Instructions:
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Carefully review all given instructions and past paper guidelines before starting each practice session.
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Attempt the past paper questions independently first, just as in an actual exam environment.
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Use a notebook or exam-style sheets to write your answers. Ensure your work is neat, clearly labeled with question numbers, and follows proper exam format.
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After completing each section, check your answers using the provided marking schemes and examiner reports (if available).
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Review your mistakes and rewrite incorrect answers to improve accuracy and exam technique.
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If you find any questions difficult or unclear, watch the video given below for that paper. In that video, each paper is discussed in detail.
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If you still face difficulties or have doubts after watching the video, note them down and discuss them with your instructor or course coordinator for clarification.
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Revise question-solving strategies and repeat similar past paper questions to strengthen your understanding and performance.
Click Here to download the Video Handout
Hello everyone. Today we are going to walk through the Jems Jewellery case study from the May June 2024 O Level Business Studies Paper 2. This lesson will help you understand how to approach each question, how to write high-quality answers, and how the marks are awarded. By the end, you should feel confident about what examiners expect and how to move your answers from basic to top level.
Let’s begin with Question 1(a). The question asks: Explain two reasons why setting business objectives is important to JJ. This question is worth eight marks. The marking guidance says you can earn up to four marks per reason. You get one mark for identifying a valid reason such as providing direction or measuring performance. You earn another mark for a simple explanation and up to two more marks for developing your answer and linking it to JJ’s situation. For example, you could say, “Objectives give JJ a clear sense of direction and focus. They help all departments work toward common goals like expanding or increasing profit.” The second reason could be, “Objectives allow JJ to measure performance. If JJ sets a goal to break even within twelve months, managers can track progress and take action if targets are not met.” Clear reasoning, supported with context, is the key to full marks.
Now we move to Question 1(b), which asks you to use Appendix 1 to consider two new products and justify which one JJ should choose using break-even calculations. This is a twelve-mark question and marking is done in four levels. Level 1 is basic understanding of break-even with no valid recommendation. Level 2 includes some attempt at calculation and a general conclusion. Level 3 shows accurate calculations and analysis of both options. Level 4 has fully correct calculations, detailed comparison, and a well-supported recommendation.
You start by calculating contribution per unit, which is selling price minus variable cost. For the bracelet, contribution is seven dollars. For the earrings, it is six dollars. Then calculate break-even: fixed cost divided by contribution per unit. Both products break even at 200 units. Because the bracelet gives higher contribution per unit, it will earn more profit once the business passes break-even. The best recommendation is that JJ should produce the bracelet because it offers a higher profit margin and supports JJ’s growth objective. Always include numbers, analysis, and a final justified recommendation for top marks.
Question 2(a) is about employing part-time workers. It is worth eight marks. The marking guidance says you can earn up to two marks per point. You need two benefits and two limitations. One mark is for identifying each point and one for explaining or linking it to JJ’s context. You could say, “A benefit is flexibility, because JJ can schedule part-time workers during busy seasons like festivals.” Another benefit is “cost savings, since part-timers usually receive fewer benefits, which reduces JJ’s overall expenses.” Limitations include “lower commitment, as part-timers might not feel strongly attached to JJ’s long-term goals,” and “extra training costs, since JJ may need to train more workers for shorter hours.” Keep each point short and clear to get all eight marks.
Question 2(b) is about promotion methods. The question says: Consider three promotional methods and recommend one. It carries twelve marks, also with four levels. Level 1 is simple description of the methods. Level 2 shows some advantages and disadvantages. Level 3 compares methods and gives a reasonable recommendation. Level 4 presents a balanced evaluation, linking cost, audience, and business strategy.
Advertising in fashion magazines targets stylish buyers, but it can be expensive. Leaflets are cheap but may not reach the right customers. Point-of-sale displays encourage impulse buying but are limited to people already in stores. A high-level answer would conclude that JJ should use advertising in fashion magazines because it directly reaches its fashion-conscious market, builds brand image, and can lead to sustained awareness. Always compare all three before recommending one.
Next is Question 3(a). It asks for four reasons why profit is important to a business. The question is worth eight marks. According to the marking guidance, you earn two marks per reason: one for identifying the point and one for explaining it. You could say that profit allows survival by covering costs, provides funds for reinvestment, acts as a reward for risk, and attracts investors. Each reason must be clear and relevant to JJ’s business.
Question 3(b) focuses on ecommerce. You must consider opportunities and threats, then decide which has the greater effect on JJ. The marking guidance again uses four levels. Level 1 is basic listing. Level 2 shows some understanding of effects. Level 3 includes analysis of how ecommerce impacts sales, costs, or competition. Level 4 offers a well-reasoned judgement about which impact matters more. Opportunities include wider market reach and lower operating costs. Threats include strong competition and delivery problems. The best recommendation is that the opportunity of reaching a wider market will have the most significant effect on JJ because it allows national and international growth. This final judgement, backed by reasoning, is what earns evaluation marks.
Question 4(a) deals with the effects of rising unemployment, worth eight marks. The marking guidance allows four marks per effect: one for identifying, one for basic explanation, and two for further development linked to JJ. For example, “Higher unemployment reduces consumer spending, so fewer people may buy jewellery, which could lower JJ’s sales.” The second effect could be “A larger pool of job seekers makes it easier for JJ to recruit skilled workers, possibly at lower wages.” Always apply your points directly to the business given.
Finally, Question 4(b) asks about two environmental issues and which one JJ should solve first. This is another twelve-mark question with four levels. Level 1 gives basic awareness of issues. Level 2 describes them with little connection to the business. Level 3 analyses the impact. Level 4 evaluates urgency, control, and long-term benefits with a strong justification.
You could explain that using coal for fuel creates pollution and adds to global warming. Switching to solar power could lower long-term costs, and the government even offers grants. On the other hand, buying gems from environmentally harmful suppliers damages brand image, but JJ has less direct control over those mines. A strong conclusion is that JJ should first address coal use, because it can directly control this issue, reduce emissions, and show real environmental responsibility to customers. Always end with a clear recommendation that shows judgement.
Before we end, remember how marks are awarded in Paper 2. Questions assess four key skills. AO1 is knowledge and understanding, AO2 is application, AO3 is analysis, and AO4 is evaluation. Every strong answer uses all four. Start with clear knowledge, apply it to the business, explain how or why it matters, and finish with a reasoned decision. This structure automatically moves you to the higher levels of marking.
To summarise, we have discussed objectives, break-even analysis, part-time work, promotions, profit, ecommerce, unemployment, and environmental responsibility. Always read the question carefully, underline command words like “explain,” “consider,” and “justify,” and use the business name in every answer. Keep your paragraphs short and purposeful, use examples from the case, and finish with a justified conclusion. That is how you achieve top marks in Paper 2.
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