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, November, 2019, TZ0, Solved Past Paper
Master the 2019 IB November for Paper 2 Business Management HL with examiner tailored solutions and comments for TZ0
Question 1 [Explained]
Sassy, a partnership between fashion designers, is considering some strategic changes. They have conducted research and presented three options, outlining the costs and expected revenue for each. The economy is predicted to either improve or stay the same, with a probability of 0.3 for the economy staying the same.
Options | Costs | Expected revenue |
|---|---|---|
Option 1: Increase production capacity | $200,000 | $300,000 (economy improves) |
Option 2: Dissolve the partnership and sell Sassy's brand name to a competitor | Not applicable | $150,000 |
Option 3: Become a private limited company and: | $150,000 (legal costs) | Not applicable |
No additional costs | $220,000 (economy improves) | |
$170,000 additional cost | $550,000 (economy improves) |
Question 1 [a] [Explanation]
This question asks you to describe one disadvantage for an organization of operating at high capacity utilization.
Question 1 [b] [Explanation]
This question asks you to construct a fully labelled decision tree and identify the best option for Sassy, showing all your working.
Question 1 [c] [Explanation]
This question asks you to explain one limitation for Sassy of using a decision tree as a planning tool.