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Contents Introduction 1 Purpose of this document 1 The Diploma Programme 2 Nature of the subject 6 Approaches to teaching and learning business management 11 Aims 17 Assessment objectives 18 Assessment objectives in practice 19 Syllabus 22 Syllabus outline 22 Syllabus content 24 Assessment 51 Assessment in the Diploma Programme 51 Assessment outline SL 53 Assessment outline HL 54 External assessment 56 Internal assessment 71 Appendices 87 Formulae 87 Glossary of command terms Business management guide 92

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Introduction The Diploma Programme The Diploma Programme is a rigorous pre university course of study designed for students in the 16 to 19 age range It is a broad based two year course that aims to encourage students to be knowledgeable and inquiring but also caring and compassionate There is a strong emphasis on encouraging students to develop intercultural understanding open mindedness and the attitudes necessary for them to respect and evaluate a range of points of view The Diploma Programme model The course is presented as six academic areas enclosing a central core see figure 1 It encourages the concurrent study of a broad range of academic areas Students study two modern languages or a modern language and a classical language a humanities or social science subject an experimental science mathematics and one of the creative arts It is this comprehensive range of subjects that makes the Diploma Programme a demanding course of study designed to prepare students effectively for university entrance In each of the academic areas students have flexibility in making their choices which means they can choose subjects that particularly interest them and that they may wish to study further at university Figure 1 Diploma Programme model 2 Business management guide

Introduction Nature of the subject Business management Business management is a rigorous challenging and dynamic discipline in the individuals and societies 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 Profitmaking 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 decisionmaking within an organization whereas economics is the study of scarcity and resource allocation both on micro and macro levels Business management examines the use of 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 Programme 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 analyse 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 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 6 Business management guide

Nature of the subject Distinction between SL HL The HL course in business management differs from the SL course in business management in terms of the recommended hours devoted to teaching 240 hours for HL compared to 150 hours for SL extra depth and breadth required extension units for HL nature of the internal assessment task nature of the examination questions Business management and the core From the perspective of the Diploma Programme core the value of individuals and societies subjects is that they allow students to reach beyond the classroom and their immediate school community to build intellectual and practical connections to the wider society In business management the particular category of actors students learn about interact with and reflect on is businesses The all pervasive and dynamic nature of business organizations means that there are many opportunities for teachers and students to link the course with TOK CAS and the extended essay Theory of knowledge Students in this subject group explore the interactions between humans and their environment in time and place As a result these subjects are often known collectively as the humanities or social sciences As with other subject areas knowledge in individuals and societies subjects can be gained in a variety of ways For example archival evidence data collection experimentation observation and inductive and deductive reasoning can all be used to help explain patterns of behaviour that lead to knowledge claims Students in individuals and societies subjects are required to evaluate these knowledge claims by exploring concepts such as validity reliability credibility certainty and individual as well as cultural perspectives through knowledge questions The relationship between individuals and societies subjects and TOK is of crucial importance and fundamental to the Diploma Programme Having followed a course of study in individuals and societies students should be able to reflect critically on the various ways of knowing and methods used in human sciences and in doing so become inquiring knowledgeable and caring young people IB mission statement During the business management course a number of issues will arise that highlight the relationships between TOK and business management Some of the questions that could be considered during the course are identified below in relation to the six concepts that underpin the course as well as within the syllabus Teachers and their students are encouraged to explore further questions of their own Knowledge questions in business management A knowledge question in business management challenges a statement assertion or assumption about the subject that students believe to be true or take for granted From a TOK perspective students need to question these claims and how they are justified Knowledge questions are not about business management per se but about how knowledge in business management and more widely in social sciences is constructed and viewed Some knowledge questions that could be considered during the course are identified below These are presented in relation to the concepts of change culture ethics globalization innovation and strategy that underpin the course and so reflect more overarching questions Suggested links to TOK are also identified at the end of each unit Business management guide 7

Nature of the subject Concept Possible knowledge questions Is it possible to objectively evaluate how a culture impacts on our beliefs and knowledge Are there any knowledge claims about business that are true across cultures What is the role of intuition in ethical decision making To what extent might lack of knowledge be an excuse for unethical conduct If moral claims often conflict does it follow that there are no justifiable concepts of right or wrong What are the justifications for and implications of claiming that there are universal standards for morality or that there are only individual standards of morality Does globalization unify our values beliefs and knowledge or lead to their greater fragmentation Are some ways of knowing more useful than others when trying to understand the process of globalization and its effects To what extent is our knowledge and understanding of complex phenomena such as globalization dependent on our particular perspective Business management uses case studies a research method most commonly associated with the human sciences What are the benefits and drawbacks of this in a globalized world How else does the methodology of the human sciences differ from the methodology of other areas of knowledge What is the relationship between imagination and other ways of knowing in bringing about innovation What are the strengths and weaknesses of using imagination and emotion as a basis for knowledge in the human sciences Concepts such as innovation are difficult to define Can we have shared knowledge of concepts that are so difficult to express through language What is the relationship between advances in technology and innovation Does technology control what is possible to know What is strategy based on Reason intuition or something else Can we speak of facts in business management or only opinions Strategic decisions are supported by evidence How can we evaluate the usefulness of evidence How can we decide between seemingly conflicting evidence 8 To what extent are we aware of the impact of culture on what we believe or know Strategy To what extent does our culture determine or shape what we believe or know Innovation To what extent have views on whether humans act rationally when making economic decisions changed over time What is the relationship between reason and other ways of knowing in business management Globalization What is the role of individuals in bringing about major changes in the theory and practice of business management How does this compare with individuals role in bringing about change in other areas of knowledge Ethics Culture How do human scientists decide between competing knowledge claims or between the views of experts when they disagree Change How do changes in the world bring about changes in knowledge How powerful is language in shaping our interpretation of decisions and events Business management guide

Introduction Approaches to teaching and learning of business management Like all IB courses the Diploma Programme business management course is influenced by a number of underlying pedagogical principles Especially important strategies for business management are conceptually focused teaching and contextualized teaching through the use of case studies and examples The ability to research is a key skill for students studying the course The relationship between concepts the contexts and content of the discipline of business management can be 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 Figure 2 The integrated relationships of concepts content and contexts in business management The following section as well as the teacher support material available on the OCC contains more specific guidance and suggestions on approaching the teaching and learning of the Diploma Programme business management course This guidance is not exhaustive and through their own planning teachers should explore a range of teaching and learning experiences Conceptually focused teaching in business management The following six concepts underpin the Diploma Programme business management course Change Culture Ethics Business management guide 11

Approaches to teaching and learning of business management Globalization Innovation Strategy Some teachers may choose to teach the business management course in a linear way topic by topic Other teachers may prefer to organize the syllabus content around the six key concepts Regardless all teachers should explicitly integrate a conceptual approach to their current practice A conceptually focused teaching approach has several advantages Concepts facilitate disciplinary and interdisciplinary learning and allow for connections with other subjects deepen students understanding of today s complex and dynamic business environments allow teachers to frame the most important ideas that have relevance for the subject but also transcend it Consequently students learn to analyse and evaluate individual and collective behaviours and topical phenomena not only in business contexts but in the society at large allow students to integrate new content into already existing understandings Working with a conceptual approach prepares students for a part of their assessment The six concepts are a part of the formal assessment of the course at both SL and HL In one of their examination papers students are asked to use two of the six concepts to discuss the situation and issues faced by real world organizations they have studied during the course making use of business management tools techniques and theories The following table provides brief understandings of the six concepts and offers some suggestions as to how they may be explored through specific subject content The examples are in no way prescriptive and in their planning teachers should identify and map areas of the syllabus and suitable case studies and examples that will allow them to explore these concepts with their students Concept Understanding in relation to the course Examples of content that allows for the exploration of concepts this list is not prescriptive Change Competition new technologies and markets and trends in consumer behaviour lead business organizations to adapt their objectives strategies and operations 1 3 Organizational objectives Success emerges from the ability to research and respond to signals in both the internal and external environment 3 1 2 1 Functions and evolution of human resource management 2 2 Organizational structure Sources of finance 3 7 Cash flow 4 2 Marketing planning 4 3 Sales forecasting HL only 4 4 Market research 5 6 Research and development HL only 5 7 Crisis management and contingency planning HL only 12 Business management guide

Approaches to teaching and learning of business management Concept Understanding in relation to the course Examples of content that allows for the exploration of concepts this list is not prescriptive Culture Every organization operates in a range of environments in which its role may be interpreted differently These expectations affect planning decisionmaking and strategy implementation 1 2 Types of organization Within an organization values and backgrounds influence what stakeholders focus on and how they work 2 5 Organizational culture HL only 1 6 Growth and evolution 2 3 Leadership and management 2 4 Motivation 2 6 Industrial relations HL only 4 2 Marketing planning 4 7 International marketing HL only 5 3 Lean production and managing quality HL only 5 4 Location Ethics Every business decision has moral implications 1 1 Introduction to business management These consequences can be significant for internal and external stakeholders and the natural environment 1 2 Types of organization 1 3 Organizational objectives 1 4 Stakeholders 1 5 External environment 2 3 Leadership and management 3 4 Final accounts 4 1 5 1 Globalization The role of marketing The role of operations management A wide range of international forces such as the increasing social cultural technological and economic integration influence business organizations In turn business organizations shape these forces 1 4 Stakeholders Many business organizations operate across national boundaries Even local businesses and consumers are influenced by global forces 2 2 Organizational structure 1 5 External environment 1 6 Growth and evolution 2 1 Functions and evolution of human resource management 2 5 Organizational culture HL only 4 7 International marketing HL only 4 8 E commerce 5 4 Location Business management guide 13

Approaches to teaching and learning of business management Concept Understanding in relation to the course Examples of content that allows for the exploration of concepts this list is not prescriptive 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 1 5 External environment For many business organizations a key challenge is bringing in the new and managing the process of improvement in a sustainable way 3 1 1 6 Growth and evolution 2 3 Leadership and management 2 5 Organizational culture HL only Sources of finance 3 8 Investment appraisal 4 4 Market research 5 3 Lean production and managing quality HL only 5 6 Research and development HL only 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 1 3 Organizational objectives 1 6 Growth and evolution 1 7 Organizational planning tools HL only 2 2 Organizational structure 2 3 Leadership and management 3 4 Final accounts 3 8 Investment appraisal 4 4 Market research 5 1 The role of operations management 5 5 Research and development HL only A teacher s own carefully designed scheme of work will explore the relationships between these concepts the tools techniques and theories of business management and appropriate examples and case studies The Business management teacher support material provides further guidance on teaching through concepts Contextualized teaching through case studies and examples The teaching of business management content should be supported through case studies and examples from news articles and other real world resources such as annual reports industry level materials nongovernmental organization NGO publications and consumer opinion The case studies and examples should be selected to help develop students understanding of the six concepts and the tools techniques and theories used in business management 14 Business management guide

