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
100 Marks
Calculator NOT allowed
IB BUSINESS MANAGEMENT HL, Paper 2, May, 2009, TZ0, Solved Past Paper
Master the 2009 IB May for Paper 2 Business Management HL with examiner tailored solutions and comments for TZ0
Question 1 [Explained]
Altair Incorporated, a well-established company in the pharmaceutical industry, has been working on developing a vaccine named Zyra to combat malaria. The company is considering building a production facility in one of two sub-Saharan African countries, Alpha or Bravo, where malaria is prevalent. The decision involves various financial and non-financial considerations, including the cost of building the facility, potential profits, and ethical concerns regarding pricing strategies.
The company aims to bring Zyra to market quickly due to high research and development costs and shareholder pressure. The patent for Zyra will last for five years, providing Altair Incorporated with exclusive rights to produce the vaccine during this period. The company is also contemplating setting a fixed global price for Zyra, which has sparked debate among international pressure groups advocating for price discrimination to make the vaccine affordable for those at greatest risk.
Question 1 [a] [Explanation]
This question asks you to define two key terms related to the pharmaceutical industry and pricing strategies. Understanding these terms is crucial for analyzing the strategic decisions Altair Incorporated faces in bringing Zyra to market.
Question 1 [a] [i] [Explanation]
Define the term patent.
Question 1 [a] [ii] [Explanation]
Define the term price discrimination.
Question 1 [b] [i] [Explanation]
This question requires you to calculate the payback period, average rate of return (ARR), and net present value (NPV) for Altair Incorporated's potential production facilities in Alpha and Bravo. These financial metrics will help assess the viability and profitability of each location. Ensure to show all your working for full marks.
Question 1 [b] [ii] [Explanation]
Comment on the results from part (b)(i) and other information from the stimulus material. Consider both financial and non-financial factors that may influence Altair Incorporated's decision on the location of the Zyra production facility.
Question 1 [b] [iii] [Explanation]
Explain two non-financial factors Altair Incorporated should consider before selecting the location of the Zyra production plant. These factors should be relevant to the company's strategic objectives and the context provided.