Business Management

Standard Level
Paper 2

MARKSCHEME

1 hour 30 minutes

Instructions to Candidates
● Do not open this examination paper until
instructed to do so.
● A clean copy of the business management
formulae sheet is required for this
examination paper.
● Section A: answer all questions.
● Section B: answer one question.
● Answers must be written within the answer
boxes provided.
● A calculator is required for this examination
paper.
● The maximum mark for this examination
paper is [40 marks].
 Section A

Answer all the questions in this section.

1. Jimmy’s Falafel Shack (JFS)

Oscar and Faaris are partners who co-founded the business Jimmy’s Falafel Shack. There are 10
locations, and the chain specialises in falafels as well as other foods from the Middle East and
Mediterranean. Though falafels and sandwiches/salads that have falafels in them are the most
popular menu items and offer fairly high gross profit margins for the partners, in any given JFS
location there may be up to 20 items on the menu. In two locations they have also started selling
Jimmy’s Falafel Shack branded merchandise like t-shirts, hats, and mugs. Seeing that many of these
items have been resold online, Oscar would like to continue adding merchandise sales to their
restaurants, though not every location has enough physical space to do this without overcrowding
the entrance and waiting areas.

JFS’s partners have received multiple offers from potential franchisees in other countries, though
they are unsure whether they should expand through this method. They would prefer to expand into
new markets by raising additional finance while retaining full ownership and control of their
business operations, but franchising would allow for quicker growth and possibly more profits.
Below are the current monthly cost and revenue data for the locations in which they are currently
operating.

Average meals sold per month 68,000

Average cost of ingredients per meal $4

Average labour costs per meal $2

Utilities (monthly) $55,000

Salaries and other administrative costs (monthly) $230,000

Rent (monthly) $75,000

Average selling price per meal $12

a. Calculate the break-even quantity of output per month for JFS. [1 mark]

BEQ = FC/unit contribution

Fixed cost = (55000+230000+75000) = 360000
Unit contribution = P - AVC, or (12-4-2) = $12 360000/6 = 60000 meals

Award [0] if the candidate makes a mathematical error. Award [1] if the candidate
produces the correct answer.
 b. Calculate the margin of safety at their current level of production. [1 mark]

MoS = Actual sales - break-even level of sales

= 72,000-60,000 = 12,000 meals

Award [0] if the candidate makes a mathematical error. Award [1] if the candidate
produces the correct answer.

c. If Oscar and Faaris are targeting a profit of $80,000 per month, then what is the
number of meals that they must sell? Show all your working out.
[2 marks]
Target profit output = (fixed cost +target profit) / unit contribution
360,000+80,000/6 = 73333.33 meals, or really it would have to round up to 73334 meals.

Award [0] if the candidate makes a mathematical error. If the candidate produces the
correct answer but does not show workings, award [1]. Award [2] if the candidate
demonstrates their working out and produces the correct answer.

d. Construct a fully labelled break-even chart for JFS. [4 marks]

 e. If Oscar and Faaris thought they could produce and sell 75,000 meals in a month,
calculate the target price they would have to charge to break even.
[2 marks]

Target price:
Target Price = (FC / Q) + direct cost per unit
Using this method we get: (360000/75000)+6 = $10.8

Or another way of thinking of this is:

Output (quantity) = FC/(target price - direct cost per unit)
Using this method we get: 75000 = 360000/(x-6) 75000x-
450000 = 360000
75000x = 810000 X = $10.8

Award [1] if the candidate demonstrates how to calculate the forecast total profit but
makes a mathematical error. If the candidate produces the correct answer but does not
show workings, award [1].
Award [2] if the candidate demonstrates how to calculate the forecast total profit and
produces the correct answer.

Nautilus Market Solutions (NMS)

2a. Define the term esteem needs. [2 marks]

Esteem needs refer to the desire of people to feel respected, having value and having self-respect. Intrinsically, self-
esteem exists when people are able to feel good about themselves, as they feel valued by others. Extrinsically, esteem
needs can be met by genuine recognition, acknowledgement, trust and respect from others.

Award [2] for acceptable definition with application

NMS offices have many perks, including a free cafe, gourmet brunch every Friday, comfortable
movable furniture, and a video arcade with classic games. Salaries at NMS are among the highest in
the industry, and there is an employee share ownership plan. All
full-time employees were recently given unlimited vacation time, with management telling employees
that they trusted them to figure out a vacation schedule that worked best for them to live a balanced
life. When taking video conference calls with potential clients, managers usually take the call in a
comfortable setting, with employees sitting on relaxing furniture.

