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All You Need To Know About Business Management Paper 1 Pre-release Case Study May 2023

• March 6, 2023
• IB - Understanding it

Table of Contents

• 1 Aim and Overview of Paper 1 assessment
• 3 How To Prepare?
• 4.1 Skandvig Terra PLC
• 5.1 Q1: What is IB Business Management Paper 1?
• 5.2 Q2: What topics are covered in IB Business Management Paper 1?
• 5.3 Q3: How is IB Business Management Paper 1 structured?
• 5.4 Q4: What are the key skills required to excel in IB Business Management Paper 1?
• 5.5 Q5: How can I prepare for IB Business Management Paper 1?

Aim and Overview of Paper 1 assessment

• Paper 1 promotes a holistic approach to IB Business Management 
• It assess all five units of the IB BM Syllabus
• Section C: Extended Response Question (Essay) – HL only 
• It requires students to inculcate analytical and critical thinking skills.

Each exam session, the IB releases a pre-issued case study for the external examinations. 

• For the May examination, it is released in the month of February. 
• For the November examination, it is released in the month of August. 

The case study is based on a hypothetical organisation, which covers all 5 units in the syllabus. It acts as a useful stimulus for students when revising for both Paper 1 and Paper 2. 

How To Prepare?

A couple of months before the IB Business Management Paper 1, you will be given a pre-released case study. I hope this blog will help you get an idea about how you can fully utilise all the time given to you to prepare!

• Read It – You need to know the case study inside out. You should spend so much time reading it several times so that you almost memorise it. 
• Make Notes – Each time you read the case study make notes. Firstly, start with summarising each paragraph and then each section. Then make a timeline to see the progression of the business and important dates. Then List all the stakeholders involved and how they impacted the organisation.  Moreover, try to split the case study in the five units. Generally, the case study will cover all the topics. Make a list of advantages and disadvantages. Lastly, Use BM techniques like SWOT, STEEPLE, Ansoff Matrix. 
• Think of Possible Questions and then answer them. 

Here we have prepared Notes for IB Case Study MAY 2023 

Skandvig terra plc.

Vision Statement: Making the world a safer place 

Producing and delivering potable water in Norway 

In 1980, SVT expanded into other business sectors: 

• Desalination: Remove mineral components from water 
• Household water treatment products 

Now, Builds and operates water treatment plants to purify the water. 

One director in each division with authority for quick decision making

SVT pays travel expense, accommodation costs and salary 

Works with charities and NGOs 

• Stakeholders 
• External – Customers 
• External – People affected by CSR
• External – Government Entities (ministry of water and irrigation, and others …) 
• External – Competitors/ Rival Businesses 
• Internal – Employees at SVT 
• Internal – Shareholders of SVT
• Internal – Directors of SVT (Yannick, Ariadne) 

Several Divisions such as 

Fresh Water Division

• Sources, treats, stores and transports water from environment to distribution to population. 
• Director – Yannick Pedersen (Situational Leadership Style) 
• Water is collected and stored in large manufactured reservoirs 
• Subterranean Aquifers – Underground layers of rock are saturated with water. 
• Surface Water – Streams, rivers, lakes, reservoirs and wetlands 
• Recent Acquisition of Geng PLC (water supplier in UK) 
• Internal and External Growth 
• Supplies Potable Water to 200 million around the world 

Desalination Division (Constructs and Operates Desalination Plants) 

• Process that removes salts and mineral from sea water to produce water
• 15% of the world’s desalination capacity 
• Market for desalination growing quickly 
• Global market for desalination will double in the next 20 years 
• Two income streams 

Operates desalination in 19 countries such as Australia, China, Greece, India, Japan. 

Manufacturers and operates desalination plants 

Engineering Division 

• Manufacturer Water Treatment equipment and Power Turbines
• Ariadne Johansen Director (Autocratic Leadership Style) 
• In 2015, Takeover of H4 PLC, a rival engineering company \
• Factories in Germany, UK 
• Consumer Products Division 
• Manufacturers and sells Water Filters for use at home 
• The filters take potable water and use carbon to remove calcium, chlorine, copper, cadmium and zinc 
• SVT’s share price rise by 65% 
• Increase dividends each year 
• SVT’s annual profit doubled 
• Aims to become the brand leader in the water filter industry 

Important Topics

• Leadership Styles (Situational vs. Autocratic) 
• Financial versus non-financial motivation
• Charities and non-governmental organisations (NGOs)
• Pricing strategies
• Corporate social responsibility (and sustainability)

After reading the Skandvig Terra PLC case study, students should define the following terms, written in the context of the case study. 

