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5. 2011 HSC Notes from the Marking Centre — Business Studies

2011 HSC Notes from the Marking Centre – Business Studies

Contents

• Introduction
• Section II
• Section III
• Section IV

Introduction

This document has been produced for the teachers and candidates of the Stage 6 course in Business Studies. It contains comments on candidate responses to the 2011 Higher School Certificate examination, indicating the quality of the responses and highlighting their relative strengths and weaknesses.

This document should be read along with the relevant syllabus, the 2011 Higher School Certificate examination, the marking guidelines and other support documents developed by the Board of Studies to assist in the teaching and learning of Business Studies.

Teachers and students are reminded that the revised Business Studies syllabus with new examination specifications will be examined for the first in 2012.

General comments

Teachers and candidates should be aware that examiners may ask questions that address the syllabus outcomes in a manner that requires candidates to respond by integrating the knowledge, understanding and skills they developed through studying the course. It is important to understand that the Preliminary course is assumed knowledge for the HSC course.

Candidates need to be aware that the marks allocated to the question and the answer space (where this is provided on the examination paper) are guides to the length of the required response. A longer response will not in itself lead to higher marks. Writing far beyond the indicated space may reduce the time available for answering other questions.

Candidates need to be familiar with the Board’s Glossary of Key Words, which contains some terms commonly used in examination questions. However, candidates should also be aware that not all questions will start with or contain one of the key words from the glossary. Questions such as ‘how?’, ‘why?’ or ‘to what extent?’ may be asked or verbs may be used that are not included in the glossary, such as ‘design’, ‘translate’ or ‘list’.

Section II

Question 21

1. Better responses were characterised by details of how either Lewins Force Field analysis or unfreeze/change/refreeze models can be effectively used to manage change. Candidates described the features of the chosen model and related individual elements to its use in managing change.
   
   In weaker responses, candidates only provided an outline for either change model – without relating it to the management of change – or candidates provided a discussion on how to manage change effectively without indication of the models.
2. In better responses, candidates clearly identified the conflict and the stakeholders involved and detailed how the conflict could be resolved. In these responses, candidates referred to a range of stakeholders, such as employer/employee, shareholder/employee or shareholder/future environment. They outlined the conflict as well as describing measures that could resolve this conflict.
   
   Some responses were characterised by candidates identifying a conflict that could arise between two stakeholders, however the majority of candidates interpreted this question around the conflict. They indicated ways of reconciling a conflict between stakeholders without identifying either the conflict or the stakeholders.
   
   In weaker responses, candidates identified two stakeholders, a conflict or a method of reconciliation.

Question 22

1. In stronger responses, candidates demonstrated an understanding of the ratio, provided clear working, and clearly and accurately derived the correct gross profit ratio.
   
   In weaker responses, candidates either identified the formula and showed working or stated the correct answer without the working.
2. In strong responses, candidates comprehensively showed the relationship between the chosen plan of action – for the situation identified in the stimulus – and the relevant cost and revenue control. In addition, they created a link to profitability, ie maximising profit, with an understanding of the basic equation of profit = sales – expenses.
   
   In weaker responses, candidates indicated a familiarity with a cost and/or a revenue control, yet experienced difficulties in analysing. Candidates instead described the cost/revenue control, yet did not link it to improving profitability.

Question 23

1. In better responses, candidates sketched in general terms a cause for industrial conflict. Typical examples were a wage dispute between employees wishing to keep up with the cost of living and employers wanting to keep costs low. In weaker responses, candidates simply stated a cause for conflict with little relevant information about the cause.
2. In better responses, candidates provided a relationship between an industrial conflict and the financial cost and benefits derived. Typically answers referred to the disruption to productivity, output and sales resulting from a clearly identified conflict. The benefit was typically the improvement of efficiency – and therefore productivity – created by the improved morale of workers who have had their opinions acted on. Some candidates omitted to provide clear reasons why and/or how the conflict provided both a financial cost and a benefit.
   
