – increased efficiency.
 Kaizen may have allowed more creative ideas to come from every area of the business – lower costs – however also
detracts from the primary task of the cleaners (and other employees) – increased costs.
 Likewise, quality circles may detract from cleaning – may theoretically (academically) increase value of workforce but
could lead to wasted time not focused on primary tasks like cleaning – increased costs. Also there may be problems of
bringing mainly part-time employees together for meeting – may incur additional costs for wages. Also, attendance and
contributions might depend on whether workers are paid for attending or not – employees may feel resentful and
become demotivated – deceased productivity.
 Ethical recycling of customer waste may provide a USP to CA in city Z – however only if customers value this in the
market.
 Just in time ordering may decrease costs of holding inventory – however it may lead to wasted time without necessary
supplies.
 Chatbot system may lead to reduced indirect costs (less customer service employees needed) – however seems to
have irritated customers and may lead to losing established customers going to other firms.
Link between figures in Appendix 4 and operations decisions.

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Question Answer Marks

1 AO4 Evaluation
Evaluation ( and and ) including:

Evaluation will largely depend on the points raised in the analysis.

 A judgement over the extent to which operational decisions between 2019 and 2024 led to the failure of CA’s city Z
branch.
 Discussion over the contribution of the separate and combined decisions on the eventual failure of the city Z branch,
 The extent to which the decisions alone led to the failure of the city Z branch.
 Other likely influences on the failure of the city Z branch, such as the state of the economy in city Z, human resource
management of the cleaners and indirect staff, Nala’s personality, unrealistic expectations of the board of directors of
CA, marketing of CA, especially for the city Z branch, the financing given to help the city Z branch become successful
etc.
 The extent to which the failure of the city Z branch could be attributed to the operational decisions alone.
 The extent to which CA itself was deemed successful (city A branch).

Accept all valid responses.

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Question Answer Marks

1 Exemplars for awarding evaluation:

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

The operations The operations The operations strategy did lead to The operations strategy did lead to
strategy did lead strategy did lead to the failure of the city Z branch the failure of the city Z branch
to the failure of the failure of the city because it was poorly because it was poorly implemented
the city Z branch. Z branch because it implemented. This meant that the by Nala who was inexperienced.
was poorly money spent on the lean This meant that the money spent on
implemented. production methods was wasted the lean production methods was
and it could have been spent on wasted and it could have been
something else. spent on something else.

The reason the The reason the city The reason the city Z branch failed The reason the city Z branch failed
city Z branch Z branch failed was was due to the marketing not the was due to the marketing not the
failed was due to due to the operations. This is because they operations. This is because they did
the marketing. marketing not the did not do enough market research not do enough market research to
operations. to back up their strategic back up their strategic decisions,
decisions. such as research whether
customers want 90% of their waste
recycled.

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Question Answer Marks

2 Advise Nala on the most important elements to be included in a corporate plan for the future of the city Z branch. 20

AO1 Knowledge and understanding

Knowledge (max 1 mark) can be awarded for any relevant business knowledge about a corporate plan / corporate
planning, including, including:
 Knowledge of the contents of a corporate plan, including:
– mission/vision
– objectives
– strategic planning
– external influences on a business: social, legal, economic, environmental, ethical, political, technological
– functional data: marketing, operations management, human resources management, financial management
– contingency planning, risk management
 Knowledge of the process of corporate planning, including:
– a corporate plan is similar to a strategic plan
– used for businesses with multiple business units or subsidiaries/parts
– defines business direction
– and business strategy to get there
– usually refers to the broader business as a whole, not individual parts/functions
– steps involved in corporate planning, such as assess your current strategy/position, identify objectives, develop
your strategic plan and determine performance metrics, implement and share plan, revise and amend.

Award for any explanation of relevant business knowledge, up to a max of 2 marks.

