IB International Baccalaureate- Business and Management Revision Notes

INTERNATIONAL BACCALAUREATE BUSINESS AND MANAGEMENT revision guide

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CONTENTS Unit 1: Business Organisation and Environment What is a business?! ! ! !

Types of organisation!! ! !

Organisation objectives and social audits!

Business and the external environment!

Organisation planning tools! ! !

Growth and evolution!! ! !

Globalisation! ! ! ! !

Change! ! ! ! !

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Workforce planning! ! ! ! ! !

Recruitment! ! ! ! ! ! !

Training and appraisal! ! ! ! !

Retrenchment!! ! ! ! ! !

Charles Handy ! ! ! ! ! !

Matrix structures/ project teams! ! ! !

Henry Mintzberg! ! ! ! ! !

Peters and Waterman! ! ! ! !

Outsourcing and offshoring! ! ! ! !

Communication! ! ! ! ! !

Communication networks! ! ! ! !

Leadership and management! ! ! !

Difference between leadership and management! !

Motivation! ! ! ! ! ! !

Financial and non financial motivation! ! !

Crisis management and contingency planning! !

Employer-employee relations! ! ! !

Unions!! ! ! ! ! ! !

Methods used in pursuit of a business始s objectives!!

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28 31 32 34 36 39 40 42 43 44 46 48 50 53 57 58 61 62 64

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68 70 74 78 79 81 82 83 84

Unit 2: Human Resources

Unit 3: Accounting and Finance Financial statements! !

Capital/ working capital!

Ratio analysis!! !

Depreciation! ! !

Sources of finance! !

Cashflow forecasts! !

Budgeting! ! !

Stock valuation! !

Investment appraisal! !

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Unit 4: Marketing What is a market?! ! ! !

Market research! ! ! !

Market segmentation!! ! !

Branding strategies! ! ! !

Pricing strategies! ! ! !

Promotion! ! ! ! !

Product! ! ! ! !

Place! ! ! ! ! !

E-commerce! ! ! ! !

Marketing and ethics!! ! !

Marketing strategies! ! ! !

Outsourcing and subcontracting! !

Demand and supply ! ! ! !

Elasticity ! ! ! ! !

How useful is the concept of elasticity?!

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88 89 91 93 94 96 97 99 101 103 106 108 109 110 115

Location! ! ! ! ! ! !

Production! ! ! ! ! ! !

How to produce! ! ! ! ! !

Quality control vs quality assurance!! ! !

Total quality culture! ! ! ! ! !

Kaizen!! ! ! ! ! ! !

Benchmarking and International Safety Standards! !

Costs, revenue and profits! ! ! ! !

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117 119 120 122 123 125 126 128

Unit 5: Operations Management

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UNIT 1: BUSINESS ORGANISATION AND ENVIRONMENT

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WHAT IS A BUSINESS? An organization that combines inputs in processes to create outputs.

1. INPUTS a. LAND: natural resources on, above or below the earth始s surface. b. LABOUR: all human resources, physical and mental, inherited or acquired. c. CAPITAL: all manmade aids to further production d. ENTREPRENEUR: owner/manager of a business who brings together the other factors of production and undertakes risk by introducing new ways of making old products or creating new products.

2. PROCESSES " a. Finance " b. Marketing " c. Human Resources " d. Operations/Production 3. OUTPUTS All businesses operate in one or more of the primary sector, secondary sector and tertiary sector. ! a. PRIMARY SECTOR " Concerned with the cultivation of natural goods and extraction of raw materials. " e.g. agriculture, fishing, mining

INDUSTRIALIZATION

b. SECONDARY SECTOR " Concerned with the construction and manufacture of goods from raw materials. " " e.g. factories, manufacture of cars, process of food

DE-INDUSTRIALIZATION

c. TERTIARY SECTOR " Concerned with the distribution of manufactured goods and the provision of " services. " " e.g. accountancy, banking, transport

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How has de-industrialization impacted on the activities carried out by the 4 business functions?

HUMAN RESOURCES More workers so therefore more strain.

OPERATIONS/PRODUCTION Improves production. Yet if less cars are being produced, services such as insurance, aren始t needed.

FINANCE Money will have to be preserved for wages etc.

MARKETING Will get better as there are people to publicize and market the product.

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