BUSINESS AND MANAGEMENT -- PAPER 1 CASE STUDY PACK
KEY TERMS
CASE STUDY: LadyA
For use in May and November 2015
Key terms in italics apply to HL students only
Sole trader (5, 89)
An individual who owns and operates his or her own business. A sole trader is unincorporated meaning
that the firm’s finances are inseparable from those of the owner who has unlimited liability. Mr Carroccio
believed that operating as a sole trader would be the best way to achieve financial security. Alejandra
also originally operated as a sole trader when the business was not so big.
Business (6)
Businesses are organizations that are involved in the production of a good or a service to satisfy a need or
a want. Mr Carroccio wanted to set up his own business upon his arrival to the USA. Alejandra’s business
provides goods (such as LadyA perfume and cosmetics) and services (such as music and concert).
Cash-flow forecasts (7)
A cash-flow forecast is a financial document giving detailed estimates of a firm’s future cash inflows and
outflows per month. Mr Carroccio initially got turned down several times for bank loans because of weak
cash-flow forecasts.
Bank loans (9)
A bank loan is a fixed amount of money borrowed from a bank with regular fixed repayments, including
interest payments, over a defined period. Bank loans are generally offered by banks against some security
or collateral from the borrower. Mr Carroccio was unsuccessful in obtaining bank loans when he first
arrived in the USA due to his weak cash-flow forecasts.
Entrepreneurs (9)
An entrepreneur is a person who has a flair for business and risk taking. S/he organizes factors of
production to produce a good or a service. The entrepreneur sets up a business and assumes the risks and
rewards of running a business. Mr Carroccio obtained a grant from a government agency that helped
entrepreneurs. Alejandra is also an entrepreneur, owing 98% of the shares in LadyA Management Limited.
Charity (11)
A charity is a non-profit organization set up to provide help and raise money for those in need. Mrs
Carroccio attended English classes organized by a local charity when she first went to the USA in 1973. If
LadyA pursues Option 3, she would set up her own charity for a charitable cause, such as tackling issues of
malnutrition in low-income countries.
Non-profit organization (11)
Non-profit organizations are private sector organizations that do not aim to make a profit but operate for
the benefit of others in society. Mrs Carroccio attended English classes organized by a local charity, a nonprofit organization, to help adult immigrants learn English.
Mission statement (11)
Mission statement refers to a declaration of a business’s overall goal and its purpose. It forms the
foundation for setting the objectives of a business. The mission statement of the charity that Mrs
Carroccio attended English classes was “to help all adult immigrants learn English”.
Wage (13)
A fixed regular payment earned for work or services provided by an employee especially for manual or
unskilled work. Mrs Carroccio earned a low wage in her job in the cafeteria of a local school shortly after
she arrived in USA.
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BUSINESS AND MANAGEMENT -- PAPER 1 CASE STUDY PACK
KEY TERMS
CASE STUDY: LadyA
For use in May and November 2015
Key terms in italics apply to HL students only
Training (13)
Training is the provision of work-related education, either on-the-job or off-the-job. Mrs Carroccio,
despite receiving a low wage in her job in the cafeteria of a local school, did receive training.
Fringe benefits (13)
These are benefits received by employees in addition to their wages or salary e.g. free uniform, subsidised
meals, health insurance and paid holidays (annual leave). In addition to Mrs Carroccio’s wage from her
job in the cafeteria of a local school, she also received health insurance as a fringe benefit.
Profits (14)
The surplus left from revenue after production costs have been deducted. The profits from Mr Carroccio’s
shoe repair business (as well as Mrs Carroccio’s wage) helped the family maintain an economically stable
household in the early years of their move to the USA.
Earnings (21)
Money obtained from the provision of labour or services, such as wages, salaries, royalties and
commission. At age 12, Alejandra’s earnings from occasional jobs as a model, were put by her parents
into a college fund for her.
Opportunities (26)
These are a set of circumstances in the external business environment that create a chance for further
progress. At age 16, Alejandra’s small part in the film La Bella Rosa, led to many new opportunities for her.
LadyA is faced with several business opportunities based on the suggestions from Kersey & Joyce.
Contract (27)
To enter into a legally binding agreement with specific terms between two or more persons or entities with a
promise to do something in return. Being cast in the film ‘La Bella Rosa’, led to Alejandra being offered a
contract to produce a CD album by a music label.
