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Syllabus

Section name
Last exams 2023
Unit 1: Business organization and environment
1.2 Types of organizations
The main features of the following types of for-profit (commercial) organizations: sole traders, partnerships, companies/corporations
Distinction between the private and the public sectors
The main features of the following types of for-profit social enterprises: cooperatives, microfinance providers, public-private partnerships (PPP)
The main features of the following types of non-profit social enterprises: non-governmental organizations (NGOs), charities
1.1 Introduction to business management
The main business functions and their roles (human resources, finance and accounts, marketing, operations)
The role of businesses in combining human, physical and financial resources to create goods and services
Primary, secondary, tertiary and quaternary sectors
The nature of business activity in each sector and the impact of sectoral change on business activity
The role of entrepreneurship (and entrepreneur) and intrapreneurship (and intrapreneur) in overall business activity
Reasons for starting up a business or an enterprise
Common steps in the process of starting up a business or an enterprise
Problems that a new business or enterprise may face
The elements of a business plan
1.3 Organizational objectives
Vision statement and mission statement
Aims, objectives, strategies and tactics, and their relationships
The need for organizations to change objectives and innovate in response to changes in internal and external environments
Ethical objectives and corporate social responsibility (CSR)
The reasons why organizations set ethical objectives and the impact of implementing them
The evolving role and nature of CSR
SWOT analysis of a given organization
Ansoff matrix for different growth strategies of a given organization
1.4 Stakeholders
The interests of internal stakeholders
The interests of external stakeholders
Possible areas of mutual benefit and conflict between stakeholders’ interests
1.5 External environment
Consequences of a change in any of the STEEPLE factors for a business’s objectives and strategy
STEEPLE analysis of a given organization
1.6 Growth and evolution
The merits of small versus large organizations
Economies and diseconomies of scale
The difference between internal and external growth
The following external growth methods: mergers and acquisitions (M&As) and takeovers, joint ventures, strategic alliances, franchising
The role and impact of globalization on the growth and evolution of businesses
Reasons for the growth of multinational companies (MNCs)
The impact of MNCs on the host countries
1.7 Organizational planning tools (HL only)
The value to an organization of these planning tools
The following planning tools in a given situation: fishbone diagram, decision tree, force field analysis, Gantt chart
Unit 2: Human resource management
2.2 Organizational structure
The following terminology to facilitate understanding of different types of organizational structures: delegation, span of control, levels of hierarchy, chain of command, bureaucracy, centralization, decentralization, de-layering
The following types of organization charts: flat/horizontal, tall/vertical, hierarchical, by product, by function, by region
Changes in organizational structures (such as project-based organization, Handy’s “Shamrock Organization”)
How cultural differences and innovation in communication technologies may impact on communication in an organization
2.1 Functions and evolution of human resource management
Human resource planning (workforce planning)
Labour turnover
Internal and external factors that influence human resource planning (such as demographic change, change in labour mobility, new communication technologies)
Common steps in the process of recruitment
The following types of training: on the job (including induction and mentoring), off the job, cognitive, behavioural
The following types of appraisal: formative, summative, 360-degree feedback, self-appraisal
Common steps in the processes of dismissal and redundancy
How work patterns, practices and preferences change and how they affect the employer and employees (such as teleworking, flexitime, migration for work)
Outsourcing, offshoring and reshoring as human resource strategies
How innovation, ethical considerations and cultural differences may influence human resource practices and strategies in an organization
2.3 Leadership and management
The key functions of management
Management versus leadership
The following leadership styles: autocratic, paternalistic, democratic, laissez-faire, situational
How ethical considerations and cultural differences may influence leadership and management styles in an organization
2.4 Motivation
The following motivation theories: Taylor, Maslow, Herzberg (motivation–hygiene theory), Adams (equity theory), Pink
The following types of financial rewards: salary, wages (time and piece rates), commission, profit-related pay, performance-related pay (PRP), employee share ownership schemes, fringe payments (perks)
The following types of non-financial rewards: job enrichment, job rotation, job enlargement, empowerment, purpose/the opportunity to make a difference, teamwork
How financial and non-financial rewards may affect job satisfaction, motivation and productivity in different cultures
2.5 Organizational (corporate) culture (HL only)