2b. Explain one advantage and one disadvantage of an employee share ownership scheme. [4
marks]

An employee share ownership scheme is a type of financial payment system that involves giving workers shares in the
company they work for. This comes in two main forms:
The company gives employees a number of shares, freely without any charge.
Employees are offered the opportunity to purchase shares at a discounted price.
Share ownership schemes result in the employees becoming shareholders in the company, so they have a direct
financial stake in the business. This makes employees part-owners of the company and creates incentives for them to
earn a profit for the organization. This is because the greater the profits earned by the company, the larger the dividends
payments will be for them as shareholders of the business. In addition, shareholders can benefit from capital gain if
higher levels of profit result in the company’s share price going up.
Share ownership is also used as recognition of the value the employees have to the company. They may be given for
performance and/or employee loyalty. However, share ownership schemes can be expensive for the company and dilute
ownership (as there are more shareholders in the company).
A falling share price damages employee morale, retention and motivation.
 Accept any other relevant response.
Mark as 2+2.
Award [1] for a relevant advantage/disadvantage, with an additional [1] for application to
NMS.

Despite these benefits, NMS has started to experience some problems retaining employees, especially
some of its younger ones, though some of this can be attributed to a strong economy. Few employees
have taken advantage of the vacation policy, and many feel that the CEO sets a very high-pressure
tone in the workplace, with high expectations but little guidance from middle managers. New hires in
particular have privately talked about how they often feel that while the firm offers some very
interesting opportunities to attend conferences and other off-the-job training opportunities to people
who have worked at the firm for at least two years, communication and on-the-job training are
lacking. An employee who recently quit wrote a blog post talking about how she felt that her time at
NMS crushed her self-esteem, in one example noting how she and several other relatively new
employees were intimidated during conference calls in which they did not fully understand some of
what was being discussed. Surveys indicate that employee satisfaction remains relatively strong
overall, though the HR department is beginning to study what is and is not working on NMS project
teams and strategies to improve teamwork.

2c. With the use of Herzber’s motivation theory, explain one factor that may act as a hygiene need at
NMS, and one factor that may act as a motivator. [4
marks]

Herzberg’s two-factor (motivation-hygiene) theory:

Hygiene factors Motivators

Company policies Achievement

Conditions of employment Advancement

Job security Challenging work

Pay (wages and salaries) Decision making

Relationship with colleagues Nature of the job

Relationship with management Opportunities to improve

Status Personal growth

Supervision Purpose

Treatment at work Recognition (of achievement)

Working environment Responsibility

Accept any other relevant response.

Mark as 2+2.
Award [2-4] for a relevant on Herzberg’s two-factor (motivation-hygiene) theory and an additional [1-2] for
application to NMS.

3.Artisan Woodcrafts (AW)

Artisan Woodcrafts (AW) is a small business that produces custom-made furniture. Over the past
year, the company has been experiencing cash flow difficulties due to a combination of slow-paying
clients and a delay in receiving a large order of materials from a supplier. As a result, AW has been
struggling to pay its suppliers on time, which has damaged its credit score (credit rating) and made it
difficult to secure new lines of credit. The company has also been unable to invest in new equipment
or hire additional staff, which has limited its ability to grow. The chief executive officer (CEO) has
asked the finance manager to construct a
four-month cash flow forecast and has provided him with the following information:

● Sales in January = $20,000, February = $25,000, March = $30,000, April = $35,000.

● 50% of sales are paid for in cash, with the remainder received one month later.
● Rent is $4,000 per month
● Cost of sales are $10,000 in January and February, and $11,000 for March and April.
● Salaries and wages are $10,000 per month.
● Other expenses are $5,000 per month.
● A loan payment of $3,000 is due in February.
● There was $10,000 in the bank at the end of December.
● Sales in December were $30,000.

a. Prepare a cash flow forecast for AW for January to April. [4 marks]

Award [4 marks], if the cash flow forecast is constructed following the IB format and
is correct in all respects (see Figure 10, page 63 of the Guide).
Apply own figure rule (OFR) where appropriate.
Award [3 marks] of the cash flow forecast has two errors (in format or
calculation). Award [2 marks] if the cash flow forecast has three or more errors or
has a largely inaccurate format.
Award [1 mark] if the candidate shows some understanding of what a cash flow forecast
is, but the actual account constructed is not in the IB format and has numerous errors.

