Congrats on being half done. I hope you felt prepared.
Some info on Paper 2
Paper 2 SL 105 minutes (Thursday) 40% of IB grade!!
Part 1 – one question required of two quantitative based Qs (20 marks)
Spend up to 10 minutes reading both Qs carefully – concentrate on higher mark
parts – Can you answer them well??
Pick one Q and spend approx 30 minutes answering
Part 2 – two questions required of three (40 marks)
Spend 12-15 minutes reading all 3 Qs -– concentrate on higher mark parts – Can
you answer them well??
Pick two Qs and spend approx 25 minutes per Q
If you did not see something on the exam today, you are more likely to see it
tomorrow. If you thought Paper 1 was easy, you may think Paper 2 is more
difficult because it will encompass the entire syllabus.
Study suggestions for tonight:

Do not look at the case study materials anymore!
 Review all major sections of the syllabus with the book. If it is not in the syllabus, don’t
worry about it. Read the Business Strategy section at the end of each unit.
 Go back over some/all of the PAPER 2 exams and markschemes that I gave you.
 Go through the Bare Necessities guide that you can access through the right-hand side
of my website. I don’t agree with everything in it (especially in the beginning and it
contains some HL topics), but it does provide a quick guided way to review topics.
Some topics you may see on exam:
Opportunity costs
Factors of production
Sectors of economy
Types of business organizations
Private/public sector
Startup problems for small businesses
Ethics/corporate responsibility
Vision/mission/aim/objectives
SMART objectives
Stakeholders/stakeholder conflict
PEST/SWOT
Business plan
Decision making process
Economies/diseconomies of scale
Small vs large organizations
Internal/external growth
Globalization
MNC
Regional trading blocs
Human resource management
Workforce planning
Recruitment and selection process
Appraisal
Training
Termination of employment
Changing employment patterns – ie: flextime
Organizational structure
Delegation
Chain of command
Span of control
Levels of hierarchy
Flat vs tall; wide vs narrow
Communication - ICT
Barriers to effective communication
Consequences of poor communication
Leadership styles
Motivation
Theorists – Taylor, Maslow, Herzberg, McGregor
Financial motivation
Non-financial motivation
Sources of finance – external/internal/long term, medium term, short term
Investment appraisal – payback and ARR
Working capital/working capital cycle
Current assets
Current liabilities
Cash vs profit
Cash flow – can you create a cash flow forecast??
Causes of cash flow problems
How can you improve cash inflow?
How can you reduce cash outflow?
Final accounts – Profit and Loss, Balance Sheet
Why are final accounts important? Who uses final accounts?
Can you create a profit and loss account?
Can you create a balance sheet?
Ratio analysis – formulas will be provided. Can you analyze the ratios results after you calculate?
Marketing
Market size/share/growth
Product vs market orientation
Social marketing
7 Ps of marketing mix – most important to know 4 associated with marketing goods
Elements of a marketing plan
Ethics in marketing
Marketing audit
Market research – primary vs secondary
Qualitative vs quantitative research
Market targeting and segmentation
Can you create/read a position map?
Product line/mix/rang
Research and development – why important? Why first to be cut in financial hard times?
Product life cycle – relationship to cash flow. Can you draw a product life cycle/cash flow diagram?
Extension strategies
Product differentiation – USP, branding
Brand names/logo – brand development, brand loyalty
Boston Matrix – can you apply it?
Pricing – cost based, market based, competition based
Promotion – above and below the line
Can you create a promotional mix for a given product/service?
Place (distribution) – channels of distribution
Issues/concerns with international marketing
E-commerce
Production methods – batch, line, flow, mass
Labor vs capital intensity
Fixed vs variable costs; indirect vs direct; semi-variable
Revenue/Expenses
How do you calculate profit?
Contribution/break even/margin of safety
Can you produce a break even chart? I would bet money it will be on the exam
Good Luck!