2024 business ms
2024 business ms
Summer 2024
In Business (9BS0)
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Summer 2024
Question Paper Log Number P75855A
Publications Code 9BS0_01_2406_MS
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© Pearson Education Ltd 2024
General Marking Guidance
Question
Answer Mark
Number
1(b) Knowledge 1, Application 2, Analysis 1
Importance of function
• Function in the design mix is the way the product
performs, including its specifications and reliability
• Function is important to Samsung, because what the
phone is able to do, such as some models folding,
could provide customers with a reason to buy the
product
• Samsung are charging premium prices for its
products, such as the S23 ultra with the function of
1tb of storage, so it needs its phones to function to
justify the price of $1 600.
Potential counterbalance
• Aesthetics are more important because competitors
such as Apple have had success from developing
software that looks good to the customer
• Foldability of phones could be a growth area, which is
part of the aesthetic and makes the appearance more
attractive
• Chinese competitors, such as Huawei, may gain an
advantage from a focus on economic
manufacture/cost, which supports their entry into the
budget/mid-range phone market.
Potential judgement
• Function, such as the storage, battery life, and
performance of the camera is more important to
Samsung as it helps to differentiate the brand from
competitors, such as Apple that may focus more on
aesthetics.
• Focusing more on aesthetics, rather than function,
could help Samsung to differentiate itself from cheaper
Chinese rivals such as Huawei, that seem to be (10)
focusing more on the cost aspect of the design mix.
Level Mark Descriptor
0 • A completely inaccurate response.
Level 1 1–2 • Isolated elements of knowledge and understanding –
recall based.
• Weak or no relevant application to business examples.
• Generic assertions may be presented.
Level 2 3–4 • Elements of knowledge and understanding.
• Which are applied to the business example.
• Chains of reasoning are presented, but may be
assertions or incomplete.
• A generic or superficial assessment is presented.
Potential counterbalance
• Price skimming only works for products that customers see
as new and different, otherwise these customers will not
be prepared to pay the high initial price. It is questionable
if design features such as increased storage or foldability
justify the $1 600 price
• Price skimming only tends to be possible for a limited time
period. As competitors such as Apple develop their own
similar phones, the price customers are prepared to pay is
likely to fall due to the increased choice
• An alternative pricing strategy, such as penetration
pricing, might be more appropriate for Samsung. In a
competitive and dynamic market, customers might be
encouraged to purchase new and different phones if the
price is initially lower than competitors, such as Apple.
Potential judgement
• Price skimming is often a feature of dynamic markets,
such as consumer electronics, which includes smart
• phones. Early adopters are often willing to pay a higher
price, particularly for products of recognised brands, such
as Samsung. Customers may feel that the innovations,
such as high-performance cameras, justify the price.
• The smartphone market is highly competitive, with brands,
such as Apple and Huawei developing different products
and software. Given this choice, higher prices from
Samsung may not be appropriate. An alternative strategy,
such as competitive pricing may support the launch of (12)
Samsung’s new smartphones, such as the S23.
Level Mark Descriptor
0 • A completely inaccurate response.
Level 1 1–2 • Isolated elements of knowledge and understanding –
recall based.
• Weak or no relevant application to business examples.
• Generic assertions may be presented.
Level 2 3–4 • Elements of knowledge and understanding.
• Which are applied to the business example.
• Chains of reasoning are presented, but may be
assertions or incomplete.
• A generic or superficial assessment is presented.
Democratic
• Democratic leaders listen to other people’s opinions,
and consider these before reaching a decision
Paternalistic
• Paternalistic leaders do consult others and consider their
opinion, but ultimately the leader takes responsibility for
all decisions and keeps a high degree of control
Potential judgement:
• Although Dr Kye will have his own leadership style,
Samsung’s aim for continued improvement in sales
could be supported by learning from competitors. In a
dynamic, competitive market, the ideas and creativity
that democratic leadership can offer staff, may help to
support product development and innovations such as
the foldable smartphone. At Apple, Tim Cook still
convinces others to follow his lead, so some control may
be involved and could still be used in a democratic
approach at Samsung.