Approaches to teaching and learning of business management The resources may cover a wide range of contemporary business issues such as globalization new business models centred on social and environmental issues CSR the role of product quality or the changing nature of marketing Please note that these are suggestions and the choice of issues should be of interest to students and reflect current debates in the business world The following approach is helpful when teaching through case studies and examples Identify the context and issues raised by the case study or example Explain how these issues relate to different areas of the syllabus and the six concepts Apply the business tools techniques and theories that might be appropriate for understanding the issues raised in the case study or example Discuss and if appropriate recommend alternatives to the issues raised Students are able to use their work with case studies and examples in their assessment Familiarity with the case study approach is important for a successful treatment of the pre seen case study and of stimulus materials given in the examination papers Moreover in the conceptual examination questions students are asked to use two of the six concepts to discuss the context situation and issues faced by real world organizations they have studied during the course Finally for their internal assessment at both SL and HL students have to focus on a problem issue or decision faced by a real world organization The Business management teacher support material provides further guidance on teaching through case studies and examples Research skills Potential extended essay work in business management the internal assessment at both SL and HL and their preparation for the conceptual examination questions provide opportunities for students to explore and develop their research skills These include the identification of relevant materials the design of data collection techniques the collection and analysis of data and the ability to evaluate and draw conclusions from data Teachers are encouraged to discuss appropriate research methods with students The Business management teacher support material provides further guidance on research skills While conceptually focused teaching contextual teaching and research skills are highlighted as particularly relevant approaches to teaching and learning in business management the course offers opportunities for teachers and students to explore a range of teaching and learning experiences Teachers are encouraged to discuss their strategies on the OCC Prior learning No particular background in terms of specific subjects for national or international qualifications is expected or required and no prior knowledge of business management is necessary for students to undertake a course of study based on this specification However a familiarity with business concepts would be an advantage as would completing the individuals and societies course in the Middle Years Programme MYP Links to the Middle Years Programme The MYP individuals and societies subject group involves inquiry into historical contemporary political social economic cultural technological and environmental contexts that impact on and are influenced by individuals and societies This is a very useful foundation for students who go on to study the Diploma Programme business management course Business management guide 15

Approaches to teaching and learning of business management Students coming from the MYP are familiar with a conceptual approach to learning Among their key and related concepts in the individuals and societies subject group they will have studied the concepts of change culture ethics globalization innovation and strategy which will be further developed in the Diploma Programme business management course Conceptual analysis in the business management course is expected to have an increasing degree of sophistication and disciplinary specificity The development of certain skills in the MYP individuals and societies subject group is also excellent preparation for a Diploma Programme course in business management which requires the student to undertake research demonstrate understanding and knowledge of content and concepts and exhibit the capacity to think critically For example the following specific skills which are identified and developed in the MYP individuals and societies subject group are encouraged in the Diploma Programme business management course the ability to use sources such as graphs and tables in a critical manner the ability to analyse and interpret information from a wide range of sources the ability to communicate information and ideas using an appropriate style for the intended audience and purpose the ability to analyse concepts events issues and arguments the ability to make well substantiated decisions and to relate them to real world contexts 16 Business management guide

Introduction Assessment objectives By the end of the business management course students are expected to reach the following assessment objectives 1 Demonstrate knowledge and understanding of the six concepts that underpin the subject real world business problems issues and decisions 2 the business management tools techniques and theories specified in the syllabus content the HL extension topics HL only Demonstrate application and analysis of business decisions by explaining the issue s at stake selecting and interpreting data and applying appropriate tools techniques theories and concepts 3 knowledge and skills to a variety of real world and fictional business situations the HL extension topics HL only Demonstrate synthesis and evaluation of business decisions formulating recommendations 4 business strategies and practices showing evidence of critical thinking the HL extension topics HL only Demonstrate a variety of appropriate skills to select and use quantitative and qualitative business tools techniques and methods 18 produce well structured written material using business terminology select and use business material from a range of primary and secondary sources Business management guide

Introduction Assessment objectives in practice Assessment objective Which component addresses this assessment objective How is the assessment objective addressed 1 External assessment External assessment Internal assessment Paper 1 SL and HL all sections Paper 2 SL and HL all sections Demonstrate knowledge and understanding Internal assessment all of written commentary SL and research project HL 2 Demonstrate application and analysis External assessment External assessment Internal assessment Paper 1 SL and HL all sections Paper 2 SL and HL all sections Internal assessment 3 Demonstrate synthesis and evaluation SL emphasized in criteria B and C HL emphasized in criteria C and D External assessment External assessment Internal assessment Paper 1 section B SL and HL and section C HL Paper 2 SL and HL all sections Internal assessment Business management guide SL emphasized in criteria D and E HL emphasized in criteria D E F and I 19

Assessment objectives in practice Assessment objective Which component addresses this assessment objective How is the assessment objective addressed 4 External assessment External assessment Internal assessment Paper 1 SL and HL all sections Paper 2 SL and HL all sections emphasized in section A Demonstrate a variety of appropriate skills Internal assessment SL emphasized in criteria A B C F and G HL emphasized in criteria A B C G and H Command terms Command terms are used both in the syllabus content and in examination questions to indicate depth of treatment They are classified below according to the assessment objective AO levels AO1 Demonstrate knowledge and understanding AO2 Demonstrate application and analysis AO3 Demonstrate synthesis and evaluation AO4 Demonstrate a variety of appropriate skills Cognitive demands progress from AO1 to AO3 while AO4 terms are specific to particular skills Teachers and students must be familiar with the assessment objective levels and the command terms in order to understand the depth of treatment required in teaching and in examination questions In the syllabus content the assessment objective levels are specified instead of particular command terms This gives teachers flexibility to work with the most relevant command terms at the given assessment objective level For use of command terms in examination questions please refer to the assessment section of this guide The command terms within each assessment objective level are listed in alphabetical order in the following table Definitions of the terms are listed in the Glossary of command terms in the appendix to this guide Assessment objective Key command term Depth 1 Define These terms require students to learn and comprehend the meaning of information Demonstrate knowledge and understanding Describe Outline State 20 Business management guide

Assessment objectives in practice Assessment objective Key command term Depth 2 Analyse These terms require students to use their knowledge and skills to break down ideas into simpler parts and to see how the parts relate Demonstrate application and analysis of knowledge and understanding Apply Comment Demonstrate Distinguish Explain Interpret Suggest 3 Demonstrate synthesis and evaluation Compare Compare and contrast Contrast Discuss These terms require students to rearrange component ideas into a new whole and make judgments based on evidence or a set of criteria Evaluate Examine Justify Recommend To what extent 4 Demonstrate a variety of appropriate skills Annotate Calculate Complete These terms require students to demonstrate the selection and use of subject specific skills and techniques Construct Determine Draw Identify Label Plot Prepare Business management guide 21

Syllabus Syllabus outline Syllabus component Unit 1 Business organization and environment 1 1 Teaching hours SL HL 40 50 15 30 35 50 Introduction to business management 1 2 Types of organizations 1 3 Organizational objectives 1 4 Stakeholders 1 5 External environment 1 6 Growth and evolution 1 7 Organizational planning tools HL only Unit 2 Human resource management 2 1 Functions and evolution of human resource management 2 2 Organizational structure 2 3 Leadership and management 2 4 Motivation 2 5 Organizational corporate culture HL only 2 6 Industrial employee relations HL only Unit 3 Finance and accounts 3 1 Sources of finance 3 2 Costs and revenues 3 3 Break even analysis 3 4 Final accounts some HL only 3 5 Profitability and liquidity ratio analysis 3 6 Efficiency ratio analysis HL only 3 7 Cash flow 3 8 Investment appraisal some HL only 3 9 Budgets HL only 22 Business management guide

Syllabus outline Syllabus component Teaching hours SL HL 35 50 10 30 Internal assessment 15 30 Total teaching hours 150 240 Unit 4 Marketing 4 1 The role of marketing 4 2 Marketing planning including introduction to the four Ps 4 3 Sales forecasting HL only 4 4 Market research 4 5 The four Ps product price promotion place 4 6 The extended marketing mix of seven Ps HL only 4 7 International marketing HL only 4 8 E commerce Unit 5 Operations management 5 1 The role of operations management 5 2 Production methods 5 3 Lean production and quality management HL only 5 4 Location 5 5 Production planning HL only 5 6 Research and development HL only 5 7 Crisis management and contingency planning HL only The recommended teaching time is 240 hours to complete HL courses and 150 hours to complete SL courses as stated in the document General regulations Diploma Programme page 4 article 8 2 The curriculum model for Diploma Programme business management is a core curriculum for HL and SL consisting of five obligatory units with common content and learning outcomes In addition to the core HL students are expected to complete extension areas of study in all five units adding depth and breadth to the course The above teaching hours are suggestions only and teachers may choose to allocate their teaching time between the units differently Business management guide 23

Syllabus Syllabus content Unit 1 Business organization and environment In this first introductory unit business management is set in context students learn to analyse organizations internal environment for example stakeholders strategic objectives and CSR and external environment for example the impact of technological change and globalization Unit 1 covers traditional business areas such as the different types of organization and the idea of economies of scale but it also includes more contemporary topics such as the features of social enterprises the nature of business activity in the quaternary sector and the distinction between entrepreneurship and intrapreneurship Both SL and HL students learn to apply fundamental strategy models such as social technological economic environmental political legal and ethical STEEPLE analysis as well as the strengths weaknesses opportunities and threats SWOT analysis HL students also learn to apply and evaluate more specific tools such as fishbone diagrams decision trees and force field analysis However given the importance of the overarching business themes introduced in unit 1 most content is common to both levels As this unit provides students with an overview of business management both as a topic of study what the subject covers overall and as a professional practice what business managers do it lends itself to many TOK considerations On the one hand students may inquire into how and why a particular model becomes established as a mainstream strategy model On the other hand they may ask on what basis business managers make decisions in the real world Unit 1 is also an open invitation to consider a range of international examples especially in relation to issues of globalization and to address businesses ethical social or environmental obligations which fits well with the IB learner profile in terms of developing principled thinkers It may also provide the impetus for entrepreneurial service learning projects in the local community as part of students CAS requirement SL HL content Depth of teaching HL only Depth of teaching 1 1 Introduction to business management The role of businesses in combining human physical and financial resources to create goods and services AO2 The main business functions and their roles AO2 human resources finance and accounts marketing operations Primary secondary tertiary and quaternary sectors 24 AO2 Business management guide

Syllabus content SL HL content Depth of teaching The nature of business activity in each sector and the impact of sectoral change on business activity AO2 The role of entrepreneurship and entrepreneur and intrapreneurship and intrapreneur in overall business activity AO3 Reasons for starting up a business or an enterprise AO2 Common steps in the process of starting up a business or an enterprise AO2 Problems that a new business or enterprise may face AO2 The elements of a business plan HL only Depth of teaching AO2 1 2 Types of organizations Distinction between the private and the public sectors AO2 The main features of the following types of for profit commercial organizations AO3 sole traders partnerships companies corporations The main features of the following types of for profit social enterprises cooperatives microfinance providers AO3 public private partnerships PPP The main features of the following types of non profit social enterprises non governmental organizations NGOs AO3 charities Business management guide 25

Syllabus content SL HL content Depth of teaching HL only Depth of teaching 1 3 Organizational objectives Vision statement and mission statement AO2 Aims objectives strategies and tactics and their relationships AO3 The need for organizations to change objectives and innovate in response to changes in internal and external environments AO3 Ethical objectives and corporate social responsibility CSR AO1 The reasons why organizations set ethical objectives and the impact of implementing them AO3 The evolving role and nature of CSR AO3 SWOT analysis of a given organization AO3 AO4 Ansoff matrix for different growth strategies of a given organization AO3 AO4 1 4 Stakeholders The interests of internal stakeholders AO2 The interests of external stakeholders AO2 Possible areas of mutual benefit and conflict between stakeholders interests AO3 1 5 External environment STEEPLE analysis of a given organization AO2 AO4 Consequences of a change in any of the STEEPLE factors for a business s objectives and strategy AO3 1 6 Growth and evolution Economies and diseconomies of scale AO2 The merits of small versus large organizations AO3 26 Business management guide

Syllabus content SL HL content Depth of teaching The difference between internal and external growth AO2 The following external growth methods AO3 joint ventures strategic alliances AO2 AO4 mergers and acquisitions M As and takeovers Depth of teaching The following planning tools in a given situation HL only franchising The role and impact of globalization on the growth and evolution of businesses AO3 Reasons for the growth of multinational companies MNCs AO3 The impact of MNCs on the host countries AO3 1 7 Organizational planning tools HL only fishbone diagram decision tree force field analysis Gantt chart The value to an organization of these planning tools Business management guide AO3 27

