UTOPIA Unit 1 Business Organisations & Environment

Define “organizational aims” [2]Describe the usefulness of an “aim” to Utopia [2]

Define ‘Vision’ [2] Define ‘entrepreneur’ [2]

Define ‘intrapreneur’ [2]Using Utopia as an example, distinguish between an entrepreneur and intrapreneur [2]

entrepreneurial Describe a ‘business plan’ [2]

Describe any two elements of a business plan [2] Define ‘shares’ [2] Legal ownership Define ‘Private Ltd company’ [2]

Discuss the benefits of John operating Utopia as a private ltd company [6] Define ‘Sole-trade’ [2]

List two features of a sole trade [2]Explain the advantages and disadvantages of John running JAC as a sole trade [6]

Define ‘a charity’ [2] Define ‘Multinational corporations’ [2]

Explain the reasons for the existence of multinational corporations [6]Discuss the benefits and costs of multinationals to the host country [6]

Define ‘stakeholders’ [2]

Define and give an example of an external stakeholder of Utopia or JAC [2]Define and give reasons why stakeholder conflicts may occur [2]Identify possible stakeholder conflict of Utopia expanding [2]

Define ‘external environment’Identify any two changes in the Utopia’s external environment and how they have affected Utopia [2]Describe three external factors that may face JAC’s proposed distribution channels. [6]

Define ‘diseconomies of scale.’ [2]Identify one possible diseconomies of scale that may result from Utopia’s expansion.

Define ‘CSR’ [2]Define ‘Ethical organisation’ [2]Define ‘ethical objectives’In what ways can Utopia and JAC be said to be ethical? [6]Analyse the importance of Utopia setting ethical objectives [6]

Define ‘social responsibilities’ [2] Describe ‘Ethical production’ [2] Define ‘Fair trade’ [2] Use Ansoff’s matrix to describe the growth from Utopia to JAC [2]

Use Ansoff’s matrix to analyse the 2 growth options suggested by Paul and Liza [6] Market development Product development Define ‘growth’ [2]

Distinguish between ‘internal’ and ‘external’ growth [2]

Define ‘Strategic alliance’ [2]

Evaluate the use of strategic alliances as a distribution channel for JAC [6]Conduct a SWOT of strategic alliances as a distribution channel for JAC [6]

Define ‘Joint-ventures’ [2]Evaluate the use of joint-ventures’ as a distribution channel for JAC [6]Conduct a SWOT of Joint-ventures’ as a distribution channel for JAC [6]

Define ‘franchising’ [2]Evaluate the use of franchising as a distribution channel for JAC [6]Conduct a SWOT of franchising as a distribution channel for JAC [6]

As a result of the above evaluations, suggest the best channel of distribution for JAC [2]

Using information contained in the Case Study, recommend to John which option he should take.[12]

Gantt charts [HL]Prepare a Gantt chart from a given data.

Unit 2: HRM

Describe ‘HRM’ as a business function [2] Describe ‘Paternalistic leadership’ style [2]

Discuss the appropriateness of John’s paternalistic leadership style for running organisations such as Utopia and JAC. [6]

Describe ‘visionary’ leader [2] Define ‘delegation’ [2]

Explain the advantages and disadvantages of delegation in a business such as JAC [6] Define ‘Organisational structure’ [2]

Describe the possible changes to the organizational structure of Utopia if John adopts either of the two options. [4]

Define ‘organisational chart’ [2]Construct the organizational chart of John’s business interests [4]

Unit 3: Accounting & Finance

Describe Finance $ Accounting as a business function. [2] Define ‘Cash flow’ [2]

Explain two reasons why Utopia is experiencing cash flow problems [4] Define ‘Revenue’ [2] Define ‘revenue streams’ [2] Define ‘Financial loss’ [2] Define ‘sources of finance’ [2]

Distinguish between internal and external sources of finance [2]Recommend appropriate internal sources of finance for rebuilding Utopia [6]

Define ‘investors’Give examples of external investors that might invest in Utopia. [2]

Define ‘Viability’ [2] Define ‘Investment appraisal’ [2] Define ‘Profit margin’

How can the profit margins of the souvenir be increased? [4] Define ‘fixed costs’ [2]

Give examples of fixed costs for Utopia. [2] Define ‘capital expenditure’ [2]

Budgeting [HL]Explain why there may be budget variance [4]

Unit 4 Marketing

Describe the ‘marketing function’ [2] Define ‘Target market’ [2] Define and assess ‘niche market’ [4] Define and assess the importance of USP [4]