• Autocratic 
• Board of Directors 
• Decision Making 
• Economies of Scale 
• Entrepreneurs 
• Induction Training 
• Leadership Style
• Market Share 
• Motivation 
• External Environment 
• Vision Statement 
• Secondary Market Research
• Non-Governmental Organisations (NGOs) 
• Product Range
• Pricing Strategy 
• Recruitment 
• Productivity per employee 

Sample Questions

Unit 1 – Business Organization and Environment 

• State two features of a family-owned business as a form of business ownership
• Explain two advantages and one disadvantage for SVT to be a Public Limited Company. 
• Explain the importance of corporate social responsibility (CSR) for SVT .
• Using the case study, explain two strengths and one weakness of SVT . 
• Explain two possible reasons for SVT’s decision to take over H4 PLC in 2015. 

Unit 2 – Human Resource Management 

• Describe one advantage and one disadvantage of high staff turnover resulting from SVT’s modernization programme for H4 PLC. 
• Outline two possible sources of conflict between Ariadne and Yannick.
• Using appropriate motivational theory, explain the factors that affect the level of motivation at SVT .
• With reference to SVT , describe two functions of the human resources department.
• Explain two financial and one non-financial methods that H4 PLC could have used to keep its employees motivated. 

Unit 3 – Finance and accounts

• Describe two suitable sources of finance for SVT’s WF15 project in LEDCs.
• Outline how SVT benefits from a fall in its unit costs.
• Explain the importance of the substantial marketing budget that the directors have approved for the Consumer Products Division
• In the context of SVT’s Consumer Products Division, distinguish between revenue and capital expenditure.

Unit 4 – Marketing

• Explain how sales forecasting calculations can help SVT’s Desalination Division to benefit from the growing opportunity in the demand for cruise holidays. 
• Describe the value of SVT using secondary market research. 
• Describe the significance of first hand data collected by Jayne Dees in Sudan. 
• Outline two advantages for SVT’s Consumer Products Division being a brand leader. 
• Explain two benefits and one disadvantage for SVT having regional monopoly power in the countries in which it operates. 

Unit 5 – Operations management

• Describe the importance of ecological sustainability for SVT’s operations.
• Describe the importance of social sustainability for SVT’s operations.
• Describe the importance of economic sustainability for SVT’s operations.
• Outlining how meeting quality standards set by institutions such as the World Health Organization is important for SVT’s launch of the WF15 water purifier.
• Water contamination is an ever-present threat to SVT. Describe one advantage and one disadvantage for SVT’s Fresh Water Division having a contingency plan.

Additional Resources 

SWOT Analysis

Frequently Asked Questions (FAQs)

Q1: what is ib business management paper 1.

A: IB Business Management Paper 1 is an exam paper that is part of the International Baccalaureate (IB) Business Management course. This exam paper is focused on testing students’ knowledge and understanding of various topics related to business management.

Q2: What topics are covered in IB Business Management Paper 1?

A: IB Business Management Paper 1 covers a range of topics related to business management, including business organization and environment, human resource management, finance and accounts, marketing, operations management, and strategic management.

Q3: How is IB Business Management Paper 1 structured?

A: IB Business Management Paper 1 is a two-hour exam paper that consists of three sections. Section A contains multiple-choice questions, section B contains short-answer questions, and section C contains an extended response question.

Q4: What are the key skills required to excel in IB Business Management Paper 1?

A: To excel in IB Business Management Paper 1, students need to demonstrate strong analytical and critical thinking skills. They also need to be able to apply their knowledge of business management concepts to real-world scenarios, and effectively communicate their ideas in a clear and concise manner.

Q5: How can I prepare for IB Business Management Paper 1?

A: To prepare for IB Business Management Paper 1, students should focus on developing a strong understanding of the key concepts and topics covered in the course. This can be achieved through reading textbooks and other resources, participating in class discussions, and completing practice exams and assignments. It can also be helpful to work with a tutor or study group to reinforce your understanding of the material and prepare for the exam.

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Unwrapping “Skandvig Terra PLC” for IBDP Business M23 Paper 1 Exam

Well, by now you must be aware that the unseen, the long awaited IBDP Business case study to be used in May 2023 Examination this summer is out.

Are you getting ready to tackle this unseen business management case study?

When is M23 IBDP Business Paper 1 ?

You are going to attempt your IBDP Business Management Paper 1 on 28 th April 2023 . Click here to know more about the examination schedule.

What is the main aim of Paper 1 Assessment?

Paper 1 of IB Business Management promotes a comprehensive approach to the subject. It evaluates all five units of the syllabus and includes an Extended Response Question (Essay) section for HL students. This assessment challenges students to develop their analytical and critical thinking skills.

What is the M23 Case Study ?

