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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.

01 Hours 15 Minutes

50 Marks

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IB BUSINESS MANAGEMENT SL, Paper 1, November, 2013, TZ0, Solved Past Paper

Master the 2013 IB November for Paper 1 Business Management SL with examiner tailored solutions and comments for TZ0

Question 1 [Explained]

This question involves understanding key business concepts and applying them to a specific company, RDB. The question is divided into three parts: defining terms, distinguishing between types of growth, and analyzing management strategies.

Question 1 [a] [Explanation]

This part of the question asks you to define two important business terms: economies of scale and empowerment.

Question 1 [a] [i] [Explanation]

Economies of scale refer to the cost advantages that a business can achieve due to the scale of its operations. As the scale of production 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 gained.

Question 1 [a] [ii] [Explanation]

Empowerment is a motivational technique that involves giving employees more control over their work and decision-making processes. This can include allowing employees to set their own schedules, choose which tasks to work on, and make decisions about how to complete their work.

Question 1 [b] [Explanation]

This part of the question asks you to distinguish between internal growth and external growth, with reference to RDB.

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.

Question 2 [Explained]

This question explores various aspects of business operations and financial performance, focusing on just-in-time production and financial ratios. The question is divided into three main parts: (a) discussing the advantages and disadvantages of just-in-time production, (b) calculating financial ratios, and (c) interpreting the results of these calculations.

Question 2 [a] [Explanation]

By the 1970s, Japanese companies had moved to just-in-time production. This question asks you to outline one advantage and one disadvantage of just-in-time production.

Question 2 [b] [Explanation]

Using data from the additional information on page 3, calculate RDB's:

Question 2 [b] [i] [Explanation]

Gross profit margin in 1970 and 1975.