Describe the USP of Utopia [4] Define ‘position map’ [2]

Construct the position map of Utopia based on quality and price. [2]Define ‘market repositioning’ [2]Construct the position map of Utopia after the storm [2]

Define ‘premium pricing’ [2] Distinguish between ATL and BTL. [4] State the promotional tactics used at JAC. [4]

Define ‘word of mouth’ as a promotional tactics [2] internet marketing Know everything about ‘branding’ including the importance of branding. Explain how the souvenir is inconsistent with the Utopia marketing mix. [4] Define ‘Place’ [2] Describe the different levels of ‘distribution channels’ Using examples from Utopia and JAC, describe ‘Physical evidence’ as a marketing strategy [4][HL] Define ‘product’ [2]

Distinguish between ‘product oriented and market oriented [4]

Analyse the importance of being product-orientated for a firm like JAC and/or Utopia [6 marks]

Describe the marketing mix of Utopia [4] Define ‘market research’ [2] Describe ‘Stratified sampling’ [2]

Explain the importance of market research to Utopia [6]Evaluate the usefulness of market research to utopia [6]

Unit 5: Operations

Describe ‘operations management’ function Define ‘Job production’/customization.

Explain the advantages and limitations for job production for Utopia [6] Define ‘Quality’. [2] Define ‘Green production’ [2]

Explain the advantages and disadvantages of green production for Utopia [6] Define ‘Just In Time’ as a lean production method [HL][2]

Describe the impact of lean production on Utopia [HL][6]Analyse the importance of Just-In-Time stock control for Utopia (line 14) [6]Define ‘intenational marketing’ [2]Analyse the benefits and limitation of international marketing for JAC [6]

Define ‘crisis management’ [HL] [2]

Define ‘Contingency planning’ [HL] [2]

Distinguish between crisis management and contingency planning [HL][2]

Evaluate the usefulness of contingency planning for Utopia’s situation[HL] [10]

Terms in the Case Study “Utopia” IB Business Management DP May 2017

Unit 1 – Organisation & the Environment

Private limited company (line 1) - A small to medium sizes business that is owned by its shareholders who are often members of the same family; owners have limited liability, and may not publicly trade their shares.

Entrepreneur (Line 1) – Someone who takes on the financial risk of starting and managing a new venture.

Share (line 1) – a certificate confirming part ownership of a company and entitling the shareholder to dividends and certain shareholder rights.

Business plan (line 10) - A written document that describes a business, its objectives and its strategies, the market it is in and its financial forecasts.

Stakeholders (line 12) – people or groups of people who can be affected by, and therefore have an interest in, any action by an organisation.

External Stakeholders (line 12) – people or groups of people who are not a part of the organisation however can be affected by, and therefore have an interest in, any action by an organisation.

Sole trader (line 23) – A business in which one person provides the permanent finance and, in return, has full control of the business and is able to keep all the profits.

Charities (line 35) – organisations set up to raise money to help people in need or to support causes that require funding.

Social Enterprise (inferred line 35) – A business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximising profits

Retailers (line 36) – A business or person that sells goods to the consumer in small quantities

Multinational company (line 37) – business organisation that has its headquarters in one country, but with operating branches, factories and assembly plants in other countries.

Internal growth (line 51) – Expansion of a business by means of opening new branches, shops or factories (also known as organic growth)

Vision (line 53) - An aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future. It is intended to serves as a clear guide for choosing current and future courses of action

Strategic alliance (line 74) – agreements between firms in which each agrees to commit resources to achieve an agreed set of objectives.

Joint venture (line 74) – two or more businesses agree to work closely together on a particular project and create a separate business division to do so.

Franchising (line 75) – a business that uses the name, logo and trading systems of an existing successful business.

Ethics – moral guidelines that determine decision making

Unit 2 – Human Resource Management

Leadership (line 21) – the art of motivating a group of people towards achieving a common objective

Paternalistic Leadership (line 21) – a type of fatherly style of leadership typically used by dominant males where their power is used to control and protect subordinate employees who are expected to be loyal and obedient.

Delegation (inferred line 31) – passing authority down the organisational hierarchy

Human resources (line 40) – the strategic approach to the effective management of an organisations’ workers so that they may help the business achieve its objectives and gain a competitive advantage.

Manager (line 40) – responsible for setting objectives, organising resources and motivating staff so that the organisations aims are met.

