GROUP 3 Individuals and Societies

Transcription

1 GROUP 3 Individuals and Societies BUSINESS AND MANAGEMENT Business and Management course is aimed at developing the understanding of business as a theory and developing the skills of applying the business principles in life. The work of different kind of business is studied in different economical and cultural contexts. A special attention is paid to studying such aspects of business as marketing, production, personnel management and financing. At Higher level students also study some issues connected with strategic management. The aims of the Business and Management course at HL and SL are to: promote the importance of exploring business issues from different cultural perspectives encourage a holistic view of the world of business enable the student to develop the capacity to think critically about individual and organizational behaviour enhance the student s ability to make informed business decisions enable the student to appreciate the nature and significance of change in a local, regional and global context promote awareness of social, cultural and ethical factors in the actions of organizations and individuals in those organizations appreciate the social and ethical responsibilities associated with businesses operating in international markets. The Assessment objectives of the Business and Management course at HL or SL: Having followed the Business and Management course at HL or SL, students will be expected to: 1. Demonstrate knowledge and understanding of business terminology, concepts, principles and theories. 2. Make business decisions by identifying the issue(s), selecting and interpreting data, applying appropriate tools and techniques, and recommending suitable solutions. 3. Analyse and evaluate business decisions using a variety of sources 4. Evaluate business strategies and/or practices showing evidence of critical thinking 5. Apply skills and knowledge learned in the subject to hypothetical and real business situations 6. Communicate business ideas and information effectively and accurately using appropriate formats 7. Synthesize knowledge in order to develop a framework for business decision-ma and tools.king.

2 Business and Management Syllabus DP YEAR 2 1 st quarter (September October) Duration: 8 weeks Topic 1: Business organization and environment Introduction to the course Nature of business activity What is a business? Business functions Production/operations Marketing Finance Human resources/personnel Primary, secondary and tertiary sectors Types of organization Private sector and public sector Starting a business Reasons for setting up a business Identifying a market opportunity Possible problems faced by start-ups Profit-based organizations Sole traders Partnerships Companies/ corporations Non-profit and non-governmental organizations (NGOs), including charities and pressure groups Public private enterprise Organizational objectives The importance of objectives Statements Mission statements Vision statements Aims and objectives Aims Strategic objectives Tactical/operational objectives Organizational objectives Ethical objectives Corporate social responsibility Differing views of social responsibility Policies to implement objectives of social responsibility (such as environmental auditing) Changes in corporate social responsibility over time Changes in society s expectations of the behaviour of firms

3 Stakeholders Internal stakeholders Employees Shareholders Managers External stakeholders Suppliers Customers Special interest groups Competitors Stakeholder conflict External environment PEST (political, economic, sociological, technological) analysis (STEEPLE, PESTLE and other variations) Opportunities and threats Social/cultural Technological Economic Environmental Political Legal Ethical Organizational planning tools SWOT analysis Business plans Organizational planning tools Decision-making framework Decision-making Fishbone Scientific versus intuitive decision-making processes Decision trees Internal/external constraints on decision-making Quarter #2 (November December) Duration: 8 weeks Topic 1: Business organization and environment Growth and evolution Economies and diseconomies of scale Small versus large organizations Internal/organic growth External growth Joint ventures Strategic alliances Mergers and takeovers Growth and evolution Franchises Porter s generic strategies

4 Ansoff matrix Change and the management of change Causes of change Resistance to change Modelling change Lewin s force field analysis Strategies to reduce the impact of change and resistance to change Globalization Multinational companies Regional trading blocs Topic 2: Human resources Human resource planning Supply of human resources Workforce planning Recruitment Appraisal Training Dismissal and redundancies/ retrenchment/lay-off Changing employment Patterns and practices Organizational structure The formal organization Delegation and span of control Levels of hierarchy Flat and tall organizations Chain of command Delegation and accountability Bureaucracy Centralization and decentralization Departmentalization Organizational structure Matrix structure/project teams Flexible structures The informal organization Outsourcing, offshoring and migration of human resource functions Communication Communication classification Oral Written Visual Non-verbal Formal and informal communication Barriers to effective communication Information and communication technology (ICT) Communication networks

5 Quarter #3 (January March) Topic 2: Human resources Duration: 10 weeks Leadership and management Nature of leadership Leadership styles Autocratic Democratic Laissez-faire Situation leadership Trait and situation theory Contingency theory The difference between leadership and management Key functions of management Motivation Motivation in theory theories of Taylor, Maslow, McGregor and Herzberg theories of Mayo and McClelland Process theories Expectancy theory Equity theory Motivation in practice Financial motivation Non-financial motivation Organizational and corporate cultures Employer and employee relations Negotiations/collective bargaining Methods employed to achieve individual and group objectives Employees Employers Conflict Causes Resolution Crisis management and contingency planning Introduction to Internal Assessment Topic 3: Accounts and finance Sources of finance Internal and external finance Finance in the long, medium and short term Investment appraisal Payback period Average rate of return (ARR) Discounted cash flow (DCF) Net present value (NPV) Working capital

6 Working capital cycle Cash-flow forecasts Management of working capital Budgeting The purpose of budgets Variance analysis Quarter #4 (April May) Topic 3: Accounts and finance Duration: 6 weeks Final accounts Accounts for limited companies (income statements) Trading account Profit and loss account Appropriation account Balance sheets Final accounts Depreciation Straight line Reducing balance Intangible assets Goodwill Patents and copyrights Brands Stock valuation Last-in-first-out (LIFO) First-in-first-out (FIFO) Ratio analysis Profitability ratios Gross profit margin Net profit margin Liquidity ratios Current ratio Acid test ratio Ratio analysis Efficiency ratios Stock turnover Return on capital employed (ROCE) Debtor days Creditor days Shareholder ratios Earnings per share Dividend yield Gearing ratio Research Proposal Evaluation Revision and final test DP YEAR 2

7 1 st quarter (September October) Duration: 8 weeks Topic 4: Marketing The role of marketing The market Market size Market growth Market share Definition and nature of marketing Market and product orientation Marketing of goods/services Additional marketing orientations Social marketing Asset-led marketing Marketing in non-profit organizations A marketing plan Marketing planning Marketing mix Ethics of marketing Marketing audit Marketing objectives Porter s five forces Marketing planning Market research Role of market research Primary and secondary research Sampling Methods of sampling Limitations of sampling Sampling errors Sales forecasting and trends Seasonal, cyclical and random variation Marketing planning Market segmentation and consumer profile Targeting Positioning Corporate image Position/perception maps Unique selling point/proposition (USP) Development of marketing strategies and tactics Product Classification of products New product design and development Product life cycle Extension strategies Relationship with investment, profit and cash flow Product portfolio analysis Boston consulting group (BCG) matrix Product

8 Branding Brand awareness Brand development Brand loyalty Types of branding Family branding Product branding Company branding Own label branding Manufacturer s brand Price Pricing strategies Cost-based o Cost-plus o Marginal cost pricing o Contribution pricing o Absorption cost and full-cost pricing Competition-based o Price leadership o Predatory o Going rate Market-based o Penetration o Skimming o Price discrimination o Loss leader o Psychological o Promotional pricing Price Supply and demand Price determination Elasticity Quarter #2 (November December) Topic 4: Marketing Promotion Types of promotion Above the line Below the line Promotional mix Place (distribution) Channels of distribution Distribution strategy Supply chain management/logistics International marketing Entry into international markets E-commerce Duration: 8 weeks

9 Business-to-business (B2B) Business-to-customers (B2C) Revision and Test Research Projects Presentation Topic 5: Operations management Production methods Job, batch, line and flow, and mass production Cell production, teamwork and productivity implications Costs and revenues Types of costs Fixed Variable Semi-variable Direct Indirect/overheads Revenue Contribution to fixed costs Cost and profit centres Contribution analysis for multi-product firms Quarter #3 (January March) Topic 5: Operations management Duration: 11 weeks Break-even analysis Break-even quantity Profit or loss Margin of safety Changes in break-even Limitations of break-even analysis Target profit and revenue Quality assurance Quality control and quality assurance Total quality culture Continuous improvement Benchmarking National and international quality standards Location Location of production National International Impact of globalization on location Innovation Research and development (R&D) Patents, copyrights and trademarks (intellectual property rights) Factors affecting innovation Production planning

10 Stock control Just-in-case Just-in-time Traditional stock control (usage patterns, lead times, buffer stocks and re-order levels) Optimum stock levels Capacity utilization Outsourcing and subcontracting Make-or-buy decisions Project management Critical path analysis Revision and Test 6. Business Strategy and Revision Strategic analysis Strategic choice Strategic implementation MOK Quarter #4 (April) Topic 3: Accounts and finance Exam Case and Revision Exam Case and Revision Exam Case and Revision Duration: 3 weeks FINAL ASSESSMENT HIGHER LEVEL External Assessment Paper 1 Based on a case study issued in advance. Section A (HL/SL) Students answer two of three structured questions. Section B (HL/SL) Students answer one compulsory structured question including evaluative skills. Section A and section B are common to both HL and SL students. HL students also have a section C.

11 Section C Students answer one compulsory question focusing on strategic decision-making though the use of extension material. Paper 2 Section A Students answer one of two structured questions based on stimulus material with a quantitative element. Section B Students answer two of three structured questions based on stimulus material. Internal Assessment Research project Research proposal and action plan a working document not part of the actual report, but part of planning. Report that addresses an issue facing an organization or analyses a decision to be made by an organization. STANDARD LEVEL External Assessment Paper 1 Based on a case study issued in advance. Section A (HL/SL) Students answer two of three structured questions. Section B (HL/SL) Students answer one compulsory structured question including evaluative skills. Section A and section B are common to both HL and SL students. SL students do not have a section C. Paper 2 Section A Students answer one of two structured questions based on stimulus material with a quantitative element. Section B Students answer two of three structured questions based on stimulus material.

12 Internal Assessment Written commentary Written commentary based on three to five supporting documents about a real issue or problem facing a particular organization.