Cambridge IGCSE Enterprise 0454 — 2024 May/June Paper 1 · Variant 1

This document has 16 pages. Any blank pages are indicated. [Turn over Cambridge IGCSE™ ENTERPRISE 0454/11 Paper 1 May/June 2024 1 hour 30 minutes You must answer on the question paper. You will need: Insert (enclosed) INSTRUCTIONS ● Answer all questions. ● Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. ● Write your name, centre number and candidate number in the boxes at the top of the page. ● Write your answer to each question in the space provided. ● Do not use an erasable pen or correction fluid. ● Do not write on any bar codes. INFORMATION ● The total mark for this paper is 100. ● The number of marks for each question or part question is shown in brackets [ ]. ● You should have received a copy of the case study before the examination. A copy of the case study is provided with this question paper as an insert. * 5 6 3 8 5 8 0 9 3 5 * DC (PQ) 326032/2 © UCLES 2024

2 0454/11/M/J/24 © UCLES 2024 Section A Answer all questions. 1 Lin and Rachel were enterprising when they set up and developed their ecommerce fashion store. (a) State two stages of the enterprise process. 1 … 2 … [2] (b) Explain the difference between a need and a want. … … … … [2] (c) Explain one reason why an entrepreneur needs to adapt to the changing wants for a product. … … … … [2] (d) Explain how you used two enterprise skills in your enterprise project. Use an example to support each answer. Enterprise skill 1 … … … … Enterprise skill 2 … … … … [4] [Total: 10]

3 0454/11/M/J/24 © UCLES 2024 [Turn over 2 Lin and Rachel have very different attitudes towards risk, but they both agree on the need to comply with regulations. (a) Select the most appropriate word from the list below to complete each of the sentences about laws and regulations. • patent • judge • government • logo Laws and regulations are established by a … If an entrepreneur develops a new product, it can be protected with a … [2] (b) (i) Explain Lin’s attitude to risk. Use an example from the case study to support your answer. … … … … … … [3] (ii) Explain Rachel’s attitude to risk. Use an example from the case study to support your answer. … … … … … … [3] (c) Explain one possible impact on an enterprise if potential risks are ignored. … … … … [2] [Total: 10]

4 0454/11/M/J/24 © UCLES 2024 3 Lin and Rachel negotiated a loan from their parents to raise the finance needed to buy clothes to sell online. (a) Define the term loan. … … … … [2] (b) Explain one disadvantage to Lin and Rachel of using a loan from their parents to raise finance. … … … … [2] (c) Explain how any two stages of the negotiation process helped, or could have helped, the negotiation in your enterprise project. Use an example to support each answer. 1 … … … … … … 2 … … … … … … [6] [Total: 10]

5 0454/11/M/J/24 © UCLES 2024 [Turn over 4 Lin and Rachel needed funding to buy clothes to sell online. (a) Explain one reason, other than buying raw materials, why finance was required in your enterprise project. … … … … [2] (b) (i) Calculate, using Table 1, the total cost for one year of Option 2 (producing their own range of clothes). Show your working. … … … … … Amount US$ per year … [3] (ii) Calculate the amount of interest paid on a loan for the amount in (b)(i) if the interest rate is 10% a year. … … … … … Amount of interest … [3]

6 0454/11/M/J/24 © UCLES 2024 (c) Explain one reason why financial records are kept by an enterprise. … … … … [2] [Total: 10]

7 0454/11/M/J/24 © UCLES 2024 [Turn over 5 Rachel started her research by analysing customer comments and complaints. Lin relied on an interview with a fashion designer and the internet for her research. (a) State two disadvantages of interviews as a method of research. 1 … … 2 … … [2] (b) Explain one reason why it is important that an ecommerce enterprise deals with complaints quickly. … … … … … … [3] (c) Justify one suitable method of marketing communication for an ecommerce enterprise. … … … … … … [3] (d) Explain one source of help and support suitable for Lin and Rachel’s ecommerce enterprise, other than an enterprise consultant. … … … … [2] [Total: 10]