Elements of organizational culture
Organizational culture
Types of organizational culture
The reasons for, and consequences of, cultural clashes within organizations when they grow, merge and when leadership styles change
How individuals influence organizational culture and how organizational culture influences individuals
2.6 Industrial/employee relations (HL only)
The role and responsibility of employee and employer representatives
The following industrial/employee relations methods used by: employees: collective bargaining, slowdowns/goslows, work-to-rule, overtime bans and strike action, employers: collective bargaining, threats of redundancies, changes of contract, closure and lock-outs
Sources of conflict in the workplace
The following approaches to conflict resolution: conciliation and arbitration, employee participation and industrial democracy, no-strike agreement, single-union agreement
Reasons for resistance to change in the workplace (such as self-interest, low tolerance, misinformation and interpretation of circumstances)
Human resource strategies for reducing the impact of change and resistance to change (such as getting agreement/ownership, planning and timing the change and communicating the change)
How innovation, ethical considerations and cultural differences may influence employer–employee relations in an organization
Unit 3: Finance and accounts
3.2 Costs and revenues
The following types of cost, using examples: fixed, variable, semi-variable, direct, indirect/overhead
Total revenue and revenue streams, using examples
3.1 Sources of finance
The following internal sources of finance: personal funds (for sole traders), retained profit, sale of assets
Role of finance for businesses: capital expenditure, revenue expenditure
The following external sources of finance: share capital, loan capital, overdrafts, trade credit, grants, subsidies, debt factoring, leasing, venture capital, business angels
Short, medium and long-term finance
The appropriateness, advantages and disadvantages of sources of finance for a given situation
3.3 Break-even analysis
A break-even chart and the following aspects of break-even analysis: break-even quantity/point, profit or loss, margin of safety, target profit output, target profit, target price
Total contribution versus contribution per unit
The effects of changes in price or cost on the break-even quantity, profit and margin of safety, using graphical and quantitative methods
The benefits and limitations of breakeven analysis
3.4 Final accounts (some HL only)
The principles and ethics of accounting practice
The purpose of accounts to different stakeholders
Final accounts: profit and loss account, balance sheet
Different types of intangible assets
Depreciation using the following methods: straight line method, reducing/declining balance method
The strengths and weaknesses of each method
3.6 Efficiency ratio analysis (HL only)
Possible strategies to improve these ratios
The following further efficiency ratios: inventory/stock turnover, debtor days, creditor days, gearing ratio
3.7 Cash flow
The difference between profit and cash flow
The working capital cycle
Cash flow forecasts
The relationship between investment, profit and cash flow
The following strategies for dealing with cash flow problems: reducing cash outflow, improving cash inflows, looking for additional finance
3.8 Investment appraisal (some HL only)
Investment opportunities using net present value (NPV)
Investment opportunities using payback period and average rate of return (ARR)
3.9 Budgets (HL only)
The difference between cost and profit centres
The importance of budgets for organizations
The roles of cost and profit centres
Variances
The role of budgets and variances in strategic planning
3.5 Profitability and liquidity ratio analysis
The following profitability and efficiency ratios: gross profit margin, net profit margin, ROCE
Possible strategies to improve these ratios
The following liquidity ratios: current, acid-test/quick
Possible strategies to improve these ratios
Unit 4: Marketing
4.1 The role of marketing
The differences between marketing of goods and marketing of services
Marketing and its relationship with other business functions
Market orientation versus product orientation
The difference between commercial marketing and social marketing
Characteristics of the market in which an organization operates
Market share
The importance of market share and market leadership
The marketing objectives of for-profit organizations and non-profit organizations
How marketing strategies evolve as a response to changes in customer preferences
How innovation, ethical considerations and cultural differences may influence marketing practices and strategies in an organization
4.2 Marketing planning (including introduction to the four Ps)
The elements of a marketing plan
The role of marketing planning
The four Ps of the marketing mix
An appropriate marketing mix for a particular product or business
The effectiveness of a marketing mix in achieving marketing objectives
The difference between target markets and market segments
Possible target markets and market segments in a given situation
The difference between niche market and mass market
How organizations target and segment their market and create consumer profiles
A product position map/perception map
The importance of having a unique selling point/proposition (USP)
How organizations can differentiate themselves and their products from competitors
