A Level Business

An introductory
guide to
assessment
For teachers switching from a BTEC or
vocational level 3 qualification
What this pack will cover
o An explanation of how the AS and A
Level qualifications are assessed

o An explanation of the different types of

questions, the command words they use
and the way they are assessed

o Training material on how to get the best

out of your students looking at the key
expectations from the marking grids

o Where to access key information to help

with the planning and delivery of the
course
A Level qualifications
Edexcel AS business
Edexcel A Level business
AS papers

Students have the option to complete an AS after the first year, which is worth half an
A level. This does not go towards the A level grade.

Unlike BTEC the exams are only sat once

There are 2 exam papers for the AS:

o Paper 1 is worth 50% of the AS qualification and it assesses theme 1

o Paper 2 is worth 50% of the AS qualification and it assesses theme 2

o The papers are out of 80 marks and they have 1 hour and 30 minutes to
complete them

Click to play
AS paper

The students are provided with extracts

There will be different extracts for each section of the exam paper

o Section A consists of 6 questions ranging from 2-10 marks per question

o Section B consists of 6 questions. The same format as section A

o Section C consists of 1 20-mark question

Click to play
A Level papers

After the students have studied all 4 themes they can sit the A level exams.

Unlike BTEC, the exams can only be sat once

There are 3 exam papers that assess the 4 themes:

o Paper 1 is worth 35% of the A level qualification and it assesses theme 1 and
theme 4
o Paper 2 is worth 35% of the A level qualification and it assesses theme 2 and
theme 3
o Paper 3 is worth 30% of the A level qualification and it assesses all 4 themes
o There will be a pre released document for paper 3 that will be released in the
November prior to the summer examinations
Click to play
A Level pre release for paper 3

The theme and information will be available on the Edexcel website in the November
for the examinations

There will be a new theme each year

The first section will focus on the broad context provided.

The second section will focus on at least one strand within the context provided

Click to play
Specification at a glance

Theme 1 Theme 2
Marketing and people Managing business activities
Meeting customer needs Raising finance
The market Financial planning
Marketing mix and strategy Managing finance
Managing people Resource management
Entrepreneurs and leaders External influences
Theme 4 Theme 3
Global business Business decisions and strategy
Globalisation Business objectives and strategies
Global markets and business expansion Business growth
Global marketing Decision-making techniques
Global industries and companies (multinational Influences on business decisions
corporations) Assessing competitiveness
Managing change

Click to play
Assessment objectives

A Level AS

AO1 Demonstrate knowledge of terms, concepts, 20-22% 30-32%

theories, methods and models to show an
understanding of how individuals and organisations
are affected by and respond to business issues

AO2 Apply knowledge and understanding to various 22-24% 25-28%

business contexts to show how individuals and
organisations are affected by and respond to issues

AO3 Analyse issues within business, showing an 28-30% 22-24%

understanding of the impact on individuals and
organisations of external and internal influences
AO4 Evaluate quantitative and qualitative information to 26-28% 19-21%
make informed judgements and propose evidence-
based solutions to business issues
Click to play
Quantitative skills
Skill Construct or Use and interpret
calculate
Ratios, averages, fractions  
Percentage and percentage change  

Standard graphical forms  

Index numbers 
Cost, revenue, profit and  
break-even
Investment appraisal  
Price and income elasticity  
Quantitative and non-quantitative information 

Click to play
 Types of
exam questions
Points based questions

On the AS paper 1 and 2 there are 8 points-based questions

On the A level paper 1 and 2 there are 4 points-based questions

There are no points-based questions on paper 3

Click to play
Points based

There are different command words that can be used on the points-based questions.
These are:
o Define/What is meant by (2-mark question only on AS papers)
o Explain
o Calculate
o Construct

Click to play
2 mark- Define/what is meant by question

The answer needs to be a fully developed definition.

This is a knowledge question

It is always helpful to give an example, but it isn’t required

Click to play
Example answer

1a) What is meant by differentiation (2)

‘Making the product/service stand out (1) from the competition (1)’

This gained full marks 2/2

Click to play
 4 mark
‘Explain’ questions
1 Knowledge mark
2 Application marks
1 Analysis mark
Explain one reason why Brompton might use job production. (4)

Brompton bikes use job production as their bikes are made individually as one off’s.
Each worker has a signature that they stamp on the bike, which make the bikes
unique. This allows Brompton bikes to charge higher prices for their foldable bikes as
they have added value through job production by ensuring high quality unique
products

This gained 4/4 marks

The Knowledge is in green

The application is in red
The analysis is in blue

Click to play
 4 mark
‘calculate’ question
1 Knowledge mark
3 Application marks
Example response 4/4

Click to play
4 mark construct question

There are:
2 Knowledge marks
1 Application mark
1 Analysis mark

These questions will require the students to draw a diagram

The diagrams must be fully labelled.

