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.
01 Hours 45 Minutes
60 Marks
Calculator is allowed
IB BUSINESS MANAGEMENT SL, Paper 2, November, 2012, TZ0, Solved Past Paper
Master the 2012 IB November for Paper 2 Business Management SL with examiner tailored solutions and comments for TZ0
Question 1 [Explained]
Wavin' Surfboards (WS) is a company that manufactures surfboards, founded by Brent Bass in 1978. Initially a sole proprietorship, WS transitioned into a private limited company in 1991 due to its growth. Brent, who has a laissez-faire leadership style and no formal business training, faces challenges in managing the expanding business. The company is known for its high-quality surfboards, leading to increased sales. The accountant forecasts that WS will need a larger building in two years to accommodate growth. Currently, the company has a wide span of control, and increasing production will require more managers, posing a dilemma for Brent on whether to recruit internally or externally.
Question 1 [a] [Explanation]
This part of the question focuses on recruitment strategies, specifically the advantages and disadvantages of internal recruitment, and methods of external recruitment.
Question 1 [a] [i] [Explanation]
Internal recruitment involves filling a job vacancy with a current employee from within the organization. One advantage of internal recruitment is that it is generally cheaper and faster than external recruitment. Employees are already familiar with the company culture and processes, reducing the need for extensive training. However, a disadvantage is that it limits the pool of applicants, potentially missing out on fresh ideas and skills that external candidates might bring. Additionally, it can create tension among employees, as promoting one person may lead to dissatisfaction among others who were not chosen.
Question 1 [a] [ii] [Explanation]
External recruitment involves sourcing candidates from outside the organization. This part of the question requires a description of one method of external recruitment.
Question 1 [b] [Explanation]
This part of the question requires the preparation of a fully labelled break-even chart for WS at its current actual sales of 2400 units in the current building.
Question 1 [c] [Explanation]
This part of the question involves financial calculations related to WS's proposed new building, including contribution per surfboard, initial forecast profit, and an explanation of forecasted lower variable costs.
Question 1 [c] [i] [Explanation]
Calculate the contribution of one surfboard in the proposed new building.
Question 1 [c] [ii] [Explanation]
Calculate the initial forecast profit for WS for its first year of operation in the proposed new building (show all your working).