4.3 Sales forecasting (HL only)
Up to four-part moving average, sales trends and forecast (including seasonal, cyclical and random variation) using given data
The benefits and limitations of sales forecasting
4.4 Market research
The following methods/techniques of primary market research: surveys, interviews, focus groups, observations
Why and how organizations carry out market research
The following methods/techniques of secondary market research: market analyses, academic journals, government publications, media articles
Ethical considerations of market research
The difference between qualitative and quantitative research
The following methods of sampling: quota, random, stratified, cluster, snowballing, convenience
Results from data collection
4.5 The four Ps (product, price, promotion, place)
Product
The relationship between the product life cycle and the marketing mix
The product life cycle
Extension strategies
The relationship between the product life cycle, investment, profit and cash flow
Boston Consulting Group (BCG) matrix on an organization’s products
The following aspects of branding: awareness, development, loyalty, value
The importance of branding
The importance of packaging
Price
The appropriateness of the following pricing strategies: cost-plus (mark-up), penetration, skimming, psychological, loss leader, price discrimination, price leadership, predatory
Promotion
The following aspects of promotion: above the line promotion, below the line promotion, promotional mix
The impact of changing technology on promotional strategies (such as viral marketing, social media marketing and social networking)
Guerrilla marketing and its effectiveness as a promotional method
Place
The effectiveness of different types of distribution channels
The importance of place in the marketing mix
4.6 The extended marketing mix of seven Ps (HL only)
Processes
The importance of delivery processes in marketing mix a service and changes in these processes
People
The importance of employee-customer relationships in marketing a service and cultural variation in these relationships
Physical Evidence
The importance of tangible physical evidence in marketing a service
The seven Ps model in a service-based market
4.7 International marketing (HL only)
Methods of entry into international markets
The opportunities and threats posed by entry into international markets
The strategic and operational implications of international marketing
The role of cultural differences in international marketing
The implications of globalization on international marketing
4.8 E-commerce
Features of e-commerce
The effects of changing technology and e-commerce on the marketing mix
The difference between the following types of e-commerce: business to business (B2B), business to consumer (B2C), consumer to consumer (C2C)
The costs and benefits of e-commerce to firms and consumers
Unit 5: Operations management
5.2 Production methods
The most appropriate method of production for a given situation
The following production methods: job/customized production, batch production, mass/flow/process production, cellular manufacturing
5.1 The role of operations management
Operations management in organizations producing goods and/or services
Operations management and its relationship with other business functions
Operations management strategies and practices for ecological, social (human resource) and economic sustainability
5.3 Lean production and quality management (HL only)
The following methods of lean production: continuous improvement (kaizen), just-in-time (JIT), Kanban, andon
The following features of lean production: less waste, greater efficiency
Features of cradle to cradle design and manufacturing
Features of quality control and quality assurance
The following methods of managing quality: quality circle, benchmarking, total quality management (TQM)
The impact of lean production and TQM on an organization
The importance of national and international quality standards
5.4 Location
The reasons for a specific location of production
The following ways of reorganizing production, both nationally and internationally: outsourcing/zubcontracting, offshoring, insourcing
5.5 Production planning (HL only)
The supply chain process
The difference between JIT and just-in-case (JIC)
Stock control charts based on the following: lead time, buffer stock, re-order level, re-order quantity
Capacity utilization rate
Productivity rate
Cost to buy (CTB)
Cost to make (CTM)
5.6 Research and development (HL only)
The importance of research and development for a business
The importance of developing goods and services that address customers’ unmet needs (of which the customers may or may not be aware)
The following types of innovation: product, process, positioning, paradigm
The difference between adaptive creativity (adapting something that exists) and innovative creativity (creating something new)
How pace of change in an industry, organizational culture and ethical considerations may influence research and development practices and strategies in an organization
5.7 Crisis management and contingency planning (HL only)
The following factors that affect effective crisis management: Transparency, Communication, Speed, Control
The difference between crisis management and contingency planning
The following advantages and disadvantages of contingency planning for a given organization or situation: Cost, Time, Risks, Safety
