SL BUSINESS MANAGEMENT Syllabus Outline Unit 1: Business organization and environment 1.1 Introduction to business management The role of businesses in combining human, physical and financial resources to create goods and services. Inputs Outputs Processes of a business The main business functions and their roles: Human resources Finance and accounts Marketing Operations Primary, secondary, tertiary and quaternary sectors The nature of business activity in each sector and the impact of sectoral change on business activity The role of entrepreneurship (and entrepreneur) and intrapreneurship (and intraperneur) in overall business activity Reasons for starting up a business or enterprise and finding a market opportunity Common steps in the process of starting up a business or an enterprise Problems that a new business or enterprise may face The elements of a business plan 1.2 Types of organizations Distinction between the private and public sectors The main features of the following types of for- profit (commercial) organizations: Sole traders Partnerships Companies/corporations The main featured of the following types of for- profit social enterprises: Cooperatives Microfinance providers Public- private partnerships (PPP) The main features of the following types of non- profit social enterprises: Non- governmental organizations (NGOs) Charities 1.3 Organizational objectives
Vision statement and mission statement Aims, objectives, strategies and tactics, and their relationships The need for organizations to change objectives and innovative in response to changes in internal and external environments Ethical objectives and corporate social responsibility (CSR) The reasons why organizations set ethical objectives and the impact of implementing them The evolving role and nature of CSR SWOT analysis of a given organization Ansoff matrix for different growth strategies of a given organization 1.4 Stakeholders The interests of internal stakeholders Employees Managers Shareholders The interests of external stakeholders Suppliers Customers Special Interest Groups Competitors Possible areas of mutual benefit and conflict between stakeholders interests 1.5 External environment STEEPLE analysis of a given organization Consequences of a change in any of the STEEPLE factors for a business s objectives and strategy 1.6 Growth and evolution Economies and diseconomies of scale The merits of small versus large organizations The difference between internal and external growth The following external growth methods Mergers and acquisitions (M&As) and takeovers Joint ventures
Strategic alliances Franchising The role and impact of globalization on the growth and evolution of businesses Reasons for the growth of multinational companies (MNCs) The impact of MNCs on the host countries 1.7 Organizational planning tools (HL) The following planning tools in a decision making process: Fishbone diagram Scientific versus intuitive decision making process Decision tree Force field analysis Gantt chart Unit 2: Human Resource Management 2.1 Functions and evolution of human resources management. Human resource planning (workforce planning) Labor turnover Internal and external factors that influence human resource planning (such as demographic change, change in labor mobility, new communication technologies) Common steps in the process of recruitment Following types of training: On the job (induction and mentoring) Off the job Cognitive Behavioral The following types of appraisals: Formative Summative 360 degree feedback Self- appraisal Common steps in the process of dismissal and redundancy How work patterns, practices and preferences change and how they affect the employer and employees (teleworking, flextime, migration for work) Outsourcing, off shoring and re- shoring as human resource strategies. How innovation, ethical considerations and cultural differences may influence human resource practices and strategies in an organization. 2.2 Organizational structure
The following terminology to facilitate understanding of different types of organizational structures: Delegation Span of control Levels of hierarchy Chain of command Bureaucracy Centralization Decentralization De- layering The following types of organizational charts: Flat/horizontal Tall/vertical Hierarchical By product By function By region Changes in organizational structures (such as project based organization, Handy s Shamrock Org) How cultural differences and innovation in communication technologies may impact on communication in an organization. 2.3 Leadership and management They key functions of management Management versus leadership The following leadership styles Autocratic Paternalistic Democratic Laissez- faire Situational How ethical considerations and cultural differences may influence leadership and management styles in an organization. 2.4 Motivation The following motivation theories: Taylor Maslow Herzberg (motivation hygiene theory) Adams (equity theory) Pink The following types of financial rewards: Salary Wage (time and piece rates) Commission Profit related pay Performance related pay Employee share ownership schemes
Fringe payment (perks) The following types of non- financial rewards: Job enrichment Job rotation Job enlargement Empowerment Purpose to make a difference Teamwork How financial and non- financial rewards may affect job satisfaction, motivation and productivity in different cultures. Unit 3: Accounts and Finance 3.1 Sources of finance Role of finance for business: Capital expenditure Revenue expenditure The following internal sources of finance: Personal funds (for sole traders) Retained profit Sale of assets The following external sources of finance: Share capital Loan capital Overdrafts Trade credit Grants Subsidies Debt factoring Leasing Venture capital Business angels Short, medium and long term finance The appropriateness, advantage and disadvantages of sources of finance for a given situation 3.2 Costs and revenues The following types of cost, using examples: Fixed Variable Semi- variable Direct Indirect/overhead Total revenue and revenue streams, using examples. 3.3 Break- even analysis