8 0454/11/M/J/24 © UCLES 2024 Section B Answer all questions. 6 (a) If Lin and Rachel decide to choose option 2, they would need to comply with laws or regulations in the areas of: • employment • production • marketing and selling. Analyse the possible effects of any two laws or regulations on this ecommerce enterprise. … … … … … … … … … … … … … … … … … … … … … [10]

9 0454/11/M/J/24 © UCLES 2024 [Turn over (b) Lin and Rachel were considering two enterprise options: • adding a clothing alterations service to their website • producing their own range of clothes. Evaluate which option you believe would be most suitable for Lin and Rachel. You should consider the benefits and disadvantages of both options in your answer. … … … … … … … … … … … … … … … … … … … … … … … … …

10 0454/11/M/J/24 © UCLES 2024 … … … … … … … … … … … … … … … … … … … … … … … … … … … [15] [Total: 25]

11 0454/11/M/J/24 © UCLES 2024 [Turn over 7 Now consider your enterprise project. (a) PEST is a way to identify the risks involved in an enterprise. Analyse the effect of any two factors of PEST on the operation or success of your enterprise project. Use examples to support your answer. … … … … … … … … … … … … … … … … … … … … … … … … … [10]

12 0454/11/M/J/24 © UCLES 2024 (b) Enterprises use many types of communication. These can include: • non-verbal communication such as body language • verbal communication • written communication. Evaluate two types of communication used with stakeholders in your enterprise project. Justify which type was most effective. … … … … … … … … … … … … … … … … … … … … … … … …

13 0454/11/M/J/24 © UCLES 2024 … … … … … … … … … … … … … … … … … … … … … … … … … … [15] [Total: 25]

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16 0454/11/M/J/24 © UCLES 2024 Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. BLANK PAGE

This document consists of 24 printed pages. © Cambridge University Press & Assessment 2024 [Turn over Cambridge IGCSE™ ENTERPRISE 0454/11 Paper 1 Case Study May/June 2024 MARK SCHEME Maximum Mark: 100 Published This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the details of the discussions that took place at an Examiners’ meeting before marking began, which would have considered the acceptability of alternative answers. Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report for Teachers. Cambridge International will not enter into discussions about these mark schemes. Cambridge International is publishing the mark schemes for the May/June 2024 series for most Cambridge IGCSE, Cambridge International A and AS Level and Cambridge Pre-U components, and some Cambridge O Level components.

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 2 of 24 Generic Marking Principles These general marking principles must be applied by all examiners when marking candidate answers. They should be applied alongside the specific content of the mark scheme or generic level descriptions for a question. Each question paper and mark scheme will also comply with these marking principles. GENERIC MARKING PRINCIPLE 1: Marks must be awarded in line with:  the specific content of the mark scheme or the generic level descriptors for the question  the specific skills defined in the mark scheme or in the generic level descriptors for the question  the standard of response required by a candidate as exemplified by the standardisation scripts. GENERIC MARKING PRINCIPLE 2: Marks awarded are always whole marks (not half marks, or other fractions). GENERIC MARKING PRINCIPLE 3: Marks must be awarded positively:  marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond the scope of the syllabus and mark scheme, referring to your Team Leader as appropriate  marks are awarded when candidates clearly demonstrate what they know and can do  marks are not deducted for errors  marks are not deducted for omissions  answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the question as indicated by the mark scheme. The meaning, however, should be unambiguous. GENERIC MARKING PRINCIPLE 4: Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level descriptors.

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 3 of 24 GENERIC MARKING PRINCIPLE 5: Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may be limited according to the quality of the candidate responses seen). GENERIC MARKING PRINCIPLE 6: Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or grade descriptors in mind.

