SL
Paper 1
- Time: 90 minutes (70 marks)
- A problem-solving paper
- Topics 1 to 4
- 45% weight
Paper 2
- Option
- 25% weight
Internal Assessment
- Coursework
- 35% weight
Unit 1: Introduction to business management
- 1.1 What is a business?
- 1.2 Types of business entities
- 1.2.1 Distinction between the private and the public sectors
- 1.2.2 The main features of the following types of organizations: Sole traders, Partnerships, Privately held companies, Publicly held companies
- 1.2.3 The main features of the following types of for-profit social enterprises: Private sector companies, Public sector companies, Cooperatives
- 1.2.4 The main features of the following type of non-profit social enterprise
- 1.3 Business objectives
- 1.5 Growth and evolution
- 1.6 Multinational companies (MNCs)
Unit 2: Human resource management
- 2.1 Introduction to human resource management
- 2.2 Organizational structure
- 2.2.1 The following terminology in relation to different types of organizational structures: Delegation, Span of control, Levels of the hierarchy, Chain of command, Bureaucracy, Centralization, Decentralization, Delayering, Matrix structure
- 2.2.2 The following types of organization charts: Flat or horizontal, Tall or vertical, By product, by function or by region
- 2.2.3 Appropriateness of different organizational structures given a change in external factors
- 2.2.4 Changes in organizational structures
- 2.3 Leadership and management
- 2.4 Motivation and demotivation
- 2.4.1 The following motivation theories: Taylor, Maslow, Herzberg
- 2.4.2 The following motivation theories: McClelland’s acquired needs theory, Deci and Ryan’s self-determination theory, Equity and expectancy theory
- 2.4.3 Labour turnover
- 2.4.4 The following types of appraisal: Formative, Summative, 360-degree feedback, Self-appraisal
- 2.4.5 Methods of recruitment
- 2.4.6 Internal and external recruitment
- 2.4.7 The following types of financial rewards: Salary, Wages (time and piece rates), Commission, Performance-related pay (PRP), Profit-related pay, Employee share ownership schemes, Fringe payments
- 2.4.8 The following types of non-financial rewards: Job enrichment, Job rotation, Job enlargement, Empowerment, Purpose/the opportunity to make a difference, Teamwork
- 2.4.9 The following types of training: Induction, On the job, Off the job
- 2.5 Organizational (corporate) culture
- 2.6 Communication
- 2.7 Industrial/employee relations
- 2.7.1 Sources of conflict in the workplace
- 2.7.2 Approaches to conflict in the workplace by: employees—collective bargaining, work-to-rule and strike action, employers—collective bargaining, threats of redundancies, changes of contract, closure and lockouts
- 2.7.3 The following approaches to conflict resolution: Conciliation and arbitration, Employee participation and industrial democracy, No-strike agreement, Single-union agreement
Unit 3: Finance and accounts
- 3.1 Introduction to finance
- 3.2 Sources of finance
- 3.2.1 The following internal sources of finance: Personal funds (for sole traders), Retained profit, Sale of assets
- 3.2.2 The following external sources of finance: Share capital, Loan capital, Overdrafts, Trade credit, Crowdfunding, Leasing, Microfinance providers, Business angels
- 3.2.3 Appropriateness of short- or long-term sources of finance for a given situation
- 3.3 Costs and revenues
- 3.4 Final accounts
- 3.5 Profitability and liquidity ratio analysis
- 3.6 Efficiency ratio analysis
- 3.7 Cash flow
- 3.8 Investment appraisal
Unit 4: Marketing
- 4.1 Introduction to marketing
- 4.2 Marketing planning
- 4.2.1 The role of marketing planning
- 4.2.2 Segmentation, targeting (target market) and positioning (position maps)
- 4.2.3 The difference between niche market and mass market
