mrs. rumsey's guide to ib business management 2017-2018

1

Mrs. Rumsey's

Guide to IB

Business Management

2017-2018

2

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

3

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.

4

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

(Case studies and examples)

Content

(Business management tools, techniques

and theories in the syllabus)

5

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 trends in consumer behavior lead business organizations to adapt their objectives, strategies and operations. Success emerges from the ability to research and respond to signals in both the internal and external environment.

Organizational objectives

Functions and evolution of human resource management

Organizational structure

Sources of finance

Cash flow

Marketing planning

Sales forecasting

Market research

Research and development

Crisis management and contingency planning

Culture Every organization operates in a range of environments in which its role may be interpreted differently. These expectations affect planning, decision making and strategy implementation. Within an organization, values and backgrounds influence what stakeholders focus on and how they work.

Types of organization

Growth and development

Leadership and management

Motivation

Organizational culture

Industrial relations

Marketing planning

International marketing

Lean production and managing quality

Location

Ethics Every business decision has moral implications. These consequences can be significant for internal and external stakeholders and the natural environment.

Introduction to business management

Types of organization


Stakeholders

External environment


Final accounts

The role of marketing

Globalization A wide range of international forces (such as increasing social, cultural, technological and economic integration) influence business organizations. In turn, business organizations shape these forces. Many business organizations operate across national boundaries. Even local businesses and consumers are influenced by global forces.

Stakeholders


Growth and evolution

Functions and evolution of human resource management



International marketing

E-commerce

Location

6

Innovation Incremental or radical improvements to a business idea, or the generation of new ideas in relation to a final product, service or process, are the result of internal or external influences. For many business organizations, a key challenge is bringing in “the new” and managing the process of improvement in a sustainable way.





Sources of finance

Investment appraisal

Market research

Lean production and managing quality


Strategy Strategy refers to the significant long-term planning decisions that organizations make in order to meet the needs and wants of their stakeholders. Strategy is about asking questions: what, why, when, how, where and who?



Organizational planning tools



Final accounts

Investment appraisal

Market research

The role of operations management


7

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.

8

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

9

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.

10

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.

11

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.

12

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)

13

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.

14

Overview CUEGIS Learning outcomes

Unit Sub-unit of the syllabus

CUEGIS Learning outcome

C U E G I S

1. Business organization and environment

1.3 Organizational objectives (BO1)

The need for organizations to change objectives and innovate in response to changes in internal and external environments

√ √

1.5 External environment (BO2)

Consequences of a change in any of the STEEPLE factors for a business’s objectives and strategy

√ √

1.6 Growth and evolution (BO3)

The role and impact of globalization on the growth and evolution (change) of businesses

√ √

2. Human resources 2.1 Functions and evolution of human resource management (HR1)

How innovation, ethical considerations and cultural differences may influence human resource practices and strategies in an organization

√ √ √ √

2.2 Organizational structures (HR2)

How cultural differences and innovation in communication technologies may impact on communication in an organization

√ √

2.3 Leadership and management (HR3)

How ethical considerations and cultural differences may influence leadership and management styles in an organization

√ √

2.6 Industrial/employee relations (HL only) (HR4)

How innovation, ethical considerations and cultural differences may influence employer–employee relations in an organization

√ √

√

4. Marketing 4.1 The role of marketing (M1)

How innovation, ethical considerations and cultural differences may influence marketing practices and strategies in an organization

√ √ √ √

4.5 The four Ps (product, price, promotion, place) (M2)

The impact of changing technology (innovation) on promotional strategies (such as viral marketing, social media marketing and social networking)

√ √

4.7 International marketing (HL only) (M3)

The strategic and operational implications of, the role of cultural differences in, and the implications of globalization on, international marketing (AO3).

√ √ √

5. Operations management

5.1 The role of operations management (OM1)

Operations management strategies and practices for ecological, social (human resource) and economic sustainability (ethics)

√ √

5.6 Research and Development (HL only) (OM2)

How pace of change in an industry, organizational culture and ethical considerations may influence research and development practices and strategies in an organization

√ √ √ √

15

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


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


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


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


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

16

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

17

↙ 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

18

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.

19

↙ 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.

20

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

21

↙ 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)

22

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

23

↙ 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

24

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

25

Command Terms

Assessment objective Key command term Depth

AO1 Demonstrate knowledge and understanding

Define Describe Outline State

These terms require students to learn and comprehend the meaning of information.