Negotiation (28)
Negotiations are discussions which take place between two parties in order to resolve an issue. Being only 16,
Alejandra was not very familiar with the process of negotiation when dealing with the music label offering her
a contract, including financial compensation, to produce a CD album.
Agent (28)
An independent person or company appointed and authorised to act on behalf of another person in
business and legal dealings. Gloria Woolrich, a local Hispanic who worked with Spanish-speaking
performers, was appointed as an agent by Alejandra.
Market (31)
A market refers to the group of consumers interested in a product or a service, who are exiting or
potential customers. Gloria believed that Alejandra should target the Spanish-speaking population in the
USA.
Income (34)
Income is the money that an individual receives in return for the work provided. Lady Alejandra received
much income from the copyrights and royalties of her first CD album, Presentación Lady Alejandra.
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BUSINESS AND MANAGEMENT -- PAPER 1 CASE STUDY PACK
KEY TERMS
CASE STUDY: LadyA
For use in May and November 2015
Key terms in italics apply to HL students only
Copyrights (34)
Copyright is the exclusive legal protection, for a fixed number of years, against copying the works of artists,
composers and other originators of content. After her first CD album, Lady Alejandra earned much income
from the copyrights and royalties from the CD album.
Final Accounts (36)
Also called the published accounts, these are the financial statements including the Balance Sheet and
the Profit and Loss Account that all limited companies are obliged by law to produce and report. Income
from the success of Lady Alejandra’s first CD album prompted her to get an accountant to her prepare
her final accounts.
Manage (36)
The process of taking care of and making decisions about something, in this instance money. Lady
Alejandra appointed an accountant to help prepare her final accounts as well as to help her manage the
money – budgeting, investing, banking and paying taxes.
Basic needs (38)
Basic needs refers to fundamental requirements for survival like food, clothing and shelter. The basic
needs form the bottom of Maslow’s pyramid in his hierarchy of needs. When the Carroccios first arrived in
the USA, they struggled to satisfy even basic needs like food and shelter due to a lack of income.
Recruiting (50)
Recruitment is the process of hiring suitable workers. It starts with identifying the need for a new
employee, followed by defining the job and the appropriate person for it, attracting a number of suitable
candidates, interviewing them, and finally selecting the best person for the job. Ruth Liebermann was
hired as an agent by Alejandra to help her, among other things, with recruitment of household
employees.
Employees (50)
A type of internal stakeholder – people who work for a business. Employees are people who are
employed by a business to carry out specific tasks within the organization. Alejandra’s employees
include: a band, a group of dancers, musical and video technicians, Gavin Pratt, a chief bodyguard, six
bodyguards, a driver, a chef, two personal assistants and two housekeepers.
Promoting (51)
Promotion is part of the marketing mix and refers to the use of advertising, branding, sales promotion
and public relations to market a product, person or a service. Lady Alejandra hired Ruth Liebermann as an
agent, among other things, to promote her better.
Product life cycle (52)
The product life cycle of a business measures sales over time. A typical product life cycle has the
following phases: introduction, growth, maturity, and decline. Ruth Liebermann believed that unless
carefully managed, the product life cycle of music stars could often be short.
Brand (54)
Distinguishing tangible and intangible features of a product or a service and that which differentiate it
from competing products or services in the market. Ruth Liebermann believed that Lady Alejandra
needed a brand identity and that future income streams would be based on that brand.
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BUSINESS AND MANAGEMENT -- PAPER 1 CASE STUDY PACK
KEY TERMS
CASE STUDY: LadyA
For use in May and November 2015
Key terms in italics apply to HL students only
Product extension strategy (54)
Product extension strategies refer to attempts by marketers to lengthen the life cycle of a particular
product. These strategies are typically used during the maturity or onset of decline stages of the
product’s life cycle. Ruth Liebermann was entrusted with the task of developing strategies to extend the
product life cycle of Lady Alejandra.
Demographic change (61-62)
This refers to variations and developments in population trends in a particular area or country, e.g. age,
gender, ethnicity or other profile over time. The demographics of the US population was seen as
changing rapidly in the mid-nineties.
Focus group (64)
Using a focus group is a form of qualitative market research which involves asking groups of people
selected from a wider population about their perceptions, opinions, beliefs and attitudes about a
product, brand, service or any chosen topic. Focus groups showed that some English-speakers did not
like the name ‘Lady Alejandra’, so Ruth suggested rebranding to LadyA.