Click to play
Example question

Using the data in Extract A, draw a supply

and demand diagram to show the possible
impact of the change in the price of gold,
between 6 December 2019 and 5 January
2020, on the luxury watch market. (4)

Click to play
Example response 2/4

Click to play
Level based questions
How to use the marking grid

Finding the right level

The first stage is to decide into which

level the answer should be placed
in.

Use a ‘best-fit’ approach, deciding

which level most closely describes
the quality of the answer.

The response may show some

elements of Level 2 and Level 4, so
a best fit would be Level 3

Click to play
How to use the marking grid

Finding a mark within a level

After a level has been decided on, the

next stage is to decide on the mark
within the level.

Levels with 2 marks start with the

presumption that the work will be at
the top of the level. Move down to the
lower mark if the work only just meets
the requirements of the level.

Levels with 3 or more marks should start

at the middle of the level and then
move the mark up or down to find the
Click to play
best mark.
Level based questions
Levels-based mark grid focus on the skills being assessed.

These mark grids provide a consistent understanding of the skills and connections between these
skills

The bands within each mark grid clearly show the progression of these skills

The mark schemes focus on the quality of student answers rather than the quantity

This means they do not state the ‘number’ of points students should make in their responses.

To guide teachers and markers, the breakdown of marks allocated to each Assessment Objective is
given within the levels-based mark grid

There are four assessment objectives: knowledge and understanding; application; analysis and
evaluation.
Click to play
 8-Mark question

o 8-mark questions use the

command word ‘assess’ and
are usually ‘assess two’

o The word assess requires

students to balance their
points

o The highlight areas show

the requirements needed to
hit the top level

Click to play
Assess two benefits to Tesco of having a flexible workforce (8)
Model response 8/8
A flexible workforce will allow Tesco to adapt to an increase or decrease in customer demand, as they
will have staff available through either zero hour contracts or part time workers extending their hours.
This is extremely important for a grocery business that has fluctuations of demand e.g. more people go
shopping at the weekend and in the holidays. By being able to adapt to customer demands they will
avoid customer complaints, which could damage the brand
However staff on zero hour contracts often feel demotivated due to a lack of a guaranteed wage, this
lack of motivation might be clear to customers who might receive bad customer service in the grocery
store due to this unhappiness in the workplace
A flexible workforce would also be beneficial for Tesco when they operate 24 hours a day. There may not
be a constant need for a cashier during the night, so multi skilled workers could get on with other tasks
rather than waiting around. This could improve the efficiency of the employees at Tesco
However, employees will need to be trained up on a number of different roles, which could take time and
money when they are having to learn how to stock shelves and operate the cash system. This is an
opportunity cost as that money could be better used on marketing to promote the brand
The Knowledge is in green
The application is in red Click to play
The analysis is in blue
Examiners comment

Click to play
10-mark question

• 10-mark questions use the

command word ‘assess’
• The word assess requires
students to balance their point.
This is achieved by looking at an
alternative viewpoint
• There are 4 levels on a 10-mark
question.
• The chains of reason should be
more developed that an 8-mark
question and a judgement is
required to get the top of the level
• The highlight areas show the
requirements needed to hit the top
level Click to play
Assess the importance of cost efficiency as an objective for a
company such as Tesco (10) Model response 10/10
Cost efficiency is clearly an important objective for Tesco given that they have set a target of saving £1.5bn. Being cost
efficient would allow Tesco to focus on reducing their costs of operating by looking at many functions of the business,
such as Human resources. The case study shows that one of the areas they have focussed on it making 6,000
managers redundant as a cost efficiency exercise. This is likely to be important to Tesco as they are in a highly
competitive market; the grocery market, so they would want to keep their costs low, so that they can charge lower
prices of their food items to encourage further customers to shop with them. This appears to have been successful with
attracting 260,000 more customers over the past year.
However, Cost efficiency might not be an important objective for Tesco as they are the UK’s largest grocer and will
probably already benefit from economies of scale, which allows them to naturally benefit from lower costs per unit. Due
to the size of the business, they might be more likely to focus on profits and profit maximisation, especially given that
their profits exceeded £1bn. By doing this they can then please their shareholders and furthermore have retained
profits to invest in broadening its portfolio of services it offers e.g. photo service
Sales maximisation is likely to be the most important objective for Tesco given that one of the reasons Dave Lewis was
hired to address flagging sales. The high street is clearly suffering as it is evident that there is gloom on the high street
and Tesco’s objective could most likely be to focus on maximising their sales of their strong brand. Therefore, although
cost efficiency has a place as a focus in the short term, sales maximisation need to be the clear medium to long term
aim for the supermarket

