| Date | May 2018 | Marks available | 10 | Reference code | 18M.1.HL.TZ0.4 |
| Level | Higher level | Paper | Paper 1 | Time zone | Time zone 0 |
| Command term | Discuss | Question number | 4 | Adapted from | N/A |
Question
It is now mid-2019. Production of solar power systems has been going for over a year and sales have exceeded forecasts and reached 5000 systems for the year. Profits have been reinvested into developing new outlets and distribution channels for solar power systems in Afghanistan. Lean production techniques have enabled AS to keep costs low, but AS has had some quality issues: some cells produce lower quality systems than others. AS has found faults in components bought from suppliers. Some solar power systems have been damaged in the supply chain. Salima is thinking of instituting total quality management (TQM). She also needs to forecast sales for 2020 but has decided the situation is not suitable for a four-part moving average.
In a separate development, Doorway Foundation (DF), a multibillion-dollar charity established by the owners of one of the world’s largest IT businesses, has approached Su. The foundation has a major IT initiative to bring IT to schools in Afghanistan, Myanmar and Bangladesh. By forming a joint venture, DF could use AS’s expertise and local knowledge to help solve some of the electricity supply and IT problems in Afghanistan.
The possibility of a joint venture encouraged managers and investors to think about whether AS should grow. In response, Su decided to analyse the possibility of growth through change using a force field analysis of AS.
[Source: © International Baccalaureate Organization 2018]
Table 3: Force field analysis for growth through change at AS
[Source: © International Baccalaureate Organization 2018]
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.
Define the term four-part moving average.
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.
With reference to AS, explain the difference between commercial marketing and social marketing of the solar power systems (line 53).
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.
Explain how total quality management (TQM) could help AS improve the quality of its products.
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.
Using information from the case study, the resource and appropriate business tools, discuss the value to Su of the force field analysis in deciding whether to grow through change.
Markscheme
PLEASE NOTE: This content is not included in the syllabus for 2024 exams onward. Related parts of this multi-part question may be used.
A four-part moving average is the average of four adjacent terms in a time series. The starting point progresses gradually through the time series.
Candidates are not expected to word their definition exactly as above. All three are not needed. Although it is “define”, an example can help.
Award [2] for a full definition. Award [1] for some understanding of the term.
PLEASE NOTE: This content is not included in the syllabus for 2024 exams onward. Related parts of this multi-part question may be used.
• Commercial marketing focuses on the potential buyers of a product/service.
• Social marketing considers the effects of the product/service on the whole of society.
For the solar panels, commercial marketing would focus on the customers, persuading them to buy the panels in order for AS to make a profit. It would attract customers through the benefits and through available finance. Social marketing will focus on the benefits the systems have on the Afghan communities, in particular poor and remote communities. Social marketing may focus on long-term benefits and more general issues such as bringing stability to Afghanistan.
Award a maximum of [2] for a theoretical answer or for an answer that explains without drawing out differences.
Award [4] for an answer that explains one or more difference in context.
Total quality management seeks to ensure the highest quality standards throughout a business. AS is having quality issues, in particular with some cells performing less well than others. There are problems with the supply chain and there are problems with some suppliers. By employing TQM, the whole process from supplier to delivery will be reassessed with the aim of zero defects throughout.
Mark as 2 + 2.
Award a maximum of [4] for an explanation in context.
For non-contextual answers award a maximum of [2].
Refer to Paper 1 markbands for May 2016 forward, available under the "Your tests" tab > supplemental resources.
Positive benefits:
• AS needs to make some long-term decisions. FFA will help in the process of deciding whether to change or whether to remain the same.
• The basic question is: should AS remain the same or grow? The subsidiary question is how best to grow.
• Driving forces will support the arguments for growth, whereas restraining forces will support staying the same.
• The driving forces in the table are a useful starting point. How can you distinguish between the value of Su’s beliefs and needs with the needs of the people in other parts of Asia? How can you compare the team’s needs with Su’s?
• At best scores in the table will be subjective.
• The FFA helps to clarify thinking, identify the factors involved in the decision and point to the issues that need to be balanced. It cannot make the decision but can help clarify the issues.
Marks should be allocated according to the paper 1 markbands for May 2016 forward, section B.
Purely theoretical answer or with no effective use of stimulus material in range [3] to [4] with better answers award a maximum of [4].
If discussion is one-sided award a maximum of [5].
Both sides considered, good use of evidence, particularly from section B, but no effective conclusion award a maximum of [8].
For full marks a fully supported conclusion with good use of evidence, particularly from the resource.
Examiners report
Syllabus sections
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16N.1.HL.TZ0.5:
The group are considering two target markets.
Option 1: enter the Asian market
Emma strongly prefers this option. She recently presented IBAT at a medical conference in Asia. Great interest was shown and some attendees wanted to purchase samples at the conference. However, sales in Asia are not possible, because IBAT has not yet met regulatory quality standards there.
Falit also prefers this option because significant economies of scale could be gained. He also fears that other businesses will launch a similar product in Asia. The costs of entering the market would be relatively small for Medimatters. A suitable medical equipment wholesaler who could market and distribute the product operates in the region.
Ahmed and Didi are concerned. Quality issues with the lens manufacturer in India are worrying and should be resolved. They would like market research to be conducted to assess the suitability of Asian, as well as European and American, markets.
Option 2: continue to sell in Brazil
Didi favours this option. Always cautious, he thinks that current difficulties should be resolved before further expansion. He forecasts a reasonable first-year profit – far more than most new businesses. Ahmed likes the fact that he would not have to take on any additional workload or travel across the world: he is already struggling to manage his responsibilities. Carlo prefers this option because he wants to avoid the problems of growing too quickly, because many overambitious new businesses fail.
In preparation for the next group meeting, a decision tree showing both options has been produced.
Using the case study and the additional information in this question, recommend whether Medimatters should implement option 1 or option 2.
You will find it useful to calculate the predicted outcome for option 2 in the decision tree.
Refer to case study: Medimatters
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18N.1.HL.TZ0.5:
Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).
Using the case study, resources and appropriate business tools, recommend whether AFA should take over ABC.
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18N.1.HL.TZ0.4c:
Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).
Explain the usefulness of a Gantt chart to AFA in planning the implementation of a new process.
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17M.1.HL.TZ0.5:
John felt that the decision about expanding JAC into the international markets of the Pacific Islands did not depend on the decision about the 3D printing project. However, he decided that they should not enter the markets at the same time, so they had to choose between starting with Fiji, Samoa or New Zealand. John stressed to Liza that, as with the construction of the Utopia villas, the choice of a new international market should strongly consider cultural influences and norms. For this reason, John favoured Fiji and Samoa over New Zealand, arguing that they are more culturally similar to Ratu. However, the final decision not being made, John asked Liza to do some more research into the idea and into the two markets. The results of her ideas are summarized in Tables 1, 2 and 3.
Table 1: Liza’s market research results
Liza drew up the following decision tree to help clarify the decision process and try to quantify the issues involved in the decision.
Using the case study and the additional information above, recommend which of the Pacific Island markets JAC should enter. Completing the decision tree and using the results could help you in your answer.
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19N.2.HL.TZ0.1b:
Construct a fully labelled decision tree and identify the best option for Sassy (show all your working).
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19N.1.HL.TZ0.5:
Using the case study and the resources, recommend whether Accord should start making and selling snack bars or whether Kayla and Aran should sell Accord to SF. A force field analysis of the options could help you in your answer.
