Mrs. Rumsey's Guide to IB Business Management 2017-2018
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Mrs. Rumsey's
Guide to IB
Business Management
2017-2018
1Table of Contents
Business Management Introduction .......................................................................... 3
Approaches to Learning ............................................................................................. 4
6 Concepts ................................................................................................................. 5
CUEGIS ...................................................................................................................... 7
Syllabus Outline........................................................................................................ 16
Unit 1 ....................................................................................................................... 16
Unit 2 ....................................................................................................................... 18
Unit 3 ....................................................................................................................... 20
Unit 4 ....................................................................................................................... 22
Unit 5 ....................................................................................................................... 24
Command Terms ...................................................................................................... 25
Assessment .............................................................................................................. 27
IA Guide ................................................................................................................... 28
Concept Testing ........................................................................................................ 29
Research/Data.......................................................................................................... 30
Writing First Draft..................................................................................................... 32
Challenged Areas ...................................................................................................... 33
Brainstorming/TimeLine ........................................................................................... 34
IA Criteria Grading .................................................................................................... 35
Current Event form ................................................................................................... 37
Partner Case Study Rubric ........................................................................................ 39
2Business Management
Business management is a rigorous, challenging and dynamic discipline in the individuals and society subject group. The
role of businesses, as distinct from other organizations and actors in a society, is to produce and sell goods and services
that meet human needs and wants by organizing resources. Profit-making, risk-taking, and operating in a competitive
environment characterize most business organizations.
Although business management shares many skills and areas of knowledge with other humanities and social sciences, it
is distinct in a number of ways. For example, business management is the study of decision-making within an
organization, whereas economics is the study of scarcity and resource allocation, both on micro and macro levels.
Business management examines the use information technology in business contexts, whereas information technology
in a global society (ITGS) critically examines its impact on other fields, such as health and government.
Business management studies business functions, management processes and decision-making in contemporary
contexts of strategic uncertainty. It examines how business decisions are influenced by factors internal and external to
an organization, and how these decisions impact upon its stakeholders, both internally and externally. Business
management also explores how individuals and groups interact within an organization, how they may be successfully
managed and how they can ethically optimize the use of resources in a world with increasing scarcity and concern for
sustainability. Business management is, therefore, perfectly placed within the individuals and societies subject area:
aiming to develop in students an appreciation both for our individuality and our collective purposes.
The Diploma Program business management course is designed to develop students’ knowledge and understanding of
business management theories, as well as their ability to apply a range of tools and techniques. Students learn to
analyze, discuss and evaluate business activities at local, national and international levels. The course covers a range of
organizations from all sectors, as well as the socio-cultural and economic contexts in which those organizations operate.
Emphasis is placed on strategic decision-making and the operational business functions of human resource
management, finance and accounts, marketing and operations management. Links between the topics are central to the
course, as this integration promotes a holistic overview of business management. Through the exploration of six
concepts underpinning the subject (change, culture, ethics, globalization, innovation and strategy), the business
management course allows students to develop their understanding of interdisciplinary concepts from a business
management perspective.
The course encourages the appreciation of the ethical concerns, as well as issues of corporate social responsibility (CSR),
at both a local and global level. Through the study of topics such as human resource management, organizational growth
and business strategy, the course aims to develop transferable skills relevant to today’s students. These include the
ability to: think critically; make ethically sound and well-informed decisions; appreciate the pace, nature and significance
of change, think strategically; and undertake long term planning, analysis and evaluation. The course also develops
subject-specific skills, such as financial analysis.
3Approaches to Learning IB BM
Illustrated with a triangular diagram, concepts are anchored in the tools, techniques and theories of the subject and
come alive through case studies and examples. Together, these help students to acquire a holistic and integrated
understanding of business management.
Concepts
(Change, culture, ethics, globalization,
innovation, strategy)
Contexts Content
(Case studies and examples) (Business management tools, techniques
and theories in the syllabus)
4Concepts
Concept Understanding in relation to the course Example of context that allows for the exploration of
concepts
Change Competition, new technologies and markets, and Organizational objectives
trends in consumer behavior lead business Functions and evolution of human resource
organizations to adapt their objectives, strategies management
and operations. Organizational structure
Sources of finance
Success emerges from the ability to research and Cash flow
respond to signals in both the internal and external Marketing planning
environment. Sales forecasting
Market research
Research and development
Crisis management and contingency
planning
Culture Every organization operates in a range of Types of organization
environments in which its role may be interpreted Growth and development
differently. These expectations affect planning, Leadership and management
decision making and strategy implementation. Motivation
Organizational culture
Within an organization, values and backgrounds Industrial relations
influence what stakeholders focus on and how Marketing planning
they work. International marketing
Lean production and managing quality
Location
Ethics Every business decision has moral implications. Introduction to business management
Types of organization
These consequences can be significant for internal Organizational objectives
and external stakeholders and the natural Stakeholders
environment. External environment
Leadership and management
Final accounts
The role of marketing
Globalization A wide range of international forces (such as Stakeholders
increasing social, cultural, technological and External environment
economic integration) influence business Growth and evolution
organizations. In turn, business organizations Functions and evolution of human resource
shape these forces. management
Organizational structure
Many business organizations operate across Organizational culture
national boundaries. Even local businesses and International marketing
consumers are influenced by global forces. E-commerce
Location
5Innovation Incremental or radical improvements to a business External environment
idea, or the generation of new ideas in relation to a Growth and evolution
final product, service or process, are the result of Leadership and management
internal or external influences. Organizational culture
For many business organizations, a key challenge is Sources of finance
bringing in “the new” and managing the process of Investment appraisal
improvement in a sustainable way. Market research
Lean production and managing quality
Research and development
Strategy Strategy refers to the significant long-term Organizational objectives
planning decisions that organizations make in Growth and evolution
order to meet the needs and wants of their Organizational planning tools
stakeholders. Organizational structure
Leadership and management
Strategy is about asking questions: what, why, Final accounts
when, how, where and who? Investment appraisal
Market research
The role of operations management
Research and development
6CUEGIS
MOST important part of assessment is your writing structure.