b. Outline one way to improve the cash flow position at AW. [2 marks]

Possible strategies can include an outline of any of the following:

● Increase cash inflows – AW can remove credit sales. This would mean requiring customers
to pay in cash, rather than giving some of them one month’s credit to pay their bills.
Requiring cash payments will mean that January’s cash inflow would increase to $35,000
(i.e., the $15,000 owed from December plus the sales of
$20m000 in January. This would enable AW to have a positive net cash flow for January,
March, and April.
● Decrease cash outflows – Delay the loan repayment. This would mean negotiating with the
bank to extend the length of the loan and paying it back at a later date. For AW this would
improve net cash flow by $3,000. As the closing balance in April is ($3,500), this solution
would improve its cash flow position, but not solve their problems entirely.

Note: asking suppliers for extended trade credit is not a relevant option for AW, as the case study
states that the company’s credit score has been damaged, making this an unlikely way to improve the
cash flow position at AW.
Accept any other relevant suggestion, written in the context of the case study.
Award [1 mark] for an explanation of the solution with no application.
Award [2 marks] for an explanation of the solution with application.

Going forward, the company has received additional funds from a business angel who would like AW to
invest in new machinery to be able to increase capacity. The production manager has made two
suggestions: Machine A and Machine B. Due to the company’s liquidity issues, the CEO is anxious about
the investment and is unsure which machine to choose.

Cost of machine A = $45,000 Cost of machine B = $30,000

The machine is expected to generate the The machine is expected to generate the
following net cash flows: following net cash flows:

Year 1 = $15,000 Year 1 = $8,000

Year 2 = $16,500 Year 2 = $9,500

Year 3 = $13,500 Year 3 = $10,000

Year 4 = $23,000 Year 4 = $17,700

c. Calculate the payback period for Machines A and B (show all your working out).
[4 marks]

Therefore, the payback period for Machine B = 3 years and 2 months

Mark [2] + [2]
For each option, award [1 mark] for appropriate working and [1 mark] for the correct answer.
 Section B

Answer one question from this section.

1. Proti-Munch

Protein bars are a convenient snack that contains a high proportion of protein and are becoming very
popular amongst fitness enthusiasts groups.

Lucas became a regular protein bar consumer during his university years. After graduating in the
United Kingdom (UK), he started his business operating as a sole trader and launched a range of
tasty high-protein bars called Proti-Munch (PM).

a. State two challenges that Lucas may have encountered when starting his own business. [2
marks]
Possible challenges for starting up a business could include:
● Limited market research
● Unable to raise enough funds
● Lack of experience and knowledge
● Difficulties in recruiting employees
● Legal challenges/requirements.
● Accept any other relevant response.

Award [1] for each appropriate challenge identified up to a maximum of [2].

PM benefits from having different distribution channels and is sold in different supermarkets, as well
as health food and convenience stores around the UK. Sales of PM are increasing, but Lucas is very
ambitious and wants to develop the brand further and create a range of PM protein products.
Lucas has formed a partnership together with his school friend, Roberto. Roberto is highly creative
and will bring new ideas to the business. Lucas and Roberto undertook extensive primary and
secondary market research and came up with two new products to add to the PM product range.

b. Explain one advantage and one disadvantage of PM operating as a partnership.

[4 marks]
Advantages could include:
● Partnerships can raise more finance than sole traders.
● Partners bring more skills and ideas, such as Roberto’s creativity skills.
● Partners can share the workload and have more possibilities of continuity. If
something happens to Lucas or Roberto, the other one can continue with the
business.
● Partnerships benefit from privacy; they only need to show their financial accounts to the tax
authorities.

Disadvantages could include:

● Partners have unlimited liability and are legally responsible for any debts of PM.
 ● Any profits are shared between the partners.
● Decisions can take longer as both partners have to agree.
● Sometimes, disagreements may happen. This can cause conflict between the two partners
and delay decision-making.
● Compared to limited liability companies, partnerships have less access to sources of finance.

Accept any other relevant response.

Mark as 2+2.
Award [1] for a relevant advantage/disadvantage, with an additional [1] for application to
PM.

PM’s product portfolio now includes protein bars, protein biscuits, and protein shakes. Lucas and
Roberto are concerned about maintaining an adequate level of profit for their partnership and they
want to use contribution per unit to help them determine the price of their new products.