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 4 of 24 Social Science-Specific Marking Principles (for point-based marking) 1 Components using point-based marking:  Point marking is often used to reward knowledge, understanding and application of skills. We give credit where the candidate’s answer shows relevant knowledge, understanding and application of skills in answering the question. We do not give credit where the answer shows confusion. From this it follows that we: a DO credit answers which are worded differently from the mark scheme if they clearly convey the same meaning (unless the mark scheme requires a specific term) b DO credit alternative answers/examples which are not written in the mark scheme if they are correct c DO credit answers where candidates give more than one correct answer in one prompt/numbered/scaffolded space where extended writing is required rather than list-type answers. For example, questions that require n reasons (e.g. State two reasons …). d DO NOT credit answers simply for using a ‘key term’ unless that is all that is required. (Check for evidence it is understood and not used wrongly.) e DO NOT credit answers which are obviously self-contradicting or trying to cover all possibilities f DO NOT give further credit for what is effectively repetition of a correct point already credited unless the language itself is being tested. This applies equally to ‘mirror statements’ (i.e. polluted/not polluted). g DO NOT require spellings to be correct, unless this is part of the test. However spellings of syllabus terms must allow for clear and unambiguous separation from other syllabus terms with which they may be confused (e.g. Corrasion/Corrosion) 2 Presentation of mark scheme:  Slashes (/) or the word ‘or’ separate alternative ways of making the same point.  Semi colons (;) bullet points (•) or figures in brackets (1) separate different points.  Content in the answer column in brackets is for examiner information/context to clarify the marking but is not required to earn the mark (except Accounting syllabuses where they indicate negative numbers).

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 5 of 24 3 Calculation questions:  The mark scheme will show the steps in the most likely correct method(s), the mark for each step, the correct answer(s) and the mark for each answer  If working/explanation is considered essential for full credit, this will be indicated in the question paper and in the mark scheme. In all other instances, the correct answer to a calculation should be given full credit, even if no supporting working is shown.  Where the candidate uses a valid method which is not covered by the mark scheme, award equivalent marks for reaching equivalent stages.  Where an answer makes use of a candidate’s own incorrect figure from previous working, the ‘own figure rule’ applies: full marks will be given if a correct and complete method is used. Further guidance will be included in the mark scheme where necessary and any exceptions to this general principle will be noted. 4 Annotation:  For point marking, ticks can be used to indicate correct answers and crosses can be used to indicate wrong answers. There is no direct relationship between ticks and marks. Ticks have no defined meaning for levels of response marking.  For levels of response marking, the level awarded should be annotated on the script.  Other annotations will be used by examiners as agreed during standardisation, and the meaning will be understood by all examiners who marked that paper.

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 6 of 24 Question Answer Marks Guidance 1(a) State two stages of the enterprise process. 1 mark per correct point Answers may include:  identifying the problem or need  exploring creative solutions  action planning  implementing (the plan)  monitoring progress  evaluation of successes/failures. 2 AO1 – 2 1(b) Explain the difference between a need and a want.  needs are essential to life [1]  wants are desirable items/goods services we would like but do not need [1]  wants are goods or services that a person desires but can live without. [1] 2 AO1 – 2 1(c) Explain one reason why an entrepreneur needs to adapt to the changing wants for a product. Identification of a reason [1] Explanation of reason showing understanding [+1] Answers may include:  to develop products/services [1] which meet demand [+1]  remove products no longer required [1] reducing losses [+1]  stay ahead of the competition [1] gaining market share [+1]  creates an opportunity for enterprise [1]  maintain customer satisfaction [1] therefore gain good word of mouth. [+1] 2 AO1

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 7 of 24 Question Answer Marks Guidance 1(d) Explain how you used two enterprise skills in your enterprise project. Use an example to support each answer. Identification of an enterprise skill [1] Explanation of how skill was used in candidate’s own enterprise [+1] Answers might include:  practical skills  leadership  team-building  delegation  problem-solving  prioritisation  resourcefulness  innovation  taking initiative  taking calculated risks  responsibility  motivation/determination to succeed  creativity  perseverance  influencing skills self confidence. Example: I was innovative [1] when I designed a new flavour of cupcake. [+1] 4 AO1 – 2 AO2 – 2