USE IA or EE business.
The 6 concepts have been incorporated into your Paper 2 exam, question C which is a 20 mark essay. Here you will have
to discuss two concepts in relation to a real world organization of your choice. Therefore, you must understand the
concepts and also have knowledge of real world examples and case studies. I will of course provide some examples in
lessons, but there is also further emphasis on you now, as the learner, to take the initiative and keep up to date on the
dynamic nature of business around you. A key task will be to understand how different theories that you learn (content)
fit into each applicable concept, through a case study (context). In other words, you must be able to recognize and pick
out relevant points made considering the concepts, and discuss these based on syllabus content, supported by evidence
from the context of the case.
The CUEGIS Essay in short
Paper 2 HL/SL, Section C
• The principal focus of questions in this section is on the concepts of change, culture, ethics, globalization, innovation
and strategy that underpin the business management course.
• While the principal focus for each question is on two of the concepts, students need to draw on their knowledge of
other relevant topics in the syllabus.
• There is no stimulus material provided for the questions.
• Students are required to address the question in relation to one real-world organization but may use information from
a range of sources, which may include real-world case studies examined in class and IA research. The real-world
organization that students use in their response must not be the case study organization featured in paper 1.
• The response should consider the perspectives of individuals and societies upon which the real-world organization
impacts.
• Students answer one extended response question from a choice of three.
• Assessment objective level 3 (AO3) command terms is used in each question.
• Each question hence requires: knowledge and understanding (AO1); application and analysis (AO2); synthesis and
evaluation (AO3); and a variety of appropriate skills (real-world organization knowledge).
• Section C is worth a total of 20 marks. Marks are allocated using assessment criteria.
7The meaning of the CUEGIS concepts
Change: reflecting the greater speed with which decisions need to be made and circumstances change in the operating
environment of most businesses.
Due to the conflicting forces, change must be managed within organisations if they are to move forward and remain
competitive. The relative strength of these forces determines whether the change should take place. Force-field analysis
is a popular management tool to aid this process. It acts as a framework for helping managers to understand the
pressures for and against any change. By identifying these forces, managers are able to assess the effects that the forces
may have. Managers can then plan to strengthen the forces supporting a decision for change, and reduce the impacts of
opposition to change.
Consider the following example. For generations, Kodak was synonymous with photography. Founded in 1889, the
company was one of the best-known brands of the twentieth century. However, with the rise of digital cameras, the
market for camera films (dominated by Kodak) died a pretty quick death. Kodak, however, ignored the change, having
expanded its global workforce and increased production of the old technology. By 2006 it was selling an obsolete
product, and in 2013 the company filed for bankruptcy protection.
Culture: appreciating that businesses need to align a broad spectrum of individual, collective and societal goals.
Culture is the values, beliefs and norms of an organisation, country or other social grouping. It shapes the customs of
people and how things get done. Culture-related questions relevant to the IB business management course include:
What are the cultural norms in your country regarding women’s rights in the workplace? What does ‘equal
opportunities’ mean in your country? How is this translated in the workplace? What does ‘inequality’ mean? How
important is business etiquette in your country? What about in other countries?
Language is an integral part of culture. Even countries that share a common language (such as Australia and the USA)
have cultural differences embedded in their language.
Ethics: emphasizing the fact that the ethical considerations businesses face are substantial and near all pervasive,
instead of being peripheral and isolatable.
Ethics are the socially accepted moral principles that guide decision making, based on the collective belief of what is
right and what is wrong. The rather subjective nature of ethics means it is sometimes unclear what is ‘right’ or ‘wrong’,
especially when looking at an issue from the perspective of various cultures. Consider the examples below: Is it morally
acceptable for a business to fabricate its financial accounts if this prevents mass job losses?
Is it possible to ensure equity and equality in the workplace? Is it acceptable for a business to monitor the online
activities of employees, e.g. their e-mail correspondence? Can it ever be morally acceptable to take credit for the work
of others? Can acting unethically ever be ‘good’ for a business? Does acting ethically hinder the profitability of an
organisation?
Globalization: reflecting the interconnected patterns of production and consumption shaped by businesses and affecting
them.
Globalisation provides both opportunities and threats for businesses. Consider these examples: Globalisation
considerably increases the level of competition, such as Vodafone (UK) competing with mobile operator 3, owned by
Hutchison Telecom (Hong Kong). Meeting customer expectations and needs becomes increasingly more demanding. To
8have any competitive advantage, businesses must meet the ever-greater customer demands for quality, service, price
and after-sales care. Businesses can strive to build a global presence. Li Ka-Shing, a self-made multibillionaire and Asia’s
richest man, has a reported wealth of over $28.8 billion through the diversity of his global businesses in the property,
food, consumer electronics, telecommunications, utilities and ports industries.