AO2 Demonstrate application and analysis of knowledge and understanding

Analyze Apply Comment Demonstrate Distinguish Explain Interpret Suggest

These terms require students to use their knowledge and skills to break down ideas into simpler parts and to see how the parts relate.

AO3 Demonstrate synthesis

Compare Compare and contrast Contrast Discuss Evaluate Examine Justify Recommend To what extent

These terms require students to rearrange component ideas into a new whole and make judgments based on evidence or a set of criteria.

AO4 Demonstrate a variety of appropriate skills

Annotate Calculate Complete Construct Determine Draw Indentify Label Plot Prepare

These terms require students to demonstrate the selection and use of subject-specific skills and techniques.

26

Glossary of terms

Command term

Assessment level

Definition

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 contrast

AO3 Give an account of similarities and differences between two (or more) items or 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.

27

Assessment Outline SL

Assessment Component Weight External assessment (3 hours total) Paper 1 ( 1 hour and 15 minutes) 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.

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)

75% 35%

40%

Internal assessment (15 teaching hours total) 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)

25%

28

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:

Articles from local, national, or internal press

Financial reports

Business accounts

Business plan

Extracts from company website

Mission statements

Web-based surveys

Extracts from company web sites

Government and other statistics

Academic publications

Market research surveys

Primary sources might include:

Responses to questionnaires (students should include a blank copy of the questionnaire and a tally/summary of results)

Transcripts of interviews and discussions with focus groups

Results of surveys

29

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.

30

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.

31

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.

32

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.

33

6. Strategic Plan or Analysis (Recommendation) The conclusions must follow from the analysis and discussion. This is not the place to introduce new facts or arguments. Conclusions are normally presented as a list of fairly brief statements. Recommendations should be precise and there should be practical proposals for action that stem from the conclusions. If the results of the research are inconclusive the candidate should recommend further research to be undertaken.

7. Conclusion Summarize your business, issues and resolution, briefly, wrapping it all up.

8. Works Cited & References

The project should contain a correctly presented bibliography acknowledging all material referred to in research. Quotations from textbooks and other sources of information should be acknowledged in the main body of the text or through the use of footnotes. Candidates should be discouraged from including inappropriate materials such a lengthy company reports.

9. Appendices These should include only relevant information that supports or emphasize what is discussed in

the report. They will include examples of photographs, documents, questionnaires, numerical raw data in tables and statistical calculations. You need to highlight information that you have used directly in your commentary.

Challenged Areas Writing the Analysis and Evaluation This is the most significant area in the whole project. It pays to get this bit right, so to help you consider the following points:

Link the analysis to your research data

Be succinct and ordered

Integrate your data, analysis and evaluation

Avoid relying too heavily on a single source (the business)

Use independent sources

Avoid unsupported generalizations

Be critical- don’t take everything for granted. Those students who complete a rough draft and get teacher feedback always perform better, as they receive a range of opinions and viewpoints. Review the final grading rubrics to see how much weight is given to your references and data. If you can fulfill these requirements then your paper will automatically represent a range of opinions and ideas. Use the data to add depth and detail to your commentary.

34

Brainstorming

Potential Written Commentary Topics – Make the ? Later

Related Business theory/practice to address

Potential Resources

Timeline

Date: To Do: Points

Dec 4th 1. Choose Business 15 points

Dec 11th 2. Brainstorm 3 issues and identify resources/references report. 15 points

Jan 15-17 3. Rumsey interview to discuss issue and solutions. Review and hand in outline for commentary

15 points

Jan 29th 4. Rough draft sections # 4,5 and 6 Due

50 points

Feb 5th OR Feb 12th

5. Final Draft Due Date 1 and 2

200 points

35

Criteria

A Supporting documents

If fewer than three supporting documents are presented, a maximum of three marks can be awarded.

Achievement

level

Descriptor


1 There are only one or two, or more than five, supporting documents, or they are of marginal relevance.

2 The supporting documents are generally relevant but some lack depth, or they were published more than three years prior to the submission of the IA to the IB, or they are not all translated in the language of submission.