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 8 of 24 Question Answer Marks Guidance 2(a) Select the most appropriate word from the list below to complete each of the sentences about laws and regulations.  patent  judge  government  logo Laws and regulations are established by a … If an entrepreneur develops a new product, it can be protected with a….. Laws and regulations are established by a government. [1] If an entrepreneur develops a new product, it can be protected with a patent. [1] 2 AO1 – 2 2(b)(i) Explain Lin’s attitude to risk. Use an example from the case study to support your answer. Identification of correct attitude [1] Explanation showing applied understanding [+1] Example to justify choice of attitude [1] Answers may include:  risk keen/risk taker [1] willing to accept some risk [+1] she wanted to try something totally new (option 2) [1]  risk keen [1] she was willing to take the risk [+1] of leaving college. [1] 3 AO1 – 1 AO2 – 1 AO3 – 1

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 9 of 24 Question Answer Marks Guidance 2(b)(ii) Explain Rachel’s attitude to risk. Use an example from the case study to support your answer. Identification of correct attitude [1] Explanation showing applied understanding [+1] Example to justify choice of attitude [1] Answers may include:  risk reducer [1] she limits the likelihood of risk [+1] by completing research [1]  risk adverse [1] she does not want to take the risk [+1] of a new product. (option 2) [1] 3 AO1 – 1 AO2 – 1 AO3 – 1 2(c) Explain one possible impact on an enterprise if potential risks are ignored. Identification of an impact [1] Explanation showing understanding [1] Answers may include:  loss of money [1] from a risky investment [+1]  loss of sales/revenue [1] if product/service sold [+1]  potential legal action/fine [1] if they workers/customers injured. [+1] 2 AO1 – 2

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 10 of 24 Question Answer Marks Guidance 3(a) Define the term loan. Precise definition [2] Partial definition showing some understanding [1] Answers may include:  short or longer term finance paid back with interest at regular periods [2]  a type of borrowing. [1] 2 AO1 3(b) Explain one disadvantage to Lin and Rachel of using a loan from their parents to raise finance. Identification of a disadvantage of a family loan [1] Application to case study [1] Answers may include:  family may expect to have a say in how the enterprise is operated  if not repaid there may be a breakdown of relationships  if the enterprise fails could cause family hardship  may not be sufficient funds available to meet the enterprise needs. Example: The US$ 2000 loan from their parents [1] may not be sufficient to purchase the clothes they need. [1] 2 AO1 – 1 AO2 – 1

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 11 of 24 Question Answer Marks Guidance 3(c) Explain how any two stages of the negotiation process helped, or could have helped, the negotiation in your enterprise project. Use an example to support each answer. Each way should be marked as follows: Identification of a stage [1] Explanation showing how this would assist the negotiation enterprise [+1] Application to the candidate’s enterprise [1] Answers may include:  planning – setting objectives, choosing evidence, identifying benefits and weaknesses, arguments and counter arguments  conducting/implementation – setting the tone, presenting the proposal, understanding views, summarising, coming to an agreement  measuring/evaluating success. Example: Planning [1] I collected relevant research to prove to the principal that I would earn enough revenue [+1] to repay the loan $50 for cupcake ingredients. 6 AO1 – 2 AO2 – 2 AO3 – 2

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 12 of 24 Question Answer Marks Guidance 4(a) Explain one reason, other than buying raw materials, why finance was required in your enterprise project. Identification of a reason [1] Application to own enterprise [+1] Answers may include:  pay bills/rent /utilities/wages  to advertise/promote the enterprise  purchase equipment. Examples:  finance maybe needed to purchase [1] smoothie equipment [+1]  to print our posters [1] to put around the school for students. [+1] 2 AO1 – 1 AO2 – 1 4(b)(i) Calculate, using Table 1, the total cost for one year of Option 2 (producing their own range of clothes). Show your working. Total cost US$ per year = 23100 [3] If the total is incorrect marks can be awarded as follows:  total cost per month 1925 [2]  cost for one year = cost per month multiplied by 12. [1] 3 AO1 – 1 AO2 – 2 4(b)(ii) Calculate the amount of interest paid on a loan for the amount in (b)(i) if the interest rate is 10% a year. 2310 [3] If the answer is incorrect marks may be awarded as follows:  10% of 23100 (or OFR from (b)(i)) [2]  interest = 10% of amount of loan. [1] 3 AO1 – 2 AO2 – 1 OFR applies