Multinational companies have greater choice of location of their production facilities. For example, Apple chose to
outsource production to China due to the relatively low costs of labour and land. Mergers, acquisitions and joint
ventures allow businesses to grow at a faster pace than if they were to expand organically. For example, BMW’s joint
venture with Brilliance China Automotive in 2003 gave the German car manufacturer direct access to the lucrative
Chinese market. Multinational companies and e-commerce businesses benefit from the increased customer base that
globalisation brings. With China and India embracing globalisation, there are huge opportunities for businesses that
trade with the two most populated countries in the world.
Innovation: emphasizing the need for businesses to renew themselves in the competitive, technologically advanced
market place with increasingly sophisticated customers.
Innovation in the corporate world can empower businesses and give them competitive advantages. Many of the most
economically successful businesses and countries are ones that have an innovative corporate culture. Innovative
entrepreneurs are those who come up with and commercialise new ideas or reinvent (redefine) old ideas. In some cases,
they even create new industries, such as smartphones and tablet computers. In today’s highly unpredictable business
world, innovation can be an important strategy. Hence, the vast majority of large multinational companies are financially
committed to innovation.
Innovation can apply to all aspects of business activities, not just products. For example, innovation is integral to kaizen.
Management guru Michael Porter said that innovation is essential for the prospects of a business and for the economic
prosperity of a country. Innovation requires managers to think creatively and more holistically about their entire
business operations.
For example, many hotels and restaurants use customer feedback forms to improve their services. Schools often use
assessment data to measure student performance and to take appropriate actions for continuous improvements to
student learning.
Strategy: reflecting the importance of holistic long-term planning in an operating environment with the above attributes.
Strategy is about devising plans to achieve an organisation’s long-term goals. There are three stages to the strategic
process.
Stage 1: Strategic analysis
Determining the current position of an organisation (where is the business now?)
Most organisations strive to anticipate the future needs of their stakeholders in order to be successful. Strategic
analysis is a thorough review of an organisation’s current situation. It is concerned with examining an
organisation’s vision, mission, aims and objectives. Strategic analysis is vital for the prosperity of a business
because managers can become too focused on current needs, so fail to see the future direction of the
organisation. It can help to provide a clear framework to aid decision making and this can help to allocate
resources more effectively. It can also involve, inform and inspire those affected by the process.
9Stage 2: Strategic choice
Determining the desired future of the organisation (where does the business want to be?)
Strategic choice is concerned with generating strategic options for the organisation so it can move on. It requires
an assessment of the financial costs and benefits of the available choices and a consideration of qualitative
factors before selecting the most appropriate strategy.
Stage 3: Strategic implementation
Determining how to get the organisation to where it wants to be (how does the business get there?)
Strategic implementation is about putting the strategic choice into practice and developing the strategy.
Implementing strategy usually involves change and change management. Effective leadership is at the heart of
successful change management and strategic implementation.
The CUEGIS concepts give you a framework or structure to apply your knowledge to different contexts. You should
become familiar with them and practise applying them to your learning.
10How you work with CUEGIS during the course
Paper 2, section C of the DP business management assessment is a conceptual extended response question. You are
asked to use two of the six concepts of change, culture, ethics, globalization, strategy and innovation to discuss the
situation and issues faced by real-life organization(s) you have studied during the course, making use of business
management tools, techniques and theories.
Consequently, throughout the business management course, you need to identify real-life organizations to which these
concepts apply. For example, you can identify organizations facing a period of significant change, cultural challenges,
ethical dilemmas, issues related to globalization, strategic decisions or innovation opportunities. Although the
examination questions in paper 2, section C will ask you to discuss only two of the concepts in the context of your
chosen organization(s), you should select organizations to which several of the concepts apply so that you have flexibility
to apply your knowledge in a way required by the specifics of your chosen examination question.
After selecting an organization, you then need to study the change, culture, ethics, globalization, strategy or innovation
aspects of the case holistically: what is going on in the organization with respect to, say, cultural clashes or responses to
globalization? Researching answers through concrete events or decisions is strongly advisable. You should also think
which business management tools, techniques or theories would help you to understand the situation and issues facing
the organization better, and use these to support your analysis. Finally, you need to identify and examine what other
perspectives on the case are possible, from the viewpoint of different stakeholders within and outside the organization.
Tips:
1. Provide a definition of the concepts and the business management content given in the question.
2. Make sure you consistently demonstrate a clear link between the title question and the contents of your essay.
3. Structure your essays using an introduction, body, and conclusion. There should be fit-for-purpose paragraphs
throughout the essay.
4. Use examples of real business organizations which are up to date and link these to the essay title question.
5. You can use the same organization in your IA or an Extended Essay. Have a few real-world organizations to fall back
on.
6. Before starting the essay take time to think about most appropriate organization and consider relevant aspects of the
content.
7. Avoid generic statements and make sure your arguments are substantiated with examples and evidence.
8. Make sure you fully understand the five assessment criteria.
9. Ensure you provide reasoned judgements in your arguments. Answer the why? And give lots of explanation.
10. Knowledge of and reference to the CEO is a good way to identify an individual’s perspective.
The hardest part of the response is the TRIANGULATION between concepts, content and your business. It is
recommended that you outline in full before you start your essay, to avoid ramble. The best responses start
with real examples from businesses that link the concepts and content.
11CEASL: How to write the CUEGIS essay - CEASL
Before you start your essay, it is worthwhile doing a quick plan. Simply having paragraphs in an essay does not mean
that your ideas flow well. Criterion D (structure) requires you to write “fit-for-purpose” paragraphs. This means that
you must write with clarity, with each paragraph clearly addressing the essay question.