Organisational Structure (line 78) – the internal, formal framework of a business that shows the way in which management is organised and linked together and how authority is passed through the organisation.

Organisational Charts (line 80)- A graphic representation of how authority and responsibility is distributed within a company or other organization. 

Unit 3 – Finance & Accounting

Internal finance (inferred line 51) – raised from the business’s own assets or from profits left in the business (retained profits).

Revenue Streams (line 55) – the income that an organisation gets from a particular activity, each different activity therefore potentially providing a new revenue stream.

Gross profit (line 61) – equal to sales revenue less cost of sales

Gross profit margin (line 61) – ratio used to assess how successful the management of a business is in converting its sales revenue into gross profit

Fixed costs (line 62) – costs that do not vary with output in the short run

Capital expenditure ( line 64) - An amount spent to acquire or upgrade productive assets (such as buildings, machinery and equipment, vehicles) in order to increase the capacity or efficiency of a company for more than one accounting period.

Profit (line 70) - The positive gain from an investment or business operation after subtracting for all expenses.

Unit 4 – Marketing

Consumer service – intangible provision of an activity to end users (consumers)

Promotion (line 6) – the use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship and public relations to inform consumers and persuade them to buy.

Word of mouth promotion (line 6) – An unpaid form of promotion in which satisfied customers tell other people how much they like a business, product or service.

Viral marketing (line 7) – the use of social media sites or text messages to increase brand awareness or sell products.

Marketing mix (inferred line 20) – the key decisions that be taken in the effective marketing of a product.

Brand (line 21) – an identifying symbol, name, image or trademark that distinguishes a product or service from its competitors.

Product orientation (line 23) – an inward looking approach that focuses on making products that can be made – or have been made for a long time – and then trying to sell them.

Marketing (line 37) – the management task that links the business to the customer by identifying and meeting the needs of customers profitably – it does this by getting the right product at the right price to the right person at the right time.

Brand loyalty (line 43) – the faithfulness of consumers to a particular brand as shown by their repeat purchases irrespective of the marketing pressure from competing brands.

Market (line 45) – An actual or nominal place where forces of demand and supply operate, and where buyers and sellers interact (directly or through intermediaries) to trade goods, services, or contracts or instruments, for money or barter.

Social Responsibility (line 58) – The obligation of an organization's management towards the welfare and interests of the society in which it operates.

Market research (line 68) – process of collecting, recording and analysing data about customers, competitors, and the market.

Stratified sampling (line 68) – this draws a sample from a specified sub-group or segment of the population and uses random sampling to select an appropriate number from each stratum

Distribution channels (line 73) – the chain of intermediaries a product passes through from producer to final consumer.

Unit 5 – Operations Management

Just-in-time (JIT) (line 14) – this stock-control method aims to avoid holding stocks by requiring supplies to arrive just as they are needed in production and completed products are produced to order.

Operations (line 37) – the management task concerned with the use of resources called inputs (land, labour and capital) to provide outputs (good/services).

Crisis Management (line 50) – steps taken by an organisation to limit the damage from a significant, damaging event by handling, containing, and resolving it.

Contingency Planning (line 50) – preparing the immediate steps to be taken by an organisation in the event of a crisis or emergency.

Glossary Of Case Study- Utopia

1. Entrepreneur ( Line 1)- a person who sets up a business or businesses, taking on financial risks in the hope of profit.

2. Private Limited Company ( line 1)- is a type of privately held small business entity. This type of business entity limits owner liability to their shares, limits the number of shareholders to 50, and restricts shareholders from publicly trading shares.

3. Word of Mouth Promotion( line 6) - An unpaid form of promotion in which satisfied customers tell other people how much they like a business, product or service .

4. Business Plan( line 10)- is a written document that provides directions so a business can plan its future from a marketing, financial and operational viewpoint.

5. External Stakeholders( line 12)- External stakeholders are those people who do not directly work with a company but are affected in some way by the actions and outcomes of said business.

6. Just In Time (JIT) ( line 14)- is a technique for the organisation of work-flows, to allow rapid, high quality, flexible production whilst minimising manufacturing waste and stock levels.

7. Location ( line 19)- Named geographical place (such as an airport, seaport, container freight station or terminal) that provides permanent facilities for movement of goods (such as customs, storage, and other support services) or is designated for a stated purpose.

8. Brand ( line 20) - a type of product manufactured by a particular company under a particular name.

9. Paternalistic Leadership( line 21)- A managerial approach where there is a dominant figure that decides what is best for employees.