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 13 of 24 Question Answer Marks Guidance 4(c) Explain one reason why financial records are kept by an enterprise. Identification of a reason [1] Explanation showing understanding of the reason [+1] Answers may include:  provide a fair view of the enterprise to stakeholders  for legal reasons  to calculate tax due  for forecasting purposes  to assist decision making by owners/managers. Example: To provide correct information to shareholders (a stakeholder) [1] so they can make decisions about their investment. [+1] 2 AO1 – 2

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 14 of 24 Question Answer Marks Guidance 5(a) State two disadvantages of interviews as a method of research. 1 mark per correct disadvantage. Answers may include:  can be time consuming  expensive  interviewer bias  sample size is often very small  people interviewed may not represent the target market. 2 AO1 – 2 5(b) Explain one reason why it is important that an ecommerce enterprise deals with complaints quickly. Identification of a reason [1] Explanation of why important [+1] Application to ecommerce enterprise [1] Answers may include:  method of measuring customer satisfaction  creates bad word of mouth  loss of customers/repeat sales  creates bad reputation. Example: Complaints may lead to a bad reputation for the enterprise [1] as complaints can be posted on the ecommerce site.[1] This may discourage new customers from buying. [+1] 3 AO1 – 1 AO2 – 1 AO3 – 1

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 15 of 24 Question Answer Marks Guidance 5(c) Justify one suitable method of marketing communication for an ecommerce enterprise. Identification of a method of marketing communication [1] Explanation showing why this marketing communication would be suitable [+1] Application to the ecommerce enterprise. [1] Answers could include:  sponsorship  social media  online communication  viral marketing. Example: Online communications [1] as these would be seen by a large audience [+1] of the target market looking for online retailers. [1] 3 AO1 – 1 AO2 – 1 AO3 – 1

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 16 of 24 Question Answer Marks Guidance 5(d) Explain one source of help and support suitable for Lin and Rachel’s ecommerce enterprise, other than an enterprise consultant. Identification of a source of help and support [1] Explanation showing suitability for this enterprise [+1] Answers may include:  government /business agencies  financial institutions  charities  business networks  teachers at college  other entrepreneurs. Example: Lin and Rachel could ask the bank [1] to help analyse their reports on each option to suggest which is the more viable. [+1] 2 AO1 – 1 AO2 – 1

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 17 of 24 Question Answer Marks Guidance 6(a) If Lin and Rachel decide to choose option 2, they would need to comply with laws or regulations in the areas of:  employment  production  marketing and selling. Analyse the possible effects of any two laws or regulations on this ecommerce enterprise. Level Description Mark 3 Good analysis consistently applied to the case study Demonstrates good knowledge of concepts 8–10 2 Some analysis supported by good application to the case study Demonstrates knowledge of concepts 4–7 1 Limited application to the case study Demonstrates knowledge of concepts 1–3 0 No creditable response 0 Knowledge may include:  description of laws or regulations  actions taken if laws not adhered to e.g. sued/fined.  Phrases which demonstrate some analysis may include:  Lin and Rachel must give accurate job descriptions, so candidates are aware of the requirements of the job  meeting regulations/legislations will add to production costs  obtaining a license may take time. 10 The grade descriptions describe performance at the top of the band. Application  will need to employ one designer and two tailors  workshops will have equipment which may be a health risk  they plan to purchase insurance  currently they sell clothing/ have experience of marketing and selling  comply with all current government regulations.

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 18 of 24 Question Answer Marks Guidance 6(a) Phrases which demonstrate good analysis will the impact of this on the enterprise. These may include: Lin and Rachel must give accurate job descriptions so candidates are aware of the requirements of the job therefore they will be safeguarded against legal action for unfair employment practises.