Table 1: Forecasted financial data for PM’s product portfolio (in $)

Product Protein bar Protein biscuits Protein shakes

Selling price ($) 2.50 1.50 3

Unit variable cost ($) 1.50 1 2.25

Quantity (units) 250,000 180,000 120,000

Total fixed costs ($) 200,000

c. Use the data in Table 1 to:

(i) Calculate the forecasted unit contribution for the three products. [2
marks] Working out is not required for this question but has been included for illustrative purposes
only.
● Unit contribution = Selling price – Unit variable cost
● Unit contribution of protein bar = $2.50 – $1.50 = $1.00
● Unit contribution of protein biscuit = $1.50 – $1 = $0.50
● Unit contribution of protein shake = $3 – $2.25 = $0.75

Award [1] for one or two correct answers. Award [2] for three correct answers.

(ii) Calculate the forecasted total profit for PM (show working). [2 marks]
Total contribution = Unit contribution × Quantity
Total contribution = ($1 × 250,000) + ($0.50 × 180,000) + ($0.75 × 120,000) = $430,000
Total profit = Total contribution – Total fixed costs Total
profit = $430,000 – $200,000 = $230,000

Award [1] if the candidate demonstrates how to calculate the forecast total profit but
makes a mathematical error.
Award [2] if the candidate demonstrates how to calculate the forecast total profit and
produces the correct answer.
If the candidate produces the correct answer but does not show workings, award [1].

PM’s brand is now well-established in the UK and benefits from customer loyalty. PM’s sustainable
packaging grabs the attention of customers as it is distinctive, has a healthy nutritional profile, and
clearly shows the ingredients. Customers also like the taste of PM’s products. Lucas and Roberto
have identified two growth strategies:

Option 1: Add Protein Powder as a new product to PM’s product portfolio. The target market will
be the same as the existing one and the product will be sold in the UK using the same distribution
channels. The partners agree this new addition will further meet customers’ requirements and
complement their product range. However, there are already many competitors offering protein
powder products.

Option 2: Launch their main product, the Protein Bar, in a new international market, Country
X. Country X’s modern lifestyle is changing and the demand for protein bars is increasing. PM’s
brand and packaging can bring it competitive advantages. The partners agree that this option
provides a good opportunity for PM.

d. Using the Ansoff matrix, evaluate the two possible growth strategies for PM.
[10
marks] The partners of PM have to evaluate two proposed growth strategies. The Ansoff matrix is a
decision-making tool used to examine different growth strategies.

Option 1
Arguments for:
● This option is a product development strategy, i.e., it focuses on developing new
products (Protein Powder in this case) for the existing customers.
● Lucas and Roberto know their target market and understand their needs.
● The protein powder will complement the firm’s existing product range.
● It can be distributed in the same establishments.
● It relies on customer loyalty, which PM currently enjoys.

Arguments against:
● This is a medium-risk growth strategy.
● It can be expensive and time-consuming to develop the new product.
● If Protein Powder is not successful, it could damage the other products in the product range.
● It cannot benefit from a first mover advantage as there are many existing competitors that
offer protein powder products.

Option 2
Arguments for:
● This option is a market development strategy, i.e., it focuses on offering existing
products (in this case, selling the protein bar) in a new market (Country X).
● The product has been successful in the UK, and customers like the packaging and taste.
This could also be advantageous in Country X.
 ● This growth option can help to spread the risk if the UK experiences problems, such as
going into a recession.
● It can gain competitive advantages in an overseas market.

Arguments against
● This is a medium-risk growth strategy, and it will take time to plan and execute.
● Roberto and Lucas do not have knowledge of the market in Country X.
● Sales may be low at the beginning, so cash flow could become an issue for PM.
● does not have any distribution channels in Country X, so this could be costly.
● Fluctuations in the exchange rate can affect the price and profits of the protein bar.
● Legal regulations for operating in Country X also need to be considered.

There is no need to recommend one of the growth strategies (the command term is to
evaluate the two growth options for PM). However, judgements should be substantiated.

Candidates should refer to the limitations of the case study to achieve the top marks. For
example, the case study does not provide forecasted costs or revenues for either of the
growth options, and there is limited information about Country X.

Marks should be allocated according to mark bands shown on pages 44 – 45 and 47 – 48

of the Business Management Guide.

Additional guidance:
If the candidate discusses only one option (with balanced and substantiated arguments)
then award a maximum of [5].
For one relevant issue that is one-sided, award up to [3].
To reach the [7–8] mark band, candidates need to refer to the Ansoff matrix, consider both
options in a balanced way, and substantiate their arguments.
Candidates cannot reach the [9–10] mark band if they do not consider the limitations of the
case study or the stimulus material.

