BUSINESS IB NOTES
Unit 1: Business organisation and environment
❏ 1.1 Introduction to business management
❏ 1.2 Types of organisations
❏ 1.3 Organisational objectives
❏ 1.4 Stakeholders
❏ 1.5 External environment
❏ 1.6 Growth and evolution
Unit 2: Human resource management
❏ 2.1 Functions and evolution of human resource management
❏ 2.2 Organisational structure
❏ 2.3 Leadership and management
❏ 2.4 Motivation
Unit 3: Finance and accounts
❏ 3.1 Sources of finance
❏ 3.2 Costs and revenues
❏ 3.3 Break-even analysis
❏ 3.4 Final accounts (some HL only)
❏ 3.5 Profitability and liquidity ratio analysis
❏ 3.7 Cash flow
❏ 3.8 Investment appraisal (some HL only)
Unit 4: Marketing
❏ 4.1 The role of marketing
❏ 4.2 Marketing planning (including introduction to the four Ps)
❏ 4.4 Market research
❏ 4.5 The four Ps (product, price, promotion, place)
❏ 4.8 E-commerce
Unit 5: Operations management
❏ 5.1 The role of operations management
❏ 5.2 Production methods
❏ 5.4 Location
, 1
GENERAL:
Change: The adaptation of the organization to accommodate the external business environment
- Firms usually implement changes to survive, expand or remain competitive (due to
arising external influences [changes in the economy or industry])
Culture: reference to the aspects within a contextual environment which influences firms in many
ways. It can be classified into internal and external culture
- The difference in cultures is one of many factors that lead to product diversification
- Internal culture: the way the firm operates, influenced by their aims and objectives
- External culture: traditional beliefs and ideologies of a country or region
Ethics: the values and principles that influence how individuals, groups and societies behave
- Something can be unethical but still legal
- Business ethics: the values and principles that operate in the world of business (social
costs, social benefits
Globalization: the process of interaction and integration between the people, firms and
governments of different nations driven by international trade.
- Expansion (exporting; hiring overseas labour)
Innovation: incremental or radical improvement to a business idea, or generation of new ideas
- An innovative solution is usually one that is not in the market;s expectations, but still
meets the demands of the market
Strategy: the set of long-term planning decisions that organizations make in order to achieve a
common goal in the interest of the organization and/or specific stakeholders
- Set of decisions that aim to achieve business objectives.
, 2
Unit 4: Marketing
4.1 The role of marketing
MARKETING
Addresses ppl’s needs & wants, and influences target consumers to buy a specific product instead of
other competing products
- Management process involved in identifying, anticipating, satisfying customers,
making them interested in a product through the management of the 4 (or 7) P’s
- It is about satisfying consumer needs and wants through exchange
MARKETING GOODS / SERVICES
Goods/Products: 4Ps: Product; Place; Price; Promotion
Services: 7Ps (4Ps + another 3)
- People (frontline staff appearance, skill, charm, helpfulness)
- Processes (time, ease, accessibility, payment, aftersales)
- Physical evidence (facilities, cleanliness, design, atmosphere, peripheral products)
- Has a product oriented approach
PRODUCT VS MARKET ORIENTATED MARKETING
Product Oriented Marketing
- Business develops products based on what it is good at making
- Mainly for products that are high tech, high quality, and high differentiation
Market Oriented Marketing
- Business develops products based on the market
- Geared to mass consumer markets using expensive market research, but is more
flexible and less risky
- Flexible: Adapts more easily as this approach is sensitive to market trends, such as
habits, needs, lifestyle, and taste
- Less Risky: More assurance of success since the product meets customer
requirements
SOCIAL VS COMMERCIAL MARKETING
Social marketing Seeks to influence behavior to benefit society as a whole by selling a desired
behavior, thus satisfying societal needs
Using social marketing to bring about social change
- Celebrity endorser; Media coverage; Giving out cards; Workshops/modules; Movies;
Signature campaign – Pledge board; Slogans; Dropboxes; Email/hotline/customer
service
Commercial marketing Seeks to satisfy customers by selling a particular needed product or
service, thus satisfying individual needs
- Delivering what people already want instead of changing what people want