Revenue (72)
Revenue is the income of a business derived from its daily operations; it the total amount of income
earned from the sales of a good or service. As LadyA grew more popular, her revenue increased.
Expenses (72)
This refers to the money spent or costs incurred in producing something. As LadyA grew more popular,
her expenses increased.
Logistics (79)
Logistics is the process of ensuring the right supplies and products are available in the right place at the right
time, at a competitive cost. The events manager for LadyA hired a company specializing in logistics to help
transport equipment and set up the stage at each concert location.
Location (80)
A place where an event is occurring or it may refer to the geographical position of a business. The events
manager for LadyA hired a company specializing in logistics to help transport equipment and set up
stage at each concert location.
Core employees (80)
Full-time employees like managers, technicians and skilled workers who are crucial to a company’s operations
are referred to as core employees. Core employees form one of the three categories of Charles Handy’s
Shamrock Organization. A full-time accountant, a band, a group of dancers, music and video technicians,
Gavin Pratt and an events manager are all core employees of LadyA.
Temporary employees (80)
Temporary employees are workers hired for a limited period of time or until the completion of a project. LadyA
usually needed temporary workers at each concert venue to help set up the venue and stage.
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BUSINESS AND MANAGEMENT -- PAPER 1 CASE STUDY PACK
KEY TERMS
CASE STUDY: LadyA
For use in May and November 2015
Key terms in italics apply to HL students only
Peripheral employees (81)
Peripheral employees are generally part-time or employees with other flexible working arrangements who are
employed as and when required. They form one of the three categories of Charles Handy’s Shamrock
Organization. LadyA had several peripheral workers – two personal assistants, two housekeepers, one chef,
one personal trainer, one driver and one chief bodyguard who supervised six bodyguards.
Leadership style (84)
Leadership style refers to the way in which managers and leaders choose to behave in relation to how
they organize, communicate and control their employees. LadyA tended to be very inconsistent in her
style of leadership but now has a more mature style.
Laissez-faire leadership (86)
A laissez-faire leadership style is one in which the leader makes the major decisions and sets the overall
objectives for the organization but subsequently assigns tasks for employees and lets them make
decisions and complete tasks as they see fit. At times, LadyA’s leadership style tended to be more laissezfaire.
Communication (87)
Communication refers to the transfer of information from one party to another. Communication between
LadyA and her peripheral employees could sometimes be poor.
Limited liability (90)
Limited liability refers to the condition when owners (shareholders) are financially responsible for the
debts of a company only up to the amount they have invested in the company rather their personal
wealth. This legal protection is available to shareholders of private and public limited companies, so
attracts businesses to become incorporated. As Alejandra’s business grew, she realised she needed the
protection of limited liability.
Private limited company (90-91)
A private limited company is a business organization owned by shareholders with limited liability and
whose shares cannot be bought by or sold to the general public. As the business grew, Alejandra decided
to change her business from operating as a sole trader to a private limited company.
Shares (92)
A share represents a unit of ownership in a company with all the shares representing the total capital of a
company. Alejandra herself owned 98% of the shares in LadyA Management Limited (LAM) with 2% being
held by her parents and Ruth Lieberman.
Copyrighted materials (94)
Copyright is a form of protection provided by the laws of the government to the authors of original works including music. Material found on the internet has the same copyright protection as material distributed
through other media. Hence file sharing of copyrighted material on the internet is usually illegal.
Profitability (98)
Profitability is the measure of an organization’s ability to earn revenues above its expenditures. The
profitability of music videos for LadyA was badly hit by the emergence of video hosting websites.
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BUSINESS AND MANAGEMENT -- PAPER 1 CASE STUDY PACK
KEY TERMS
CASE STUDY: LadyA
For use in May and November 2015
Key terms in italics apply to HL students only
Sales revenue (102)
Sales revenue (also referred to as sales turnover) is the value of sales made within a certain time period.
Sales revenue from music for LadyA was hit by the emergence of new online file sharing software,
emergence of video hosting websites as well as by the economic downturn of 2008. However, LadyA also
receives sales revenues from the sale of her perfumes, cosmetics and concerts.
Above the line promotion (106)
Above the line promotion refers to the use of mass media (such as television, magazines, national
newspapers and radio) for advertising of a product or a service. In 2009, LadyA started appearing in many
above the line promotions of various types of products.
Below the line promotion (106)
Below the line promotion refers to the use of non-mass media promotional activities e.g. price and added
value promotions, free samples (of perfumes and cosmetics products) and discount vouchers. In 2009,
LadyA started appearing in many below the line promotions of various types of products.
