School / IB / BM HL / Growth and evolution (Unit 1, HL) Exam-style + marking analysis
Growth and evolution (Unit 1, HL) Growth-strategy tools from the Business Management Toolkit, such as SWOT and the Ansoff Matrix, applied to original case scenarios.
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Business Management HL Growth and evolution (Unit 1, HL)
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5 A company is deciding how to grow: (Option A) reinvesting its own retained profit to gradually open new stores itself, or (Option B) acquiring an existing chain of stores from a competitor. (a) Identify Option A as organic (internal) growth or external growth. (b) Identify Option B as organic (internal) growth or external growth. (c) Suggest one situation in which a company would prefer Option B over Option A. ✓ Reviewed Paper 1 style Easy 3 marks No calculator + 6 Marking analysis: A learner attempts the following task: “A company is deciding how to grow: (Option A) reinvesting its own retained profit to gradually open new stores itself, or (Option B) acquiring an existing chain of stores from a competitor. (a) Identify Option A as organic (internal) growth or external growth. (b) Identify Option B as organic (internal) growth or external growth. (c) Suggest one situation in which a company would prefer Option B over Option A.” Their response addresses only this point: “Identifies Option A as organic (internal) growth.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks. ✓ Reviewed Marking analysis Easy 3 marks No calculator + 7 Two companies of similar size in the same industry combine to form a single new company, with both sets of shareholders agreeing to the combination. (a) Identify this method of external growth. (b) Distinguish this from a takeover (acquisition), in which one company purchases a controlling stake in another. ✓ Reviewed Paper 1 style Easy 3 marks No calculator + 8 Marking analysis: A learner attempts the following task: “Two companies of similar size in the same industry combine to form a single new company, with both sets of shareholders agreeing to the combination. (a) Identify this method of external growth. (b) Distinguish this from a takeover (acquisition), in which one company purchases a controlling stake in another.” Their response addresses only this point: “Identifies this as a merger.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks. ✓ Reviewed Marking analysis Easy 3 marks No calculator + 9 A domestic airline wants to start offering international flights but lacks the local knowledge, landing rights, and airport relationships needed in a specific foreign country. It partners with a foreign airline: the two remain fully independent companies, but they agree to jointly create and jointly own a brand-new, separate airline company to operate these specific international routes together. (a) Identify this method of external growth. (b) Distinguish it from a strategic alliance, in which the two companies would cooperate without creating a new, separate jointly owned company. ✓ Reviewed Paper 1 style Easy 3 marks No calculator + 10 Marking analysis: A learner attempts the following task: “A domestic airline wants to start offering international flights but lacks the local knowledge, landing rights, and airport relationships needed in a specific foreign country. It partners with a foreign airline: the two remain fully independent companies, but they agree to jointly create and jointly own a brand-new, separate airline company to operate these specific international routes together. (a) Identify this method of external growth. (b) Distinguish it from a strategic alliance, in which the two companies would cooperate without creating a new, separate jointly owned company.” Their response addresses only this point: “Identifies this as a joint venture.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks. ✓ Reviewed Marking analysis Easy 3 marks No calculator + 11 A successful restaurant chain wants to expand rapidly into many new cities without funding all the new restaurants itself. It allows independent local business owners to open and operate new restaurants using its brand name, recipes, and business systems, in exchange for an upfront fee and ongoing royalty payments. (a) Identify this method of growth. (b) Explain one benefit of this method for the restaurant chain (the franchisor). (c) Explain one benefit of this method for the local business owner (the franchisee). ✓ Reviewed Paper 1 style Easy 3 marks No calculator + 12 Marking analysis: A learner attempts the following task: “A successful restaurant chain wants to expand rapidly into many new cities without funding all the new restaurants itself. It allows independent local business owners to open and operate new restaurants using its brand name, recipes, and business systems, in exchange for an upfront fee and ongoing royalty payments. (a) Identify this method of growth. (b) Explain one benefit of this method for the restaurant chain (the franchisor). (c) Explain one benefit of this method for the local business owner (the franchisee).” Their response addresses only this point: “Identifies this as franchising.