Syllabus content Theory of knowledge suggested links How do assumptions about what a business is and how a business works vary by industry and location and what implications does this have for business actors To what extent do intuition imagination and reason factor into the decision to set up a new business Is business decision making art or science Do we have self evident beliefs about what the objectives of a business are or how a business operates If so which ones and how could we challenge them What needs to be true for ethical objectives to contribute to good strategy What needs to be true for business strategy to be ethically laudable Most businesses desire to expand What motivates the growth of a social organization like business 28 To what extent are the language and customs of business management based on the English language and Western tradition and what implications does this have for business cultures around the world How can we evaluate the benefits and drawbacks of globalization given the multitude of stakeholders it influences Business management guide

Syllabus content Unit 2 Human resource management In this unit students explore how businesses recruit organize develop and lead their arguably most important resource their people In unit 2 students also learn what motivates individuals to perform well at work Given the pace of change in modern business the unit looks at how structural changes and changes in the business environment or in key people impact on human resource management Ethical considerations and cross cultural understanding are particularly relevant for unit 2 and especially in examining global corporations that have a multinational workforce and diverse stakeholder groups Although cultural issues are addressed throughout this unit HL students also examine organizational corporate culture as well as industrial employee relations This gives them more tools to analyse the relationship between different stakeholder groups as well as the role of individuals in a business While unit 2 focuses primarily on people issues these also form part of the discussions in other units of the course For example in unit 1 social and demographic changes are discussed as drivers of strategy in unit 4 customers are in focus while in unit 5 innovation is examined As the unit deals with the interactions between humans and their environments students have an opportunity to reflect critically and creatively on many TOK considerations Students may ask how knowledge is generated individually and collectively within an organization how it is internally and externally validated and how it may or may not be questioned Similarly topics such as persuasion essential for leadership and collective bargaining and the consequences of actions and decisions for instance in relation to recruiting or dismissing staff can be examined In terms of the IB learner profile it may be interesting to study to what extent the characteristics of the profile are present and valued in business contexts SL HL content Depth of teaching HL only Depth of teaching 2 1 Functions and evolution of human resource management Human resource planning workforce planning AO1 Labour turnover AO2 Internal and external factors that influence human resource planning such as demographic change change in labour mobility new communication technologies AO3 Common steps in the process of recruitment AO2 The following types of training AO2 on the job including induction and mentoring off the job cognitive behavioural Business management guide 29

Syllabus content SL HL content Depth of teaching The following types of appraisal AO2 summative 360 degree feedback Depth of teaching formative HL only self appraisal Common steps in the processes of dismissal and redundancy AO1 How work patterns practices and preferences change and how they affect the employer and employees such as teleworking flexitime migration for work AO2 Outsourcing offshoring and reshoring as human resource strategies AO3 How innovation ethical considerations and cultural differences may influence human resource practices and strategies in an organization AO3 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 AO1 de layering The following types of organization charts flat horizontal tall vertical hierarchical by product by function AO2 AO4 by region 30 Business management guide

Syllabus content SL HL content Depth of teaching Changes in organizational structures such as project based organization Handy s Shamrock Organization AO2 How cultural differences and innovation in communication technologies may impact on communication in an organization HL only Depth of teaching AO3 2 3 Leadership and management The key functions of management AO2 Management versus leadership AO2 The following leadership styles AO3 autocratic paternalistic democratic laissez faire situational How ethical considerations and cultural differences may influence leadership and management styles in an organization AO3 2 4 Motivation The following motivation theories Taylor Maslow Herzberg motivation hygiene theory Adams equity theory AO3 Pink The following types of financial rewards salary wages time and piece rates commission profit related pay performance related pay PRP employee share ownership schemes AO2 fringe payments perks Business management guide 31

Syllabus content SL HL content Depth of teaching The following types of non financial rewards AO2 Elements of organizational culture Types of organizational culture The reasons for and consequences of cultural clashes within organizations when they grow merge and when leadership styles change How individuals influence organizational culture and how organizational culture influences individuals AO3 The role and responsibility of employee and employer representatives AO2 The following industrial employee relations methods used by AO3 purpose the opportunity to make a difference AO3 empowerment AO2 job enlargement AO2 job rotation AO1 job enrichment Depth of teaching Organizational culture HL only teamwork How financial and non financial rewards may affect job satisfaction motivation and productivity in different cultures AO2 2 5 Organizational corporate culture HL only 2 6 Industrial employee relations HL only 32 employees collective bargaining slowdowns goslows work to rule overtime bans and strike action employers collective bargaining threats of redundancies changes of contract closure and lock outs Business management guide

Syllabus content SL HL content Depth of teaching HL only Depth of teaching Sources of conflict in the workplace AO2 The following approaches to conflict resolution AO3 conciliation and arbitration employee participation and industrial democracy no strike agreement single union agreement Reasons for resistance to change in the workplace such as self interest low tolerance misinformation and interpretation of circumstances AO2 Human resource strategies for reducing the impact of change and resistance to change such as getting agreement ownership planning and timing the change and communicating the change AO3 How innovation ethical considerations and cultural differences may influence employer employee relations in an organization AO3 Theory of knowledge suggested links The pace of change in modern business is high and what is important to know is not static How do individuals and organizations cope with change and new demands Knowledge is power If this saying is true how does it affect different stakeholders ability to contribute to business decision making In large businesses many stakeholders are far from the centre of decision making What challenges does an organizational or a geographical distance create for understanding the concerns of individual and stakeholder groups Each individual and stakeholder group in a business has its own interests Does this mean that a genuine shared strategy is impossible How can a good leader use the different ways of knowing for effective communication and interaction with employees Can individual motivation only emerge internally or can it be created externally Is there such a thing as collective motivation What types of knowledge skills and attitudes might future business leaders and employees need Business management guide 33

Syllabus content Unit 3 Finance and accounts Irrespective of their size scope and sector all organizations need robust accounting systems making finance a core business function In unit 3 students examine finance and accounts through both quantitative and qualitative methods They learn how businesses represent themselves numerically through accounts they also learn how to construct basic balance sheets and profit and loss accounts themselves By the end of the unit they will be able to explain the meaning of these accounts by calculating ratios for example gross profit margin net profit margin and return on capital employed ROCE and interpreting the results HL students explore aspects of finance and accounts in more depth through the study of further efficiency ratios investment appraisals and budgets Finance transcends mere numbers and connects to the six concepts underpinning the course The profitability and financial health of an organization may significantly influence its strategy ethics and need and willingness to change and vice versa The challenge of accounting is for an organization to represent itself through the common language of financial statements which raises many TOK considerations for example in relation to the truth that may or may not be found in numbers Unit 3 also provides opportunities for students to think about the attributes of the IB learner profile They may inquire which characteristics of the learner profile are and in their view ought to be valued in accounting and more broadly in the financial markets SL HL content Depth of teaching HL only Depth of teaching 3 1 Sources of finance Role of finance for businesses capital expenditure AO2 revenue expenditure The following internal sources of finance personal funds for sole traders retained profit AO2 sale of assets The following external sources of finance share capital loan capital overdrafts trade credit grants subsidies debt factoring leasing venture capital AO2 business angels 34 Business management guide

Syllabus content SL HL content Depth of teaching Short medium and long term finance AO1 The appropriateness advantages and disadvantages of sources of finance for a given situation HL only Depth of teaching AO3 3 2 Costs and revenues The following types of cost using examples fixed variable semi variable direct AO2 indirect overhead Total revenue and revenue streams using examples AO2 3 3 Break even analysis Total contribution versus contribution per unit AO2 A break even chart and the following aspects of break even analysis AO2 AO4 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 AO2 AO4 The benefits and limitations of breakeven analysis AO3 Business management guide 35

Syllabus content SL HL content Depth of teaching HL only Depth of teaching Depreciation using the following methds AO2 AO4 3 4 Final accounts some HL only The purpose of accounts to different stakeholders AO3 The principles and ethics of accounting practice AO3 Final accounts AO2 AO4 profit and loss account balance sheet Different types of intangible assets AO1 straight line method reducing declining balance method The strengths and weaknesses of each method AO2 3 5 Profitability and liquidity ratio analysis The following profitability and efficiency ratios gross profit margin net profit margin AO2 AO4 ROCE Possible strategies to improve these ratios AO3 The following liquidity ratios AO2 AO4 current acid test quick Possible strategies to improve these ratios 36 AO3 Business management guide

Syllabus content SL HL content Depth of teaching HL only Depth of teaching The following further efficiency ratios AO2 AO4 3 6 Efficiency ratio analysis HL only inventory stock turnover debtor days creditor days gearing ratio Possible strategies to improve these ratios AO3 Investment opportunities using net present value NPV AO3 AO4 3 7 Cash flow The difference between profit and cash flow AO2 The working capital cycle AO2 Cash flow forecasts AO2 AO4 The relationship between investment profit and cash flow AO2 The following strategies for dealing with cash flow problems AO3 reducing cash outflow improving cash inflows looking for additional finance 3 8 Investment appraisal some HL only Investment opportunities using payback period and average rate of return ARR Business management guide AO3 AO4 37

Syllabus content SL HL content Depth of teaching HL only Depth of teaching The importance of budgets for organizations AO2 The difference between cost and profit centres AO1 The roles of cost and profit centres AO2 Variances AO2 AO4 The role of budgets and variances in strategic planning AO2 3 9 Budgets HL only Theory of knowledge suggested links Do financial statements reflect the truth about a business How certain is the information we get from financial statements For example could we know in advance if an investment will be successful What is the role of interpretation in accounting For example could we compare businesses by just looking at their financial statements Often financial information is presented to the wider audience in a graphical or summary form Do such simplifying presentations limit our knowledge of accounts Does the accounting process allow for imagination 38 Many businesses are introducing metrics about their environmental social or ethical performance on the side of financial information Can well being or other social variables be measured Accounting practices vary from country to country Is this necessary or is it possible to have the same accounting practices everywhere Business management guide

Syllabus content Unit 4 Marketing Marketing is an essential business function it creates a bridge between an organization and its customers In our everyday speech the word marketing is often associated with advertisements and finding innovative ways of getting people to buy a product or service However unit 4 shows students that marketing is much more than that Effective marketing requires consideration of everything from product quality to consumer perceptions and increasingly engagement with people s everyday lives to uncover needs that customers may not even be aware of themselves Both SL and HL students learn the marketing mix of the four Ps the essential ingredients of marketing planning product price promotion and place distribution At HL this model is expanded to the seven Ps students also explore how people processes and physical evidence can be applied to the marketing of services HL students also examine international marketing in greater depth This gives them an appreciation for how marketing strategies and practices are both a reflection of and an influence on the culture in which they are applied Given the strategic nature of marketing unit 4 is closely linked to the other business functions students study in the business management course For instance market research may lead to new strategic objectives unit 1 that impact on production unit 5 human resource planning unit 2 and profitability unit 3 Unit 4 provides an ideal opportunity for teachers and students to explore case studies and examples that are contemporary relevant and of direct interest to students Marketing also allows students to develop their conceptual understanding The unit ties to all concepts underpinning the course marketing decisions are strategic and have ethical and cultural implications Here the degree to which marketing is globalized can be examined Innovating and being aware or even ahead of social changes are essential elements of effective marketing Thus students learn to discuss and evaluate marketing decisions from a range of perspectives combining inquiry critical thinking and cross cultural understanding SL HL content Depth of teaching HL only Depth of teaching 4 1 The role of marketing Marketing and its relationship with other business functions AO1 The differences between marketing of goods and marketing of services AO2 Market orientation versus product orientation AO2 The difference between commercial marketing and social marketing AO2 Characteristics of the market in which an organization operates AO1 Market share AO4 The importance of market share and market leadership AO3 The marketing objectives of forprofit organizations and non profit organizations AO3 Business management guide 39