To score maximum marks, you must have:
1. An introduction to the essay
2. A main body (with around 3 or 4 paragraphs)
3. A conclusion
4. Fit for purpose paragraphs (clear ideas that allow flow of arguments)
1. Introduction
Define the concepts.
Define the key terms/content.
Explain the business (some general background information)
2. Main body – 3 paragraphs ideal. Apply ‘CEASL’ to each paragraph and use this format for each paragraph:
Make your CLAIM or main point. Use examples/scenarios from the business that link the concept and content.
Relevant concept
Relevant content
STAKEHOLDERS (individuals or group)
ANALYSIS (balanced) …answer why to your claim triangulating all of your evidence. Give advantages and
disadvantages.
3. LINK
Make sure you answer the question explicitly, justifying your answer based on the points made in the main
body.
Summary of your main points.
Final view (substantiated)
12IBO examples of CUEGIS essay questions
With reference to one or two organization(s) that you have studied, discuss how marketing strategies may
differ in two cultures that you are familiar with.
With reference to one organization that you have studied, examine what changes globalization brings about in
the management of human resources.
With reference to one organization you have studied, compare and contrast the importance of innovation and
ethics for Research and Development (R&D).
With reference to one or two organizations that you have studied, evaluate different strategies businesses can
adopt to respond to issues of globalization.
With reference to one organization that you have studied, discuss the importance of innovation and of ethics in
marketing.
BUSINESS EXAMPLES
Examples of Businesses you might choose:
Emirates
Amazon
Uber
Facebook
Starbucks
McDonalds
KFC
You need to choose a business that has a range of issues that can exemplify the concepts required and then be applied
to a business function, such as Marketing, HRM, or Accounts and Finance.
13Overview CUEGIS Learning outcomes
Unit Sub-unit of the CUEGIS Learning outcome
syllabus
C U E G I S
1. Business 1.3 Organizational The need for organizations to change objectives and √ √
organization and objectives innovate in response to changes in internal and external
environment (BO1) environments
1.5 External Consequences of a change in any of the STEEPLE factors for √ √
environment a business’s objectives and strategy
(BO2)
1.6 Growth and The role and impact of globalization on the growth and √ √
evolution evolution (change) of businesses
(BO3)
2. Human resources 2.1 Functions and How innovation, ethical considerations and cultural √ √ √ √
evolution of human differences may influence human resource practices and
resource management strategies in an organization
(HR1)
2.2 Organizational How cultural differences and innovation in communication √ √
structures technologies may impact on
(HR2) communication in an organization
2.3 Leadership and How ethical considerations and cultural differences may √ √
management influence leadership and management styles in
(HR3) an organization
2.6 How innovation, ethical considerations and cultural √ √ √
Industrial/employee differences may influence employer–employee relations in
relations (HL only) an organization
(HR4)
4. Marketing 4.1 The role of How innovation, ethical considerations and cultural √ √ √ √
marketing differences may influence marketing practices and
(M1) strategies in an organization
4.5 The four Ps The impact of changing technology (innovation) on √ √
(product, price, promotional strategies (such as viral marketing, social
promotion, place) media marketing and social networking)
(M2)
4.7 International The strategic and operational implications of, the role of √ √ √
marketing (HL only) cultural differences in, and the implications of globalization
(M3) on, international marketing (AO3).
5. Operations 5.1 The role of Operations management strategies and practices for √ √
management operations ecological, social (human resource) and economic
management sustainability (ethics)
(OM1)
5.6 Research and How pace of change in an industry, organizational culture √ √ √ √
Development (HL and ethical considerations may influence research and
only) development practices and
(OM2) strategies in an organization
14Assessment matrix - KARSI
Marks Criterion A: KNOWLEDGE and conceptual understanding.
0 The work does not reach a standard described by the descriptors below.
1 Superficial knowledge of the given concepts is demonstrated. Business management content is not selected
or the content selected is irrelevant.
2 Satisfactory understanding of one or both of the given concepts is demonstrated. Some business
management content selected is relevant. The relevant content is satisfactorily explained.
3 Good understanding of one or both of the given concepts is demonstrated. The business management
content selected is relevant, though it may not be sufficient. The relevant content is generally well explained,
though the explanation may lack some depth or breadth.
4 Good understanding of both of the given concepts is demonstrated. The business management content
selected is relevant, sufficient and well explained.
Marks Criterion B: APPLICATION
0 The work does not reach a standard described by the descriptors below.
1 The given concepts and/or any relevant business management content are connected to the real-world
organization(s), but this connection is inappropriate or superficial.
2 The given concepts and/or relevant business management content are connected appropriately to the real-
world organization(s), but this connection is not developed.
3 The given concepts and relevant business management content are generally well applied to explain the
situation and issues of the real-world organization(s), though the explanation may lack some depth or
breadth. Examples are provided.
4 The given concepts and relevant business management content are well applied to explain the situation and
issues of the real-world organization(s). Examples are appropriate.
Marks Criterion C: REASONED ARGUMENTS
0 The work does not reach a standard described by the descriptors below.
1 Statements are made but these are superficial.
2 Relevant arguments are made but these are mostly unjustified.
3 Relevant arguments are made and these are mostly justified.
4 Relevant, balanced arguments are made and these are well justified.
Marks Criterion D: STRUCTURE
0 The work does not reach a standard described by the descriptors below.
1 Two or fewer of the structural elements are present, and few ideas are clearly organized.
2 Three of the structural elements are present, or most ideas are clearly organized.
3 Three or four of the structural elements are present, and most ideas are clearly organized.
4 All of the structural elements are present, and ideas are clearly organized.
Marks Criterion E: INDIVIDUALS AND SOCIETIES
0 The work does not reach a standard described by the descriptors below.
1 One individual or group perspective is considered superficially or inappropriately.
2 One relevant individual or group perspective is considered appropriately, or two relevant individual or group
perspectives are considered superficially or inappropriately.
