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
70 Marks
Calculator is allowed
IB BUSINESS MANAGEMENT HL, Paper 2, May, 2016, TZ0, Solved Past Paper
Master the 2016 IB May for Paper 2 Business Management HL with examiner tailored solutions and comments for TZ0
Question 1 [Explained]
David is preparing to open a small coffee shop named Fair Coffee (FC) at a central city location. On the opening day, FC will have an initial stock of 500 kg of coffee beans. David anticipates that the coffee beans will be consumed at a consistent rate over the first six months of operation. The table below provides key details about the stock levels and usage:
| Maximum stock level | Minimum stock level | Re-order quantity level | Re-order quantity | Quantity used per month |
|---|---|---|---|---|
| 500 kg | 200 kg | 350 kg | 300 kg | 150 kg |
The lead time for delivery of the coffee beans is 1 month.
Question 1 [a] [Explanation]
This question asks you to identify two elements of the extended marketing mix (seven Ps) that are relevant to Fair Coffee (FC).
Question 1 [b] [Explanation]
This question requires you to use the information provided in the table to construct a fully labelled stock control chart for Fair Coffee (FC) for the first six months of operation.
Question 1 [c] [Explanation]
This question asks you to explain the effects of a late delivery of coffee beans on Fair Coffee's stock level, using figures from the chart you constructed in part (b).
Question 1 [c] [i] [Explanation]
Explain the effects of the late delivery on FC's stock level.
Question 1 [c] [ii] [Explanation]
Explain the effects of the late arrival delivering only 75 kg of coffee.
Question 2 [Explained]
Aroma Corporation (AC) is a mass-market cosmetics company that produces soaps. Concerned about falling market share and profit, AC conducted new market research. The senior management team is considering two strategic options:
- Option 1: research and develop new environmentally friendly soaps
- Option 2: buy new machinery to produce more of the current products
Question 2 [a] [Explanation]
This question asks you to describe one method (source) of secondary market research that AC could have used. Secondary market research involves gathering existing data from various sources rather than collecting new data directly from respondents.