IB Organization has issued this pre-released case study on Skandvig Terra PLC , a fictional business. The case study is based on a hypothetical organisation, which covers all 5 units in the syllabus. It acts as a useful stimulus for students when revising for both Paper 1 and Paper 2.

Note: Student must not use this organization for their CUEGUIS essay in Paper 2 as it should be based on a real-world organization. Students will be penalized if they choose   Skandvig Terra PLC as organization for their CUEGUIS essay in Paper 2.

Overview of IBDP Business Paper 1 Assessment

IBDP Business Management – SL

IBDP Business Management – HL

How to prepare to ace your case study paper?

Blen will provide you with some tips on how to ace IBDP Business Paper 1 Case Study .

Understand the case study:

It is essential to use this time to read and analyze the case study carefully. Take notes, highlight important details, and create a summary of the case study.

Know the format of the paper:

The questions usually focus on all 5 topics of your IBDP Business Management Syllabus. Knowing the format of the paper will help you to structure your answers correctly and allocate your time accordingly.

Use appropriate business terminology:

Using appropriate business terminology will help to demonstrate your knowledge and understanding of the subject.

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• Paper 1 SVT Study Guide (Shirin Karimi)
• Old course (N23)
• Paper 1 Pre-release case study
• M23 Paper 1

Paper 1 Skandvig Terra PLC (SVT) - Study Guide (by Shirin Karimi)This revision/study guide has been produced by Shirin Karimi who studies at Towheed Iranian School (International Section) in Dubai, UAE. Many thanks to Shirin for sharing her creativity and knowledge to support other DP students. My thanks also go to Shirin"s teacher, Dr. Fereshteh Mohammadian for supporting this.Return to the May 2023 Paper 1 homepage

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What is the vision statement of Skandvig Terra PLC (SVT) ?

“Making the world a safer place”,

What is a vision statement?

A vision statement is a business document that describes an organization’s desired future state or goal. It inspires and motivates employees, stakeholders, and customers towards a common objective.

A company’s vision must align with its mission, strategic planning, culture, and core values. A vision statement is not only used in business, as nonprofits and government offices also use them to set strategic goals.

Vision statements are not necessarily unchangeable. They can be reviewed and revised as necessary, as companies adapt to their business environment. But the companies should try to draft a vision statement that lasts long without need to change. If they happen, any changes should be minimal.

A vision statement is a guideline for a company’s strategic plan.

Compare vision statement and mission statement

A vision statement describes an organization’s desired future state or goal. It inspires and motivates employees, stakeholders, and customers towards a common objective.

A mission statement, on the other hand, is a statement that defines an organization’s purpose, what it is already doing or intends to achieve, may include particular steps. It serves as a guide for decision-making by setting priorities, goals and aims.

In short, a vision statement outlines the desired future of an organization, while a mission statement outlines its purpose and priorities.

What is a monopoly?

A monopoly is a market structure in which a single firm is the sole producer and supplier of a good or service, and there are no close substitutes.

In a monopoly market, the monopolist has complete control over the price of the product and can restrict the quantity supplied, leading to high prices and reduced output compared to a competitive market.

Monopolies can arise due to various factors, including government regulation, network effects, and barriers to entry.

How can a monopoly restrict quantities on the market and what can be the result?

The monopolist can do this by limiting the amount of production, slowing down the manufacturing process, reducing the investment in production facilities, or by not expanding its capacity. By restricting the quantity supplied, the monopolist can ensure that demand remains high and the price remains elevated. This results in reduced output compared to a competitive market, which can have negative effects on consumers, such as reduced access to the product or increased prices.

What happens when a business expands its business by entering other sectors, to perform new activities and support their production?

Backwards vertical integration

What is a vertical integration?

Vertical integration is a business strategy where a company expands its operations to control multiple stages of production and distribution of a product or service. This involves the acquisition or creation of additional business units that are involved in earlier or later stages of the production process, from raw materials to final distribution to the customer. The goal of vertical integration is to increase control over the supply chain, reduce costs, and improve the quality and coordination of the production process.

What are the two types of vertical integration?

Forward integration, where a company expands into distribution or retail, and

backward integration, where a company expands into the production of raw materials or components.

Disadvantage of vertical integration?

Vertical integration can also lead to: increased costs and decreased flexibility,

as the company may become locked into a particular set of suppliers, customers, or production processes (e.g. because they may be under common ownership of a parent which requires them to ensure sales of each other)

Advantage of vertical integration?

better control multiple stages of: 1. production and/or 2. distribution of a product or service.

What is a horizontal integration?

Horizontal integration is a business strategy where a company expands its operations by acquiring or merging with other companies that operate at the same stage of the production process and serve the same customer segments. Horizontal integration can involve the acquisition of companies that produce the same products, provide similar services, or operate in the same geographic regions.

