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 30 Minutes
100 Marks
Calculator NOT allowed
IB BUSINESS MANAGEMENT HL, Paper 2, November, 2004, TZ0, Solved Past Paper
Master the 2004 IB November for Paper 2 Business Management HL with examiner tailored solutions and comments for TZ0
Question 1 [Explained]
The context of this question revolves around the telecommunications market in China, which is experiencing rapid growth and transformation. The number of mobile phone users in China is projected to increase significantly, indicating a burgeoning market with substantial potential for expansion. Despite this growth, the market is not yet saturated, with only a small percentage of the population currently using mobile phones compared to Western countries. This presents both opportunities and challenges for businesses looking to enter the market.
The Chinese telecommunications industry is primarily controlled by state-owned entities, but recent deregulation and foreign ownership opportunities have emerged following China's entry into the World Trade Organization (WTO). This shift suggests a more competitive environment, with potential for increased foreign investment and participation. The economic landscape is characterized by high GDP growth, a large youth population, and a cultural inclination towards status goods like mobile phones, which are becoming essential for communication and social status.
However, there are also challenges, such as the high cost of services for many, particularly the unemployed and urban poor, and the centralized control of the industry. The question asks you to evaluate the potential success of a foreign business entering this dynamic market using a PEST analysis, which involves examining the Political, Economic, Social, and Technological factors that could influence business operations.
Question 1 [a] [Explanation]
This question requires you to evaluate the potential success of a foreign business entering the Chinese telecommunications market by conducting a PEST analysis. A PEST analysis is a strategic tool used to identify and analyze the key external factors (Political, Economic, Social, and Technological) that could impact an organization. In this context, you need to consider the regulatory environment, economic growth, social trends, and technological advancements in China. The goal is to assess the opportunities and threats posed by these factors and determine the likelihood of success for a foreign business in this market.
Question 1 [b] [Explanation]
This question asks you to examine how the objectives of a Chinese telecommunication company might change if it transitions from the public to the private sector. In the public sector, the company's objectives may focus on providing services to the community and ensuring employment. However, in the private sector, the focus may shift towards profit maximization, efficiency, and increasing market share. You need to consider how these changes in objectives could impact the company's operations and strategies.
Question 1 [c] [Explanation]
This question asks you to explain two possible costs and two possible benefits for Chinese companies resulting from free trade and deregulation of the telecommunications market. Free trade and deregulation can lead to increased competition and efficiency, but they may also pose challenges such as the need for investment and reorganization. You need to consider both the short-term costs and long-term benefits for Chinese companies in this context.
Question 2 [Explained]
This question explores the challenges faced by national airlines, such as British Airways and Air New Zealand, as they attempt to compete with low-cost airlines. These national airlines are implementing strategies to attract cost-conscious travelers, including reducing fares and removing booking restrictions, while maintaining service quality. The question examines the broader industry context, where low-cost airlines are gaining market share, leading to increased share prices for these airlines and decreased share prices for national carriers. Analysts predict that weaker airlines may disappear, and smaller national airlines may need to adapt by becoming niche players or risk being absorbed by competitors.
Question 2 [a] [Explanation]
This question asks you to examine the impact of the poor performance of national airlines on two specific stakeholder groups. Stakeholders are individuals or groups that have an interest in the performance and actions of a company. In the context of national airlines, stakeholders could include employees, customers, shareholders, suppliers, and the government. The question requires an analysis of how these stakeholders might be affected by the challenges faced by national airlines, such as financial losses, reduced market share, and increased competition from low-cost carriers.