- 4.2.4 The importance of having a unique selling point/proposition (USP)
- 4.2.5 How organizations can differentiate themselves and their products from competitors
- 4.3 Sales forecasting
- 4.4 Market research
- 4.4.1 Why and how organizations carry out market research
- 4.4.2 The following methods/techniques of primary market research: Surveys, Interviews, Focus groups, Observations
- 4.4.3 The following methods/techniques of secondary market research: Market analyses, Academic journals, Government publications, Media articles, Online content
- 4.4.4 The difference between qualitative and quantitative research
- 4.4.5 The following methods of sampling: Quota, Random, Convenience
- 4.5 The seven Ps of the marketing mix
- 4.6 International marketing
Unit 5: Operations management
- 5.1 Introduction to operations management
- 5.2 Operations methods
- 5.3 Lean production and quality management
- 5.3.1 The following features of lean production: Less waste, Greater efficiency
- 5.3.2 The following methods of lean production: Continuous improvement (kaizen), Just-in-time (JIT)
- 5.3.3 Features of cradle to cradle design and manufacturing
- 5.3.4 Features of quality control and quality assurance
- 5.3.5 The following methods of managing quality: Quality circle, Benchmarking, Total quality management (TQM)
- 5.3.6 The impact of lean production and TQM on an organization
- 5.3.7 The importance of national and international quality standards
- 5.4 Location
- 5.5 Break-even analysis
- 5.5.1 Total contribution versus contribution per unit
- 5.5.2 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
- 5.5.3 The effects of changes in price or cost on the break-even quantity, profit and margin of safety, using graphical and quantitative methods
- 5.5.4 Limitations of break-even as a decision-making tool
- 5.6 Production planning
- 5.6.1 The local and global supply chain process
- 5.6.2 The difference between JIT and just-in-case (JIC)
- 5.6.3 Stock control charts based on the following: Lead time, Buffer stock, Reorder level, Reorder quantity
- 5.6.4 Capacity utilization rate
- 5.6.5 Defect rate
- 5.6.6 Labour productivity, capital productivity, productivity rate, operating leverage
- 5.6.7 Cost to buy (CTB)
- 5.6.8 Cost to make (CTM)
- 5.7 Crisis management and contingency planning
- 5.8 Research and development
- 5.8.1 The importance of research and development for a business
- 5.8.2 The importance of developing goods and services that address customers’ unmet needs (of which the customers may or may not be aware)
- 5.8.3 Intellectual property protection; copyrights, patents, trademarks
- 5.8.4 Innovation: incremental and disruptive
- 5.9 Management information systems
- 5.9.1 Data analytics
- 5.9.2 Database
- 5.9.3 Cybersecurity and cybercrime
- 5.9.4 Critical infrastructures, including artificial neural networks, data centres and cloud computing
- 5.9.5 Virtual reality
- 5.9.6 The internet of things
- 5.9.7 Artificial intelligence
- 5.9.8 Big data
- 5.9.9 Customer loyalty programmes
- 5.9.10 The use of data to manage and monitor employees; Digital Taylorism
- 5.9.11 The use of data mining to inform decision-making
- 5.9.12 The benefits, risks and ethical implications of advanced computer technologies (collectively referred to here as “management information systems”) and technological innovation on business decision-making and stakeholders
Business management toolkit
- SWOT analysis
- Ansoff matrix
- STEEPLE analysis
- Boston Consulting Group (BCG) matrix
- Business plan
- Decision trees
- Descriptive statistics
- Circular business models
- Force field analysis
- Gantt chart
- Hofstede’s cultural dimensions
- Porter’s generic strategies
- Contribution
- Critical path analysis
- Simple linear regression
Unit 1: Introduction to business management
- 1.1 What is a business?