Syllabus content SL HL content Depth of teaching How marketing strategies evolve as a response to changes in customer preferences AO3 How innovation ethical considerations and cultural differences may influence marketing practices and strategies in an organization HL only Depth of teaching AO3 4 2 Marketing planning including introduction to the four Ps The elements of a marketing plan AO1 The role of marketing planning AO2 The four Ps of the marketing mix AO2 An appropriate marketing mix for a particular product or business AO2 AO4 The effectiveness of a marketing mix in achieving marketing objectives AO3 The difference between target markets and market segments AO2 Possible target markets and market segments in a given situation AO4 The difference between niche market and mass market AO2 How organizations target and segment their market and create consumer profiles AO2 A product position map perception map AO2 AO4 The importance of having a unique selling point proposition USP AO2 How organizations can differentiate themselves and their products from competitors AO3 40 Business management guide

Syllabus content SL HL content Depth of teaching HL only Depth of teaching Up to four part moving average sales trends and forecast including seasonal cyclical and random variation using given data AO4 The benefits and limitations of sales forecasting AO3 4 3 Sales forecasting HL only 4 4 Market research Why and how organizations carry out market research AO2 The following methods techniques of primary market research AO2 surveys interviews focus groups observations The following methods techniques of secondary market research market analyses academic journals government publications AO2 media articles Ethical considerations of market research AO3 The difference between qualitative and quantitative research AO2 The following methods of sampling AO2 quota random stratified cluster snowballing convenience Results from data collection Business management guide AO2 41

Syllabus content SL HL content Depth of teaching HL only Depth of teaching 4 5 The four Ps product price promotion place Product The product life cycle AO4 The relationship between the product life cycle and the marketing mix AO2 Extension strategies AO3 The relationship between the product life cycle investment profit and cash flow AO2 Boston Consulting Group BCG matrix on an organization s products AO3 AO4 The following aspects of branding AO2 awareness development loyalty value The importance of branding AO3 The importance of packaging AO3 Price The appropriateness of the following pricing strategies cost plus mark up penetration skimming psychological loss leader price discrimination price leadership AO3 predatory 42 Business management guide

Syllabus content SL HL content Depth of teaching HL only Depth of teaching Promotion The following aspects of promotion above the line promotion below the line promotion AO2 promotional mix The impact of changing technology on promotional strategies such as viral marketing social media marketing and social networking AO3 Guerrilla marketing and its effectiveness as a promotional method AO3 Place The importance of place in the marketing mix AO2 The effectiveness of different types of distribution channels AO3 4 6 The extended marketing mix of seven Ps HL only People The importance of employee customer relationships in marketing a service and cultural variation in these relationships AO3 Processes The importance of delivery processes in marketing mix a service and changes in these processes AO3 Physical evidence The importance of tangible physical evidence in marketing a service The seven Ps model in a servicebased market Business management guide AO3 AO2 43

Syllabus content SL HL content Depth of teaching HL only Depth of teaching Methods of entry into international markets AO2 The opportunities and threats posed by entry into international markets AO3 The strategic and operational implications of international marketing AO3 The role of cultural differences in international marketing AO3 The implications of globalization on international marketing AO3 4 7 International marketing HL only 4 8 E commerce Features of e commerce AO1 The effects of changing technology and e commerce on the marketing mix AO2 The difference between the following types of e commerce AO2 business to business B2B business to consumer B2C consumer to consumer C2C The costs and benefits of e commerce to firms and consumers 44 AO3 Business management guide

Syllabus content Theory of knowledge suggested links The four Ps and seven Ps frameworks suggest that marketing has four or seven aspects all of which can be described with a word that starts with a P How helpful are such analytical frameworks to you as a knowledge seeker Many ads use scientific language What does this tell us about the hierarchy of different areas of knowledge The observer effect is a common problem in the social sciences whereby knowledge of being researched influences how people answer questions and behave What problems does the observer effect create for market research In market research how might the language used in polls and questionnaires influence consumers and businesses conclusions Is it possible to measure brand loyalty To what extent is consumer behaviour rational Is the decision to develop CSR objectives solely a marketing strategy To what extent are marketing practices a reflection of the values of a given time and culture Business management guide 45

Syllabus content Unit 5 Operations management In this unit students return to the fundamental rationale of business management to make goods and services that meet consumers needs and wants Without efficient operations leading to products and experiences customers are satisfied with success in the other business functions is unsustainable In unit 5 students learn how organizations manage their operations whether in terms of achieving an optimal cost quality ratio or the shortest supply chain using the most ethical means or the latest innovative techniques or applying the highest levels of quality assurance Unit 5 is the part of the business management course where the relative weight of the HL material is greatest Both SL and HL students look at different production methods and their implications as well as different ways of organizing production At HL students explore additional areas such as lean production quality management and research and development Operations management is the how to of business management Still it ties intimately to the what question of an organization s objectives unit 1 a new strategic direction means adjustments in operations Good human resource management at all levels in an organization in turn is a pre requisite of successful operations unit 2 Cooperation between marketing with the closest relation to customers and operations which put new ideas into practice is also significant unit 4 Unit 5 can be taught through case studies in a variety of settings visits to factories or service businesses are a good way to make the topic come alive This unit has a very concrete dimension that invites students to explore and understand the importance of manufacturing and other types of operations bringing the other units of the course together in a dynamic way The nature of operations is varied and rapidly evolving across industries and locations and thus there are plenty of opportunities to explore the concepts of change culture ethics globalization and innovation SL HL content Depth of teaching HL only Depth of teaching 5 1 The role of operations management Operations management and its relationship with other business functions AO1 Operations management in organizations producing goods and or services AO2 Operations management strategies and practices for ecological social human resource and economic sustainability AO3 46 Business management guide

Syllabus content SL HL content Depth of teaching HL only Depth of teaching 5 2 Production methods The following production methods job customized production batch production mass flow process production AO2 cellular manufacturing The most appropriate method of production for a given situation AO3 5 3 Lean production and quality management HL only The following features of lean production less waste AO1 greater efficiency The following methods of lean production continuous improvement kaizen just in time JIT kanban AO2 andon Features of cradle to cradle design and manufacturing AO2 Features of quality control and quality assurance AO1 The following methods of managing quality AO2 quality circle benchmarking total quality management TQM The impact of lean production and TQM on an organization The importance of national and international quality standards Business management guide AO3 AO2 47

Syllabus content SL HL content Depth of teaching HL only Depth of teaching The supply chain process AO2 The difference between JIT and just in case JIC AO2 Stock control charts based on the following AO2 AO4 5 4 Location The reasons for a specific location of production AO2 The following ways of reorganizing production both nationally and internationally AO3 outsourcing subcontracting offshoring insourcing 5 5 Production planning HL only lead time buffer stock re order level re order quantity Capacity utilization rate AO2 AO4 Productivity rate AO2 AO4 Cost to buy CTB AO2 AO4 Cost to make CTM AO2 AO4 The importance of research and development for a business AO3 The importance of developing goods and services that address customers unmet needs of which the customers may or may not be aware AO2 5 6 Research and Development HL only 48 Business management guide

Syllabus content SL HL content Depth of teaching HL only Depth of teaching The following types of innovation AO2 product process positioning paradigm The difference between adaptive creativity adapting something that exists and innovative creativity creating something new AO2 How pace of change in an industry organizational culture and ethical considerations may influence research and development practices and strategies in an organization AO3 5 7 Crisis management and contingency planning HL only The difference between crisis management and contingency planning AO2 The following factors that affect effective crisis management AO2 Transparency Communication Speed Control The following advantages and disadvantages of contingency planning for a given organization or situation Time Risks Business management guide Cost AO2 Safety 49

Syllabus content Theory of knowledge suggested links Is there a difference between a product that consumers perceive to be of good quality and one that businesses know is What ethical dilemmas does the information advantage businesses have over consumers pose Is there such a thing as an optimal production method What evidence and whose experiences could business leaders look at to decide on this Environmental costs of production are often referred to as externalities as they harm third parties How does our formulation of problems affect our sense of responsibility for solving them What ways of knowing do you think business leaders use in deciding where to locate their production What is the role of creativity imagination and emotion in a business context Can one make an argument that the more people s needs and wants are met the more difficult innovation is 50 Is a quality product always more expensive to manufacture or buy than a mediocre product How does time perspective affect our assessment of such statements Can a business plan for a crisis Business management guide

Assessment Assessment outline SL First assessment 2016 Assessment component Weighting External assessment 3 hours 75 Paper 1 1 hour and 15 minutes Based on a case study issued in advance with additional unseen material included in section B 35 Assessment objectives 1 2 3 4 50 marks Section A Syllabus content Units 1 5 Students answer three of four structured questions 10 marks per question Section B Syllabus content Units 1 5 Students answer one compulsory structured question 20 marks Paper 2 1 hour and 45 minutes Assessment objectives 1 2 3 4 60 marks 40 Section A Syllabus content Units 1 5 Students answer one of two structured questions based on stimulus material with a quantitative focus 20 marks Section B Syllabus content Units 1 5 Students answer one of three structured questions based on stimulus material 20 marks Section C Syllabus content Units 1 5 Students answer one of three extended response questions This question is based primarily on two concepts that underpin the course 20 marks Internal assessment 15 teaching hours 25 This component is internally assessed by the teacher and externally moderated by the IB at the end of the course Written commentary Students produce a written commentary based on three to five supporting documents about a real issue or problem facing a particular organization Maximum 1500 words 25 marks Business management guide 53

Assessment Assessment outline HL First assessment 2016 Assessment component Weighting External assessment 4 hours and 30 minutes 75 Paper 1 2 hour and 15 minutes Based on a case study issued in advance with additional unseen material included in sections B and C 35 Assessment objectives 1 2 3 4 70 marks Section A Syllabus content Units 1 5 including HL extension topics Students answer three of four structured questions 10 marks per question Section B Syllabus content Units 1 5 including HL extension topics Students answer one compulsory structured question 20 marks Section C Syllabus content Units 1 5 including HL extension topics Students answer one compulsory extended response question primarily based on HL extension topics 20 marks Paper 2 2 hour and 15 minutes Assessment objectives 1 2 3 4 80 marks 40 Section A Syllabus content Units 1 5 including HL extension topics Students answer one of two structured question based on stimulus material with a quantitative focus 20 marks Section B Syllabus content Units 1 5 including HL extension topics Students answer two of three structured questions based on stimulus material 20 marks per question Section C Syllabus content Units 1 5 including HL extension topics Students answer one of three extended response questions This question is based primarily on two concepts that underpin the course 20 marks 54 Business management guide

Assessment outline HL Assessment component Internal assessment 30 teaching hours Weighting 25 This component is internally assessed by the teacher and externally moderated by the IB at the end of the course Research project Student s research and rep or t on an issue f acing an organiz ation or a decision to be made by an organiz ation or several organiz ations Maximum 2000 words 25 marks Business management guide 55

