Business and Management for the IB Diploma

Cover......Page 1
Title......Page 3
Copyright......Page 4
Contents......Page 5
1 The nature of business activity\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 9
Business functions......Page 10
Sectors of industry......Page 12
OVER TO YOU......Page 14
2 Types of organisation\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 16
Starting a business......Page 17
Profi t-based organisations......Page 21
Legal forms of business organisation......Page 23
Public sector enterprises......Page 24
Non-profi t and non-governmental organisations......Page 25
Public–private partnership (PPP)......Page 27
OVER TO YOU......Page 28
3 Organisational objectives\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 30
Aims, objectives, plans and strategies......Page 31
Mission statements and vision statements......Page 32
Corporate objectives......Page 34
Interrelated objectives, strategies and tactics......Page 37
Changing business objectives......Page 38
Corporate social responsibility......Page 39
Changes in corporate responsibility......Page 43
OVER TO YOU......Page 44
4 Stakeholders\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 47
Stakeholder confl icts......Page 48
Evaluating stakeholder confl ict......Page 50
OVER TO YOU......Page 51
5 External environment\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 53
PEST analysis......Page 54
External opportunities and threats......Page 55
Impact of technology......Page 60
OVER TO YOU......Page 63
6 Organisational planning tools\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 65
Decision-making framework......Page 66
Decision-making approaches and techniques......Page 68
SWOT analysis......Page 72
OVER TO YOU......Page 74
7 Growth and evolution\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 76
Increasing the scale of operations......Page 77
Merits of small and large organisations......Page 78
Recommending an appropriate scale of operation......Page 79
Business growth......Page 80
Joint ventures, strategic alliances,franchising......Page 83
Ansoff’s matrix......Page 84
Porter’s generic strategies......Page 87
OVER TO YOU......Page 88
8 Change and the management of change......Page 90
Factors causing resistance to change......Page 91
Strategies to reduce impact of, and resistance to, change......Page 93
OVER TO YOU......Page 95
9 Globalisation\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 97
Multinational businesses......Page 98
Globalisation and the growth in international trade......Page 101
OVER TO YOU......Page 102
10 Human resource planning\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 104
Labour mobility......Page 105
Workforce planning......Page 106
Recruitment......Page 108
Appraisal and development of staff......Page 109
Dismissal of employees......Page 110
Employment patterns and practices......Page 111
Handy’s Shamrock organisation......Page 113
OVER TO YOU......Page 114
11 Organisational structure\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 116
The formal structure......Page 117
Key principles of organisational structure......Page 118
Delayering......Page 119
Centralisation and decentralisation......Page 120
The matrix structure......Page 121
The fl exible future......Page 122
Outsourcing HR functions......Page 124
OVER TO YOU......Page 125
12 Communication\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 127
Introduction......Page 128
Communication media......Page 129
Informal communication......Page 130
Barriers to effective communication......Page 131
Formal communication networks......Page 133
OVER TO YOU......Page 135
13 Leadership and management\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 137
Leadership styles......Page 138
Effectiveness of leadership styles......Page 139
Leadership theories......Page 141
The functions of management......Page 142
Mintzberg’s management roles......Page 144
OVER TO YOU......Page 146
14 Motivation\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 148
Introduction......Page 149
Motivation theories......Page 150
Process theories......Page 155
Motivation in practice......Page 156
OVER TO YOU......Page 162
15 Organisational and corporate cultures......Page 164
Types of organisational culture......Page 165
Consequences of culture clashes......Page 166
Changing organisational culture......Page 167
Evaluating organisational culture......Page 168
OVER TO YOU......Page 169
16 Employer and employee relations......Page 171
Trade unions and their role......Page 172
Action taken by employee sand employers......Page 174
Strategies to reduce conflict......Page 175
OVER TO YOU......Page 177
17 Crisis management and contingency planning......Page 179
18 Sources of finance\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 182
Sources of fi nance......Page 183
Making the fi nancing decision......Page 189
OVER TO YOU......Page 191
19 Investment appraisal\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 193
What is investment appraisal?......Page 194
OVER TO YOU......Page 201
20 Working capital\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 203
The importance of cash flow......Page 204
Cash and profit......Page 205
Structure of cash-flow forecasts......Page 206