What advantage is there from a horizontal integration?

The goal of horizontal integration is to increase market share, economies of scale, and bargaining power with suppliers and customers. By acquiring or merging with similar companies, a company can increase its market reach, reduce costs through the elimination of duplicated operations, and increase its ability to negotiate favorable terms with suppliers and customers.

Disadvantage of a horizontal integration?

Horizontal integration can also result in : 1. Increased competition in the sector, as there may be now more investment and production 2. Even a monopoly, the company may face additional govenrmental regulations and will have decreased incentives to invest in research and development.

Which type of integration has Skandvig Terra PLC (SVT) gone through?

Backwords vertical

What is an organisational structure?

Organizational structure refers to the formal system of authority, communications, roles, and relationships that determine how resources, tasks, and decision-making responsibilities are assigned and coordinated within an organization. It provides the framework for how work is divided and how authority is exercised in the pursuit of organizational goals.

What types of structure may a company have?

A Hierarchical structure, a pyramid-shaped (tall) structure that consists of multiple levels of management and subordinates, with clear lines of authority and communication.

A flat structure which has the opposite characteristics.

A tall or flat structure may be based on:

Function: A structure based on grouping similar activities or functions together, such as sales, marketing, or production.

Product: A structure based on grouping activities by product with each division operating as a separate entity within the organization, having own functions such as own production, sales etc (some functions may be still centralised)

Geography/region: A structure based on grouping activities by region with each division operating as a separate entity within the organization, having own functions such as own production, sales etc (some functions may be still centralised)

A flat structure may be also a:

Matrix/project structure: A combination of functional and divisional structures, where employees report to both functional managers and product managers. Teams may be built when there is a order and dissolved afterwards.

What factors should be considered when making decision about the organisational structure ?

There is no best structure. The choice of organizational structure depends on the size, complexity, and goals of the organization, and can have significant effects on communication, collaboration, and performance. Company which produces simple products may choose to have less focus on products and more focus on marketing. Having a function based structure would mean in this case having people of similar activities working together. They may feel more motivated, growing professionally. e.g.

What type of structure does the company have?

Product-based

Which leadership styles enable quick decision-making?

Autocratic: In this style, the leader makes decisions unilaterally and expects subordinates to follow without question. This style can be effective in crisis situations or when rapid decision-making is necessary.

Paternalistic leadership is a style in which the leader takes on a supportive and caring role, similar to that of a father figure, while also exerting authority and making decisions. The leader may make decisions that prioritize the needs of the individual over the needs of the organization. This can be effective in creating a motivated workforce. However, this style can also lead to dependency and a lack of initiative among subordinates, as they may become overly reliant on the leader to make decisions for them. Staff can even try to manipulate and benefit from this relations.

Laissez-faire: In this style, the leader provides little direction and delegates responsibility to subordinates. This can be effective in empowering subordinates to make decisions quickly without seeking approval.

In situational style, the leader assesses the development level of the subordinates and adjusts their leadership style to match their level of competence and commitment. For example, the leader may adopt a directive style with subordinates who are new to a task and need clear direction, but adopt a supportive style with subordinates who are more experienced and need less direction.

Where does the Fresh Water Division store the water?

The water is collected and stored in large manufactured reservoirs.

Who is Yannick Pedersen? the director of the Fresh Water Division

the director of the Fresh Water Division

How well did find Yannick Pedersen manage to find alternative sources of potable water?

He did it very quickly

Which leadership style does Yannick have?

situational

Who is Ariadne Johansen?

the director of the Engineering Division

Which leadership style does Ariadne Johansen have?

How successful is Ariadne’s leadership style ?

His division is one of the industry leaders in productivity per employee

What type of authority do the heads of these divisions have?

Operational and tactical authority. these refer to different levels of decision-making and responsibility within an organization.

Operational authority refers to the authority and responsibility to manage the day-to-day operations of the organization, including managing resources, executing processes, and delivering results. This level of authority typically resides with middle managers or operational leaders.

Tactical authority refers to the authority and responsibility to make short to medium-term decisions and take actions to support the achievement of the organization’s goals. This level of authority typically resides with front-line managers or supervisors who are responsible for implementing the operational plans and ensuring that work is carried out effectively.

Allocation of authority between these levels will vary depending on the size, complexity, and goals of the organization. In some cases, operational and tactical authority may be combined into a single role, while in other cases, they may be separated into distinct positions.

What was caused by the climate change in the case study?

shortages of potable water in some countries

What is the productivity per employee

Productivity per employee, also known as labor productivity, is a measure of the output of goods and services generated by an average worker in a specific time period.