Products (106)
A product is the output of the production process, i.e. goods and services. In 2009 LadyA started
appearing in many promotions of various types of carefully chosen products. Her own products include
LadyA perfume and LadyA cosmetics.
Product line (110)
Product line refers to the varieties of a particular product manufactured by a company or a group of
related products made by a single company. In 2010, LadyA started her own product line of perfume and
cosmetics under the LadyA brand name.
Market research (111)
Market research is the process through which the needs and wants of customers are predicted and
identified. It involves collecting both primary and secondary data, of both quantitative and qualitative
natures.
Primary market research (111)
Primary market research is the gathering of first-hand data that is custom-made to a firm’s specific needs.
It involves field work and may be carried out using questionnaires, surveys, interviews or through
observations. Primary and secondary market research for LadyA had shown that perfume and cosmetics
would best connect with LadyA’s brand and help her reach her main target market.
Secondary market research (111)
This refers to information collected from second hand sources such as government statistics, the news
media and independent market research reports, all of which are easily accessible to the public. Primary
and secondary market research for LadyA had shown that perfume and cosmetics would best connect
with LadyA’s brand and help her reach her main target market.
Target market (113)
Target market refers to the profile of customers that the products of a business are aimed at. LadyA’s
main target market for perfume and cosmetics was comprised of teenage girls and young women.
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BUSINESS AND MANAGEMENT -- PAPER 1 CASE STUDY PACK
KEY TERMS
CASE STUDY: LadyA
For use in May and November 2015
Key terms in italics apply to HL students only
Production (113)
Production is the process of organizing resources in order to make a good or to provide a service. The
production of LadyA perfume and cosmetics was outsourced to a manufacturer in Malaysia.
Outsourced (114)
Outsourcing refers to the practice of using an external firm to provide goods or services as one way of reducing
costs as well as providing a better service. Production of LadyA perfume and cosmetics was outsourced to a
manufacturer in Malaysia.
Manufacturer (114)
A person, a business or an entity that combines raw materials to turn them into finished products. The
production of LadyA perfume and cosmetics was outsourced to a manufacturer based in Malaysia, where
costs of production were lower.
Costs (114)
The sum of all the spending on resources used in the production of a good or a service. Costs may be
direct or indirect. LadyA has to pay 60% of the costs in advance to the Malaysian manufacturer to whom
production of LadyA perfume and cosmetics are outsourced to.
Quality control (115)
Quality control is the traditional way of quality management that involves checking and reviewing work
processes usually by quality controllers and inspectors. Quality control in manufacturing through
outsourcing in Malaysia was a potential problem for LadyA perfume and cosmetics.
Batch production (116)
Batch production is the manufacture of a limited number of identical products (referred to as a batch),
usually to meet a specific order with work being completed for the whole batch within the production
process, before the next stage is begun. It is used where the level of demand for a product is frequent and
steady. The Malaysian manufacturer of LadyA perfume and cosmetics was expected to use batch
production.
Wholesaling (117)
Wholesalers are businesses that buy large quantities of products from a manufacturer and then separate or
‘break’ the bulk into smaller units for reselling to retailers. The wholesaling of LadyA perfume and cosmetics is
outsourced to a company based in Minnesota.
Distribution (118)
Distribution is related to place in the marketing mix and refers to the entire process of getting the right
products to the right place at the right time where the customers want them and in the most costeffective way possible. The distribution of LadyA perfume and cosmetics was to be outsourced to a
company in Minnesota.
Reorganize (120)
Reorganization involves restructuring of a firm’s personnel to help it re-focus on its core activities.
Alejandra decided to reorganize the business in 2011 by hiring a managing director and a human
resources manager to help with workforce planning.
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BUSINESS AND MANAGEMENT -- PAPER 1 CASE STUDY PACK
KEY TERMS
CASE STUDY: LadyA
For use in May and November 2015
Key terms in italics apply to HL students only
Managing Director (121)
The Managing Director of a business is responsible for the day-to-day operations and the performance of
the company. As part of the reorganization of the business in 2011, Alejandra appointed a Managing
Director (MD). The MD reports directly to the Chairman / Chairperson, i.e. LadyA.