   In weaker responses, candidates either explained one financial cost or benefit or simply provided features of financial cost and benefits resulting from industrial conflict. Simplistic responses simply sketched in general terms either a cost or benefit or recognised both a cost and benefit.

Question 24

1. In better responses, candidates clearly linked the necessity of market research in determining the target market for Sam and Jody. These responses provided relevant examples for a hairdressing salon, such as clients’ ages and hairdressing styles.
   
   In weaker responses, candidates attempted to sketch in general terms only the necessity of market research in determining the target market for Sam and Jody. They used more generic terms such as determining needs and wants.
2. 1. In better responses, candidates clearly provided a reason for favouring one method of primary data collection. These responses linked specific details of age, gender and income to a method of primary research, such as surveys/questionnaire.
      
      In weaker responses, candidates attempted to sketch in general terms only one method of primary data collection. In these responses, candidates did not link specific details of age, gender or hairstyles. They used general terms, such as needs and wants of potential customers.
   2. In better responses, candidates clearly provided a reason favouring one method of secondary data collection. These responses linked specific details of age, gender and income in the local area to a method of secondary research such as internet research, ABS data or local government records.
      
      In weaker responses, candidates attempted to sketch in general terms only one method of secondary data collection. These responses used general terms – such as needs and wants of the population in the local area – but did not link specific details of age, gender and hairstyles to a method of secondary research, such as internet research, ABS data or local government records.
3. The best responses were those where candidates clearly provided points for and/or against a pricing strategy that could be used to attract customers. Price penetration, loss-leading, price points or price skimming strategies relevant to a hairdressing salon were discussed in detail, linking these strategies to attract customers.
   
   In some responses, candidates lacked detail and only discussed in general terms a suitable pricing strategy for a hairdressing salon in order to attract customers. Some candidates gave an outline of a suitable pricing strategy without correctly naming that strategy, often confusing price penetration with price skimming or loss leading.
   
   In the weakest responses, candidates only listed a suitable pricing strategy for a hairdressing salon.

Question 25

1. In better responses, candidates named and sketched in general terms a method of payment that was appropriate for an exporter to reduce their risk of an adverse transaction. Where the method of payment was not specifically named, the outline was clear enough to indicate the appropriate specific method.
   
   In weaker responses, candidates named a method of payment with no supporting sketch and/or provided a sketch that was too general in nature to clearly indicate the method of payment.
2. Stronger responses clearly described a financial influence on global business and went on to draw out implications and/or consequent effects of this influence. Most candidates included a reference to either currency fluctuations or interest rates. However, other responses included references to global fluctuations in economic growth, overseas borrowing, taxes and differentials in cost of resources between countries. Some candidates linked the global financial management strategies such as global diversification and hedging.
   
   In weaker responses, candidates outlined financial influences but did not draw out and relate implications. These responses were general in nature and often did not refer to the influences on global businesses as opposed to customers or countries. These candidates quite often mentioned reasons for global expansion but did not connect these to financial influences.

Section III

Question 26

In the best responses, candidates demonstrated extensive knowledge and understanding relevant to the question, integrating relevant business terminology, concepts and the information provided. Responses were sustained, logical, cohesive and in the form of a business report.

Responses in this range provided characteristics and features of two possible legal or ethical aspects of marketing for Rushworth Pty Ltd. These included – but were not limited to – environmentally responsible products, creation of needs, sugging, deceptive and misleading advertising, price discrimination, implied conditions, warranties and resale price maintenance.

Candidates also provided detailed reasons in favour of two strategies that could be used to address one financial issue faced by Rushworth Pty Ltd. Financial issues identified included liquidity, revenue and profitability issues. Relevant strategies included control of current assets, such as accounts receivable; control of current liabilities, such as overdraft; working capital management strategies including leasing, factoring, sale and lease back; cash flow management strategies including distribution of payments, discounts for early payments; profitability strategies and revenue strategies. Clear links between the specific financial issue and the suggested strategy were also evident in these responses.