Assessment External assessment Three different methods are used to assess students Analytic markschemes Markbands Assessment criteria supported by marking notes for paper 1 and paper 2 extended response questions For both examination papers there are analytic markschemes markbands and assessment criteria The assessment criteria for paper 1 and paper 2 extended response questions are supported by marking notes The markbands and assessment criteria are related to the assessment objectives established for the business management course and the individuals and societies grade descriptors and are published in this guide The analytic markschemes and marking notes are specific to each examination and are published separately in a markscheme document Written papers The external assessment of the Diploma Programme business management course consists of two examination papers at SL and at HL that are externally set and externally marked They are designed to allow students to demonstrate their competencies in relation to the business management assessment objectives All questions on the examination papers are based on specifications in this guide The external components contribute 75 to the final assessment at both SL and HL In common with all Diploma Programme examination papers students at SL and HL are given five minutes of reading time before they begin answering the papers Pre seen case study paper 1 The pre seen case study is provided by the IB well before the examination session Teachers are advised to spend no more than three weeks on the pre seen case study The teacher support material gives further guidance on appropriate preparatory work with the pre seen case study The pre seen case study is the same for SL and HL students although different questions could be set for each level The purpose of the pre seen case study is to assess in depth and across a number of topics the students ability to apply business management knowledge to a given situation Command terms Teachers and students must be familiar with the command terms used at each assessment objective level to understand the depth of treatment required in examination questions Cognitive demands progress from AO1 to AO3 while AO4 terms are specific to particular skills Examination questions may use any command term from the assessment objective level specified in the Syllabus content section or a less demanding command term from a lower level For example if the 56 Business management guide

External assessment assessment objective level for a topic is AO2 an examination question could contain any of the command terms for AO2 such as explain distinguish interpret and so forth Alternatively the examination question could contain a command term from AO1 such as describe However a more demanding command term such as evaluate from a higher level AO3 in this case cannot be used The command terms used in each question or part thereof indicate the depth required The command terms are organized by assessment objective level in the Assessment objectives section earlier in the guide and defined in the Glossary of command terms in the appendix Use of examples and case studies In order to be awarded marks in the higher markbands and levels of assessment criteria students are expected where appropriate to refer to the stimulus material provided in examinations use case studies and illustrate their answers with examples This way they highlight their understanding of how business management tools techniques and theories operate in practice Where the stimulus material case studies and examples are referred to students should not simply state the information but rather offer some explanation of how it relates to the question asked Use of business management terms Students are expected to demonstrate the ability to appropriately define use and apply the business management terms included in the Syllabus content section Use of calculators While all questions requiring a calculator can be answered fully using a four function plus minus multiply divide calculator graphic display calculators GDCs are allowed during the examination Teachers and schools must adhere to the regulations regarding the use of electronic calculators in examinations and students must be made aware of these This information can be found in the relevant section of the Handbook of procedures for the Diploma Programme Business management guide 57

External assessment External assessment details SL Paper 1 Duration 1 hour 15 minutes Weighting 35 This paper is divided into two sections both based on the IB prescribed pre seen case study issued to students well before the examination Section A and some parts of section B may be common to both SL and HL students Students are expected to demonstrate the following assessment objectives Assessment objective Section A Section B 1 Demonstrate knowledge and understanding X X 2 Demonstrate application and analysis X X 3 Demonstrate synthesis and evaluation 4 Demonstrate a variety of appropriate skills X X X Section A Questions in this section are drawn from units 1 to 5 of the syllabus and refer to the prescribed preseen case study Students answer three structured questions in total from a choice of four The questions are each subdivided into parts The command terms used in each part indicate the depth required The questions may require knowledge and understanding application and analysis and a variety of appropriate skills The marks available for each part are indicated on the examination paper Each question is worth 10 marks Section A is worth a total of 30 marks Section B The questions in this section are drawn from units 1 to 5 of the syllabus New stimulus material based on the prescribed pre seen case study is given in the examination paper Students answer one compulsory structured question The question is subdivided into parts The command terms used in each part indicate the depth required The questions may require knowledge and understanding application and analysis synthesis and evaluation and a variety of appropriate skills The marks available for each part are indicated on the examination paper 58 Business management guide

External assessment Section B is worth a total of 20 marks Marks are allocated using a combination of an analytic markscheme and markbands Overall the maximum for paper 1 is 50 marks Paper 2 Duration 1 hour and 45 minutes Weighting 40 This paper is divided into three sections The structure of this paper is the same as HL paper 2 However questions may be the same as similar to or different from those used for the HL paper SL students answer fewer questions Students are expected to demonstrate the following assessment objectives Assessment objective Section A Section B Section C 1 Demonstrate knowledge and understanding X X X 2 Demonstrate application and analysis X X X 3 Demonstrate synthesis and evaluation X X X 4 Demonstrate a variety of appropriate skills X X X Section A While the principal focus of questions in this section will be unit 3 students are also examined on other topics of the syllabus The questions have a quantitative focus Students answer one structured question based on unseen stimulus material from a choice of two The questions are subdivided into parts The command terms used in each part indicate the depth required The questions may require knowledge and understanding application and analysis synthesis and evaluation and a variety of appropriate skills The marks available for each part are indicated on the examination paper Each question is worth 20 marks Section A is worth a total of 20 marks Section B The questions in this section are drawn from units 1 to 5 of the syllabus Students answer one structured question based on unseen stimulus material from a choice of three Business management guide 59

External assessment The question is subdivided into parts The command terms used in each part indicate the depth required The questions may require knowledge and understanding application and analysis synthesis and evaluation and a variety of appropriate skills The marks available for each part are indicated on the examination paper Each question is worth 20 marks Section B is worth a total of 20 marks For sections A and B marks are allocated using a combination of an analytic markscheme and markbands 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 at least 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 responses must not be the case study organization featured in paper 1 The response should consider the perspectives of individuals and societies on which the real world organization impacts Students answer one extended response question from a choice of three Assessment objective level 3 AO3 command terms are used in the questions The questions require knowledge and understanding application and analysis synthesis and evaluation and a variety of appropriate skills Each question is worth 20 marks Section C is worth a total of 20 marks For section C marks are allocated using assessment criteria Marking notes included in the markscheme give additional guidance on how to apply the assessment criteria Overall the maximum for paper 2 is 60 marks External assessment details HL Paper 1 Duration 2 hours 15 minutes Weighting 35 This paper is divided into three sections each based on the IB prescribed pre seen case study issued to students well before the examination Section A and some parts of section B may be common to both SL and HL students 60 Business management guide

External assessment Students are expected to demonstrate the following assessment objectives Assessment objective Section A Section B Section C 1 Demonstrate knowledge and understanding X X X 2 Demonstrate application and analysis X X X 3 Demonstrate synthesis and evaluation X X 4 Demonstrate a variety of appropriate skills X X X Section A Questions in this section are drawn from units 1 to 5 which could include the HL extension of the syllabus and refer to the prescribed pre seen case study Students answer three structured questions in total from a choice of four Each question is subdivided into parts The command terms used in each question indicate the depth required The questions may require knowledge and understanding application and analysis and a variety of appropriate skills The marks available for each part are indicated on the examination paper Each question is worth 10 marks Section A is worth a total of 30 marks Section B The questions in this section are drawn from units 1 to 5 including the HL extension of the syllabus New stimulus material based on the prescribed pre seen case study is given in the examination paper Students answer one compulsory structured question The question is subdivided into parts The command terms used in each part indicate the depth required The questions may require knowledge and understanding application and analysis synthesis and evaluation and a variety of appropriate skills The marks available for each part are indicated on the examination paper Section B question is worth a total of 20 marks For sections A and B marks are allocated using a combination of an analytic markscheme and markbands Business management guide 61

External assessment Section C The questions in this section are drawn from units 1 to 5 of the syllabus with a principal focus on the HL extension topics New stimulus material based on the prescribed case study will be given in the examination paper The response should consider the perspectives of individuals and societies that the organization in the prescribed case study impacts upon Students answer one compulsory extended response question Assessment objective level three AO3 command terms are used in the questions The questions require knowledge and understanding application and analysis synthesis and evaluation and a variety of appropriate skills Each question is worth 20 marks Section C is worth a total of 20 marks For section C marks are allocated using assessment criteria Marking notes included in the markscheme give additional guidance on how to apply the assessment criteria Overall the maximum for paper 1 is 70 marks Paper 2 Duration 2 hours 15 minutes Weighting 40 This paper is divided into three sections The structure of this paper is the same as SL paper 2 However questions may be the same as similar to or different from those used for the SL paper HL students answer more questions Students are expected to demonstrate the following assessment objectives Assessment objective Section A Section B Section C 1 Demonstrate knowledge and understanding X X X 2 Demonstrate application and analysis X X X 3 Demonstrate synthesis and evaluation X X X 4 Demonstrate a variety of appropriate skills X X X Section A While the principal focus of questions in this section is unit 3 students are also examined on other core and HL extension topics of the syllabus The questions have a quantitative focus 62 Business management guide

External assessment Students answer one structured question based on unseen stimulus material from a choice of two The question is subdivided into parts The command terms used in each part indicate the depth required The questions may require knowledge and understanding application and analysis synthesis and evaluation and a variety of appropriate skills The marks available for each part are indicated on the examination paper Each question is worth 20 marks Section A is worth a total of 20 marks Section B The questions in this section are drawn from units 1 to 5 and HL extension of the syllabus Students answer two structured questions based on stimulus material from a choice of three The questions are each subdivided into parts The command terms used in each part indicate the depth required The questions may require knowledge and understanding application and analysis synthesis and evaluation and a variety of appropriate skills The marks available for each part are indicated on the examination paper Each question is worth 20 marks Section B is worth a total of 40 marks For sections A and B marks are allocated using a combination of an analytic markscheme and markbands 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 including the HL extension 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 are used in each question Each question requires knowledge and understanding application and analysis synthesis and evaluation and a variety of appropriate skills Each question is worth 20 marks Section C is worth a total of 20 marks For section C marks are allocated using assessment criteria Marking notes included in the markscheme give additional guidance on how to apply the assessment criteria Overall the maximum for paper 2 is 80 marks Business management guide 63

External assessment External assessment markbands SL and HL In addition to an analytic markscheme specific to the question paper markbands are used to allocate marks in sections A and B for questions where a larger number of marks are available Markbands are used in paper 1 SL HL sections A and B paper 2 SL HL sections A and B SL and HL Paper 1 Section A Marks 0 1 2 Level descriptor The work does not reach a standard described by the descriptors below Little use of business management terminology Little reference to the stimulus material A description or partial analysis of some relevant issues with some use of business management tools where applicable techniques and theories Some use of appropriate terminology Some reference to the stimulus material that goes beyond the name of a person s and or the name of the organization At the lower end of the markband responses are mainly theoretical An analysis of the relevant issues with good use of business management tools where applicable techniques and theories Use of appropriate terminology throughout the response 5 6 Little knowledge and understanding of relevant issues and business management tools where applicable techniques and theories 3 4 Effective use of the stimulus material SL and HL Paper 1 Section B and SL and HL Paper 2 Sections A and B Marks 0 1 2 Level descriptor The work does not reach a standard described by the descriptors below Few business management tools where applicable techniques and theories are explained or applied and business management terminology is lacking Little reference to the stimulus material Some understanding of the demands of the question Some relevant business management tools where applicable techniques and theories are explained or applied and some appropriate terminology is used 64 Little understanding of the demands of the question 3 4 Some reference to the stimulus material but often not going beyond the name of a person s and or the name of the organization Business management guide

External assessment Marks 5 6 Level descriptor Relevant business management tools where applicable techniques and theories are explained and applied and appropriate terminology is used most of the time Some reference to the stimulus material that goes beyond the name of a person s and or the name of the organization Some evidence of a balanced response Some judgments are relevant but not substantiated Good understanding of the demands of the question Relevant business management tools where applicable techniques and theories are explained and applied well and appropriate terminology is used Good reference to the stimulus material Good evidence of a balanced response The judgments are relevant but not always well substantiated Good understanding of the demands of the question including implications where relevant Relevant business management tools where applicable techniques and theories are explained clearly and applied purposefully and appropriate terminology is used throughout the response Effective use of the stimulus material in a way that significantly strengthens the response Evidence of balance is consistent throughout the response 9 10 Understanding of most of the demands of the question 7 8 The judgments are relevant and well substantiated External assessment criteria SL and HL Assessment criteria are used to allocate marks for extended response questions in HL paper 1 section C SL paper 2 section C HL paper 2 section C HL paper 1 section C There are five assessment criteria for this question type Criterion A Knowledge and understanding of tools techniques and theories Criterion B Application Criterion C Reasoned arguments Criterion D Structure Criterion E Individual and societies Business management guide 65