- 1.2 Types of business entities
- 1.2.1 Distinction between the private and the public sectors
- 1.2.2 The main features of the following types of organizations: Sole traders, Partnerships, Privately held companies, Publicly held companies
- 1.2.3 The main features of the following types of for-profit social enterprises: Private sector companies, Public sector companies, Cooperatives
- 1.2.4 The main features of the following type of non-profit social enterprise
- 1.3 Business objectives
- 1.5 Growth and evolution
- 1.6 Multinational companies (MNCs)
Unit 2: Human resource management
- 2.1 Introduction to human resource management
- 2.2 Organizational structure
- 2.2.1 The following terminology in relation to different types of organizational structures: Delegation, Span of control, Levels of the hierarchy, Chain of command, Bureaucracy, Centralization, Decentralization, Delayering, Matrix structure
- 2.2.2 The following types of organization charts: Flat or horizontal, Tall or vertical, By product, by function or by region
- 2.2.3 Appropriateness of different organizational structures given a change in external factors
- 2.2.4 Changes in organizational structures
- 2.3 Leadership and management
- 2.4 Motivation and demotivation
- 2.4.1 The following motivation theories: Taylor, Maslow, Herzberg
- 2.4.2 The following motivation theories: McClelland’s acquired needs theory, Deci and Ryan’s self-determination theory, Equity and expectancy theory
- 2.4.3 Labour turnover
- 2.4.4 The following types of appraisal: Formative, Summative, 360-degree feedback, Self-appraisal
- 2.4.5 Methods of recruitment
- 2.4.6 Internal and external recruitment
- 2.4.7 The following types of financial rewards: Salary, Wages (time and piece rates), Commission, Performance-related pay (PRP), Profit-related pay, Employee share ownership schemes, Fringe payments
- 2.4.8 The following types of non-financial rewards: Job enrichment, Job rotation, Job enlargement, Empowerment, Purpose/the opportunity to make a difference, Teamwork
- 2.4.9 The following types of training: Induction, On the job, Off the job
- 2.5 Organizational (corporate) culture
- 2.6 Communication
- 2.7 Industrial/employee relations
- 2.7.1 Sources of conflict in the workplace
- 2.7.2 Approaches to conflict in the workplace by: employees—collective bargaining, work-to-rule and strike action, employers—collective bargaining, threats of redundancies, changes of contract, closure and lockouts
- 2.7.3 The following approaches to conflict resolution: Conciliation and arbitration, Employee participation and industrial democracy, No-strike agreement, Single-union agreement
Unit 3: Finance and accounts
- 3.1 Introduction to finance
- 3.2 Sources of finance
- 3.2.1 The following internal sources of finance: Personal funds (for sole traders), Retained profit, Sale of assets
- 3.2.2 The following external sources of finance: Share capital, Loan capital, Overdrafts, Trade credit, Crowdfunding, Leasing, Microfinance providers, Business angels
- 3.2.3 Appropriateness of short- or long-term sources of finance for a given situation
- 3.3 Costs and revenues
- 3.4 Final accounts
- 3.5 Profitability and liquidity ratio analysis
- 3.6 Efficiency ratio analysis
- 3.7 Cash flow
- 3.8 Investment appraisal
Unit 4: Marketing
- 4.1 Introduction to marketing
- 4.2 Marketing planning
- 4.2.1 The role of marketing planning
- 4.2.2 Segmentation, targeting (target market) and positioning (position maps)
- 4.2.3 The difference between niche market and mass market
- 4.2.4 The importance of having a unique selling point/proposition (USP)
- 4.2.5 How organizations can differentiate themselves and their products from competitors
- 4.3 Sales forecasting
- 4.4 Market research
- 4.4.1 Why and how organizations carry out market research
- 4.4.2 The following methods/techniques of primary market research: Surveys, Interviews, Focus groups, Observations
- 4.4.3 The following methods/techniques of secondary market research: Market analyses, Academic journals, Government publications, Media articles, Online content
- 4.4.4 The difference between qualitative and quantitative research
- 4.4.5 The following methods of sampling: Quota, Random, Convenience
- 4.5 The seven Ps of the marketing mix