Additionally, candidates made clear judgements about the possible effect of the introduction of a new communications system on Rushworth Pty Ltd’s employment relations. Relevant communications systems included grievance procedures, worker participation and team briefings. Positive effects included, but were not limited to, improved communication resulting in lower staff turnover, lower absenteeism, less disputation and improved labour productivity. Conversely, negative impacts may have included slower decision making, time lost through consultation and issues of complexity. Links between the introduction of a new communications system and the possible effects on Rushworth Pty Ltd’s employment relations were clearly evident in these responses.

In mid-range responses, candidates demonstrated some knowledge and understanding relevant to the question with some relevant business terminology and features of a business report. These responses provided characteristics and features of one – or sketched in general terms two – possible legal or ethical aspects of marketing but these were not always relevant to the question. Many responses in this range tended to provide characteristics and features of one– or sketched in general terms two – strategies for one financial issue. These responses typically provided characteristics and features of communication systems but failed to assess the effects.

In weaker responses, candidates demonstrated limited knowledge and understanding relevant to the question with limited use of relevant business terminology or business report format. Candidates sketched in general terms one legal or ethical aspect of marketing and some aspects of financial management and employment relations often with little relevance to the stimulus material or the question.

Candidates are reminded to address all parts of the question directly. The inclusion of material not specifically required by the question, such as a situational analysis or an additional case study, is unnecessary.

Section IV

Question 27

In the best responses, candidates demonstrated comprehensive knowledge and understanding relevant to the question, using relevant business case studies, terminology and concepts. Responses were sustained, logical, cohesive and, although not required, often presented in the form of a business report.

In better responses, candidates made clear how or why internal and/or external sources of change in business can create reasons for international expansion. Candidates referred to internal sources of change such as e-commerce, accelerating technology, new systems and procedures and new business cultures. External sources of change included the changing nature of markets, economic, financial, geographic, social, legal, political and technological developments. Reasons for international expansion included increasing sales and finding new markets, exploiting economies of scale, tax minimisation and minimisation of competitive risk, acquisition of new resources and technology.

Candidates also showed the implications of the relationship between sources of change and the reasons for expansion. Some implications of this relationship included changes to profit, changes to size of the business or changes to market share. Responses were supported with either a single, detailed business case study or a range of relevant business examples, which were integrated throughout the response.

In mid-range responses, candidates demonstrated some knowledge and understanding relevant to the question but used limited business terminology and concepts. In many of these responses, candidates did not illustrate the relationship between internal and or external sources of change and reasons for international expansion, but instead provided characteristics and features of either internal or external sources of change and/or reasons for international expansion. In some responses, the use of case study material was limited or non-existent.

In weaker responses, candidates demonstrated limited knowledge and understanding relevant to the question. Responses often sketched in general terms the sources of change and/or the reasons for international expansion but with no attempt to link the two. Many candidates made little or no reference to case study material or business terminology.

Question 28

In the best responses, candidates demonstrated comprehensive knowledge and understanding relevant to the question, integrating relevant business case studies, terminology and concepts. Responses were sustained, logical, cohesive, and although not specifically required, often presented in the form of a business report.

In these responses, candidates showed clear knowledge and understanding of the relationship between the use of management skills and managing global employment relations.

Candidates referred to management skills such as people skills, strategic thinking, vision, flexibility and adaptability to change, complex problem solving and decision-making, high ethical and personal standards. Managing global employment relations included organisational structure, staffing and staffing systems, labour law variations, the shortage of skilled labour and minimum standards of labour.

In better responses, candidates related the use of specific management skills to the management of global employment relations, for example: the use of complex problem-solving and decision-making skills to select appropriate staffing systems in global business. Many candidates also showed the implications of such a relationship for business. Responses were supported with one or more business case studies.

In mid-range responses, candidates tended to provide characteristics and features of management skills and managing global employment relations, but did not necessarily show the link between the two. Most of these responses were well structured, but the use of case studies, business terminology and concepts was limited.

In weaker responses, candidates tended to make some reference to management skills or managing employment relations. In most cases, there was little if any reference to business case studies or relevant business terminology.