3 At least two relevant individual or group perspectives are considered appropriately.
4 Balanced consideration is given to relevant individual and group perspectives.
Total
Max 20
15Syllabus Outline
Unit 1: Business organization and environment
↙ 1.1 Introduction to business management
The role of businesses in combining human, physical and financial resources to create goods and services.
Inputs
Outputs
Processes of a business
The main business functions and their roles:
Human resources
Finance and accounts
Marketing
Operations
Primary, secondary, tertiary and quaternary sectors
The nature of business activity in each sector and the impact of sectoral change on business activity
The role of entrepreneurship (and entrepreneur) and intrapreneurship (and intraperneur) in overall business activity
Reasons for starting up a business or enterprise and finding a market opportunity
Common steps in the process of starting up a business or an enterprise
Problems that a new business or enterprise may face
The elements of a business plan
↙ 1.2 Types of organizations
Distinction between the private and public sectors
The main features of the following types of for-profit (commercial) organizations:
Sole traders
Partnerships
Companies/corporations
The main featured of the following types of for-profit social enterprises:
Cooperatives
Microfinance providers
Public-private partnerships (PPP)
The main features of the following types of non-profit social enterprises:
Non-governmental organizations (NGOs)
Charities
↙ 1.3 Organizational objectives
Vision statement and mission statement
Aims, objectives, strategies and tactics, and their relationships
The need for organizations to change objectives and innovative in response to changes in internal and external
environments
Ethical objectives and corporate social responsibility (CSR)
The reasons why organizations set ethical objectives and the impact of implementing them
The evolving role and nature of CSR
SWOT analysis of a given organization
Ansoff matrix for different growth strategies of a given organization
16↙ 1.4 Stakeholders
The interests of internal stakeholders
Employees
Managers
Shareholders
The interests of external stakeholders
Suppliers
Customers
Special Interest Groups
Competitors
Possible areas of mutual benefit and conflict between stakeholders’ interests
↙ 1.5 External environment
STEEPLE analysis of a given organization
Consequences of a change in any of the STEEPLE factors for a business’s objectives and strategy
↙ 1.6 Growth and evolution
Economies and diseconomies of scale
The merits of small versus large organizations
The difference between internal and external growth
The following external growth methods
Mergers and acquisitions (M&As) and takeovers
Joint ventures
Strategic alliances
Franchising
The role and impact of globalization on the growth and evolution of businesses
Reasons for the growth of multinational companies (MNCs)
The impact of MNCs on the host countries
↙ 1.7 Organizational planning tools (HL)
The following planning tools in a decision making process:
Fishbone diagram
Scientific versus intuitive decision making process
Decision tree
Force field analysis
Gantt chart
17Unit 2: Human Resource Management
↙ 2.1 Functions and evolution of human resources management.
Human resource planning (workforce planning)
Labor turnover
Internal and external factors that influence human resource planning (such as demographic change, change in labor
mobility, new communication technologies)
Common steps in the process of recruitment
Following types of training:
On the job (induction and mentoring)
Off the job
Cognitive
Behavioral
The following types of appraisals:
Formative
Summative
360 degree feedback
Self-appraisal
Common steps in the process of dismissal and redundancy
How work patterns, practices and preferences change and how they affect the employer and employees (teleworking,
flextime, migration for work)
Outsourcing, off shoring and re-shoring as human resource strategies.
How innovation, ethical considerations and cultural differences may influence human resource practices and strategies in
an organization.
↙ 2.2 Organizational structure
The following terminology to facilitate understanding of different types of organizational structures:
Delegation
Span of control
Levels of hierarchy
Chain of command
Bureaucracy
Centralization
Decentralization
De-layering
The following types of organizational charts:
Flat/horizontal
Tall/vertical
Hierarchical
By product
By function
By region
Changes in organizational structures (such as project based organization, Handy’s Shamrock Org)
How cultural differences and innovation in communication technologies may impact on communication in an organization.
↙ 2.3 Leadership and management
They key functions of management
Management versus leadership
The following leadership styles
Autocratic
Paternalistic
Democratic
Laissez-faire
Situational
How ethical considerations and cultural differences may influence leadership and management styles in an organization.
18↙ 2.4 Motivation
The following motivation theories:
Taylor
Maslow
Herzberg (motivation – hygiene theory)
Adams (equity theory)
Pink
The following types of financial rewards:
Salary
Wage (time and piece rates)
Commission
Profit related pay
Performance related pay
Employee share ownership schemes
Fringe payment (perks)
The following types of non-financial rewards:
Job enrichment
Job rotation
Job enlargement
Empowerment
Purpose to make a difference
Teamwork
How financial and non-financial rewards may affect job satisfaction, motivation and productivity in different cultures.
