Mrs. Rumsey's Guide to IB Business Management 2017-2018

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Mrs. Rumsey's Guide to IB Business Management 2017-2018
Mrs. Rumsey's
    Guide to IB
Business Management
    2017-2018

                      1
Table 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

                                                                                                                                    2
Business 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.

                                                                                                                              3
Approaches 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)

                                                                                                                        4
Concepts
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

                                                                                                                               5
Innovation   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

                                                                                                                6
CUEGIS
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.

                                                                                                                              7
The 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

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have 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.

                                                                                                                               9
Stage 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.

                                                                                                                       10
How 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.

                                                                                                                           11
CEASL: 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)

                                                                                                                         12
IBO 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.

                                                                                                                    13
Overview 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

                                                                                                                                    14
Assessment 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

                                                                                                                       15
Syllabus 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

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Unit 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.

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↙   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.

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Unit 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

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↙   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)

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Unit 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

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↙   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

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Unit 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

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Command 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

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Glossary 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.

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Assessment 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)

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IA 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
  

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Concept 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.

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Research/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.

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Referencing 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.

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Writing 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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