2.London Zoo

During the global coronavirus pandemic in 2020, London Zoo had to close twice (March and
November) during the two rounds of national lockdowns (when all 'non-essential' businesses had to
close their doors to customers in an attempt to control the COVID-19 virus).
Non-profit organizations like the Zoological Society of London (ZSL), which runs the London Zoo,
rely on admissions tickets for their sources of finance, but the lockdown proved devastating for its
cash flow position. Whilst some businesses could reduce their operational costs by being closed,
London Zoo had to continue feeding more than 19,000 animals, which the ZSL reported to be around
£1,000,000 ($1.344m) per month. The organization had put off its plans for capital expenditure.

e. Define the term capital expenditure. [2 marks]

Capital expenditure refers to an organisation's sources of finance being used for spending on fixed
assets or capital equipment. It is the investment expenditure of an organization for its future growth
and development. Examples for ZSL include spending on its buildings (such as animal sanctuaries),
capital machinery, and tools.
Award [1 mark] for a limited response that shows some understanding of capital
expenditure.
Award [2 marks] for an accurate response that shows a good understanding of capital
expenditure.

During the first national lockdown in the UK, the zoo was forced to close for an unprecedented
three months due to the pandemic. London Zoo says a loss of income from ticket sales has put a
“huge financial pressure” on its operation. The zoo usually welcomes
1.25 million visitors and tourists each year (that's more than 3,400 paying customers each day).

In early November 2020, as London Zoo had been looking forward to welcoming guests for the
December holiday season, the zoo's website stated "While we understand this national action is
necessary to curb the spread of Coronavirus, it adds a huge burden to an incredibly tough year for us.
Our focus throughout has always been keeping our animals happy and well cared for, and knowing
we would be able to share the joy of the zoo with visitors again."

Dominic Jermey, ZSL director general, said: “The impact of coronavirus on ZSL cannot be
understated. Lockdown saw us closed for longer than any time in our history with fixed costs of more
than £1 million a month just on food and care for our animals, let alone our conservation and science
and almost no income. This has been catastrophic for us and we are seeking funding from a range of
places.”

f. Define the term fixed costs [2 marks]

Fixed costs are the expenditures of an organization that do not change with the level of output.
Typical examples include loan repayments (and the interest charges associated with these) and
salaries paid to managerial staff. In the case of ZSL, its fixed costs are the
$1.344m+ required for its animal feed, irrespective of the number of customers/visitors to its zoo.

Award [1 mark] for a limited response that shows some understanding of fixed costs.
Award [2 marks] for an accurate response that shows a good understanding of fixed
costs, similar to the example above. Note: application is not required for [2 marks], but
has been included for illustrative purposes of the key term.

To prevent the possible collapse of the London Zoo, celebrities including Sir David Attenborough,
Jonathan Ross, and Catherine Tate have fronted videos aiming to raise funds for the Zoological
Society of London. The government also provided support to businesses through its furlough scheme
which allows employers to put some or all of their staff on temporary leave (during the lockdowns),
with the government funding their pay during this period of time.

g. Apart from admissions tickets, explain three other appropriate sources of finance for ZSL.
[6
marks]
Students can suggest any appropriate source of finance as long as they explain the suitability.
Possible sources of finance could include:

● Donations - They could come from the general public and/or from celebrity-endorsed
schemes, such as those mentioned in the case study.
● Grants and/or subsidies - Given the economic and social benefits that London Zoo brings to
the city, and the financial problems caused by the pandemic and lockdowns, this source of
finance could be particularly helpful for ZSL. For example, the government had furloughed
many people (paid their wages and salaries during the lockdown period). The government is
also more inclined to provide financial assistance to non-profit organisations (such as ZSL)
rather than for-profit companies.
● Overdrafts – If agreed, the finance from bank loans can be given quickly to help ZSL's
current situation, with the need to spend over £3 million on animal feed alone during the
three months of lockdown (without any paying visitors).
● Long-term bank loans - Similarly, long-term loans from banks could also be used to
improve ZSL's liquidity position, especially if it intends to proceed to with capital
expenditure projects to improve facilities at the zoo for when visitors and tourists are
allowed to visit again.
● Sale of assets - despite plans for London Zoo to expand or upgrade its facilities, during such
crises, it is more realistic for ZSL to survive. Hence, there may be a need to sell some of its
fixed assets (e.g. office equipment such as desks, tables, chairs, and printers) and to raise
necessary finance to pay for its fixed costs.