Human Resources Manager (121-122)
A Human Resources Manager in a business is the person in charge of the development of people and
overall workforce planning. The tasks include recruitment, selection, dismissal, training and development
of employees. As part of the reorganization of the business in 2011, Alejandra appointed a Human
Resources Manager to help with workforce planning.
Workforce planning (122)
Workforce planning is a process through which the current and future human resource needs of a
business are identified and anticipated. As part of the reorganization of the business in 2011, Alejandra
hired a Human Resources Manager to assist in workforce planning.
Delegated (123)
Delegation occurs when the authority for completing a task is passed to another person. The person to
whom the task has been delegated must ensure that it is carried out and they are accountable to their
manager for completing the task. The ultimate responsibility for the task remains with the line manager.
Alejandra delegated some business functions when she reorganized her business in 2011 as the business
was getting larger.
Business functions (123)
Business functions refer to the various types of work carried out in a business. In larger organizations,
people and work are often divided into departments which carry out certain tasks related to that area,
e.g. tasks relating to human resource functions, finance, production, administration and so forth. These
functions might be carried out most efficiently by organizing a business into these departments (or
functional areas). As part of the business reorganization, Alejandra delegated some business functions.
Strategic direction (137)
Strategic direction refers to the course of action that leads to the achievement of the long terms goals, vision
and mission of a business organization. The business consultants Kersey & Joyce (K&J) specialized in the
strategic direction of brands.
Strategic options (137-138)
Strategic options are the long-term alternatives (options) available to a company to help it respond effectively
to changes in the external environment. K&J identified three strategic options for the next phase of LadyA’s
career and professional life.
Product endorsements (145)
Product endorsements are a form of promotion that use famous people, often celebrities, who lend their
name or brand image to promote a good or a service. One of the strategic options K&J proposed was that
LadyA change her name back to Lady Alejandra and enter product endorsement agreements to promote
herself amongst the Spanish-speaking markets.
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BUSINESS AND MANAGEMENT -- PAPER 1 CASE STUDY PACK
KEY TERMS
CASE STUDY: LadyA
For use in May and November 2015
Key terms in italics apply to HL students only
Global markets (147)
Global markets refer to the activity of buying and selling goods and services in many countries of the
world. K&J’s strategic Option 2 suggested that LadyA could grow by developing more products under the
LadyA brand as well as by developing a global market for them.
Distribution channels (150-151)
Distribution channels refers to the ways in which a product gets from the manufacturer to the
consumers. Developing of a global market for LadyA products if Option 2 is chosen would require other
distribution channels, such as e-commerce for international markets.
E-commerce (151)
E-commerce refers to the trading of goods and services via the internet. Expansion into international
markets (if strategic Option 2 is chosen) would require new distribution channels such as the use of ecommerce.
Family branding (152)
Family branding refers to marketing a range of products under a single brand name. Option 2 proposed by K&J
to LadyA for future development involves developing more products under the LadyA brand, i.e. maintaining
family branding for LadyA shoes, handbags, lingerie and so forth.
Marketing (157)
Marketing is the process through which customers’ needs are predicted, identified and satisfied in a
profitable way. The marketing process can be broken down into 8 Ps: product, price, promotion, place,
packaging, physical environment, process and people.
Other key terms not in the syllabus
Political asylum (4)
Political asylum is the acceptance and right to live in another country granted to people who have fled
their home country due to political turmoil and persecution. Mr and Mrs Carroccio fled Cuba in 1973 and
were granted political asylum in the USA.
Financial security (6)
Financial security means having the necessary resources to achieve a desired standard of living. Mr
Carroccio believed that working independently and operating as a sole trader would be the best way to
achieve financial security for his family.
Health insurance (13-14)
A type of insurance that pays for the health costs of the insured person(s). Mrs Carroccio’s job in the
cafeteria of the local school paid a wage and had some fringe payments such as health insurance.
Economically stable household (15)
An economically stable household would be one which has a steady income flow and hence is not
subjected to wild fluctuations in earnings or a lack of earnings. The Carroccios managed to maintain an
economically stable household from the profits of Mr Carroccio’s shoe repair shop and from the wages of
Mrs Carroccio’s job in the cafeteria of a local school.
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BUSINESS AND MANAGEMENT -- PAPER 1 CASE STUDY PACK
KEY TERMS
CASE STUDY: LadyA
For use in May and November 2015
Key terms in italics apply to HL students only
Choral groups (18)
Groups of singer who perform in a choir, very often affiliated with a church. Mr and Mrs Carroccio
encouraged Alejandra to sing in choral groups from a young age.