Limitations of cash-flow forecasts\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 207
Ways to improve cash flow\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 209
OVER TO YOU......Page 211
21 Budgeting......Page 213
Benefi ts of setting budgets......Page 214
Preparation of budgets......Page 215
Budgetary control – variance analysis......Page 216
Budgetary control and strategic planning......Page 217
OVER TO YOU......Page 219
22 Financial accounts\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 220
Stakeholders and accounting information......Page 221
The main business accounts......Page 222
Valuing intangible assets......Page 227
Depreciation of assets......Page 228
Stock valuation......Page 230
OVER TO YOU......Page 232
23 Ratio analysis\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 234
Accounting ratios......Page 235
Ratio analysis – an evaluation......Page 243
OVER TO YOU......Page 246
24 The role of marketing\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 248
Market: size, growth and share......Page 249
Consumer markets and industrial markets......Page 251
Marketing approaches......Page 253
Marketing in non-profi t-making organisations......Page 254
Marketing plans......Page 255
OVER TO YOU......Page 256
25 Marketing planning\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 258
Marketing mix......Page 259
The value of a marketing audit......Page 260
Porter’s Five Forces analysis......Page 261
Marketing objectives and corporate objectives......Page 263
Sources of market research data......Page 264
Primary research......Page 266
Market segmentation and consumerprofile......Page 270
Sales forecasting......Page 273
OVER TO YOU......Page 277
26 Product\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 279
Product life cycle......Page 280
Boston Matrix – product portfolio analysis......Page 283
Branding......Page 284
OVER TO YOU......Page 286
27 Price\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 289
Pricing strategies......Page 290
Supply and demand......Page 295
Elasticity and the product life cycle......Page 298
OVER TO YOU......Page 299
28 Promotion and place (distribution)\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 301
Above-the-line promotion......Page 302
Sales promotion......Page 304
‘Place’ decisions in the marketing mix......Page 305
Distribution channels......Page 309
Supply chain management (SCM)......Page 311
OVER TO YOU......Page 312
29 International marketing and e-commerce\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 315
30 Production methods\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 324
Production methods......Page 325
Impact of changing production methods......Page 328
Using more than one method......Page 329
OVER TO YOU......Page 330
31 Costs and revenues\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 332
Production costs......Page 333
Revenue......Page 334
Costing products......Page 335
Contribution costing approach......Page 336
Using contribution costing – a summary......Page 340
OVER TO YOU......Page 341
32 Break-even analysis\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 343
Calculating break even – methods......Page 344
Margin of safety......Page 345
Break-even analysis – further uses......Page 346
Break-even analysis – an evaluation......Page 347
OVER TO YOU......Page 348
33 Quality assurance\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 350
Introduction......Page 351
Quality control and quality assurance......Page 352
Total quality management (TQM)......Page 354
Kaizen – continuous improvement......Page 355
Benchmarking......Page 356
Quality issues – an evaluation......Page 358
OVER TO YOU......Page 359
34 Location\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 361
Factors infl uencing location decisions......Page 362
Globalisation and international location decisions......Page 367
OVER TO YOU......Page 370
35 Innovation\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 372
The importance of research and development......Page 373
Factors affecting innovation......Page 374
OVER TO YOU......Page 375
36 Production planning\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 377
Stock-holding costs......Page 378
Controlling stock levels – a graphical approach......Page 379
Just in case and just in time stock systems......Page 380
Capacity utilisation......Page 384
Outsourcing......Page 386
OVER TO YOU......Page 388
37 Project management\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 391
Critical path analysis (CPA)......Page 392
OVER TO YOU......Page 399
38 Business strategy\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 401
Elements of the strategic framework......Page 402
Strategic analysis......Page 403
Strategic choice......Page 407
Strategic implementation......Page 408
OVER TO YOU......Page 412
Introduction......Page 415
Examination technique......Page 416
Quantitative questions......Page 418
The pre-issued case study......Page 421
Internal assessment......Page 425
Extended essay in Business and Management......Page 429
Glossary\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 434
Index\0\0\0\0\0\0\0\0\0\0\0\0......Page 447
Acknowledgements\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0\0......Page 456