3 The supporting documents are relevant and sufficient in depth.

4 The supporting documents are relevant, sufficient in depth and provide a range of ideas and views.

B Choice and application of business tools, techniques and theory

Achievement

level

Descriptor


1 There is a limited selection of business management tools, techniques and theory, and these are not applied.

2 There is a limited selection of business management tools, techniques and theory, and these are superficially applied.

3 There is an appropriate selection of business tools, techniques and theory, but these are superficially applied.

4 There is appropriate selection of business management tools, techniques and theory, and these are suitably applied.

5 There is appropriate selection of business management tools, techniques and theory, and these are skillfully applied.

C Choice and analysis of data and integration of ideas

Achievement

level

Descriptor


1 There is a limited selection of data from the supporting documents but no analysis.

2 There is a limited selection of data from the supporting documents with superficial analysis.

3 There is an appropriate selection of data from the supporting documents with satisfactory analysis.

4 There is an appropriate selection of data from the supporting documents with good analysis and some integration of ideas.

5 There is an appropriate selection of data from the supporting documents with skillful analysis and a coherent integration of ideas.

36

D Conclusions

Achievement

level

Descriptor


1 Conclusions are inconsistent with the evidence presented, or conclusions are superficial.

2 Some conclusions are consistent with the evidence presented.

3 Conclusions are consistent with the evidence presented and explicitly answer the commentary question.

E Evaluation

Achievement

level

Descriptor


1 There is limited evidence of evaluation.

2 There is evidence of evaluation, but some judgments are substantiated.

3 There is evidence of evaluation, and judgments are substantiated.

4 There is thorough evidence of evaluation, and judgments are well substantiated.

F Structure

Achievement

level

Descriptor


1 Limited structure.

2 Appropriate structure.

G Presentation

Achievement

level

Descriptor


1 One or more of the above elements of a well presented commentary is missing.

2 All of the above elements of a well presented commentary are included.

37

Current Event Summary Sheet

www.bloomberg.com www.newyorktimes.com www.fortune.com www.bbc.com www.businessweek.com www.money.com www.fool.com

Related Business:

News source:

Article Title:

Author:

Date:

1. Identify business terminology/vocabulary used in the article:

2. Prepare a summary of article (brief paragraph):

3. List Related Business Management content/objectives: Business Org and Environment Human Resources Accounts/Finance Marketing Operations

4. Specific tools/theories:

5. List Related Business Management concepts: C U E G I S

6. Specific learning outcomes:

38

7. Evaluate the affect this will have on this sector/business in the near future (balanced argument). .

8. Analyze involved stakeholders and effect on them.

9. Prepare Judgement/recommendation on the article and why.

10. Prepare 3 CUEGIS concept questions relating to this article.

OTHER CURRENT EVENTS

Article Title Summary

1.

2.

3.

4.

5.

39

Partner Case Study Rubric

Names __________________________

Exceptional

Admirable

Acceptable Amateur

Exemplary

(8-10)

Acceptable

(5-7)

Unacceptable

(1-5)

Point Value

40

Case Study

Source/Research

Used up-to-date and professional resources. Written and published by reputable sources.

Fulfils assignment. Current article. Uses appropriate sources and is objective.

Out of date, unreliable or unsighted source. Does not meet assignment requirements, is not current or objective.

Relevance to

Content

Completely accurate; all facts were precise and explicit and relate to current content.

Mostly accurate; a few inconsistencies or errors in information. Relates somewhat to current content.

Somewhat accurate; more than a few inconsistencies or errors in information or incomplete. Does not relate to current content.

Assessment

Questions

Identifies not only the basics of the issue, but recognizes nuances of the issue.

Observes cause and effect and addresses existing or potential consequences. Clearly distinguishes between fact, opinion, and acknowledges value judgments.

Identifies the main problem and subsidiary, embedded or implicit aspects of the problem.

Examines the evidence and source of evidence, questions its accuracy, precision, relevance and completeness.

Does not identify and summarize the problem, is confused or identifies a different or inappropriate problem.

Merely repeats information provided, taking it as truth or denies evidence without adequate justification.

Group Facilitation Excellent listening and leadership skills exhibited; students reflect awareness of others’ views and opinions in their discussions. Provide feedback and contribute to conversation.

Students show adeptness in interacting; lively discussion focuses on the task.

Some ability to interact; attentive listening; some evidence of discussion or alternatives.

NOTES:

mrs. rumsey's guide to ib business management 2017-2018

Documents