Accept different arguments for the above scenario, if fully justified. Do not accept answers
that suggest shares or an IPO (initial public offering) as ZSL is a non-profit organization.
Mark as a 3 + 3

Award [1 mark] for identifying a suitable source of finance, [1 mark] for an accurate
explanation, and [1 mark] for application to ZSL.

h. Discuss the value of STEEPLE analysis as a situational tool of the external environment for
ZSL. [10
marks]

STEEPLE analysis is a situation business management tool that is central to formulating a business
strategy based on factors in the external environment that will affect the operations of the business in
question. Answers will vary depending on the STEEPLE factors being examined in the context of the
case study. Several examples are provided below.

● Legal environment - National lockdowns imposed by the UK government, which

caused non-essential businesses to close their doors to customers, harming the zoo's
cash flow position.
● Political environment - The government furlough scheme helps businesses with staffing
costs as these are paid for by the government (using taxpayers' money), thereby easing
cash flow and supporting people who cannot work due to the lockdowns.
● Ethical environment - Despite the lack of visitors, the nature of London Zoo's operations
meant the organization was obliged to continue feeding more than 19,000 animals, despite
the high cost of $1.344m per month. Unlike most businesses, there
 is an ethical or moral obligation attached to ZSL's commitment to this type of fixed cost.
● Economic environment - The pandemic caused the zoo to close, causing the organization
to lose revenue from entrance ticket sales of 3,400+ customers each day. This put “huge
financial pressure” on the zoo's operations and created "cash flow" problems.

Advantages of of STEEPLE analysis as a situational tool for (the value of the tool in understanding
how the external environment affects) ZSL include:
● It is a simple framework for analysing factors in the external environment that impact the
operations of businesses such as ZSL.
● It encourages the development of strategic thinking, logically and objectively. This helps
to reduce risks, especially during crises such as the COVID-19 pandemic.
● It can enable organizations like ZSL to anticipate potential threats so that it can take
appropriate action to avoid these or (more likely in the case of ZSL) to minimise their
impacts.
● It can enable organizations such as ZSL to identify business opportunities and exploit them
fully, such as working with celebrities to raise funds/donations and support from the
government furlough scheme.

Disadvantages or limitations of STEEPLE analysis as a situational tool

● Aspects of STEEPLE analysis can be oversimplified and lack sufficient data to make well-
informed decisions.
● By contrast, there is also the risk of gathering too much data, which makes analysis time
consuming and cumbersome.
● The pace of change in the external environment means that it can be extremely difficult
to anticipate developments that may affect businesses in the future. The dynamic nature
of change in the external environment means by the time the STEEPLE analysis is
completed, the information can be outdated.
● STEEPLE analysis does not guarantee any form of success, especially as the tool does not
provide any suggestions for business strategies to tackle the threats and to make the most of
the opportunities. Hence, additional business management tools may be required.

Marks should be allocated according to mark bands shown on pages 44 – 45 and 47 – 48

of the Business Management Guide.

Marks Level Descriptor

0 ● The work does not reach a standard described by the descriptor

1-2 ● Little understanding of the demands of the question.

● Little use of business management tools and theories; any tools and
theories that are used are irrelevant or used inaccurately.
● Little or no reference to the stimulus material.
● No arguments are made.
3-4 ● Some understanding of the demands of the question.
● Some use of business management tools and theories, but these are mostly
lacking in accuracy and relevance.
● Superficial use of information from the stimulus material, often not going
beyond the name of the person(s) or name of the organization.
● Any arguments made are mostly unsubstantiated.

5-6 ● The response indicates an understanding of the demands of the

question, but these demands are only partially addressed.
● Some relevant and accurate use of business management tools and
theories.
● Some relevant use of information from the stimulus material that goes
● beyond the name of the person(s) or name of the organization but does not
effectively support the argument.
● Arguments are substantiated but are mostly one-sided.

7-8 ● Mostly addresses the demands of the question.

● Mostly relevant and accurate use of business management tools and
theories.
● Information from the stimulus material is generally used to support the
argument, although there is some lack of clarity or relevance in some places.
● Arguments are substantiated and have some balance.

9-10 ● Clear focus on addressing the demands of the question.

● Relevant and accurate use of business management tools and theories.
● Relevant information from the stimulus material is integrated effectively to
support the argument.
● Arguments are substantiated and balanced, with an explanation of the
limitations of the case study or stimulus material.