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M19/3/BUSMT/SP1/ENG/TZ0/XX/M 13 pages Markscheme May 2019 Business management S

M19/3/BUSMT/SP1/ENG/TZ0/XX/M 13 pages Markscheme May 2019 Business management Standard level Paper 1 – 2 – M19/3/BUSMT/SP1/ENG/TZ0/XX/M No part of this product may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval systems, without written permission from the IB. Additionally, the license tied with this product prohibits commercial use of any selected files or extracts from this product. Use by third parties, including but not limited to publishers, private teachers, tutoring or study services, preparatory schools, vendors operating curriculum mapping services or teacher resource digital platforms and app developers, is not permitted and is subject to the IB’s prior written consent via a license. More information on how to request a license can be obtained from http:// www.ibo.org/contact-the-ib/media-inquiries/for-publishers/guidance-for- third-party-publishers-and-providers/how-to-apply-for-a-license. 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El uso por parte de terceros —lo que incluye, a título enunciativo, editoriales, profesores particulares, servicios de apoyo académico o ayuda para el estudio, colegios preparatorios, desarrolladores de aplicaciones y entidades que presten servicios de planificación curricular u ofrezcan recursos para docentes mediante plataformas digitales— no está permitido y estará sujeto al otorgamiento previo de una licencia escrita por parte del IB. En este enlace encontrará más información sobre cómo solicitar una licencia: http://www.ibo.org/es/contact-the-ib/media-inquiries/for-publishers/ guidance-for-third-party-publishers-and-providers/how-to-apply-for-a- license. – 3 – M19/3/BUSMT/SP1/ENG/TZ0/XX/M The markbands and assessment criteria on pages 5–6 should be used where indicated in the markscheme. Section A Level descriptor Q1 (b) Q2 (b) Q3 (b) Marks 0 The work does not reach a standard described by the descriptors below. 1–2 • Little knowledge and understanding of relevant issues and business management tools (where applicable), techniques and theories. • Little use of business management terminology. • Little reference to the stimulus material. 3–4 • A description or partial analysis of some relevant issues with some use of business management tools (where applicable), techniques and theories. • Some use of appropriate terminology. • Some reference to the stimulus material that goes beyond the name of a person(s) and/or the name of the organization. • At the lower end of the markband, responses are mainly theoretical. 5–6 • An analysis of the relevant issues with good use of business management tools (where applicable), techniques and theories. • Use of appropriate terminology throughout the response. • Effective use of the stimulus material. – 4 – M19/3/BUSMT/SP1/ENG/TZ0/XX/M Section B Q4 (d) Level descriptor Marks 0 The work does not reach a standard described by the descriptors below. 1–2 • Little understanding of the demands of the question. • Few business management tools (where applicable), techniques and theory are explained or applied and business management terminology is lacking. • Little reference to the stimulus material. 3–4 • Some understanding of the demands of the question. • Some relevant business management tools (where applicable), techniques and theories are explained or applied, and some appropriate terminology is used. • Some reference to the stimulus material but often not going beyond the name of a person(s) and/or the name of the organization. 5–6 • Understanding of most of the demands of the question. • Relevant business management tools (where applicable), techniques and theories are explained and applied, and appropriate terminology is used most of the time. • Some reference to the stimulus material that goes beyond the name of a person(s) and/or the name of the organization. • Some evidence of a balanced response. • Some judgments are relevant but not substantiated. 7–8 • Good understanding of the demands of the question. • Relevant business management tools (where applicable), techniques and theories are explained and applied well, and appropriate terminology is used. • Good reference to the stimulus material. • Good evidence of a balanced response. • The judgments are relevant but not always well substantiated. 9–10 • Good understanding of the demands of the question, including implications, where relevant. • Relevant business management tools (where applicable), techniques and theories are explained clearly and applied purposefully, and appropriate terminology is used throughout the response. • Effective use of the stimulus material in a way that significantly strengthens the response. • Evidence of balance is consistent throughout the response. • The judgments are relevant and well substantiated. – 5 – M19/3/BUSMT/SP1/ENG/TZ0/XX/M Section A 1. (a) With reference to RDM, describe how changes in operations management altered its relationship with two other business functions. [4] The shift in operations management from a traditional industrial manufacturing process to an automated process altered its relationship with the following business functions: • Human resources: RDM changed its recruitment from semi-skilled young people who had just completed their education at a local technical secondary school to university graduates with degrees in engineering or computer science. This shift almost certainly necessitated a shift in approaches to leadership and motivation. • Marketing: In the process of becoming an automated manufacturing process, RDM fundamentally changed its marketing mix. Though the decision to shift from kerosene stoves was market driven (declining demand), the automated process allows RDM to customize products and make, as in the case of the aluminum water bottles, wholly new products. • Accounting and Finance: Prior to automation, RDM made uniform products on a large scale. Pricing decisions would have been relatively rare – setting a fixed price for a product. Now that the business is making customized products, pricing decisions have to be made with virtually every order, which involves people from the accounting department. Whereas RDM had capital expenditures prior to full automation, it also had substantial revenue expenditures in the form of payroll. With automation, the mix of capital versus revenue expenditures shifted in the direction of more capital expenditures. This shift requires significantly different approaches to finance. Candidates should name the functions, but they can be implicit. N.B. R&D is not a business function. Accept any other relevant changes. Mark as a 2 + 2. Award [1] for an appropriate business function identified and an additional [1] for some description of changes in context. Award a maximum of [2] for each function described. (b) Explain how RDM’s transformation of its manufacturing process from traditional mass production to highly automated production affected the interests of internal stakeholders. [6] • Employees – jobs will change, different skills, highly trained engineers and computer scientists. • Managers – tasks will change, management role different. • Shareholders – may have sacrificed dividends for investments but reaped benefits later. Accept any other relevant internal stakeholders. Marks should be allocated according to the markbands on page 5. Award a maximum of [3] for a theoretical answer, or for only considering one internal stakeholder. – 6 – M19/3/BUSMT/SP1/ENG/TZ0/XX/M Award a maximum of [5] if the answer is mainly descriptive but in context. Award a maximum of [6]. – 7 – M19/3/BUSMT/SP1/ENG/TZ0/XX/M 2. (a) With reference to RDM, outline one advantage and one disadvantage of Jan’s leadership style (lines 88–89). [4] Jan’s leadership style is democratic with hints of laissez faire. A simple assertion that it is democratic or is laissez faire is insufficient for context. Advantages: • Employees feel that they have more freedom and more say in the operation of the business. • Greater sense of autonomy and purpose, which fosters creativity, innovation and teamwork. • It extends responsibility for decision making to a broader group, increasing the likelihood of employees exercising authority more responsibly. When engineers contact customers to help them with their design, for example, they know that they are representing the business to the outside world and must bear that responsibility. • Most employees like this leadership style. Disadvantages: • It is less orderly than the style of Jan’s father. According to the case, despite an atmosphere of “teamwork, diversity, humour and fun,” sometimes RDM now seems a bit chaotic. • Decision making can take longer. When Kristián ran the business, he made all the decisions, and he could make them as quickly (or take as long) as he uploads/Industriel/business-management-paper-1-sl-markscheme.pdf