It is calculated by dividing the total output of an organization by the number of employees.

It can provide insights into how effectively the organization is utilizing its resources.

It’s important to note that productivity per employee is just one of many measures of productivity and that organizations should consider a range of metrics to gain a comprehensive understanding of their performance. Additionally, factors such as technology, equipment, and processes can also impact productivity and should be considered when evaluating labor productivity.

Limitation of productivity per employee measure?

Reliance on input measures: Productivity per employee is calculated based on the number of employees, which may not accurately reflect the input required to produce a given output. For example, the productivity of a worker using advanced technology may be higher than that of a worker using older technology, even though both workers are counted as one employee.

Lack of differentiation: Productivity per employee does not differentiate between workers with different levels of experience, skill, or motivation, which can impact the accuracy of the measure.

Does not reflect quality: The measure of productivity per employee is based on output, which may not accurately reflect the quality of the goods and services produced. A higher level of output does not necessarily indicate a higher level of quality.

Ignores external factors: The measure of productivity per employee does not take into account external factors that may impact the efficiency and effectiveness of the workforce, such as the state of the economy, changes in laws and regulations, or advances in technology.

The directors of which divisions had a clash and over what?

Heads of Fresh Water Division and Engineering Division over a machinery needed to update water treatment plants

What priorities of Engineering Division are visible?

Seemingly - Lowering costs (having best productivity per employee rates in the industry)

Internal vs external growth strategies

Internal and external growth strategies are two different approaches that organizations use to expand their business and increase their market share.

Internal growth strategies focus on developing and utilizing the resources and capabilities of the organization to generate new opportunities for growth. This can include expanding existing product lines, improving processes, increasing marketing efforts, and investing in research and development.

External growth strategies, on the other hand, focus on acquiring or merging with other organizations to expand the organization’s reach and capabilities. This can include acquiring companies, entering into joint ventures, or pursuing mergers and acquisitions.

Both internal and external growth strategies have their own benefits and risks. Internal growth strategies allow organizations to maintain control over their operations and processes, but they also require significant investments of time and resources. External growth strategies can provide organizations with access to new markets and resources, but they also come with the risk of cultural clashes and the potential for loss of control over operations.

Organizations often pursue a combination of internal and external growth strategies in order to balance the benefits and risks of each approach. The choice of strategy will depend on the organization’s goals, resources, and the market conditions.

What type of company is the Geng PLC

A major water supplier in the United Kingdom (UK). It was acquired to complement the Fresh Water Division

What type of growth is the acquisition of Geng PLC

What are the two main activities of the Desalination Division providing 2 income streams?

• Manufacturing and
• operation of desalination plants

What are two main products of the Desalination Division?

• Large desalination plants
• Small desalination plants for sea vessels

What are the estimates for global water desalination market growth?

will double in the next 10 years

How many states use desalination plants?

In how many states does the Desalination Division operate?

For which product of the Desalination Division is there 300% growth since 2015

Small plants for sea vessels

Which are the old divisions?

Fresh Water Division Engineering Division

Which divisions were forms as a result of external growth?

• Desalination Division,

Consumer Products Division

What was the employee turnover of H4’s factories in 2015/2016 after joining the company?

Labour turnover refers to the rate at which employees leave an organization and are replaced by new hires. It can be expressed as a percentage of total employees or as a numerical value. Here seemingly 25%

High labour turnover can indicate a number of issues within an organization, such as low job satisfaction, poor working conditions, and lack of opportunities for career advancement. On the other hand, low labour turnover can indicate a positive work environment and strong employee engagement.

Who are the customers of the Engineering Division?

The companies another division: Fresh Water Division and others, as they also produce turbines for electricity.

What is a takeover?

A takeover refers to the acquisition of one company by another. This can occur through a merger, where two companies combine to form a single entity, or through the purchase of one company’s shares by another company, resulting in the acquiring company gaining control of the target company. Takeovers can be friendly or hostile, depending on whether the target company’s management and board of directors approve of the acquisition or not. Takeovers can bring a range of benefits, such as increased market share, economies of scale, and access to new technology or markets. However, they can also result in job losses, cultural clashes, and other challenges.

What did the H4 produce?

steam and gas turbines

what was the ownership form of the acquired H4?

Family-owned

What mae be the features of a family-owned business?

Shared ownership and decision-making power among family members.

Emphasis on family values and traditions.

Sense of loyalty among employees.

Long-term focus on preserving the business for future generations.

Potential for conflicts between family members to arise.

Limited access to outside capital and business expertise.

A personalized and often less formal corporate culture.

REasons of cultural clashes between H4 and the takeover?