Special savings account (21)
Special savings accounts are interest-bearing accounts opened by depositors, often for minors
(dependent children), with the funds therein being available to the minor upon coming of age or upon
going to university. Many of these accounts enjoy tax exemptions. Alejandra’s parents put her earnings
into a college fund, a special savings account, to fund her university education later in life.
Production companies (23)
Film production companies are businesses that often raise finance for making movies, such as handling
the scripting, budgeting, organization of staff, and scheduling involved in their production. Production
companies in Miami spotted Alejandra and cast her as a young Hispanic woman in the film La Bella Rosa.
Casting director (23)
A casting director is the person responsible for selecting actors, singers, dancers and other performers for
various roles in a movie or a video. In 1994, a casting director needing a young Hispanic woman for the
film La Bella Rosa offered the role to Alejandra Carroccio.
Hispanic (24)
The 2010 US Census defines a Hispanic (or Latino) as “a person of Cuban, Mexican, Puerto Rican, South or
Central American, or other Spanish culture or origin regardless of race.” In 1994, at the age of 16,
Alejandra was cast in the role of a young Hispanic woman in one scene of the film La Bella Rosa.
Music label (27)
Music labels are recording companies that help to record, distribute and promote music recorded by
their artists. Alejandra received offers of a contract to produce a CD album from a music label following
her performance in the film La Bella Rosa.
Royalties (35)
Royalties are payments made by a third party to LadyA each time her music is played in the public
domain, such as on the radio or on television. Alejandra earned much income from the royalties of her
first CD album, Presentación Lady Alejandra.
Accountant (35)
An accountant is a professional responsible for keeping, auditing and inspecting the financial records of
individuals and businesses and who also helps in preparing tax reports. As Alejandra earned much
income from the copyrights and royalties of her first CD album, she needed an accountant to help her
prepare final accounts, manage the money and help her pay appropriate taxes.
Taxes (36)
A tax is a fee or a charge imposed by the government on income, a product or an activity. Tax revenues
help the government to provide various services to its people. Alejandra is required to pay taxes on her
income from copyrights and royalties.
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Paul Hoang & Urvashi Sharma
BUSINESS AND MANAGEMENT -- PAPER 1 CASE STUDY PACK
KEY TERMS
CASE STUDY: LadyA
For use in May and November 2015
Key terms in italics apply to HL students only
Economic security (39)
Economic or financial security would mean having a stable source of income to maintain a desired
standard of living now and in the near future. After migrating to the USA, Mr and Mrs Carroccio managed
to achieve economic security only by working long hours.
Brand identity (53, 107, 159)
Brand identity refers to the way in which a business wants its products to be perceived by the consumers.
It includes the visual elements of a brand that together identify and distinguish it in the consumers’
minds. Ruth Liebermann believed that Alejandra needed a brand identity as a media personality.
Revenue streams (53, 160)
Revenue stream refers to the money or income coming into the business from a particular activity over a
period of time. Ruth Liebermann believed that Alejandra’s future revenue streams would have to be
based on the brand, which was Alejandra herself. Examples of her revenue streams include: music sales,
concert ticket sales, the sale of perfume and cosmetics, royalties and fees for appearing on the cover of
high-profile fashion magazines.
Mainstream music charts (70)
Mainstream music charts are those that set out the English albums and songs according to their
popularity – judged from a combination of the best-selling and the most played (on radio) album or
song. Music stars strive to achieve a number one position on the charts. By 2000, LadyA was popular with
English-speakers and was popular in the mainstream music charts in the USA.
Events manager (78)
An events manager is a professional responsible for organizing and running large scale events like music
festivals, exhibitions, concerts or tours. In 2001, LadyA hired an events manager as part of her core
employees who, among other things, arranged bookings of venues and hotels.
Personal assistant (82)
The two personal assistants hired by LadyA are the employees responsible for assisting Alejandra in her
daily business activities or personal tasks. Roles include scheduling of meetings, note taking at meetings,
arranging press conferences and being responsible for communications and correspondence.
Housekeepers (82)
These employees, often referred to as domestic helpers, are responsible for the cleaning and
maintenance of LadyA’s residence (a large mansion in Hollywood, Los Angeles).
Personal trainer (82-83)
This employee is a qualified fitness professional who educates and instructs LadyA regarding matters of
physical exercise and personal fitness. LadyA’s personal trainer is responsible for motivating her to stay fit
and healthy in order to carry out her jobs more effectively, such as performing (singing and dancing) at
music concerts.
