IB Business and Management Cat.2
Singapore April 2012
Paper 1 – United World Peace Mission to Loyka
Potential Questions
Topic 1 – Business org. and environment
Topic 2 – Human Resources
Topic 3 – Accounts and Finance
Mark Lewis April 2012
Topic 4– Marketing
Topic 5 – Operations Management
Topic 6 – Business Strategy
Mark Lewis April 2012
Use the questions from the following exam papers as stimulaus to prepare possible
questions for the 2012 case study
November 2011
1. (a) Describe Andrew Grandin’s chain of command at Reach Out and span of control at
Reach Out.
(b) Using the case study, comment on two sources of income (current or potential) for
Reach Out other than the therapist scheme.
(c) Analyse the social and economic impacts of the actions of the non-profit organization
Reach Out.
2. (a) Describe Laura Chan’s desired pricing strategy for Reach Out’s PECS cards.
(b) Explain two reasons why Neil Johnson prepared a STEEPLE analysis for Reach Out.
(c) Neil Johnson wanted to “outsource the therapist scheme management role to an
independent freelancer”. Examine whether Reach Out will benefit from outsourcing
this role.
3. (a) Define the following terms commission and dismissal
(b) Using the additional information on page 3 about publishing company B, calculate
(i) the payback period (to the nearest month)
(c) Neil Johnson “eventually decided to donate the $10 000 himself ”.
Analyse the consequences for Reach Out of Neil’s decision.
4. (a) Describe two advantages of preparing a budget for Reach Out.
(b) Neil Johnson tried to convince Laura Chan that (Option 2) would be a worthwhile
investment by using a break-even model. Explain two limitations of using break-even
analysis as a decision-making tool.
(c) Explain two key functions of management, applying to Reach Out the theories
of writers such as Fayol, Handy or Drucker.
(d) Evaluate the value of Neil Johnson’s fishbone diagram (Appendix 2) as a decision-making tool.
May 2011
1. (a) (i) Identify two external stakeholders of Reach Out.
(ii) Outline a possible interest of one of Reach Out’s external stakeholders.
(b) Construct a fully labelled organizational chart of Reach Out after the appointment of Andrew..
(c) Analyse the advantages and disadvantages for Reach Out of accepting the
sponsorship offer from N-Pharma (Option 3).
2. (a) Neil has prepared a business plan for Reach Out. Identify four elements of a business plan.
(b) With reference to Reach Out, distinguish between a vision statement and a mission statement.
(c) Analyse the importance of information and communication technology (ICT)
in the creation and operations of Reach Out.
3. (a) Define the term corporate social responsibility.
(b) Identify two possible indirect costs of Reach Out.
(c) Using information from Appendix 1,
(i) calculate the total cash receipts and the closing balance at the end
of September 2010 if all figures follow the same pattern as in the previous months.
(ii) calculate the total cash receipts and the closing balance at the end of
September 2010 if Neil Johnson’s proposal to ask families to pay higher
fees is implemented that month.
(d) Examine the success of two elements of the marketing mix used by Reach Out.
4. (a) Outline two features of public-private partnerships.
(b) Using Lewin’s force field analysis model, discuss the growth plans.
Mark Lewis April 2012
November 2010
1. (a) N-Pharma is now a successful business, but it initially struggled: “poor cash
flow meant that the early years were financially challenging”.
Outline two problems that Yukio Nakamura’s business start-up may have faced.
(b) Construct a fully labelled Ansoff matrix to show N-Pharma’s possible growth strategies.
(c) Analyse the value of “social and environmental audits” to
N-Pharma.
2. (a) Define the following terms span of control and empowerment.
(b) Comment on the effectiveness of Susan James’ leadership style in the
Canadian subsidiary of N-Pharma.
(c) Analyse the appropriateness of a cost-based pricing strategy for N-Pharma’s drugs.
3. (a) Tadashi Agi has been appointed to the new post of “director of corporate
social responsibility”. Outline two methods of recruitment that
could have been used in this appointment.
(b) Explain how Tadashi Agi could use new technologies within N-Pharma to
communicate his ethical vision effectively with stakeholders.
(c) Tadashi Agi is now writing a “Charter of Ethics”, setting ethical objectives for
N-Pharma. Examine the reasons why organizations consider setting ethical objectives.
4. (a) Outline the importance of “negotiations and collective bargaining” for
employees and Susan James at the Canadian subsidiary.
(b) Explain the importance of quality assurance and quality control for N-Pharma.
(c) At the United States (USA) subsidiary of N-Pharma “Suzuko found that the
financial information was not up-to-date”. Explain why final
accounts are important for the directors of N-Pharma and its shareholders.
(d) N-Pharma subsidiaries have a double role: they “are responsible for both
production and distribution of N-Pharma drugs in their national markets”. Discuss the
advantages and disadvantages of such a double role.
May 2010
1. (a) Define the following terms product life cycle and brand loyalty
(b) With reference to N-Pharma and its new drug Pharmatics, distinguish between
“above the line and below the line promotion”
(c) Analyse the role of branding in the global market for N-Pharma’s drugs.
2. (a) “Since 1980, N-Pharma has been a public limited company with its shares
traded on the Tokyo Stock Exchange”.Outline two key aspects of this form of ownership.
(b) Prepare a SWOT analysis showing only the opportunities and threats for N-Pharma.
(c) Analyse N-Pharma’s position using the information in the SWOT analysis
3. (a) Define the following terms profitability and liquidity.
(b) Calculate the liquidity ratios for the USA subsidiary of N-Pharma in the financial years 2008.
(c) Analyse two possible financial strategies to improve the values of the liquidity ratios in the USA
subsidiary of N-Pharma.
4. (a) Define the following terms delegation and performance-related pay.
(b) Explain the difference between crisis management and contingency planning for US subsidiary.
(c) Laura Davies anticipates “that the Australian employees of N-Pharma will
respond positively to non-financial rewards”. Explain how non-financial rewards might affect job
satisfaction and productivity.
(d) To what extent would a change in Susan James’ leadership style improve
productivity and morale at the Canadian subsidiary of N-Pharma?
Mark Lewis April 2012