● Different degrees of formality – H4 may be less formal ● Different languages ● Different leadership styles – H4s may have paternalistic, as a family-owned business ● Different orientations to tasks and to people – some organizations are task-oriented (our company)and others are relationship-oriented (H4). ● Different practices (working shifts, 7/7 days; 24 hours.)

What other problems may arise due to cultural clashes besides high labour turnover?

● Lower productivity – because of unfamiliarity with norms and procedures. ● Higher labour turnover – is especially troublesome when a primary purpose of the merger was to form greater human capital. ● The stress of a merger can “bring out the worst” in people, ● Decreased profitability

What is an organisational culture?

✓ Organizational culture is the attitudes, beliefs and values of an organization.

Economies of scale?

The cost advantage a firm experiences as its production increases. As a company grows, it often becomes more efficient and is able to produce goods or services at a lower cost per unit. This can be due to a variety of factors, such as increased purchasing power for raw materials, more efficient use of equipment, and reduced administrative costs per unit of output. Economies of scale can give a company a competitive advantage, allowing it to offer its products at lower prices than its competitors or to increase its profit margins. However, these advantages can sometimes diminish at very large scale, a phenomenon known as diseconomies of scale.v

Financial methods of motivation

• Salary- motivation through security of receiving a regular income.
• Wage (time rates) motivation - possibility of overtime pay
• Wage (piece rate), motivation to increase output
• Comission - for results, usually for sales
• Profit-related pay -PRP is ordinarily used with those employees whose productivity or output cannot be measured precisely. However, the pay is based upon pre-established performance targets. Ordinarily, in a PRP system, employees receive a salary and are expected to reach certain targets. Employees exceeding the targets are then paid an additional amount
• Employee share-ownership schemes (either giving the shares instead of cash or giving possibility to buy shares cheaper). sense of ownership may motivate
• Fringe payments (perks), e.g company cars

Non-financial methods of motivation

Job-enrichment

Job rotation

Job enlargement

empowerment (access to resources and information to do their jobs and the power to make decisions)

Purpose or opportunity to make a dierence

Teamwork -socialisation

What are the responsibilities of HR?

Recruitment

Trainings and development

Motivation (advise the line management of financial and non-financial rewords)

Conflict resolution

Ensuring legal compliance

Terms of working contract, such as shifts etc?

Full time Part time Permanent vs fixed term Contract Freelance Teleworking/homeworking Flexitime Casual Friday Three-day-weekend Career break Job share Downshifting Study leave

Reasons of resistance to change?

● Mistrust ● Poor communication ● Job insecurity ● Loss of power of a skilled worker (if other skills needed) ● poor timing etc.

Methods to overcome resistance to change?

• Develop a vision of the change process and outcomes
• Forecast and allocate resources
• Involve employees in the earlier stages
• Communicate to stakeholders regularly (reporting problems or implementation dips are encouraged)
• Clear communication of the first benefits of change
• Support employees throughout the change

What is a payment to leave a company?

Compensation for termination (Severance pay) is a form of compensation that an employee receives when they are let go by a company. In other words, it is money or benefits that an employer pays an employee who loses their job through no fault of their own

What is an induction training?

that focuses on making a new employee familiar with the way the business functions and with lines of authority

How much time did the SVT need to find 300 new highly skilled people?

How well was the labour turnover managed in the end in H4s?

labour turnover figures in these factories have been consistently below the national average.

Payment on leave?

How many wind turbines are now produced?

10 per year

Which division produced the first wind turbine?

Former H4 factories of Engineering Division

What is the Consumer Products Division producing?

Water filters for use in households.

Can be the household water filters sold in African countries?

The filters don’t remove bacteria or viruses in the water, so are not suitable for use in countries that have problems with access to potable water.

What the household water filters remove?

calcium, chlorine, copper, cadmium and zinc

How did financial performance of the Skandvig (SVT) improve the Between 2005 and 2010?

SVT’s share price rose by 65 % and annual profits doubled

How did the improved profitability Between 2005 and 2010 translate to shareholders?

the company increased its dividends each year.

How did the Consumer Products Division grow after 2010? internal vs external?

by both external and internal growth. From 2010, SVT began to take over many small water filter manufacturers in both Europe and the United States of America (USA)

What does a brand leader mean?

a brand that has the largest share of sales in its market compared to other brands in the same market

Which division of the SVT aims to become a brand leader?

Which is a marketing budget? How important is it for SVT?

A marketing budget outlines all the money a business intends to spend on marketing-related projects over the quarter or year. In our case SVT Consumer Products Division produced even a 5 year budget. It is advisable to be part of a wider marketing plan. We don’t have data if the company has a marketing plan

What is a marketing plan?