19Unit 3: Accounts and Finance
↙ 3.1 Sources of finance
Role of finance for business:
Capital expenditure
Revenue expenditure
The following internal sources of finance:
Personal funds (for sole traders)
Retained profit
Sale of assets
The following external sources of finance:
Share capital
Loan capital
Overdrafts
Trade credit
Grants
Subsidies
Debt factoring
Leasing
Venture capital
Business angels
Short, medium and long term finance
The appropriateness, advantage and disadvantages of sources of finance for a given situation
↙ 3.2 Costs and revenues
The following types of cost, using examples:
Fixed
Variable
Semi-variable
Direct
Indirect/overhead
Total revenue and revenue streams, using examples.
↙ 3.3 Break-even analysis
Total contribution versus contribution per unit
A break even chart and the following aspects of break-even analysis:
Break even quantity/point
Profit or loss
Margin of safety
Target profit output
Target profit
Target price
The effects of changes in price or cost on the break-even quantity, profit and margin of safety, using graphical and
quantitative methods.
The benefits and limitations of break-even analysis
↙ 3.4 Final accounts
The purpose of accounts to different stakeholders
The principles and ethics of accounting practice
Final accounts:
Profit and Loss Account (Income statements) – trading account, P/L account, Appropriation Account
Balance Sheet
Different types of intangible assets
20↙ 3.5 Profitability and liquidity ratio analysis
Profitability and efficiency ratios:
Gross Profit margin
Net profit margin
ROCE
Possible strategies to improve these ratios
Liquidity ratios:
Current
Acid-test/quick
Strategies to improve these ratios
↙ 3.7 Cash flow
Difference between profit and cash flow
Working capital cycle (cash flow cycle)
Cash flow forecasts
The relationship between investment, profit and cash flow
Strategies for dealing with cash flow problems:
Reducing cash outflow
Improving cash inflows
Looking for additional finance
↙ 3.8 Investment Appraisal
Investment opportunities using payback period and average rate of return (ARR)
21Unit 4: Marketing
↙ 4.1 The role of marketing
Marketing and its relationship with other business functions.
Differences between marketing of goods and services
Market orientation versus product orientation
Difference between commercial marketing and social marketing
Characteristics of the market in which an organization operates
Market share
The importance of market share and market leadership
Marketing objectives of for profit organizations and nonprofit organizations
How marketing strategies evolve as a response to change in customer preferences
How innovation, ethical considerations and cultural differences may influence marketing practices and strategies in an
organization
↙ 4.2 Marketing planning
Elements of a marketing plan
Role of marketing planning
Four P’s of marketing mix
Appropriate marketing mix for a particular product or business
Effectiveness of a marketing mix in achieving marketing objectives
Difference between target markets and market segments
Possible target markets and market segments in a given situation
Difference between niche market and mass market
How organizations target and segment their market and create consumer profiles
Product position map
Importance of having a unique selling point/proposition (USP)
How organizations can differentiate themselves and products from competitors
↙ 4.4 Market research
Why and how organizations carry out market research
Following methods/techniques of primary market research:
Surveys
Interviews
Focus groups
Observations
Following methods/techniques of secondary market research:
Market analysis
Academic journals
Government publications
Media articles
Ethical considerations of market research
The difference between qualitative and quantitative research
Following methods/techniques of secondary market research:
Quota
Random
Stratified
Cluster
Snowballing
Convenience
Results from data collection
22↙ 4.5 The four P’s
PRODUCT
The product life cycle
Relationship between the product life cycle and the marketing mix
Extension strategies
Relationship between product life cycle, investment, profit and cash flow
Boston Consulting Group (BCG) matrix on an organization’s products
Branding:
Awareness
Development
Loyalty
Value
Importance of Branding
Importance of Packaging
PRICE
NEW - Appropriateness of the following pricing strategies:
Cost – plus (mark up)
Penetration
Skimming
Psychological
Loss leader
Price discrimination
Price leadership
Predatory
PROMOTION
The following aspects of promotion:
Above the line promotion
Below the line promotion
Promotional mix
Impact of changing technology on promotional strategies (such as viral marketing, social media and social networking)
Guerrilla marketing and its effectiveness as a promotional method.
PLACE
Importance of place in marketing mix
Effectiveness of different types of distribution channels
↙ 4.8 E-commerce
Features of e-commerce
Effects of changing technology and e-commerce on the marketing mix
Difference between types of e-commerce:
Business to business (B2B)
Business to consumer (B2C)
Consumer to consumer (C2C)
Costs and benefits of e-commerce to firms and consumers
23Unit 5: Operations Management
↙ 5.1 The role of operations management
Operations management and its relationship with other business functions
Operations management in organizations producing goods and/or services
Operations management strategies and practices for ecological, social (human resources) and economic sustainability
↙ 5.2 Production Methods
The following production methods:
Job/customized production
Batch production
Mass/flow process production
Cellular manufacturing
Most appropriate method of production for a given situation
↙ 5.4 Location
The reasons for a specific location of production
Impact of globalization on location
The following ways of re-organizing production, both nationally and internationally :
Outsourcing/subcontracting
Offshoring
Insourcing
24Command Terms
Assessment objective Key command term Depth
AO1 Define These terms require students to learn and
Demonstrate knowledge and Describe comprehend the meaning of information.
understanding Outline
State
AO2 Analyze These terms require students to use their
Demonstrate application and analysis of Apply knowledge and skills to break down ideas into
knowledge and understanding Comment simpler parts and to see how the parts relate.
Demonstrate
Distinguish
Explain
Interpret
Suggest
AO3 Compare These terms require students to rearrange
Demonstrate synthesis Compare and contrast component ideas into a new whole and make
Contrast judgments based on evidence or a set of criteria.