First exams 2024
Unit 1: Introduction to business management
1.1 What is a business?
1.1.1 The nature of business
1.1.2 Primary, secondary, tertiary and quaternary sectors
1.1.3 Challenges and opportunities for starting up a business
1.2 Types of business entities
1.2.1 Distinction between the private and the public sectors
1.2.2 The main features of the following types of organizations: Sole traders, Partnerships, Privately held companies, Publicly held companies
1.2.3 The main features of the following types of for-profit social enterprises: Private sector companies, Public sector companies, Cooperatives
1.2.4 The main features of the following type of non-profit social enterprise
1.3 Business objectives
1.3.1 Vision statement and mission statement
1.3.2 Common business objectives including growth, profit, protecting shareholder value and ethical objectives
1.3.3 Strategic and tactical objectives
1.3.4 Corporate social responsibility (CSR)
1.4 Stakeholders
1.4.1 Internal and external stakeholders
1.4.2 Conflict between stakeholders
1.5 Growth and evolution
1.5.1 Internal and external economies and diseconomies of scale
1.5.2 The difference between internal and external growth
1.5.3 Reasons for businesses to grow
1.5.4 Reasons for businesses to stay small
1.5.5 External growth methods
1.6 Multinational companies (MNCs)
1.6.1 The impact of MNCs on the host countries
Unit 2: Human resource management
2.1 Introduction to human resource management
2.1.1 Role of human resource management
2.1.2 Internal and external factors that influence human resource planning
2.1.3 Reasons for resistance to change in the workplace
2.1.4 Human resource strategies for reducing the impact of change and resistance to change
2.2 Organizational structure
2.2.1 The following terminology in relation to different types of organizational structures: Delegation, Span of control, Levels of the hierarchy, Chain of command, Bureaucracy, Centralization, Decentralization, Delayering, Matrix structure
2.2.2 The following types of organization charts: Flat or horizontal, Tall or vertical, By product, by function or by region
2.2.3 Appropriateness of different organizational structures given a change in external factors
2.2.4 Changes in organizational structures
2.3 Leadership and management
2.3.1 Scientific and intuitive thinking/management
2.3.2 Management and leadership
2.3.3 The following leadership styles: Autocratic, Paternalistic, Democratic, Laissez-faire, Situational
2.4 Motivation and demotivation
2.4.1 The following motivation theories: Taylor, Maslow, Herzberg
2.4.2 The following motivation theories: McClelland’s acquired needs theory, Deci and Ryan’s self-determination theory, Equity and expectancy theory
2.4.3 Labour turnover
2.4.4 The following types of appraisal: Formative, Summative, 360-degree feedback, Self-appraisal
2.4.5 Methods of recruitment
2.4.6 Internal and external recruitment
2.4.7 The following types of financial rewards: Salary, Wages (time and piece rates), Commission, Performance-related pay (PRP), Profit-related pay, Employee share ownership schemes, Fringe payments
2.4.8 The following types of non-financial rewards: Job enrichment, Job rotation, Job enlargement, Empowerment, Purpose/the opportunity to make a difference, Teamwork
2.4.9 The following types of training: Induction, On the job, Off the job
2.5 Organizational (corporate) culture
2.5.1 Organizational culture
2.5.2 Types of organizational culture, for example, Charles Handy's “Gods of management”
2.5.3 Cultural clashes when organizations change, including but not limited to, when organizations grow and merge and when leadership styles change
2.6 Communication
2.6.1 Formal and informal methods of communication for an organization in a given situation
2.6.2 Barriers to communication