Most small- to mid-size companies operate from a budget only — without a written plan to accompany it. This explains why so many marketers are tactically focused – they’re figuring out how to spend a defined budget, instead of thinking about goals and strategies.

Writing a marketing plan is a time-consuming exercise, but it forces you to think through your strategies and relevant tactics. A good marketing plan typically includes:

Financial goals

Positioning strategy

Brand strategy

Product/service overview

Detailed goals by product, distribution channel &/or customer segment

Major marketing campaigns

Detailed budget

Dates to review progress

What is the Outreach Programme ?

It is a project set up by the SVT as part of the company’s commitment to helping people in less economically developed countries (LEDCs).

What is a career break?

A career break is a period of time out from employment. It is commonly used for people to take time out of their career for personal or professional development.

How SVT support the career breaks of own employees?

SVT pays the employees’ travel expenses and accommodation costs and continues to pay their salary if after 10 years of continuous employment they want to participate in the Outreach Programme in less developed states

How many employees have participated in the Outreach Proframm?

6 000 over last 10 years

Which director participated in the Outreach Programm and in what capacity?

Jayne Dees, spent three months teaching English in village schools in Sudan in 2019

What business idea was developed by Jayne Dees after and based on her career break?

To develop low-cost, easily transportable water purifiers, using solar power, and lasting 10 years.

Which new business idea fitted well with the company’s Vision?

Who won the prize in a competition to develop a water purifier that met strict criteria in terms of cost, usability and longevity.

James Azuki, a university student from Tanzania.

Why would the winner product named “WF15”

it was designer’s fifteenth attempt that finally produced potable water in sufficient quantity

What pricing strategy will be used for WF15?

Several directors believe the WF15 should be a not-for- profit operation A minority feel that SVT should go further and subsidize the product to make it affordable to as many people as possible. Two directors are against subsidizing the WF15, as they believe subsidies will negatively impact SVT’s overall profitability, making other stakeholders in the business unhappy.

What distribution strategy will be used for WF15?

This is an unresolved issue. SVT has little experience of distributing consumer products in LEDCs and no distribution channel in place for this new product.

Examples of pricing strategies?

• Price cuts (permanent)
• Promotional Pricing/price promotion
• Penetration
• Cost-plus/mark-up
• Psychological/perceived value/99.9
• Loss leader
• Price discrimination (based on customers’ characteristics)
• Dynamic pricing (based on changing market conditions, like Bolt)
• Economy pricing
• Premium Pricing (based on quality)
• Bundle pricing (less cost in a bundle then separately)
• Complementary pricing (Paying small amount for main product and large amounts for details, like food in petting zoo

Examples of distribution strategies?

Direct distribution (zero intermediary)

Indirect distribution (1+ intermediary- wholesalers, retailers..)

Exclusive distribution (restricting to one or several distributors/outlets)

on-line distribution (exclusively or not)

Multychanel distribution etc

Why the SVT conducted a secondary market research?

To investigate the spending 135 patterns of low-income families in LEDCs and their access to media.

What marketing strategy will be used for WF15?

Which channels for advertising were researched in less developed states? Which was promising?

Televisions Newpapers and magazines Social media

Levels of social media usage were fast approaching the levels seen in advanced economies.

Decks in IB Business MD Class (38):

• 1.1 Introduction
• 1.2 Types Of Business Organizations
• 1.3 Organizational Objectives
• 1.4 Stakeholders
• 1.5 External Environment
• 1.6 Growth & Evolution
• 1.7 Planning Tools (Hl)
• 2.1 Functions Of Hr
• 2.2 Organizational Structure
• 2.3 Leadership
• 2.4 Motivation
• 2.5 Corporate Cultures (Hl)
• 2.6 Employer Vs Employee (Hl)
• 3.3 Break Even
• 3.4 Final Accounts
• 3.5. Profitability And Liquidity Ratio Analysis
• 3.7. Cash Flow
• 4.1 The Role Of Marketing
• 4.2 Marketing Planning
• 4.3 Sales Forecasting (Hl)
• 4.4 Research Methods
• 4.5 Marketing 4 P's
• 4.6 The 7 P's
• 4.7 International Marketing
• 5.1 The Role Of Operations Management
• 5.2 Production Methods
• 5.3 Lean Production And Quality Management (Hl)
• 5.4 Location
• 5.5 Production Planning (Hl)
• 5.6 R&D (Hl)
• 5.7 Crisis Management (Hl)
• Section C Change
• Section C Ethics
• Section C Globalisation
• Section C Strategy
• Section C Innovation
• Section C Culture
• Paper 1; Case Study: Skandvig Terra Plc
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IB BM Paper 1 Pre-Seen Case

Course curriculum

The paper 1 may 2023 case study- who is svt.

