100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Study guide for IB Business Management CA$49.64   Add to cart
Quickly navigate to
Preview
  2.  
  3. 4
  4.  
  5. 4
  6.  
  7. Business studies

Interview

Study guide for IB Business Management

1 review
 16 views  1 purchase
  • Institution
  • 4

This is a study guide for the IB Business Management course. It includes all chapters (including HL topics). I am an IB student and obtained excellent results studying solely by this study guide (doing practice exercises as well).

Preview 4 out of 42  pages

Document information

  • September 20, 2021
  • 42
  • 2021/2022
  • Interview
  • Unknown
  • Unknown

Subjects

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

All for this textbook (8)

Written for

  • Secondary school
  • 4
  • Business studies
  • 1
All documents for this subject (3)

1  review

review-writer-avatar

By: officealdareys • 2 year ago

Seller

avatar-seller
isabelladiazar

Reviews received

Content preview

1.1 Introduction to business management

- Business: decision making organization involved in the process of using inputs to produce goods
and or to provide services.

- Business sectors:

1. Primary sector: involved with the extraction, harvesting and conversion of natural resources e.g.
agriculture, fishing, mining, forestry and oil extraction
2. Secondary sector: involved in the manufacturing and construction of products, e.g. clothes
manufacturers, publishing firms, breweries and bottlers, etc.
3. Tertiary sector: specialize in providing services to the general population e.g. retailing,
transportation and distribution, banking, finance, insurance, etc.
4. Quaternary sector: subcategory of the tertiary sector e.g. communication technology, research
and development, etc.

- Entrepreneurs and intrepreneurs

- Entrepreneur: individual who plans, organize and manages a business, taking financial risks in
doing so.
- Entrepreneurship: describes trait of business leaders we tend to be distinctive in their
temperament, attitude and outlook who drive the business.
- Intrapreneur: employee who thinks and acts as an entrepreneur within the section of the
organization.
- Intrapreneurship: act of being an entrepreneur, but as an employee with a large organization.

- Problems a new business may face:

- Lack of finance
- Cash flow problems
- Marketing issues
- Unestablished customer base
- People management problems
- Legalities
- Production problems
- High production costs
- Poor location
- External influences.




1




, 1.2 Types of organizations

- Private sector organizations: owned and controlled by private individuals and businesses,
rather than by the government. Generally profit-seeking organizations.
- Public sector organizations: under the ownership and control of the government. Traditionally
provide essential goods and services to the population.


For-proft organizations:


Type of organization De nition Advantages De nition

- Individual who runs - Few legal formalities - Unlimited liability
and owns a personal - Pro t-taking - Limited source of
business. Start-up - Self-boss nance
Sole-trader capital is usually - Privacy - High risks
obtained from personal - Limited economies of
savings and borrowings. scale
- Too much workload
- Pro t-seeking - Financial strength - Unlimited liability
business owned by two - Specialisation and - Lack of continuity
Partnership or more partners. Mainly division of labour - Prolonged decision-
nanced from personal - Financial privacy making
funds. - Cost-e ective - Lack of harmony
- Businesses owned by - Raising nance - Communications
their shareholders - Limited liability issues
(individuals or other - Continuity - Added complexities
businesses that have - Economies of scale - Compliance costs
Companies invested money to - Productivity - Disclosure of
(corporations) provide capital to a - Tax bene ts information
company). Can be - Loss of control
private limited - Bureaucracy
company or public
limited company.

- For-pro t social - Incentives to work - Disincentive e ects
enterprises owned and - Decision-making - Limited sources of
run by their members (i.e power nance
Cooperatives employees, customers). - Social bene ts - Slower decision-
- Public support making
- Limited promotional
opportunities

- Financial service aimed - Accessibility - Immorality
Micro nance providers at entrepreneurs small - Job creation - Limited nance
business on low income. - Social wellbeing - Limited eligibility
- When the government
works together with the
Public-private
private sector to jointly
partnerships
provide certain goods or
services




2


fi fifi fififffifi fi ff

, Non-profit organizations:


Type of organization De nition Advantages De nition

- Non-pro t social - Social bene ts - Bureaucracy
enterprise that provides - Tax exemptions - Disincentive e ects
voluntary support for - Tax incentives for - Charity fraud
Charities -
good causes. donors Ine ciencies
- Limited liability - Limited sources of
nance

- Non-pro t social
enterprise that operates
Non-governmental
in the private sector. Run
organizations
for the bene t of others
in society.



1.3 Organizational objectives

- Vision statement: outlines and organization’s aspirations in the distant future—“What do we
want to become?”.
- Mission statement: simple declaration of the underlying purpose of an organization’s existence
and its core value—“What is our business?”.

- Aims: general and long-term goals of an organization. Broadly expressed as vague and
unquantifiable statements.
- Objectives: short to medium-term and specific targets an organization sets in order to achieve its
aims. They are specific and quantifiable.
- Strategies: medium to long-term plans of action to achieve strategic objectives of an
organization.
- Profit maximisation
- Growth
- Market standing
- Image and reputation
- Tactics: short-term methods used to achieve an organization’s tactical objectives.
- Survival
- Sales revenue maximization

There are various factors that can cause the aims and objectives of an organization to change.

- Internal factors:
- Corporate culture
- Types and size of organization
- Private vs. public sector organizations

3


fi fiffi fi fifi ff

, - Age of business
- Finance
- Risk profile
- Crisis management

- External factors:
- State of the economy
- Government constraints
- Presence of power and pressure groups
- New technologies

- SWOT analysis: acronym for Strengths, Weaknesses, Opportunities and threats. Used to assess
the current situation of a business organization through the relevant internal and external factors.

- Strengths: internal factors that our favourable compared with competitors.
- Weaknesses: internal factors that are unfavorable when compared with rivals.
- Opportunities: external possibilities for future development.
- Threats: external factors that hinder the prospect for an organization.

- Ansoff Matrix: analytical tool that helps managers to choose and devise various product and
market growth strategies.

- Market penetration: low-risk growth strategy—as businesses choose to focus on selling
existing products in existing markets to increase market share.
- Product development: medium-risk growth strategy that involves selling new products in
existing markets.
- Market development: medium risk growth strategy that involves selling existing products in
new markets.
- Diversification: high-risk growth strategy that involves selling new products in new markets.


1.4 Stakeholders

- Stakeholder: any individual, group or organization with a direct interest in, and is affected by
the activities and performance of a business.

- Internal stakeholders: members of the organization.
- Employees: staff of a business will have a stake (interest) in the organizations they work for.
- Managers and directors: individuals who oversee the daily operations of a business. Directors
are senior executives who have been elected by the company’s shareholders to direct business
operations on behalf of their owners.

4




The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller isabelladiazar. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$49.64. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

79976 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$49.64  1x  sold
  • (1)
  Add to cart