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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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1 A regional airline is considering whether to expand into long-haul international routes. Its strengths include a strong safety record and a loyal domestic customer base; its weaknesses include an ageing fleet unsuited to long-haul flights. (a) Explain how this SWOT information could support a decision against immediate long-haul expansion. (b) Suggest one internal action the airline could take before expanding to address the identified weakness. ✓ Reviewed Paper 1 style Medium 4 marks No calculator + 2 Marking analysis: A learner attempts the following task: “A regional airline is considering whether to expand into long-haul international routes. Its strengths include a strong safety record and a loyal domestic customer base; its weaknesses include an ageing fleet unsuited to long-haul flights. (a) Explain how this SWOT information could support a decision against immediate long-haul expansion. (b) Suggest one internal action the airline could take before expanding to address the identified weakness.” Their response addresses only this point: “Explains that the ageing fleet weakness directly undermines the operational requirements of long-haul flying, such as range, comfort and reliability.” Evaluate the response against the complete 4-mark task. Identify what earns credit and state every additional requirement needed for full marks. ✓ Reviewed Marking analysis Medium 4 marks No calculator + 3 A furniture retailer is evaluating two growth options: (Option A) selling its existing furniture range through a new online store to its existing domestic market, or (Option B) selling a new range of outdoor furniture to a new overseas market. (a) Using the Ansoff Matrix, identify the growth strategy represented by Option A. (b) Identify the growth strategy represented by Option B. (c) State which option is generally considered lower risk. (d) Explain why. ✓ Reviewed Paper 2 style Medium 5 marks No calculator + 4 Marking analysis: A learner attempts the following task: “A furniture retailer is evaluating two growth options: (Option A) selling its existing furniture range through a new online store to its existing domestic market, or (Option B) selling a new range of outdoor furniture to a new overseas market. (a) Using the Ansoff Matrix, identify the growth strategy represented by Option A. (b) Identify the growth strategy represented by Option B. (c) State which option is generally considered lower risk. (d) Explain why.” Their response addresses only this point: “Identifies Option A as market penetration/market development, since it uses an existing product in an existing market through a new channel.” Evaluate the response against the complete 5-mark task. Identify what earns credit and state every additional requirement needed for full marks. ✓ Reviewed Marking analysis Medium 5 marks No calculator + 17 Two businesses fail within the same year: Business A fails because its founder made poor cash-flow management decisions and failed to control costs; Business B fails because a sudden, severe economic recession collapses demand across its entire industry. (a) Identify Business A's cause of failure as internal or external. (b) Identify Business B's cause of failure as internal or external. (c) Explain why distinguishing between internal and external causes of failure matters for evaluating the quality of a company's management. ✓ Reviewed Paper 1 style Medium 4 marks No calculator + 18 Marking analysis: A learner attempts the following task: “Two businesses fail within the same year: Business A fails because its founder made poor cash-flow management decisions and failed to control costs; Business B fails because a sudden, severe economic recession collapses demand across its entire industry. (a) Identify Business A's cause of failure as internal or external. (b) Identify Business B's cause of failure as internal or external. (c) Explain why distinguishing between internal and external causes of failure matters for evaluating the quality of a company's management.” Their response addresses only this point: “Identifies Business A's cause of failure as internal.” Evaluate the response against the complete 4-mark task. Identify what earns credit and state every additional requirement needed for full marks. ✓ Reviewed Marking analysis Medium 4 marks No calculator + 19 A company proudly reports that its total sales revenue grew by 40% over the past year. (a) Identify two other measures, besides sales revenue, that could be used to assess whether a business has genuinely grown. (b) Explain why relying on sales revenue growth alone can give a misleading picture of a business's overall growth or success. ✓ Reviewed Paper 1 style Medium 4 marks No calculator + 20 Marking analysis: A learner attempts the following task: “A company proudly reports that its total sales revenue grew by 40% over the past year. (a) Identify two other measures, besides sales revenue, that could be used to assess whether a business has genuinely grown. (b) Explain why relying on sales revenue growth alone can give a misleading picture of a business's overall growth or success.” Their response addresses only this point: “Identifies a valid alternative measure, such as market share, number of employees, number of outlets/branches, or total assets.” Evaluate the response against the complete 4-mark task. Identify what earns credit and state every additional requirement needed for full marks. ✓ Reviewed Marking analysis Medium 4 marks No calculator + 21 A multinational company (MNC) based in a wealthy country opens a large factory in a developing country, hiring thousands of local workers and introducing new production technology, while also repatriating (sending home) most of its profits rather than reinvesting them locally. (a) Explain one benefit of this MNC's investment for the host (developing) country. (b) Explain one cost or drawback of this MNC's investment for the host country. ✓ Reviewed Paper 1 style Medium 4 marks No calculator + 22 Marking analysis: A learner attempts the following task: “A multinational company (MNC) based in a wealthy country opens a large factory in a developing country, hiring thousands of local workers and introducing new production technology, while also repatriating (sending home) most of its profits rather than reinvesting them locally. (a) Explain one benefit of this MNC's investment for the host (developing) country. (b) Explain one cost or drawback of this MNC's investment for the host country.” Their response addresses only this point: “States a valid benefit, such as job creation, the transfer of new technology and skills to the local workforce, or increased tax revenue and export earnings for the host country.” Evaluate the response against the complete 4-mark task. Identify what earns credit and state every additional requirement needed for full marks. ✓ Reviewed Marking analysis Medium 4 marks No calculator + 27 A growing manufacturing company is under pressure from customers and investors to reduce its environmental impact. It considers 'greening' its operations, for example by switching to renewable energy and more sustainable packaging. (a) Explain one way 'greening' the business could benefit the company in the long run. (b) Explain one reason the company's management might hesitate to invest in greening in the short run. ✓ Reviewed Paper 1 style Medium 4 marks No calculator + 28 Marking analysis: A learner attempts the following task: “A growing manufacturing company is under pressure from customers and investors to reduce its environmental impact. It considers 'greening' its operations, for example by switching to renewable energy and more sustainable packaging. (a) Explain one way 'greening' the business could benefit the company in the long run. (b) Explain one reason the company's management might hesitate to invest in greening in the short run.” Their response addresses only this point: “States a valid long-run benefit, such as an improved brand reputation attracting environmentally conscious customers and investors, or long-run cost savings from greater energy efficiency.” Evaluate the response against the complete 4-mark task. Identify what earns credit and state every additional requirement needed for full marks. ✓ Reviewed Marking analysis Medium 4 marks No calculator + Self-assessed 0 / 0
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