La princesa (88)
A Spanish term meaning Royal Princess. Alejandra’s employees mockingly referred to her as “la princesa”
when they complained behind her back, referring her to being rather spoilt.
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BUSINESS AND MANAGEMENT -- PAPER 1 CASE STUDY PACK
KEY TERMS
CASE STUDY: LadyA
For use in May and November 2015
Key terms in italics apply to HL students only
MP3 players (96)
An MP3 player, also called a Digital Audio Player (DAP), is a small-sized digital portable mobile (audio)
player supporting MP3 audio file format as well as other audio formats. Apple’s iPod is a popular brand of
an MP3 player. Sales of CD albums since the last decade have been affected by the continued emergence
of new technologies such as MP3 players and smartphones.
Video hosting websites (97)
Video hosting websites are sites or software that allow people to upload their videos and share them
with other users. YouTube, Vimeo, Youku and Videolog are some popular video hosting websites. The
emergence of such software has affected the profitability of music videos since 2000.
Economic downturn (102)
An economic downturn is a period of slowing economic growth in a country which can eventually result
in a recession (two consecutive quarters of negative economic growth). Economic downturns are
characterised by falling production and sales levels, higher levels of unemployment and falling income
levels for workers. The problem of falling music sales for artists like Alejandra was worsened by the
economic downturn of 2008.
Media personalities (103)
A media personality is a person who features in various media (such as TV and fashion magazines) and
uses his or her name, talent, status, looks or personality to appeal to listeners, viewers or readers. Ruth
Liebermann believed that music artists had to increasingly turn themselves into media personalities to
generate revenue from their branded identities.
Social networking websites (109)
Social networking sites are web-based services that allow individuals to create public profiles, create list
of users to share them with as well as interact with other users on the website, e.g. Facebook, Twitter and
LinkedIn. From around 2009, LadyA started communicating with her fans through various social
networking websites.
Chain store (119)
Chain stores (also called retail stores) are a series of shops owned by one firm and operating under the
same brand name, often selling the same goods and spread nationwide or worldwide, e.g. Walmart and
Sears. LadyA’s perfume and cosmetics are sold in a nationwide chain of department stores in the USA.
Department store (119)
A department store is a large retail establishment often selling a wide range of consumer goods in
different product categories known as ‘departments’, such as toys, clothing, perfumes, cosmetics,
consumer electronics and household goods. LadyA perfume and cosmetics are sold in a nationwide chain
of department stores in the USA.
Investment banker (127)
A banker with specialization in raising capital for companies or involved in advising about mergers and
acquisitions. Investment bankers often specialize in large and complex financial transactions at
(investment) banks and can be rewarded very generously. Alejandra married Rafael Eco, an Italian
investment banker, in 2012.
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Paul Hoang & Urvashi Sharma
BUSINESS AND MANAGEMENT -- PAPER 1 CASE STUDY PACK
KEY TERMS
CASE STUDY: LadyA
For use in May and November 2015
Key terms
in italics apply to HL students only
Wealth
(129)
Wealth is a measure of all the assets of value owned by a person or a corporation. LadyA was at the peak
of her media power, wealth and fame in the years following 2012.
Paternalistic (131)
Paternalistic managers and leaders often treat their employees as if they were family members by
guiding them through a process of consultation with decisions taken which, they believe, are in the best
interests of the workforce. In the years following 2012, Alejandra became more paternalistic in her
dealings with her employees.
Business consultants (136)
Business consultants are external advisers hired by a business or entrepreneur to help improve
performance and efficiency. LadyA hired business consultants Kersey & Joyce (K&J) to help her explore
possible strategic options for the future growth of her company.
Developing countries (155)
Also referred to as less economically developed countries (LEDCs), developing countries are those with
low levels of per capita income and hence low standards of living. Very often they have a low industrial
base and poor infrastructure. Strategic Option 3 proposed by K&J required LadyA to associate herself with
a charitable cause, such as tackling issues of malnutrition in developing countries.
Trafficking (156)
Trafficking refers to the trade in something illegal, e.g. international trafficking of children very often
involves ‘stealing’ or selling of children from poor developing countries to other countries. As part of
strategic Option 3 proposed by K&J, LadyA could associate herself with a charitable cause such as tackling
the problem of international trafficking of children.
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Paul Hoang & Urvashi Sharma