IBDP - Study Guide for Business Management HL & SL - Topic 1
Instelling
International Baccalaureate Diploma Program
Boek
Business Management for the IB Diploma Coursebook
A complete study guide and revision notes for the IB Diploma Business Management program.
I achieved a 43 predicted in the IB program and scored a 7 overall for my HL final business management grade by using these notes to study.
These notes include all aspects listed in the IB syllabus as well...
Types of Outputs:
1) Goods = tangible (cupcakes, houses)
2) Services = intangible but provide value (education, health care)
Economic Sectors
Primary Sector - Extracting raw material from earth (agriculture, fishing, forestry
& mining)
- Often in undeveloped economies
Secondary Sector - Transforming raw materials into finished & semi-finished
products (construction, processing & manufacturing)
- Developing economies
Tertiary Sector - Delivery of services (education, health care, travel & tourism)
- Developed economies
Quaternary Sector - Services related to development & use of technology (subset of
tertiary sector)
- Developed economies
● Integrated companies = activities span two or more sectors (e.g. oil industry)
Sectoral Change in Business Activity
- Companies move in and out of sectors over
time due to changes in market & business
strategy
- It is closely linked to global/economic changes
+ development
- Deindustrialization = when a sector surpasses
another in terms of employment & output value
,Entrepreneurs = individuals with talent and perseverance that lead the process of setting up a new
business
● Risk-takers (invest their own funds)
● Self-motivated + commitment
● Confident
● Persevering
● Innovative
Intrapreneurs = those who are encouraged by their employees to take risks & new develop new
products, processes and services while retaining their status as employees
- Establishes entrepreneurship in organizations
- Promotes innovation, creativity, staff motivation & creates competitive advantages
Reasons for Starting a Business
● Earning a living
● Financial reward
● Control over work & future career
● Work-life balance
● New technology/business idea
Business Startup Steps
1) Refine the idea
2) Prepare a business plan
a) Business plan = a written document that describes all the aspects of a new enterprise
(product idea, marketing, finance, operations & HR)
3) Decide on legal structure
4) Business registration
5) Finding location
6) Hiring employees
7) Seeking finance
However, possible issues are: lack of management skills, recruiting qualified personnel, strong
competitors, lack of funds
, Types of Organizations - 1.2
Public Sector = organizations owned & operated by
either the central or local governments (dedicated to
providing public services rather than earning profit)
Private Sector = organizations owned by individuals
or groups of individuals (earning profits to
compensate for the owner's investment in
organization)
Unlimited liability = all owners personal assets &
investment can be seized to pay for firm debts
Limited liability = a corporation’s owners cannot lose more than the funds they invested in the firm &
creates a separate entity between owner’s assets & ownership interest in business
For-profit Organizations
Type Description Pros Cons
Sole Trader For-profit business owned by a - Easy to set up - Unlimited liability
single individual. It has little - Owner has full control & - No help with
legal distinction between all profits decisions
business & owner - Finances are confidential - Owner assumes all
losses & limited
access to finance
Partnership For-profit business owned by - Confidential finances - Unlimited liability
two or more individuals who - Partners can both - Shared profits
are each personally responsible contribute finance & have - Conflict
for firm debts. shared management - Limited sources of
- Set up with a responsibility finance
partnership agreement
for how major decisions
will be made
Corporation For-profit business owned by - Limited liability - Difficult &
numerous shareholders who - Independent legal entity expensive to create
enjoy limited liability - Large amounts of funds via - Potential conflict
shares - Exposure of finance
- Change of ownership in public limited
doesn’t affect firm - Selling shares dilutes
ownership
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper kiannamacdonald1. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €10,35. Je zit daarna nergens aan vast.