- 4.6 International marketing
Unit 5: Operations management
- 5.1 Introduction to operations management
- 5.1.1 The role of operations management
- 5.2 Operations methods
- 5.3 Lean production and quality management
- 5.3.1 The following features of lean production: Less waste, Greater efficiency
- 5.3.2 The following methods of lean production: Continuous improvement (kaizen), Just-in-time (JIT)
- 5.3.3 Features of cradle to cradle design and manufacturing
- 5.3.4 Features of quality control and quality assurance
- 5.3.5 The following methods of managing quality: Quality circle, Benchmarking, Total quality management (TQM)
- 5.3.6 The impact of lean production and TQM on an organization
- 5.3.7 The importance of national and international quality standards
- 5.4 Location
- 5.5 Break-even analysis
- 5.5.1 Total contribution versus contribution per unit
- 5.5.2 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
- 5.5.3 The effects of changes in price or cost on the break-even quantity, profit and margin of safety, using graphical and quantitative methods
- 5.5.4 Limitations of break-even as a decision-making tool
- 5.6 Production planning
- 5.6.1 The local and global supply chain process
- 5.6.2 The difference between JIT and just-in-case (JIC)
- 5.6.3 Stock control charts based on the following: Lead time, Buffer stock, Reorder level, Reorder quantity
- 5.6.4 Capacity utilization rate
- 5.6.5 Defect rate
- 5.6.6 Labour productivity, capital productivity, productivity rate, operating leverage
- 5.6.7 Cost to buy (CTB)
- 5.6.8 Cost to make (CTM)
- 5.7 Crisis management and contingency planning
- 5.8 Research and development
- 5.8.1 The importance of research and development for a business
- 5.8.2 The importance of developing goods and services that address customers’ unmet needs (of which the customers may or may not be aware)
- 5.8.3 Intellectual property protection; copyrights, patents, trademarks
- 5.8.4 Innovation: incremental and disruptive
- 5.9 Management information systems
- 5.9.1 Data analytics
- 5.9.2 Database
- 5.9.3 Cybersecurity and cybercrime
- 5.9.4 Critical infrastructures, including artificial neural networks, data centres and cloud computing
- 5.9.5 Virtual reality
- 5.9.6 The internet of things
- 5.9.7 Artificial intelligence
- 5.9.8 Big data
- 5.9.9 Customer loyalty programmes
- 5.9.10 The use of data to manage and monitor employees; Digital Taylorism
- 5.9.11 The use of data mining to inform decision-making
- 5.9.12 The benefits, risks and ethical implications of advanced computer technologies (collectively referred to here as “management information systems”) and technological innovation on business decision-making and stakeholders
Business management toolkit
- SWOT analysis
- Ansoff matrix
- STEEPLE analysis
- Boston Consulting Group (BCG) matrix
- Business plan
- Decision trees
- Descriptive statistics
- Circular business models
- Force field analysis
- Gantt chart
- Hofstede’s cultural dimensions
- Porter’s generic strategies
- Contribution
- Critical path analysis
- Simple linear regression
Syllabus
Here are some steps you can follow to prepare effectively:
Study the syllabus: Make sure you understand the topics that are covered in the IB DP Business Management syllabus. This will give you a clear idea of what to expect on the exams.
Review class notes and textbooks: Regularly review your class notes and textbooks to reinforce your understanding of the material.
Practice, practice, practice: Practice solving Business Management problems as much as possible. Try to work through as many practice questions and Mock tests as you can find here at iitianacademy.com . This will help you get a feel for the types of questions you can expect on the exams and build your problem-solving skills.
Seek help when needed: If you’re struggling with a particular concept, don’t hesitate to ask your teacher or a tutor for help.
Stay organized: Make sure to keep track of important formulas, equations, and concepts so you can easily reference them when you need to.
Stay up-to-date on current events in Business Management : Being knowledgeable about current developments in Business Management can help you better understand the applications of the concepts you are learning.