Discuss
Evaluate
Examine
Justify
Recommend
To what extent
AO4 Annotate These terms require students to demonstrate the
Demonstrate a variety of appropriate Calculate selection and use of subject-specific skills and
skills Complete techniques.
Construct
Determine
Draw
Indentify
Label
Plot
Prepare
25Glossary of terms
Command Assessment Definition
term level
Analyze AO2 Break down in order to bring out the essential elements or structure.
Annotate AO4 Add brief notes to a diagram or graph.
Apply AO2 Use an idea, equation, principle, theory or law in relation to a given problem or issue.
Calculate AO4 Obtain a numerical answer showing the relevant stages in the working.
Comment AO2 Give a judgment based on a given statement or result of a calculation.
Compare AO3 Give an account of the similarities between two (or more) items or situations, referring
to both (all) of them throughout.
Compare and AO3 Give an account of similarities and differences between two (or more) items or
contrast situations, referring to both (all) of them throughout.
Complete AO4 Add missing information/date.
Construct AO4 Display information in a diagrammatic or logical form.
Contrast AO3 Give an account of the differences between two (or more) items or situations, referring
to both (all) of them throughout.
Define AO1 Give the precise meaning of a word, phrase, concept or physical quantity.
Demonstrate AO2 Make clear by reasoning or evidence, illustrating with examples or practical application.
Describe AO1 Give a detailed account.
Determine AO4 Obtain the only possible answer.
Discuss AO3 Offer a considered and balanced review that includes a range of arguments, factors, or
hypotheses. Opinions or conclusions should be presented clearly and supported by
appropriate evidence.
Distinguish AO2 Make clear the differences between two or more concepts or items.
Draw AO4 Represent by means of a labelled, accurate diagram or graph using a pencil. A ruler
should be used for straight lines. Diagrams should be drawn to scale and points plotted
and joined in a straight line or smooth curve.
Evaluate AO3 Make an appraisal by weighing up the strengths and limitations.
Examine AO3 Consider an argument or concept in a way that uncovers the assumptions and
interrelationships of the issue.
Explain AO2 Give a detailed account including reasons or causes.
Identify AO4 Provide an answer from a number of possibilities.
Interpret AO2 Use knowledge and understanding to recognize trends and draw conclusions from given
information.
Justify AO3 Give valid reasons or evidence to support an answer or conclusion.
Label AO4 Add labels to a diagram.
Outline AO1 Give a brief account or summary.
Recommend AO3 Present an advisable course of action with appropriate supporting evidence/reason in
relation to a given situation, problem or issue.
Plot AO4 Mark the position of points on a diagram.
Prepare AO4 Put given date or information from a stimulus/source into a suitable format.
State AO1 Give a specific name, value or other brief answer without explanation or calculation.
Suggest AO2 Propose a solution, hypothesis or possible answer.
To what extent AO3 Consider the merits or otherwise of an argument or concept. Opinions and conclusions
should be presented clearly and supported with appropriate evidence and sound
argument.
26Assessment Outline SL
Assessment Component Weight
External assessment (3 hours total) 75%
Paper 1 ( 1 hour and 15 minutes) 35%
Based on case study issued in advance, with additional unseen material included in section B.
Students assessed on ALL syllabus content.
Section A – Answer two of three structured questions (20 marks)
Section B – Answer one compulsory question. (20 marks)
Paper 2 (1 hour and 45 minutes)
Students assessed on ALL syllabus content. 40%
Section A – Answer one of two structured questions with quantitative element (10 marks)
Section B – Answer one of three structured questions (20 marks)
Section C – CUEGIS response (20 marks)
Internal assessment (15 teaching hours total) 25%
This component is internally assessed by the teacher and externally moderated by the IB at the
end of the course.
Written commentary based on three to five supporting documents about a real issue or problem
facing a particular organization (Maximum 1500 words) ( 25 marks)
27IA SL GUIDE
The internal assessment, or written commentary, will count for 25% of both your IB score and class grade. Students
need to demonstrate the application of business and management tools, techniques and theories to a real business
issue or problem. Students must select a real issue or problem, not a fictional one, and must produce a commentary
with a title presented as a question. The commentary must refer directly to a single business organization, but may
consider industry-wide issues that impact the organization. The commentary must be based on primary and/or
secondary data, selected for its suitability, depth, and breadth.
Nuts and Bolts
The written commentary weights 25% of your IB score and class grade.
Approximately 15 hours should be allocated to written commentary
Demonstrate application of business and management tools, techniques and theories to a real (not fictional)
business issue or problem.
Title presented as a question – commentary will answer question.
Refer directly to a single business organization
Commentary based on secondary research, selected for suitability. Primary research can be used as support.
Page #’s
1500 words maximum
Must provide two hard copies
Should include tables and/or graphs
Must attach three to five supporting documents to commentary, from which the majority of the information has
been obtained. Additional sources must be referenced but not accepted as supporting document. Students
should label the supporting documents clearly, such as “Supporting Document 1”, etc.
Students must highlight the parts of each supporting document that relate directly to their commentary.
Must produce a bibliography, with in text citations in MLA format. All sources of information must be
provided.
Based on primary and or secondary data written within last 2 years.
Your question doesn’t have to be forward thinking,
Secondary Sources might include: Primary sources might include:
Articles from local, national, or internal press Responses to questionnaires (students should
Financial reports include a blank copy of the questionnaire and a
Business accounts tally/summary of results)
Business plan Transcripts of interviews and discussions with
Extracts from company website focus groups
Mission statements Results of surveys
Web-based surveys
Extracts from company web sites
Government and other statistics
Academic publications
Market research surveys
28Concept Testing
After your teacher has introduced the coursework then you need to think about a suitable topic. You will log your
concept ideas in the Brainstorming section.
