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, May, 2012, TZ0, Solved Past Paper
Master the 2012 IB May for Paper 2 Business Management SL with examiner tailored solutions and comments for TZ0
Question 1 [Explained]
This question revolves around the marketing strategies and financial analysis of a restaurant named Asado Heaven (AH). The question is divided into several parts, each focusing on different aspects of business management, including promotional methods, financial calculations, and strategic positioning.
The question requires an understanding of below-the-line promotional methods, break-even analysis, margin of safety, profit calculation, and strategic positioning using a position map. Each part of the question is designed to test different skills, from mathematical calculations to strategic thinking and analysis.
Question 1 [a] [Explanation]
This part of the question asks you to identify and describe below-the-line promotional methods that Asado Heaven (AH) could use. Below-the-line promotion refers to marketing strategies that do not involve mass media advertising. These methods are often more targeted and can include direct mail, leaflets, loyalty programs, and more.
The goal is to suggest ways in which AH can effectively reach its customers and enhance brand loyalty without relying on traditional advertising channels. Consider methods that are cost-effective and can directly engage with the target audience.
Question 1 [b] [i] [Explanation]
This part of the question requires you to calculate the break-even level of output for Asado Heaven (AH). Break-even analysis is a financial calculation used to determine the number of units a business must sell to cover its costs. It involves understanding fixed costs, variable costs, and contribution per unit.
The break-even point is where total revenue equals total costs, resulting in zero profit. This calculation is essential for businesses to understand their financial viability and set sales targets.
Question 1 [b] [ii] [Explanation]
This part of the question asks you to calculate the margin of safety for Asado Heaven (AH). The margin of safety is a financial metric that indicates how much sales can drop before the business reaches its break-even point. It is calculated as the difference between the current level of output and the break-even level of output.
The margin of safety provides insight into the risk associated with the business's current sales level and helps in assessing the financial stability of the business.
Question 1 [b] [iii] [Explanation]
This part of the question requires you to calculate the profit for Asado Heaven (AH) using two different methods. Profit is a key financial metric that indicates the financial success of a business. It is calculated as the difference between total revenue and total costs.
The question provides an opportunity to apply different approaches to profit calculation, reinforcing the understanding of financial concepts and their application in business scenarios.