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 19 of 24 Question Answer Marks Guidance 6(b) Lin and Rachel were considering two enterprise options:  adding a clothing alterations service to their website  producing their own range of clothes. Evaluate which option you believe would be most suitable for Lin and Rachel. You should consider the benefits and disadvantages of both options in your answer. Level Description Mark 4 Clear reasoned evaluation is present Good analysis applied consistently to the case study Demonstrates good knowledge of relevant concepts 12–15 3 Good analysis applied consistently to the case study is leading to evaluation Demonstrates knowledge of relevant concepts 8–11 2 Some application to the case study supported by some analysis Demonstrates knowledge of relevant concepts. 4–7 1 Limited application to the case study Demonstrates some knowledge of relevant concepts. 1–3 0 No creditable response 0 15 The grade descriptions describe performance at the top of the band.

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 20 of 24 Question Answer Marks Guidance 6(b) Knowledge may include:  option 2 is most inexpensive option/option 1 least expensive  option 2 involves employing more workers  option 2 more potential for growth. Phrases which demonstrate some analysis may include:  use of calculations from Q4b  option 1 lower risk because less cost and resources needed  option 2 costs US$1925 per month  option 2 involves employing more workers which may be difficult to manage and take a longer time. Phrases which demonstrate good analysis will show why this is a point to consider and may include:  additional calculation not shown in question 4b  option 2 at US$1925 involves employing more workers which may be difficult to manage and take a longer time to break even and make a profit  producing the legal paperwork and the required staff for option 2 may slow down the project. Evaluation maybe shown by a two-sided approach considering the benefit and negative aspects of each choice.

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 21 of 24 Question Answer Marks Guidance 7(a) PEST is a way to identify the risks involved in an enterprise. Analyse the effect of any two factors of PEST on the operation or success of your enterprise project. Use examples to support your answer. Level Description Mark 3 Good analysis consistently applied to their own enterprise experience. Demonstrates good knowledge of concepts 8–10 2 Some analysis supported by good application to their own enterprise experience. Demonstrates knowledge of concepts 4–7 1 Limited application to their own enterprise experience. Demonstrates knowledge of concepts 1–3 0 No creditable response 0 Knowledge: P – political change such as changes in laws and regulations E – economic changes such as inflation or unemployment/ the income of our target market S – social or society change such as an interest/ concern about the environment or willingness to purchase online, the wants of our target market T – technology such as the improvements to internet connections facilitating online retailing. 10 The grade descriptions describe performance at the top of the band.

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 22 of 24 Question Answer Marks Guidance 7(a) Phrases which demonstrate some analysis may include:  technology – we bought a card reader machine to take credit payments increasing payment options  economical – I had low set up costs so breakeven point was low. Phrases which demonstrate good analysis will the impact of this on their enterprise. These may include: Technology – we bought a card reader machine to take credit payments which led to more customers buying T- shirts because they could pay easily without cash.

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 23 of 24 Question Answer Marks Guidance 7(b) Enterprises use many types of communication. These can include:  non-verbal communication such as body language  verbal communication  written communication. Evaluate two types of communication used with stakeholders in your enterprise project. Justify which type was most effective. Level Description Mark 4 Clear reasoned evaluation is present Good analysis applied consistently to their enterprise Demonstrates good knowledge of relevant concepts 12–15 3 Good analysis applied consistently to their enterprise is leading to evaluation Demonstrates knowledge of relevant concepts 8–11 2 Some application to their enterprise supported by some analysis Demonstrates knowledge of relevant concepts 4–7 1 Limited application to their enterprise Demonstrates some knowledge of relevant concepts 1–3 0 No creditable response 0 15 The grade descriptions describe performance at the top of the band.

0454/11 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 24 of 24 Question Answer Marks Guidance 7(b) Knowledge may include:  examples of each type of verbal communication being used  key elements of each type of communication e.g. tone when speaking. Phrases which demonstrate some analysis may include:  examples of how each type of communication was used in the context of their own enterprise and the advantages and costs. Phrases which demonstrate good analysis will show why this is a point to consider and may include: The impact that each type of communication had on the operation of the enterprise. Evaluation may be shown by a two-sided approach considering the benefit and negative aspects of each choice.