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks. ✓ Reviewed Marking analysis Easy 3 marks No calculator + 13 As a manufacturing company has grown much larger, its head office has become slower at communicating decisions to individual factories, and different departments increasingly duplicate each other's work without realising it. (a) Identify the concept illustrated by these problems. (b) Explain how growing significantly larger can specifically cause the communication problem described. ✓ Reviewed Paper 1 style Easy 3 marks No calculator + 14 Marking analysis: A learner attempts the following task: “As a manufacturing company has grown much larger, its head office has become slower at communicating decisions to individual factories, and different departments increasingly duplicate each other's work without realising it. (a) Identify the concept illustrated by these problems. (b) Explain how growing significantly larger can specifically cause the communication problem described.” Their response addresses only this point: “Identifies diseconomies of scale.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks. ✓ Reviewed Marking analysis Easy 3 marks No calculator + 15 A large supermarket chain is able to negotiate significantly lower prices per unit from suppliers than a small independent grocery store can, simply because it buys in much greater bulk. (a) Identify the type of economy of scale illustrated here. (b) Identify and briefly describe one other distinct type of economy of scale that a large business could benefit from. ✓ Reviewed Paper 1 style Easy 2 marks No calculator + 16 Marking analysis: A learner attempts the following task: “A large supermarket chain is able to negotiate significantly lower prices per unit from suppliers than a small independent grocery store can, simply because it buys in much greater bulk. (a) Identify the type of economy of scale illustrated here. (b) Identify and briefly describe one other distinct type of economy of scale that a large business could benefit from.” Their response addresses only this point: “Identifies purchasing (bulk-buying) economies of scale.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks. ✓ Reviewed Marking analysis Easy 2 marks No calculator + 23 A company based in a culture that values individual achievement and direct communication is expanding into a country whose culture, according to Hofstede's cultural dimensions, scores much higher on collectivism and places strong value on group harmony. (a) Identify the specific Hofstede dimension being described. (b) Explain one way the company's management style or HR practices might need to adapt when managing employees in this new cultural context. ✓ Reviewed Paper 1 style Easy 3 marks No calculator + 24 Marking analysis: A learner attempts the following task: “A company based in a culture that values individual achievement and direct communication is expanding into a country whose culture, according to Hofstede's cultural dimensions, scores much higher on collectivism and places strong value on group harmony. (a) Identify the specific Hofstede dimension being described. (b) Explain one way the company's management style or HR practices might need to adapt when managing employees in this new cultural context.” Their response addresses only this point: “Identifies the individualism versus collectivism dimension.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks. ✓ Reviewed Marking analysis Easy 3 marks No calculator + 25 A factory experiences a sudden, unexpected chemical spill that forces an immediate evacuation and a halt to production, requiring the management team to respond within hours. (a) Identify whether this situation calls primarily for crisis management or contingency planning. (b) Explain the key difference between crisis management and contingency planning. ✓ Reviewed Paper 1 style Easy 3 marks No calculator + 26 Marking analysis: A learner attempts the following task: “A factory experiences a sudden, unexpected chemical spill that forces an immediate evacuation and a halt to production, requiring the management team to respond within hours. (a) Identify whether this situation calls primarily for crisis management or contingency planning. (b) Explain the key difference between crisis management and contingency planning.” Their response addresses only this point: “Identifies this as requiring crisis management.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks. ✓ Reviewed Marking analysis Easy 3 marks No calculator + 29 A traditional retailer that has only ever sold through physical stores launches an online e-commerce store to reach customers nationwide. (a) Explain one way this digital business model allows the company to grow beyond the geographic limits of its physical stores. (b) Explain one new challenge the company is likely to face as a result of operating online that it did not face with physical stores alone. ✓ Reviewed Paper 1 style Easy 2 marks No calculator + 30 Marking analysis: A learner attempts the following task: “A traditional retailer that has only ever sold through physical stores launches an online e-commerce store to reach customers nationwide. (a) Explain one way this digital business model allows the company to grow beyond the geographic limits of its physical stores. (b) Explain one new challenge the company is likely to face as a result of operating online that it did not face with physical stores alone.” Their response addresses only this point: “Explains that an online store allows the company to reach customers anywhere with internet access, no longer limited to people who can physically travel to a store location, enabling growth into new geographic markets without the cost of opening new physical branches.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks. ✓ Reviewed Marking analysis Easy 2 marks No calculator + Self-assessed 0 / 0
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