External assessment Criterion A Knowledge and understanding of tools techniques and theories This criterion addresses the extent to which the student demonstrates knowledge and understanding of relevant business management tools techniques and theories as stated and or implied by the question This includes using appropriate business management terminology Marks Level descriptor 0 The work does not reach a standard described by the descriptors below 1 Superficial knowledge of relevant tools techniques and theory is demonstrated 2 Satisfactory knowledge and understanding of relevant tools techniques and theories is demonstrated 3 Good knowledge and understanding of relevant tools techniques and theories is generally demonstrated though the explanation may lack some depth or breadth 4 Good knowledge and understanding of relevant tools techniques and theories is demonstrated Criterion B Application This criterion addresses the extent to which the student is able to apply the relevant business management tools techniques and theories to the case study organization Marks Level descriptor 0 1 The relevant business management tools techniques and theories are connected to the case study organization but this connection is inappropriate or superficial 2 The relevant business management tools techniques and theories are appropriately connected to the case study organization but this connection is not developed 3 The relevant business management tools techniques and theories are generally well applied to explain the situation and issues of the case study organization though the explanation may lack some depth or breadth Examples are provided 4 66 The work does not reach a standard described by the descriptors below The relevant business management tools techniques and theories are well applied to explain the situation and issues of the case study organization Examples are appropriate and illustrative Business management guide

External assessment Criterion C Reasoned arguments This criterion assesses the extent to which the student makes reasoned arguments This includes making relevant and balanced arguments by for example exploring different practices weighing up their strengths and weaknesses comparing and contrasting them or considering their implications depending on the requirements of the question It also includes justifying the arguments by presenting evidence for the claims made Marks Level descriptor 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 Criterion D Structure This criterion assesses the extent to which the student organizes his or her ideas with clarity and presents a structured piece of writing comprised of an introduction a body a conclusion fit for purpose paragraphs Marks Level descriptor 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 Business management guide 67

External assessment Criterion E Individuals and societies This criterion assesses the extent to which the student is able to give balanced consideration to the perspectives of a range of relevant stakeholders including individuals and groups internal and external to the organization Marks Level descriptor 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 SL and HL paper 2 section C There are five assessment criteria for this question type Criterion A Knowledge and conceptual understanding Criterion B Application Criterion C Reasoned arguments Criterion D Structure Criterion E Individuals and societies Criterion A Knowledge and conceptual understanding This criterion addresses the extent to which the student demonstrates knowledge and understanding of the given concepts and relevant business management content theories techniques or tools depending on the requirements of the question Marks Level descriptor 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 Criterion B Application 68 Business management guide

External assessment This criterion addresses the extent to which the student is able to apply the given concepts and the relevant business management content theories techniques or tools depending on the requirements of the question to his or her chosen real world organization s The real world organization s must not be the organization featured in the prescribed case study for paper 1 Marks Level descriptor 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 and illustrative Criterion C Reasoned arguments This criterion assesses the extent to which the student makes reasoned arguments This includes making relevant and balanced arguments by for example exploring different practices weighing up their strengths and weaknesses comparing and contrasting them or considering their implications depending on the requirements of the question It also includes justifying the arguments by presenting reasonable evidence or other support for the claims made Marks Level descriptor 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 Business management guide 69

External assessment Criterion D Structure This criterion assesses the extent to which the student organizes his or her ideas with clarity and presents a structured piece of writing comprised of an introduction a body a conclusion fit for purpose paragraphs Marks Level descriptor 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 Criterion E Individuals and societies This criterion assesses the extent to which the student is able to give balanced consideration to the perspectives of a range of relevant stakeholders including individuals and groups internal and external to the organization Marks Level descriptor 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 Please see marking notes in markschemes for further support in assessing these questions 70 Business management guide

Assessment Internal assessment Purpose of internal assessment Internal assessment is an integral part of the course and is compulsory for both SL and HL students It enables students to demonstrate the application of their skills and knowledge and to pursue their personal interests without the time limitations and other constraints that are associated with written examinations The internal assessment should as far as possible be woven into normal classroom teaching and not be a separate activity conducted after a course has been taught The internal assessment requirements at SL and at HL are different for the business management course The SL internal assessment is a written commentary and the HL internal assessment is a research project Guidance and authenticity The written commentary SL and research project HL submitted for internal assessment must be the students own work However it is not the intention that students should decide upon a title or topic and be left to work on the internal assessment component without any further support from the teacher The teacher should play an important role during both the planning stage and the period when the student is working on the internally assessed work It is the responsibility of the teacher to ensure that students are familiar with the requirements of the type of work to be internally assessed the assessment criteria students must understand that the work submitted for assessment must address these criteria effectively Teachers and students must discuss the internally assessed work Students should be encouraged to initiate discussions with the teacher to obtain advice and information and students must not be penalized for seeking guidance As part of the learning process teachers should read and give advice to students on one draft of the work The teacher should provide oral or written advice on how the work could be improved but must not edit the draft The next version handed to the teacher must be the final version for submission It is the responsibility of teachers to ensure that all students understand the basic meaning and significance of concepts that relate to academic honesty especially authenticity and intellectual property Teachers must ensure that all student work for assessment is prepared according to the requirements and must explain clearly to students that the internally assessed work must be entirely their own Where collaboration between students is permitted it must be clear to all students what the difference is between collaboration and collusion All work submitted to the IB for moderation or assessment must be authenticated by a teacher and must not include any known instances of suspected or confirmed malpractice Each student must confirm that the work is his or her authentic work and constitutes the final version of that work Once a student has officially submitted the final version of the work it cannot be retracted The requirement to confirm the authenticity of work applies to the work of all students not just the sample work that will be submitted to the IB for the purpose of moderation For further details refer to the IB publication Academic honesty The Diploma Programme From principles into practice and the relevant articles in the General regulations Diploma Programme Business management guide 71

Internal assessment Authenticity may be checked by discussion with the student on the content of the work and scrutiny of one or more of the following the student s initial proposal the first draft of the written work the references cited the style of writing compared with work known to be that of the student the analysis of the work by a web based plagiarism detection service such as turnitin com The same piece of work cannot be submitted to meet the requirements of both the internal assessment and the extended essay Time allocation Internal assessment is an integral part of the business management course contributing 25 to the final assessment in the SL and the HL courses This weighting should be reflected in the time that is allocated to teaching the knowledge skills and understanding required to undertake the work as well as the total time allocated to carry out the work It is recommended that a total of approximately 15 hours SL and 30 hours HL of teaching time should be allocated to the work This should include time for the teacher to explain to students the requirements of the internal assessment class time for students to work on the internal assessment component and ask questions time for consultation between the teacher and each student time to review and monitor progress and to check authenticity Requirements and recommendations It is important for the integrity of the moderation process that the internal assessment by the teacher is based on the same evidence as that available to the moderator When there is more than one teacher teaching students in this component internal standardization must take place Using assessment criteria for internal assessment For internal assessment a number of assessment criteria have been identified Each assessment criterion has level descriptors describing specific achievement levels together with an appropriate range of marks The level descriptors concentrate on positive achievement although for the lower levels failure to achieve may be included in the description Teachers must judge the internally assessed work at SL and at HL against the criteria using the level descriptors Different assessment criteria are provided for SL and HL The aim is to find for each criterion the descriptor that conveys most accurately the level attained by the student using the best fit model A best fit approach means that compensation should be made when a piece of work matches different aspects of a criterion at different levels The mark awarded should be one that most fairly reflects the balance of achievement against the criterion It is not necessary for every single aspect of a level descriptor to be met for that mark to be awarded 72 Business management guide

Internal assessment When assessing a student s work teachers should read the level descriptors for each criterion until they reach a descriptor that most appropriately describes the level of the work being assessed If a piece of work seems to fall between two descriptors both descriptors should be read again and the one that more appropriately describes the student s work should be chosen Where there are two or more marks available within a level teachers should award the upper marks if the student s work demonstrates the qualities described to a great extent the work may be close to achieving marks in the level above Teachers should award the lower marks if the student s work demonstrates the qualities described to a lesser extent the work may be close to achieving marks in the level below Only whole numbers should be recorded partial marks fractions and decimals are not acceptable Teachers should not think in terms of a pass or fail boundary but should concentrate on identifying the appropriate descriptor for each assessment criterion The highest level descriptors do not imply faultless performance but should be achievable by a student Teachers should not hesitate to use the extremes if they are appropriate descriptions of the work being assessed A student who attains a high achievement level in relation to one criterion will not necessarily attain high achievement levels in relation to the other criteria Similarly a student who attains a low achievement level for one criterion will not necessarily attain low achievement levels for the other criteria Teachers should not assume that the overall assessment of the students will produce any particular distribution of marks It is recommended that the assessment criteria be made available to students Internal assessment details SL Written commentary Duration 15 hours Weighting 25 Introduction The SL internal assessment is a written commentary that allows students to demonstrate the application of business management tools techniques and theories to a business issue or problem Requirements SL students are required to select a real business issue or problem for their written commentary that must relate to the SL syllabus refer directly to a single business organization but may consider industry wide issues that impact on that organization base their written commentary on secondary research selected for its suitability depth and breadth Primary research may be used as support provide a title for the commentary that to give focus and direction must be framed as a question produce a written commentary that does not exceed 1 500 words attach to the commentary three to five supporting documents from which the majority of the information for the commentary has been obtained fully reference all supporting documents and additional sources and include them in a bibliography Business management guide 73

Internal assessment Role of teacher s guidance With the teacher s support students should choose an issue or problem for investigation and develop a title in the form of a question The teacher should approve the students questions before work is started to ensure that they are suitable for investigation and allow access to all levels of the assessment criteria It is highly advisable that every student is supplied with a copy of the assessment criteria The teacher should also guide students in the selection of appropriate supporting documents Throughout the internal assessment process students and the teacher should engage in dialogue supportive of the students work The teacher should comment on students work plans and first draft of the commentary as part of the learning process If more than one student chooses the same organization for their research it is the responsibility of the teacher to ensure that the written commentaries reflect the students own individual research interpretation and analysis If a student also writes an extended essay in business management it is the responsibility of the teacher to ensure that students do not build their internal assessment and extended essay in business management on the same syllabus content Also given different requirements and assessment criteria students should choose different organizations for these different tasks Examples of appropriate questions Examples of appropriate questions for the written commentary might be Can airline X successfully target segment Y The commentary could then examine business management topics such as market segmentation consumer profiling promotion and measure of financial success Should company Y outsource its manufacturing The commentary could then examine areas within business management such as operations management and human resource management Supporting documents The selection of supporting documents is very important To achieve the highest levels of each assessment criterion it is strongly recommended that the supporting documents present a range of ideas and views For example the selection of three to five documents published by a single company or three to five surveys of similar populations would not provide balance or objectivity The supporting documents must be of a contemporary nature and written within a maximum of three years prior to the submission of the written commentary to the IB Submission of the written commentary occurs in April or November of the final year of the course depending on the examination session of the school A maximum of one of the supporting documents may be a transcript of video audio material The transcript must summarize the essential points of the video audio file used for the purposes of the commentary Only video audio material published by a reliable organization such as the business organization itself an organization commissioned by the business or an NGO should be used Particular attention needs to be paid to referencing the original video audio file so that this may be traced The commentary must be based on secondary sources and may include primary data Examples of secondary sources include articles from the local national or international press business accounts business plans 74 Business management guide