The Knowledge is in green The application is in red Click to play

The analysis is in blue The evaluation is in black
Examiners comment

Click to play
12-mark question

Click to play
Assess the likely value of secondary market research to Deliveroo’s marketing (12)
Model response

Click to play
20-mark question

o The command word for a 20-mark

question is evaluate.

o Students will be given 2 options to

evaluate, usually in order to achieve
something e.g.

o Recommendations should again offer

something new and they should decide
which option the business should go with
and why.

Click to play
Click to play
Exam technique using the grade descriptors on
the marking grids

1- Knowledge and understanding

2- Supported throughout (application)

3- Well developed and logical chain of reasoning

4-Quantitative information

5- Full awareness of the significance of competing

arguments and balanced comparisons

6- Effective conclusion that proposes a solution and/or

recommendation

Click to play
1- Knowledge and understanding

This can be achieved through definitions or key words

The students should learn the key terms on the specification

This is shown on the marking grid as ‘accurate and thorough knowledge and
understanding’

Click to play
 Show knowledge from the specification

Instead of…. Use specification terms….

By cutting costs they can increase their profit By cutting their variable costs, such as their
cost of sales, they can increase their gross
profit
By increasing the factory space, they can By increasing factory capacity they can
produce more products increase output by utilising this
By increasing pay, they can make their By using financial motivators, such as a
workers work harder bonus scheme, they could motivate their
employees to be more efficient and increase
output

Click to play
2- Supported throughout (Application)

Application should come from the extract to support the knowledge

On the marking grid, there are several statements that show that this is needed such
as ‘Supported throughout,’ ‘quantitative and qualitative information are used well,’
‘Well contextualised’

From level 2 there is an expectation that answers are within context

Click to play
A generic answer

Click to play
How part of it could be improved

Such as Ford and Nissan

Such as steering wheels and engines

This is significant when car parts

can take up huge space in a
factory and therefore the cost of
storing these can be high

cars

Click to play
3 Chains of reason

Students often revise lots of advantages and disadvantages for each topic area and
if they are not careful these become a list.

Students should use their knowledge to create a chain of reason.

This can be achieved by using connectives such as ‘This could mean’ ‘Therefore,’
‘Consequently’

The students should see their arguments as stepping stones.

Click to play
Example question (part answer)
Evaluate whether sale of asset or retained profit would be more suitable for Asian
Biscuit Confectionary (ABC) to help finance the purchase of new production equipment

‘Sale of assets is an internal source of finance. It is a cheap form of

finance. ABC would be able to get hold of this finance quickly. ABC would
sell off their existing production equipment.’

Click to play
Changing statements into a chain of reason

‘Sale of assets is an internal source of finance, which is a relatively It is a cheap

form of finance, given that ABC would not have to lend any money and therefore
they would not have any added interest that they have to pay back. ABC would be
able to get hold of this finance quickly, which could allow them to purchase the new
production equipment in a timely manner, which could enable them to increase their
capacity as soon as possible. ABC would sell off their existing production
equipment, which then prevents them from duplicating resources that may not be
needed when they purchase the new equipment.’

Click to play
4- Quantitative information

Some questions will state this e.g. Using the data in Extract A, explain one way
demand for online food deliveries is affected by income elasticity of demand.

This can be achieved by either using the data at face value or manipulating it to
create an argument

These questions can be either standalone questions eg calculate the net cash flow
for January or they may be a question like the above example where they can use
the data to create an argument.

Click to play
5 Competing arguments/Balanced arguments

For levels of response answers (8, 10, 12 and 20-mark questions)

The level descriptors that this addresses are; ‘A full awareness of the validity and
significance of competing arguments’ ‘factors leading to balanced comparisons’

Many students create a second paragraph for each option they assess using word
such as ‘however’ or ‘on the other hand’

Click to play
Example response 4/8

Assess two pricing strategies Richard could use at Northfields Cycles (8)

One pricing strategy Richard could use at Northfields cycles is price skimming, where
the price of the bike would be high to start off with and then it would be lowered over
time. This would benefit Richard as he could sell some bikes at a higher price before
lowering the price

Another pricing strategy Richard could use would be competitive pricing, where the
bikes would be on sale at a similar price to other bike shops in the market. This means
they aren’t charging ridiculously low or high prices