Here Is The Paper 1 Exam Case: Skandvig Terra ("Skohn-vik Ter-ah" but referred to as SVT)

Video Version Of The SVT Case

Our Business Is Located In Norway- Let's Take A Look At This Country

SVT Has A Division That Produces Potable ("poe-tah-bul") Water From Natural Resources

SVT Has A Division That Constructs & Operates Desalination Plants

SVT Sells Smaller Desalination Systems To Cruise Ships

Why Aren't Desalination Plants Everywhere?

7 Of The 10 Largest Desalination Plants In The USA Are In Florida (Expensive To Build/Requires Fossil Fuels/Brine Is Dangerous)

SVT Has A Division That Manufactures Water Treatment EQUIPMENT

SVT Has A Division That Manufactures Home Water Filters

SVT Is Also Responsible For Maintaining The Regional Water Supply Networks

Climate Change Causes Shortages Of Potable (= Drinkable/Safe) Water

SVT Also Manufactures Wind Turbines To Create Electricity To Power Water Treatment Plants

SVT Wants To Manufacture Solar-Powered Portable Water Purifiers For Developing Countries (CSR)

We Have A Commercial and Industrial Water Purification Equipment Manufacturer In Sarasota

Our Local Water Treatment Plants

Why Does Florida Need To Conserve Water?

Let's Analyze This Case (Copy These Provided Answers- As You Write Try To Memorize)

Organizational Chart

Situational vs. Autocratic Leadership Styles

Who Are All The Stakeholders?

Stakeholder Maps

Analysis Of The Company

SWOT Analysis

ANSOFF Matrix

STEEPLE & PESTLE

The BCG Matrix

SVT Topics To Study For The Paper 1 Exam

LINK- Study SVT Key Terms With This Quizlet

Link To SVT Key Terms Quizlet

SVT Blooket: Choose The Correct Key Term (You Can Play Solo)

SVT Blooket: Choose The Correct Definition (You Can Play Solo)

Play A Kahoot For The SVT Case

APRIL ASSIGNMENT QUESTION SET A: Figure Out Potential Exam Answers & Post Them In Schoology

Post Your Work In Schoology. Here's How...

Set A Exam Questions- Post The Question & Your Answer In Our Discussion Groups

Unit 3 Finance Team: Work Together On This Potential Cash Flow Question

Unit 3 Finanace Team: Work Together On These Quantitative Questions & Calculations

Done With All Your Team's Unit Questions? Work On These Paper 1 Topics

Done With Your Unit Questions? Present These Tools and Theories To The Examiners...

Copy Notes For These 46 SVT Key Concepts

A Decision-Tree Is Likely! Prepare An Answer To This Excellent 20 Mark Question

APRIL ASSIGNMENT QUESTION SET B (Try Using AI To Help Create Answers)

Examples Of What ChatGPT Can Do For People

How To Create A ChatGPT Account

SET B Questions Divided By Unit. Post Your Answers

More Questions For Your Unit - Decide Which Fit Best With Each Team

Here Is The Plain Text Of The Paper 1 Case- Use What You Need In Your AI Prompt

These Are Your Teacher's First Results From An AI SWOT Request

Assignment: Read, Comment, Elaborate, Ask Questions In Your Classmates Posts

In The Future: How To Cite A Response From AI (Better To Not Present AI Responses As Your Own)

Go Back Into Your Examiner Notes

FINAL ACTIVITY: LINK TO EXAM IB BM PREP COURSE

HL SVT MOCK EXAM

Instructions For SVT Practice Days

HL Mock Question 1 Set

HL Mock Question 1 Markscheme

HL Mock Question 2 Set

HL Mock Question 2 Markscheme

HL Mock Question 3 Set

HL Mock Question 3 Markscheme

HL Mock Question 4 Set

HL Mock Question 4 Markscheme

HL Mock Question 5 Set

HL Mock Question 5 Markscheme

SL SVT Mock Exam

SVT SL Mock Question 1 Set

SVT SL Mock Question 1 Markscheme

SVT SL Mock Question 2 Set

SVT SL Mock Question 2 Markscheme

SVT SL Mock Question 3 Set

SVT SL Mock Question 3 Markscheme

SVT SL Mock Question 4 Set

SVT SL Mock Question 4 Markscheme

Business Management Paper 1 May 2023 Case Study: Paper 1 May 2023 - Skandvig Terra PLC (SVT)-INDIVIDUAL STUDENTS / TEACHER-ONLY access e-course

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An e-learning course that includes:

Presentations with analysis per Unit for the case study

Quizzes with key definitions and application of business tools for the case study

Revision quizzes for all topics that are in the case study

Mock exams with the mark schemes

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