Internal assessment extracts from company websites transcripts of a relevant audio visual file financial reports government and other statistics journal publications market research surveys mission statements web based surveys Examples of primary sources include responses to questionnaires students should include a blank copy of the questionnaire and a tally summary of results results of surveys transcripts of interviews and discussions with focus groups Students must select their own supporting documents which must not be provided to the student by the teacher Students must highlight the parts of each supporting document that relate directly to their commentary Any highlighted parts of supporting documents that are not in the language for which the student is registered must be translated Students should label each supporting document clearly such as Supporting document 1 Supporting document 2 and so on This will help with referencing in the commentary It is expected that students will include in text citations references of the supporting documents and a bibliography which should be formatted in an appropriate way Any additional sources such as textbooks and class notes must be referenced but will not be accepted as supporting documents Written commentary Although there is no required format for the written commentary it should nonetheless be a structured piece of well presented writing An introduction that sets the scene presentation analysis and discussion of findings and a conclusion that answers the commentary question provides an effective structure for the commentary Good presentation additionally requires a title page an accurate table of contents page appropriate headings and sub headings consistent referencing a complete bibliography and numbered pages The introduction should briefly demonstrate some background information about the business organization to give a clear outline of the issue or problem under investigation and to explain the methodology used to investigate this issue or problem In the body of the commentary findings from the supporting documents should be presented and analysed with the help of relevant business tools techniques and theories The findings should also be interpreted what main themes emerge from the analysis of the supporting documents and why and how are they helpful or not to answering the commentary question An evaluative approach to this discussion of findings should be pursued for example what are the strengths and weaknesses of the various positions on the issue or problem and what are their implications Business management guide 75

Internal assessment In the conclusion the commentary question should be explicitly answered The conclusion should not introduce facts or arguments that have not been discussed in previous sections of the commentary Rather it is good practice to include those aspects of the commentary question that have not been fully answered in the commentary or that might need further investigation in order to be judged more effectively For presentation of references and bibliography please see the information on acknowledging the ideas and work of another person in the The Diploma Programme section of this subject guide Word count The written commentary must not exceed 1 500 words A word count must be included as part of the commentary If the word limit is exceeded the teacher s assessment must be based on the first 1 500 words Note Moderators will not read beyond 1 500 words for the commentary The following are not included in the word count acknowledgments contents page tables of statistical data diagrams or figures equations formulae and calculations citations which if used must be in the body of the commentary references which if used must be in the footnotes endnotes bibliography Please note that footnotes endnotes may be used for references only Definitions of business management terms and quotations if used must be in the body of the work and are included in the word count Please note that citation is a shorthand method of making a reference in the body of the commentary which is then linked to the full reference in the bibliography Internal assessment criteria SL The SL business management written commentary is assessed against seven criteria that are related to the assessment objectives for the business management course When the work to be assessed has been read the descriptors for each criterion should be studied until a descriptor is reached that most appropriately describes the achievement level If a piece of work seems to fall between two descriptors both descriptors should be read again and the one that more appropriately describes the student s work chosen There are seven assessment criteria for the written commentary Criterion A Supporting documents Criterion B Choice and application of business tools techniques and theories Criterion C Choice and analysis of data and integration of ideas Criterion D Conclusions 76 Business management guide

Internal assessment Criterion E Evaluation Criterion F Structure Criterion G Presentation Criterion A Supporting documents This criterion assesses the extent to which the student selects three to five relevant supporting documents that address the issue or problem selected for commentary in appropriate depth and breadth The criterion also assesses whether the student s choice and presentation of the supporting documents meets formal requirements Marks Level descriptor 0 The work does not reach a standard described by the descriptors below 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 sufficiently in depth 4 The supporting documents are relevant sufficiently in depth and provide a range of ideas and views Criterion B Choice and application of tools techniques and theories This criterion assesses the extent to which the student chooses business management tools techniques and theories that are relevant to the issue or problem and applies these so that a greater insight into the situation of the organization ensues Marks Level descriptor 0 The work does not reach a standard described by the descriptors below 1 There is a limited selection of business management tools techniques and theories and these are not applied 2 There is a limited selection of business management tools techniques and theories and these are superficially applied 3 There is an appropriate selection of business management tools techniques and theories but these are superficially applied 4 There is an appropriate selection of business management tools techniques and theories and these are suitably applied 5 There is an appropriate selection of business management tools techniques and theories and these are skillfully applied Business management guide 77

Internal assessment Criterion C Choice and analysis of data and integration of ideas This criterion assesses the extent to which the student uses data from the supporting documents effectively in order to understand and explain the issue or problem and is able to integrate ideas coherently Marks Level descriptor 0 The work does not reach a standard described by the descriptors below 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 Criterion D Conclusions This criterion assesses the extent to which the student is able to draw relevant conclusions based on the analysis of the supporting documents and answer the commentary question Marks Level descriptor 0 The work does not reach a standard described by the descriptors below 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 Criterion E Evaluation This criterion assesses the extent to which the student evaluates his or her arguments and makes judgments that are well substantiated Marks Level descriptor 0 1 There is limited evidence of evaluation 2 There is evidence of evaluation and some judgments are substantiated 3 There is evidence of evaluation and judgments are substantiated 4 78 The work does not reach a standard described by the descriptors below There is thorough evidence of evaluation and judgments are well substantiated Business management guide

Internal assessment Criterion F Structure This criterion assesses the extent to which the student organizes his or her ideas into a structured commentary with an argument that is easy to follow Marks Level descriptor 0 The work does not reach a standard described by the descriptors below 1 Limited structure 2 Appropriate structure Criterion G Presentation This criterion assesses the extent to which the student presents the written commentary well This involves a title page an accurate table of contents appropriate headings and sub headings consistent referencing a complete bibliography and numbered pages Marks Level descriptor 0 The work does not reach a standard described by the descriptors below 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 Internal assessment details HL Research project Duration 30 hours Weighting 25 Introduction The HL internal assessment is a research project that allows students to demonstrate the application of their skills and knowledge to business issues or decision making Requirements HL students are required to design and undertake research that either addresses an issue facing a business organization or a range of organizations or analyses a decision to be made by a business organization or range of organizations select a real business organization or a range of organizations and a real issue or decision under investigation base their research project on primary research they gather from the organization investigated secondary research may be used as support provide a title for the research project that to give focus and direction must be framed as a question produce a research proposal of maximum 500 words including an action plan to be used as the primary planning document Business management guide 79

Internal assessment produce a written report that does not exceed 2 000 words write the report in a style and format of a useful working document for management Choice of research topic and organization Students should with the teacher s guidance choose their own topic and organization that they find interesting and motivating The teacher should approve each topic before work is started and ensure that it complies with the requirements for internal assessment The research question should be forward looking targeted at an issue or a decision still relevant for the business organization s rather than descriptive of something already finished and should require the student to make recommendations for further action Guidance from the teacher in formulating an appropriate research question is important For a variety of reasons not apparent at the start of the project such as confidentiality some organizations fail to provide data which will undermine the quality of the final report Students must therefore confirm before starting their investigations that they will be able to obtain the necessary data from the chosen organization Students must be aware of ethical considerations when undertaking any research There is a need for tact sensitivity to other people and respect for confidentiality If more than one student chooses the same organization for their research it is the responsibility of the teacher to ensure that the written commentaries reflect the students own individual research interpretation and analysis If a student also writes an extended essay in business management it is the responsibility of the teachers to ensure that students do not build their internal assessment and extended essay in business management on the same syllabus content Also given different requirements and assessment criteria students should choose different organizations for these different tasks Research proposal The internal assessment must start with a research proposal This will become the primary planning document giving direction to the research project The maximum length of the research proposal is 500 words The word count must be stated on the submitted work If the word limit is exceeded the teacher s assessment must be based on the first 500 words of the proposal Note Moderators will not read beyond 500 words for the research proposal The research proposal has a required format consisting of four components Research question Proposed methodology including areas of the syllabus to be covered possible sources of information organizations and individuals to be approached methods to be used to collect and analyse data and the reason for choosing them 80 the rationale for study the order of activities and timescale of the project Business management guide

Internal assessment Anticipated difficulties such as limited or biased sources Action plan Students should use the research proposal as their primary planning document reviewing it regularly with the teacher and modifying or rewriting it as necessary should circumstances change The maximum achievement level for criterion A research proposal is 3 marks see Internal assessment criteria HL Students who fail to produce a research proposal will be awarded 0 marks for this criterion Written report The written report which follows the research proposal is the second part of the research project This will document the main findings of the research The report must follow acceptable practice in report presentation reflected in the required format for the written report shown below The written report must consist of the following sections Title page The title page should give a clear indication of the content of the research project including the name of the student the title of the project the intended audience and the word count Acknowledgements The acknowledgements should recognize any individual and or organization that made the production of the report possible Contents page The contents page should include the major headings in the report beginning with the executive summary Page numbers should be clearly indicated Executive summary abstract The executive summary should be a concise clear and explicit summary of the document including the recommendations and conclusions The research question and executive summary should guide the reader to the substance of the report The maximum length of the executive summary is 200 words and this is not included in the word count Introduction The introduction should demonstrate some background knowledge about the organization s and give a clear outline of the issue or decision under investigation Research question Methodology employed The methodology section should be a summary of the primary and where relevant secondary research undertaken and the business tools techniques and theories applied It should also include an assessment of the validity and reliability of the data collected for example partiality and scope and the methods employed Any changes made as the work progressed should be explained Main results and findings The main results and findings section should clarify what the raw data has revealed This should include a summary of the data collected and of the findings made and should where appropriate be supported by tables graphs and statistics Analysis and discussion In the analysis and discussion section the results and findings should be analysed with the help of relevant business tools techniques and theories They should also be interpreted what main issues emerge from the research and why and how are they helpful or not to answering the research question An evaluative approach to the discussion of findings should be pursued for example what are the strengths and weaknesses of the various positions on the issue or decision under investigation and what are their implications Conclusion s and recommendation s The conclusions should follow on from the analysis and discussion new facts or arguments should not be presented Recommendations should be precise answer the research question and be practical proposals for action that stem from the conclusions If the results of the research are inconclusive further research should be recommended To be of practical value to management the report should be forward looking and support the organization s decision making process Business management guide 81

Internal assessment References and bibliography For presentation of references and bibliography please see the section on acknowledging the ideas and work of another person in the The Diploma Programme section of this subject guide Appendices The appendices should contain only information or data that is required to support of the text and should be clearly referred to where relevant The appendices will typically include examples of photographs documents questionnaires numerical raw data in tables and statistical calculations The teacher should comment on students first drafts of the written report as part of the learning process Word count The written report must not exceed 2 000 words A word count must be included as part of the written report If the word limit is exceeded the teacher s assessment must be based on the first 2 000 words of the report Note Moderators will not read beyond 2 000 words for the written report The following are not included in the 2 000 word count title page acknowledgments contents page executive summary abstract tables of statistical data diagrams or figures equations formulae and calculations citations which if used must be in the body of the commentary references which if used must be in the footnotes endnotes bibliography appendices Please note that footnotes endnotes may be used for references only Definitions of business management terms and quotations if used must be in the body of the work and are included in the word count Please note that citation is a shorthand method of making a reference in the body of the commentary which is then linked to the full reference in the bibliography Internal assessment criteria HL The HL business management research project is assessed against nine criteria that are related to the assessment objectives for the business management course Criterion A refers to the research proposal while criteria B I are used to assess the written report When the work to be assessed has been read the descriptors for each criterion should be studied until a descriptor is reached that most appropriately describes the achievement level If a piece of work seems to fall between two descriptors both descriptors should be read again and the one that more appropriately describes the student s work chosen 82 Business management guide