10. Commodity Market ( line 19)- A commodity market is a market that trades in primary economic sector rather than manufactured products. Eg.wheat, coffee, cocoa and sugar, gold and oil.

11. Sole Trader ( line 23)- is a type of business entity which is owned and run by one individual and where there is no legal distinction between the owner and the business.

12. Product Oriented ( line 24)- Production orientation is a marketing strategy in which the company focuses on products rather than customers' wants or desires.

13. Business ( line 33)- is an organization or enterprising entity engaged in commercial, industrial or professional activities

14. Multinational ( line 36)- A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country.

15. Retailers ( line 36)- A business or person that sells goods to the consumer in small quantities

16. Charities ( line 35)- is a type of non-profit organization (NPO). It differs from other types of NPOs in that it centers on philanthropic goals as well as social well-being (e.g. charitable, educational, religious, or other activities serving the public interest or common good).

17. Marketing ( line 37)- is the management process of promoting and selling products or services, including market research and advertising.

18. Operations ( line 37)- refers to the administration of business practices to create the highest level of efficiency possible within an organization.

19. Product Development ( line 38)- Product development may involve modification of an existing product or its presentation, or formulation of an entirely new product that satisfies a newly defined customer want or market niche.

20. Human Resource( line 40)- The division of a company that is focused on activities relating to employees. These activities normally include recruiting and hiring of new employees, orientation and training of current employees, employee benefits, and retention.

21. Brand loyalty ( line 43)- The extent of the faithfulness of consumers to a particular brand, expressed through their repeat purchases, irrespective of the marketing pressure generated by the competing brands.

22. Market ( line 45)- An actual or nominal place where forces of demand and supply operate, and where buyers and sellers interact (directly or through intermediaries) to trade goods, services, or contracts or instruments, for money or barter.

23. Customers ( line 47)- A party that receives or consumes products (goods or services) and has the ability to choose between different products and suppliers.

24. Internal Growth ( line 51)- the development of company by growing its existing business with its own finances, as opposed to acquiring other businesses.

25. Contingency Planning ( line 50)- A contingency plan is a course of action designed to help an organization respond effectively to a significant future event or situation that may or may not happen. A contingency plan is sometimes referred to as "Plan B," because it can be also used as an alternative for action if expected results fail to materialize.

26. Crisis Management ( line 50)- actions taken by an organisation to protect itself when unexpected events or situations occur that could threaten its success or continued operation

27. Vision ( line 53)- An aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future. It is intended to serves as a clear guide for choosing current and future courses of action.

28. Revenue ( line 55)- The income generated from sale of goods or services, or any other use of capital or assets, associated with the main operations of an organization before any costs or expenses are deducted.

29. Social Responsibility ( line 58)- The obligation of an organization's management towards the welfare and interests of the society in which it operates.

30. Gross Profit Margins ( line 60)- A measure of a company's profitability that is expressed as a percentage of gross profit. It is calculated by dividing gross profit by revenue.

31. Fixed Cost ( line 62)- A periodic cost that remains more or less unchanged irrespective of the output level or sales revenue, such as depreciation, insurance, interest, rent, salaries, and wages.

32. Capital Expenditure ( line 64)- An amount spent to acquire or upgrade productive assets (such as buildings, machinery and equipment, vehicles) in order to increase the capacity or efficiency of a company for more than one accounting period.

33. Market Research ( line 69)- Component of marketing research whereby a specific market is identified and its size and other characteristics are measured.

34. Stratified Sampling ( line 69)- The process of dividing a population into smaller subsets for sampling purposes. By splitting up the population in this manner, each section has an increased likelihood of been selecting for the sample thus making the results more conclusive.

35. Profit ( line 70)- The positive gain from an investment or business operation after subtracting for all expenses.

36. Distribution Channels ( line 73)- A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors and even the internet itself.

37. Strategic Alliance ( line 73)- An agreement between two or more individuals or entities stating that the involved parties will act in a certain way in order to achieve a common goal.

38. Joint Venture ( line 73)- A contractual agreement joining together two or more parties for the purpose of executing a particular business undertaking.

39. Franchising ( line 73)- A form of business organization in which a firm which already has a successful product or service (the franchisor) enters into a continuing contractual relationship with other businesses (franchisees) operating under the franchisor's trade name and usually with the franchisor's guidance, in exchange for a fee.

40. Organisational Structure ( line 78)- Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management.

41. Organisational Charts ( line 80)- A graphic representation of how authority and responsibility is distributed within a company or other organization. also called org chart.