Unit 1: Business organisation and environment
❏ 1.1 Introduction to business management
❏ 1.2 Types of organisations
❏ 1.3 Organisational objectives
❏ 1.4 Stakeholders
❏ 1.5 External environment
❏ 1.6 Growth and evolution
Unit 2: Human resource management
❏ 2.1 Functions and evolution of human resource management
❏ 2.2 Organisational structure
❏ 2.3 Leadership and management
❏ 2.4 Motivation
Unit 3: Finance and accounts
❏ 3.1 Sources of finance
❏ 3.2 Costs and revenues
❏ 3.3 Break-even analysis
❏ 3.4 Final accounts (some HL only)
❏ 3.5 Profitability and liquidity ratio analysis
❏ 3.7 Cash flow
❏ 3.8 Investment appraisal (some HL only)
Unit 4: Marketing
❏ 4.1 The role of marketing
❏ 4.2 Marketing planning (including introduction to the four Ps)
❏ 4.4 Market research
❏ 4.5 The four Ps (product, price, promotion, place)
❏ 4.8 E-commerce
Unit 5: Operations management
❏ 5.1 The role of operations management
❏ 5.2 Production methods
❏ 5.4 Location
, 1
GENERAL:
Change: The adaptation of the organization to accommodate the external business environment
- Firms usually implement changes to survive, expand or remain competitive (due to
arising external influences [changes in the economy or industry])
Culture: reference to the aspects within a contextual environment which influences firms in many
ways. It can be classified into internal and external culture
- The difference in cultures is one of many factors that lead to product diversification
- Internal culture: the way the firm operates, influenced by their aims and objectives
- External culture: traditional beliefs and ideologies of a country or region
Ethics: the values and principles that influence how individuals, groups and societies behave
- Something can be unethical but still legal
- Business ethics: the values and principles that operate in the world of business (social
costs, social benefits
Globalization: the process of interaction and integration between the people, firms and
governments of different nations driven by international trade.
- Expansion (exporting; hiring overseas labour)
Innovation: incremental or radical improvement to a business idea, or generation of new ideas
- An innovative solution is usually one that is not in the market;s expectations, but still
meets the demands of the market
Strategy: the set of long-term planning decisions that organizations make in order to achieve a
common goal in the interest of the organization and/or specific stakeholders
- Set of decisions that aim to achieve business objectives.
, 2
Unit 4: Marketing
4.1 The role of marketing
MARKETING
Addresses ppl’s needs & wants, and influences target consumers to buy a specific product instead of
other competing products
- Management process involved in identifying, anticipating, satisfying customers,
making them interested in a product through the management of the 4 (or 7) P’s
- It is about satisfying consumer needs and wants through exchange
MARKETING GOODS / SERVICES
Goods/Products: 4Ps: Product; Place; Price; Promotion
Services: 7Ps (4Ps + another 3)
- People (frontline staff appearance, skill, charm, helpfulness)
- Processes (time, ease, accessibility, payment, aftersales)
- Physical evidence (facilities, cleanliness, design, atmosphere, peripheral products)
- Has a product oriented approach
PRODUCT VS MARKET ORIENTATED MARKETING
Product Oriented Marketing
- Business develops products based on what it is good at making
- Mainly for products that are high tech, high quality, and high differentiation
Market Oriented Marketing
- Business develops products based on the market
- Geared to mass consumer markets using expensive market research, but is more
flexible and less risky
- Flexible: Adapts more easily as this approach is sensitive to market trends, such as
habits, needs, lifestyle, and taste
- Less Risky: More assurance of success since the product meets customer
requirements
SOCIAL VS COMMERCIAL MARKETING
Social marketing Seeks to influence behavior to benefit society as a whole by selling a desired
behavior, thus satisfying societal needs
Using social marketing to bring about social change
- Celebrity endorser; Media coverage; Giving out cards; Workshops/modules; Movies;
Signature campaign – Pledge board; Slogans; Dropboxes; Email/hotline/customer
service
Commercial marketing Seeks to satisfy customers by selling a particular needed product or
service, thus satisfying individual needs
- Delivering what people already want instead of changing what people want