Click to play
How the response could be improved (in red)
Assess two pricing strategies Richard could use at Northfields Cycles (8)

One pricing strategy Richard could use at Northfields cycles is price skimming, where the price of the bike would be high to start off
with and then it would be lowered over time, once they have gained back the money from the research and development cost from
producing the bikes. This would benefit Richard as he could sell some bikes at a higher price before lowering the price, as customer
may be more likely to pay a higher price for something new on the market
However, price skimming often puts customers off especially when there are cheaper substitutes on the market such as the bikes
sold at Halford. This could prevent Northfields from maximising their sales

Another pricing strategy Richard could use would be competitive pricing, where the bikes would be on sale at a similar price to other
bike shops in the market. Northfields may be tempted to use this pricing strategy and focus on competing on non-price factors such
as customer service instead. This could set them apart from their rivals such as Halfords, as customers may be more inclined to
buy a bike from somewhere that can offer them advice about how to fix /get the most out of the bike This means they aren’t
charging ridiculously low or high prices
However, Northfields would need to be sure that customers are aware of their distinctive capability, otherwise customers will just
see their prices as the same as others. Therefore, customers would not be aware of the differentiator which could prevent them
from maximising sales.

Click to play
6- Judgements and recommendations

For a 10 and 12-mark question, a judgement is needed in a conclusion.

For a 20-mark question, a recommendation is needed in a conclusion,.

This should not be a summary or repetition.

Good recommendations include application from the extract and well thought out
reasons for the judgement

Click to play
Recommendation focus (MOPS)

One way students can write a recommendation is through using 2 or 3 elements of

MOPS such as;
o Market
o Objectives
o Product
o Situation

Click to play
Example of MOPS recommendation

Given that Sosyo are trying to increase their market share (objective), franchising could
be the best option to achieve this. Through franchising Sosyo are able to gain the
financial and physical support of others (the franchisee) when trying to expand at a fast
rate, which is needed to ensure success and power in a highly competitive market
(market). This is particularly important at the given time where interest rates are high.
(situation) so the cost of borrowing is high. In order for Sosyo to gain the finance
themselves to expand, they would have to get themselves in debt with high rates of
return if there were going to expand without franchising. This could negatively affect their
cashflow situation. Therefore, by franchising they can expand quickly with little debt.

Click to play
Where to find all the key information on the website

The specification covers all the topics that need to be covered throughout the course
https://qualifications.pearson.com/content/dam/pdf/A%20Level/Business%20Studies/2015/specification-and-sa
mple-assessment-materials/9781446914694_GCE2015_A_BUS_WEB.PDF

The Getting started guide include a break down of what you need to cover for each parts of the specification
https://qualifications.pearson.com/content/dam/pdf/A%20Level/Business%20Studies/2015/teaching-and-learning
-materials/a-level-getting-started-guide-business.pdf

The course planner gives you structured delivery plans

https://qualifications.pearson.com/en/qualifications/edexcel-a-levels/business-2015.coursematerials.html#filterQ
uery=Pearson-UK:Category%2FTeaching-and-learning-materials
and select Teaching and learning materials and then course planner

Past exam questions, the mark schemes and the examiners reports can be found under exam materials
https://qualifications.pearson.com/en/qualifications/edexcel-a-levels/business-2015.coursematerials.html#filterQ
uery=Pearson-UK:Category%2FExam-materials

Click to play
Where to find all the key information on the website
Further practice questions can be found under teaching and learning material and assessment support
https://qualifications.pearson.com/en/qualifications/edexcel-a-levels/business-2015.coursematerials.html#filt
erQuery=Pearson-UK:Category%2FTeaching-and-learning-materials
Or alternatively there are a series of FT articles that have been adapted with exam styles questions. These
can be found under teaching and learning materials and Case study

A scheme of work can be found in the teaching and learning material and under scheme of work
https://qualifications.pearson.com/en/qualifications/edexcel-a-levels/business-2015.coursematerials.html#filt
erQuery=Pearson-UK:Category%2FTeaching-and-learning-materials

Student example answers with examiner commentaries can be found in the teaching and learning
section and exemplar material
https://qualifications.pearson.com/en/qualifications/edecel-a-levels/business-2015.coursematerials.html#filter
Query=Pearson-UK:Category%2FTeaching-and-learning-materials

Past training can be found in the teaching and learning section, under past training content
https://qualifications.pearson.com/en/qualifications/edexcel-a-levels/business-2015.coursematerials.html#filt
erQuery=Pearson-UK:Category%2FTeaching-and-learning-materials
End of presentation