• Paternalistic leadership may offer the best balance
between control and staff involvement. Ren Zengfei
seems to have the obedience and support of Huawei
workers because he provides certainty, but the staff are
also well rewarded financially. It could be that the
dynamism of the smartphone market means that
workers and managers at Samsung will be better suited
to a paternalistic leadership approach.
Question
Answer Mark
Number
2(b) Knowledge 1, Application 3
Positive impact
• The BT/Eurosport joint venture will allow BT to spread
risks, for example BT gaining subscribers in one
market such as in France, when the number of
subscribers in the UK may be falling
• This joint venture means that BT Sport and Discovery
Eurosport will remain as separate businesses, allowing
BT to make decisions such as programming
independently in areas outside sports coverage
• The joint venture will help BT to compete more
effectively with other sports channels such as Sky
Sports in the UK, with a wider range of sports, such as
cycling and tennis.
Potential counterbalance
• The reasons for this joint venture may not last, for
example sports that are popular in both markets may
lose popularity, so fewer new subscriptions are taken
out
• There may be a clash of objectives and an imbalance
of expertise between BT Sport and Eurosport
managers, leading to disagreements over broadcasting
contracts or price plans
• The new combined subscription price of £29.99 is
higher than the previous subscription of £18. BT may
lose subscribers who are not prepared to pay the
higher price.
Potential judgement
• The joint venture is likely to make both BT Sport and
Eurosport packages more attractive to subscribers in
the UK and mainland Europe, due to the increased
range of sport included, such as English Premier
League football, in Europe.
• The joint venture could be considered more beneficial
to Discovery Eurosport, because of the add on
entertainment packages and a wider customer base.
BT may be able to compete better in the UK, but the
addition of sports such as tennis and cycling may not
be enough to attract customers away from Sky Sports
(10)
for example.
Level Mark Descriptor
0 • A completely inaccurate response.
Level 1 1–2 • Isolated elements of knowledge and understanding –
recall based.
• Weak or no relevant application to business examples.
• Generic assertions may be presented.
Level 2 3–4 • Elements of knowledge and understanding.
• Which are applied to the business example.
• Chains of reasoning are presented, but may be
assertions or incomplete.
• A generic or superficial assessment is presented.
Potential counterbalance
• Legal/legislative influence may be more important because
this has the force of law behind it, rather than guidelines.
The extension of Indian laws regarding online content, to
TV programmes may limit Netflix’s ability to produce or
adapt its TV shows to this market, reducing potential
customer subscriptions
• Pressure groups in India may also exert more control over
a business such as Netflix. This may relate to TV content
that offends different religious groups, or in India’s case
affects different castes. Again, this will have an impact on
the growth of subscriptions for programmes that deal with
social issues such as documentaries or soap operas
• Social media pressure on Netflix or other multinational TV
companies could affect their ability to launch TV shows and
build subscriptions. New shows or packages might be
promoted on social media, which in turn could provoke a
negative response from Indian consumers, damaging the
streaming business’ reputation and ability to expand.
Potential judgement
• Political pressure can have a big impact on TV streaming
multinationals, particularly if it restricts their output and
ability to adapt content to the Indian market. It may mean
that programmes are less innovative and therefore
packages are not successful in gaining new subscribers,
restricting growth in an emerging market.
• The code of ethics and political pressure impact all TV
businesses in India, so it will not particularly
disadvantage just one streaming company. It is
possible that social media control is more impactful
because that could be related more to one brand e.g. (12)
Amazon, and its approach to programming and
marketing, possibly highlighting aspects that are
damaging to the multinational’s brand.
Adapt pricing
• Price is what is charged to the customer for a Netflix
subscription, in 2022 this was R149
Adapt product
• Netflix’s product in India is its streaming services
Potential judgement:
• Adapting the price of Netflix subscriptions is likely to
support growth in market share as reductions since 2016
seem to have helped increase subscriber numbers so far
by 175%. Netflix is still the most expensive of the foreign
streaming services, so there is scope to reduce prices
further in order to expand market share.
• Adapting the programmes to local languages seems to
have been successful for Amazon in India, so it could be a
good strategy for Netflix too. There are likely to be a range
of local market niches that Netflix could adapt to, thus
increasing subscriptions.