2.7 Industrial/employee relations
2.7.1 Sources of conflict in the workplace
2.7.2 Approaches to conflict in the workplace by: employees—collective bargaining, work-to-rule and strike action, employers—collective bargaining, threats of redundancies, changes of contract, closure and lockouts
2.7.3 The following approaches to conflict resolution: Conciliation and arbitration, Employee participation and industrial democracy, No-strike agreement, Single-union agreement
Unit 3: Finance and accounts
3.1 Introduction to finance
3.1.1 Role of finance for businesses
3.2 Sources of finance
3.2.1 The following internal sources of finance: Personal funds (for sole traders), Retained profit, Sale of assets
3.2.2 The following external sources of finance: Share capital, Loan capital, Overdrafts, Trade credit, Crowdfunding, Leasing, Microfinance providers, Business angels
3.2.3 Appropriateness of short- or long-term sources of finance for a given situation
3.3 Costs and revenues
3.3.1 The following types of cost, using examples: Fixed, Variable, Direct, Indirect/overhead
3.3.2 Total revenue and revenue streams, using examples
3.4 Final accounts
3.4.1 The purpose of accounts to different stakeholders
3.4.2 Final accounts
3.4.3 Different types of intangible assets
3.4.4 Depreciation using the following methods: Straight line method, Units of production method
3.4.5 Appropriateness of each depreciation method
3.5 Profitability and liquidity ratio analysis
3.5.1 The following profitability ratios: Gross profit margin, Profit margin, Return on capital employed
3.5.2 Possible strategies to improve these ratios
3.5.3 The following liquidity ratios: Current ratio, Acid test (quick) ratio
3.5.4 Possible strategies to improve these ratios
3.6 Efficiency ratio analysis
3.6.1 The following efficiency ratios: Stock turnover, Debtor days, Creditor days, Gearing ratio
3.6.2 Possible strategies to improve these ratios
3.6.3 Insolvency versus bankruptcy
3.7 Cash flow
3.7.1 The difference between profit and cash flow
3.7.2 Cash flow forecasts
3.7.3 The relationship between investment, profit and cash flow
3.7.4 Strategies for dealing with cash flow problems
3.8 Investment appraisal
3.8.1 Investment opportunities using payback period, average rate of return (ARR) and NPV
3.9 Budgets
3.9.1 The difference between cost and profit centres
3.9.2 The roles of cost and profit centres
3.9.3 Constructing a budget
3.9.4 Variances
3.9.5 The importance of budgets and variances in decision-making
Unit 4: Marketing
4.1 Introduction to marketing
4.1.1 Market orientation versus product orientation
4.1.2 Market share
4.1.3 Market growth
4.1.4 The importance of market share and market leadership
4.2 Marketing planning
4.2.1 The role of marketing planning
4.2.2 Segmentation, targeting (target market) and positioning (position maps)
4.2.3 The difference between niche market and mass market
4.2.4 The importance of having a unique selling point/proposition (USP)
4.2.5 How organizations can differentiate themselves and their products from competitors
4.3 Sales forecasting
4.3.1 The benefits and limitations of sales forecasting
4.4 Market research
4.4.1 Why and how organizations carry out market research
4.4.2 The following methods/techniques of primary market research: Surveys, Interviews, Focus groups, Observations
4.4.3 The following methods/techniques of secondary market research: Market analyses, Academic journals, Government publications, Media articles, Online content
4.4.4 The difference between qualitative and quantitative research
4.4.5 The following methods of sampling: Quota, Random, Convenience
4.5 The seven Ps of the marketing mix
4.5.1 Product
4.5.2 Price
4.5.3 Promotion
4.5.4 Place
4.5.5 People
4.5.6 Processes
4.5.7 Physical evidence
4.5.8 Appropriate marketing mixes