The following points have all caused problems in the past:
Your decision has to involve a real company.
Your decision has to be current- you cannot take a decision that has already been made by the company and
write a report on it. It does not HAVE to be forward thinking though.
Your paper needs to comment/answer your question, which is based on your supporting documents.
Your decision has to be answerable within 1500 words- don’t choose a ‘big’ decision, keep it simple and
straightforward.
Your decision must not be descriptive. Avoid questions beginning with ‘how’ instead aim for ‘should’
It is not possible to score highly on criteria ‘A’ unless the supporting documents provide a range of views, are linked to
your question, and show some depth of understanding.
You will need to answer a question (the title of the commentary), so make sure your title is phrased in such a way that it
allows you to answer it AND to back that answer up.
29Research/Data
The SL IA is a commentary based on research. You should have an array of sources in front of you and then you use
these sources to answer a question. Your IA is based primarily on secondary research, however primary research will
help support your recommendation and if done correctly help you receive the highest mark. In order to receive full
marks on sources, you must have a minimum of 3 sources and they need to provide a range of views. Therefore, DO
NOT have all of your sources from within the business you are researching. Look at industry trends, competition, and
analyst predictions.
Your supporting documents have to be up to date. They have to be written within three years of submission date.
For example, IA’s due in March 2018 must have been published after March 2015.
Use of data
Your data has to be useful, that is it must be linked to a particular business technique from the course content. There is
no point in collecting company accounts unless you will use them appropriately. In fact you will lose marks if you include
unnecessary or irrelevant data.
The first thing then is refer back to your theoretical framework and decide how to apply the data you will collect to your
chosen theories. Here are some of the possible business techniques used in the past.
Decision making Model Ratio Analysis Forecasting Decision Trees
Statistics Networking TQM SWOT Analysis
Marketing Models Budgeting FFA PEST Analysis
Investment Appraisal Motivational Theory Ishikawa Fishbone BCG Matrix
CPA GANTT Charts Leadership Theory Surveying and Sampling
Ansoff Matrix Channels of Distribution Communication Theory Techniques
Organizational Charts Benchmarking
Reliability of the data
One of the biggest mistakes a student can make is to rely on only one source of data. This makes the data- and your
analysis- invalid.
Arranging the data
You need to consider what forms of presentation you will want to use. Some common types are set out below.
Maps Tables Calculations Accounts
Pie Charts Histograms Bar Charts Organizational Charts
Excerpts Quotations Articles Interview Transcripts
Diagrams Venn Diagrams Flow Diagrams Mind Maps
You could also be accused of plagiarism if you do not source all the data. Students can lose their IB Diploma if they
don’t source correctly because it is academic dishonesty.
30Referencing the data
The Works Cited: this is a list of all the sources you have used in your report. They should be referenced in MLA
format, with in text citations. This list does not have to be extensive- in fact much better than a long list meant
to impress. You should have at least five sources though to receive the highest mark. Do not include sources
that may have helped you but that you didn’t use.
The Appendix- The appendices is where your photocopy and highlight your supporting documents. Please label
the supporting documents numerically. You might also add material that would otherwise destroy the flow of
your argument (PEST, SWOT, sample questionnaires or company accounts). IB is not impressed with students
who try and beat the word limit by dumping huge tracts of materials in the appendices.
I expect your Works Cited to be in MLA format and I STRONGLY suggest that you manage your citations in Word and
organize and insert as you work.
31Writing the First Draft
Although there is no mandatory format for the written commentary, the following is a suggested format that might help
students organize their work.
Use this as a Big Picture Overview
Title (in the form of a question)
Introduction (including a description of methodology)
Findings (based on the supporting documents)
Analysis of the findings
Conclusion(s)
Bibliography and references
Appendices: supporting documents
Once you have outlined your conflict (phrased as a question) and your background information, data and solution, you
can outline the section of your paper. It is recommended that you write your commentary in the form of a Business
Plan. This proves your understanding of the content, is an easy to read, succinct and organized way to process your
solution. The following sections are recommended for your paper. Based on your business and scenario, you may also
choose to incorporate other sections.
1. Title page
Formed as a question, includes name, Candidate number and Word Count
2. Contents Page
Major headings in the report, beginning with the executive summary. Page numbers should be clearly
indicated.
3. Executive Summary (write last)
Provides a review of the document as a whole, outlining conclusions drawn and recommendations
made. Together with the title, the executive summary should provide a clear overview of the document.
Is included in word count.
4. Company Description
This portion of your commentary will vary based on your company and conflict. You might choose to
address a handful of the following portions of a traditional plan. You should be providing background
information, details of the company, leading up to the conflict you are addressing. Should be citing
specific data and research found in your appendix.
Product/service
Industrial overview
Management/ leadership
Operations
Marketing Mix analysis
Finances
SWOT (here or below)
5. Situational Analysis or Findings (challenge)
Gives big picture implications and details of the business’ problem/conflict at hand. Presents the conflict and
consequences. Include data and support and your citations. This involves interpreting the results and findings
clearly and succinctly. Candidates should identify the main issues emerging from the research and explain their
significance. The discussion should be sequenced and coherent. It should be carefully referenced. The purpose
is to clarify what the raw data has revealed. This should include a summary of the data collected and findings,
and should, where appropriate, be supported by tables, graphs and statistics.
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