Total contribution versus contribution per unit A break even chart and the following aspects of break- even analysis: Break even quantity/point Profit or loss Margin of safety Target profit output Target profit Target price The effects of changes in price or cost on the break- even quantity, profit and margin of safety, using graphical and quantitative methods. The benefits and limitations of break- even analysis 3.4 Final accounts The purpose of accounts to different stakeholders The principles and ethics of accounting practice Final accounts: Profit and Loss Account (Income statements) trading account, P/L account, Appropriation Account Balance Sheet Different types of intangible assets 3.5 Profitability and liquidity ratio analysis Profitability and efficiency ratios: Gross Profit margin Net profit margin ROCE Possible strategies to improve these ratios Liquidity ratios: Current Acid- test/quick Strategies to improve these ratios 3.7 Cash flow Difference between profit and cash flow Working capital cycle (cash flow cycle) Cash flow forecasts The relationship between investment, profit and cash flow Strategies for dealing with cash flow problems: Reducing cash outflow Improving cash inflows
Looking for additional finance 3.8 Investment Appraisal Investment opportunities using payback period and average rate of return (ARR) Unit 4: Marketing 4.1 The role of marketing Marketing and its relationship with other business functions. Differences between marketing of goods and services Market orientation versus product orientation Difference between commercial marketing and social marketing Characteristics of the market in which an organization operates Market share The importance of market share and market leadership Marketing objectives of for profit organizations and nonprofit organizations How marketing strategies evolve as a response to change in customer preferences How innovation, ethical considerations and cultural differences may influence marketing practices and strategies in an organization 4.2 Marketing planning Elements of a marketing plan Role of marketing planning Four P s of marketing mix Appropriate marketing mix for a particular product or business Effectiveness of a marketing mix in achieving marketing objectives Difference between target markets and market segments Possible target markets and market segments in a given situation Difference between niche market and mass market How organizations target and segment their market and create consumer profiles Product position map Importance of having a unique selling point/proposition (USP) How organizations can differentiate themselves and products from competitors
4.4 Market research Why and how organizations carry out market research Following methods/techniques of primary market research: Surveys Interviews Focus groups Observations Following methods/techniques of secondary market research: Market analysis Academic journals Government publications Media articles Ethical considerations of market research The difference between qualitative and quantitative research Following methods/techniques of secondary market research: Quota Random Stratified Cluster Snowballing Convenience Results from data collection 4.5 The four P s PRODUCT The product life cycle Relationship between the product life cycle and the marketing mix Extension strategies Relationship between product life cycle, investment, profit and cash flow Boston Consulting Group (BCG) matrix on an organization s products Branding: Awareness Development Loyalty Value Importance of Branding Importance of Packaging
PRICE NEW - Appropriateness of the following pricing strategies: Cost plus (mark up) Penetration Skimming Psychological Loss leader Price discrimination Price leadership Predatory PROMOTION The following aspects of promotion: Above the line promotion Below the line promotion Promotional mix Impact of changing technology on promotional strategies (such as viral marketing, social media and social networking) Guerrilla marketing and its effectiveness as a promotional method. PLACE Importance of place in marketing mix Effectiveness of different types of distribution channels 4.8 E- commerce Features of e- commerce Effects of changing technology and e- commerce on the marketing mix Difference between types of e- commerce: Business to business (B2B) Business to consumer (B2C) Consumer to consumer (C2C) Costs and benefits of e- commerce to firms and consumers Unit 5: Operations Management 5.1 The role of operations management Operations management and its relationship with other business functions Operations management in organizations producing goods and/or services Operations management strategies and practices for ecological, social (human resources) and economic sustainability 5.2 Production Methods The following production methods:
Job/customized production Batch production Mass/flow process production Cellular manufacturing Most appropriate method of production for a given situation 5.4 Location The reasons for a specific location of production Impact of globalization on location The following ways of re- organizing production, both nationally and internationally : Outsourcing/subcontracting Offshoring Insourcing Assessment Outline Assessment Component External assessment (3 hours total) Paper 1 ( 1 hour and 15 minutes) Weight 75% 35% Based on case study issued in advance, with additional unseen material included in section B. Students assessed on ALL syllabus content. Section A Answer two of three structure questions (30 marks) Section B Answer one compulsory question. (20 marks) Paper 2 (1 hour and 45 minutes) Students assessed on ALL syllabus content. Section A Answer one of two structured questions with quantitative element (20 marks) Section B Answer two of three structured questions (40 marks) 40% Internal assessment (15 teaching hours total) 25% This component is internally assessed by the teacher and externally moderated by the IB at the end of the course. Written commentary based on three to five supporting documents about a real issue or problem facing a particular organization (Maximum 1500 words) ( 25 marks)