A corporate plan shows the objectives and strategy of a business . It may also outline the 1 K for identification
external influences facing the business, such as economic influences . and 1 DEV for a
point of explanation

Corporate planning involves defining the direction a business is heading and the strategy 1 K for identification
involved in meeting its objective . It is a broad plan for the entire business, not just any and 2 DEVs for two
points of explanation
one function, such as marketing .

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Question Answer Marks

2 AO2 Application
Application (max 2 marks) can be awarded for applying knowledge of a corporate plan or corporate planning, to
CA and/or the city Z branch, including:
 Nala has experience as a cleaner, Operations Manager with CA and planning and management of a branch of CA.
 Nala has contacts that she built up (employees, customers, local information) in her role with CA.
 Data from the timeline.
 Data from the appendices.
 A corporate plan is required by the bank to finance her new start-up.

AO3 Analysis
Analysis is likely to be based on the elements of a corporate plan or corporate planning ( and and ) for CA
and/or the city Z branch.

Arguments of what should (or should not) be included in Nala’s corporate plan for a new cleaning business, including:
 Mission/vision – to give the business direction – important for a new business and to convince the bank to provide
finance for the new business – however this might not be useful as the separate business has not been set up yet.
 Objectives – likely to be Nala’s own objectives, unless she is planning to bring in shareholders – a new business is
likely to focus on survival and/or providing Nala with enough income to survive.
 Strategic planning – likely to be one of the most important elements of Nala’s corporate plan as this will give the bank
an idea of how she plans to achieve her objectives and repay any finance loaned – Nala may have more experience of
her strategy than many start-up businesses as she has managed the city Z branch for the past four years (she has
expertise).
 External influences on a business – may be less important to inform the bank/Nala as these will be common to all
businesses in city Z and/or market. However, Nala may need to provide evidence to the bank (and other stakeholders)
that she has recognised these influences.
 Functional data:
– Marketing – to prove that Nala understands the cleaning market in city Z and to show that she has a plan to reach
her target market in sufficient numbers to meet her objectives.
– Operations management – Nala’s area of expertise (as a previous Operations Manager of CA) and important to
show that she is able to deliver a service sector product.
– Human resources management – as a business offering a service in city Z, the management of people will be
important to allowing Nala to meet her objectives and implement the business strategy.
– Financial management – important as Nala’s main purpose in preparing a corporate plan is to raise finance to fund
her business.

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Question Answer Marks

2 AO4 Evaluation
Evaluation ( and and ) including:

Evaluation will largely depend on the points raised in the analysis.

 A judgement over what Nala should include in a corporate plan for her new cleaning business.
 What the judgement may depend upon; further data about the market in city Z for cleaning services, external
influences, such as the economy, legal issues, fashions/trends, demographic changes, ethical influences,
environmental influences, political influences, technological influences, the prior history of Nala with CA and other
stakeholders whom she may need to interact with in her new business.
 Weighing up of the relevant pieces of data needed for Nala’s corporate plan and its use in financing the new business.
 Weighing up of the relevant arguments for the use of other data instead of (or in tandem with) the corporate plan.

Accept all valid responses.

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Question Answer Marks

2 Exemplars for awarding evaluation

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

The most The most important The most important element to be The most important element to be
important element to be included in a corporate plan for the included in a corporate plan for the
element to be included in a future of the city Z branch is the future of the city Z branch is the
included in a corporate plan for objective to survive the first few objective to survive the first few
corporate plan for the future of the city months. Without this, Nala is months. Without this, Nala is
the future of the Z branch is the unlikely to be able to make the unlikely to be able to make the
city Z branch is objective to survive branch successful. branch successful because she is
the objective. the first few months. too inexperienced.

It is important to It is most important It is most important to include It is most important to include

include all of the to include all of the sections on marketing, production, sections on marketing, production,
sections such as sections such as HRM and finance, because they all HRM and finance, because they all
marketing, marketing, influence one another and the influence one another and the
production, HRM production, HRM business as a whole. business as a whole so it is the best
and finance. and finance. way to get finance from the bank.

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