Internal assessment There are nine assessment criteria for the research project Criterion A Research proposal Criterion B Sources and data Criterion C Use of tools techniques and theories Criterion D Analysis and evaluation Criterion E Conclusions Criterion F Recommendations Criterion G Structure Criterion H Presentation Criterion I Reflective thinking Criterion A Research proposal Please note Criterion A should be used to assess the research proposal only This criterion assesses the extent to which the student presents a research proposal that gives an effective direction for the project with all the required elements Marks Level descriptor 0 The work does not reach a standard described by the descriptors below 1 The research proposal is presented but is generally inappropriate or two or more elements are missing 2 The research proposal is generally appropriate but some elements lack clarity detail and focus or one element is missing 3 The research proposal with all the required elements is appropriate detailed clear and focused Criterion B Sources and data written report This criterion assesses the extent to which the student selects primary sources and collects data which address an issue or a decision to be made by an organization or a range of organizations in appropriate depth and breadth Marks Level descriptor 0 The work does not reach a standard described by the descriptors below 1 Some of the primary sources selected or the data collected are appropriate 2 The primary sources selected and the data collected are appropriate but are not varied and sufficient 3 The primary sources selected and the data collected are appropriate varied and sufficient Business management guide 83

Internal assessment Criterion C Use of tools techniques and theories written report This criterion assesses the extent to which the student understands and applies relevant business management tools techniques and theories so that a greater insight into the situation of the organization ensues Marks Level descriptor 0 The work does not reach a standard described by the descriptors below 1 There is a limited understanding of business management tools techniques and theories and these are not applied or are superficially applied 2 There is a satisfactory understanding of relevant business management tools techniques and theories and these are suitably applied 3 There is a good understanding of relevant business management tools techniques and theories and these are skillfully applied Criterion D Analysis and evaluation written report This criterion assesses the extent to which the student uses his or her results and findings effectively in order to explain the issue or decision to be made and is able to integrate his or her ideas coherently This criterion also assesses the extent to which the student evaluates his or her arguments and makes judgments that are well substantiated Marks Level descriptor 0 1 The results and findings are limited and no analysis of them is provided 2 The results and findings are limited and a superficial analysis of them is provided 3 There is a satisfactory analysis of the results and findings and some integration of ideas 4 There is a satisfactory analysis of the results and findings a satisfactory integration of ideas and some evidence of evaluation 5 There is a good analysis of the results and findings a good integration of ideas and evidence of substantiated evaluation 6 84 The work does not reach a standard described by the descriptors below There is a skillful analysis of the results and findings a coherent integration of ideas and consistent evidence of substantiated evaluation Business management guide

Internal assessment Criterion E Conclusions written report This criterion assesses the extent to which the student is able to draw relevant conclusions based on the analysis of the report Marks Level descriptor 0 The work does not reach a standard described by the descriptors below 1 There are some conclusions but they are unsubstantiated and or inconsistent with the evidence presented in the main body of the report 2 Conclusions are substantiated and consistent with the evidence presented in the main body of the report Areas for further study have been identified if appropriate Criterion F Recommendations written report This criterion assesses the extent to which the student is able to make substantiated recommendations that are consistent with the conclusions made and answer the research question Marks Level descriptor 0 The work does not reach a standard described by the descriptors below 1 There are recommendations but they are unsubstantiated and or inconsistent with the conclusions or they do not answer the research question 2 The recommendations are substantiated and consistent with the conclusions and they answer the research question Criterion G Structure written report This criterion assesses the extent to which the student organizes his or her ideas into a structured report with an argument that is easy to follow Marks Level descriptor 0 The work does not reach a standard described by the descriptors below 1 Limited structure 2 Appropriate structure Business management guide 85

Internal assessment Criterion H Presentation written report This criterion assesses the extent to which the student presents all the required components of the written report in the correct order and format Marks Level descriptor 0 The work does not reach a standard described by the descriptors below 1 The report is missing one or more of the required components or the components are not in the correct order or format 2 The report includes all of the required components in the correct order and format Criterion I Reflective thinking written report This criterion assesses the extent to which the student is able to reflect critically on their own work Marks Level descriptor 0 1 The report includes limited or superficial reflective thinking on the approach taken in this piece of research and its limitations 2 86 The work does not reach a standard described by the descriptors below The report includes appropriate evidence of reflective thinking on the approach taken in this piece of research and its limitations Business management guide

Appendices Formulae The following formulae will be used in business management external assessment A copy of the formulae will be provided to students for the examination Formulae for ratio analysis SL HL Profitability ratios SL HL Gross profit margin Net profit margin gross profit 100 sales revenue net profit before interest and tax 100 sales revenue Liquidity ratios SL HL Current ratio current assets current liabilities Acid test quick ratio current assets stock current liabilities Efficiency ratios SL HL Return on capital employed ROCE net profit before interest and tax 100 capital employed where capital employed loan capital or long term liabilities share capital retained profit Efficiency ratios HL only Stock turnover number of times cost of goods sold average stock or Stock turnover number of days average stock 365 cost of goods sold where cost of goods sold is an approximation of total credit purchases and average stock opening stock closing stock 2 Business management guide 87

Formulae Debtor days ratio number of days debtors 365 total sales revenue where total sales revenue is an approximation of total credit sales Creditor days ratio number of days creditors 365 cost of goods sold where cost of goods sold is an approximation of total credit purchases Gearing ratio loan capital 100 capital employed where capital employed loan capital or long term liabilities share capital retained profit Other forumulae SL HL Investment appraisal SL HL Average rate of return ARR total returns capital cost years of use 100 capital cost HL only Net present value NPV present values of return original cost Capacity utilization and productivity HL only Capacity utilization rate Productivity rate actual output 100 productive capacity total output 100 total input Cost to buy and cost to make HL only Cost to buy price quantity Cost to make costs variable costs quantity fixed 88 Business management guide

Formulae Discount tables HL only A discount table will be provided for students in the examination Years Discount rate 4 6 8 10 20 1 0 9615 0 9434 0 9259 0 9091 0 8333 2 0 9246 0 8900 0 8573 0 8264 0 6944 3 0 8890 0 8396 0 7938 0 7513 0 5787 4 0 8548 0 7921 0 7350 0 6830 0 4823 5 0 8219 0 7473 0 6806 0 6209 0 4019 6 0 7903 0 7050 0 6302 0 5645 0 3349 7 0 7599 0 6651 0 5835 0 5132 0 2791 8 0 7307 0 6271 0 5403 0 4665 0 2326 9 0 7026 0 5919 0 5002 0 4241 0 1938 10 0 6756 0 5584 0 4632 0 3855 0 1615 Business management guide 89

Formulae Presentation of balance sheet and profit and loss account SL HL Where balance sheets and profit and loss accounts are given in case studies or examination questions they will be presented in the format shown below Students should be familiar with these layouts Please note that while profit and loss account is also known as income statement the term profit and loss account will be used in assessment ABC Ltd Balance sheet as of 31 May 20 m m Fixed assets Fixed assets 500 Accumulated depreciation 20 Net fixed assets 480 Current assets Cash 10 Debtors 12 Stock 35 Total current assets 57 Current liabilities Overdraft 5 Creditors 15 Short term loans 22 Total current liabilities 42 Net current assets Working capital 15 Total assets less current liabilities 495 Long term liabilities debt 300 Net assets 195 Financed by share capital 110 retained profit 85 Equity 90 195 Business management guide

Glossary of command terms ABC Ltd Profit and loss account for ABC Ltd for the year ended 31 May 20 m Sales revenue 700 Cost of goods sold 350 Gross profit 350 Expenses 200 Net profit before interest and tax 150 Interest 10 Net profit before tax 140 Tax 25 Net profit after interest and tax 115 Dividends 35 Retained profit 80 Business management guide 91

Appendices Glossary of command terms Students should be familiar with the following key terms and phrases used in syllabus content and in examination questions which are to be understood as described below Although these terms will be used frequently in examination questions other terms may be used to direct students to present an argument in a specific way Command term Assessment objective level Definition Business management example Analyse AO2 Break down in order to bring out the essential elements or structure Analyse the impact of external opportunities and threats on the business strategy of company A Annotate AO4 Add brief notes to a diagram or graph Copy and annotate the product life cycle Apply AO2 Use an idea equation principle theory or law in relation to a given problem or issue Apply the concept of diseconomies of scale to company X in 2014 compared to 2012 Calculate AO4 Obtain a numerical answer showing the relevant stages in the working Calculate the acid test ratio for company X in 2013 Comment AO2 Give a judgment based on a given statement or result of a calculation Comment on the profitability liquidity and efficiency ratios of company X Compare AO3 Give an account of the similarities between two or more items or situations referring to both all of them throughout Compare the leadership style of manager A with that of manager B 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 Compare and contrast how managers use different planning tools to make changes to their strategies Complete AO4 Add missing information data Copy and complete the profit and loss account provided below 92 Business management guide

Glossary of command terms Command term Assessment objective level Definition Business management example Construct AO4 Display information in a diagrammatic or logical form Based on the information given construct a break even chart for company X Contrast AO3 Give an account of the differences between two or more items or situations referring to both all of them throughout Contrast the marketing objectives of for profit organization X and non profit organization Y Define AO1 Give the precise meaning of a word phrase concept or physical quantity Define the term economies of scale Demonstrate AO2 Make clear by reasoning or evidence illustrating with examples or practical application Demonstrate why company X has decided to offshore to country Y Describe AO1 Give a detailed account Describe one method of primary research that company X could use Determine AO4 Obtain the only possible answer Determine the break even point for product X 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 Discuss how company X can differentiate itself from its main competitor Distinguish AO2 Make clear the differences between two or more concepts or items Distinguish between leadership and management Draw AO4 Represent by means of a labelled accurate diagram or graph using a pencil A ruler straight edge should be used for straight lines Diagrams should be drawn to scale Graphs should have points correctly plotted if appropriate and joined in a straight line or smooth curve Draw a break even chart for company X Business management guide 93

Glossary of command terms Command term Assessment objective level Definition Business management example Evaluate AO3 Make an appraisal by weighing up the strengths and limitations Evaluate the investment opportunities using net present value NPV Examine AO3 Consider an argument or concept in a way that uncovers the assumptions and interrelationships of the issue Examine the importance of branding for company X Explain AO2 Give a detailed account including reasons or causes Explain why company X has changed its pricing strategy Identify AO4 Provide an answer from a number of possibilities Identify two reasons why the owner has chosen a particular method of investment appraisal Interpret AO2 Use knowledge and understanding to recognize trends and draw conclusions from given information Interpret the differences in the liquidity ratios between 2014 and 2012 Justify AO3 Give valid reasons or evidence to support an answer or conclusion Justify the reason s why company X has decided to merge with company Y Label AO4 Add labels to a diagram Label the margin of safety on the break even chart that you have constructed Outline AO1 Give a brief account or summary Outline two advantages and two disadvantages of working from home Recommend AO3 Present an advisable course of action with appropriate supporting evidence reason in relation to a given situation problem or issue Recommend a suitable growth strategy for company X Plot AO4 Mark the position of points on a diagram Plot the position of company X on the position map drawn in your answer to part b Prepare AO4 Put given data or information from a stimulus source into a suitable format Prepare a cash flow forecast for company X for January February and March 2015 94 Business management guide

Glossary of command terms Command term Assessment objective level Definition Business management example State AO1 Give a specific name value or other brief answer without explanation or calculation State one reason why company X has decided to outsource the production of Y to country Z Suggest AO2 Propose a solution hypothesis or other possible answer Suggest a suitable method of appraisal for employee group Y in company Z 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 To what extent has outsourcing the production of X been unsuccessful for company Y Business management guide 95