These are explanations and solutions for IB past papers, not the official version. For official papers, you can go to IB Follet or access them through your school.
These are explanations and solutions for IB past papers, not the official version. For official papers, you can go to IB Follet or access them through your school.
These are explanations and solutions for IB past papers, not the official version. For official papers, you can go to IB Follet or access them through your school.
These are explanations and solutions for IB past papers, not the official version. For official papers, you can go to IB Follet or access them through your school.
02 Hours 15 Minutes
80 Marks
Calculator is allowed
IB BUSINESS MANAGEMENT HL, Paper 1, November, 2013, TZ0, Solved Past Paper
Master the 2013 IB November for Paper 1 Business Management HL with examiner tailored solutions and comments for TZ0
Question 1 [Explained]
This question covers several aspects of business management, including key terms and concepts, as well as an analysis of growth strategies and management structures. It is divided into three main parts: defining terms, distinguishing between types of growth, and analyzing the advantages and disadvantages of a specific management structure.
Question 1 [a] [Explanation]
This part of the question asks you to define two important business terms: 'economies of scale' and 'empowerment'. These terms are crucial in understanding how businesses operate efficiently and motivate their employees.
Question 1 [a] [i] [Explanation]
The term 'economies of scale' refers to the cost advantages that a business can achieve by increasing its scale of production. As the production volume increases, the cost per unit of output generally decreases. This is because fixed costs are spread over a larger number of units, and operational efficiencies are achieved.
Question 1 [a] [ii] [Explanation]
The term 'empowerment' refers to a motivational technique that involves giving employees more autonomy and control over their work. This can include decision-making authority, flexibility in how they complete tasks, and the ability to manage their own time.
Question 1 [b] [Explanation]
This part of the question asks you to distinguish between internal growth and external growth, specifically in the context of the company RDB. Internal growth refers to the expansion of a business through its own operations, while external growth involves mergers, acquisitions, or strategic alliances.
Question 1 [c] [Explanation]
This part of the question asks you to analyze the advantages and disadvantages of each new RDB factory being 'jointly managed by one experienced RDB senior manager from Europe and one local manager familiar with the language and culture'. This involves evaluating the potential benefits and challenges of such a management structure.
Question 2 [Explained]
This question involves understanding the concept of just-in-time (JIT) production, calculating financial ratios, and interpreting the results of these calculations. The JIT production method is a strategy used by companies to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs. The financial ratios to be calculated include the gross profit margin and the acid test (quick) ratio, which are essential indicators of a company's profitability and liquidity, respectively.
Question 2 [a] [Explanation]
This part of the question asks you to outline one advantage and one disadvantage of just-in-time (JIT) production. JIT production is a strategy where materials and products are produced or acquired only as needed for immediate use, minimizing inventory costs.
Question 2 [b] [Explanation]
This part of the question requires you to use data from the additional information provided to calculate RDB's gross profit margin and acid test (quick) ratio for the years 1970 and 1975. The gross profit margin is a measure of a company's profitability, calculated as the difference between sales and the cost of goods sold, divided by sales. The acid test ratio is a measure of a company's liquidity, calculated as the ratio of current assets minus inventory to current liabilities.
Question 2 [b] [i] [Explanation]
This subpart asks you to calculate the gross profit margin for RDB in the years 1970 and 1975. The gross profit margin is calculated using the formula: