© International Baccalaureate Organization 2021 All rights reserved. No part of
© International Baccalaureate Organization 2021 All rights reserved. No part of this product may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval systems, without the prior written permission from the IB. Additionally, the license tied with this product prohibits use of any selected files or extracts from this product. Use by third parties, including but not limited to publishers, private teachers, tutoring or study services, preparatory schools, vendors operating curriculum mapping services or teacher resource digital platforms and app developers, whether fee-covered or not, is prohibited and is a criminal offense. More information on how to request written permission in the form of a license can be obtained from https://ibo.org/become-an-ib-school/ib-publishing/licensing/applying-for-a- license/. © Organisation du Baccalauréat International 2021 Tous droits réservés. Aucune partie de ce produit ne peut être reproduite sous quelque forme ni par quelque moyen que ce soit, électronique ou mécanique, y compris des systèmes de stockage et de récupération d’informations, sans l’autorisation écrite préalable de l’IB. De plus, la licence associée à ce produit interdit toute utilisation de tout fichier ou extrait sélectionné dans ce produit. L’utilisation par des tiers, y compris, sans toutefois s’y limiter, des éditeurs, des professeurs particuliers, des services de tutorat ou d’aide aux études, des établissements de préparation à l’enseignement supérieur, des fournisseurs de services de planification des programmes d’études, des gestionnaires de plateformes pédagogiques en ligne, et des développeurs d’applications, moyennant paiement ou non, est interdite et constitue une infraction pénale. Pour plus d’informations sur la procédure à suivre pour obtenir une autorisation écrite sous la forme d’une licence, rendez-vous à l’adresse https://ibo.org/become-an-ib-school/ ib-publishing/licensing/applying-for-a-license/. © Organización del Bachillerato Internacional, 2021 Todos los derechos reservados. No se podrá reproducir ninguna parte de este producto de ninguna forma ni por ningún medio electrónico o mecánico, incluidos los sistemas de almacenamiento y recuperación de información, sin la previa autorización por escrito del IB. Además, la licencia vinculada a este producto prohíbe el uso de todo archivo o fragmento seleccionado de este producto. El uso por parte de terceros —lo que incluye, a título enunciativo, editoriales, profesores particulares, servicios de apoyo académico o ayuda para el estudio, colegios preparatorios, desarrolladores de aplicaciones y entidades que presten servicios de planificación curricular u ofrezcan recursos para docentes mediante plataformas digitales—, ya sea incluido en tasas o no, está prohibido y constituye un delito. En este enlace encontrará más información sobre cómo solicitar una autorización por escrito en forma de licencia: https://ibo.org/become-an-ib-school/ib-publishing/licensing/ applying-for-a-license/. © International Baccalaureate Organization 2021 2221 – 5012 6 pages Monday 3 May 2021 (morning) 1 hour 45 minutes Business management Higher level Paper 2 Instructions to candidates y Do not open this examination paper until instructed to do so. y A clean copy of the business management formulae sheet is required for this examination paper. y Section A: answer one question. y Section B: answer two questions. y A calculator is required for this examination paper. y The maximum mark for this examination paper is [50 marks]. – 2 – 2221 – 5012 Section A Answer one question from this section. 1. The Pie Store (TPS) The Pie Store (TPS) bakes pies and sells them in its three retail stores. When developing its brand, TPS used the mathematical symbol pi (π). In 2020, each store made a profit. Table 1: Financial information for TPS’ three retail stores for 2020 (all figures in $) Store 1 Store 2 Store 3 Sales 180 000 223 000 170 000 Cost of goods sold 90 000 120 000 85 000 Gross profit 90 000 103 000 85 000 Expenses 66 000 76 000 67 000 Net profit before interest and tax X Y Z At the end of 2020, the balance sheet for TPS (the three stores combined) showed $200 000 in assets and $120 000 in liabilities. $50 000 of the liabilities was long-term debt. (a) Describe one step in the development of a brand. [2] (b) Calculate: (i) which store made the highest net profit before interest and tax (no working required); [1] (ii) which store had the highest profitability (show all your working). [2] (c) Calculate: (i) TPS’ equity; [1] (ii) TPS’ return on capital employed (ROCE) (show all your working). [2] (d) Explain one effect that the $50 000 long-term debt may have on TPS’ profit and loss account. [2] – 3 – 2221 – 5012 Turn over 2. Sharon’s Super Lunches (SSL) Sharon’s Super Lunches (SSL) is a cooperative that provides healthy school lunches. The lunches are delivered daily to students, who order them online. SSL aims for a minimum order size of 50 lunches to deliver to a school. Table 2: Sales and other financial information for SSL for one week Forecasted sales of lunches 3200 Maximum sales of lunches 4000 Price of lunches $10.20 Variable costs per lunch $6.40 Fixed costs for SSL $7980 SSL is considering a new promotional strategy for healthy school lunches: they will donate a free school lunch to a student in a lower-income area for each lunch purchased in a higher‑income area. (a) Describe one feature of a cooperative. [2] (b) Using total contribution, calculate the forecasted total profit for SSL before the introduction of the new promotional strategy (show all your working). [2] (c) Construct a fully labelled break-even chart for SSL for before the new promotional strategy is introduced (show all your working). [4] (d) Explain one advantage to SSL from implementing the new promotional strategy. [2] – 4 – 2221 – 5012 Section B Answer two questions from this section. 3. Soft Skin Cosmetics (SSC) Soft Skin Cosmetics (SSC) is a private limited company that produces a small range of face creams and soaps. Its products are designed and produced in the United States, and are made from safe, natural ingredients. SSC has a product-orientated marketing approach. Tiffany Presley, one of the company’s co‑founders, believes that SSC’s consumers value health above fashion. “The skincare market is full of toxic products, but ours are healthy even if they don’t smell or look as nice,” she says. Chelsea Presley, SSC’s other co-founder, wants to develop the first sunscreen free of synthetic chemicals. However, product innovation is costly and risky. If the new sunscreen is a failure, several years of research and development costs will be wasted, which SSC cannot afford. SSC currently lacks the scale to innovate. SSC does not pay for advertising. It relies on social media and word-of-mouth promotion. Its brand awareness is very high among young women, and customer reviews are very positive about SSC’s quality and effectiveness. The company only sells online, not in retail outlets. To reach unsatisfied demand domestically and internationally, SSC would have to broaden its current distribution channels. SSC practises corporate social responsibility (CSR). It does not test its products on animals, and supports several charities protecting endangered species. Pressure groups publicly recognize SSC’s commitment to animal welfare. Currently, multinational companies dominate the global skincare market. Small emerging companies rarely survive. Chelsea wants to convert SSC to a public limited company, but Tiffany disagrees: she argues that shareholder pressure toward profit maximization could jeopardize consumer and animal safety. (a) State two features of product innovation. [2] (b) Explain one advantage and one disadvantage for SSC of having a product-orientated marketing approach. [4] (c) Explain one advantage and one disadvantage to SSC of practising corporate social responsibility (CSR). [4] (d) Discuss Chelsea’s idea to convert SSC into a public limited company. [10] – 5 – 2221 – 5012 Turn over 4. ReVolve Ltd (RV) ReVolve Ltd (RV ) manufactures and sells high-quality, high-priced bicycles to high-income earners. Operating in a niche market, its advertising slogan and unique selling point/proposition (USP) is “hand made to order, in the USA, delivered within seven days”. Brand loyalty is strong, but brand recognition outside of its customer base is weak. 98 % of its sales are to customers living within 50 miles of the business. Prior to 2017, RV received an increasing number of customer complaints that phone lines were often engaged and calls not returned. As such, it adopted e-commerce. Its website now allows customers to: y customize their choice of bicycle y place orders y pay for purchases y have their questions answered. RV employs 20 highly paid, skilled employees using job production. To retain these workers, RV has raised their wages significantly since 2016. Increasing competition from imports of hand-made high-quality bikes has forced down prices in this niche market. RV has been making increasingly larger losses since 2017. In 2020, its sales fell by 15 %. Inflation is forecasted at between 2 % and 3 % for the next three years. As such, RV ’s directors are considering two options to enable it to lower the prices of its bicycles. Option 1: Offshore production to China, where production costs are significantly lower. The bicycles would be manufactured using batch production. RV would focus only on the design and marketing of its bicycles. Option 2: Invest in new job uploads/Marketing/business-management-paper-2-hl-4.pdf
Documents similaires
-
90
-
0
-
0
Licence et utilisation
Gratuit pour un usage personnel Attribution requise- Détails
- Publié le Jul 27, 2022
- Catégorie Marketing
- Langue French
- Taille du fichier 0.9396MB