4.6 International marketing
4.6.1 The opportunities and threats posed by entering and operating internationally
Unit 5: Operations management
5.1 Introduction to operations management
5.1.1 The role of operations management
5.2 Operations methods
5.2.1 The following operations methods: Job production, Batch production, Mass/flow production, Mass customization
5.3 Lean production and quality management
5.3.1 The following features of lean production: Less waste, Greater efficiency
5.3.2 The following methods of lean production: Continuous improvement (kaizen), Just-in-time (JIT)
5.3.3 Features of cradle to cradle design and manufacturing
5.3.4 Features of quality control and quality assurance
5.3.5 The following methods of managing quality: Quality circle, Benchmarking, Total quality management (TQM)
5.3.6 The impact of lean production and TQM on an organization
5.3.7 The importance of national and international quality standards
5.4 Location
5.4.1 The reasons for a specific location of production
5.4.2 The following ways of reorganizing production, both nationally and internationally: Outsourcing/subcontracting, Offshoring, Insourcing, Reshoring
5.5 Break-even analysis
5.5.1 Total contribution versus contribution per unit
5.5.2 A break-even chart and the following aspects of break-even analysis: Break-even quantity/point, Profit or loss, Margin of safety, Target profit output, Target profit, Target price
5.5.3 The effects of changes in price or cost on the break-even quantity, profit and margin of safety, using graphical and quantitative methods
5.5.4 Limitations of break-even as a decision-making tool
5.6 Production planning
5.6.1 The local and global supply chain process
5.6.2 The difference between JIT and just-in-case (JIC)
5.6.3 Stock control charts based on the following: Lead time, Buffer stock, Reorder level, Reorder quantity
5.6.4 Capacity utilization rate
5.6.5 Defect rate
5.6.6 Labour productivity, capital productivity, productivity rate, operating leverage
5.6.7 Cost to buy (CTB)
5.6.8 Cost to make (CTM)
5.7 Crisis management and contingency planning
5.7.1 The difference between crisis management and contingency planning
5.7.2 The factors that affect effective crisis management: Transparency, Communication, Speed, Control
5.7.3 The impact of contingency planning for a given organization or situation in terms of: cost, time, risks, safety
5.8 Research and development
5.8.1 The importance of research and development for a business
5.8.2 The importance of developing goods and services that address customers’ unmet needs (of which the customers may or may not be aware)
5.8.3 Intellectual property protection; copyrights, patents, trademarks
5.8.4 Innovation: incremental and disruptive
5.9 Management information systems
5.9.1 Data analytics
5.9.2 Database
5.9.3 Cybersecurity and cybercrime
5.9.4 Critical infrastructures, including artificial neural networks, data centres and cloud computing
5.9.5 Virtual reality
5.9.6 The internet of things
5.9.7 Artificial intelligence
5.9.8 Big data
5.9.9 Customer loyalty programmes
5.9.10 The use of data to manage and monitor employees; Digital Taylorism
5.9.11 The use of data mining to inform decision-making
5.9.12 The benefits, risks and ethical implications of advanced computer technologies (collectively referred to here as “management information systems”) and technological innovation on business decision-making and stakeholders
Business management toolkit
SWOT analysis
Ansoff matrix
STEEPLE analysis
Boston Consulting Group (BCG) matrix
Business plan
Decision trees
Descriptive statistics
Circular business models
Force field analysis
Gantt chart
Hofstede’s cultural dimensions
Porter's generic strategies
Contribution
Critical path analysis
Simple linear regression

DP Business Management Questionbank